LianGuai Daily | Li Xiaolai responds to the Mixin incident; Hong Kong Securities and Futures Commission releases multiple lists of virtual asset trading platforms.

LianGuai Daily Li Xiaolai responds to Mixin incident; Hong Kong Securities and Futures Commission releases lists of virtual asset trading platforms.

Today’s news highlights:

1. The US SEC postpones a decision on Bitcoin spot ETFs from BlackRock and others

2. Valkyrie’s application to convert its Bitcoin futures ETF to a Bitcoin and Ethereum futures ETF is approved by the SEC

3. The Hong Kong Securities and Futures Commission publishes a list of multiple virtual asset trading platforms

• Interview with Former President of Polygon Labs Games will be a key factor in driving the mainstream adoption of cryptocurrencies
• Interpreting Namada A Modular Privacy Solution Serving the Multi-Chain Ecosystem
• RWA Potential Exploration The Next Large-Scale Application Track after Stablecoins?

4. Bloomberg: Fireblocks acquires blockchain startup BlockFold

5. Li Xiaolai responds to the Mixin incident: there is no 100% secure cold wallet, the discrepancy in the ability to recover BTC and ETH is caused by hackers

6. Mercury Fund’s fifth fund raises $160 million

7. Web3 startup IYK completes $16.8 million seed funding round, led by a16z Crypto

8. Binance BTCUSDT perpetual contract experiences multiple flash crashes, CZ says it is a display issue and trading is not affected, the issue has been fixed

Regulatory News

The US SEC postpones a decision on Bitcoin spot ETFs from BlackRock and others

The US Securities and Exchange Commission (SEC) stated on Thursday that it is initiating additional procedures to determine whether the Bitcoin spot ETF applications submitted by BlackRock, Invesco, Valkyrie, and Bitwise should be approved. The SEC stated that it is appropriate to initiate the procedures due to the legal and policy issues raised by the proposed rule changes. Initiating the procedures does not imply that the SEC has reached any conclusions on the issues involved. In documents submitted to Valkyrie on Thursday, the SEC requested comments and also sought to understand whether the proposed monitoring sharing agreement with cryptocurrency exchange Coinbase would help “detect, investigate, and prevent fraud and manipulation.” Commenters have 21 days to submit written data, views, and arguments, followed by 35 days for rebuttal, which means the approval process will take at least several months. Meanwhile, the SEC has also initiated related procedures for Bitwise Bitcoin ETP Trust, Invesco Galaxy Bitcoin ETF, and BlackRock’s iShares Bitcoin Trust. According to previous reports, the SEC has postponed the decision date for the ARK 21Shares Bitcoin spot ETF to January next year.

Valkyrie’s application to convert its Bitcoin futures ETF to a Bitcoin and Ethereum futures ETF is approved by the SEC

The US SEC has approved Valkyrie’s conversion of its existing Bitcoin futures ETF to a Bitcoin and Ethereum futures ETF. The new fund will be renamed “Valkyrie Bitcoin and Ethereum Strategy ETF” and will take effect on October 3, with the code remaining as BTF. A spokesperson stated that Valkyrie Bitcoin Strategy ETF has already begun increasing exposure to Ethereum futures contracts, making it the first ETF in the US to offer exposure to both Ethereum and Bitcoin futures contracts. Valkyrie’s Ethereum futures ETF received approval first because it “supplemented the prospectus and updated risk disclosures related to Ethereum futures.”

The Securities and Futures Commission of Hong Kong has released multiple lists of virtual asset trading platforms. These lists include the “Licensed Virtual Asset Trading Platform List,” which lists the names of virtual asset trading platform operators (OSL and HashKey) that have been officially licensed by the SFC. The “Virtual Asset Trading Platform Applicants List” lists the names of virtual asset trading platform operator applicants whose license applications have not yet been approved by the SFC. The “Defunct Virtual Asset Trading Platform List” lists the names of virtual asset trading platform operators that are required to designate a closing date for operation according to relevant regulations. The “Licensed Virtual Asset Trading Platform List” will be listed on June 1, 2024, and includes the names of virtual asset trading platform operators that have been granted licenses. The main purpose of releasing these lists is to facilitate the public in determining the status of virtual asset trading platforms that have not yet applied for licenses and to prevent false statements.

Gemini will cease operations in the Netherlands in mid-November.

New York-based cryptocurrency exchange Gemini has decided to follow in the footsteps of cryptocurrency giant Binance and exit the Dutch market. In a letter to Dutch users on September 26, Gemini requested them to either withdraw their assets or transfer them to another wallet address. The platform will suspend operations in the Netherlands on November 17, “due to requirements from the Dutch government” and the Dutch Central Bank (DNB) regarding cryptocurrency exchanges. Gemini suggested users transfer their funds to Bitvavo, a local cryptocurrency exchange registered with the DNB. Bitvavo, based in Amsterdam, was established in 2018 and is a member of the Dutch Bitcoin Association.

NFT&AI

Project Updates

CommEx, the buyer of Binance’s Russian business: Core members include former Binance employees, but not affiliated with Binance.

CommEx has issued an open letter to the community, reaffirming that the company is not owned by Binance. Binance announced its exit from Russia by selling the company to CommEx. CommEx stated on its website, “Although we have not disclosed our ultimate beneficial owner (UBO), we want to make it clear that we are not part of Binance.” In the announcement, CommEx stated, “We are a dynamic and efficient startup team composed of passionate individuals from diverse backgrounds.” It added that some of its core members are former Binance veterans. CommEx also mentioned that the company has been developing its platform for six months and has hired some former Binance employees. “This has enabled us to learn from Binance’s product and operational experience and establish indirect connections with them,” CommEx added.

The trial of SBF may conclude before Thanksgiving in late November.

A recently released court schedule shows that the trial of SBF is set to begin on October 3, but actual opening arguments are expected to start a day later. While most of October and the first week of November will be devoted to the trial, there will be no proceedings between October 20 and October 25. November 3 will also be a day off, and October 9 and November 10 are public holidays. US Assistant Prosecutor Danielle Kudla said the Department of Justice estimates that the case will take four to five weeks. Mark Cohen, SBF’s lawyer, said that if the defense chooses to present the case, it could take a week and a half. The judge pointed out that the trial schedule may be extended as a result, but in any case, all parties seem to have believed that the trial will conclude before Thanksgiving at the end of November.

Ripple CEO: Will abandon direct acquisition of cryptocurrency trust company Fortress Trust

Ripple CEO Brad Garlinghouse tweeted that a few weeks ago, we signed a letter of intent to acquire cryptocurrency trust company Fortress Trust. However, we have since decided to abandon the direct acquisition, but will continue to support them as investors. According to previous reports, in September of this year, Ripple announced its intention to acquire Fortress Trust and provided funding for the acquisition through a combination of cash and equity.

Bloomberg: Fireblocks has acquired blockchain startup BlockFold

Bloomberg cited sources familiar with the matter as saying that cryptocurrency company Fireblocks Inc., supported by Sequoia Capital and Coatue Management, has acquired Melbourne-based blockchain startup BlockFold. An anonymous source said that Fireblocks paid about $10 million for the acquisition of BlockFold. The deal has not been publicly announced. Although Fireblocks has already partnered with major financial institutions such as BNY Mellon, BNP Paribas, and the Tel Aviv Stock Exchange, it primarily provides custody technology-related services to them. The acquisition of BlockFold will rapidly expand its service range.

It is reported that Fireblocks, headquartered in New York, has raised about $1.2 billion to date. The company has about 650 employees in the United States and Israel and was valued at $8 billion in its latest funding round in January 2022. BlockFold was established in 2021 and specializes in tokenization and smart contract development, with clients including major financial institutions. Fireblocks and BlockFold have already collaborated on several projects, including the recent cross-border stablecoin transfer by National Australia Bank.

According to official news, Sui has announced that zkLogin is now live on the mainnet. As previously reported, the Sui Foundation introduced the Web3 identity verification solution zkLogin, aiming to help developers provide users with the ability to authenticate using existing accounts from providers such as Google, Facebook, Twitch, and other third parties in their DApps, while providing privacy protection. zkLogin allows users to join the Sui ecosystem without installing a wallet or managing mnemonic phrases. zkLogin is now immediately available for use by all Sui developers, for the benefit of users of their applications.

Bloomberg analyst: SEC expected to make delayed decisions on Fidelity and other three Bitcoin ETFs tomorrow

Bloomberg ETF analyst James Seyffart tweeted that due to the impact of the US government shutdown, it is expected that the US SEC will make delayed decisions on three Bitcoin ETFs from Fidelity, VanEck, and WidsomTree tomorrow. The two houses of Congress have not yet reached an agreement on various funding bills to provide funding for government operations. According to previous reports, the SEC has made deferred decisions on Bitcoin ETFs from BlackRock, Invesco, Bitwise, and Valkyrie.

Optimism to launch the establishment of a security council

Optimism tweeted that it will initiate the process of establishing a security council, which will move it towards a more decentralized superchain network. Optimism stated that it will propose a governance proposal to add the Security Council as a signer of the multisig that controls the OP mainnet protocol upgrade. The complete Security Council will consist of at least 8 members, with a signing threshold of 75%, and will be implemented through a series of governance votes. In the initial stage, the Security Council will be a co-signer of the multisig. Subsequent governance proposals will be made to transfer the multisig specifically to the Security Council.

Li Xiaolai responds to Mixin incident: There is no 100% secure cold wallet, the disparity in the proportion of BTC and ETH that can be recovered is caused by hackers

Cryptocurrency user @CryptoAlex_BOX stated on X platform that Li Xiaolai responded to the Mixin incident in the community: Recently, various remaining issues of this incident are being dealt with centrally; cold wallets are not 100% secure, and he is thinking of various compromises and will use new strategies in the future; the biggest losses are in BTC and ETH, with a recovery proportion of 90% for one and only 30% for the other, a significant disparity caused by hackers. For the management of subsequent BOX-anchored assets, he will adopt a new plan.

According to previous reports, according to Tianyancha information, Li Xiaolai and Mixin founder Feng Xiaodong are both shareholders of Feigeman (Beijing) Technology Co., Ltd. Currently, Feng Xiaodong holds 94% of the shares, and Li Xiaolai holds 5% of the shares. The official website of Feigeman (Beijing) Technology Co., Ltd. is mixinbots.com.

Binance’s BTCUSDT perpetual contract experiences multiple flash crashes, CZ says it’s a display issue and trading is not affected

Binance’s BTCUSDT perpetual contract experienced multiple flash crashes, with the BTC price dropping from $27,000 to around $2,706 and quickly recovering to normal price levels. CZ stated that this was caused by some new code and that data restoration and repair are needed. It is expected to be fixed in 1-2 hours. This is just a display issue and trading is not affected.

CZ: Display issue of BTCUSDT perpetual contract has been fixed

CZ stated on X platform that the display issue of the BTCUSDT perpetual contract on the Binance platform has been fixed.

Funding News

Web3 startup IYK completes $16.8 million seed round financing, led by a16z Crypto

Web3 startup IYK has completed a $16.8 million seed round financing, led by a16z Crypto, with participation from 1kx, Collab Currency, Lattice Capital, gmoney, and others. IYK helps brands, musicians, and creators create digital physical experiences, reward customers and fans, and stay connected with their communities. Since its establishment in 2021, IYK has recruited over 100 creators from industries such as fashion, music, and art.

Mercury Fund’s fifth fund raises $160 million

Venture capital firm Mercury Fund has announced that its fifth fund, Mercury Fund V, has raised $160 million, making it the largest round of financing completed by the firm to date. Mercury Fund stated that the fund will continue its existing investment strategy and has already invested in startups such as Brassica Technologies, which provides transfer services for Web3 emerging innovation organizations. Mercury Fund was launched in January 2022 and its limited partners include institutional investors such as Galaxy Digital and Digital Currency Group, as well as individual investors such as a16z co-founder Marc Andreessen and a16z partner Chris Dixon.

Important Data

Data: A whale deposited 250,000 LDO into Binance and currently holds 3.44 million LDO

According to monitoring by The Data Nerd, 16 hours ago, a whale address starting with 0x4c3 deposited 250,000 LDO into Binance at a price of $1.53 (valued at approximately $382,000), and currently holds 3.44 million LDO (equivalent to approximately $5.62 million).

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