LianGuai Daily | Modular Blockchain Network Celestia Goes Live on Mainnet; SEC Chairman Congratulates Bitcoin Whitepaper on its 15th Anniversary

LianGuai Daily | Celestia, a Modular Blockchain Network, Launches on Mainnet; SEC Chairman Congratulates 15th Anniversary of Bitcoin Whitepaper

Today’s news highlights:

US Government Accountability Office: SEC’s crypto accounting announcement “overreaching,” needs congressional review

SEC Chairman: Congratulations on the 15th anniversary of the Bitcoin white paper, it ushered in the era of cryptocurrency

Modular blockchain network Celestia goes live on mainnet

• Where does the resilience of Bitcoin come from take a look at these fiat currencies
• XRP Jumps to New Heights: Whales are Riding the Wave!
• Bitcoin’s market share reaches a new high since April 2021, altcoins are rising with the wind, let’s take stock of the recent impressive altcoins.

Linen Wallet to shut down and cease operations on November 30th, remaining funds to be returned to investors

Paradigm: DeFi protocol Onyx suffers attack, loses approximately $2.1 million

Circle will no longer support consumer account-issued stablecoins

Tether Q3 reserve report: Cash and cash equivalents account for 85.7%, reaching a historical high

Data: 1 billion XRP unlocked from Ripple, worth approximately $600 million

Regulatory news

US Government Accountability Office: SEC’s crypto accounting announcement “overreaching,” needs congressional review

According to CoinDesk, the US Government Accountability Office (GAO) released an investigation result today, stating that the SEC failed to send its staff accounting announcement (SAB 121) to Congress, violating the Congressional Review Act. SEC Chairman LianGuaitrick McHenry and US Senator Cynthia Lummis jointly issued a statement stating that SAB 121 greatly harms the interests of consumers and clearly exceeds the power of the SEC. It needs to undergo congressional review. The SEC later stated in a statement that GAO’s opinion would not affect the status of SAB 121.

It is reported that SAB 121 requires financial institutions that hold customer crypto assets to include these assets on their balance sheets. The crypto industry and US Republican lawmakers believe that this undermines the willingness of regulated banks to act as cryptocurrency custodians, and that the announcement treats crypto assets differently from other assets.

SEC Chairman: Congratulations on the 15th anniversary of the Bitcoin white paper, it ushered in the era of cryptocurrency

The Chairman of the US SEC, Gary Gensler, tweeted his congratulations on the 15th anniversary of the release of the Bitcoin whitepaper, which marked the beginning of the era of cryptocurrencies. Any cryptocurrency company that deceives investors should start complying with securities laws.

Cryptocurrency Oyster Pearl founder ‘Bruno Block’ sentenced to four years imprisonment

According to the official website of the US Department of Justice (DOJ), Amir Bruno Elmaani, the founder of the blockchain protocol Oyster Pearl (PRL), also known as “Bruno Brock,” has been sentenced to four years in prison for tax crimes. Elmaani pleaded guilty in April 2023 and admitted to causing over $5.5 million in tax losses.

NFT&AI

China will send representatives to attend the AI Security Summit

According to CCTV News, Deputy Minister Wu Chaohui of the Ministry of Science and Technology will lead a delegation to attend the AI Security Summit held at Blenheim Palace in the UK from November 1st to 2nd, 2023. With the rapid development of artificial intelligence technology, opportunities and challenges coexist. President Xi Jinping announced at the opening ceremony of the third Belt and Road Initiative International Cooperation Forum that China will propose the “Global AI Governance Initiative.” The initiative provides a systematic explanation of China’s approach to AI development, security, and governance, and China will introduce the content and significance of the initiative to the participants during the AI Security Summit.

Project Updates

Modular blockchain network Celestia launches on mainnet

According to The Block, the mainnet test version of the modular blockchain network Celestia has been successfully deployed, introducing its modular network. The mainnet test version will enable Rollups and other modular chains to use Celestia for data availability and consensus. Celestia’s native token TIA will be listed on centralized and decentralized exchanges, including Binance, Bybit, KuCoin, and Osmosis.

SBF testifies: Spending FTX customers’ deposits is just part of “Alameda risk management”

SBF testifies again, trial may end in the next few days. Sam Bankman-Fried (SBF), the founder of FTX, claims that spending customers’ fiat deposits is just part of Alameda Research’s “risk management.” In SBF’s testimony today, Assistant US Attorney Danielle Sassoon asked SBF if he thought it was okay to spend $8 billion of FTX customers’ fiat currency. SBF stated, “I believe it is part of risk management. As the CEO of Alameda, I care about their investment portfolio. At FTX, I’ve been watching, but not to the extent that I should have.”

According to SBF, during his tenure as CEO of FTX and Alameda, no one was fired for allegedly misappropriating $8 billion worth of client funds for speculative trading. SBF says he is not familiar with certain employees. SBF also revealed a close relationship with the government of the Bahamas. Sassoon asked SBF if he gave the Prime Minister of the Bahamas and his wife sideline seats at the FTX stadium in Miami, to which SBF replied, “I’m not sure, I think they did attend a game. I don’t know the details.” It is said that SBF discussed the repayment of Bahamian debt with Prime Minister Philip Davis, and while SBF denied this, he admitted to helping Philip Davis’ son find a job.

Circle will no longer support consumer account stablecoin minting

According to The Block, stablecoin issuer Circle announced that “Circle is gradually ceasing support for traditional consumer accounts and has notified individual consumers of this decision. Account closures do not apply to business or institutional Circle Mint accounts.”

Circle sent an email on Tuesday announcing the termination of support for zero-balance consumer accounts on November 30th. This means that users who want to mint Circle stablecoins like USDC and EURC will need to turn to other platforms.

Tether continues to support individual consumer accounts, but the minimum threshold is $100,000.

Insiders say trading giants like Jane Street and Jump Trading may provide market-making services for BlackRock’s Bitcoin spot ETF

According to CoinDesk, insiders revealed that if regulators approve BlackRock’s Bitcoin spot ETF, some of the world’s largest market-making companies may provide liquidity for it. Internal documents seen by insiders show that trading giants Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading have had discussions with BlackRock about their market-making role.

MakerDAO transfers $250 million from Coinbase to maintain DAI’s peg

According to Blockworks, MakerDAO has transferred $250 million from Coinbase to the Peg Stabilization Module (PSM) of DAI to maintain the stablecoin’s peg to the dollar. Previously, DAI’s USDC reserves were close to falling below $60 million, while reserves of at least $200 million are needed to be considered safe. It is reported that PSM is a collateral pool that allows users to exchange USDC and DAI in a 1:1 ratio.

Frax Finance: Do not use frax.finance and frax.com domains until further notice

Frax Finance just tweeted, “Do not use http:// frax.finance and http:// frax.com domains until further notice.” The founder of Frax Finance previously stated, “Please do not use until we regain control of the domain.” Some analysts speculate that Frax Finance’s frontend may have been compromised, and the website’s DNS has been hijacked.

Linen Wallet will close on November 30th and end its operations, with remaining funds being returned to investors

Linen Wallet, a multi-signature wallet based on Safe, announced that it will close its application on November 30th due to reduced demand for advanced self-custodial solutions and regulatory uncertainty. The company will return the remaining funds to investors. The assets in Linen Wallet are safe, as Linen is only a user interface for managing Safe multi-ID wallets. Users can still manage their assets using other interfaces. The Linen infrastructure will be completely shut down after November 30th, and the application, email, and Intercom chat support channels will be disabled.

The ticker symbol for the Bitcoin spot ETF launched by Invesco and Galaxy has also been added to the DTCC website

According to Cointelegraph, the ticker symbol BTCO for the spot Bitcoin (BTC) exchange-traded fund (ETF) launched by Invesco and Galaxy has appeared on the website of the Depository Trust & Clearing Corporation (DTCC). It is worth noting that the addition of the code to the “ETF products” list on the DTCC website does not guarantee future approval of a particular product.

A spokesperson for DTCC stated that adding securities to the NSCC securities eligibility file is a standard practice “in preparation for bringing new ETFs to market.” Being on the list does not signify the outcome of any pending regulatory or other approval process.

Unibot: Vulnerability has been fully resolved, Unibot is completely safe and running normally

The Telegram Bot project Unibot has just announced on Telegram that yesterday’s vulnerability has been fully resolved and has reverted back to the old router. Unibot is completely safe and running normally. Just need a little more time to return these tokens + ETH to everyone. Currently in the final few rounds of running simulations – taking a few extra steps to ensure thorough and complete distribution. For reference, over 100 different tokens were affected by this vulnerability, which is why it took longer than expected to resolve. The varying scale and liquidity of the tokens means that refunds have more unique circumstances. As for the refunds, it will be a combination of tokens and ETH. Yesterday, Unibot was attacked, and Unibot stated that any funds lost due to our new router’s mistake will be compensated.

Frax Finance: frax.finance and frax.com domains have now been routed back to their correct domain servers and configurations

Frax Finance tweeted: “We have contacted Name.com and confirmed that the frax.finance and frax.com domains have been routed back to their correct (DNS) domain servers and configurations. We have been told that they will provide an explanation for the incident after conducting a thorough investigation tomorrow.” Later, Frax Finance co-founder Travis Moore announced that , as of now, frax.finance and frax.com can be safely used, but caution is advised. Once we know the cause of the incident, we will update the community.

Earlier today, Frax Finance’s website DNS was hijacked.

Cross-border CBDC project mBridge adds 25 new observer members, including IMF, ECB, World Bank, etc.

An update on the mBridge project published on the website of the Bank for International Settlements (BIS) shows that 23 central banks, as well as the International Monetary Fund (IMF) and the World Bank, are observing the initiative. So far, 11 of the 25 observer members have participated in the sandbox, allowing participants to simulate mBridge nodes and transactions. Currently, mBridge has an Asia/Middle East bias, and the observer members exhibit the same pattern. Participants in the group come from different continents, with six from Asia (Indonesia, South Korea, Malaysia, Nepal, Philippines, Turkey) and five from the Middle East (Bahrain, Egypt, Jordan, Israel, Saudi Arabia). The representative from the United States is the New York Innovation Center, which is affiliated with the Federal Reserve Bank of New York. There are also five EU member states among the mBridge observers, including the ECB.

The mBridge project plans to launch a minimum viable product in mid-next year. The project was founded by central banks in Thailand, Hong Kong, China, and the United Arab Emirates and is part of the Hong Kong Institute for Monetary and Financial Research (HKIMR).

BitGo obtains German cryptocurrency custody license

Cryptocurrency custody company BitGo has obtained a cryptocurrency custody license from the Federal Financial Supervisory Authority (BaFin) in Germany.

DWF Labs may launch institutional-grade OTC trading platform DWF Liquid Markets

Andrei Grachev, co-founder of DWF Labs, posted a screenshot on X platform about “DWF Liquid Markets” and wrote: “An institutional-grade OTC/RFQ (over-the-counter/trading request for quote) platform is coming soon, offering the best pricing, no counterparty/platform risk, and supporting immediate settlement. Launching soon, stay tuned.”

Closing arguments in the SBF trial will be held today, and jury deliberations are expected to begin on Thursday

According to The Wall Street Journal, the closing arguments in the trial of FTX founder Sam Bankman-Fried (SBF) are scheduled to take place on Wednesday morning local time (expected this evening Beijing time), with each side having approximately two to three hours. The jury is expected to begin deliberations on Thursday.

Yesterday evening, U.S. prosecutors attempted to portray SBF’s public statements, media interviews, and tweets as misleading or outright lies, many of which occurred between the collapse of FTX and SBF’s arrest in December last year. SBF reiterated his previous argument in court that he did not participate in the day-to-day trading decisions of Alameda Research. He stated that he couldn’t recall all the reports about him from the time FTX collapsed until his arrest in December 2022.

派盾: Onyx Protocol DeFi Being Attacked, Loses Approximately $2.1 Million

According to LianGuaiNews on November 1, based on Pai Shield’s monitoring, the Onyx Protocol DeFi has fallen under attack and has lost approximately $2.1 million. Pai Shield’s analysis suggests that the Onyx hacker exploited a rounding issue. The compromised oPEPE market was deployed five days ago and had no liquidity. This market borrowed funds from other liquid markets through “donations.” Then, by exploiting the known rounding issue, the attacker redeemed the “donated” funds. Please note that the same vulnerability was exploited in the previous Hundred Finance attack, resulting in approximately $7 million in losses.

Pyth Network to Airdrop PYTH Tokens to over 75,000 Wallets

According to the official blog, oracle project Pyth Network announced that it will airdrop PYTH tokens to over 75,000 wallets. Members of the Pyth community who have contributed to the Pyth network, 27 applications using Pyth data on various blockchains, and individual users of these applications will be eligible for the airdrop.

Pyth Network has not announced the date of distribution for this airdrop. The PYTH tokens for this airdrop come from the “Community and Launch” pool. All eligible participants will receive 6% of the total supply of PYTH tokens (600 million tokens), with dApps receiving 100 million PYTH tokens, DeFi participants engaged in on-chain activities receiving 200 million PYTH tokens, and active community members receiving 100 million PYTH tokens. The snapshot for the airdrop has already been completed.

Important Data

Tether Q3 Reserve Report: Cash and Cash Equivalents Account for 85.7%, Setting a Historical High

Tether has released its third-quarter reserve report, showing that cash and cash equivalents (C&Ceq) account for 85.7% of the reserves, reaching a historical high. The majority of these reserves consist of U.S. Treasury bonds worth $72.6 billion, including direct and indirect exposure to risks. Additionally, the report highlights a significant decrease of $330 million in collateralized loans issued by Tether.

Investment in energy, Bitcoin mining, and P2P technology does not count towards reserves, with excess reserves stable at $3.2 billion. The volatility of Bitcoin and gold has a minimal impact on excess reserves. As of September 30, 2023, Tether’s consolidated total assets are at least $86,384,653,832, with a total liability of $83,176,997,409, of which $83,153,363,663 is related to issued digital tokens. Total assets exceed total liabilities.

Data: 1 billion XRP unlocked from Ripple, worth about $600 million

Whale Alert monitoring shows that at 08:00 Beijing time today, 1 billion XRP was unlocked from Ripple’s custody. Worth about $600 million.

FTX deposited $8.12 million worth of cryptographic assets into Coinbase three hours ago, still holding about $700 million worth of EVM assets

Spot On Chain monitoring shows that about 3 hours ago, FTX deposited $8.12 million worth of three cryptographic assets into Coinbase, including: 46.5 million GRT ($4.85 million); 972,073 RNDR ($2.3 million); 708.1 MKR ($0.967 million)

As of November 1, 2023, FTX and Alameda Research have deposited a total of approximately $78.1 million worth of 22 EVM tokens into exchanges. They still hold various EVM assets worth approximately $701 million.

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