LianGuai Daily | Poloniex wallet hacked, losing over $114 million; Sun Yuchen says willing to offer 5% white hat reward if the funds are returned

LianGuai Daily | Poloniex Wallet Breached, $114 Million Stolen; Sun Yuchen Offers 5% Reward to White Hat Hackers for Funds' Return

Today’s News Highlights:

BlackRock has submitted an application for an Ethereum spot ETF

Celsius approved by bankruptcy court to transform into a Bitcoin mining company, still pending approval from the SEC

Polygon Village 2.0 launches a $110 million MATIC funding program for ecosystem development, valued at $90 million

• The Epic Rise and Potential Fall of Bitcoin: A Rollercoaster of Crypto
• How Stablecoins Lost Their Stability, and Why It’s Still Not Game Over
• Decoding Atomicals The Halal ARC-20 Token Protocol with Hidden Huge Potential?

Estimated losses from Poloniex hack rise to $114 million, $49 million from the TRON network

Data: CME becomes the largest exchange for Bitcoin futures open interest

Lightspeed Faction launches its first crypto fund with $285 million

Crypto venture firm Maven 11 raising $100 million for its third fund

MicroStrategy’s Bitcoin holdings currently have an unrealized gain of about $1.2 billion, representing approximately 80% of its stock market value

Regulatory News

The United States will impose more sanctions on Hamas, preventing its fundraising activities through cryptocurrencies and other means.

According to Reuters, US Deputy Treasury Secretary Wally Adeyemo said on Thursday that the United States and its allies will implement more sanctions in the coming days and weeks to prevent Hamas from gaining funds, including cracking down on its use of cryptocurrencies. Adeyemo stated that while cryptocurrencies are not currently a major asset source for Hamas, “over time, if the cryptocurrency industry does not take protective measures and take anti-money laundering responsibilities seriously, Hamas and others will increasingly use cryptocurrencies.”

In addition, Brian Nelson, the top sanctions official at the US Treasury Department, met with private sector entities including cryptocurrency companies and payment processors on Thursday to discuss tactics against Hamas fundraising. The US Treasury Department stated in a statement that Deputy Secretary Nelson, responsible for terrorism and financial intelligence, listened to the opinions of currency service companies, payment processors, and blockchain analysis companies to understand the technologies used by the extremist organization for fundraising and transferring funds.

Project Updates

BlackRock Applies for Ethereum Spot ETF

Bloomberg analyst James Seyffart tweeted that Nasdaq has submitted BlackRock’s 19b-4 form (rule change filing) for an Ethereum spot ETF to the US SEC. The ETF is planned to be listed on Nasdaq, with Coinbase serving as the Ethereum custodian. The analyst stated that, based on public information, there are currently 5 other Ethereum spot ETF applications, including Vaneck, ARKInvest/21Shares, Hashdex, Invesco US/Galaxy, and Grayscale’s conversion of ETHE.

In previous news, BlackRock registered an Ethereum trust in Delaware. Later today, Fox reporter says BlackRock confident SEC will approve Bitcoin spot ETF in January.

Bloomberg Analyst: Supervisory Sharing Agreement Not Required for Approval of Bitcoin Spot ETF

Bloomberg analyst James Seyffart stated on Twitter that he personally believes that the approval of 19b-4 (trading rule change) does not require a Supervisory Sharing Agreement (SSA). If the SEC requires it, any applicant without an SSA can easily meet those requirements. Another Bloomberg analyst, Eric Balchunas, responded, saying, “SSA has become a small issue for us now. It may not be a necessary condition. Even if the SEC trading division needs it, it can easily be added to the document.”

Bloomberg: UBS to Support Wealthy Clients to Buy Three HKMA-Authorized Crypto ETFs

According to Bloomberg, as part of the push to establish Hong Kong as a digital asset hub, UBS Group and other competitors like HSBC are allowing Hong Kong clients to trade certain exchange-traded funds tied to cryptocurrencies on their platforms. Sources say that starting from Friday, wealthy clients will be able to buy three HKMA-authorized crypto ETFs on the UBS Hong Kong platform, including the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. Clients can also access educational materials to understand the risks.

The CSOP Bitcoin Futures and CSOP Ether Futures were celebrated as Asia’s first listed Bitcoin and Ethereum futures ETFs when they launched in December last year. The total assets of these two funds and Samsung’s investment vehicle are relatively small, around $70 million.

Celsius receives bankruptcy court approval for its plan to transform into a Bitcoin mining company, pending SEC approval

According to Bloomberg, the US bankruptcy court has approved Celsius Network LLC’s plan to transform into a Bitcoin mining company owned by creditors. Approximately $2 billion worth of Bitcoin and Ethereum will be reallocated to Celsius creditors along with ownership in the new company, NewCo. Celsius attorneys say that asset distribution may begin in early next year.

The transformation plan still requires approval from the SEC, and if all goes according to plan, the new company will go public. If the proposal is not approved, Celsius may turn to liquidation. The judge urges the SEC to make a swift decision on Celsius’ transformation plan.

Polygon Village 2.0 launches a $110 million MATIC funding program for ecosystem development, valued at $90 million

Polygon developer Polygon Labs has relaunched the Polygon Village program, offering a new funding program of over 110 million MATIC (currently valued at approximately $91.3 million) to aid projects in developing within the Polygon ecosystem. In addition to the grants, Polygon Village 2.0 also provides a comprehensive support system for projects, including strategic support, guidance, co-working spaces, ideation programs, and venture capital introductions. Polygon Village has been reimagined based on direct input and feedback from developers, becoming a home for founders at all stages to build, learn, connect, secure funding, gain guidance, expand, and experience exponential growth.

Polygon Village consists of three main components: Village Grants, Village Build Ideas, and Village Startup Support.

Binance to launch ILV perpetual contract

The Binance Futures platform will launch the USDⓈ-M ILV perpetual contract with leverage of up to 50x on November 11, 2023, at 00:30 (Beijing time).

Investment and Financing

Crypto venture Maven 11 seeks $100 million for its third fund

Amsterdam-based crypto venture capital firm Maven 11 is seeking $100 million in funding for its third fund. The company aims to complete the fundraising in the first half of next year. So far, one-third of the $100 million target has been committed by limited partners. Maven 11 is part of the M11 Group, a global blockchain and cryptocurrency investment firm.

Crypto chip company Ingonyama raises $20 million in seed funding

According to Calcalistech, cryptocurrency chip company Ingonyama has announced the completion of a $20 million seed round of financing. AI21 Lab, the main investor of Walden Catalyst, led the round, with participation from Geometry, BlueYard Capital, Samsung Next, Sentinel Global, and others. Many of the companies participating in this round of financing heavily rely on zero-knowledge proof technology, including Israeli company StarkWare.

It is reported that Ingonyama’s first chip is a programmable parallel computing processor similar to a GPU, but specifically designed to accelerate advanced encryption, particularly for zero-knowledge proofs and fully homomorphic encryption. While the chip is being prepared, the company is collaborating with GPUs to develop open-source software that efficiently runs the same cryptography.

Lightspeed Faction launches its first $285 million early-stage crypto fund

According to TechCrunch, blockchain-focused venture capital firm Lightspeed Faction has launched its first $285 million early-stage crypto fund. Faction focuses on raising seed or Series A financing for early-stage blockchain projects. Prior to its public launch, the fund had already invested approximately 20% of its capital in a few projects, with a deployment period of about three years, but this may vary depending on the investment environment.

In a previous report, Lightspeed focused on early-stage crypto funds Lightspeed Faction completes $325 million initial fundraising, but the fundraising activities have not ended, and it is expected that the total financing amount of the crypto fund will eventually reach $400 million.

Crypto analysis company Block Scholes completes $3.3 million financing.

Velo Labs announces $10 million investment from DWF Labs.

Important data

Galaxy Digital Q3 net loss expands to $94 million

According to Bloomberg, cryptocurrency financial services company Galaxy Digital Holdings, owned by Michael Novogratz, reported a net loss of $94 million for the third quarter, compared to a net loss of approximately $68 million for the same period last year. The company’s net loss for the second quarter was around $46 million. The market generally predicts that Galaxy’s losses will stabilize at around $44 million.

Galaxy offers various businesses ranging from cryptocurrency trading and asset management to mining. The company reported trading revenue of $14 million for this quarter, a decrease of $6 million from the second quarter. However, Galaxy stated that its financial condition has significantly improved since the end of this quarter, with pre-tax revenue of $124 million in October and trading revenue of $24 million.

Data: CME becomes the largest exchange for open positions of Bitcoin futures

Coinglass data shows that the open interest of Bitcoin futures on the Chicago Mercantile Exchange (CME) has increased to 111,080 BTC (worth $4.08 billion), surpassing Binance’s 104,100 BTC (worth $3.83 billion), becoming the largest exchange in terms of open interest in Bitcoin futures.

Over the past 24 hours, the entire network has experienced a liquidation of $493 million, with both long and short positions being liquidated simultaneously

Coinglass data shows that over the past 24 hours, the cryptocurrency market has experienced a total liquidation of $493 million in contracts, with $219 million in long positions and $274 million in short positions being liquidated. In terms of specific cryptocurrencies, BTC had the highest liquidation amount, approximately $167 ​​million, followed by ETH with approximately $81.95 million. The largest single liquidation occurred on OKX – BTC-USDT-SWAP, valued at $14.7616 million.

Estimated losses from Poloniex hack increased to $114 million, with $49 million coming from the TRON network

Cryptocurrency exchange Poloniex’s wallet was suspected to have been hacked, with estimated losses increasing to $114 million, of which $49 million came from the TRON network.Hackers purchased 206 million TRX, and TRON has frozen some of the hacker’s addresses.

Sun Yuchen stated that he will fully repay the affected funds, and additionally stated that willing to offer a 5% white hat bounty to the Poloniex hacker, providing 7 days for consideration.

MicroStrategy’s Bitcoin holdings currently have an unrealized profit of approximately $1.2 billion, with Bitcoin’s market value accounting for about 80% of its stock market value

MicroStrategy currently holds over 158,000 Bitcoins. Based on the current price of around $37,000 per Bitcoin, the total value is approximately $5.8 billion, which is equivalent to 80% of its stock market value ($7.1 billion). The cost of MicroStrategy’s Bitcoin assets is accumulated to $4.6 billion, which means the current unrealized profit is approximately $1.2 billion.

FTX-related addresses transferred another 750,000 SOL tokens, worth approximately $33 million

According to Paishield monitoring, about 8 hours ago, FTX-related addresses transferred 750,000 SOL tokens (worth approximately $33 million) to the 4Axqyo…wTAh address and received 28,500 USDC tokens.

Earlier today, it was reported that FTX and Alameda addresses increased the value of their FTT holdings from $334 million to $726 million.

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