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Project Overview
Circle(NASDAQ:CRCL) is a global financial technology firm that enables businesses of all sizes to leverage the power of digital currencies and public blockchains for payments, commerce, and financial applications worldwide. Circle is the issuer of USD Coin (USDC), one of the fastest-growing dollar digital currencies powering always-on, internet-native commerce and payments. Today, Circle's transactional services, business accounts, and platform APIs are giving rise to a new generation of financial services and commerce applications that hold the promise of increasing global economic prosperity through the frictionless exchange of financial value.His stock code is CRCL.
Base valuation of $128, with non-crypto trading accounting for about 30% on Hyperliquid
research firm Decentralised.co (DCo) has released a report stating that the share of non-crypto asset trading volume on Hyperliquid rose from zero in September 2025 to a peak of 51% in July 2026, and stood at approximately 30% in October 2026; on October 27, such trading accounted for 40% of the platform's $7.2 billion in daily trading volume, with single stocks being the largest trading category that day.The report uses a 2029 global futures and equities market size of $934 trillion as its base, with the base-case scenario assuming crypto trading volume grows to 3 times the current level, a 3% share of the non-crypto market, a blended fee rate of 0.006%, USDC yield falling to 3.6%, and HIP-4 contributing $100 million in revenue; on this basis, it estimates that 2029 revenue will rise from $944 million to $4.91 billion, corresponding to an HYPE price of $128 at a 40x valuation, $98 at a 30x valuation, and $165 under the optimistic scenario, with the current HYPE price at approximately $77. The report states that if the non-crypto fee rate falls to CME's 0.0004%, the base valuation would drop to $66; Binance has already listed 229 TradFi perpetual contracts this year, with average daily trading volume of $13.4 billion, higher than Hyperliquid's $2.3 billion.
Circle Submits Comment Letter to SEC on Proposed Crypto Asset Regulation Rules, Recommends Treating GENIUS Act-Compliant Payment Stablecoins as Cash
Circle has submitted a comment letter to the U.S. Securities and Exchange Commission regarding proposed crypto asset regulation rules, supporting the promotion of innovation under clear rules while maintaining transparency, investor protection, market integrity, liquidity, and efficiency. Circle recommends that the relevant rules be aligned with the GENIUS Act and requests clarification that payment stablecoins compliant with the Act may be used for on-chain capital formation and settlement, and that they constitute "cash" under proposed Rule 302(b), subject to the corresponding USD valuation, accounting, and customer reserve treatment. Circle also recommends reducing the broker-dealer haircut for payment stablecoins compliant with the GENIUS Act from 2% to zero, and requests that the SEC clarify that technical services provided after network operation do not constitute necessary administrative functions, while establishing a safe harbor rule for technology roadmaps.
Redotpay plans to confidentially file for a US IPO by the end of the year, targeting a valuation of at least $5 billion
Redotpay is preparing to confidentially submit an IPO application to the US Securities and Exchange Commission by the end of the year, targeting a valuation of at least $5 billion. The company is still in talks for a Pre-IPO funding round at a valuation of $4 billion to $5 billion. Public information shows that Redotpay currently has more than 9 million customers and annualized revenue exceeding $180 million. The company also raised $194 million in 2025, with backers including the venture capital arms of Coinbase and Circle.
BLOOM Cross-Border Digital Currency Settlement Initiative Expands with Malaysia and Thailand Central Banks Joining
the Monetary Authority of Singapore has announced the expansion of the BLOOM cross-border digital currency settlement initiative, with Bank Negara Malaysia and the Bank of Thailand joining as policy-making members. BLOOM is a public-private partnership initiative covering regulated stablecoins and tokenized deposits, with participants including Mastercard, Visa, Nium, Ripple, Circle, Coinbase, Airwallex, Maybank, Monee, Shopeepay, and the World Bank Group. The initiative will study the acceptance of different forms of currency, inter-institutional contracting, settlement, and system connectivity, and will implement identity verification and sanctions screening through programmable controls, with applications spanning payments, corporate treasury, and trade finance.
Spout Finance Completes $2 Million Strategic Funding Round with Participation from Draper Dragon and Others
Odaily News: Spout Finance announced the completion of a $2 million strategic funding round, with participation from Draper Dragon, Anchorage, Flow Traders, Vessel Capital, Solayer, 2Square, and Bering Waters Group, among others, as well as strategic support from Solana Labs. The project's main business is providing Solana-based DeFi lending services, enabling users to borrow stablecoins such as USDC using their tokenized US stocks as collateral, without paying interest.
Uniform Labs, Developer of Multiliquid, Raises $8 Million Led by Polychain
According to The Block, Uniform Labs, the developer of the tokenized asset settlement platform Multiliquid, has raised $8 million across pre-seed and seed rounds. Polychain led the latest seed round, with participation from Strobe Ventures, CMT Digital, Metalayer Ventures, Generative Ventures, and Circle Ventures. The exact allocation of the funding between the two rounds and the company's valuation have not been disclosed.
Binance theft case involves $6.4 billion, Tether freezes over 1.567 billion USDT
Binance is collaborating with the FBI and the U.S. Secret Service to investigate a theft incident involving $6.4 billion. Stablecoin issuer Circle stated it has frozen over $800 million in USDC related to the incident and is cooperating with law enforcement authorities in the investigation. (Decrypt)
US Secret Service: Working with Circle and other private sector partners to track and recover stolen Binance funds
According to market news, the U.S. Secret Service stated that investigators are collaborating with private sector partners, including Circle, to identify, freeze, trace, and recover funds stolen from Binance.
Circle will reduce limits for the legacy USDC cross-chain protocol CCTP V1 starting October 31, and suspend contracts on December 1.
Additionally, the Noble chain will not integrate with the new version of CCTP. Circle plans to suspend its USDC contract and remaining cross-chain routes on January 12, 2027. Holders on Noble must transfer out their USDC beforehand. Circle will take a snapshot of any remaining balances on the day of suspension and initiate manual redemptions starting January 13. Applicants must meet compliance and security requirements, with assets held in self-custody wallets.
Circle: Has frozen over 800 million USDC related to the Binance attack incident and will continue to cooperate with the investigation.
Circle CEO Jeremy Allaire stated that Circle is closely monitoring reports of a potential attack on Binance, and has coordinated with law enforcement to freeze over 800 million USDC related to the incident. Circle will continue to support the investigation.
EIP-7702 authorization exploited to move Binance wallet assets, with an additional $780M USDC transferred out
Odaily reports: According to Bitcoin News monitoring, on-chain analysis shows that attackers appear to have exploited the Ethereum EIP-7702 mechanism to obtain signature authorization, installing malicious code without directly accessing the private keys of Binance-associated wallets. The attackers then called a function named "sweep" to transfer ETH and dozens of tokens into wallets under their control; the same delegation permission was reportedly also used to transfer $780 million USDC out of another Binance hot wallet. The attackers' transaction relayer received funding through Tornado Cash, and nearly 195,460 ETH was subsequently transferred to a newly created wallet. How the attackers obtained the relevant authorization remains unclear. Binance stated that user funds are safe and that an investigation is currently underway.
Circle Submits Comment Letter to SEC on Proposed Crypto Asset Regulation Rules, Recommends Treating GENIUS Act-Compliant Payment Stablecoins as Cash
Circle has submitted a comment letter to the U.S. Securities and Exchange Commission regarding proposed crypto asset regulation rules, supporting the promotion of innovation under clear rules while maintaining transparency, investor protection, market integrity, liquidity, and efficiency. Circle recommends that the relevant rules be aligned with the GENIUS Act and requests clarification that payment stablecoins compliant with the Act may be used for on-chain capital formation and settlement, and that they constitute "cash" under proposed Rule 302(b), subject to the corresponding USD valuation, accounting, and customer reserve treatment. Circle also recommends reducing the broker-dealer haircut for payment stablecoins compliant with the GENIUS Act from 2% to zero, and requests that the SEC clarify that technical services provided after network operation do not constitute necessary administrative functions, while establishing a safe harbor rule for technology roadmaps.
Three Wall Street Firms Recommend Buying Crypto Stocks on the Dip, Say Binance Hack Unlikely to Derail Market Recovery
Odaily report: Analysts from three Wall Street firms—Cantor Fitzgerald, TD Cowen, and Compass Point—all believe that despite Binance suffering an approximately $6.3 billion hack, there is currently insufficient evidence to suggest the incident will threaten the broader crypto market, and the market's prior recovery trend is unlikely to be interrupted as a result.Cantor Fitzgerald analyst Ramsey El-Assal noted that Tether has frozen over $1.5 billion in stolen assets, Circle has frozen approximately $800 million, and Ripple has frozen about $200 million, with Binance stating that the total frozen stolen funds currently amount to roughly $3 billion. He believes the crypto industry is gradually improving its ability to respond to such security incidents and expects crypto-related stocks such as Coinbase, Robinhood, and Strategy to rebound once market panic subsides, recommending that investors buy on the dip.TD Cowen analyst Lance Vitanza believes the attack exposed security weaknesses in Binance's own transaction signing infrastructure rather than flaws in the underlying technology of cryptocurrencies like Bitcoin, and that the market sell-off may present an opportunity to accumulate Bitcoin and shares of listed companies holding Bitcoin.Compass Point analysts believe Binance has sufficient liquidity to cover the funding gap, and expect its excess USDT reserves, BTC reserves, and USDC funds to be adequate to absorb the losses. However, the firm also warned that Binance compensating customers could put pressure on stablecoin supply and may drive users to migrate from centralized exchanges to competing platforms such as Coinbase, Bullish, and Hyperliquid. (CoinDesk)
Analyst: Binance's Reserve Assets Only Declined Marginally After Attack, User Impact Limited
Odaily report: Crypto analyst Darkfost posted that although Binance yesterday suffered an attack suspected to be linked to the North Korean hacker group Lazarus Group, with losses of approximately $6.3 billion—the largest theft in crypto industry history—the platform's reserve assets only declined modestly, and the impact on users appears limited.Data shows that during the attack, Binance saw outflows of 18,279 BTC, 185 million XRP, and $1.67 billion USDT at one point; ETH flowed out in two batches, totaling 246,840 coins (167,464 and 79,376 respectively). Based on same-day reserve changes, BTC reserves fell 3.1% to over 682,000 coins, ETH dropped 8.5% to 3.3 million coins, XRP declined 8% to 2.47 billion coins, and USDT decreased 6.3% to $34.1 billion.Additionally, Binance stated it has frozen approximately $3 billion in related assets, including $1.567 billion USDT and over $800 million USDC, and pledged to absorb losses through the SAFU fund and company reserves. Darkfost believes the magnitude of change in Binance's reserve assets indicates the platform still possesses a certain capacity to absorb shocks.
Analysis: Binance Hack May Inadvertently Halt VC and Project Token Sell-Offs
Odaily reports: Some market observers suggest that following the approximately $6.3 billion hack on Binance, project teams, VCs, and associated wallets may temporarily hold off on selling their altcoin holdings. In the coming days, funds, insiders, and project-affiliated wallets may exercise greater caution before selling tokens into the market to avoid further exacerbating selling pressure.Blockchain analytics firms TRM Labs and Chainalysis have both attributed the attack to North Korea with high confidence. Binance has committed to covering user losses through its protection fund and company resources, and approximately $3 billion in stolen assets have been located, with about half frozen through stablecoin issuers such as Tether and Circle. Market analysts note that the incident has once again sparked discussions around the security of centralized trading platforms, the freezing capabilities of stablecoins, and the difficulty of tracking decentralized assets. (zerohedge)
Following the liquidation of its ETH long position, Maji deposited an additional 250,000 USDC to open a leveraged long, with the position valued at approximately $5.88 million.
According to on-chain analyst Ember (@EmberCN)'s monitoring on October 30, Maji's ETH long positions were entirely liquidated during the morning sell-off triggered by the Binance hack. In the afternoon, he deposited an additional 250,000 USDC to continue opening longs, and currently holds long positions worth approximately $5.88 million on Hyperliquid, covering ETH, HYPE, and BTC.
Circle will reduce limits for the legacy USDC cross-chain protocol CCTP V1 starting October 31, and suspend contracts on December 1.
Additionally, the Noble chain will not integrate with the new version of CCTP. Circle plans to suspend its USDC contract and remaining cross-chain routes on January 12, 2027. Holders on Noble must transfer out their USDC beforehand. Circle will take a snapshot of any remaining balances on the day of suspension and initiate manual redemptions starting January 13. Applicants must meet compliance and security requirements, with assets held in self-custody wallets.
Hyperliquid whale places ~$20M ETH buy order, existing longs down $4.63M unrealized
According to Onchain Lens, trader Long Loyalist deposited 4.9 million USDC into Hyperliquid about an hour ago and placed a buy order for 9,630 ETH, valued at approximately $20 million. The trader currently holds 4,860 ETH in long positions, worth around $10.94 million, with unrealized losses across 39 positions totaling $4.63 million, and cumulative historical losses reaching $4.29 million.
US Secret Service: Working with Circle and other private sector partners to track and recover stolen Binance funds
According to market news, the U.S. Secret Service stated that investigators are collaborating with private sector partners, including Circle, to identify, freeze, trace, and recover funds stolen from Binance.
Three Wall Street Firms Recommend Buying Crypto Stocks on the Dip, Say Binance Hack Unlikely to Derail Market Recovery
Odaily report: Analysts from three Wall Street firms—Cantor Fitzgerald, TD Cowen, and Compass Point—all believe that despite Binance suffering an approximately $6.3 billion hack, there is currently insufficient evidence to suggest the incident will threaten the broader crypto market, and the market's prior recovery trend is unlikely to be interrupted as a result.Cantor Fitzgerald analyst Ramsey El-Assal noted that Tether has frozen over $1.5 billion in stolen assets, Circle has frozen approximately $800 million, and Ripple has frozen about $200 million, with Binance stating that the total frozen stolen funds currently amount to roughly $3 billion. He believes the crypto industry is gradually improving its ability to respond to such security incidents and expects crypto-related stocks such as Coinbase, Robinhood, and Strategy to rebound once market panic subsides, recommending that investors buy on the dip.TD Cowen analyst Lance Vitanza believes the attack exposed security weaknesses in Binance's own transaction signing infrastructure rather than flaws in the underlying technology of cryptocurrencies like Bitcoin, and that the market sell-off may present an opportunity to accumulate Bitcoin and shares of listed companies holding Bitcoin.Compass Point analysts believe Binance has sufficient liquidity to cover the funding gap, and expect its excess USDT reserves, BTC reserves, and USDC funds to be adequate to absorb the losses. However, the firm also warned that Binance compensating customers could put pressure on stablecoin supply and may drive users to migrate from centralized exchanges to competing platforms such as Coinbase, Bullish, and Hyperliquid. (CoinDesk)
Aave V3 and V4 have fully lifted market freezes, with some assets temporarily maintaining 0 LTV
Aave officially stated that the precautionary freeze measures taken following the Binance security incident have now been lifted, and all markets on Aave V3 and V4 have returned to normal. Previously, after receiving initial information about the incident, Aave paused new deposits and borrowings, but users could still withdraw assets and repay loans normally. Aave emphasized that its smart contracts were not affected by the incident, and user positions remained fully collateralized at all times. As an ongoing precautionary measure, the LTV of USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG, and OP will temporarily remain at 0, and these assets cannot be used as collateral for new borrowings.
Analyst: Binance's Reserve Assets Only Declined Marginally After Attack, User Impact Limited
Odaily report: Crypto analyst Darkfost posted that although Binance yesterday suffered an attack suspected to be linked to the North Korean hacker group Lazarus Group, with losses of approximately $6.3 billion—the largest theft in crypto industry history—the platform's reserve assets only declined modestly, and the impact on users appears limited.Data shows that during the attack, Binance saw outflows of 18,279 BTC, 185 million XRP, and $1.67 billion USDT at one point; ETH flowed out in two batches, totaling 246,840 coins (167,464 and 79,376 respectively). Based on same-day reserve changes, BTC reserves fell 3.1% to over 682,000 coins, ETH dropped 8.5% to 3.3 million coins, XRP declined 8% to 2.47 billion coins, and USDT decreased 6.3% to $34.1 billion.Additionally, Binance stated it has frozen approximately $3 billion in related assets, including $1.567 billion USDT and over $800 million USDC, and pledged to absorb losses through the SAFU fund and company reserves. Darkfost believes the magnitude of change in Binance's reserve assets indicates the platform still possesses a certain capacity to absorb shocks.
Analysis: Binance Hack May Inadvertently Halt VC and Project Token Sell-Offs
Odaily reports: Some market observers suggest that following the approximately $6.3 billion hack on Binance, project teams, VCs, and associated wallets may temporarily hold off on selling their altcoin holdings. In the coming days, funds, insiders, and project-affiliated wallets may exercise greater caution before selling tokens into the market to avoid further exacerbating selling pressure.Blockchain analytics firms TRM Labs and Chainalysis have both attributed the attack to North Korea with high confidence. Binance has committed to covering user losses through its protection fund and company resources, and approximately $3 billion in stolen assets have been located, with about half frozen through stablecoin issuers such as Tether and Circle. Market analysts note that the incident has once again sparked discussions around the security of centralized trading platforms, the freezing capabilities of stablecoins, and the difficulty of tracking decentralized assets. (zerohedge)
HTX DeepThink: Security incidents compounded by tightening expectations, BTC may sustain high volatility with a weak bias in the short term.
HTX Research analyst Chloe noted that this week, the cryptocurrency market faced a dual shock from expectations of macro tightening and the Binance security incident, causing short-term risk appetite to drop significantly. BTC briefly dipped below $77,000, triggering approximately $1.55 billion in liquidations across the market within 24 hours, including around $1.34 billion in long positions. Reports indicate the security incident involves assets totaling approximately $6.3 billion, with institutions like Tether and Circle assisting in freezing roughly $3 billion of the related funds. Binance has also committed to covering user losses, but the progress of the incident's resolution will continue to dictate the pace of market sentiment recovery.
63% of EIP-7702 authorization transactions involve malicious contracts, research reveals wallet authorization risks
Odaily reports: An empirical study presented at USENIX Security 2026 shows that among the approximately 3.66 million early EIP-7702 authorization transactions across seven chains, about 63% were associated with malicious contracts; confirmed losses exceed $2.3 million, and 924 malicious contracts were identified. Most attacks use phishing to trick users into signing authorizations that delegate their wallets to sweeper contracts. On-chain analysis shows that in today's anomalous outflow event from Binance hot wallets, attackers exploited EIP-7702 authorizations signed by hot wallets including Binance 14 to delegate accounts to pre-deployed malicious sweeper contracts, then transferred assets in bulk within minutes. Estimates from multiple parties put the scale in the billions of dollars, and Tether, Circle, and others have frozen some stablecoins. This incident aligns with the risks identified in the research: whether through private key leakage or abuse of signing systems, once attackers obtain a legitimate authorization signature, EIP-7702 grants them persistent execution control over the account until the authorization is revoked.
Analysis: Arbitrage Window Emerges On-Chain During Binance Hack, Single Address Profits Approximately $3.47 Million in Two Hours
Odaily Report: During the Binance attack, an obvious arbitrage opportunity emerged on-chain. According to a community user's review, the attacker, in order to avoid Tether freezing, swapped a large amount of USDT for ETH through DEXs, causing the ETH price on Uniswap to briefly rise to $2,560–$2,750, with some individual trades exceeding $3,000, while Aave's ETH price obtained through the Chainlink oracle remained at $2,250–$2,290. A price gap of 15% to 30% appeared between on-chain and oracle prices, lasting nearly an hour.Arbitrageurs exploited this price gap by depositing USDC/USDT as collateral into Aave, borrowing ETH at the oracle price, then selling it at high prices on DEXs, and buying back ETH to repay the loans once the spread narrowed. According to the user's statistics, within 6 hours after the incident, a total of 61 addresses borrowed ETH on Aave mainnet (excluding the hacker's address). Among them, the most profitable address sold 12,289 ETH at an average price of approximately $2,580, then bought back 12,314 ETH at an average price of approximately $2,297, earning about $3.47 million. The top ten arbitrage addresses collectively profited approximately $6.36 million.The user stated that the arbitrageurs exploited the price disconnection between centralized exchanges and DEXs, and that the Aave contract itself had no vulnerability. As DEX prices fell back and Aave froze the mainnet V3 market, the arbitrage window gradually closed. The above profits are based on transaction-by-transaction on-chain statistics and have not yet deducted Gas fees.
Circle: Has frozen over 800 million USDC related to the Binance attack incident and will continue to cooperate with the investigation.
Circle CEO Jeremy Allaire stated that Circle is closely monitoring reports of a potential attack on Binance, and has coordinated with law enforcement to freeze over 800 million USDC related to the incident. Circle will continue to support the investigation.
Wallet Linked to Binance Hackers Holds About 253,000 ETH, Worth Approximately $570 Million
Odaily report: A wallet suspected to be associated with the Binance hack incident received tens of thousands of ETH through a Uniswap contract and borrowed 19,762 ETH on Aave using approximately $60 million in USDT as collateral. On-chain records do not show any vulnerabilities in Uniswap or Aave.As of 22:07 UTC, the two wallets held approximately 253,000 ETH, worth about $570 million, with no outgoing transfers recorded. Aave has paused the Ethereum mainnet V3 market, and Kamino has also paused borrowing in the SOL/BTC market; Ripple has frozen approximately $200 million in RLUSD, and more than $2 billion in USDT and USDC has been frozen by stablecoin issuers. (Decrypt)
MetaMask Sets Stellar as Default Network on Mobile and Extension
MetaMask has set Stellar as the default network on its mobile app and browser extension. Existing multi-chain accounts will receive a Stellar address derived from their seed phrase, with support for XLM, USDC, and Soroban tokens.
Base valuation of $128, with non-crypto trading accounting for about 30% on Hyperliquid
research firm Decentralised.co (DCo) has released a report stating that the share of non-crypto asset trading volume on Hyperliquid rose from zero in September 2025 to a peak of 51% in July 2026, and stood at approximately 30% in October 2026; on October 27, such trading accounted for 40% of the platform's $7.2 billion in daily trading volume, with single stocks being the largest trading category that day.The report uses a 2029 global futures and equities market size of $934 trillion as its base, with the base-case scenario assuming crypto trading volume grows to 3 times the current level, a 3% share of the non-crypto market, a blended fee rate of 0.006%, USDC yield falling to 3.6%, and HIP-4 contributing $100 million in revenue; on this basis, it estimates that 2029 revenue will rise from $944 million to $4.91 billion, corresponding to an HYPE price of $128 at a 40x valuation, $98 at a 30x valuation, and $165 under the optimistic scenario, with the current HYPE price at approximately $77. The report states that if the non-crypto fee rate falls to CME's 0.0004%, the base valuation would drop to $66; Binance has already listed 229 TradFi perpetual contracts this year, with average daily trading volume of $13.4 billion, higher than Hyperliquid's $2.3 billion.
Related news
Binance theft case involves $6.4 billion, Tether freezes over 1.567 billion USDT
Binance is collaborating with the FBI and the U.S. Secret Service to investigate a theft incident involving $6.4 billion. Stablecoin issuer Circle stated it has frozen over $800 million in USDC related to the incident and is cooperating with law enforcement authorities in the investigation. (Decrypt)
US Secret Service: Working with Circle and other private sector partners to track and recover stolen Binance funds
According to market news, the U.S. Secret Service stated that investigators are collaborating with private sector partners, including Circle, to identify, freeze, trace, and recover funds stolen from Binance.
Three Wall Street Firms Recommend Buying Crypto Stocks on the Dip, Say Binance Hack Unlikely to Derail Market Recovery
Odaily report: Analysts from three Wall Street firms—Cantor Fitzgerald, TD Cowen, and Compass Point—all believe that despite Binance suffering an approximately $6.3 billion hack, there is currently insufficient evidence to suggest the incident will threaten the broader crypto market, and the market's prior recovery trend is unlikely to be interrupted as a result.Cantor Fitzgerald analyst Ramsey El-Assal noted that Tether has frozen over $1.5 billion in stolen assets, Circle has frozen approximately $800 million, and Ripple has frozen about $200 million, with Binance stating that the total frozen stolen funds currently amount to roughly $3 billion. He believes the crypto industry is gradually improving its ability to respond to such security incidents and expects crypto-related stocks such as Coinbase, Robinhood, and Strategy to rebound once market panic subsides, recommending that investors buy on the dip.TD Cowen analyst Lance Vitanza believes the attack exposed security weaknesses in Binance's own transaction signing infrastructure rather than flaws in the underlying technology of cryptocurrencies like Bitcoin, and that the market sell-off may present an opportunity to accumulate Bitcoin and shares of listed companies holding Bitcoin.Compass Point analysts believe Binance has sufficient liquidity to cover the funding gap, and expect its excess USDT reserves, BTC reserves, and USDC funds to be adequate to absorb the losses. However, the firm also warned that Binance compensating customers could put pressure on stablecoin supply and may drive users to migrate from centralized exchanges to competing platforms such as Coinbase, Bullish, and Hyperliquid. (CoinDesk)
Aave V3 and V4 have fully lifted market freezes, with some assets temporarily maintaining 0 LTV
Aave officially stated that the precautionary freeze measures taken following the Binance security incident have now been lifted, and all markets on Aave V3 and V4 have returned to normal. Previously, after receiving initial information about the incident, Aave paused new deposits and borrowings, but users could still withdraw assets and repay loans normally. Aave emphasized that its smart contracts were not affected by the incident, and user positions remained fully collateralized at all times. As an ongoing precautionary measure, the LTV of USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG, and OP will temporarily remain at 0, and these assets cannot be used as collateral for new borrowings.
Analyst: Binance's Reserve Assets Only Declined Marginally After Attack, User Impact Limited
Odaily report: Crypto analyst Darkfost posted that although Binance yesterday suffered an attack suspected to be linked to the North Korean hacker group Lazarus Group, with losses of approximately $6.3 billion—the largest theft in crypto industry history—the platform's reserve assets only declined modestly, and the impact on users appears limited.Data shows that during the attack, Binance saw outflows of 18,279 BTC, 185 million XRP, and $1.67 billion USDT at one point; ETH flowed out in two batches, totaling 246,840 coins (167,464 and 79,376 respectively). Based on same-day reserve changes, BTC reserves fell 3.1% to over 682,000 coins, ETH dropped 8.5% to 3.3 million coins, XRP declined 8% to 2.47 billion coins, and USDT decreased 6.3% to $34.1 billion.Additionally, Binance stated it has frozen approximately $3 billion in related assets, including $1.567 billion USDT and over $800 million USDC, and pledged to absorb losses through the SAFU fund and company reserves. Darkfost believes the magnitude of change in Binance's reserve assets indicates the platform still possesses a certain capacity to absorb shocks.
Analysis: Binance Hack May Inadvertently Halt VC and Project Token Sell-Offs
Odaily reports: Some market observers suggest that following the approximately $6.3 billion hack on Binance, project teams, VCs, and associated wallets may temporarily hold off on selling their altcoin holdings. In the coming days, funds, insiders, and project-affiliated wallets may exercise greater caution before selling tokens into the market to avoid further exacerbating selling pressure.Blockchain analytics firms TRM Labs and Chainalysis have both attributed the attack to North Korea with high confidence. Binance has committed to covering user losses through its protection fund and company resources, and approximately $3 billion in stolen assets have been located, with about half frozen through stablecoin issuers such as Tether and Circle. Market analysts note that the incident has once again sparked discussions around the security of centralized trading platforms, the freezing capabilities of stablecoins, and the difficulty of tracking decentralized assets. (zerohedge)