The XRP Ledger bug bounty controversy continues, drawing attention to blockchain security governance; Bitcoin spot ETFs saw a net outflow of $681 million last week, ending three consecutive weeks of net inflows; Ethereum ETFs saw a net outflow of $542 million, with BlackRock leading.
Today's headlines:
ZachXBT accuses XRPL of paying only $250,000 bounty to white-hat hacker who discovered "infinite XRP supply vulnerability"
Polygon Foundation founder: 100 million POL burned two weeks ago, next phase to burn 22 million POL
Morgan Stanley to support tokenized stocks on alternative trading system in Q1 next year
Binance bStocks to distribute Micron Technology stock dividends to MUB holders
Binance to list ZCS and multiple other U-margined TradFi perpetual contracts
Yixin Company suspected of illegal and criminal activities, case filed for investigation by Beijing Chaoyang police
Three consecutive weeks of net inflows ended, Bitcoin spot ETFs saw $681 million net outflow last week
Ethereum spot ETFs saw $542 million net outflow last week, BlackRock's ETHA led with $477 million net outflow
Two Ethereum Foundation-linked wallets transferred 4,393 ETH to Kraken in 4 hours, worth approximately $11.13 million
XRP Ledger Foundation clarifies misunderstandings related to security fix: vulnerability did not mint additional XRP, community consensus drove patch
Regulation & Macro
Yixin Company suspected of illegal and criminal activities, case filed for investigation by Beijing Chaoyang police
The Chaoyang Branch of the Beijing Municipal Public Security Bureau announced that it has recently filed a case for investigation into suspected illegal and criminal activities by Yixin-related companies in accordance with the law. Actual controllers Tang (male, 53) and Zhao (female, 51), along with multiple other criminal suspects, have been subjected to criminal coercive measures in accordance with the law. Police are fully investigating the case and remind investors to cooperate with the investigation and evidence collection, and to beware of criminals committing fraud under the pretext of early redemption.
U.S. Treasury Secretary Bessent: Trump does not expect any military conflict before the midterm elections
U.S. Treasury Secretary Bessent stated that U.S. President Trump does not expect any military conflict before the midterm elections; diesel transactions with Russia are beneficial to Americans, and all legal authorities will be used to carry out such transactions.
Project Dynamics
Polygon Foundation founder: 100 million POL burned two weeks ago, next phase to burn 22 million POL
Polygon Foundation founder Sandeep Nailwal stated that two weeks ago the Polygon protocol used fees generated by the network to burn 100 million POL (about 1% of total supply). Currently, the next phase's planned POL burn has reached 22 million (about 0.2% of total supply).
Morgan Stanley to support tokenized stocks on alternative trading system in Q1 next year
Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, stated that Morgan Stanley expects to support tokenized stocks on an alternative trading system (ATS) in the first quarter of 2027, a delay from the previously announced plan for the second half of 2026. She said the first quarter may be more realistic and can stay in sync with other ecosystem activities, but the team is actively advancing the construction work.
Based updates crypto card data breach progress: reported to regulators and filed police report, trading wallet and app unaffected
Based co-founder Edison updated progress on the crypto card data breach: it has notified the PDPC and relevant regulators, and filed a report with police. The crypto card business is operating normally, and the trading wallet and app are unaffected. The wallet adopts a self-custody model, and the platform does not hold keys. Regarding the "admin backend leaked five months ago," the team clarified that the system is unrelated to the crypto card business, contains no customer data, and was only an early OpenClaw admin product prototype for internal testing in March 2026, and development has stopped. Previously, on October 5, an unauthorized party accessed an internal dashboard managing the Based Visa Card program, and the attacker may have obtained some cardholders' KYC data, including names, ID or passport numbers, dates of birth, and addresses.
Solana treasury company SkyAI plans $201 million tender offer and rejects Forward Industries acquisition proposal
Solana treasury company SkyAI (SKYA) plans to launch a cash tender offer to acquire up to 95% of outstanding common shares and warrants at $3 per unit, covering up to approximately 46.4 million common shares and approximately 20.7 million warrants, for a maximum total of approximately $201 million, expected to be paid using existing cash and proceeds from the sale of Solana assets. The tender offer is expected to launch on Thursday and last for 10 business days. In addition, the SkyAI board rejected Forward Industries' all-stock acquisition proposal, believing that the exchange ratio of 0.306 shares for 1 share undervalues SkyAI.
Binance bStocks to distribute Micron Technology stock dividends to MUB holders
Binance will distribute Micron Technology (MU) stock dividends to users holding MUB through bStocks. After deducting withholding taxes, fees, and other expenses, the net cash dividend will be automatically reinvested in the same underlying security and distributed in the form of MUB stock tokens. The snapshot time for dividend eligibility is October 14 at 8:00 (UTC+8). Binance will suspend the 1:1 exchange between MU and MUB and the MUB deposit, withdrawal, and conversion functions on October 14 at 07:30 (UTC+8), and will automatically resume after the distribution is completed. Dividends generated by other accounts will be credited to the spot account.
Binance to list ZCS and multiple other U-margined TradFi perpetual contracts
Binance will list ZCSHUSDT, MSTUUSDT, SNPSUSDT, and RDWUSDT U-margined perpetual contracts from 17:00 to 17:15 (UTC+8) on October 12, with a maximum leverage of 20x.
Upbit to list RSR token on KRW and USDT markets
South Korean crypto exchange Upbit will list the RSR token on the KRW and USDT markets, with trading starting at 14:05 local time on October 12.
XRP Ledger Foundation clarifies misunderstandings related to security fix: vulnerability did not mint additional XRP, community consensus drove patch
The XRP Ledger Foundation clarified recent questions regarding the security fix: the vulnerability did not mint any additional XRP, and the total supply has been fixed at 100 billion since the ledger launched; the vulnerability could once bypass this rule and was fixed in version 3.4.1 (about two weeks ago). Currently, approximately 99.986 billion XRP exist. The foundation stated that ordinary payments are unlikely to trigger the vulnerability and would require hundreds of deliberately constructed operations. It will subsequently strengthen formal verification, AI adversarial testing, and enhance the bug bounty program. The fix was directly released after community consensus (including XRPLF, RippleX, core developers, and validator nodes), and version 3.4.1 was enforced based on the regular "amendment" mechanism, requiring support from more than 80% of validator nodes and maintained for two weeks.
Billionaire Adam Weitsman buys 117 Pudgy Penguins NFTs
Billionaire Adam Weitsman posted that last weekend he purchased 117 Pudgy Penguins NFTs on-chain. He said the project is going through a difficult period, but he wanted to support one of his favorite collections. In August 2024, he purchased more than 5,000 NFTs from Yuga Labs, including Otherdeeds, Mega Kodas, and Weapon Kodas.
Bithumb to list ZEST token on KRW market
South Korean crypto exchange Bithumb will list the ZEST token on the KRW market, with trading expected to open at 14:00 local time.
Jeonbuk Bank of South Korea launches KRW loan program collateralized by Bitcoin
Jeonbuk Bank, under JB Financial Group, launched South Korea's first KRW loan program linked to digital assets in the Korean banking industry. Initially, it will only serve corporate clients, with Bitcoin as the sole collateral, and loan proceeds are limited to business operating funds. The bank does not directly hold or manage Bitcoin; it is custodied by a qualified virtual asset service provider. In the event of default, the bank does not acquire ownership of the virtual assets, but instead recovers claims through court auctions and other procedures in accordance with the revised Civil Execution Rules. Jeonbuk Bank has completed stress tests and established a valuation system based on the weighted average price of multiple global exchanges.
Ledger supply chain attack suspected to have spread to Europe, users say hardware implants found in devices from official distributorsAccording to Bitcoin News, security researcher Johannes disclosed that a hardware wallet purchased by a user from an official Ledger distributor in Europe was found weeks after purchase to contain an unauthorized hardware implant. Suspicious wiring not present in normal Ledger hardware appeared inside the device, suspected to have been physically tampered with before sale. The implant appears to use an earlier design; newer versions may be hidden behind the screen to increase detection difficulty. No fund theft has occurred so far. The previous CryptoBilis Ledger incident had already raised supply chain security concerns, with suspected related cases emerging successively in Asia, South America, and Europe. The researcher noted that Ledger's Genuine Check may fail to detect physical modifications when the original security chip has not been compromised.
Bithumb to list KGEN token on the Korean won market
South Korean crypto exchange Bithumb will list the KGEN token on the Korean won market, with trading expected to open at 19:30 local time.
PaperTrade responds to fairness and manipulation concerns: queuing mechanism ensures fairness, some users manipulating BBO cannot sustain profits
PaperTrade responded to community discussions following its launch: its fair launch mechanism, small-order priority, and BTC/ETH market volatility were all considered during the design phase, and trading volume in the first 6 hours after launch exceeded that of the stock market over the same period. One day after launch, it has become an exchange supporting 100x leverage, with liquidity pool size reaching $5 million and $25 million in rewards already distributed to staking users. The team stated that under technical constraints, it is impossible to give small and large orders completely equal priority, and the existing queuing mechanism is the fairest possible solution under these limitations; in the initial launch period, relatively loose position limits were set to handle large demand, leading to abnormal trades, and OI limits have now begun to be tightened on-chain and at the relay layer. Some users who manipulated BBO did not sustain profits, with some returning most of their profits to the platform, while some users chose to cancel affected trades in exchange for Paper points.
Michael Saylor again posts Bitcoin Tracker information, may disclose holdings change data next week
Michael Saylor again posted Bitcoin Tracker-related information on X, with the caption "There's always room for more orange." Based on previous patterns, Strategy typically discloses Bitcoin holdings change information the day after such posts.
Investment and financing news
Sui Foundation invests $30 million in DATA Network, protocol to migrate to Sui blockchain
According to The Block, Sui Foundation invested $30 million in AI data protocol DATA Network (formerly Story Protocol). The protocol will migrate to the Sui blockchain as a native protocol, its independent chain will be discontinued, and existing DATA tokens will migrate to the Sui network at a 1:1 ratio. Before the migration is completed, the existing DATA Network will continue to operate.
Views & Analysis
ZachXBT accuses XRPL of paying only $250,000 bounty to white hat hacker who discovered "infinite XRP supply vulnerability"
On-chain detective ZachXBT accused the XRP Ledger Foundation of paying only a $250,000 bounty to the white hat hacker who discovered the severe "infinite XRP minting" vulnerability, while the foundation treasury holds billions of dollars. He believes such a low bounty encourages attackers to exploit vulnerabilities to steal hundreds of millions of dollars rather than choose to report them in good faith, causing the market to be unable to regard XRP Ledger or Ripple as legitimate institutions. The XRP Ledger Foundation previously clarified that the vulnerability did not mint additional XRP, and community consensus drove the patch fix.
Coinbase CEO: After fine-tuning Qwen3.5-9B model, fraud prevention performance is lower-cost and faster
Coinbase CEO Brian Armstrong said that after fine-tuning the open-weight model Qwen3.5-9B with proprietary data, the company achieved better performance on fraud prevention tasks than frontier large models, at lower cost and faster speed. He believes this pattern will increasingly appear within enterprises: frontier models excel at general tasks, while specialized models for niche domains perform better. Coinbase is simplifying the process for employees to fine-tune models, providing internal skill instructions to help quickly start training, and expects some backend services could be completely replaced by such architectures.
Analysis: ETH forms "Adam and Eve bottom" pattern, if it breaks above $2,520, it could target $2,640
Crypto analyst Ali pointed out that Ethereum (ETH) appears to be forming an "Adam and Eve bottom" pattern on the 10-minute chart. The key resistance level is the neckline near $2,520. If ETH continues to close above this level, it could confirm a bullish breakout and open upside space, with the target area focused on $2,640.
Trader Killa: BTC may surge before US midterm elections, target focus on $95,000 range
Trader Killa said the ideal scenario is for BTC to continue rising and break above its previous high before the US midterm elections, after which a correction may occur, but a new cycle low is not expected. If BTC falls before the election, the market is more likely to rebound after the election, with the target focused near $95,000. He cited historical data saying that in 3 of the past 4 US midterm elections, weaker market conditions appeared 1 to 2 months after the election, a probability of about 75%, so the market may be more inclined toward significant risk release after the election. He currently still holds a previously established 10x BTC long position, as well as long positions near $62,600 and $76,400, all maintained at full position.
Microsoft CEO: In the era of superintelligence, we cannot rely on AI "black boxes"; external control and audit systems must be established
Microsoft CEO Satya Nadella said that as superintelligent systems rapidly advance in capability, the industry needs to rebuild the AI trust architecture and cannot leave responsibility for AI execution behavior to model providers. Current frontier AI models cannot attribute outputs to specific training data or weight configurations, and enterprises are allowing complex AI agents to access sensitive data and giving them critical task execution capabilities, so controllable systems must be built that can observe behavior, test boundaries, and restrict actions at any time. He proposed governance principles: model diversity, comprehensive observability, continuous verification capability, independent control and auditing, risk isolation mechanisms, and incident disclosure mechanisms. He emphasized that chain-of-thought (CoT) transparency is the foundation of governance but not sufficient, and that the most trustworthy superintelligent systems in the future should be those that can operate safely even if the model cannot be fully trusted.
Analyst: Bitcoin may need to break above $84,000-$85,000 to determine the next move
Crypto analyst Darkfost said that when Bitcoin reached $83,000, about 53% of capital cost was above that price, and current buyers' holding costs are higher than those of more than half of market participants. The $84,000 to $85,000 range is Bitcoin's largest chip distribution area and an important resistance level that must be broken for subsequent movement; if the price falls back, the $79,000 to $77,000 range may become a potential support area.
Ledger supply chain risk expanding? Analyst discloses more than 20 distributors may pose potential risks
Crypto analyst Darkfost said that after the Ledger distributor CryptoBilis hardware wallet security incident was exposed, community discussions surfaced other distributors that may involve risk, including some Lazada platform merchants. He compiled a list of "potentially risky Ledger distributors" involving more than 20 suppliers, but emphasized that the current judgment is based only on speculation about supply chain connections, not confirmed facts. He suggested that users who have purchased Ledger hardware wallets from related distributors in the past 6 months consider migrating assets to new secure devices before investigation results are clear, and refer to the detection guide published by security researcher MagicalTux to inspect their devices themselves.
Important Data
F2Pool co-founder Wang Chun deposits $5.52 million worth of ETH to Binance
According to Onchain Lens monitoring, F2Pool co-founder Wang Chun transferred 2,160 ETH (worth $5.52 million) from F2Pool's Gnosis Safe wallet to Binance.
Three consecutive weeks of net inflows ended, Bitcoin spot ETFs saw $681 million in net outflows last weekSoSoValue data shows that in last week's trading days (October 5 to October 9, U.S. Eastern Time), spot Bitcoin ETFs saw a net outflow of $681 million, ending three consecutive weeks of net inflows. The largest net outflow was Fidelity FBTC, with a weekly net outflow of $380 million and total historical net inflows of $10.520 billion; followed by Ark & 21 Shares ARKB, with a net outflow of $207 million and total historical net inflows of $1.190 billion. The largest net inflow was Morgan Stanley MSBT, with a weekly net inflow of $7.8413 million. As of press time, the total net asset value of spot Bitcoin ETFs was $105.840 billion, the net asset ratio was 6.38%, and cumulative historical net inflows were $57.110 billion.
Spot Ethereum ETFs saw a net outflow of $542 million last week, with BlackRock ETHA leading with a net outflow of $477 million
SoSoValue data shows that in last week's trading days (October 5 to October 9, U.S. Eastern Time), spot Ethereum ETFs saw a net outflow of $542 million. The largest net outflow was BlackRock ETHA, with a weekly net outflow of $477 million and total historical net inflows of $12.790 billion; followed by Grayscale ETHE, with a net outflow of $31.8918 million and total historical net outflows of $5.470 billion. The largest net inflow was Morgan Stanley MSSE, with a weekly net inflow of $1.3209 million. As of press time, the total net asset value of spot Ethereum ETFs was $15.710 billion, the net asset ratio was 5.18%, and cumulative historical net inflows were $13.260 billion.
Two Ethereum Foundation-linked wallets transferred 4,393 ETH to Kraken in 4 hours, worth about $11.13 million
According to Ember monitoring, two Ethereum Foundation-linked wallets transferred 4,393 ETH (about $11.13 million) to the exchange Kraken 4 hours ago. The wallet that sent out ETH today received 59,751 ETH from an Ethereum Foundation wallet 10 years ago, of which 49,751 ETH were gradually transferred to Kraken over the past 10 years at an average price of about $658.
Trader mk4's long position in NEAR has unrealized gains exceeding $20 million
According to Ember monitoring, as NEAR rose 145% in one month, trader mk4's largest NEAR long position on Hyperliquid has unrealized gains exceeding $20 million. The trader opened a long position of 5.76 million NEAR at an average price of $2.35 in September, and NEAR is currently priced at $5.85.
South Korea's KOSPI index extends decline to 3%, SK Hynix falls more than 4%
South Korea's KOSPI index extended its decline to 3%, now at 6,427.08 points. SK Hynix fell more than 4%, and Samsung Electronics fell nearly 4%.
Data: CRO, ARB, and other tokens will see large unlocks next week, with CRO unlock worth about $69.5 million
Token Unlocks data shows large token unlocks next week: CRO will unlock about 1.17 billion tokens on October 17 (about $69.5 million); ARB will unlock about 92.65 million tokens on October 16 (about $18.4 million); STRK will unlock about 127 million tokens on October 15 (about $13.9 million); DBR will unlock about 618 million tokens on October 17 (about $12 million); APT will unlock about 11.31 million tokens on October 12 (about $9.5 million); SEI will unlock about 55.56 million tokens on October 15 (about $3.7 million). All times are Beijing time.
South Korea's KOSPI index falls 1%, SK Hynix drops more than 2%
South Korea's KOSPI index extended its decline to 1%, at 6,557.84 points. SK Hynix fell more than 2%, and Samsung Electronics fell nearly 1%.
Ledger incident continues to unfold: attacker has transferred $7.45 million in ETH to Tornado Cash
According to on-chain detective Specter, the attacker address related to the CryptoBilis Ledger hardware wallet incident deposited 2,990.3 ETH, worth about $7.45 million, into Tornado Cash between October 9 and 10. The attacker had previously withdrawn funds in a dispersed manner to 14 addresses, then used NEAR Intents to bridge and convert the funds to the ZEC network for further privacy processing, with signs of address linkage during the process, and some withdrawal transactions reused previous deposit wallet addresses. The related funds have now been transferred and hidden through multiple on-chain paths.