South Korea president pushes for government-wide cybersecurity body after Binance hack
South Korean President Lee Jae-myung has called for the creation of a powerful government-level cybersecurity agency to coordinate security functions currently scattered across ministries, arguing that the existing system built around inspections and post-incident response has hit clear limits. Speaking at a cabinet meeting, Lee referenced the multibillion-dollar theft from Binance without directly naming North Korea, which the FBI has blamed for the attack and Pyongyang has denied. He also floated the idea of a cross-sector public-private task force and pressed for a strong cybersecurity "czar" to oversee currently fragmented security responsibilities.
Hong Kong SFC eyes tokenized gold ETF pilot as tokenized funds gain ground
Hong Kong's Securities and Futures Commission plans to launch an "Innovation Pathway" that aims to combine tokenized funds with digital currencies to improve liquidity and treasury management efficiency, according to Christina Wu, executive director of the regulator's investment products division. Wu revealed that a tokenized gold ETF may become the next pilot after initial tokenized money market funds began trading on licensed platforms. Hong Kong currently has 17 approved tokenized retail products spanning money market funds, gold, and ETFs with a total AUM of $1.3 billion.
Standard Chartered debuts tokenized deposits for corporate clients in Hong Kong
Standard Chartered has launched a tokenized deposit service for corporate clients in Hong Kong, its first market for the offering. The service runs on the bank's own blockchain system and Hong Kong Monetary Authority's EnsembleTX infrastructure, enabling round-the-clock real-time deposit transfers between participating banks with final settlement in central bank money. The bank has partnered with Fireblocks to connect digital asset clients, and HashKey has also onboarded. The HKMA previously said EnsembleTX now supports 24/7 interbank settlement with tokenized central bank money, with participating banks expanding to 12 and industry pioneers to 20.
Binance flows swing back to $1.6 billion net inflow as withdrawal pressure eases
Binance's 24-hour capital flow has reversed from a net outflow of roughly $7 billion at its intraday peak to a net inflow of approximately $1.6 billion, according to DeFiLlama data. Total assets on the platform stand at around $127.7 billion. The cumulative swing of more than $8.6 billion indicates stabilizing user sentiment after the exchange absorbed the financial impact of the recent theft from its own balance sheet, with deposits now exceeding withdrawals on an hourly basis.
North Korea-linked crypto thefts total $9.74 billion since 2022, Binance accounts for 65%
Twelve crypto theft incidents tied to North Korean-affiliated hackers between 2022 and 2026 involved approximately $9.74 billion, according to data compiled from TRM Labs, FBI notices, and exchange disclosures. Binance suffered the largest single loss at roughly $6.3 billion, or 65% of the total. Other major incidents include Bybit's $1.5 billion hack, Ronin/Axie Infinity at $620 million, Bitget at $388 million, DMM Bitcoin at $308 million, and WazirX at $235 million.
HSBC will establish a global AI institute in Hong Kong, expected to begin operations in early 2027, with an initial focus on AI use cases, blockchain technology, and post-quantum cryptography, according to David Liao, co-CEO of HSBC Asia and the Middle East. The bank currently has a 150-strong AI specialist team in Hong Kong and expects to double that headcount within two to three years.
Korea's president cites exchange security gaps after Binance theft, denies direct North Korea claims
Kim Yo Jong, a senior official in North Korea's Workers' Party, issued a statement denying FBI claims that North Korean-linked hackers were behind the Binance theft worth billions of dollars. She said the United States had similarly blamed Pyongyang for the 2025 Bybit exchange hack, accusing Washington of exploiting cybercrime allegations to damage North Korea's international image. The exchange of statements comes as South Korean President Lee Jae-myung pushes for a centralized cybersecurity framework in response to the escalating threat.
China's regulator warns AI investment overconcentration is squeezing traditional industries
Xiao Yuanqi, deputy head of China's National Financial Regulatory Administration, warned at the International Financial Leaders Investment Summit in Hong Kong that heavy capital inflows into tech and AI leaders have pushed up leverage and may drive overly rapid expansion. He said the overconcentration of capital is creating a crowding-out effect on traditional industries, raising their borrowing costs and financial burdens while weakening their ability to reinvest and expand production. Xiao called on policymakers to develop a policy framework ahead of the AI-driven economic transition to strengthen macroeconomic management and guard against financial risks.
Qualcomm opens AI Hub to Chinese developers for on-device generative and agentic AI
Qualcomm has opened its AI Hub to Chinese developers, providing tools to accelerate on-device generative AI and agentic AI development. The platform includes over 230 pre-optimized models, a workbench for fine-tuning on real cloud-hosted devices, sample apps, and the GenieX on-device inference framework. Chinese developers can access resources through the official website, Qualcomm's terminal cloud China device farm, and developer forums.
HKMA summit leaders forecast massive AI infrastructure spending over next decade
Speaking at the Hong Kong Monetary Authority's Global Financial Leaders Investment Summit, Morgan Stanley CEO Ted Pick projected that cumulative AI spending could reach $15 trillion over the next decade, with the largest hyperscalers potentially investing $800 billion to $1 trillion annually over the next seven to twelve years. Goldman Sachs CEO David Solomon said capital markets have ample capacity to absorb the financing demand as investors assess surging AI and compute needs. Pick likened the current stage to the third inning of a nine-inning game, while Solomon cautioned that technology supercycles rarely advance in a straight line, with capital costs — not availability — the main constraint on deal sizes.
Binance compensates hack losses with proprietary funds, no borrowing or asset sales
Binance founder CZ said the exchange covered the theft entirely from its own balance sheet, without borrowing, selling assets, or raising capital, drawing a contrast with other incidents. He said 100% of funds have been allocated, with only 5% needing conversion into smaller tokens, which requires some time. Co-CEO He Yi added that a portion of stablecoins and bitcoin still needs to be converted into affected altcoins, but the exchange has no funding gap.
SNZ Holding launches Web3 ecosystem platform BlockUnion in Hong Kong
SNZ Holding announced the launch of BlockUnion, its Web3 ecosystem platform, at the 2026 Hong Kong Digital Asset Forum, delineating a clearer division between investment and ecosystem operations. SNZ Capital will continue to focus on Web3 and frontier technology investments, while BlockUnion will concentrate on infrastructure support, ecosystem building, strategic partnerships, and developer community development. BlockUnion's priority areas include on-chain finance, decentralized agent-driven applications, and enterprise-grade smart contract solutions.
SBI Holdings invests $100 million in US digital bank Erebor Bank
Japanese financial giant SBI Holdings will invest $100 million in Erebor Bank through its US subsidiary SBI Holdings USA as it deepens its presence in next-generation digital banking. Erebor primarily serves defense tech, AI, energy, robotics, and advanced manufacturing companies, supporting stablecoin deposits and withdrawals as well as blockchain-based round-the-clock settlement. SBI said the investment aims to strengthen its US business base and will explore broader cooperation opportunities with Erebor in the future.
Binance reportedly raises rebate incentives for smaller market makers to shore up liquidity
After the $6.3 billion theft, Binance reached out to smaller market makers to boost their rebate incentives across spot and derivatives markets, according to Bloomberg sources. During a one-week promotion, tier-two and tier-three market makers will receive the same rebate rates as the highest tier-four providers, aiming to encourage smaller liquidity providers to keep quoting and maintain deeper order books. The exchange said it is taking steps to protect its "core strength: liquidity."
Crypto.com to shut Hong Kong consumer app in February 2027
Crypto.com will close its consumer app in Hong Kong on February 1, 2027, with affected users receiving advance notice and assistance to withdraw funds in an orderly manner. A company spokesperson said the move optimizes global operations by directing resources to markets where long-term opportunities are more sustainable. The shutdown does not affect the exchange's application for a Hong Kong virtual asset trading platform license through Foris DAX HK Limited, which targets an institutional-focused Crypto.com Exchange and remains pending approval before the SFC.
TokenInsight: Q3 crypto exchange volume fell 27.5% as Binance and OKX held top spots
Quarterly trading volume across major crypto exchanges fell 27.5% sequentially to $12 trillion in the third quarter, marking a third consecutive quarterly decline, according to TokenInsight. Spot trading volume dropped 55% to $2 trillion, while derivatives trading declined 17% to $10 trillion, representing 83% of total volume. Binance led with a 34.51% share of total volume, followed by OKX at 14.41%.
DeepSeek launches Creator Mode for its Harness agent tool
DeepSeek has unveiled Creator Mode for its Harness open-source agent tool, enabling users to turn ideas into directly usable plugins. Official demonstrations include workspace design, sandbox gaming, and 3D LLM visualization tools. The move aims to strengthen DeepSeek's AI agent product lineup, with the company having already optimized its V4.1-Flash model for Harness and posted a demonstration video on Chinese video platform Bilibili.
Tron overtakes Ethereum as top USDT chain with $92.35 billion in circulation
Tron's USDT circulating supply reached $92.35 billion at the end of the third quarter, surpassing Ethereum's $86.69 billion, according to Onchain Lens monitoring. Tron has maintained the lead since July 23 and currently holds $94.25 billion in circulating USDT, underscoring its dominance as the preferred network for stablecoin transfers in Asian and emerging markets.
Stablecoin market cap sheds $6.9 billion amid month-long outflow streak
Total stablecoin market capitalization has declined for more than a month, falling from $270.3 billion on October 1 to $263.4 billion, according to CryptoQuant analyst CW8900. The $6.9 billion in net outflows over the past month coincides with a bearish phase for bitcoin, which the analyst notes typically follows stablecoin liquidity contractions. A recovery would require stablecoins to return to the market, with a swing to net inflows likely to support a rebound.
Crypto market slides as AI sector drops nearly 5%, BTC briefly falls below $77,000
Crypto markets traded lower across the board, with the AI sector falling 4.71% over 24 hours as Akedo declined 33.19%, Venice Token dropped 4.81%, and Quack AI fell 9.04%, according to SoSoValue data. Bitcoin briefly broke below $77,000, down 1.68%, while Ethereum slipped 1.44% below $2,300. The broad pullback came after sharp losses in tech stocks and continued pressure from the Binance security incident.
Arthur Hayes clears portfolio ahead of market drop, avoiding double-digit losses
Arthur Hayes completed a portfolio exit on October 24 that allowed him to sidestep the latest market downturn triggered by weakness in US equities, according to on-chain analyst Ai Yi. During the subsequent decline, ENA fell 13.77%, ETHFI dropped 11.87%, ETH slid 4.96%, and UNI dipped 0.28%. Hayes separately noted that dollar liquidity is rebuilding and expects bitcoin to remain weak until the Federal Reserve or banks expand their balance sheets.
Wintermute flags $101 million short position on Hyperliquid, sees Binance event shaping market
Market maker Wintermute holds a $101.33 million short position on Hyperliquid with an unrealized profit of $3.35 million, according to Onchain Lens monitoring. In its latest market report, Wintermute said last week's market direction was driven primarily by the Binance hack rather than Fed or PCE data, with liquidations totaling $1.5 billion, of which approximately 85% were long positions. The firm sees bitcoin's 50-week moving average around $76,800 as the next key support level.
Binance CZ urges calm as exchange reopens withdrawals on additional networks
Binance has reopened withdrawals for additional assets on the ETH and SOL networks as part of its phased recovery following the security incident. The exchange said withdrawal restoration will proceed gradually with strict security checks, while deposits remain open throughout. Binance reiterated that it will absorb the financial impact of the stolen funds and will not pass losses to users.
A-share tech gauge plunges as investor concerns over AI capex concentration rise
China's STAR 50 technology index tumbled 3.81% as computing power hardware stocks weakened across the board, with turnover across Shanghai and Shenzhen reaching 1.7 trillion yuan — a contraction of 80.3 billion yuan from the previous session. More than 3,300 stocks declined. Several broad-based ETFs saw record turnover exceeding 10 billion yuan each in a single day for the first time since the September 2024 rally.
On-chain sleuth links XPL flash crash to repeat manipulation team with cross-chain fund flows
TradingBeats released a cross-month, multi-address tracking analysis identifying overlapping capital trails between the April XPL flash crash network and traders liquidated on November 1. The team said approximately 200,000 USDT from the April operation flowed through multiple hops and centralized exchanges into addresses on the November 1 liquidation list. The analysis suggests the group exhibits a pattern of executing one round of manipulation before quickly replicating the same playbook on another token.
Synthetix governance recovers stolen SNX tokens from Mercado Bitcoin hacker wallets
Synthetix governance has transferred 428,000 SNX tokens worth approximately $76,000 from wallets linked to the Mercado Bitcoin hacker into the Synthetix Protocol DAO address, according to on-chain analyst Emmett Gallic. The move represents a coordinated effort by protocol governance to claw back stolen assets following the Brazilian exchange's security breach.
Liquid Federation says network bitcoin reserves fully restored, all LBTC backed 1:1
Liquid Federation announced that network bitcoin reserves have been fully restored, with all LBTC once again backed 1:1 by bitcoin. The federation said reserves are independently verifiable, with node operators able to verify proof of reserves directly and monitor balance and network activity through a public dashboard. Moving forward, Liquid plans to modernize governance structures, clarify responsibilities and oversight, and implement additional technical and operational safeguards.
Binance normalization underway with hourly deposits exceeding withdrawals
Binance reported that hourly deposits surpassed withdrawals as of 11:00 Beijing time, reflecting improving user activity and stabilizing capital flows. The update came as the exchange reopened withdrawals on additional networks and assets, with total platform assets standing at approximately $127.7 billion. The reversal from the earlier intraday net outflow peak of $7 billion signals a gradual normalization of user behavior.
Tether CEO: Company holds 150,000 bitcoin with over 730 million global users
Tether CEO Paolo Ardoino disclosed at the Plan B Forum in Lugano that the company holds approximately 150,000 bitcoins and has surpassed 730 million global users, adding roughly 30 million new wallets each quarter. He also outlined the company's open-source infrastructure initiatives spanning energy, communications, and AI, including solar and battery kiosks in Africa that number about 5,000 and serve 2 million users.
China gold and silver slide as spot gold breaks below $3,900
Spot gold dropped below the $3,900 per ounce level, trading at $3,899.78, down 1.18% on the day, while silver fell below $50 to $49.991, down 1.26%. The moves came amid broader risk-off sentiment in global markets, with crypto assets and technology stocks also under pressure.
A whale liquidates $8.18 million in BTC and ETH during morning sell-off
Address 0x3d1...f66bC redeemed assets from Compound and dumped 1,470 ETH worth $3.31 million along with 63.46 WBTC and cbBTC worth $4.868 million on-chain during the morning decline, according to on-chain analyst Ai Yi. The address had been dormant for 22 days before the liquidation event.
Akash Network approves migration to Solana within 24 months
Akash Network will migrate its blockchain infrastructure to Solana within 24 months after approximately 97% of voting token holders approved the proposal. Akash Marketplace, AkashML, and Akash Homenode will launch natively on Solana, replacing the Cosmos-based chain. Existing AKT holders can convert tokens 1:1 to SPL AKT via a dedicated portal, with the protocol citing Solana's low transaction costs, strong liquidity, and large user base as key drivers.
NEAR governance approves reduction in maximum annual issuance to 1.6%
NEAR Protocol's House of Stake governance body has voted to lower the maximum annual issuance rate from 2.5% to 1.6%, implemented in phases over 24 months. The reduction will follow a published epoch-by-epoch schedule with a 90-day grace period after approval and quarterly reporting to track actual issuance against the plan.
Kamino CEO ties team token unlocks to FDV milestones, hints at possible buyback
Solana lending protocol Kamino's CEO Michael Weisz said in an open letter that the majority of his KMNO allocation will only unlock when the token's fully diluted valuation reaches incremental milestones between $1 billion and $10 billion and sustains those levels. The team will adopt the same arrangement, with no separate equity allocation or additional token issuance. The Kamino Foundation will commit at least $20 million to development over the next 24 months and may support KMNO through buyback-and-burn as the ecosystem scales.
Extended unveils XTEN tokenomics with 30% community airdrop, full unlock at TGE
Extended, an on-chain perpetual exchange, detailed tokenomics for its XTEN token with a fixed supply of 1 billion. Community airdrop accounts for 300 million tokens, or 30%, fully unlocked at TGE to reward Extended Points program participants. The ecosystem fund totals 200 million tokens, while founding team and investors hold 500 million with a 12-month cliff followed by linear vesting over 13 to 48 months for the team and staged investor unlocks starting at month 12.
Solflare wallet enters heightened security alert, restricting infrastructure access
Solflare co-founder Vidor said the Solana wallet has entered a heightened security alert state in the wake of recent industry incidents. Access to infrastructure and code has been closed, all changes require multiple approvals, and no new content is being permitted. Vidor acknowledged the measures will slow development but said the trade-off is acceptable given the security environment.
South Korea's Lee Jae-myung says existing response framework shows clear limits
President Lee Jae-myung told a cabinet meeting that the current security regime — centered on inspections and after-the-fact response — has reached its practical limits. He pushed for a preventive system to protect public services and critical infrastructure, citing the Binance theft as evidence of the evolving threat landscape. Lee called for the creation of a strong cybersecurity agency and a public-private task force to coordinate currently dispersed security functions.
China's A-share market sees four broad-based ETFs top 100 billion yuan in turnover on same day
For the first time since the September 2024 rally, four broad-based ETFs across Shanghai and Shenzhen each recorded turnover exceeding 10 billion yuan in a single session, reflecting concentrated trading in index products. The STAR 50 index led declines with a 3.81% drop, while the total market turnover contracted to 1.7 trillion yuan.
SK Watch: South Korea eyes centralized cyber defense after Binance theft rattles region
South Korea's push for a centralized cybersecurity body reflects growing regional anxiety over North Korea-linked exchange attacks. The president's reference to the Binance theft — without naming Pyongyang directly — highlights the delicate geopolitical balancing act in East Asia around cyber attribution. The initiative could reshape how Asian governments coordinate exchange security and incident response.
Thai and Indonesian markets reflect regional stablecoin shift to Tron
Tron's elevation to the top USDT chain carries outsized significance for Southeast Asian stablecoin users, where Tron-based USDT has become a dominant settlement rail for remittances and merchant payments. The network's $94.25 billion in circulating USDT underscores its entrenched position across Asian retail markets despite regulatory headwinds in some jurisdictions.
Binance security fallout hits Asia crypto sentiment as liquidations surge
Asian crypto markets absorbed the brunt of post-Binance-hack liquidations, with $1.5 billion in total liquidations and 85% in long positions, according to Wintermute. The firm noted that dip-buying has come predominantly from leveraged perpetual contracts rather than spot purchases or fresh capital injections, leaving the market vulnerable to further downside. Bitcoin support at $76,800 represents a critical level for near-term sentiment.
Hong Kong positioned as test bed for tokenized deposits and real-world asset innovation
Standard Chartered's tokenized deposit service and HSBC's planned AI institute reinforce Hong Kong's role as the region's most active testing ground for institutional digital asset infrastructure. With the HKMA's EnsembleTX supporting 24/7 interbank settlement and the SFC piloting tokenized gold ETFs, Hong Kong is layering together the regulatory, banking, and technology rails needed for tokenized capital markets.
DeepSeek's Creator Mode signals Chinese AI agents gaining developer traction
DeepSeek's expansion into plugin creation through Harness Creator Mode underscores the rapid product iteration among China's AI labs as they compete for developer mindshare in the agent economy. The open-source approach and Bilibili distribution strategy reflect a distinctly Chinese playbook for building AI ecosystems that contrasts with Western closed models.
Qualcomm courts Chinese developers as on-device AI battleground intensifies
Qualcomm's decision to open its AI Hub to Chinese developers highlights the strategic importance of China's hardware and software ecosystem in the on-device AI race. With over 230 pre-optimized models and cloud-hosted device farms, the platform gives Chinese developers the tools to build locally resonant AI applications while expanding Qualcomm's footprint in the world's largest smartphone market.
On-chain data shows exchanges absorbing post-hack withdrawal wave
The reversal of Binance's 24-hour capital flow from a $7 billion net outflow to a $1.6 billion net inflow suggests the worst of the post-hack liquidity stress may have passed. Analysts note that such rapid reversals often signal that panic withdrawals have exhausted themselves, though the sustainability of the recovery depends on broader market sentiment.
Regional crypto hedge funds increasingly active on Hyperliquid as Asia liquidity deepens
Wintermute's $101 million short position on Hyperliquid — alongside significant whale activity on the platform — illustrates how Asian and global market makers are deepening their footprint on decentralized perpetual venues. The shift toward on-chain derivatives trading has accelerated as traders seek alternatives to centralized exchanges following repeated security incidents.
Hong Kong's central bank summit highlights Asia's growing AI capital formation role
The HKMA summit's focus on AI infrastructure financing underscores Hong Kong's ambition to serve as a bridge between global capital and Asia's technology buildout. Morgan Stanley's projected $15 trillion in cumulative AI spending over the next decade would require capital markets to absorb unprecedented financing volumes, with Asian institutional investors expected to play an increasingly central role.
Binance market making incentives target smaller liquidity providers
Binance's decision to elevate tier-two and tier-three market makers to tier-four rebate rates for one week reflects the exchange's urgent need to restore deep order books following the security breach. The promotion aims to ensure smaller liquidity providers remain active, particularly in altcoin markets where depth can thin quickly during periods of stress.
SBI Holdings' investment in Erebor Bank marks a notable step for Japanese financial institutions exploring blockchain-based settlement and stablecoin services through regulated US banking partners. The move aligns with Japan's broader push to develop digital asset infrastructure while maintaining regulatory compliance through established financial channels.
Asian developer activity grows as Qualcomm and DeepSeek expand tooling
The simultaneous expansion of developer tooling by Qualcomm in on-device AI and DeepSeek in agent creation highlights the increasing centrality of Asian developers to global AI and Web3 ecosystems. Both platforms offer open access models designed to lower barriers for builders across China and Southeast Asia, potentially accelerating adoption across the region.
Korean and Japanese exchanges maintain normal operations as regional security review broadens
South Korea's proposal for a centralized cybersecurity body could lead to enhanced oversight of domestic exchanges and cross-border coordination with Japan's FSA. The initiative signals that Asian regulators are treating exchange security breaches as national security issues rather than isolated platform failures, with potential implications for compliance requirements across the region.
