In this week’s edition of the weekly recap, Binance explained how attackers stole $6.34 billion, Democrats discussed a different approach to U.S. crypto regulation, and Bitcoin funds returned to outflows. The Nov. 1–7 news cycle also brought progress on retirement-plan rules, a proposed tZERO listing and blockchain upgrades.
Summary
- Binance traced its breach to compromised employee devices and said customer losses would be covered.
- Democrats discussed expanding SEC oversight and reviving investor protections in a crypto market structure proposal.
- U.S. spot Bitcoin ETFs recorded $430.2 million in net withdrawals during the Nov. 5 session.
- A Labor Department rule covering alternative retirement investments reached the White House for final review.
- tZERO announced a proposed SPAC merger carrying a $350 million pre-money equity valuation.
Binance explains its $6.34 billion breach
- Binance’s Nov. 3 incident report traced the attack through fake recruitment interviews, compromised developer software and an internal AI tool. Stolen deployment credentials eventually gave attackers access to wallet signing operations during the Oct. 29 theft.
- Bitcoin withdrawals reopened on Nov. 1 as the exchange began restoring services. In its subsequent account, Binance said it had replenished 98% of affected token assets and was purchasing the remaining, less liquid cryptocurrencies. CEO Richard Teng said customers would bear no losses, while approximately $2.85 billion had been frozen or intercepted.
Democrats revisit SEC oversight
- House Democrats began discussing legislation that would give the SEC greater oversight and limit the CFTC’s role, according to reporting by Eleanor Terrett. Discussions followed the midterm elections and concerned a proposal for the next Congress.
- The approach draws on Representative Maxine Waters’ earlier investor protection package, including bankruptcy-remote custody, withdrawal safeguards and monthly reserve reporting. Restrictions on federal officials’ crypto interests were also under discussion. These remained legislative ideas rather than newly adopted requirements.
Bitcoin ETF withdrawals resume
- U.S. spot Bitcoin ETFs lost $430.2 million on Nov. 5, following $74.6 million in net inflows a day earlier, according to Farside Investors’ figures. The first four November sessions produced combined net outflows of $869.8 million.
- Fidelity’s FBTC swung from a $236.7 million inflow to a $199.9 million outflow across those two sessions. BlackRock’s IBIT recorded withdrawals on both days, although its daily outflow narrowed from $201.2 million to $105 million.
Crypto retirement rule reaches White House
- The Labor Department’s final rule on selecting retirement-plan investments entered White House review. OIRA received it on Nov. 5, advancing a framework covering alternative assets, including digital assets.
- Review remained pending. Submission did not mean crypto had been added automatically to 401(k) plans or that employers were required to offer it.
Stock perpetual futures face court challenge
- A federal judge denied an emergency halt on U.S. stock perpetual futures after the CFTC cleared the products. The challenge involves contracts at KalshiEX, Bitnomial Exchange and Coinbase Derivatives.
- Judge Valerie Caproni questioned the agency’s authority but found insufficient evidence of imminent, irreparable harm. Her preliminary assessment did not finally resolve the lawsuit.
Agencies withdraw $250 transfer proposal
- FinCEN and the Federal Reserve withdrew their proposal to lower the cross-border transfer recordkeeping and information-sharing threshold from $3,000 to $250.
- The withdrawal takes effect Nov. 9. Existing requirements remain in place, while the agencies left open the possibility of separate future rulemaking.
Strategy and Strive add Bitcoin
- Strategy and Strive reported Bitcoin purchases totaling approximately $75.5 million on Nov. 2. Strategy bought 811 BTC for $65.5 million, while Strive reported adding another 124 BTC for roughly $10 million.
- The purchases brought their reported holdings to 849,327 BTC and 43,124 BTC, respectively.
Circle reports $864.9 million quarterly revenue
- Circle reported quarterly growth as revenue and reserve income rose 17% to $864.9 million. Adjusted EBITDA increased 85% to $317 million.
- The figures included $182 million recognized from an ARC token presale. Reserve income declined 8%, while USDC onchain transaction volume increased 49% to $13.9 trillion.
tZERO plans $350 million SPAC merger
- tZERO agreed to merge with FG Imperii Acquisition Corp., targeting an NYSE American listing under TZRO after an expected early-2027 closing.
- The proposed $350 million valuation includes milestone-linked consideration. Potential trust proceeds of $231 million remain subject to shareholder redemptions and transaction expenses.
France removes crypto budget amendments
- France’s National Assembly rejected the revenue section of its proposed 2027 budget by 458 votes to none.
- The rejection removed crypto-to-stablecoin tax provisions and a €100,000 self-custody reporting proposal from the text heading to the Senate. Lawmakers could revisit the measures during subsequent budget deliberations.
Zcash activates faster blocks
- Zcash activated its NU7 upgrade on Nov. 6 at block 3,543,405, cutting its target block interval from 75 seconds to 25 seconds.
- The upgrade also introduced shielded transaction limits and reserved 60% of transaction fees for future miner rewards.
