PA Daily | Major encryption VCs and exchanges donate to support Hong Kong; Qian Zhimin actually purchased 194,000 BTC, of which 120,000 BTC's whereabouts are unknown.

Today's news highlights:

Animoca executives: Plan to expand business focus to stablecoins, AI, and DePIN in 2026.

New clues in the Qian Zhimin case: Out of 195,000 BTC, the whereabouts of 120,000 BTC are unknown, and the individual claims to have lost the wallet password for 20,000 BTC.

Chairman of the Financial Services Commission of South Korea: Strict crackdown on cryptocurrency money laundering, travel rule regulation expanded to cover amounts below 1 million KRW.

Analyst Murphy: The BTC accumulation range is between $94,000 - $98,000 and $101,000 - $118,000.

Only 11 public chains generated over $100,000 in revenue in the past 7 days.

Macroeconomics

New clues in the Qian Zhimin case: 120,000 out of 195,000 BTC are unaccounted for, and 20,000 BTC wallet passwords are claimed to be lost.

China News Weekly published an article titled “Can the 40 billion Bitcoin taken by Qian Zhimin be returned to China?” which pointed out that the main culprit of the 60,000 Bitcoin money laundering case, Qian Zhimin, purchased a total of 194,951 Bitcoins, exceeding the 61,000 Bitcoins identified by the police. However, the court has not disclosed the situation regarding the remaining 120,000 Bitcoins, suggesting that it is highly likely that there are Bitcoins among Qian Zhimin's assets that have not yet been discovered or confiscated. Detective Joe Ryan from the London Metropolitan Police revealed that Qian Zhimin claimed the 'password' to a wallet containing 20,000 Bitcoins was “lost.” According to the latest market exchange rate, just these 'lost' Bitcoins are valued at approximately 12.5 billion.

Chairman of the Financial Services Commission of Korea: Strictly crack down on cryptocurrency money laundering, extend the regulatory scope of travel rules to below 1 million won.

According to Yonhap News Agency, on the 28th local time, the Chairman of the Financial Services Commission of South Korea, Lee Ik-yeon, stated at the 19th Anti-Money Laundering Day ceremony held by the Financial Intelligence Unit that the regulatory scope of the “Travel Rule,” known as the “real-name system for cryptocurrencies,” will be expanded to transactions below 1 million won (approximately 680 USD). He emphasized that there will be a strict crackdown on money laundering activities conducted through virtual asset transactions and prohibited virtual asset transactions with overseas exchanges that have a high risk of money laundering. In addition, a strict review mechanism will be established to comprehensively examine the criminal records, financial status, and social credit of major shareholders of virtual asset businesses.

Analysis: Upbit may be long-term infiltrated by advanced persistent threat organizations.

The security company GoPlus analyzed that the recent attack on Upbit has raised some serious issues: the hot wallet leak points to vulnerabilities in key management and security risks in the internal network. The cold wallet remains secure. The noteworthy aspects of this incident are: 1. “Anniversary Attack” - the attack date coincides with the same day as the 2019 hacker attack incident valued at $50 million (6 years ago); 2. Clever timing - the attack was launched hours after the announcement of a significant merger between Dunamu and Naver; 3. Typical characteristics of the Lazarus organization - the speed of the attack, methods used, and symbolic significance; 4. Complex money laundering methods - routed through multiple DEXs, which may carry risks of regulatory evasion (2200 SOL tokens transferred to Binance). Various signs indicate that the platform may have been under long-term infiltration by advanced persistent threat (APT) organizations. Previously, Upbit disclosed that approximately 54 billion won worth of Solana network assets were stolen; South Korean authorities suspect that the North Korean hacker organization Lazarus is behind this attack.

Bitcoin holders accuse JPMorgan of market manipulation

According to Cointelegraph, after JPMorgan submitted an application to the SEC for launching leveraged Bitcoin-linked notes, Bitcoin enthusiasts accused JPMorgan of secretly manipulating the rules to suppress Strategy and Digital Asset Trusts (DATs). Previously, it was reported that JPMorgan launched structured notes linked to BlackRock's Bitcoin ETF, matching the four-year halving cycle of BTC.

The UK proposes to introduce a “no gain, no tax” tax rule for DeFi.

According to CoinDesk, the UK government is developing a new tax framework that may benefit DeFi users. The proposal released this week shows that HM Revenue and Customs supports the principle of “no tax burden without profit or loss” for cryptocurrency lending and liquidity pool arrangements. Under the current system, when DeFi users deposit funds into a protocol, even just for profit or as collateral for a loan, it may trigger capital gains tax. The new measure will delay the tax payment until the actual economic disposal of the asset occurs. This means that users depositing cryptocurrency into lending protocols or providing tokens to automated market makers will no longer need to pay tax at the time of deposit; they will only need to pay taxes when they ultimately sell or trade the assets and realize a profit or loss. The proposal aims to align tax rules with the actual operations of DeFi, thereby reducing administrative burdens and avoiding unreasonable tax outcomes. The new principle also applies to complex multi-token arrangements; if the tokens returned to the user exceed the amount deposited, the profit portion will be taxed; if it is less than the amount deposited, it will be considered a loss. However, this model has not yet been finalized, and the government is still consulting with professionals and DeFi developers. While HM Revenue and Customs has not set a legislative timetable, it has stated it will continue to engage with the industry to assess the necessity of legislation.

Bitwise updates its spot Avalanche ETF application document, proposing to add a staking feature.

According to CoinDesk, Bitwise has updated its application documents for the spot Avalanche ETF with the U.S. Securities and Exchange Commission (SEC), changing the code for the Avalanche ETF to BAVA and setting the sponsorship fee rate at 0.34%, currently the lowest among similar products. In contrast, VanEck's Avalanche ETF fee rate is 0.40%, while Grayscale's is 0.50%. The updated S-1 application document also states that the trust will be allowed to stake up to 70% of its held AVAX on Avalanche's proof-of-stake network to earn additional tokens. However, the issuer is considering deducting 12% of the earnings as fees, with the remaining portion allocated to shareholders. As competitors have not yet launched staking operations, their fees are currently limited to sponsorship fees only. Bitwise is also offering a full fee waiver for the first month on the first $500 million in assets, aiming to position BAVA as the lowest-cost way for traditional investors to gain exposure to Avalanche and earn staking income.

opinion

Analyst Murphy: The BTC accumulation zones are between $94,000 - $98,000 and $101,000 - $118,000.

According to the BTC Cost Basis Distribution (CBD) heatmap shared by analyst Murphy, the current densest range of chips is between $94,000-$98,000 and $101,000-$118,000, corresponding to the historical fair price ($98,000) and the average cost of short-term holders ($104,000), respectively, serving as important reference lines for bullish and bearish switches. Additionally, data shows that during the period from November 21 to 23, 95,000 BTC was accumulated in the range of $84,000-$85,000, of which 550,000 were related to Coinbase's consolidated wallet, and the remaining 400,000 were genuine turnover, possibly related to whale activities. The CBD adopts an address-based calculation method, providing important references for observing the distribution of market chips.

Arthur Hayes: It is expected that price discovery for the largest tech stocks and major stock indices in the U.S. will occur in the perpetual contract market.

Arthur Hayes, co-founder of BitMEX, published an article today titled “Survival of the Fittest: How Perpetual Contracts Disrupt Traditional Finance”, which points out that traditional finance (TradFi) is desperately trying to maintain its dominant position in stock trading. It will be very interesting to observe how they respond as index perpetual contracts rapidly gain market acceptance. The first market to dominate the perpetual contract space will be offshore trading of U.S. stock price risks. U.S. stocks, as well as all stocks, will eventually be tokenized. However, index perpetual contracts can succeed without relying on stock tokenization. Stock perpetual contracts already have a mature infrastructure that can be rapidly scaled.

Alliance DAO Co-founders: L1 tokens lack a moat, betting on the application layer may be the way out.

Alliance DAO co-founder QwQiao posted on platform X, stating that he finds it hard to convince himself to hold L1 public chain tokens for the long term. The reason is not their high price-to-earnings (P/E) ratio, but rather the lack of a competitive moat for these tokens, making them prone to commoditization and difficult to capture meaningful value. Currently, cross-chain transfers are very convenient for users, and most application developers can quickly migrate applications from one chain to another. Moreover, the difficulty of launching a new chain has significantly decreased compared to the past, and the switching costs for blockchain are far lower than those for infrastructure like AWS. QwQiao also mentioned that the only way for chains to strengthen their competitive moat is through vertical development and controlling the application layer. He observed that chains like Solana, Base, and Hyperliquid have realized this and are taking proactive steps, as is the emerging enterprise-level chain Tempo. He firmly believes that the crypto industry will experience exponential growth, and betting on the application layer is the best way to express this viewpoint.

Project Updates

OKX donated 10 million Hong Kong dollars to Hong Kong to support emergency rescue and recovery efforts.

According to official news, OKX stated that it will donate 10 million Hong Kong dollars to support local emergency rescue and post-disaster recovery efforts.

YZi Labs seeks to expand the board of directors of BNB Treasury company CEA Industries to improve strategic execution and regulatory strength.

YZi Labs announced on platform X that, as an important shareholder of CEA Industries Inc. (NASDAQ: BNC), it has submitted a preliminary consent statement to the U.S. Securities and Exchange Commission (SEC) to seek written consent from shareholders to expand the size of the company's board of directors and add board seats. YZi Labs stated that despite the significant increase in the value of BNC's primary asset management fund BNB, the company's performance has been far from the results that should have been generated by that investment logic since the completion of its $500 million PIPE financing transaction this summer. It believes that BNC's poor performance is a direct result of ineffective strategic execution, insufficient investor communication, and a lack of effective regulation. YZi Labs also expressed concerns about the company's delays in submitting key SEC filings, the management of digital asset funds, the failure to timely update investors on net asset value (NAV), and investors' ongoing confusion about the company's identity, information communication, and strategic direction.

The Wormhole Foundation announced the purchase of W tokens worth $5 million.

According to official news, the Wormhole Foundation announced that it has purchased $5 million worth of W tokens and will incorporate them into its institutional balance sheet.

Balancer security incident update: DAO begins discussions on an $8 million recovery plan

According to CoinDesk, after the Balancer v2 vault was attacked due to a major vulnerability, resulting in a loss of over $110 million in funds for several weeks, the Balancer DAO has begun discussing a plan to distribute approximately $8 million of recovered assets to affected LPs. The proposed plan includes providing structured rewards for white hat hackers and compensating users based on a snapshot of pool assets at the time of the exploit, in accordance with the Safe Harbor Protocol. This protocol stipulates a maximum bounty of $1 million per incident, and white hat hackers must complete comprehensive KYC and sanctions screening. Several anonymous rescuers on Arbitrum have waived their bounty claims. The recovered tokens cover networks such as Ethereum, Polygon, Base, and Arbitrum, and liquidity providers will be compensated in proportion to the tokens they initially provided. A claims mechanism is currently under development, and if the proposal passes, users will need to accept the updated terms of use. Additionally, $1.97 million of osETH and osGNO were recovered by StakeWise and will be handled separately; $4.1 million recovered internally in collaboration with Certora does not meet the bounty conditions due to a prior agreement. This exploit was caused by a smart contract flaw, marking Balancer's third major security incident, and leading to a total locked value (TVL) plummeting from about $775 million to $258 million, while the value of BAL tokens also lost around 30%.

Bitget will donate HKD 12 million to support the rescue and reconstruction efforts for the fire in Tai Po, Hong Kong.

Bitget will donate a total of HKD 12 million to Hong Kong to support emergency rescue efforts, assistance for affected families, and post-disaster reconstruction work related to the Hongfu Garden fire. The donations will be handled and executed by three reputable local charitable organizations.

Binance donates 10 million HKD to support fire rescue and reconstruction efforts in Hong Kong.

According to an official announcement from Binance, Binance has announced a donation of 10 million Hong Kong dollars to the fire disaster area in Hong Kong's Tai Po Hong Fu Court, to support rescue and reconstruction efforts for the residents. Binance stated that it will implement the donation through relevant channels and extend condolences to the affected individuals.

Matrixport Group and its employees jointly donated HKD 3 million to support fire rescue and reconstruction in Hong Kong.

To fully support the emergency rescue and post-disaster resettlement and reconstruction efforts for the fire in Tai Po, Hong Kong, Matrixport Group donated 3 million HKD to relevant rescue agencies through its Hong Kong branch. This donation was jointly contributed by the group and its employees and will be specifically used for post-disaster rescue and reconstruction efforts.

Important data

Only 11 public chains earned more than $100,000 in the past 7 days.

According to data from crypto KOL AB Kuai.Dong citing Nansen, only 11 public chains generated over $100,000 in revenue in the past 7 days. The top 6 are Tron, Ethereum, Solana, BNB, Bitcoin, and Base. They account for over 95% of on-chain user spending fees. The remaining public chains have low activity, with some revenues nearing zero.

The “October 11 Insider Whale” has gradually closed 15,000 ETH long positions, making a profit of $846,000.

According to on-chain analyst @ai_9684xtpa's monitoring, “the insider giant whale that opened a short position on October 11 has closed its long positions.” Just now, he has closed the long positions of 15,000 ETH(4532 million USD) in batches, ultimately making a profit of 846,000 USD. In the end, this long position lasted less than four days and ended with a profit. As of now, only the BTC long position on November 8 is in a loss state, while the rest are profitable, with the total account profit reaching 101 million USD.

Data: Over the past 30 days, the inflow of BTC whale funds to Binance reached $7.5 billion, the highest level in a year.

CryptoQuant analyst maartunn stated that the latest data shows that in the past 30 days, the inflow of BTC whale funds to Binance reached $7.5 billion, the highest level in a year. The current surge in inflow is similar to the pattern observed during previous periods of high market volatility (such as March 2025), when the price of Bitcoin dropped from around $102,000 to a low of $70,000. In these situations, whales typically transfer funds to exchanges to take profits or manage risks when the market weakens. Given that the 30-day inflow indicator is still rising, the current data does not indicate that selling pressure has stabilized. For investors, this mainly means that the risk area has not been fully lifted. Large inflows to exchanges often act as a barometer of pressure: they indicate that funds are being mobilized, but do not necessarily predict when a trend reversal will occur. During previous similar periods, the market took about a month to find a local bottom.

investment and financing/acquisition

Entrée Capital raises $300 million for a new fund focused on early-stage investments in AI, cryptocurrencies, and more.

According to official news, Entrée Capital has announced the successful raising of a new fund of $300 million, which focuses on early-stage investments. This brings the total assets under management by the company to $1.5 billion. The new funds will primarily be deployed in pre-seed, seed, and Series A investment projects in Israel, the UK, Europe, and the US. The new fund will target founders in the following areas: artificial intelligence (covering native AI applications, vertical AI, and enabling infrastructure); deep tech and quantum computing (including computing technologies, science-driven systems, advanced materials, etc.); software, data, and B2B productivity enhancements; the cryptocurrency field (focusing mainly on infrastructure and security); and unconventional frontier innovations. It is reported that Entrée Capital has previously invested in Web3 domain registrar Freename, Bitcoin payment startup Breez, among others.

Animoca executives: Plan to expand business focus to stablecoins, AI, and DePIN in 2026.

According to Cointelegraph, Animoca Brands' Chief Strategy Officer Keyvan Peymani stated that the company plans to expand its business beyond the gaming sector next year, enriching its existing portfolio of about 600 companies. In an interview with CNBC on Tuesday, he elaborated: “We invest in dozens of companies each year, with a focus on areas such as artificial intelligence, DePIN, DeFi, gaming, and any emerging fields, as well as new opportunities related to stablecoins. Our core goal has always been to focus on the expansion trends within the ecosystem we are in.” He further emphasized: “As soon as interesting and exciting developments arise in fields like stablecoins and RWA, we strive to become market leaders.” At the same time, he added that Animoca is committed to being a bridge that allows the retail industry to benefit from the transformations within the Web3 ecosystem, stating, “You can expect us to continue digging deep and uncovering potential projects that we believe will disrupt the industry. Stablecoins are indeed the company's main focus recently.”

Institutional Holdings

The Bhutanese government transferred 160.35 ETH to QCP Capital, worth $483,000.

According to Onchain Lens monitoring, the Royal Government of Bhutan transferred 160.35 ETH (worth $483,000) to QCP Capital and may have deposited more funds.

Bitmine has purchased 14,618 ETH from BitGo, worth $44.34 million.

According to OnchainLens monitoring, Bitmine has purchased 14,618 ETH from BitGo, worth $44.34 million.