Bithumb's $43B Bitcoin Error Triggers Regulatory Scrutiny, Bank Reviews
South Korean exchange Bithumb mistakenly disbursed an estimated $43 billion in $BTC due to an operational error, prompting immediate regulatory attention. Authorities are now focused on recovering $9 million in $BTC still unreturned by traders, warning of potential criminal proceedings for non-compliance.
Korean banks reportedly initiated reviews of their partnerships with crypto exchanges and digital asset entities.
CZ Denies Binance Traded on BitMEX, Profited 60K BTC
Binance CEO Changpeng Zhao (CZ) definitively denied persistent rumors that Binance engaged in trading activities on BitMEX, specifically claims of profiting over 60,000 $BTC. Zhao labeled these accusations as "fake news," asserting Binance has never operated on BitMEX. The initial report of CZ's denial registered a sentiment score of -37.
CZ Alleges Paid FUD Campaign Against Binance
Following his BitMEX denial, Binance founder CZ publicly alleged a coordinated FUD campaign targeting the exchange. He named LeonidasNFT and over 101,000 $DOG token holders as participants, claiming they are involved in efforts to negatively impact Binance's perception.
CZ asserted that FUD campaign participants receive financial compensation, citing individual payments of approximately $25,000. He further claimed an undisclosed billionaire secretly finances the broader $DOG community to generate negative sentiment towards Binance.
The crypto community reacted with skepticism, with sentiment around CZ's claims dropping to 35% bullish, questioning the feasibility of "hundreds of millions" funding FUD against a single exchange. Feedback largely pushed back on the idea of a widespread, paid campaign, asserting that criticisms often arise organically rather than through financial incentives.
Warren Accuses Trump, SEC of Protecting Crypto Donors
Senator Elizabeth Warren publicly accused former President Donald Trump and the SEC of protecting crypto donors. During a congressional hearing, Warren challenged SEC Chair Paul Atkins, critiquing a pattern of dropped enforcement cases within the cryptocurrency sector.
Warren's accusation highlighted instances where the SEC allegedly issued reduced penalties or dismissed cases involving prominent crypto companies. She asserted these outcomes indicated a connection to alleged protections afforded to crypto donors by Trump and the SEC.
Specific reports detailing Senator Warren's allegations and her challenge to SEC Chair Atkins registered a sentiment score of -42.
Aave Labs Proposes DAO Revenue Shift, Seeks $50M Funding
Aave Labs introduced the "Aave Will Win" governance proposal, aiming to redirect 100% of product-generated revenue from Aave-branded products to the AAVE DAO treasury. The non-binding temperature check also includes transferring Aave branding IP to a new Foundation, seeking to enhance DAO financial autonomy and centralize treasury control.
Aave Labs also requests a $50 million upfront funding deal from the DAO for its operational needs. Submitted Thursday, the proposal drew criticism, with ACI founder Marc Zeller publicly characterizing the arrangement as "textbook extraction."
The $AAVE token saw a 1.5% increase over 24 hours and 4.0% over seven days, trading at $111.08, with mindshare up 0.2%. Despite these price movements, overall sentiment surrounding the proposal is bearish, with 38% bullish sentiment.