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Taiwan-based cryptocurrency exchange BitoPro confirmed a security breach on May 8, resulting in a loss of over $11.5 million from its hot wallets on Ethereum, Tron, Solana, and Polygon. The exploit, disclosed weeks later on June 2 via Telegram, occurred during a wallet system upgrade when an attacker targeted an old hot wallet. Despite the incident, BitoPro assured users that their funds and withdrawals remain unaffected, with sufficient reserves and operational trading functions. Onchain investigator ZachXBT reported suspicious transactions to decentralized exchanges, with funds later moved to Tornado Cash or bridged to Bitcoin via THORChain to obscure their trail. BitoPro has commissioned a third-party security firm to trace the stolen assets and plans to share new hot wallet addresses for transparency. The delay in disclosure raised concerns, especially as some users reported issues withdrawing USDT after a brief maintenance period on May 9. This incident highlights the ongoing vulnerability of cryptocurrency exchanges and DeFi protocols to hacks, with recent exploits like Cetus ($220 million) and Nervos ($3 million) underscoring the critical threat of access control failures in Web3, as noted by Hacken analysts.
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North Carolina Senator Thom Tillis has issued a stark warning that Congress must act by early 2025 to pass critical cryptocurrency legislation, or risk it being derailed by political gridlock and the 2026 midterm elections. Speaking to Bloomberg, Tillis highlighted the urgency as the government shutdown, ongoing since October 1, and disputes over funding have stalled progress on key bills like the CLARITY Act, which seeks to clarify regulatory oversight of digital assets between the CFTC and SEC. Despite bipartisan support—evidenced by the House passing the CLARITY Act and the earlier GENIUS Act becoming law—Senate discussions have faltered due to a leaked DeFi proposal and the shutdown. Recent closed-door meetings with industry leaders show renewed bipartisan efforts, with Coinbase CEO Brian Armstrong noting 90% of issues resolved and a potential Thanksgiving deadline. However, skepticism persists, with Polymarket data indicating only a 20% chance of passage by 2025. As other nations advance their digital asset frameworks, the U.S. risks falling behind if it cannot overcome political paralysis. Tillis emphasized that failure to act by February could render the current push for crypto reform effectively “dead,” underscoring the fragile momentum in Washington.
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The Morning Minute newsletter by Tyler Warner highlights significant developments in the crypto market, with a focus on the launch of the first U.S. spot Solana ETFs, including the Bitwise Spot Solana ETF (BSOL) and Grayscale Solana Trust, alongside Litecoin and Hedera ETFs. This marks Solana’s entry into the ETF space, following Bitcoin and Ethereum, with BSOL uniquely offering staking to compound yields. Trading near $200, Solana’s momentum as a top-5 crypto by market cap is bolstered by this move, enhancing liquidity and access for institutional and retirement accounts. However, the absence of BlackRock, a dominant player in BTC and ETH ETFs, suggests tempered expectations for inflows. Other news includes slight declines in major cryptos like BTC (-1% at $114,500) and ETH (-1% at $4,120), a $500M raise by MegaETH in its ICO, and political moves to ban crypto trading for U.S. elected officials. Additionally, Ethereum treasury stock ETHZ surged 14% after a $40M ETH sale, while NFT and memecoin markets showed mixed results. France’s potential Bitcoin Strategic Reserve and Mt. Gox’s delayed repayments also made headlines, reflecting the dynamic and evolving crypto landscape.
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Tesla Chair Robyn Denholm has issued a urgent plea to shareholders to approve CEO Elon Musk’s unprecedented compensation package, potentially worth $1 trillion, warning that his departure could jeopardize Tesla’s future. In a letter to shareholders, Denholm emphasized Musk’s indispensable role in driving Tesla’s success across automotive, robotics, and autonomous driving sectors, arguing that without an equitable pay-for-performance plan, Tesla risks losing his leadership and significant value. The package, linked to ambitious targets like a $8.5 trillion market cap, faces opposition from proxy advisers Glass Lewis and ISS, who deem it excessive. Musk, embroiled in a legal battle over his 2018 pay package, has criticized these advisers harshly. Despite concerns over Musk’s political engagements harming Tesla’s brand, analysts like Dan Ives predict shareholder approval at the November 5 meeting, viewing it as crucial during a critical phase for Tesla. Denholm insists Musk alone can lead Tesla to new heights in growth and societal impact.
