The Crypto Highlights of September

2 October 2023

The Biggest Crypto Heist of the Year

September witnessed the largest cryptocurrency theft since the beginning of the year. On September 23, hackers stole approximately $200 million worth of cryptocurrencies from the wallets of Mixin, a crypto firm based in Hong Kong engaged in digital asset transfers.

According to the company’s statement, the attack occurred by hacking the database of a cloud provider serving Mixin. Currently, the company is deliberating on how to handle the stolen assets and compensate users for their lost funds.

The Mixin hack stands as the biggest crypto theft this year and the tenth largest in the entire history of the crypto market.

Singapore, France and Switzerland Testing a Cross-Border Digital Currency

The central banks of Singapore, France, and Switzerland have initiated trials for a cross-border digital currency (CBDC) with support from the Bank for International Settlements (BIS).

The project, named Mariana, aims to facilitate international transfers of digital euros, Swiss francs and Singapore dollars. However, these three currencies are still hypothetical, and the financial institutions involved in the test were simulated.

Nevertheless, this marks the first extensive test of international infrastructure for state-owned digital currencies.

Ethereum ETFs Might Commence Trading Soon

Ethereum exchange-traded funds (ETFs) could enter the stock market as early as next week. This conclusion comes from Bloomberg analysts studying the activities of the US regulator SEC.

“Looking like the SEC is gonna let a bunch Ethereum futures ETFs go next week potentially,” wrote Bloomberg analyst James Seyfart on X.

As of September 27, 15 Ethereum ETFs from nine different companies were awaiting SEC approval.

Vitalik Buterin Proposes Bridging the Gap Between Regulators and Anonymity

Ethereum’s creator, Vitalik Buterin, published an academic article on September 6 proposing a mechanism capable of ensuring user anonymity while meeting the requirements of financial regulators.

Buterin’s idea involves users being able to publish evidence with zero knowledge about the origin of their funds without disclosing the entire transaction chain.

Through the use of zero-knowledge proofs and “anonymity pools,” users, according to Buterin’s proposal, can distance themselves from wallets involved in illegal activities. The feasibility of these suggestions, however, remains unclear.

Binance Exits Russia

Undoubtedly, the main news in the Russian-speaking crypto community in September was Binance’s decision to terminate services for residents of the Russian Federation.

However, the situation in practice is not as dire. Binance’s business in Russia is being handed over to CommEX, and the process of transferring assets and user accounts will take approximately a year. During this period, all of Binanc’s functionality will remain accessible to Russian users.

Furthermore, CommEX itself is likely nothing more than Binance’s intermediary company. The platform shares a similar interface, terms of service, API and also provides discounts to BNB holders.