Today's Highlights
🌐 Qubic discloses theft of approximately 2.94 trillion QU from 1,404 wallets; network suspended
🔎 South Korea plans to convene five major exchanges on October 20 to discuss the crypto asset taxation regime
🧊 Crypto companies including Binance and Coinbase participate in West Africa anti-fraud operation, identifying USD 11 million in freezeable funds
⚖️ Turkey's Minister of Justice confirms arrest of HEX founder Richard Heart; USD 7.15 million in cash and six cold wallets seized
🔎 EU and eight countries sign additional protocol to the Warsaw Convention, aiming to strengthen virtual asset recovery
📌 French National Assembly passes stablecoin conversion taxation amendment by 38 votes to 37
Qubic discloses theft of approximately 2.94 trillion QU from 1,404 wallets; network suspended
Qubic's official announcement states that between 23:42 UTC on October 17 and 01:26 UTC on October 18, an attacker exploited insufficient randomness in the seeds of certain wallets to transfer approximately 2.94 trillion QU out of 1,404 wallets. The issue lies in the seed generation mechanism, not in the Qubic protocol itself. The scope affected by this seed security issue includes seeds created before October 18 in any browser on iPhone or iPad, seeds created before the same date in Safari on Mac, and seeds created before July 2025 through the Qubic iOS App. The network has been suspended at tick 85,371,949; 87.1% of the stolen funds remain frozen within the Qubic network, while the remaining 12.9% was transferred to MEXC, and the relevant receiving accounts have also been frozen. Qubic states that the seed security issue has been fixed in version 4.26.4, that subsequent handling will be decided by the Computor quorum in accordance with network rules, and that a full technical report will be published once the fund recovery plan is determined.
Business impact
The affected scope should be determined based on the devices, browsers and seed creation times listed in the announcement, and should not be understood merely as a risk existing only on older devices. Wallet holders need to distinguish between freezing within the Qubic network, freezing of the receiving accounts at MEXC, and the actual return of assets; a freeze does not mean that recovery or compensation has been completed. Subsequent disposition of the funds will still depend on the decision of the Computor quorum and the recovery plan, and the specific return obligations and procedures must be verified against the terms of service and applicable law. Holders may retain records of the seed generation environment and transfer records for subsequent verification of losses and assertion of claims.
Source: ChainCatcher · 2026/10/18 23:06
South Korea Plans to Convene Five Major Exchanges on October 20 to Discuss Crypto Asset Taxation Regime
The South Korean government plans to convene representatives of the five major crypto exchanges—Upbit, Bithumb, Coinone, DigitalX and Gopax—and the Digital Asset Exchange Alliance (DAXA) of Korea on October 20 to discuss the crypto asset taxation regime originally scheduled to take effect in 2027. The regime is intended to impose a 22% tax on taxable gains from crypto assets and has already been postponed three times. The industry considers that the taxation standards and tax infrastructure for transactions such as staking, airdrops and DeFi are not yet complete, and has called for another postponement. Park Min-kyu, a member of the National Assembly from the Democratic Party of Korea, has submitted an amendment bill that would postpone the taxation date to an expected 2029. The government is currently still advancing preparations on the 2027 implementation timetable and has not yet decided on another postponement.
Business impact
If the 2027 timetable remains unchanged, South Korean exchanges will need to establish traceable cost and gain records for staking, airdrop and DeFi gains; otherwise, the basis for calculating users' taxable gains will lack support, and exchanges may also bear obligations to cooperate at the reporting stage. Park Min-kyu's amendment bill is currently only a legislator's proposal and has not yet entered into force, so exchanges should not arrange system changes on the assumption of a postponement to 2029 at this time. This meeting is a policy coordination exercise and no new postponement decision has yet been formed; exchanges may first review which gain-calculation standards remain unclear among existing transaction types.
Source: Wu Blockchain · 2026/10/18 09:46
Crypto Companies Including Binance and Coinbase Participate in West Africa Anti-Fraud Operation, Identifying US$11 Million in Freezable Funds
The U.S. Department of Justice announced on October 13 the results of a week-long joint anti-fraud operation in West Africa that began on October 6; the media followed up with reports on October 18. Authorities in Ghana and Nigeria arrested 28 people in an enforcement operation targeting a West African fraud network involved in cryptocurrency investment fraud. The UK National Crime Agency (NCA) stated that the operation also identified 117 victims of human trafficking in Ghana who are awaiting repatriation to Nigeria. Private-sector partners identified more than US$11 million in funds that could be frozen. The operation was led by the NCA and brought together technology companies and law enforcement agencies with the goal of combating fraud networks targeting citizens of the United States, the United Kingdom and other countries; the Department of Justice described it as the first such joint operation focused on West Africa. Coinbase and Binance, as well as blockchain analytics firms Chainalysis, Elliptic and TRM Labs, all participated. Coinbase stated that it assisted in tracing illicit funds, supporting asset freezes and providing intelligence to investigators, identified more than 65 active fraud victims and prevented more than US$415,000 in potential losses; TRM Labs stated that it exposed a large-scale peer-to-peer money laundering network. In the Sasaabi area of Ghana, authorities arrested 19 people and seized 303 electronic devices; Nigeria arrested 9 others. Meta stated that it had removed more than 3.7 million Facebook and Instagram accounts, pages and groups, most of which targeted Americans and Britons through impersonation. Law enforcement also obtained leads on more than 30 suspected fraud centers.
Business impact
This operation was led by the UK NCA and announced by the U.S. Department of Justice, with arrests and seizures taking place in Ghana and Nigeria; it is a joint operation at the enforcement stage, and no new licensing obligations or penalties have yet been seen imposed on exchanges or on-chain analytics firms. For exchanges operating in the UK and U.S. markets, the actual constraints arise from existing anti-money laundering and suspicious transaction reporting obligations: what Coinbase and Binance undertook in this operation was fund tracing, intelligence provision and cooperation with freezes, rather than obtaining new regulatory authorization. Whether the freezable funds identified by private entities can actually be frozen, and under what procedures, depends on freezing orders and cooperation arrangements in the relevant jurisdictions; existing reports are insufficient to confirm the actual amount frozen or the specific legal procedures adopted in each jurisdiction.
Source: ChainCatcher · 2026/10/18 20:11
Turkish Minister of Justice Confirms Arrest of HEX Founder Richard Heart, Seizing US$7.15 Million in Cash and 6 Cold Wallets
Turkish Minister of Justice Akın Gürlek confirmed on October 17 that Richard Heart, founder of HEX and PulseChain, and his wife were detained in Istanbul on October 14, and that three bodyguards were also detained in the subsequent investigation. Gürlek stated that Heart was wanted under an Interpol Red Notice on suspicion of crypto asset fraud involving approximately US$1 billion. Police searched 15 addresses in Istanbul and seized US$7.15 million in cash, 6 cryptocurrency cold wallets, 28 watches, 97 pieces of jewelry, as well as firearms and electronic devices. The relevant judicial proceedings and inspection of the seized items are still ongoing.
Business impact
This is a detention and seizure announcement; suspected fraud, being under investigation and having been convicted should be stated separately. The project team needs to verify the actual controllers of fundraising proceeds and cold wallet assets, and preserve custody and transfer records. Cross-border detention, subsequent extradition and asset freezing depend on the procedures and specific decisions of the relevant jurisdictions; while Turkish judicial proceedings and inspection of seized items are still ongoing, it cannot be presumed on that basis that other jurisdictions have taken action in parallel.
Source: Wu Blockchain · 2026/10/18 08:18
EU and eight countries sign additional protocol to the Warsaw Convention, intended to strengthen virtual asset recovery
On 14 October, the Council of Europe opened the additional protocol to the Warsaw Convention for signature; the European Union, as well as Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino and the United Kingdom signed it; the media reported this development on 18 October. The protocol expressly covers virtual assets and virtual asset service providers, and strengthens cross-border cooperation on money laundering and criminal asset recovery, including urgent provisional preservation, suspension of suspicious transactions by financial intelligence units, asset recovery and management mechanisms, and arrangements for restitution to victims. Measures taken without prior notice in urgent circumstances are intended to prevent asset transfers and do not mean that final confiscation may occur without judicial proceedings. Signature does not mean entry into force: the protocol must be ratified by five parties, at least three of which are member states of the Council of Europe, before the conditions for entry into force are met; each jurisdiction must also verify the corresponding ratification and implementation status.
Business impact
Institutions providing virtual asset services across borders may use this to assess transaction records, asset controls and law enforcement cooperation arrangements, but they cannot treat the news of signature as directly creating new immediate obligations. Provisional freezing, final confiscation and restitution to victims are different procedures, and the applicable conditions, judicial decisions, notification and remedies safeguards should be verified separately. The ratification and implementation progress in each country determines when the specific rules apply, and asset disposal and cross-border distribution in individual cases must also be assessed by reference to the text of the protocol and the procedures of the relevant jurisdictions.
Source: ChainCatcher · 2026/10/18 15:47
French National Assembly passes amendment taxing stablecoin conversions by 38 votes to 37
On 16 October, during the first reading of the 2027 budget bill, the French National Assembly passed Amendment No. 3898 by 38 votes in favour and 37 against; the media reported the vote on 18 October. One hundred members participated, 75 votes were valid, and there were 25 abstentions. The amendment is intended, from 1 January 2027, to remove the tax deferral treatment for certain conversions of crypto assets into stablecoins pegged to a single fiat currency. This is only the passage of an amendment during budget deliberations and cannot yet be regarded as the completion of the legislative process and entry into force of the entire budget bill.
Business impact
The amendment concerns the timing of taxation when crypto assets are converted into stablecoins pegged to a single fiat currency. French taxpayers and relevant service providers should first verify whether the final bill retains this provision, the scope of transactions covered and the arrangements for entry into force, and then assess cost records and tax return handling. It cannot be assumed that all users are subject to the same tax outcome merely because a transaction passes through a French platform; tax residence status, the nature of the transaction and the applicable rules must still be determined separately.
Source: ChainCatcher · 2026/10/18 10:49
This daily report is compiled with AI assistance based on publicly available information and is provided for reference only. It does not constitute legal advice or recommendations.
