Today's Highlights:
🌐Matrixport HK's virtual asset licence application was withdrawn on 12 October
🔎Coinbase joins UK and US law enforcement to combat West African fraud networks and assist in tracing illicit funds
📋Analysis: US midterm elections may reshape the regulatory landscape, with Wall Street and the crypto industry facing investigative pressure
🌐Ledger identifies malicious LTE component stealing seed phrases, suspected of causing USD 86 million in losses
🔎ENS seeks DAO approval to activate an upgraded Ethereum domain name system
📌Russia's largest bank, Sberbank, approved to conduct cryptocurrency trading
Matrixport HK's virtual asset licence application was withdrawn on 12 October
An update on the official website of the Hong Kong Securities and Futures Commission (SFC) shows that Matrixport HK's virtual asset trading platform licence application was withdrawn on 12 October. The application was submitted by Flying Hippo Technologies Limited on 26 February 2024 and has now been placed by the SFC on its list of applicants whose licence applications have been withdrawn. Matrixport stated that, in light of strategic direction considerations, the group voluntarily withdrew the virtual asset trading platform (VATP) licence application and is currently in communication with the SFC regarding another proposed licence application. This means that Flying Hippo Technologies Limited is no longer within the VATP licensing review process at this stage, and whether it can subsequently re-enter the licensing process through another entity or another application remains subject to the progress of its communications with the SFC.
Business impact
Following the withdrawal of the application, Flying Hippo Technologies Limited no longer has a pending licence application as a basis for providing virtual asset trading platform services in Hong Kong. Institutions that have contracted with it or plan to connect to its trading services need to reconfirm whether the counterparty holds a VATP licence issued by the SFC and whether the original arrangements were premised on obtaining a licence. The other proposed application referred to by Matrixport has not yet materialised; before approval, any arrangement to conduct regulated activities in the capacity of a licensed platform lacks a regulatory basis.
In practical business terms, the following can be checked in sequence:
• Confirm whether the counterparty is a licensed VATP entity.
• Verify whether the contract is premised on obtaining a licence.
• Confirm the submission and acceptance status of the new application.
Source: Wu Blockchain · 2026/10/13 14:10
Coinbase Joins UK and US Law Enforcement to Target West African Fraud Networks, Assists in Tracing Illicit Funds
Coinbase announced that, in an international joint anti-fraud operation held in London from 6 to 9 October, it worked with the UK National Crime Agency (NCA), the US Department of Justice Fraud Center Strike Force, and the Tech Against Scams coalition to target transnational fraud networks operating in West Africa. Coinbase's global intelligence team participated in tracing illicit fund flows, assisting in freezing assets involved in the cases, and sharing investigative leads in real time. The fraud methods involved include fake crypto asset investments, impersonation of law enforcement officers, and coercing victims into transferring funds through staged video-call arrest scenarios. Coinbase stated that, as crackdowns on scam compounds in Southeast Asia continue to intensify, some criminal networks are expanding into regions such as West Africa, and that it will continue to work with law enforcement agencies to trace cross-border fraud funds.
Business impact
This operation was led by UK and US law enforcement agencies, with Coinbase participating as an assisting party providing intelligence and asset freezing; the direct subjects of restraint are therefore the accounts and funds involved in the cases, rather than ordinary users of trading platforms. The platform's freezing of assets involved in the cases after receiving law enforcement leads is based on law enforcement cooperation requests rather than new regulatory rules. For crypto companies operating in the UK or the US or handling cross-border inflows and outflows, the practical impact is concentrated on cooperation with investigations, sharing of leads, and asset disposal; normal transactions of customers not involved in the cases are not restricted by this operation itself. The publicly available information does not currently state the specific scale of the frozen assets, the list of entities involved, or whether prosecution proceedings will follow; these remain to be disclosed by law enforcement agencies.
In practical business terms, the following can be checked in sequence:
• Confirm whether you have received a cooperation or lead-sharing request from the NCA or the US Department of Justice strike force.
• Verify the legal basis and contractual authorization clauses for sharing user data with law enforcement agencies.
• Review the conditions and time limits for unfreezing assets involved in the cases after freezing, and the customer notification process.
Source: Wu Blockchain · 2026/10/13 21:59
Analysis: US midterm elections may reshape the regulatory landscape; Wall Street and the crypto industry face heightened investigative pressure
On October 13 (UTC+8), PANews reported that if the Democratic Party wins a majority in the House or Senate in the US midterm elections, it may not necessarily be able to stop the Trump administration from advancing deregulatory policies for Wall Street banks, prediction markets and the crypto industry, but it would gain stronger investigative and oversight tools. If the Democratic Party controls either chamber of Congress, it would have subpoena power, larger investigative teams and the authority to require government officials and corporate executives to appear at hearings, and Wall Street financial institutions, crypto companies and relevant regulators could face more scrutiny. The report said the Trump administration has in recent years pushed to relax financial regulation and supported the development of cryptocurrencies and prediction markets, taking the view that such innovation helps economic growth; the Democratic Party has said it will investigate the business ties of Trump and his family to the crypto industry and prediction markets, and will examine whether the relevant transactions involve conflicts of interest. Crypto industry participants are particularly focused on the possibility that Representative Sean Casten may wield greater influence after the Democratic Party regains control of the House Financial Services Committee; he previously pushed to strengthen crypto regulation and opposed the industry-backed CLARITY Act. The Democratic Party is also expected to focus on issues such as bank regulatory policy, AI industry financing, data center construction and consumer financial protection. Analysts said congressional investigations could bring legal costs, management pressure and reputational risk to the companies involved.
Business impact
This report describes possible changes in congressional oversight powers that could result from the election outcome, rather than regulatory rules already in effect: if the Democratic Party wins a majority in either chamber, companies would face investigative procedures such as subpoenas, hearings and document requests, rather than new licensing or compliance obligations. Those mainly affected are institutions operating in the United States and connected to crypto, prediction markets or bank regulatory issues, especially companies whose business dealings overlap with those of the Trump family; the investigations themselves do not directly produce penalties, but they will bring legal costs, demands on management attention and reputational pressure. The election results have not yet been produced, and the scope and priorities of the investigations, and whether they lead to legislation, still depend on the voting results and subsequent political arrangements.
In practice, businesses can check the following in sequence:
• Confirm whether their own business falls within the crypto, prediction market or bank regulatory scope that the Democratic Party intends to investigate.
• Check whether there are business dealings or conflicts of interest with Trump and his family and affiliated companies that require disclosure.
• Track the specific investigative motions of Sean Casten and other lawmakers after the House Financial Services Committee changes hands.
Source: MetaEra / ME News · 2026/10/13 20:26
Ledger finds malicious LTE component stealing seed phrases, suspected cause of USD 86 million in losses
Hardware wallet manufacturer Ledger said its Donjon security team found an unauthorized hardware implant in wallets sold by Southeast Asian reseller CryptoBilis. The implant reads the 24-word seed phrase displayed on the screen during device initialization and transmits it over an LTE network through a pre-installed eSIM. Ledger said all confirmed losses so far involve devices sold through CryptoBilis, and no theft of devices from other sources has been confirmed. On-chain investigation firm Specter traced suspected stolen funds involving Ethereum, Tron and Bitcoin exceeding USD 86 million, but Ledger said the total number of affected users or the total value of losses has not yet been confirmed. Ledger is reviewing reports of implants in other devices and regions, and advises CryptoBilis buyers not to operate devices that have not been initialized, while users who have already initialized their devices should immediately transfer assets to a new device.
Business impact
The core legal issue in this incident is hardware tampering in the supply chain: devices sold outside Ledger's official channels through the third-party reseller CryptoBilis were implanted with unauthorized components. Users who purchased such devices do not have a direct sales contract relationship with Ledger, and their claims pathways, liable parties, and evidentiary difficulties differ from those of purchasers through official channels. For institutions holding client assets or their own assets in self-custody wallets, the fact that the mnemonic phrase was read and transmitted externally at the initialization stage means that the integrity assumption underlying the private key generation process has been broken, and on-chain monitoring alone cannot detect the risk before assets are transferred away. At present, Ledger has not confirmed the total number of affected users or the total value of losses, and whether similar implants exist in other devices and regions is still under review; how liability will be allocated and whether recovery is possible remain undetermined.
In operational terms, the following checks may be carried out in sequence:
• Check the procurement channels for your own and client wallets to confirm whether they came from unofficial resellers such as CryptoBilis.
• If the relevant devices have already been initialized, immediately transfer assets to new devices and invalidate the original mnemonic phrases.
• Suspend operations on devices that have not been initialized and await Ledger's review conclusions on the scope of the implants.
Source: Techub News · 2026/10/13 19:55
ENS seeks DAO approval to activate upgraded Ethereum Name Service
The Ethereum Name Service (ENS) has submitted a proposal to the ENS DAO seeking approval to activate an upgraded Ethereum naming system. Under the proposal, new .eth domain registrations will be suspended for several hours during the system switchover, while existing domain holders will be able to renew their domains without migration. The proposal is currently in the DAO governance approval stage and has not yet taken effect. If approved, the upgrade will change the registration and renewal process for .eth domains; existing holders will be minimally affected, but new registrants will need to wait for the switchover to be completed.
Business impact
This ENS DAO vote directly determines whether the .eth domain registration and renewal rules will switch: once the proposal is passed, new registrations will be suspended for several hours during the switchover window, while existing domain holders will be able to renew without migration, and their legal status and holding relationships will not change as a result of the upgrade. For platforms providing .eth domain registration, resolution, or custody services, front-end registration entry points and user notifications need to be adjusted according to the effective time ultimately approved by the DAO, to avoid accepting new registration orders during the suspension period and thereby giving rise to performance disputes. The proposal is still in the approval stage, and the suspension duration and specific effective time depend on the DAO's final vote.
In operational terms, the following checks may be carried out in sequence:
• Confirm whether the proposal has been approved by ENS DAO and the final effective date.
• Verify the specific start and end dates and the duration of the new registration suspension window.
• Check whether existing domain renewals genuinely require no migration and the applicable conditions.
Source: Cointelegraph · 2026/10/13 19:11
Russia's largest bank Sberbank approved to conduct cryptocurrency trading
Sberbank, Russia's largest bank, has obtained approval to conduct cryptocurrency trading and plans to open crypto trading services to all customers starting December 1. The bank is currently testing trading of Bitcoin, Ethereum and USDT within its own application. This approval makes Sberbank a major participant in Russia's regulated crypto trading channels, but the announcement did not disclose the specific form of the approval, the applicable scope of business, or whether there are additional conditions to be met before launch.
Business impact
Following Sberbank's approval, Russian customers can buy and sell crypto assets through the country's largest bank rather than through offshore platforms, with the counterparty thereby becoming a locally regulated banking institution. For crypto companies doing business in Russia or having cooperative relationships with Sberbank, it is necessary to reassess whether their own products fall within the bank's approved scope of business, as well as the legal ownership and custody arrangements of customer funds and assets within the bank's system. The specific form of the approval and the business boundaries have not yet been made public, and related cooperation and integration arrangements still depend on subsequent regulatory rules.
In practical business terms, the following can be checked in sequence:
• Confirm which Sberbank legal entity is the approved entity.
• Verify whether the approval constitutes acceptance of an application, preliminary approval, or a formal license.
• Ascertain whether there remain any preconditions to be satisfied before the December 1 launch.
Source: CoinDesk · 2026/10/13 19:02
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.
