Binance Sees $1B+ of Outflows 🏔️

GM. This is Degen Scoop. It’s Thursday and Thanksgiving here in the United States. Let’s get into things:

• Binance Sees $1B+ of Outflows 🏔️

• KyberSwap Hacked For ~$50M 💸

• SEC Meets With Grayscale 🤝

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Binance Sees Over $1B in Outflows After CZ Steps Down

Binance, the world's largest crypto exchange, witnessed significant outflows exceeding $1B in a 24H period after its founder CZ pled guilty to violating the Bank Secrecy Act and stepped down as CEO. With CZ no longer leading Binance, it’s the end of an era.

Data from DefiLlama indicated a 7D net outflow of $703.1M. Ethereum, BNB, Avalanche, Fantom, and Polygon networks saw $605.9 million in withdrawals. As part of the plea deal, Zhao agreed to a $50M fine, and Binance will pay a $4.3B fine for charges including money laundering and sanctions violations.

Meanwhile, OKX experienced net inflows of $152M in the past 24 hours. Binance's native token BNB dropped 9.1% to $234.3. Despite regulatory challenges, Binance aims to enhance compliance and upgrade systems for its future. For those bullish on Coinbase, this certainly looks like their time to shine.

KyberSwap DEX Drained Of ~$50M From LPs

Decentralized exchange KyberSwap has suffered a nearly $50 million attack, prompting administrators to advise users to withdraw funds as a precaution. First noted by Twitter user Spreek, it was found the LPs on all chains were being drained of funds.

The attacker targeted funds mostly in Ether, WETH, and USDC across various chains, including Arbitrum, Optimism, and Ethereum. Since it is crypto, the hacker was sure to note how they completed their attack on-chain and reveled in their genius.

As mentioned earlier, on-chain analysts suggest the attack is directed at LP pools rather than being related to a bug in the DEX's approval authorization code. The attacker hinted at negotiations to begin soon, following the theft. KyberSwap's TVL has dropped to $22.23M from around $80M before the attack.

SEC Engages in Clandestine Meeting With Grayscale Over GBTC

The SEC held a meeting with Grayscale Investments to discuss the conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Grayscale's spot Bitcoin ETF application faced SEC scrutiny, leading to a court order in October 2023 to review the case. While the SEC has been anti-ETF, it’s likely we see one by January.

Grayscale argued that the SEC's rejection was "arbitrary and capricious," emphasizing its acceptance of similar Bitcoin futures ETFs. The court found the SEC lacked a coherent explanation for the disparate treatment. When Grayscale won the appeal, it was one the larger bull signals during the bear that the market was more than ready to shake off the bear.

Grayscale submitted an S-3 filing in October 2023, signaling readiness to operate as an ETF upon regulatory approval. The SEC has rejected all spot Bitcoin ETF applications to date, but analysts anticipate potential approvals by early January 2024. In just under 50 days we’ll have a definitive answer which we assume is yes.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.