Crypto Weekly: SBI Hack, Vanguard ETFs, Starknet Staking

The cryptocurrency sector faced significant security challenges this week as SBI Crypto, a subsidiary of Japan’s SBI Group, suffered a major breach resulting in the loss of $21 million from its crypto mining pool. The hack, attributed to North Korean hackers, was discovered by on-chain investigator ZachXBT who identified suspicious outflows from the mining operation. This incident highlights the persistent security vulnerabilities facing crypto infrastructure despite growing institutional participation.

Meanwhile, regulatory developments continue to shape the industry’s trajectory. The United States Securities and Exchange Commission (SEC) is actively reviewing proposals to allow blockchain-based versions of publicly traded stocks on approved cryptocurrency exchanges. Major platforms including Nasdaq, Robinhood, Coinbase, and Kraken are either seeking regulatory approval or already testing tokenized stock products, signaling a potential convergence between traditional finance and digital asset markets.

In a significant policy shift, Vanguard, the world’s second-largest asset manager overseeing over $11 trillion in funds, is considering offering customers crypto ETFs on its platform. This represents a notable departure from the firm’s previously cautious stance toward Bitcoin and digital assets, potentially opening cryptocurrency exposure to millions of traditional investors who use Vanguard’s platform for retirement and investment accounts.

The institutional momentum extends to derivatives markets as well. CME Group announced plans to launch 24/7 trading for cryptocurrency futures and options in 2026, pending regulatory approval. The move would make CME’s regulated crypto offerings ‘always on,’ matching the non-stop nature of cryptocurrency markets and providing institutional traders with continuous access to hedging and speculation tools.

Tether, the company behind the USDT stablecoin, demonstrated continued confidence in Bitcoin by purchasing 8,888 BTC worth over $1 billion on September 30. This marks the company’s second major Bitcoin acquisition for 2025 following a similar purchase on March 31, reflecting institutional accumulation of the digital asset despite market volatility.

DeFi Layer2 network Starknet announced several significant initiatives this week, including the launch of Bitcoin staking capabilities and a 100 million STRK incentive program. The platform also introduced an institutional-grade BTC yield product, expanding the utility of Bitcoin beyond simple holding and creating new earning opportunities for cryptocurrency investors.

The funding landscape remained robust with multiple major capital raises. Kraken completed a $500 million funding round at a $15 billion valuation, amid reports that the exchange is preparing for an initial public offering (IPO). Simultaneously, Andre Cronje’s Flying Tulip, a full-stack on-chain exchange, announced a $200 million fundraise through a private funding round, with plans to open an on-chain public sale of the FT token at the same valuation.

Ecosystem development continued with Sui Group Holdings partnering with Ethena Labs and the Suo Foundation to launch two native stablecoins, aiming to expand the Sui ecosystem’s liquidity and utility. Meanwhile, Web3 dYdX partnered with Pocket Pro Bot to create a new Telegram trading bot designed to address lone wolves and optimized for social trading, reflecting the ongoing innovation in user experience and accessibility.