Bybit Hacker Converts Stolen Funds to DAI Through Decentralized Exchanges

The Bybit hacker has converted $3.64 million in stolen Ether into DAI through decentralized exchanges, exploiting the stablecoin’s lack of a freeze function. The funds have been split across multiple addresses, with some deposited into the non-KYC exchange eXch, which refuses to freeze the hacked assets. Investigators link the hack to the North Korean Lazarus group, with allegations that eXch may have laundered around $30 million for the attackers.

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USDC Sees Rapid Growth Amid EU Regulations and Solana Expansion

USD Coin (USDC) has emerged as the fastest-growing stablecoin, expanding its supply by $959.4M in the past month, driven by compliance with EU regulations and increasing demand in European markets. The Solana network significantly contributes to this growth, with USDC dominance reaching nearly 75% and over 3.25M users engaging in various transactions. As USDC aims to become a leading payment and trading tool, its supply recovery signals potential for new all-time highs in the stablecoin economy.

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dTRINITY Launches Innovative Subsidized Lending Protocol on Fraxtal Layer-Two

dTRINITY has launched its subsidized lending protocol on the Fraxtal layer-two network, aiming to reduce borrowing costs and enhance yields for stablecoin users. The protocol utilizes dUSD, a stablecoin backed by an on-chain reserve, to provide interest rebates for borrowers, potentially leading to negative interest rates. With strategic partnerships and plans for expansion to Ethereum and other blockchains, dTRINITY seeks to optimize liquidity and user incentives in the DeFi space.

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Insights on Solana’s Future and Market Dynamics from Industry Leaders

Anatoly Yakovenko, co-founder of Solana, emphasizes that “execution is the only moat” in the competitive blockchain landscape, advocating for a focus on hiring tech-savvy individuals to drive rapid feature development. Discussions also highlight the complexities of market dynamics, the impact of SOL’s inflation on stakers versus non-stakers, and the need for new market categories rather than direct competition among blockchains. Rune Christensen expresses skepticism about the viability of futarchy in DAO governance, suggesting that effective decision-making requires knowledgeable leadership.

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Institutional Investors Boost Ethereum Staking Interest and Portfolio Allocations

Institutional interest in Ethereum staking is surging, with nearly 70% of investors participating, and 22% allocating over 60% of their portfolios to ETH or staked ETH. A significant portion, 55.3%, expressed interest in restaking, while 74.4% are aware of the associated risks. As ETH trades at $2,628, analysts suggest this strong institutional engagement could drive prices above the all-time high of $4,092.

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Wrapped Bitcoin Shifts to Multi-Jurisdiction Custody Amid Community Concerns

Wrapped Bitcoin (WBTC) has transitioned to a multi-jurisdiction custody arrangement involving Singapore, Hong Kong, and the U.S., managed by BitGo and BiT Global. This new structure employs a multisignature agreement for enhanced security, ensuring no single entity controls the assets.Despite the operational changes, concerns arose regarding Justin Sun’s involvement, leading the Sky community to initially vote to remove WBTC as a collateral asset. However, following reassurances from BitGo co-founder Mike Belshe, the community is reconsidering this decision.

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Sky Reconsiders Offboarding Wrapped Bitcoin After BitGo’s New Commitments

Sky is reconsidering its plan to offboard Wrapped Bitcoin (WBTC) as collateral after receiving new recommendations from BA Labs, following discussions with BitGo’s CEO. The proposal to pause offboarding comes as WBTC exposure decreases to $170 million, with BitGo committing to provide 60 days’ notice before any changes to WBTC custody. An executive vote on the recommendations is set for October 3.

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