🚨 Massive DOJ $BTC Seizure, Wall Street, Tokenization, Custody

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Tokenization and crypto custody made headlines today as major institutions double down on digital assets. Citi plans to launch its crypto custody service by 2026, BlackRock’s Larry Fink signals growing interest in tokenization, and the UK unveils a $19 trillion tokenization strategy to position itself as a global leader. JPMorgan confirms clients will soon trade bitcoin, Microsoft faces legal scrutiny over ChatGPT pricing tactics, and the U.S. government’s bitcoin holdings surge to $36B following a massive DOJ seizure tied to global scams.

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News Roundup

Artificial Intelligence

• Study Finds Just 250 Poisoned Documents Can Backdoor AI Models—Regardless of Size (Decrypt)

• Penn State Study Finds Rude Prompts Make AI More Accurate (Decrypt)

• Class Action Claims Microsoft Restricted AI Compute to Inflate ChatGPT Prices (Decrypt)

Decentralized, Centralized, & Traditional Finance

• Citi Targets 2026 Launch for Crypto Custody Service Amid Wall Street’s Digital Asset Push (CNBC)

• Ethereum Stablecoin Usage Hits Record High With Over 1 Million Weekly Senders (The Block)

• Kalshi and Polymarket Hit $1.4B Monthly Volume in September Reflecting Surging Mainstream Interest (The Block)

• JPMorgan Confirms Clients Will Trade Bitcoin and Crypto (Bitcoin Magazine)

• Bittensor Treasury Firm TAO Synergies Secures $11 Million in Private Financing (The Block)

• Metaplanet’s Value Falls Below Its Bitcoin Holdings as DAT Market Cools (Bloomberg)

• BlackRock CEO Larry Fink Eyes Bigger Role in Tokenization (CoinDesk)

• Circle Partners With Safe to Expand Institutional Use of USDC (The Block)

• Russia’s Central Bank Weighs Tokenized Stocks for Foreign Investors (The Defiant)

• Solmate Buys $50M in Discounted SOL from Solana Foundation as Ark Invest Takes 11.5% Stake (The Block)

• Binance Launches $400M “Together Initiative” to Restore Confidence After Market Turmoil (Binance)

• Celsius Wins $300M Settlement from Tether, Ending $4.3B Bankruptcy Dispute (The Block)

Exchange-Traded Funds

• On October 13, U.S. Ethereum spot ETFs saw total net outflows of $429 million, marking their third consecutive day of withdrawals.

• U.S. Bitcoin spot ETFs recorded $327 million in net outflows on October 13, with BlackRock’s IBIT standing out as the only fund to post an inflow amid the broader sell-off.

Infrastructure

• Tornado Cash Users Can Now Stay Anonymous Without “Helping Hackers,” Thanks to 0xBow’s New Blacklist Tool (The Block)

• Bhutan Migrates National ID System to Ethereum in World-First Government Integration (Cointelegraph)

• Pyth Network Brings Kalshi’s Regulated Prediction Market Data Onchain Across 100+ Blockchains (Business Wire)

• SEAL Org Launches Cryptographic Tool to Report Phishing Sites (The Block)

• Coinbase Exchange Schedules System Upgrade for October 25, Temporarily Halting Trading and Transfers (X)

• Tether to Launch Open-Source Wallet Development Kit With Full DeFi Support (X)

• S&P Global Brings Stablecoin Risk Ratings Onchain via Chainlink (The Block)

• Privy Experiences Outage as Monad Opens MON Airdrop Claims for 230,000 Users (The Block)

• Myriad Launches Perpetual Sentiment Markets, Turning Opinions Into a Tradeable Asset (Decrypt)

Markets

• Canaan Shares Surge 40% as Miners Turn Flared Gas Into Power for Bitcoin and AI (The Block)

• Bitcoin Drops Below $112K as ETF Outflows and Risk Aversion Deepen Market Slump (The Block)

Mining

• Bitfarms Hires Ex-Lazard Banker as CFO Amid AI Pivot and 5x Stock Surge (The Block)

Politics & Regulation

• Nigel Farage Calls for UK Crypto Reform, Pitches Himself as “Your Champion” (Decrypt)

• Kenya Passes Crypto Asset Law to Boost Investments (Reuters)

• California Protects Unclaimed Crypto From Forced Liquidation Under New Law (Decrypt)

• Binance Nears South Korea Re-Entry as FIU Reopens Gopax Acquisition Review (Newsis)

• UK Financial Watchdog Unveils $19 Trillion Tokenisation Plan to Make Britain a Global Leader (DL News)

• U.S. Seeks Record $14B Bitcoin Forfeiture From Cambodian Crypto Scammer (Decrypt)

• U.S. Indicts Chinese Tycoon Chen Zhi Over $14B Global Crypto Scam (CourtListener)

• U.S. and U.K. Unveil Largest-Ever Joint Crackdown on Southeast Asian Cybercrime Networks (U.S. Treasury)

• New GOP Bill Seeks to Make Crypto and Private Equity Permanent Options in 401(k) Plans (The Block)

Token Generation Events

• Polychain-Backed Enso Network Launches Mainnet and ENSO Token on Ethereum and BNB (The Block)

• Binance Unveils Yield Basis (YB) as 53rd HODLer Airdrop Project (Binance)

• Monad Foundation Announces MON Airdrop Ahead of Public Mainnet Launch (Monad)

Treasuries

• Antalpha Subsidiary Buys $134M in Tether Gold, Launches NASDAQ’s First XAU₮ Treasury (Globe Newswire)

Other News

• Alleged Hyperliquid Whale Denies Trump Links, Criticizes CZ, and Proposes Market Stabilization Fund (The Block)

• Nobel Laureate László Krasznahorkai’s Wartime Story Calls Crypto the “Best Proof” That Money Is Virtua (Decrypt)

• $200K BNB Donation to Malta’s Cancer Fund Sits Unclaimed—Now Worth ~$39M, Says Coinbase Exec (X)

• U.S. Government Moves $74.6M in Bitcoin to New Address, Still Holds $22B in BTC (Arkham)

• U.S. Government Bitcoin Holdings Surge to $36B After Record DOJ Forfeiture Linked to Global Scam Network (The Block)

• ZachXBT Says U.S. Seized Bitcoin Wallet Was Flagged Two Years Ago for Private Key Vulnerability (X)

Check This Out

While the dollar price of an average U.S. home has steadily risen, the bitcoin cost has fallen dramatically, reflecting bitcoin’s massive price appreciation over the past decade.

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