Bithumb Ledger Error: $132M Non-Existent $BTC Distributed
South Korean crypto exchange Bithumb mistakenly distributed 2,000 non-existent $BTC, valued at approximately $132 million, to users on Friday. The error occurred when the system incorrectly sent $BTC instead of 2,000 South Korean Won (KRW), worth about $1.3.
The distributed $BTC, while appearing on user ledgers, never existed on the blockchain. At the time, Bithumb held 175 $BTC on its own books and 42,619 $BTC in customer holdings. South Korean lawmakers characterized the event as a structural issue.
US Strategic Reserve Loses $20M Bitcoin to Contractor Theft
The US government's Strategic Reserve recently suffered a theft resulting in the loss of $20 million worth of Bitcoin ($BTC). Reports indicate the incident was facilitated through an outsourced contractor, leading to the unauthorized removal of the digital assets.
Following the disclosure, crypto expert Pierre Rochard issued a strong condemnation, publicly characterizing the theft as a "national humiliation" and likening the security breach to "losing nuclear codes."
The incident has contributed to a bearish sentiment surrounding the security of government-held digital assets. Overall sentiment for $BTC registered at 53.9% bullish, a notable decrease from its typical baseline range of 65-75%.
Vitalik Signals Ethereum Roadmap Pivot
Vitalik Buterin, Ethereum co-founder, has signaled a re-evaluation of the network's long-term development roadmap, indicating a departure from the previously emphasized 'rollup-centric' scaling strategy, a cornerstone of Ethereum's approach to enhancing transaction throughput and efficiency.
Buterin's statements imply the $ETH network may no longer necessitate 'branded shards' for achieving its scalability objectives. This change could redefine the established role and primary focus of existing and future Layer 2 solutions within the Ethereum ecosystem.
Binance ETH/USDT Sees $1.3 Billion Liquidation Amid Extreme Volatility
The $ETH/$USDT trading pair on Binance recently experienced extreme volatility, resulting in $1.3 billion in liquidations. In seconds, Ethereum's price underwent highly erratic movements, with sharp pump-and-dump cycles causing swings of approximately $100, repeating at least 40 times.
The rapid price swings, which unfolded over a concentrated period of approximately 20 minutes, triggered nearly $87 million in additional liquidations beyond the primary $1.3 billion figure. Initially, market observers noted the absence of a clear catalyst for the sudden and severe price fluctuations. However, subsequent information identified a market maker's grid strategy malfunction as the underlying cause driving these abnormal price movements. The overall market sentiment surrounding these events registered as bearish, with $ETH sentiment dropping to 45% bullish from its prior 60% average, reflecting the immediate impact of the unexpected volatility and the substantial volume of liquidations.
Trend Research Liquidates $2.6B ETH Position, Incurs $750M Loss
A major institutional player, Trend Research, recently executed a significant $ETH liquidation. Trend Research, led by Jack Yi, recently sold approximately $1.74 billion worth of $ETH to repay outstanding loans from a $2.6 billion leveraged long position established on the Aave decentralized finance protocol. This liquidation resulted in a reported $750 million loss for the firm.
The considerable transaction volume and reported loss prompted apprehension among observers regarding a potential major $ETH price crash. Online discussions flagged the activity as possible "CryptoScam" or market manipulation. Sentiment captured from posts directly addressing this event reflected a notably bearish outlook, with scores registering as low as -65.
The event also contributed to a 1.0% change in $ETH's mindshare, indicating increased public attention and discussion surrounding the asset.