Daniel Pye

JUST IN: 🇺🇸 US Government seizes $15 billion worth of Bitcoin from 'pig butchering' scam based in Cambodia.

The Oct 11 Crypto Crash — What Really Happened TL;DR: Roughly $60–90M of $USDe was dumped on Binance, along with $wBETH and $BNSOL, exploiting a pricing flaw that valued collateral using Binance’s own order-book data instead of external oracles. That localized depeg triggered $500M–$1B in forced liquidations, cascaded into $19B+ globally, and earned the attackers about $192M via $1.1B in BTC/ETH shorts opened on Hyperliquid hours earlier, but minutes before Trump tariff announcement. It wasn’t a USDe failure!! It was Binance’s design flaw, timed with macro panic (Trump’s tariffs) for cover. What looked like chaos was actually a coordinated exploitation of Binance’s internal pricing system, amplified by a macro shock and systemic leverage. 1️⃣ The Setup Binance’s Unified Account let traders use assets like USDe, wBETH, and BNSOL as collateral. Instead of oracle or redemption prices, Binance valued these using its own spot market - a major vulnerability. On Oct 6, Binance announced a fix to move to oracle-based pricing, but rollout wasn’t until Oct 14, leaving an 8-day window. 2️⃣ The Exploit During that window, sophisticated actors manipulated Binance’s order books, dumping ~$60–90M of USDe, driving it to $0.65 on Binance only (still ~$1 elsewhere). Because the Unified Account marked collateral to internal prices, this instantly wiped margin value and triggered $500M–$1B in forced liquidations. Then, Trump’s 100% China tariff headline hit, magnifying panic and liquidity stress. 3️⃣ The Profit Engine The same day, fresh wallets on Hyperliquid opened $1.1B in BTC/ETH shorts, funded by $110M USDC from Arbitrum-linked sources. As the Binance cascade unfolded, BTC and ETH cratered, those shorts netted $192M in profit before closing out at the bottom. Timing, precision, and funding paths all suggest coordination. 4️⃣ The Contagion Binance liquidations dumped BTC/ETH/ALTs into thin books. Other exchanges mirrored the collapse through cross-market bots. Market makers hedged across venues were forced to unwind everywhere. Result: $19B+ global liquidations, with many alts down 50–70% intraday, all triggered by <$100M of manipulated collateral. 5️⃣ Who’s at fault? Binance: design flaw + delay in oracle rollout = root cause. Exploiters: executed and timed the manipulation, profited via external shorts. Ethena (USDe): not at fault - protocol stayed 1:1 collateralized, redemptions normal, peg held everywhere else. 6️⃣ Aftermath Binance admitted “platform-related issues,” promised compensation for affected margin/futures/loan users, and rolled out minimum price floors + oracle integration. USDe remained operational, and the incident is now a case study in how exchange-side pricing errors can trigger system-wide liquidations. Bottom line: A ~$90M dump on Binance and a $1.1B leveraged short elsewhere sparked a $19B bloodbath. Not a stablecoin failure, but a masterclass in exploiting flawed collateral valuation during peak macro stress.

🧵 We’ve been building quietly. But now it’s time to open the gates. DexPal is officially coming out of stealth! The first universal rewards program and discovery tool for on-chain perpetuals. If you trade perps, you’re gonna want to see this!

What a day! 🚀 The Great Canadian Web3 Pitch Showdown brought pitches, ideas & energy. 💡🔥 20 startups. 4 jury members. 100+ attendees. 1 unforgettable room. Big thanks to our jury, sponsors & partners. 🙏 Sponsors: @PolymathNetwork @369Global @MNEE_cash @HighlineBeta @Block3Finance 🤝 Partners: @TheBitcoinBay @dmindsgbc @FemT3ch Trilemma Foundation @wlooblockchain ⚖️ Jury: @Vinnie2dotOh @JaimeLeverton @SunilSharmaCo @DanielJ_Pye

Meet the powerhouse jury. 🇨🇦 Web3 CEOs, fintech founders and top VCs. Our jury knows what it takes to scale. On May 12, they’ll spotlight the next wave of standout Canadian crypto startups.

@lookonchain HLP, more like HELP...

A massive whale with 124.6M $JELLY($4.85M) is manipulating the price of $JELLY(jellyjelly) to make Hyperliquidity Provider (HLP) face a loss of $12M! He first dumped $JELLY, crashing the price and leaving HLP with a passive short position of 398M $JELLY($15.3M). Then he bought $JELLY back, driving the price up—causing HLP to suffer a loss of nearly $12M. x.com/lookonchain/st…

@0xwasian @ben_kurrek Let’s see it @ben_kurrek🔥

@ben_kurrek @DanielJ_Pye

Thinking of building an automated portfolio balancer using NEAR’s AI Agents. It will communicate with the intents protocol and can DM you on twitter when things have rebalanced. Also considering to add a “buy the dip” agent that will look for price drops. Thoughts?

We are excited to announce that we have filed a preliminary prospectus for the world’s first Solana Staking and XRP ETFs! You can read it here: sedarplus.ca

The Crypto Renaissance has officially begun. 🚀 whitehouse.gov/presidential-a…

🚨NEW per my @FoxBusiness colleague @EdwardLawrence: The #crypto executive order has officially been signed. Here are the details: 📌The Executive Order establishes the Presidential Working Group on Digital Asset Markets to strengthen U.S. leadership in digital finance. 📌The Working Group will be tasked with developing a Federal regulatory framework governing digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. 📌The Working Group will be chaired by the White House AI & Crypto Czar @DavidSacks and include the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and the heads of other relevant departments and agencies. 📌The White House AI & Crypto Czar will engage leading experts in digital assets and digital markets to ensure that the actions of the Working Group are informed by expertise beyond the Federal Government. 📌The Executive Order directs departments and agencies with identifying and making recommendations to the Working Group on any regulations and other agency actions affecting the digital assets sector that should be rescinded or modified. 📌The Executive Order prohibits agencies from undertaking any action to establish, issue, or promote central bank digital currencies (CBDCs). 📌The Executive Order revokes the previous Administration’s Digital Assets Executive Order and the Treasury Department’s Framework for International Engagement on Digital Assets which suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance.

The Senate Banking digital asset subcommittee will: ✔️ Pass legislation promoting responsible innovation and consumer protection ✔️ Eradicate Operation Chokepoint 2.0 ✔️ Make America the bitcoin and digital asset capital of the world

One week to go! Stand with Crypto Canada is partnering with @Web3MTL in this year’s first community event on Thursday, January 30. 🇨🇦lu.ma/uubq6h0s

@circle @CumberlandSays @CantonNetwork aaaand the RWA run begins!

Circle announced today the acquisition of Hashnote and USYC Tokenized Money Market Fund. This strategic move, alongside a partnership with global trading firm DRW via @CumberlandSays and news that we’re bringing native USDC to the @CantonNetwork, is set to redefine the landscape of digital asset capital markets. circle.com/pressroom/circ… The US Yield Coin (USYC), the world’s largest Tokenized Money Market Fund (TMMF) with $1.52B deployed into USYC as of January 15, 2025, will now play a pivotal role as collateral in digital asset markets. The partnership with DRW, a major player in traditional and crypto markets via its affiliate Cumberland, is a huge unlock for supporting USDC and USYC and elevating institutional adoption and operational efficiencies in digital finance. Planned native USDC support on the Canton Network will enable private transactions and seamless integration of USDC and USYC in traditional finance (TradFi) markets, signifying a major shift towards enhancing liquidity and accessibility in the digital economy. With USYC as a key collateral product, institutional players can expect smoother operations and innovative financial solutions. We're thrilled to embark on this journey with the team from Hashnote, DRW and Cumberland, and the Canton Network to reshape the future of finance!

🌐$300M Secured. $2B Pipeline. T-RIZE Group seals a $300M deal to tokenize 960 residential units in Canada, setting the stage for its $2B global pipeline. Why does it matter? 🌐 Global liquidity for real estate ⚡ Faster, sustainable housing solutions 📊 $2B in assets incoming This isn’t just construction. It’s a blueprint for solving the housing crisis and unlocking $16T in tokenized RWAs. 📈 Read the full story: morningstar.com/news/pr-newswi… #Tokenization #TRIZE #RWA #Blockchain

AVALANCHE BREAKS OUT WITH A $250M RAISE Avalanche just pulled a $250M token raise, even though it’s sitting on $3B in AVAX. They’re not just chasing cash—this is about locking in the right partners. Big players like Galaxy Digital, Dragonfly, and Morgan Creek are in; and Avalanche9000 is dropping on December 16—slashing blockchain launch costs. Multi-chain is the name of the game, and Avalanche is stacking up wins with epic games and tokenized funds. Source: Forbes

@SenLummis The future is bright orange🍊

WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE 🇺🇸 🇺🇸 🇺🇸

@SerenaAllais @rizenet_io @chainlink @avax @base That's right, along with greater flexibility in investing. Moving RWAs on chain opens up endless opportunities for asset management. Imagine having an AI asset manager trading your personalized asset portfolio, it's right around the corner 👀

We’re excited to announce that we’re adopting @chainlink CCIP & Proof of Reserve’s (PoR) Secure Mint capability on @avax & @base. CCIP will enable cross-chain transfers of RIZE tokens, while PoR will verify that our tokenized assets and newly minted tokens are fully backed 1:1.

Tokenization platform @rizenet_io is adopting #Chainlink CCIP and Proof of Reserve's (PoR) Secure Mint capability on @avax & @base. CCIP will enable secure cross-chain transfers of RIZE tokens, while PoR will boost transparency around T-RIZE's tokenized assets & newly minted tokens.