Web3 Newsletter: Industry Highlights and Must-See Trends This Week

Foresight News brings you a quick overview of the hot topics and recommended content from the past two weeks:

01 Hacker Era

"How Much Trouble Can One Employee Cause? The Social Engineering Behind Binance's $6.3 Billion Security Incident"

"Crypto Storytelling II: Unveiling North Korea's Hacking Empire: For Every $100 Stolen on the Chain, $85 Flows to Pyongyang"

"French Banking Giant Robbed: Hackers Move €118 Million in 21 Hours via Crypto"

02 Web3ers

"Those Buying the Dip in Web3: Observations from the 2026 Hong Kong FinTech Week"

"No Funding, No Home Buying, No Claiming to be an Exchange: The Restraint and Expansion of Hyperliquid's Founder"

"100 Days in Airplane Mode: How Vitalik Lives?"

03 Political Trends

"Democrats Sweep Congress, Is There a Hurdle for Crypto?"

"Democrats Control Both Houses, Is a Major Heist on the Trump Family Projects Coming?"

"Hong Kong's Crypto Asset Declaration Bill Passed, Will Mainland Residents' Trading Information Be Exchanged?"

"OCC Trust Bank License, Is It Now a Hot Commodity?"

04 Industry Insights

"Circle's Q3 Report: Surprising Performance Supported by Token Sales, Core Business Slowing Down"

"Tether Data Disclosure: $1.5 Billion Profit in Q3, Total Asset Reserves Exceeding $190 Billion"

"Block's Stock Surged 15% on the First Day After Earnings Report, What Made the Market Buy In?"

01 Hacker Era

The $6.34 billion security incident at Binance was not just a simple system vulnerability but a complex social engineering attack that lasted several months. The attackers infiltrated the wallet signature service by tampering with software packages, conducting fake recruitment, and using internal AI tools to penetrate from employee devices. This serves as a warning to the crypto industry: security defenses cannot focus solely on contracts and private keys; personnel, development environments, and permission controls have become high-risk breach points.

"How Much Trouble Can One Employee Cause? The Social Engineering Behind Binance's $6.3 Billion Security Incident"

Binance referred to this process as a multi-stage attack and clearly stated that it was not an isolated system intrusion nor a simple phishing attack.
From the supply chain attack in June to the fake recruitment in September, and then utilizing internal AI tools in October to expand access, the attackers effectively completed a combined infiltration targeting personnel, devices, software, and permission systems.
This attack chain has also sounded the alarm for the entire crypto industry: when the security of a trading platform's core assets is connected to the development tools, AI applications, and internal permission systems used by employees, attackers do not necessarily need to break through the strongest door first.
Sometimes, all it takes is for one employee to download a seemingly normal software package.

In the crypto world, the Lazarus Group has launched several high-profile heists using social engineering and AI disguises, stealing billions from the Central Bank of Bangladesh to Binance and Bybit. They are not just an ordinary hacking group but a well-organized state cyber force that has turned on-chain theft into a special foreign exchange channel, continuously challenging the boundaries of global on-chain security and cross-border tracking.

"Crypto Storytelling II: Unveiling North Korea's Hacking Empire: For Every $100 Stolen on the Chain, $85 Flows to Pyongyang"

In this second installment, we get closer to the Lazarus Group. This hacker organization linked to North Korea has been implicated in attacks on Sony Pictures, the theft from the Central Bank of Bangladesh, and multiple crypto asset thefts. After Binance was attacked, they re-emerged in the public eye. Where do these people hidden behind the screens come from? How do they approach their targets, and how do they transfer the stolen assets?

Recently, the online banking service Fortuneo under the French Arkéa Bank was hacked, involving €118 million. The attackers opened accounts on exchanges using forged KYC, exchanged funds for stablecoins, and transferred them on-chain within 21 hours, laundering the money through privacy coins, cross-chain, and OTC channels. This incident highlights the shortcomings of traditional banks' risk control, crypto KYC, and on-chain tracking systems, posing severe challenges for cross-border fund regulation.

"French Banking Giant Robbed: Hackers Move €118 Million in 21 Hours via Crypto"

On November 4, Crédit Mutuel Arkéa confirmed it had suffered a cyberattack, allowing some fraudulent transactions to be executed. According to French media Le Télégramme, the amount involved exceeds $133 million (€118 million), and Crédit Mutuel Arkéa has notified the Banque de France about the incident.
Crédit Mutuel Arkéa stated that after discovering the attack, it suspended some transactions as a precaution to prevent further fraudulent fund flows, and it will resume operations as soon as final checks and security measures are completed. Reports indicate that some transfer functions within its banking app are still unavailable.
Grégory Raymond, co-founder and journalist of the French crypto media The Big Whale, cited on-chain investigator ZachXBT, stating that the specific victim is the group's online bank Fortuneo. According to his investigation, the hacker team transferred fiat currency from the bank to exchanges to convert it into stablecoins, then withdrew it to external wallets; the actual loss on the bank's end may exceed the amount currently tracked on-chain.

02 Web3ers

At the 2026 Hong Kong FinTech Week, there were few Web3 booths, and native practitioners struggled under the bear market. On the other hand, traditional financial institutions quietly laid out their strategies, continuously entering the market with RWA, stablecoin payments, and compliance infrastructure. This round of "buying the dip" is no longer just targeting token assets but is also about competing for licenses, talent, scenarios, and entry chips for the next cycle.

"Those Buying the Dip in Web3: Observations from the 2026 Hong Kong FinTech Week"

Some institutions are secretly buying the dip in Web3.
According to my on-site investigation and statistics, at the 2026 Hong Kong FinTech Week, over 100 companies had booths, of which only 7 were Web3 companies, less than one-tenth. They are HashKey, DCS, RedotPay, Obita, AllScale, Interlace, and Native Group.
From the perspective of their main business, apart from HashKey, which is a licensed virtual asset trading platform, the other 6 companies are related to stablecoin payments, wallets, or related financial infrastructure.
After communicating with these 7 companies one by one, my biggest impression is that it is not easy for any of them. In a bear market environment, no business is easy to run, and no one can make money effortlessly.

31-year-old Jeff Yan is building Hyperliquid in Singapore, insisting on no funding and viewing himself as a neutral protocol rather than an exchange. This public chain rapidly expands based on the HIP-3 mechanism, launching perpetual contracts for stocks, crude oil, and other RWAs, with trading volumes rivaling native crypto assets. It is lobbying U.S. regulators while attracting the vigilance and cooperation attempts of traditional exchanges, challenging the trading boundaries of traditional finance anew.

"No Funding, No Home Buying, No Claiming to be an Exchange: The Restraint and Expansion of Hyperliquid's Founder"

Jeff Yan stated that the feasible path to enter the U.S., the world's largest financial market, is for HIP-3 partners rather than Hyperliquid itself to accept U.S. regulations and implement compliance requirements such as KYC and market monitoring. (This is also the core logic behind his argument that "we only provide a technology platform, not an exchange.") In September, Hyperliquid began testing the revised HIP-3 framework, adding identity verification features to fill the previously missing basic due diligence steps. In the same month, the parent company of crypto exchange Kraken initiated discussions to integrate this system, aiming to provide Hyperliquid perpetual contracts to U.S. users.

Vitalik has embarked on a 100-day experiment in airplane mode, practicing digital minimalism. He actively distances himself from the algorithm-driven information flow of social media, defaults to turning off cellular networks, and relies on offline tools and public WiFi for living, while reducing high-risk web applications and turning to command-line tools. He believes that digital minimalism is a new choice today, aimed at reclaiming attention and protecting privacy, allowing online tools to serve people rather than consume them.

"100 Days in Airplane Mode: How Vitalik Lives?"

For a long time, I have practiced minimalism in real life: the fewer possessions I have, the better, and I try to meet more needs with fewer things. Four years ago, I wrote a blog about everything I packed into a 40-liter backpack when I traveled.
However, the idea of material minimalism emerged between 2000 and 2010 to solve the problems of that era and to seize the opportunities of that time. I still find it valuable, and of course, I see some opposing views: appropriate material possessions can help you better grasp your autonomy in life. But I also believe that in today's context, we need a brand new minimalism: digital minimalism.
The core of digital minimalism is consciously controlling how you use digital technology. Every time you go online or scroll through software, it should be a choice you make actively, rather than being unconsciously swept away by algorithms and passively indulging in it. In this article, I will share some of my attempts in this regard.

03 Political Trends

After the U.S. midterm elections, the Democrats control both houses of Congress, marking a policy turning point for the crypto industry. The previously bipartisan-promoted GENIUS and CLARITY bills face new challenges, with Elizabeth Warren likely to chair the Senate Banking Committee, making strong regulation and conflict of interest scrutiny core issues. Although the industry still has some Democratic supporters, future legislation will place greater emphasis on investor protection and financial stability, and crypto businesses relying on presidential benefits will face increased regulatory pressure.

Democrats Sweep Congress, Crypto Faces a Hurdle

If the 2024 U.S. election showed the crypto industry the potential for political investment to translate into policy outcomes, the 2026 midterm elections encountered an unexpected reversal.
Two years ago, the crypto industry invested heavily in supporting pro-crypto candidates, and Trump promised to make the U.S. the global center for cryptocurrency. Since then, the GENIUS Act has been signed into law, and the government has pushed for regulatory reforms, leading to rising expectations for policy dividends in the industry.
However, just two years later, the power dynamics in Washington have dramatically changed.
On November 4, the Associated Press reported that in the U.S. midterm elections, the Democrats not only regained control of the House of Representatives but also secured the Senate, achieving dual control of Congress. Trump's legislative agenda for the next two years will face greater resistance.
For the crypto industry, the results in Ohio are particularly dramatic: Sherrod Brown, who was heavily targeted by crypto political funding and subsequently lost in 2024, has now defeated Republican Senator Jon Husted and returned to the Senate.

The Democrats' control of both chambers in the U.S. midterm elections marks a significant political shift. The market has shown clear differentiation, with mainstream crypto assets like BTC and ETH rebounding, while TRUMP and WLFI, tied to the Trump family, continue to face pressure. The new Congress will initiate investigations into its crypto projects, bringing controversies surrounding foreign capital, stablecoin reserves, and interest transfer to the forefront, marking a new phase in the crypto regulatory game.

Democrats Control Both Chambers, Is a Major Blow Coming for Trump Family Projects?

The market reacted quickly and differentiated. BTC rebounded to a high of $81,196, ETH surged past $2,400, and mainstream altcoins experienced a rebound. Coinglass's latest data shows that in the past 24 hours, the total liquidation across the network reached $974 million, with $582 million in short liquidations.
In contrast, the price performance of TRUMP and WLFI, associated with Trump, tells a different story.
TRUMP has fallen from $1.60 at the beginning of November to around $1.26 now, down over 98% from its historical high of $77.

On November 4, the Hong Kong crypto asset declaration bill was passed by the Legislative Council. The CARF framework will start collecting crypto asset transaction information from 2027 and will initiate cross-border tax information exchange in 2028. The bill covers various transactions, including crypto-to-crypto exchanges and transfers to external wallets. Whether the information of mainland tax residents will be included in the first batch of exchange lists is still pending announcement from the Hong Kong government, and related compliance and tax risks are worth noting for holders.

Hong Kong Crypto Asset Declaration Bill Passed, Will Mainland Residents' Transaction Information Be Exchanged?

In the future, trading Bitcoin in Hong Kong, exchanging USDT for other tokens, or transferring crypto assets from exchanges to external wallets may become part of tax information declarations.
On November 4, the Hong Kong Legislative Council passed the "2026 Taxation (Amendment) (Crypto Asset Declaration Framework and Revised Common Reporting Standard) Bill." According to the arrangement, the two sets of rules involved in the bill will be implemented in phases: the crypto asset declaration framework will take effect from January 1, 2027, with eligible service providers starting to collect information from 2027, and Hong Kong plans to exchange information with relevant tax jurisdictions starting in 2028; the revised common reporting standard will take effect from January 1, 2028, with Hong Kong planning to exchange financial account information according to the new standard starting in 2029.
This arrangement has drawn considerable attention from holders. Who do they need to report to when using Hong Kong exchanges? Will the trading records of mainland tax residents be sent back to the mainland? If one holds Hong Kong identity, can they avoid concerns about overseas tax issues?
From the legislative text and the tax bureau's explanation, it is necessary to distinguish between three stages: the collection of information by trading platforms, reporting to the Hong Kong tax bureau, and the exchange of information between Hong Kong and other tax jurisdictions. The user's tax residency status, the operating entity of the exchange, the type of transactions, and the declaration list published by Hong Kong will all affect the final outcome.

The OCC national trust bank license is becoming a key entry ticket for crypto institutions. It belongs to the federal trust charter, focusing on digital asset custody and stablecoin reserve management, but does not equate to full commercial banking qualifications. From Anchorage to Circle, Ripple, a number of institutions have been approved in succession, and with the implementation of the GENIUS Act rules, digital assets are accelerating their integration into the U.S. federal financial infrastructure.

OCC Trust Bank License, Is It Becoming a Hot Commodity?

Since the beginning of this year, Stripe's Bridge, digital asset and cryptocurrency financial services company Protego, Crypto.com, Coinbase, Nomura's Laser Digital, Morgan Stanley, Connectia Trust under Sony Bank, World Liberty affiliated institutions, enterprise-level white-label stablecoin infrastructure Bastion, Catena Labs, and Agora have all received conditional approvals from the OCC. Among them, Bastion received conditional approval for state trust conversion, while the others received preliminary conditional approvals for newly established banks.

Industry Insights

On November 4, Circle released its Q3 2026 report, showing revenues and profits exceeding expectations, but the impressive performance largely relied on the one-time income from the Arc token presale. Core USDC reserve earnings have declined year-on-year, circulation growth has stalled, and market share is under pressure, while on-chain usage continues to rise, leading to significant divergence in market views on whether its second growth curve can be realized.

Circle Q3 Report Insight: Exceeding Expectations Supported by Token Sales, with Slowing Core Business

On November 4, before the market opened, Circle released its Q3 2026 financial report. The data shows that the company achieved total revenue and reserve earnings of $865 million for the quarter, a year-on-year increase of 17%; operating net profit was $226 million, a year-on-year increase of 5%; adjusted EBITDA was $317 million, a year-on-year increase of 85%.
After the release of the financial report, the company's stock price initially rose over 3% before plunging more than 6%. After the market opened, Circle's stock price stabilized and rebounded, ultimately closing at $76.12, up 1.2% from the previous trading day's closing price.

Tether's Q3 2026 attestation report has been released, showing reserves exceeding $190 billion, with a quarterly profit of $1.5 billion. Its reserves are anchored by short-duration U.S. Treasury bonds, while also increasing Bitcoin holdings and allocating gold, benefiting from the rise in cryptocurrency prices. However, the buffer is highly reliant on asset appreciation, and with business expansion and compliance layout, risks and growth coexist.

Tether Data Disclosure: $1.5 Billion Profit in Q3, Total Asset Reserves Exceeding $190 Billion

As of September 30, Tether directly held U.S. Treasury bills (T-Bills) with a weighted average duration of less than 90 days amounting to $122.84 billion, a significant increase of $7.88 billion from the end of Q2; combined with overnight reverse repurchase agreements fully collateralized by U.S. Treasury bonds amounting to $9.519 billion (with a fair value of $9.509 billion for the underlying U.S. Treasury collateral), Tether's direct and indirect exposure to U.S. Treasury bonds totals $132.4 billion, accounting for 69.1% of total assets.
However, a closer look at the cash and cash equivalents sub-item reveals that Tether made a noticeable repositioning in Q3.
While increasing direct U.S. Treasury holdings, its overnight reverse repurchase scale halved from $18.63 billion at the end of Q2 to $9.519 billion, shrinking by $9.111 billion in a single quarter; along with $7.178 billion in term reverse repos, $21.98 million in non-U.S. Treasury bills, and only $20.43 million in cash and bank deposits, Tether's "cash and cash-like assets" totaled $139.578 billion, down slightly by $1.06 billion from $140.64 billion at the end of Q2.

Block's Q3 financial report exceeded expectations, with gross profit increasing by 22% year-on-year, and the stock price surged after the report. Cash App and Square's dual business drove growth, with Bitcoin business shifting to customer acquisition tools, and AI commercialization about to land. Despite facing $964 million in regulatory settlement fees and bad debt risks, the company continues to raise its performance guidance, and the market is positively pricing its new narrative of finance + AI.

Block Stock Surges 15% on First Day After Earnings Report, What Makes the Market Buy In?

According to Block's Q3 financial report released on November 4, the company's gross profit increased by 22% year-on-year to $3.24 billion, exceeding analysts' average expectation of $3.1 billion. The company raised its full-year gross profit expectation for 2026 from about $12.5 billion to about $12.6 billion, marking the third consecutive upward adjustment of guidance.
After the financial report was released, according to Bitget market data, Block's stock price rose over 9% in after-hours trading, reaching $83.45. The first day after the earnings report opened with a gain of 15.3%, closing at $87.63, with a market capitalization of approximately $52.974 billion.
Analyst consensus is "moderate buy," with an average target price of about $95 to $98. Bank of Montreal (founded in 1817, the oldest bank in Canada) upgraded its rating to "outperform" with a target price of $100; Morgan Stanley previously downgraded its rating to neutral due to concerns about lending credit risk, with a target price of $80.