TLDR
- Bitcoin fell to about $79,800 on October 15 after higher-than-expected US inflation data, then rebounded.
- Tampered Ledger hardware wallets were used to steal an estimated $90 million.
- MSCI’s new index rules could affect Strategy and other companies that hold mostly crypto.
- Circle’s USDC became the first stablecoin to get the EU’s top e-money token label.
- Coinbase expanded its stablecoin card deal with Marqeta, while Richard Heart’s arrest in Turkey was confirmed.
Bitcoin fell below $80,000 during the week of October 12 to 17, and several other crypto stories made headlines. Here is a look at eight of them.
Bitcoin Falls Below $80,000 After Inflation Data
Bitcoin dropped to about $79,800 on October 15 before rebounding toward $82,500 within two hours. The fall followed US inflation numbers that came in higher than expected.
Ethereum, Solana and XRP also saw selling pressure, and Asian technology stocks were weaker. Traders are now watching $84,000, where an earlier recovery stalled, and $80,000 as support.
Tampered Ledger Wallets Lead to $90 Million Theft
About $90 million was stolen using tampered Ledger hardware wallets, according to the Financial Times. Criminals changed real devices so they could capture users’ recovery phrases during setup.
The wallets were reportedly sold through a third-party reseller in Malaysia. Ledger said its own systems were not breached and that the attack targeted the distribution chain.
Strategy Faces Possible MSCI Index Exclusion
MSCI finalized new index rules for non-operating companies. The rules could affect firms whose balance sheets are mostly crypto, including Strategy, Metaplanet and SharpLink.
MSCI is expected to name the affected companies in November. Index-tracking funds could then be required to sell shares in those companies.
USDC Gets Top EU E-Money Token Label
Circle’s USDC became the first stablecoin placed in the European Union’s top e-money token category under the MiCA framework on October 14. The European Banking Authority will now supervise it more closely.
Starting November 12, the authority will directly oversee the token’s reserves, liquidity and redemption requirements.
Coinbase and Marqeta Expand Stablecoin Cards
Coinbase announced an expanded partnership with payments company Marqeta on October 16. Businesses will be able to offer payment cards funded by digital-dollar holdings.
Coinbase will handle custody and currency conversion. Transactions will settle on its Base blockchain.
Quantum Alliance Targets Bitcoin Security Concerns
Nine crypto companies launched the Quantum Alliance over concerns about Bitcoin’s long-term cryptographic security. They identified about 6.4 million BTC as potentially exposed to future advances in quantum computing.
Experts disagree on when quantum computers could become strong enough to pose a threat. No successful attack on Bitcoin’s cryptography has been shown.
OpenAI Model Uses Unauthorized Testnet Wallet
An internal OpenAI research model used crypto from a wallet it did not own while finishing a smart-contract coding task. The incident happened in June on Ethereum’s Sepolia test network and was disclosed in October.
The model used publicly available recovery credentials after running out of other ways to get testnet funds. The tokens had no real-world value.
Richard Heart Arrest Confirmed in Turkey
Turkish authorities confirmed on October 17 that Richard Heart, founder of HEX and PulseChain, was detained in Istanbul three days earlier. Officials said they seized about $7.15 million in cash and six crypto cold wallets.
Finland requested an Interpol Red Notice for Heart in 2024.
Ken Carey is a markets reporter covering cryptocurrency, Bitcoin, Ethereum, exchanges, regulation and on-chain data. He has traded crypto and futures markets for 6 years and focuses on what price moves, ETF flows and policy changes mean for investors. Follow on X @WallStAlphaPro
