The Chicago Board Options Exchange (Cboe) updated its regulatory filings for proposed spot Bitcoin exchange-traded funds (ETFs), which apply for the filings of the Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Wise Origin Bitcoin Trust.

Popular cryptocurrency exchange Kraken has been ordered by the United States District Court for the Northern District of California to hand over account and transaction information to the Internal Revenue Service (IRS).

Malicious actors have manipulated the smart contract function of PolyNetwork's bridge tool, minting billions of dollars in various tokens. Bridge tools leverage smart contracts to enable the exchange of tokens between different blockchains.

Top stories in the Crypto Roundup today:

• Cboe Updates Filings for Spot Bitcoin ETFs
• Kraken Ordered to Share User Data with IRS for Tax Purposes
• PolyNetwork Bridge Exploited as Attackers Minted Billions of Tokens
• Bitcoin Cash Price Surges on EDX Listing, Asian Trading Hours

Cboe Updates Filings for Spot Bitcoin ETFs

The Chicago Board Options Exchange (Cboe) updated its regulatory filings for proposed spot Bitcoin exchange-traded funds (ETFs), which apply for the filings of the Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Wise Origin Bitcoin Trust.

The move comes on the heels of a report indicating that the U.S. Securities and Exchange Commission (SEC) communicated to the Nasdaq and Cboe exchanges that recent spot Bitcoin ETF fund filings from BlackRock, Fidelity, and others weren’t “clear and comprehensive.”

One noteworthy point in the revised filing for the Wise Origin Bitcoin Trust, a spot ETF suggested by Fidelity, is Cboe's expectation to enter into a surveillance sharing agreement with Coinbase. Similar language was also used in the filings for Invesco, WisdomTree, and Wise Origin.

The firm also made an amendment to the filing for the ARK 21Shares Bitcoin ETF, which cites Coinbase as a partner in the surveillance-sharing agreement.

Kraken Ordered to Share User Data with IRS for Tax Purposes

Popular cryptocurrency exchange Kraken has been ordered by the United States District Court for the Northern District of California to hand over account and transaction information to the Internal Revenue Service (IRS).

The information, according to the agency, is needed to determine whether any of the exchange’s users underreported their taxes. According to the order, Kraken has to provide details of users who transacted over $20,000 within a calendar year.

The information to be handed over includes names, whether real or pseudonymous, birthdays, taxpayer identification numbers, addresses, email addresses, phone numbers, and other documents.

The IRS may also request raw data from Kraken, in addition to blockchain addresses and transaction hashes that are part of the transaction data that can be shared. The judge who presided over the case, Joseph Spero, seems to have dismissed the IRS’ attempt to get employment and source of wealth information of Kraken’s users as well.

The judge asserted that the court has to verify if the IRS requests are adequately focused, so they do not exceed what is necessary to accomplish their purpose.

PolyNetwork Bridge Exploited as Attackers Minted Billions of Tokens

Malicious actors have manipulated the smart contract function of PolyNetwork's bridge tool, minting billions of dollars in various tokens. Bridge tools leverage smart contracts to enable the exchange of tokens between different blockchains.

The exploit allowed the attackers to trick the PolyNetwork bridge into generating tokens on one network that didn't exist. The attack resulted in the creation of 24 billion Binance USD (BUSD) and BNB tokens on the Metis blockchain, 999 trillion Shiba Inu (SHIB) tokens on the Heco blockchain, and a variety of tokens on multiple other networks, including Avalanche and Polygon

Consequently, the attackers' wallet was, on paper, valued at over $42 billion immediately after the attack. A significant liquidity shortage stopped the attackers from turning their vast hoard of tokens into cash.

Metis developers verified that there was no "sell liquidity available" for the BNB and BUSD. Moreover, the improperly issued METIS tokens were secured on the PolyNetwork bridge by the developers.

Despite these obstacles, the assailants found liquidity for some of the illicitly created tokens. According to Lookonchain, an analytics firm, they successfully exchanged 94 billion SHIB tokens for 360 ETH, 495 million COOK for 16 ether, and 15 million RFuel for 27 ETH.

This was the second time PolyNetwork has been targeted by attackers. The protocol was exploited for $600 million back in August 2021 after the alleged leak of a private key that was used to sign a cross-chain message.

Bitcoin Cash Price Surges on EDX Listing, Asian Trading Hours

Bitcoin Cash (BCH) is undergoing a significant upswing in price, largely driven by its recent listing on EDX Markets, a U.S. regulated self-custodial cryptocurrency exchange. Strikingly, spikes in trading volumes and return profiles are predominantly observed during Asia trading hours, irrespective of recent news developments in the U.S.

It remains to be seen whether this pattern will continue, but understanding the marked discrepancies in return profiles and volumes across various global trading sessions is vital to grasp the evolving price dynamics of Bitcoin Cash.

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