Daily Brief: August 3, 2025
Bitcoin Heist, Ark's Bold Moves, UK Crypto Shift
A massive Bitcoin theft from the Chinese mining pool LuBian has been revealed, highlighting serious security issues in crypto mining. Meanwhile, Ark Invest is betting big on Coinbase and BitMine during market dips, showing confidence in the long-term potential of crypto infrastructure despite volatility. In the UK, the FCA is lifting its ban on retail access to crypto exchange-traded notes, marking a shift toward more accessible and regulated crypto investment options for retail investors.
🔍 $14B Bitcoin Mining Pool Heist Unveiled
Arkham Intelligence has uncovered a massive Bitcoin theft from the Chinese mining pool LuBian. In December 2020, hackers stole 127,426 BTC, which was initially valued at $3.5 billion and is now worth $14.5 billion. The breach took advantage of a flawed key generation algorithm, making private keys vulnerable to brute-force attacks.
The stolen Bitcoin remained untouched until a consolidation event in July 2024. This hack surpasses previous records, such as the $1.5 billion Bybit hack. LuBian, which controlled nearly 6% of Bitcoin's hash rate in 2020, still holds about 11,886 BTC, valued at $1.35 billion.
Despite efforts to contact the hacker, the stolen funds have not been moved. This incident underscores serious security vulnerabilities in crypto mining operations and the urgent need for strong cryptographic protections. The hacker is now the 13th largest BTC holder globally.
Why it matters: This revelation underscores the urgent need for improved security protocols in cryptocurrency operations to prevent massive financial losses from sophisticated attacks.
📉 Ark Invest Buys Big During Crypto Dips
Cathie Wood’s Ark Invest has been actively buying shares of Coinbase and BitMine Immersion Technologies amid recent market volatility. Despite Coinbase's stock dropping 16.7% after weak Q2 results, Ark Invest purchased over 95,000 shares, worth more than $29 million. This move shows confidence in Coinbase's future, as the company plans to expand its offerings with tokenized stocks and prediction markets.
Ark Invest also acquired 540,712 shares of BitMine, valued at about $17 million. This purchase aligns with BitMine’s strategic shift towards Ether holdings, making it the largest corporate Ether holder. These investments took place during a broader market downturn driven by weak U.S. jobs data and economic concerns, highlighting Ark's strategic focus on crypto-related companies.
The broader market saw significant sell-offs in crypto stocks like Coinbase and Riot Platforms, influenced by weak economic indicators and trade tensions. Despite these challenges, Ark Invest's buying spree reflects a strategic bet on the long-term potential of crypto infrastructure companies. This approach highlights the evolving investment landscape where digital assets are becoming integral to diversified portfolios.
Why it matters: These strategic purchases by Ark Invest highlight growing institutional confidence in crypto assets, suggesting potential growth opportunities in crypto exchanges and mining companies despite market volatility.
📈 UK FCA Opens Doors to Retail Crypto ETNs
The UK's Financial Conduct Authority (FCA) has announced a major policy shift by lifting its ban on retail access to crypto exchange-traded notes (cETNs). Starting October 8, 2025, retail investors will be able to trade these debt securities on recognized investment exchanges. Unlike ETFs, cETNs track cryptocurrency performance without holding the actual assets.
This decision reverses the FCA's 2021 ban and reflects the growing understanding and acceptance of crypto products. While retail investors can now access cETNs, the FCA still restricts higher-risk crypto derivatives like futures and options. This careful approach aims to balance consumer choice with strong protections.
The FCA's move is part of broader efforts to create a comprehensive crypto framework in the UK by 2026, similar to regulatory developments in the US. Market experts expect this regulatory change to significantly boost investments in Bitcoin and other cryptocurrencies, as retail investors find new ways to engage with the crypto market.
Why it matters: This regulatory update broadens retail investor access to regulated crypto products in the UK, reflecting market maturity while maintaining safeguards against high-risk exposures.