Evening News | Zhu Su: The FTX collapse set the crypto industry back 7 to 8 years, and a new all-weather fund may be established; FTX customers are mainly located in the Cayman Islands, British Virgin Islands, mainland China, and the UK

整理：西昻翔，ChainCatcher

"What Important Events Happened in the Last 24 Hours"

1. Zhu Su: The FTX Collapse Set the Crypto Industry Back 7 to 8 Years, May Establish a New All-Weather Fund

According to Bloomberg, Zhu Su, co-founder of Three Arrows Capital, stated in an interview in Abu Dhabi: "Some industry leaders say that the collapse of FTX set the industry back 5 years, but I think it's more serious, probably seven to eight years. If the fundamental issues are not properly addressed, the regression will last even longer."

In addition, Zhu Su mentioned that after months of reflecting on the failure of Three Arrows Capital, he is considering establishing a new trading entity, possibly an all-weather fund that invests in both crypto and traditional assets, "but I think we can't rush this. The domino effect of the FTX collapse has just begun, and more dominoes will fall." (Source link)

2. FTX Customers Mainly Distributed in the Cayman Islands, British Virgin Islands, Mainland China, and the UK

FTX lawyer James Bromley stated at the first day of the bankruptcy hearing that since the initial attack on the day of bankruptcy, attempts by hackers have continued, with a large amount of assets either stolen or lost. The U.S. District Court for the Southern District of New York has launched a criminal investigation.

Additionally, it was disclosed that FTX's customers are mainly distributed as follows: Cayman Islands 22%, British Virgin Islands 11%, Mainland China 8%, Hong Kong 3%, Taiwan 3%, UK 8%, Singapore 6%, South Korea 4%. (Source link)

3. Bank of England Deputy Governor: The FTX Incident Highlights the Need for Regulation, UK Treasury Will Soon Consult

According to Bitcoin.com, Jon Cunliffe, the Bank of England's Deputy Governor for Financial Stability, stated that the collapse of the cryptocurrency exchange FTX underscores the urgent need for tighter cryptocurrency regulation. Although the crypto world is currently not large enough and its interconnections with mainstream finance do not threaten the stability of the financial system, its connections with mainstream finance have been rapidly developing.

Jon Cunliffe emphasized: "We should not wait until cryptocurrencies are large and interconnected to establish the necessary regulatory framework to prevent potential larger destructive impacts from cryptocurrency shocks." He also added that the UK Treasury will soon begin consultations on expanding investor protection, market integrity, and other regulatory frameworks covering the promotion and trading of financial products, involving activities and entities related to crypto assets. (Source link)

4. OKX Launches Proof of Reserves (POR), Reserve Ratio Exceeds 100%

OKX announced today the official launch of Proof of Reserves (POR), allowing all users to actively check on the official website, comparing OKX's on-chain wallet address assets with the total user assets in the Merkle Tree to verify their asset reserve status.

According to OKX's official website, its reserve ratios for BTC, ETH, USDT, and other currencies exceed 100%. (Source link)

5. All "First Day" Motions of FTX Have Been Approved by the Delaware Federal Court

According to PR Newswire, FTX Trading and approximately 101 affiliated companies (collectively referred to as FTX Debtors) announced that all "first day motions" related to the Chapter 11 filing submitted by FTX Debtors on November 11 have received temporary and final approval from the Delaware Federal Court.

FTX's new CEO and Chief Restructuring Officer John J. Ray III stated, "After the court approved the 'first day' motions, we are moving forward with our work as quickly as possible to maximize value for all FTX stakeholders. We will continue to implement necessary controls and ensure the organization and management of the company's assets. While reviewing the business, we have begun to receive interest from potential buyers for our assets, and we will conduct an orderly process to restructure or sell FTX assets around the world for the benefit of stakeholders." (Source link)

6. Forbes: Fireblocks' Assistance to the Bahamian Government in Transferring FTX Assets Sparks Controversy

According to Forbes, after FTX was attacked, the digital asset custody platform Fireblocks was commissioned by the Bahamian government to transfer and custody $400 million worth of crypto assets. This transfer was carried out with the help of SBF and Zixiao Wang (Gary), although at that time SBF had already resigned as CEO of FTX.

Currently, Fireblocks' system grants Bahamian authorities unilateral control over the funds. This means that Fireblocks cannot transfer the assets to another jurisdiction. Sources told Forbes that no U.S. government agency has contacted Fireblocks regarding these funds.

Previously, the Bahamas Securities Commission (SCB) announced that the asset transfer was to protect the interests of customers and creditors, did not recognize FTX's bankruptcy protection application in Delaware, and stated that the position of Bahamian creditors is superior to other regional bankruptcy claims. (Source link)

7. ENS DAO Chooses Karpatkey DAO to Manage Its Funds

ENS DAO has selected a new fund manager—Karpatkey DAO—to manage its funds. Karpatkey DAO is a DeFi fund management organization initially incubated by Gnosis Ltd, currently managing over $397 million in assets.
It is reported that the initial size of the new ENS fund, Endaoment, will be between $52 million and $69 million, with an expected return rate of 5.83%. The fund will primarily use low-risk, moderately complex DeFi strategies, such as providing liquidity to automated market makers. (Source link)

8. OKLink: The Likely Cause of Shen Bo's Asset Theft is Private Key Leakage

According to security experts from OKLink, the theft of Shen Bo's personal wallet assets occurred because the stolen address directly initiated transfer transactions, transferring ETH, USDC, and other assets to other addresses, rather than using transferFrom. Therefore, the cause of the theft is not the usual authorization phishing, but likely a private key leakage. Additionally, the theft address has already swapped $38 million USDC for DAI, making it impossible to freeze through centralized entities.

According to data from OKLink's multi-chain explorer, Shen Bo's personal address (ending in 5e894) was hacked on November 10 at 1:48 PM Beijing time, resulting in the theft of 38 million USDC and 1,606 ETH. Currently, Shen Bo's personal address has only 1.05 ETH left, with ERC20 tokens valued at approximately $33. (Source link)

"What Interesting Articles Are Worth Reading in the Last 24 Hours"

1. Dialogue with DoraHacks Partner: The Bottom of the Bear Market Shouldn't Be Far, We Will Be More Aggressive

In mid-November, ChainCatcher invited DoraHacks partner Steve for an in-depth dialogue. Although the crypto industry seems to be entering one of its darkest periods, some still view the crisis as an opportunity and are actively developing. In this dialogue, Steve introduced Dora's operational status and decentralized progress, as well as shared his views on multi-chain ecosystems like Polkadot, Aptos, and Cosmos. Additionally, he offered his opinions on hot topics such as the FTX collapse and Hong Kong's new crypto policies.

2. Full Text of Internal Letter from FTX Founder SBF to DCG Founder Barry

SBF stepped forward to provide a complete account of what happened. In his review, he noted that the market crash in the spring led to a 50% drop in collateral value, the instant depletion of most credit in the industry, and the collapse in November caused collateral values to drop again by about 50% in a very short time, culminating in a series of explosions due to factors like bank runs. He stated, "I deeply regret my negligence."

In the internal letter from DCG, they candidly responded to all current speculations, rumors, and factual truths. They expressed that despite the challenging industry environment, they remain excited about the potential of cryptocurrencies and blockchain technology in the coming decades, and DCG is determined to stay at the forefront.

3. Review of the CRV Long/Short Battle: The Largest Short Position of $63 Million in Collateral Was Liquidated

The CRV long/short battle came to a temporary halt as the CRV short address starting with 0x57e was liquidated for over $63 million, with most CRV borrowing positions being liquidated. Whether this CRV confrontation was a feint or a manipulation of the long-tail asset risk in the Aave system remains unknown. However, it has prompted reflection, and the Aave community has begun discussing solutions to reduce the risk of manipulation of long-tail assets.