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first_img Traders borrowed BitGo's public code changes to front-run Robinhood's coin listing, making a profit of 6 million USD

A trader using the pseudonym @3i stated that their team bought Cash Cat and PONS in advance before the launch of two Robinhood Chain Meme coins on Robinhood, collectively profiting over 6 million dollars. According to their description, the team has been tracking Wintermute's wallets on Robinhood Chain and BitGo's GitHub activity since July, having previously discovered that Wintermute transferred tokens to Robinhood about an hour before the announcement of the Meme coin launch. After the article was published on Saturday, it has garnered over 300,000 views. The Block verified several public records mentioned in the article and found wallet activity that matched some of the timelines, but could not verify the profit figures.On July 27, BitGo developers submitted code changes in the public BitGoJS repository to add Cash Cat to the Robinhood Chain token list, with the changes merged the following day; BitGo released a new version on July 29, adding support for 99 Robinhood Chain stock tokens. Cash Cat was issued on July 1, and Robinhood did not list the token until August 6. On August 3, their monitoring bot detected that Wintermute approved the relevant trading pool, and the wallet subsequently made small purchases, then bought over 1 million dollars in a single transaction after a suspected insider placed a limit order of 11,000 dollars, raising its holdings to about 4% of the supply. On-chain data shows that the wallet accumulated approximately 15 million tokens, accounting for 1.5% of the total, and was marked by Bubblemaps the following day. The team claimed to have sold during the post-launch rush, profiting over 4 million dollars.The trader stated that the team began buying the tokens from the Meme coin issuance platform on Robinhood Chain, PONS, on August 28, collectively profiting 2 million dollars with their friends, but the article did not specify how they identified the token. He believes that the PONS launch on September 2 appears to be a honeypot set up by Robinhood to catch insiders and noted that most of the information advantages described in the article have disappeared. On September 15, the U.S. Department of Justice charged two former Robinhood engineers with front-running the coin listing announcement trading perpetual contracts on Hyperliquid, suspected of commodity fraud and wire fraud.

The hope for substantial progress in U.S. cryptocurrency legislation within the year is slim, and the industry is turning its attention to the new Congress

According to CoinDesk, several figures in the U.S. cryptocurrency industry expect that during the last few weeks of the current congressional session (the "lame duck" period from the end of the election until the next Congress begins on January 3), it will be difficult to push forward any substantial progress on cryptocurrency legislation.Cody Carbone, CEO of the Digital Chamber of Commerce, stated that hopes for further progress on the CLARITY Act are low, as lawmakers seem to have gradually shifted their attention to other matters. With the Democrats gaining more control in the new Congress after the midterm elections, the Republicans have limited time left, and the Democrats lack the motivation to make significant compromises at this time.There are still a few issues that may receive attention, including cryptocurrency tax rules, granting the Commodity Futures Trading Commission (CFTC) more regulatory authority over the cryptocurrency spot market, and expediting data center construction permits. Among these, the bipartisan bill related to data center permits has passed preliminary procedures in the Senate, but some Bitcoin mining companies have disagreements regarding potential requirements to bear the costs of grid expansion and higher energy expenses.Kristin Smith, head of the Blockchain Association, stated that with limited time left in this Congress and many items on the agenda, the most important regulatory rules for the U.S. cryptocurrency industry are still being set by the Securities and Exchange Commission (SEC) and the CFTC.

Analysis: Wintermute spends tens of millions of dollars annually on front-running trades, but its cumulative profits are only marginally related to this

On-chain analyst Psyche stated that the market maker Wintermute has spent approximately $824,000 in the past 30 days on the Gossip Priority auction for trading flow on Hyperliquid, which translates to an annualized expenditure of about $10 million.This mechanism will go live in April 2026, with auctions held every 3 minutes, offering a total of 3 priority seats. The highest seat can receive unexecuted trading data about 60 milliseconds earlier than participants without priority. Wintermute primarily bids for Seat 0, winning about 74.7% of the relevant auction rounds in October. On-chain data shows that Wintermute, Selini Capital, and another unnamed market maker collectively contributed about 99% of the auction expenditure.However, the approximately $229.7 million in account profits accumulated by Wintermute since 2024 cannot be directly attributed to trading priority. The auction mechanism will not be launched until April 2026, while Wintermute had already accumulated about $204 million in profits prior to that; in the approximately 7 months after the launch, account profits were about $25.6 million, with auction expenditures for the seats around $3.58 million during the same period.The relevant accounts also hold a large number of perpetual contract hedge positions, so the cumulative profit and loss includes various sources of income from years of market making, directional trading, and inventory hedging, with trading priority only providing potential marginal improvements to market-making operations.It is noteworthy that Wintermute has significantly reduced its bidding since November 11, with daily expenditures dropping from about $30,000 to around $10,000, concentrating bids in the hours following the opening of the U.S. stock market. The core value of Gossip Priority lies in allowing market makers to see pending orders earlier, enabling them to cancel or adjust quotes ahead of time, similar to the Last Look mechanism in traditional financial markets.This means that large market orders from ordinary traders may face speed competition among market makers, and smaller market makers may be at a disadvantage due to the lack of priority. However, the ownership of the relevant wallets relies on third-party labels and is not officially disclosed by Wintermute.

Approximately 64,000 Bitcoin mining machines were hijacked, and 13 EH/s of computing power was redirected to the OCEAN mining pool

According to Bitcoin News monitoring, approximately 64,000 Bitcoin mining machines have reportedly been hijacked, involving 13 EH/s of computing power. The mining machine's computing power was redirected to the OCEAN mining pool, with earnings designated to be paid to a Bitcoin address controlled by the attackers. The attack reportedly began around 8 PM Central Time.The OCEAN dashboard showed that its computing power once approached 50 EH/s, before falling back to about 40 EH/s. CoreX Hosting was the first to raise the alarm, stating that the mining machines were switched to other mining pools without authorization. An affected operator claimed that their entire mining farm was hijacked and pointed out that Luxor's Commander mining management software was the source of this security incident; other operators reported that similar unauthorized changes to mining pools had occurred a few days prior.CoreX subsequently stated that the attack appeared to be over, with the hijacked computing power dropping from 13 EH/s to about 100 PH/s. The attackers reportedly failed to mine any Bitcoin blocks during the hijacking, thus not receiving any block rewards; affected miners permanently lost the opportunity to earn Bitcoin during the attack. The full scope of the impact of this security incident, as well as whether Luxor Commander was compromised, has yet to be independently confirmed.
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