Control of both chambers of Congress is up for grabs this week. CoinDesk notes Democrats are expected to flip the House, while the Senate is a tossup: Republicans hold 53 seats to Democrats’ 45 (with two independents caucusing with Democrats), and Democrats would need to win at least four of seven races rated tossups by Cook Political Report. Crypto isn’t a major campaign issue, but the winners will shape legislation and regulation after January. CoinDesk’s guide covers those Senate races and key House contests, with polling averages and prediction market odds for each. Fairshake, the crypto super PAC, has backed lawmakers in both parties, including House Financial Services Chair French Hill (R) and Nevada Democrat Steven Horsford, and has spent $56 million opposing Sherrod Brown in Ohio’s Senate race.
Binance says its record hack began in September with a fake job interview. In a media briefing Tuesday, the exchange said an engineer was contacted through a legitimate job platform by someone posing as a project director, then interviewed by a fake HR representative and a purported CEO, who told him to download a coding assignment that carried zero-day malware. On Oct. 20 the attackers used that machine and an internal AI tool to reach two wallet engineers’ computers, and on Oct. 29 they used stolen credentials to launch the theft, exploiting Ethereum’s EIP-7702 to gain control of a hot wallet. The FBI has attributed the attack to North Korea. Binance says about $2.85 billion has been frozen and about 98% of the affected tokens have been replenished with company funds.
Your digital asset holdings could be working harder for you. With in-kind transfers available across 10 Grayscale products, eligible investors can exchange their crypto tokens for shares of the corresponding product — without first selling for cash.
Three core features of in-kind investing:
Put holdings to work. Shares may be eligible for use as margin or collateral. Where listed options are available, they may also help hedge exposure or generate income.
Bring investments together. Incorporate crypto exposure into portfolio management and estate planning, including beneficiary designations.
Simplify safekeeping. Underlying assets are held by institutional cusodians, reducing the burden of storing crypto and managing private keys.
Grayscale Exchange Traded Products (the “ETPs”) are not registered under the Investment Company Act of 1940 (40 Act) and therefore are not subject to the same regulations and protections as 40 Act registered ETFs and mutual funds. The ETPs are subject to significant risk, heightened volatility, and are not suitable for all investors. An investment in the ETPs is not a direct investment in any cryptocurrency.
Extreme volatility of trading prices that many digital assets have experienced in recent periods, and may continue to experience, could have a material adverse effect on the value of the Fund and the shares could lose all or substantially all of their value. Digital assets represent a new and rapidly evolving industry. The value of the ETPs depends on the acceptance of digital assets, the capabilities and development of blockchain technologies and the fundamental investment characteristics of the digital asset. Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset. Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
Converting tokens in kind into Grayscale’s spot crypto ETPs may require selling or swapping tokens into the underlying asset, creating exposure to market impact, slippage, and timing risk. The ETP shares received may trade at a premium or discount to NAV. Tax treatment is uncertain and may trigger taxable events, particularly when contributing assets other than the ETP’s underlying crypto.
Foreside Fund Services, LLC is the Marketing Agent and Grayscale Investments Sponsors, LLC is the sponsor of the ETPs.
Tron founder Justin Sun is asking a federal court to sanction World Liberty Financial and its lawyers, accusing the Trump-linked crypto venture of hiding its ties to the United Arab Emirates until months into his lawsuit over frozen WLFI tokens. Sun, who sued in April over a $45 million investment, says the company first told the court it was a Florida citizen, then amended its disclosure after an August ruling to list 22 entities with ties to Florida, Delaware, Puerto Rico and the UAE — a change that could move the case out of federal court. World Liberty’s lawyers have said they learned of the UAE citizenship after the first filing, according to Sun. The company couldn’t be reached for comment, and the court hasn’t found that it intentionally concealed its ownership.
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