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Crypto Lobbies for Looser Rules as Stolen Billions Disappear

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Crypto Lobbies for Looser Rules as Stolen Billions Disappear

Binance may have stabilized withdrawals, but the stolen billions remain the bigger problem. Replenishing customer funds is one thing. Tracing and recovering crypto scattered across wallets, mixers and networks is another.

Crypto wants fewer regulatory barriers as its accountability gaps widen. Circle’s push for permissionless infrastructure raises the stakes for regulators already struggling to balance financial innovation with fraud prevention and enforcement.

The real regulatory test isn’t how fast crypto moves money. It’s whether anyone can stop it. The Binance breach exposes a widening gap between blockchain’s promise of frictionless finance and its ability to recover stolen assets, contain financial crime and assign responsibility.

The scales of cryptocurrency’s existential crisis regarding traditional finance and decentralized finance were always going to be tipped by crime. They’ve gotten a nearly $7 billion push since Friday (Oct. 30).

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A mysterious series of transfers allegedly using the Kraken exchange resulted in the loss of over $130 million from a European institution as of Tuesday (Nov. 3), according to an independent investigation of the blockchain transactions. The institution has not been identified, but the public blockchain record confirms that one operator was behind over a dozen withdrawals.

A day earlier, Monday (Nov. 2), Mercado Bitcoin, a digital asset company, suffered a hack, which caused a $40 million loss, PYMNTS reported, citing Bloomberg.

And a day before that, Sunday (Nov. 1), Bitcoin payments tool BTCPay Server urged users to shut off their servers following word of an attack, PYMNTS reported, citing CoinDesk.


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