US BTC Holdings Surge to $36B

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Good Morning.

US authorities now hold more Bitcoin (~$36B) than most public companies after seizing $14B from a massive fraud network.

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In Today's Email:

• What Matters: US BTC Holdings Surge to $36B 📈 

• Case Study: Binance Denies Profiting From Token Listings 🔎 

• Governance & Features: Figure Expands Token YLDS to Sui 👀 

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TOGETHER WITH

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Launching today, October 15 at 1PM CET.

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• Neutrl Points

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• Incentives begin accruing once upNUSD is received.

• Deposits open on Ethereum mainnet via the Neutrl app.

• Lock-in period: 2.5 months.

Join early. Earn more. Be part of the next major DeFi yield event.

WHAT MATTERS

US BTC Holdings Surge to $36B

State of play: The US government’s Bitcoin reserves climbed to more than $36B after authorities seized 127,271 BTC valued at around $14B.

• The record forfeiture followed charges against Chen Zhi, accused of running a Cambodia-based crypto scam that used forced labor to steal billions.

• The Department of Justice described it as the largest forfeiture action in its history.

• Zhi’s network, Prince Group Transnational Criminal Organization, allegedly managed scam compounds that trafficked and extorted enslaved workers.

• The US Treasury, OFAC, FinCEN, and the UK government jointly sanctioned 146 individuals tied to the group.

• Before this seizure, US Bitcoin reserves were about $22B.

Why it matters: The US now controls a bitcoin stash larger than many public companies. That raises new questions about how and when those assets might re-enter the market.

Our take: Holding $36B in Bitcoin makes the US an accidental market participant. It blurs the line between enforcement and market influence.

For builders and investors: This reinforces that on-chain transparency cuts both ways. It helps law enforcement act faster but also reminds investors that crypto’s openness makes hiding value harder than ever.

CASE STUDY

Binance Denies Profiting From Token Listings

Binance said it “does not profit” from its token listing process and called recent allegations from Limitless Labs CEO CJ Hetherington “false and defamatory.”

• Hetherington claimed Binance requested about 8% of Limitless’ token supply plus cash and token deposits as part of a potential listing offer.

• In response, Binance stated that listing-related deposits are refundable within one to two years and denied charging listing fees or dumping project tokens.

• The exchange also criticized Hetherington for publicly sharing confidential communications and said it may pursue legal action.

• Several traders and industry figures suggested similar token allocation arrangements have occurred in other Binance listings.

• Limitless Labs is backed by Coinbase Ventures and the Base Ecosystem Fund.

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INSIGHTS

Monad Opens MON Airdrop Claims

Monad has opened the claims portal for $MON airdrop, marking a key step toward mainnet launch. The portal will remain open for 3 weeks, allowing over 230,000 eligible users to verify and reserve their tokens before distribution begins after Nov 3.

• The airdrop allocates ~9B $MON, worth about $630M, across six community tiers based on onchain activity and engagement:

• Top participants in the “Community Last” tier are expected to receive around $54,700 each, while the “You’re Cooked” and “Permanent Underclass” tiers average $13,600 and $5,100 per wallet respectively.

• Lower tiers like “Mid, but we like you”, “Top 99%”, and “Participation Award” receive smaller allocations between $1,800 and $270.

MON is currently priced near $0.069 on Hyperliquid, implying a $6.9B fully diluted valuation.

FEATURES & GOVERNANCE UPDATE

Figure Expands Token YLDS to Sui

Figure Technology Solutions (FIGR) has launched its SEC-registered, yield-bearing token YLDS on the Sui blockchain, marking the token’s first expansion beyond the Provenance network.

• YLDS is backed by short-term US Treasurys and repurchase agreements, offering yields tied to the Secured Overnight Financing Rate (SOFR) minus 35 basis points, accrued daily and paid monthly.

The partnership allows Sui’s DeepBook, the network’s main limit order book, to integrate YLDS directly, enabling stablecoins to be automatically converted into the token.

• This setup will provide DeFi users with onchain access to institutional-grade yield products and power DeepBook’s upcoming margin trading.

Other notable feature updates:

• Plume acquired Dinero.

• Jupiter launches its new desktop wallet.

• Flying Tulip released a new documentation hub.

• Resolv Foundation executed its weekly buyback.

• Sky Protocol repurchased 39M SKY in September.

• Babylon introduced its Trustless Bitcoin Vault Protocol.

• MetaMask launched perpetual futures trading on its mobile app.

QUICK BITES

• Analysts see Circle as top stablecoin play.

• OwlTing set for Nasdaq debut via direct listing.

• Japan sets out to ban insider trading in crypto.

• US government BTC holdings balloon to $36B.

• Binance launches $400M initiative to refund users.

• Bitcoin and Ethereum spot ETFs see $755M in outflows.

• Figure brings its yield-bearing security token YLDS to Sui.

• Celsius wins nearly $300M from Tether in bankruptcy case.

• Mo Shaikh launches $50M fund to invest in crypto projects.

• Binance claims it 'does not profit' from its token listing process.

• SBF claims Biden administration targeted him over GOP donations.

• Monad kicks off MON airdrop claims as mainnet launch edges closer.

• NYC Mayor launches first-ever city office for digital assets and blockchain.

NOTEWORTHY READS & MEME

• Chilla’s read on Intentional Binding

• Checkonchain’s read on The Wall Still Stands

• Satmonkes’s read on Meteora Airdrop Mechanism

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.