Crypto Weekly Market Wrap November 3rd: SBF’s Insolvency Claims, Stablecoin Developments, and Institutional Growth

The crypto market had major world events that influenced regulation, innovation, and sentiment last week. From the rate cut by the U.S. Federal Reserve to the upcoming Fusaka upgrade by Ethereum, industry stakeholders pushed forward key projects. Meanwhile, scandals returned regarding insolvency claims by FTX, and traditional finance further solidified its interest in blockchain and stablecoin technology.

SBF Insists FTX Never Faced Insolvency

Sam Bankman-Fried revived the debate about the collapse of FTX. His X (formerly Twitter) account alleged that the exchange never became insolvent. He claimed that FTX had more than $25 billion in assets prior to the new management and lawyers driving it into bankruptcy.

As per his 15-page statement, FTX was valuable to the extent of repaying all users. External lawyers and CEO, John J. Ray III, were accused by Bankman-Fried of driving the company into bankruptcy to benefit themselves. He further claimed that close to $1 billion in fees had been paid to legal teams while valuable assets disappeared.

[SBF says:]

This is where the money went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE pic.twitter.com/O6q77DvmTn

— SBF (@SBF_FTX) October 31, 2025

However, court documents revealed that Alameda Research had been financing risky trades with customer deposits. This resulted in an $8 billion deficit, which caused the collapse of the company. Contrary to the decision of the court, Bankman-Fried asserts that FTX was not insolvent but experienced a temporary liquidity crunch.

U.S. Federal Reserve Reduces Rates

By reducing interest rates by 25 basis points, the Federal Reserve established an upper limit at 4.00%, aligned with market expectations. The central bank also discontinued the balance sheet reduction program and will begin reinvestments in December 2025. These consist of Treasury and mortgage-backed securities.

Regulators Reassess Crypto Capital Rules

Global financial regulators are currently considering future regulations on bank crypto holdings. Adjustments were discussed in the Basel Committee on Banking Supervision after the growth of stablecoins attracted attention worldwide.

The regulations, initially proposed in 2022, were to be put into operation in the next year. They requested banks to maintain substantial capital against crypto exposure. According to market experts, these standards discouraged involvement in digital assets. The regulators are now reconsidering whether these measures are too restrictive for stablecoin development.

Malaysia Moves Toward Asset Tokenization

Bank Negara Malaysia introduced the three-year exploration program for real-world asset tokenization. The program establishes a Digital Asset Innovation Center and an industry group to gather input from the industry.

Malaysia’s central bank has launched a three-year real-world asset tokenization initiative, establishing a Digital Asset Innovation Hub and an industry working group to explore use cases ranging from supply-chain finance to Islamic finance. The roadmap targets proof-of-concept…

— Wu Blockchain (@WuBlockchain) November 1, 2025

The central bank aims to pilot supply chain finance and Islamic financial products. Based on the roadmap, trial proofs of concept will take place in 2026, and pilot expansions will take place in 2027.

Bybit Restricts New User Registrations in Japan

Cryptocurrency exchange Bybit suspended Japanese new registrations starting October 31. According to the company, the move complies with the guidelines of Japan’s Financial Services Agency. Existing users will be allowed to trade, but there could be potential restrictions in the future. In 2021 and 2023, regulators had given Bybit advance warnings over non-compliance. 

JPYC Introduces Yen-Backed Stablecoin

JPYC Inc. unveiled a 1:1 pegged stablecoin, backed by the Japanese Yen, called JPYC. The company also introduced JPYC EX, its official issuance and redemption platform. Bank deposits and government bonds support the stablecoin completely. It will launch initially on the Avalanche, Ethereum, and Polygon blockchains.

JPYC is committed to developing a reliable digital currency in yen, which would be used worldwide. The company believes the project will cement the place of Japan in blockchain-based payments.

Mt. Gox Repayment Delays Continue

Mt. Gox creditors will have to wait longer to receive repayments. Trustee Nobuaki Kobayashi pushed the repayment date to October 31, 2026, citing incomplete verification and delays in the procedures. Even after the collapse of the exchange in 2014, thousands of creditors have yet to receive payments. To date, only confirmed claims have been partially repaid.

💥BREAKING

MT. GOX REPAYMENT DEADLINE HAS BEEN PUSHED BACK TO OCTOBER 31, 2026.

THE WAIT CONTINUES FOR THOUSANDS OF BITCOIN HOLDERS STILL TRAPPED IN THE LONGEST REHAB IN CRYPTO HISTORY. pic.twitter.com/st5PP3acnA

— DustyBC Crypto (@TheDustyBC) October 27, 2025

Earlier this year, a $1 billion transfer of Bitcoin sparked renewed speculation regarding subsequent repayments. However, a large number of impacted investors are still awaiting closure.

Bitcoin White Paper Turns Seventeen

The paper shared by Satoshi Nakamoto seventeen years ago revolutionized the field of finance. The white paper on Bitcoin was published on October 31, 2008, introducing decentralized digital money. That nine-page paper gave birth to a trillion-dollar industry. It has laid the groundwork for blockchain technology and independence in finance. Bitcoin remains a trendsetter in the debate on digital assets and the global economic systems.

Consensys Prepares for Public Listing

The company behind MetaMask, Consensys, selected JPMorgan and Goldman Sachs as the lead underwriters of its IPO. Positive regulation is accelerating the pace of crypto firms going public. Consensys intends to capitalize on investor trust and grow its infrastructure worldwide.

Circle Launches Arc Blockchain

Circle released the public beta of its Arc blockchain, attracting firms such as Visa, BlackRock, HSBC, and AWS. Arc supports sub-second settlement and U.S. dollar-based charges. Institutional-level transactions and privacy-based payments are catered to in the blockchain. Circle will also gradually decentralize Arc by opening the validator and governance access to the community.

Vitalik Buterin Commends ZKsync’s Atlas Upgrade

The new Atlas upgrade by ZKsync provides 15,000 transactions per second and immediate settlement. Interoperability between the Ethereum main and the Layer 2 networks is also enhanced by the upgrade.

ZKsync has been doing a lot of underrated and valuable work in the ethereum ecosystem. Excited to see this come from them! https://t.co/coZKCfsb8h

— vitalik.eth (@VitalikButerin) November 1, 2025

The system now allows direct access to Ethereum liquidity, without separate pools. The achievement was praised by Ethereum co-founder Vitalik Buterin, who said the work of ZKsync was undervalued and vital.

Trump Token Team Eyes Republic.com Acquisition

The issuer of the TRUMP memecoin, Fight Fight Fight LLC, is negotiating to acquire the U.S. operations of Republic.com. Republic.com has backed over 3,000 crowdfunding initiatives. Provided the acquisition is completed, TRUMP token holders might be able to invest in startups directly using crypto.

Jamie Dimon Softens Tone on Blockchain

JPMorgan CEO Jamie Dimon, who was once a critic of crypto, admitted the increasing significance of blockchain. He stated that the technology would replace the outdated financial systems.  Dimon pointed out the stablecoins and internal blockchain networks as viable applications. He acknowledged that while decentralization makes coordination more challenging, the potential of blockchain is undeniable.

Western Union Registers Stablecoin Trademark

After the announcement of the Solana-based stablecoin, Western Union filed the trademark for WUUSD. The filing includes wallet software, payment, and trading services. Industry experts believe that the stablecoins would change the face of remittances by making them cheaper and faster. The entry of Western Union indicates the increasing interest of traditional finance in crypto settlements.

Western Union is launching USDPT, a dollar-backed stablecoin on Solana, aiming to revolutionize global money transfers with faster, cheaper, and more transparent transactions. Issued by Anchorage Digital Bank and set for release in early 2026, USDPT will reduce fees, eliminate… pic.twitter.com/rU12lOJrNb

— Fama Crypto (@Famacrypt) October 29, 2025

China Tightens Domestic Crypto Oversight

The tough position of the country on virtual currencies was reaffirmed by the People’s Bank of China Governor, Pan Gongsheng. He stated that China will continue to limit speculative trading and unlicensed operations.

Pan stressed that the current policies of 2017 are still effective. The central bank will keep collaborating with law enforcement to help eradicate illegal crypto activities. He further added that although stablecoins are gaining global traction, regulators are also wary. China plans to keep up with international developments and adjust measures accordingly.

Hong Kong Reviews Corporate Crypto Investment Rules

Hong Kong’s Securities and Futures Commission is examining the possibility of new regulations on crypto investments in listed companies. Timothy Wong, the chairman, stated that there is no formal structure so far.

Hong Kong Exchanges and Clearing had already dismissed a number of digital asset-driven listing proposals. Wong added that the existing environment makes it almost impossible to list such firms. The SFC aims to establish clear parameters of corporate involvement in Bitcoin and other digital assets.

Australia Expands Crypto Oversight

The Australian Securities and Investment Commission published new rules for digital assets. Info Sheet 225 has now broadened the financial service regulations of stablecoins, staking, and tokenized products.

Australian Securities and Investments Commission published a revised version of Info Sheet 225, expanding how existing financial-services laws apply to crypto businesses as the government prepares sweeping new legislation. The regulator reiterated that many digital assets,…

— Wu Blockchain (@WuBlockchain) October 29, 2025

The guideline brings about new custody requirements and mandates companies to hold a minimum of AUD 10 million in tangible assets. It also categorizes yield-earning and asset-backed tokens as financial products. This update aligns with the upcoming Digital Asset Platforms Act, where exchanges and custodians will have a licensing framework.

Ethereum Developers Confirm Fusaka Upgrade Date

The researchers at the Ethereum Foundation confirmed the date of the Fusaka Upgrade as December 3. The upgrade will enhance scalability and security, in addition to the implementation of the new data access technology known as PeerDAS. Fusaka will increase the block gas limit of Ethereum from 30 million to 150 million units. The update is also expected to increase blob capacity by two times and enhance Layer 2 interoperability.

Visa Expands Stablecoin Integration

Visa plans to support four more stablecoins across four blockchains. The expansion will include two fiat currencies and allow the conversion into 25 traditional ones. Visa CEO Ryan McInerney said that it processed more than $140 billion of crypto-linked transactions in the previous quarter. Furthermore, the proportion of spending on stablecoins increased fourfold year-over-year, indicating the increasing use of blockchain payments.

Citi and Coinbase Join Forces

Citigroup collaborated with Coinbase to experiment with cross-border payments using stablecoins. The partnership is aimed at accelerated settlements and enhanced currency conversion among corporate clients.

We’re collaborating with @Citi to build the future of payments.

→Exploring making it easier for Citi clients to use digital assets
→Unlocking the power of stablecoins for payments
→Improving on and off-ramps

Time to make digital assets an integral part of the global economy. pic.twitter.com/jGaTZ8wPRf

— Coinbase 🛡️ (@coinbase) October 27, 2025

Citi intends to launch on-chain payment instruments that will support conditional and programmable transactions. The collaboration is also designed to enable 24/7 blockchain payments to be used by institutional finance.

Binance Refutes Political Motives

Binance.US refuted the claims that its decision to list the Trump-linked USD1 stablecoin was politically driven. Critics asserted that the listing was a favor following a presidential pardon for Changpeng Zhao. The exchange explained that the ruling was made in accordance with standard listing practices. It also highlighted that both USD1 and WLFI were approved months earlier. Furthermore, Binance.US emphasized that the assets are listed on more than 20 U.S. platforms.

Mastercard Eyes $2 Billion Zerohash Acquisition

Mastercard is nearing a deal to acquire crypto infrastructure company Zerohash at a valuation of up to $2 billion. Zerohash offers APIs for digital asset settlement and custody. The deal would enhance the position of Mastercard in blockchain-based payments. 

The deal follows competitor acquisitions by Stripe and Coinbase of similar infrastructure companies. Stripe recently bought Bridge, while Coinbase is closing on a deal to purchase BVNK. The frenzy of acquisitions demonstrates how payment giants are competing to dominate stablecoin infrastructure before it goes mainstream.

Tether-Led Task Force Freezes $300 Million in Illicit Crypto

The T3 Financial Crime Unit, created by Tether, TRON, and TRM Labs, seized $300 million in illegal funds in its first year. The task force works with law enforcement agencies across the globe to stop crypto crime.

T3 Financial Crime Unit Surpasses $300 Million in Frozen Assets, Strengthening Global Efforts Against Crypto-Related Crime
Learn more: https://t.co/JTfoEEPR7f

— Tether (@Tether_to) October 31, 2025

Its activity in Brazil resulted in the seizure of R3 billion associated with money laundering networks. In the U.S., it assisted in freezing $83 million in 37 cases. The team also disrupted North Korea-related hacks on Bybit and other exchanges. The task force is still growing under its T3+ Global Collaborator Program. Statistics show that close to 40% of its investigations involve fraud and illegal trade.

KRWQ Brings South Korean Won to Base

IQ and Frax introduced KRWQ, the initial stablecoin pegged to the Korean won, to Coinbase’s Base network. The token is based on LayerZero’s Omnichain standard and the Stargate bridge for cross-chain movement.

The first trading pair, KRWQ/USDC, can be found on Aerodrome. KRWQ is minted and redeemed by authorized partners only since South Korea has yet to finalize regulations on stablecoin. IQ noted that it will leverage Frax’s compliance expertise to bring institutional clients seeking regulated exposure to Korean digital assets.

Digital Asset Investment Products Market Overview

According to the CoinShares report, the outflows in digital asset investment products were high last week, amounting to $360 million. Investors responded to hawkish remarks made by Fed Chair Jerome Powell, which they viewed as an indicator of uncertainty in the market regarding possible rate cuts in December.

Digital asset investment products saw outflows totalling US$360m last week, as investors viewed Fed Chair Powell’s comments on potential December rate cuts as hawkish. Bitcoin ETFs bore the brunt, seeing US$946m in outflows. Solana attracted US$421m in inflows driven by new US…

— Wu Blockchain (@WuBlockchain) November 3, 2025

Outflows were also concentrated in the US, which experienced a decline of $439 million. The outflows reached up to $946 million, with Bitcoin ETFs bearing the brunt as the market responded to the rate-related pressure. However, Solana recorded inflows totaling $421 million with the introduction of ETFs in the US.

Etherium also recorded minor inflows of $57.6 million. However, the overall market mood was mixed, as regional inflows from Germany and Switzerland mitigated some of the US losses.

Bitcoin Price Performance

The leading asset saw a rocky performance over the last week, declining by over 6% as the price dropped from highs of $116k to $106k. The price has currently formed a descending channel as the bears hold the upper hand in the market. Both its market cap and trading volume dropped to $2.15 trillion and $45 billion, respectively.

Looking at the technical indicators, BTC is losing its uptrend as a series of red candlesticks dominates the daily chart. The price declined from the upper Bollinger Band and has even breached the middle band, seeking support at the lower band, around $105,260. 

Additionally, the Relative Strength Index (RSI) has dropped to 48 levels, indicating a neutral market sentiment. Should the current trend hold, coupled with selling pressure, the BTC price could decline even further.