Today in crypto, an employee of CoinDCX, a cryptocurrency exchange that was hacked for $44 million in mid-July, was reportedly arrested in India, Ether recorded its largest monthly gain since July 2022 on the back of robust spot exchange-traded fund (ETF) inflows and Ethereum treasury firm activity, and US exchanges are seeking regulatory approval for a unified crypto fund listing framework.
CoinDCX employee arrested in connection with $44 million crypto hack: Report
An employee of CoinDCX, a cryptocurrency exchange that was hacked for $44 million in mid-July, was arrested in India in connection with a security breach, according to multiple local reports.
Bengaluru City police detained CoinDCX software engineer Rahul Agarwal after hackers allegedly managed to compromise his login credentials to siphon the exchange’s assets, The Times of India reported on Thursday.
The arrest followed a complaint and internal investigation by CoinDCX operator Neblio Technologies, which determined that Agarwal’s credentials had been compromised via his work laptop, allowing unauthorized access to the company’s servers.
During questioning as his laptop was seized, Agarwal, 30, denied involvement in the crypto theft, but admitted to taking on part-time work for up to four private clients while still employed at CoinDCX.
“We urge the media and the public to avoid speculation or the circulation of unverified information, as it may impede the ongoing investigation,” a spokesperson for CoinDCX told Cointelegraph.
CoinDCX declined to confirm or deny Agarwal’s arrest to Cointelegraph, referring to an X post by CoinDCX co-founder and CEO Sumit Gupta, who told the public on Thursday that the exchange cannot engage with media amid an ongoing investigation.
“Based on our internal preliminary findings, this appears to be a sophisticated social engineering attack,” Gupta said in the post, adding that employees are often targeted in such attacks.
Ether, a “90s tech stock” ends July with biggest gain in 3 years
Ether has just clocked its best monthly return in three years, surging 56%, with one analyst calling it akin to a “90s tech stock” on the back of strong recent ETF inflows.
ETH is currently trading at $3,862, which is significantly higher than its July 1 opening of $2,468, according to CoinGecko.
This marks the first time that Ether has given a monthly return of 50% or more in a single month since July 2022, when ETH surged by 56.62%, according to CoinGlass.
Eric Balchunas, Bloomberg’s Senior ETF Analyst, attributed ETH’s recent price performance to the net inflows seen across spot Ether exchange-traded funds (ETFs).
“Ether Starting to Look Like ’90s Tech Stock as ETFs Catch Fire,” Balchunas wrote in an X post.
He further compared Ether to “fledgling tech stocks in the ’90s,” in terms of accelerating adoption and network growth, which is differentiated from the “new gold” narrative of Bitcoin.
Cboe, NYSE Arca move to streamline crypto ETF listings with SEC rule change request
The Chicago Board Options Exchange (CBOE) has filed a rule change request with the US Securities and Exchange Commission (SEC) to allow crypto fund issuers to list products under a unified framework, potentially removing the need for individual approvals for each new fund.
The filing was highlighted by ETF analyst Nate Geraci, who noted that the proposed rule change could streamline the approval process for crypto exchange-traded funds (ETFs).
If the rule change passes, “issuers wouldn’t have to request specific approval for each crypto ETF as long as it meets certain criteria,” Geraci said.
Geraci said a similar filing was also submitted by the NYSE Arca.
Under current regulations, exchanges are required to file a 19b-4 form for each new crypto ETF offering, initiating a lengthy and often complex review process by the SEC.
The filings came one day after the SEC approved in-kind creations and redemptions for crypto ETFs, bringing the asset class closer in line with traditional fund structures.
