🧩 GSR Launches On-Chain Credit Vaults With $100M of Its Own Capital
Crypto trading firm GSR is expanding into on-chain credit with a new vault business backed by $100 million of the firm's own capital, targeting institutional finance moving onto blockchain infrastructure.
The vaults focus on stablecoins and tokenized gold, with GSR committing proprietary capital to the strategy. The move positions the firm as both operator and investor in on-chain credit products, rather than simply a market maker or intermediary.
The launch reflects broader institutional momentum toward tokenized real-world assets, with stablecoins and gold among the earliest asset classes to gain traction in on-chain finance.
🟠 Bitcoin drops to $83.5K as Hormuz tensions spike oil
Bitcoin fell to $83,570 over 24 hours as geopolitical tensions around the Strait of Hormuz pushed oil prices above $100 a barrel.
The sell-off erased roughly $80 billion from the total crypto market cap within hours and triggered approximately $550 million in liquidations, with leveraged long positions absorbing the bulk of the losses.
📈 SEC approves 3x leveraged Bitcoin and Ethereum ETFs
The SEC has approved a Cboe BZX rule change allowing six Volatility Shares funds — including triple-leveraged Bitcoin and Ethereum ETFs — to list on the exchange. The decision was issued on October 2.
Trading cannot begin immediately. Volatility Shares must first obtain effective registration statements before the funds are available to investors. The approval covers products targeting triple daily returns across both cryptocurrency and commodity markets.
Leveraged crypto ETFs amplify both gains and losses relative to daily index moves, making them primarily tools for sophisticated short-term traders rather than long-term holders.
⚖️ 'Godfather' fraudster sentenced over $37M Meta scheme
Adam Iza, who dubbed himself "Godfather," has been sentenced to 6 years in prison for a $37 million fraud scheme targeting Meta.
The sentence runs concurrently with a 15-year term handed down last month for Iza's role in a separate attempted Bitcoin robbery, making the Bitcoin-linked case the more consequential of the two convictions.
Greek authorities have dismantled an unauthorized cryptocurrency pyramid scheme that defrauded more than 10,000 investors of approximately $9 million.
The operation promised to double investor funds within 50 days through automated AI-powered trading — a claim authorities say was fraudulent. The scheme operated without authorization and was structured as a pyramid, meaning early participants were paid using funds from newer investors rather than actual trading returns.
Greek police confirmed the bust, marking one of the larger crypto fraud cases in the country in recent years.
⚖️ CFTC proposes new crypto rules, spot market still uncovered
The U.S. Commodity Futures Trading Commission is advancing two proposed rules aimed at expanding its oversight of crypto activity and exchanges, joining the SEC in pushing forward regulatory frameworks for the sector.
The proposals target derivatives-related crypto activity but stop short of covering spot markets — where direct buying and selling of digital assets takes place. That gap means straightforward crypto trading remains outside the scope of either regulator's current rulemaking, leaving a significant portion of the market without clear federal oversight.
The development reflects ongoing regulatory momentum in Washington, even as jurisdictional boundaries between the CFTC and SEC over crypto assets remain unresolved.
⚖️ Treasury sanctions Hamas fundraising network tied to crypto transfers
The U.S. Treasury Department has sanctioned a fundraising network linked to Hamas that raised more than $2 million through organizations posing as humanitarian charities.
Hundreds of thousands of dollars within that total were moved via cryptocurrency. The action targets the use of digital assets alongside traditional financial channels to funnel funds to a designated terrorist organization.
The move is part of broader U.S. efforts to close crypto-related loopholes exploited by sanctioned groups, reinforcing regulatory pressure on the use of digital assets in illicit finance.