PA Daily｜Prince Group founder Chen Zhi escorted back to China; Babylon completes $15 million funding led by a16z Crypto

Today’s Headlines:

Prince Group Founder Chen Zhi is Deported Back to China, Suspected of Gambling, Fraud, and Other Crimes

U.S. Senate Banking Committee Sets Hearing Date for Crypto Market Structure Bill on January 15

Rumble and Tether Launch Non-Custodial Crypto Wallet Rumble Wallet

Decentralized Protocol Babylon Completes $15 Million Funding Round Led by a16z Crypto

Fireblocks Acquires Crypto Accounting Platform TRES Finance for $130 Million

Solana Mobile Airdrops 2 Billion SKR Tokens to Seeker Users on January 21

Analysis: MSCI’s “Hidden Clause” May Cut Off Strategy’s Incremental Fund Inflows

Shanghai Second Intermediate Court Holds Seminar on “Legal Uniformity in Virtual Currency Crime Cases”: Personal Holding and Trading Usually Not Recognized as Illegal Business

Macro & Regulation

Prince Group Founder Chen Zhi is Deported Back to China, Suspected of Gambling, Fraud, and Other Crimes

According to the Ministry of Public Security on January 8, with support and cooperation from Cambodian authorities, a task force from the Ministry successfully deported Chen Zhi (Chinese national), the leader of a major cross-border gambling and fraud syndicate, from Phnom Penh, Cambodia back to China. This marks another significant achievement in China-Cambodia law enforcement cooperation. Investigation shows Chen Zhi’s criminal group is suspected of operating casinos, fraud, illegal business activities, and concealing criminal proceeds. Chen Zhi has been subjected to compulsory measures according to law, and related cases are under further investigation. A relevant official from the Ministry of Public Security stated that the police will soon publicly list the first batch of Chen Zhi’s key criminal group members for arrest, and will resolutely pursue fugitives. They warn criminals to recognize the situation, turn themselves in immediately, and seek leniency.

Earlier yesterday, it was reported that Prince Group founder Chen Zhi was arrested and deported to China.

U.S. Senate Banking Committee Sets Hearing Date for Crypto Market Structure Bill on January 15

According to Finance Feeds, the legislative landscape for the U.S. crypto industry has reached a critical turning point. The Senate Banking Committee officially scheduled the hearing for the “Digital Asset Market Transparency Act” (also known as the Crypto Market Structure Bill) on Thursday, January 15, 2026. Committee Chair, Republican Senator Tim Scott from South Carolina, announced this decision after a series of tense closed-door meetings in early January. Senator Scott emphasized that the committee will push forward with a formal vote regardless of difficulties. The Republican leadership views this deadline as a strategic necessity, racing against the January 30 federal government funding deadline to complete legislation, or risk another government shutdown. The committee aims to hold a vote next Thursday to submit the bill to the full Senate while the current administration maintains a positive stance on cryptocurrencies.

According to the Ministry of Public Security on January 8, with support from Cambodian authorities, a task force successfully deported Chen Zhi, the leader of a major cross-border gambling and fraud syndicate, from Phnom Penh, Cambodia back to China. This is another major achievement in China-Cambodia law enforcement cooperation. Investigation shows Chen Zhi’s criminal group is suspected of operating casinos, fraud, illegal business activities, and concealing criminal proceeds. Chen Zhi has been subjected to compulsory measures according to law, and related cases are under further investigation. A relevant official from the Ministry of Public Security stated that the police will soon publicly list the first batch of Chen Zhi’s key criminal group members for arrest, and will resolutely pursue fugitives. They warn criminals to recognize the situation, turn themselves in immediately, and seek leniency.

Earlier yesterday, it was reported that Prince Group founder Chen Zhi was arrested and deported to China.

U.S. Senate Banking Committee Sets Hearing Date for Crypto Market Structure Bill on January 15

According to Finance Feeds, the legislative landscape for the U.S. crypto industry has reached a critical turning point. The Senate Banking Committee officially scheduled the hearing for the “Digital Asset Market Transparency Act” (also known as the Crypto Market Structure Bill) on Thursday, January 15, 2026. Committee Chair, Republican Senator Tim Scott from South Carolina, announced this decision after a series of tense closed-door meetings in early January. Senator Scott emphasized that the committee will push forward with a formal vote regardless of difficulties. The Republican leadership views this deadline as a strategic necessity, racing against the January 30 federal government funding deadline to complete legislation, or risk another government shutdown. The committee aims to hold a vote next Thursday to submit the bill to the full Senate while the current administration maintains a positive stance on cryptocurrencies.

U.S. December ADP Employment Change: 41,000 Jobs, Expectation: 47,000

According to Jin10, U.S. December ADP employment increased by 41,000 jobs, below the expected 47,000, and the previous value was -32,000.

Shanghai Second Intermediate Court Seminar on “Legal Uniformity in Virtual Currency Crime Cases”: Personal Holding and Trading Usually Not Recognized as Illegal Business

Recently, Shanghai Second Intermediate Court held a seminar on “Legal Uniformity in Virtual Currency Crime Cases,” analyzing three topics: 1. The recognition of “subjective knowledge” in virtual currency money laundering crimes should be based on a comprehensive assessment to prevent objective misattribution. 2. The types of behaviors and standards for completion in virtual currency money laundering crimes include: (a) understanding the criminal nature of “concealing and disguising the source and nature of criminal proceeds and gains”; (b) behaviors that meet the elements of money laundering, i.e., concealing and disguising proceeds and gains, constitute completion; © strict crackdown on money laundering to safeguard national financial security. 3. Recognition of illegal business crimes involving virtual currency: if behaviors lack typical business features and are merely personal holding or trading, they are generally not recognized as illegal business crimes. However, if the individual knowingly assists in illegal or disguised foreign exchange transactions, and the circumstances are serious, it should be recognized as an accomplice to illegal business.

Ministry of Commerce Responds to Review of Meta’s Acquisition of Manus: Foreign Investment Activities Must Comply with Chinese Laws and Regulations

According to Xinhua News Agency, spokesperson He Yadong responded to questions about the review of Meta’s acquisition of AI platform Manus, stating that the Chinese government has always supported enterprises in conducting mutually beneficial international business and technological cooperation in accordance with laws and regulations. It should be noted that activities such as foreign investment, technology export, data outbound transfer, and cross-border mergers and acquisitions must comply with Chinese laws and regulations and follow legal procedures. The Ministry of Commerce will coordinate with relevant departments to evaluate the consistency of this acquisition with export controls, technology import/export, and foreign investment laws and regulations.

Project Updates

Flare Launches First XRP Spot Trading Pair on Hyperliquid

According to The Block, Flare announced that its FXRP token, issued via its FAssets system, is now live on Hyperliquid, marking the first XRP spot trading on the platform. Previously, Hyperliquid only supported XRP perpetual contracts. FXRP is a 1:1 pegged cross-chain token of XRP, capable of circulating across multiple chains and supporting future redemption to the XRP mainnet via Flare smart accounts.

Solana Mobile Airdrops 2 Billion SKR Tokens to Seeker Users on January 21

Solana Mobile announced that on January 21, 2026, at 10:00 (UTC+8), it will airdrop its native token SKR to Seeker mobile users and ecosystem developers, with an initial airdrop of 2 billion tokens, representing 20% of the total supply. The first season of Seeker activities includes 265 dApps, 9 million transactions, and $2.6 billion in trading volume. Note that early Solana Saga mobile users are not included in this airdrop.

PMX Trading Bot Attacked, Users Lose $230,000

According to an official announcement from PMX, its Polycule trading bot was exploited by hackers last night, resulting in user funds being stolen. The source of the vulnerability has been identified, and a fix and audit will be deployed by the end of this week. The company states that only about $230,000 worth of user funds were affected. After system restoration, affected users on the Polygon chain will be compensated via vaults, restoring their balances to pre-attack levels.

Wyoming Official Stablecoin FRNT Officially Launched via Kraken on Solana

According to Wyoming Stable Token Commission, Wyoming has officially approved the public issuance of its government-backed fiat reserve stablecoin “FRNT” through Kraken exchange, making it the first stablecoin issued by a public entity and fully backed by reserves in the U.S. FRNT is deployed on Solana and can be bridged to Ethereum, Arbitrum, and other multi-chain networks via Stargate. It is aimed at individuals and institutions, supporting instant settlement and low transaction fees of as low as $0.01. The reserve interest will be used to support education within the state.

World Liberty Applies for U.S. National Bank License

According to The Wall Street Journal, World Liberty Financial, a crypto business under the Trump family, has submitted a de novo application to the Office of the Comptroller of the Currency (OCC) for a national bank license.

WisdomTree Withdraws S-1 Registration for Spot XRP ETF

According to Cryptopolitan, WisdomTree has officially withdrawn its registration statement for the proposed spot XRP ETF. In the documents filed on Tuesday, the company stated it has “decided not to proceed at this time” and requested the SEC to withdraw the registration statement and all related exhibits and amendments. Previously, WisdomTree submitted S-1 registration documents related to a spot XRP ETF to the SEC in December 2024.

Rumble and Tether Launch Non-Custodial Crypto Wallet Rumble Wallet

According to GlobeNewswire, video sharing platform Rumble and stablecoin issuer Tether announced the joint launch of Rumble Wallet, a non-custodial crypto wallet that can be integrated directly into the Rumble platform. The wallet will support USDT, XAUt, and Bitcoin, allowing users to tip creators directly in cryptocurrencies. It also supports embedding crypto payments into the video sharing platform, eliminating the need for intermediaries like ad networks, banks, or payment processors, enabling creators to receive payments directly from viewers. MoonPay will provide full crypto deposit and withdrawal channels for Rumble Wallet users.

Morgan Stanley Submits Ethereum ETF Application to SEC

According to market sources, Morgan Stanley has submitted an application for an Ethereum ETF to the SEC. Earlier, it was reported that Morgan Stanley also submitted S-1 filings for Solana Trust and Bitcoin Trust.

Coinbase Adds RAY, ENERGY, ELSA, and FUN to Listing Roadmap

Coinbase announced plans to list Raydium (RAY), Energy Dollar (ENERGY), Elsa (ELSA@, and Sport.fun (FUN). Trading will commence once market-making support and technical infrastructure conditions are met; specific timelines will be announced later.

Binance Alpha Launches DeepNode (DN) Airdrop on January 9

Binance Chinese official Twitter announced that Binance Alpha will launch DeepNode (DN) on January 9. Eligible users can claim DN airdrops using Alpha points on the Alpha activity page after trading opens. Details will be announced separately.

Binance to Remove 1000SATS/FDUSD, AEVO/BTC, and Other Spot Trading Pairs on January 9

According to Binance, to maintain market quality, the platform will delist several spot trading pairs at 11:00 (UTC+8) on January 9, 2026, including 1000SATS/FDUSD, 2Z/BNB, AEVO/BTC, BARD/FDUSD, BIO/BNB, DOLO/FDUSD, EDEN/BNB, EDEN/FDUSD, EGLD/BNB, ETHFI/FDUSD, GLMR/BTC, HOT/ETH, HUMA/FDUSD, IOTA/ETH, KAITO/BTC, MIRA/FDUSD, MORPHO/BNB, MORPHO/FDUSD, NEIRO/FDUSD, RONIN/FDUSD, SOMI/BNB, SSV/ETH, and TURTLE/BNB, due to insufficient liquidity and trading volume. Tokens of delisted pairs can still be traded via other pairs; related trading bot services will also be terminated. Users should adjust strategies promptly to avoid losses.

Binance Launches Binance Life (币安人生) and zkPass (ZKP) with Seed Tags

According to official announcement, Binance will launch Binance Life (币安人生) and zkPass (ZKP) at 22:00 (UTC+8) on January 7, 2026, and open the following spot trading pairs: Binance Life/USDT, Binance Life/USDC, Binance Life/TRY, ZKP/USDT, ZKP/USDC, ZKP/TRY. Deposit channels for Binance Life and ZKP will open one hour later; withdrawals are expected to open at 20:30 (UTC+8) on January 7, 2026. Seed tags will be applied to Binance Life and ZKP.

Nike Sells Its Digital Product Subsidiary RTFKT

According to Cryptopolitan, Nike reportedly sold its digital product subsidiary RTFKT in December 2025, further implementing its plan to “end” its NFT division by the end of January. The sportswear giant announced last year that it would cease NFT operations and other blockchain-based projects. Nike confirmed in a brief statement that the sale of RTFKT took effect on December 16, and the company and its community are “turning a new page,” though the buyer and terms were not disclosed. The statement added: “Nike will continue to invest in delivering innovative products and experiences in physical, digital, and virtual environments.” This suggests that despite exiting certain NFT markets, Nike still intends to expand its digital business.

Analysis & Opinions

Vitalik: Ethereum Should Prioritize Increasing Bandwidth Over Ultra-Low Latency, L2 Will Play a Long-Term Key Role

Vitalik Buterin posted on X that increasing bandwidth is safer and more reliable than reducing latency. With PeerDAS and ZKP, Ethereum scalability can be improved by thousands of times, without conflicting with decentralization. Latency, however, is limited by physical laws and real-world conditions, especially for supporting global home nodes, censorship resistance, and anonymity. He suggests that reducing latency to 2–4 seconds is a reasonable goal, while applications requiring higher real-time performance (like AI-driven) will rely on L2 and “city chains” for localized expansion.

Earlier, Vitalik said: Ethereum is like Linux, balancing technical purity with large-scale trust applications.

a16z Crypto: Privacy Will Become the Most Important Competitive Advantage in Crypto by 2026

According to The Block, a16z Crypto general partner Ali Yahya stated in a blog post that by 2026, privacy will be the most critical differentiator for blockchain networks. Privacy is a key missing feature that hinders the global financial shift to on-chain activities and is still lacking in most blockchains. Although throughput and fees have become more uniform across networks, privacy alone can now serve as a powerful factor to distinguish chains and lock in users. The emphasis on privacy extends beyond blockchain itself. Shane Mac, co-founder and CEO of XMTP Labs, wrote in a16z Crypto’s blog that as concerns over quantum computing grow, the next phase of secure communication will require combining decentralization with cryptography. Mac calls for open protocols where users fully own their messages and identities without a single controlling entity. a16z Crypto also stresses the need for “confidentiality as a service,” positioning privacy as a core infrastructure. Adeniyi Abiodun of Mysten Labs pointed out that organizations need encrypted access to sensitive data; the lack of native data access controls will force enterprises to adopt centralized systems with limited interoperability, while programmable access rules can unlock on-chain systems. Security remains a core issue. Daejun Park, a cryptography engineer at a16z Crypto, noted that attacks in DeFi in 2025 exposed limitations of the current audit-driven security model, and the industry must shift from “code as law” to “norms as law.”

Analysis: MSCI’s “Hidden Clause” May Cut Off Strategy’s Incremental Fund Flows

According to CryptoSlate, MSCI, a global provider of stock and ETF benchmarks, announced it will not remove Bitcoin trust Strategy for now. However, a hidden clause—“MSCI will not implement any increases to the Number of Shares (NOS)”—has attracted community attention. This clause means that shares issued via ATM by Strategy will not be included in MSCI indices’ weights, nor will they trigger passive fund buying. MSCI recognizes the existence of crypto reserve stocks but refuses to continue providing passive capital for ATM issuance. Even if Strategy issues more shares, passive funds will not follow with purchases, cutting off incremental capital. This breaks the previous “infinite funding cycle” where Strategy relied on issuing new shares to buy Bitcoin, supported by ETF-driven stock price support. Besides Strategy, other potential affected Bitcoin trusts include Metaplanet and Capital B.

Investment & Financing

Babylon, a Decentralized Protocol, Completes $15 Million Funding Round Led by a16z Crypto

According to Fortune, Babylon, a decentralized protocol co-founded by Stanford professor David Tse, completed a $15 million funding round led by Andreessen Horowitz’s a16z Crypto, valuation undisclosed. Babylon developed BTCVaults, a protocol allowing Bitcoin holders to directly collateralize their Bitcoin without third parties (like exchanges or stablecoin issuers), while retaining control. The protocol plans to integrate with lending platform Aave in Q2 2026. Tse said the goal is to help users bypass intermediaries and generate yields directly from Bitcoin assets. Founded in 2021, Babylon has over 40 team members and has not yet generated revenue.

Fireblocks Acquires Crypto Accounting Platform TRES Finance for $130 Million

According to Fortune, blockchain infrastructure firm Fireblocks has agreed to acquire crypto accounting platform TRES Finance for $130 million in cash and equity. This is Fireblocks’ second acquisition in three months, after acquiring crypto wallet startup Dynamic for about $90 million in October 2024. Fireblocks co-founder and CEO Michael Shaulov said the acquisition will help provide more comprehensive treasury management solutions for enterprise clients. TRES Finance, founded in 2022, offers a platform to help CFOs and accountants track crypto assets across multiple platforms and wallets. Its clients include VC CoinFund, analytics platform Nansen, and the team behind crypto wallet Phantom. TRES raised $11 million in late 2023, and co-founder and CEO Tal Zackon said the purchase price was above the company’s recent valuation.

QiangNao Tech: Completes 2 Billion Yuan Funding, Aims to Help One Million Disabled Return to Society in 5–10 Years

According to Shanghai Securities News, QiangNao Tech, one of the “Six Little Dragons” in Hangzhou, completed about 2 billion yuan in funding, setting a global second-largest record in brain-computer interface (BCI) funding after Neuralink. A company representative said the funds will be used to accelerate core BCI technology R&D, engineering breakthroughs, product scaling, and mass production. The goal is to help 1 million people with limb disabilities within five to ten years by wearing neural-controlled prosthetics, restoring daily life and social integration; improve the lives of 10 million patients suffering from autism, ADHD, Alzheimer’s, insomnia, and other brain diseases; and enable ordinary people to directly interact with the world via brain-machine interfaces, reshaping future human-machine integration.

Anthropic Plans to Raise $10 Billion at a $350 Billion Valuation

AI startup Anthropic plans to raise $10 billion in a new funding round, valuing the company at $350 billion before new investments. Sources say Singapore’s GIC and Cotai management are leading the round. The funding is expected to close in the coming weeks, with total deal size subject to change. In September last year, the company raised $13 billion from investors, nearly tripling its valuation to $183 billion at that time.

( Institutions

Bitmine Pledges Over 100,000 ETH Again, Total Staked Nearly 910,000 ETH

According to Onchain Lens, Bitmine added another 109,504 ETH today, worth about $344 million, bringing total staked ETH to 908,192 ETH, valued at approximately $2.95 billion.

Earlier today, it was reported that Bitmine staked an additional 19,200 ETH, worth about $60.85 million.

Upexi Discloses Increased Holdings of 67,594 SOL, Total Holdings Exceed 2.174 Million

According to GlobeNewswire, Nasdaq-listed Solana treasury company Upexi updated its SOL holdings, revealing an increase of 67,594 SOL. As of January 5, 2026, total SOL holdings reached 2,174,583, with a market value exceeding $300 million at current prices. The company also announced repurchasing 416,226 shares at an average price of $1.92 per share, actively deploying capital to buy more SOL and repurchase shares.

Riot Platforms Sold 1,818 BTC in December 2025, Cashing Out $161.6 Million

According to The Block, based on Riot Platforms’ latest monthly production report, the company sold 1,818 BTC in December, cashing out $161.6 million. Its Bitcoin holdings decreased from 19,368 BTC at the end of November to 18,005 BTC. The average sale price was $88,870 per BTC, down from $96,560 in November, but total sales revenue increased by 337% month-over-month from $37 million to $161.6 million. Notably, the December sale set Riot’s monthly Bitcoin sales record and was its third net reduction of holdings in 2025. The report shows that the company mined 460 BTC that month, up 8% from November’s 428 BTC but down 11% from December 2024’s 516 BTC.

) Key Data

Bitcoin Spot ETF Net Outflows of $486 Million in One Day, Fidelity FBTC Largest Outflow

According to SoSoValue, on January 7, U.S. Eastern time, Bitcoin spot ETFs experienced a total net outflow of $486 million in one day. Fidelity FBTC led with outflows of $248 million, BlackRock IBIT with $130 million. As of now, the total net asset value of Bitcoin spot ETFs is $118.364 billion, with cumulative net inflows of $57.052 billion, accounting for 6.51% of BTC’s total market cap.

Bitcoin Mining Difficulty Down 1.20% to 146.47 T

Whale Deposits $5 Million into HyperLiquid and Opens 3x BTC Long, Buys 180,000 HYPE

Whale 0xfb7 closed BTC position and bought 10,000 ETH, converting to stETH

A whale’s BTC long position has grown to $259 million, ranking first among Hyperliquid BTC longs

A transfer of ZKP tokens worth $4.85 million from a team wallet to Binance

A whale recently deposited 15.5 million USDC into Hyperliquid and went long on 2,070 BTC

“Whale Profiting from Multiple ETH Swing Trades” has increased its BTC long to 1,700 BTC, with an unrealized loss of $600,000