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If you thought your ex was good at hiding things, meet the Crypto Queen who stashed 61,000 BTC before getting caught in the biggest crypto seizure ever. And while that saga ends in handcuffs, another empire is quietly unraveling — the stablecoin duopoly is cracking, and the challengers aren’t playing nice. Let’s dig into the downfall and the drama.
Editors Corner
The Stablecoin Duopoly is Crumbling
The stablecoin market, long ruled by Tether (USDT) and Circle’s USDC with an 86% share and $245 billion supply, is shifting, per Nic Carter’s analysis. Technological innovation, regulation, and new entrants are shaking things up. As someone fascinated by this space, I’m excited to break it down for you!
A Regulatory Shift
The GENIUS Act, signed last week by President Trump, is a big deal—it lets banks issue stablecoins without new charters, requiring 100% liquid asset backing and public disclosures. This levels the playing field, and reports from the Wall Street Journal hint that JPMorgan, Citi, and others might form a consortium. Imagine trillions from their deposits flooding the current $300 billion market—talk about a game-changer! It’s clear regulators are finally catching up to this crypto boom.
Innovation Breaks Barriers
Bridge’s Open Issuance launch on September 30 brought Phantom Cash, a yield-bearing stablecoin with debit card perks, showing how wallets are getting in on the action. Startups are also jumping in, using low-cost solutions from Anchorage and M0 to create their own stables. I’ve heard from folks in the industry that even small fintechs are testing these tools, proving the barrier to entry is dropping fast. It’s like a startup gold rush!
Yield Sparks Change
Tether’s no-yield stance is looking outdated, while Ethena’s USDe ($14.7 billion) and others share profits to lure users. The World Economic Forum noted 2024 stablecoin volumes beat Visa/Mastercard, and with cross-chain swaps getting smoother, a yield race could really dent the duopoly. I’ve seen DeFi platforms like Hyperliquid already pushing their own stables, and it’s wild to think how this could reshape user incentives.
What’s Next?
Tether and USDC still dominate with tight FX spreads and global liquidity, but local fiat onramps and clearinghouses are eating into that edge. Banks, fintechs, and DeFi players are eyeing the float revenue Tether and Circle hog, with exchanges like Coinbase striking yield deals. The GENIUS Act’s yield-sharing loopholes are sparking debates—will regulators tighten them or let the market run? I’m leaning toward more innovation.
Carter says the race is just starting—will the duopoly survive this onslaught? With banks possibly joining and intermediaries taking charge, the next few years could get chaotic yet exciting. As an AI nerd, I’m rooting for a fragmented, creative market. Check Nic’s full scoop on X Here
Today’s Report
Crypto Queen Caught with 61,000 BTC in Worlds Biggest Crypto Seizure
Our Report
A Chinese national, Zhimin Qian (also known as Yadi Zhang), has been convicted in the UK after a multiyear fraud scheme involving cryptocurrency. Authorities say the case resulted in what’s being called the world’s largest-ever Bitcoin seizure, totaling ~61,000 BTC (worth ~$6.7 billion). The original fraud targeted 128,000 victims between 2014 and 2017 under a “dividend promise” scheme. Now, legal and jurisdictional fireworks are expected over how to redistribute or manage the seized crypto.
🔓Key Points
Between 2014–2017, Qian allegedly ran a scheme in China promising steady dividend-style returns to investors.
She fled to the UK using forged documents, and in a seven‑year investigation, UK authorities traced and seized 61,000 BTC.
The crypto haul is now valued far above its original cost, thanks to Bitcoin’s run-up.
Qian was convicted for acquiring and possessing criminal property (avoiding a direct fraud conviction due to jurisdictional constraints).
Legal recovery is underway via the UK’s Proceeds of Crime Act; victims must prove their claims to portions of the assets.
The case raises intense questions about cross‑border asset recovery, crypto classification under law, and whether the government can or should use seized crypto assets for public purposes.
Relevance
This isn’t just headline drama — it’s a turning point. The Qian case spotlights how enforcement, law, and crypto markets are colliding. For one, it challenges how courts treat digital assets: is seized crypto “property” you can liquidate, or subject to special rules? Victims will have to navigate proofs of ownership under law — not just private keys and blockchains.
Furthermore, this sets a precedent: governments may now feel more empowered to go after huge crypto frauds, but they’ll also encounter tricky questions about jurisdiction, valuation, and market impacts (e.g. offloading 61,000 BTC could rock the market). Meanwhile, traders and institutions watching regulation will see this as a signal: crypto assets are now very much in the legal crosshairs.
The real drama is still ahead — in the courtroom (possibly up to the UK Supreme Court) and in what happens to those billions in Bitcoin.
Today’s Top News
HEADLINES
25 offshore crypto exchanges face govt action, including Huione, CEX.IO, BingX — Among the named platforms facing scrutiny are Huione, CEX.IO, and BingX. Indian regulators are pressing these exchanges to comply with KYC/AML norms or face sanctions. The crackdown demonstrates that even large exchanges can be targeted under national regulation.
AI‑fueled crypto scams are booming, up 456% — expert warns — From May 2024 to April 2025, AI‑driven crypto scams surged ~456%, using tools like deepfakes and AI voices to impersonate individuals. Scammers have stolen over $10.7 billion globally in 2024 through advanced deception tactics. Authorities warn that public vigilance is increasingly vital.
Crypto laundering mastermind pleads guilty in London court — In London, Qian admitted to laundering criminal assets via Bitcoin in a case stemming from fraud in China and hiding under aliases abroad. The prior seizure of 61,000 BTC was central to the UK’s case. The case underlines the global nature of crypto fraud and enforcement complexity.
Rise of stablecoins could undermine euro area monetary policy, ECB warns — The ECB is cautioning that widespread use of US dollar–pegged stablecoins could erode its control over monetary policy in the eurozone. If stablecoins become integral to payments and savings, the ECB’s monetary tools may be less effective. The institution is advocating for a digital euro to defend monetary sovereignty.
Market Trendline
PRICE ACTION
The crypto complex is holding its ground rather than charging forward. Bitcoin and Ethereum are consolidating after their recent run, with broader market gains being carried by speculative alts and memecoins. Liquidity is thin, and any macro or regulatory whispers are enough to tilt sentiment.
Notable Movers
Bonk / Meme‑specs: As often, meme tokens are doing the heavy lifting. Bonk and its cohort are among the top performers, riding waves of retail attention and momentum chasing.
Zcash (ZEC): Showing strength in privacy‑coin space, ZEC turned in one of the larger 24 h gains. Some of that is technical bounce, some is repositioning ahead of protocol or regulatory chatter.
Alt / DeFi pockets: Several mid‑cap DeFi tokens are punching above trend, likely fueled by rotation out of large‑cap into higher beta plays.
Macro / Narrative Tailwinds & Headwinds
Rate Cut Hope: Inflation data remains the main wildcard. Any undershoot makes traders whisper “Fed loosening,” which lifts risk assets.
Regulation Watch: Regulatory noise from the U.S. and India continues to hang over the market; compliance crackdowns or enforcement actions could spook momentum trades.
“Alt‑season” rotation: With Bitcoin and Ethereum relatively stuck, capital is bleeding sideways into higher volatility names, meaning dispersion is high.
Bottom Line
The market is treading water: no broad breakout, but volatility and dispersion are alive. Big names are rangebound, leaving speculative and niche plays to write the daily leaderboard. If macro sentiment shifts (inflation, central banks, regulatory actions), we’ll see whether this environment breaks bullish or cracks fragile.
Today’s Top Meme
MEME GOD
Hyperliquid maxis hearing someone mention Aster
— #Alan Carroll (#@alancarroII)
6:02 PM • Sep 23, 2025
Today’s Top Tweet
TWITTER NEVER SLEEPS
Not predicting the future. And don't get too excited.
A September in a past (my first) crypto cycle. Just data. 🤷♂️
— #CZ 🔶 BNB (#@cz_binance)
10:06 AM • Sep 30, 2025
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.