What happened to Solana?

Good morning. Several thousand Solana hot wallets have been hacked and drained of funds, Michael Saylor steps down as CEO of MicroStrategy, and Magic Eden expands to Ethereum-based NFTs. That's all right here, right now in the CT5!

Market Update (as of 8:16am ET):

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Top 5:

1. Solana wallets targeted in latest multimillion dollar hack. The Solana ecosystem was targeted in an attack that drained funds from users' internet-connected “hot” wallets including Phantom, Slope and TrustWallet. More than 8,000 wallets have been impacted and more than $5 million worth of tokens have been stolen. The root cause of the attack is being investigated, but remains unclear. What is clear is that cold-storage wallets were not impacted and remain a much safer option for securely storing crypto.

2. Solana marketplace Magic Eden to offer Ethereum NFTs. Magic Eden is returning fire at OpenSea by offering Ethereum NFTs on the Solana-based NFT exchange after OpenSea first began offering Solana NFT trading earlier this year. The Ethereum offering will see Magic Eden operate as a marketplace aggregator rather than a platform for listings. On the Solana network, Magic Eden controls handles approximately 90% of all NFT trading volume and has seen $2.5 billion in trading volume so far this year. Rollout of the new functionality will begin this month along with other enhancements including a launchpad to help users create new NFT projects, an "allowlist" feature so projects can control which users can mint their NFTs, and a drop calendar that tracks upcoming NFT launches.

3. MicroStrategy's bitcoin maximalist CEO Saylor hands job to deputy. Michael Saylor, the founder and CEO of MicroStrategy, has handed over the reins to the company's president, Phong Le, and will now serve as MicroStrategy's executive chairman. In a statement announcing the change, Saylor said that as executive chairman he "will be able to focus more on [MicroStrategy's] bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage overall corporate operations." Saylor still controls 68% of the company's voting shares, so don't expect any change in the bitcoin strategy anytime soon.

3. SEC charges 11 in alleged $300M crypto pyramid scheme.

4. Robinhood's crypto division slapped with $30 million fine. On Monday the crypto arm of the popular no-fee trading app was hit with a $30 million fine from the New York State Department of Financial Services. NYDFS alleges that Robinhood violated anti-money laundering and cybersecurity regulations and that the firm's Bank Secrecy Act and anti-money laundering compliance programs were not adequately staffed. In addition to the fine, Robinhood will now be required to maintain independent consultants to evaluate compliance with state regulations and its remediation efforts.

5. Senate plan would put bitcoin, Ether under commodity regulator’s watch. Leaders of the Senate Agriculture Committee are set to propose legislation that would assign oversight of the two largest cryptocurrencies to the Commodity Futures Trading Commission (CFTC). The bill would assign the CFTC authority of spot markets for "digital commodities", a newly created asset class. The proposed law would also require, "any entity acting as a digital commodity platform—including crypto exchanges such as Coinbase and FTX—to register with the CFTC as trading facilities, dealers or brokers."

Updates and other stories:
- TD Bank buys Cowen in TradFi push with crypto twist...Read More
- Crypto intelligence firm Messari acquires web3’s version of Crunchbase...Read More
- Crypto exchange Zipmex to allow users to withdraw some tokens...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.