Crédit Mutuel Arkéa Confirms €100 Million Cyberattack

Crédit Mutuel Arkéa confirms cyberattack behind €100 million fraudulent transfers converted into crypto

Crédit Mutuel Arkéa has confirmed that it suffered an external cyberattack targeting its automated data processing systems, with hackers accessing the bank's own accounts to initiate fraudulent transfers worth around €100 million (＄112 million). The French regional banking group said the intrusion came through a service provider's platform, not its online banking subsidiary Fortuneo. The attackers moved the bank's funds to other financial institutions where they were converted into crypto assets.

Arkéa said the incident is now contained, stressed that affected accounts were the bank's own rather than customer accounts, and added that no client assets were lost and the loss is not material to the group's financial strength. Some of the stolen funds have reportedly been intercepted and blocked, and the bank said it is cooperating with the Paris prosecutor's office and law enforcement to recover the remainder.

Onchain investigator ZachXBT was first to flag the case, tracing more than ＄133 million in suspicious withdrawals to accounts at Kraken, Crypto.com and OKX. Kraken and Crypto.com said they restricted accounts or blocked funds tied to the suspected theft. Bitquery separately traced about ＄126 million in USDC withdrawn from the three exchanges over roughly 28 hours on November 1 and 2.

See announcement: https://cointelegraph.com/news/credit-mutuel-arkea-resumes-operations-133m-crypto-theft

South Korea seeks fourth crypto tax delay to 2029

South Korea's government plans to consult the National Assembly on postponing crypto asset income taxation by another two years to 2029, Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said on November 5. It would be the fourth delay of the regime, which was written into the Income Tax Act in December 2020 and was originally due to take effect in 2022 before being pushed back repeatedly.

Under the current framework, individual crypto gains above an annual basic deduction of 2.5 million won would be taxed at a combined 22% rate including local tax. Lee said the government needs more time to refine the system, citing the planned exchange of crypto asset tax information with the United States starting in 2029 and potential regulatory changes from the Digital Asset Act. He acknowledged that announcing a fourth postponement carries a credibility cost.

Seoul also plans to study allowing investors to carry losses forward for up to three years to offset future gains, and to set up a public-private working group to finalize detailed taxation standards. Korean media reported the decision less than two months before the tax was due to take effect.

See announcement: https://www.koreaherald.com/article/10927485

Aave DAO votes on onboarding Babylon BTC as collateral

Aave DAO has posted a Snapshot proposal to onboard native BTC as collateral on Aave V4 through Babylon's Trustless Bitcoin Vaults, allowing users to borrow stablecoins while their bitcoin stays locked on the Bitcoin network. Voting runs from 9:03 a.m. ET on November 6 to 9:03 a.m. ET on November 9. Aave's governance rules require 320,000 AAVE in voting power for the Snapshot stage, and a passing vote makes a binding governance commitment but does not itself activate a market.

The integration adds two modules, or Spokes. The Babylon Spoke would accept native BTC as its only collateral and draw loan assets from an Aave V4 liquidity Hub, while the BTC Vault Swap Spoke would handle liquidation settlement, since native BTC redemption takes several days. Depositors keep coins in Taproot UTXOs on Bitcoin, with no custodian or bridged wrapper holding the underlying assets.

LlamaRisk recommended an initial collateral cap of 300 BTC, a collateral factor of 78% and a maximum liquidation bonus of 5.55%, alongside a 100 WBTC draw cap for the swap spoke. These parameters have not been approved, and even a successful Snapshot vote would still require a separate onchain governance vote before the market could go live.

See announcement: https://governance.aave.com/t/arfc-onboard-native-btc-as-collateral-to-aave-v4-via-babylon-trustless-bitcoin-vaults/25845

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