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

Today's top news highlights:

Prince Group founder Chen Zhi has been extradited back to China on suspicion of multiple crimes, including operating casinos and fraud.

The U.S. Senate Banking Committee has set January 15 as the date for its review of the cryptocurrency market structure bill.

Rumble and Tether jointly launch the non-custodial crypto wallet, Rumble Wallet.

Decentralized protocol Babylon raises $15 million, led by a16z Crypto.

Fireblocks acquires crypto accounting platform TRES Finance for $130 million

Solana Mobile will airdrop 2 billion SKR tokens to Seeker users on January 21st.

Analysis: MSCI's "hidden clauses" may cut off incremental capital inflows into Strategy.

A seminar held by the Shanghai No. 2 Intermediate People's Court on "Unified Application of Law in Virtual Currency Crime Cases" concluded that individual holding and trading of virtual currency is generally not considered a crime of illegal business operations.

Macro & Regulatory

Prince Group founder Chen Zhi has been extradited back to China on suspicion of multiple crimes, including operating casinos and fraud.

According to a Ministry of Public Security announcement on January 8th, on January 7th, with the support and cooperation of relevant Cambodian departments, the Ministry of Public Security dispatched a working group and successfully extradited Chen Zhi (a Chinese national), the head of a major cross-border gambling and fraud crime syndicate, from Phnom Penh, Cambodia, back to China. This is another significant achievement in China-Cambodia law enforcement cooperation. Investigations revealed that Chen Zhi's criminal syndicate is suspected of multiple crimes, including operating casinos, fraud, illegal business operations, and concealing criminal proceeds. Currently, Chen Zhi has been placed under coercive measures in accordance with the law, and the relevant cases are under further investigation. A relevant official from the Ministry of Public Security stated that the public security organs will soon issue arrest warrants for the first batch of key members of Chen Zhi's criminal syndicate, resolutely bringing fugitives to justice. The public security organs solemnly warn criminals to recognize the situation, stop their wrongdoing, and immediately surrender themselves to the authorities to seek lenient treatment.

Earlier reports yesterday indicated that Chen Zhi, founder of the Prince Group, had been arrested and extradited to China .

The U.S. Senate Banking Committee has set January 15 as the date for its review of the cryptocurrency market structure bill.

According to Finance Feeds, the legislative landscape for the US cryptocurrency industry has reached a critical turning point, with the Senate Banking Committee officially setting the date for deliberation on the Digital Asset Market Transparency Act (CLARITY Act, also known as the Crypto Market Structure Act) for Thursday, January 15, 2026. Committee Chairman Tim Scott, a Republican from South Carolina, announced the decision after a series of tense closed-door meetings in early January. Senator Scott emphasized that the committee would proceed with the formal vote regardless of the difficulties encountered. The Republican leadership views this deadline as strategically necessary, racing against time to complete legislation before the January 30 deadline for critical federal spending, which could trigger another government shutdown. The committee hopes that next Thursday's vote will allow the bill to reach the full Senate for consideration, given the current administration's continued strong support for cryptocurrencies.

US ADP employment figures for December were 41,000, below the expected 47,000.

According to Jinshi News, the US ADP employment figure for December was 41,000, below the expected 47,000 and the previous figure of -32,000.

A seminar held by the Shanghai No. 2 Intermediate People's Court on "Unified Application of Law in Virtual Currency Crime Cases" concluded that individual holding and trading of virtual currency is generally not considered a crime of illegal business operations.

The Shanghai No. 2 Intermediate People's Court recently held a seminar on "Unified Application of Law in Virtual Currency-Related Crimes," analyzing three topics, including: 1. The determination of "subjective knowledge" in virtual currency money laundering crimes should be based on a comprehensive assessment to prevent objective attribution of guilt. 2. The determination of the types of conduct and standards for completion in virtual currency money laundering crimes: First, accurately grasping the essence of the crime—"concealing or disguising the source and nature of criminal proceeds and profits"; second, the act of concealing or disguising criminal proceeds and profits as stipulated in the elements of money laundering crimes constitutes a completed crime; third, strictly cracking down on money laundering crimes according to law to resolutely safeguard national financial security. 3. The determination of illegal business operations involving virtual currencies: If the conduct does not have the characteristics of business operations and is merely personal holding or trading of virtual currency, it is generally not considered illegal business operations. However, if the person knowingly provides assistance to others in illegally buying or selling or indirectly buying and selling foreign exchange through the exchange of virtual currency, and the circumstances are serious, they should be considered an accomplice to the crime of illegal business operations.

The Ministry of Commerce responded to the review of Meta's acquisition of Manus: Enterprises engaging in overseas investment and other activities must comply with Chinese laws and regulations.

According to Xinhua News Agency, He Yadong, spokesperson for the Ministry of Commerce, stated in response to questions regarding the review of Meta's acquisition of the artificial intelligence platform Manus that the Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations. It should be noted that enterprises engaging in overseas investment, technology export, data transfer, and cross-border mergers and acquisitions must comply with Chinese laws and regulations and follow legal procedures. The Ministry of Commerce will work with relevant departments to conduct an assessment and investigation into the consistency of this acquisition with relevant laws and regulations concerning export controls, technology import and export, and overseas investment.

Project Updates

Flare launches its first XRP spot trading pair on Hyperliquid

According to The Block, Flare announced that FXRP, issued through its FAssets system, has officially launched on the Hyperliquid platform, marking the first time XRP spot trading has been available on the platform. Previously, Hyperliquid only supported XRP perpetual contract trading. FXRP is a cross-chain token pegged 1:1 to XRP, allowing it to circulate across multiple chains and supporting one-click redemption to the XRP mainnet via Flare smart accounts in the future.

Solana Mobile will airdrop 2 billion SKR tokens to Seeker users on January 21st.

Solana Mobile announced that it will airdrop its native token SKR to Seeker mobile users and ecosystem developers on January 21, 2026 at 10:00 AM (UTC+8), with the initial airdrop representing 20% of the total supply (2 billion SKR). The first quarter of Seeker activity saw 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 compromised by a vulnerability exploited by hackers last night, resulting in the theft of user funds. The source of the vulnerability has been identified, and a patch and audit will be released this weekend. PMX stated that only approximately $230,000 in user funds were affected, and once the system is restored, affected users on the Polygon blockchain will be compensated through a vault, restoring their balances to pre-attack levels.

Wyoming's official stablecoin, FRNT, has been officially launched to the public through Kraken and deployed on the Solana blockchain.

According to an announcement from the Wyoming Stable Token Commission, the state of Wyoming has officially launched its government-backed fiat-reserve stablecoin, FRNT, through the Kraken exchange, becoming the first publicly issued and fully reserve-backed stablecoin in the United States. FRNT is deployed on the Solana blockchain and can be bridged to multiple blockchain networks, including Ethereum and Arbitrum, via Stargate. The coin is available to individuals and institutions, supports near-instantaneous settlement, and has transaction fees as low as $0.01. Its reserve interest will be used to support education within the state.

World Liberty applies for a U.S. national banking license.

According to The Wall Street Journal, World Liberty Financial, the crypto business owned by the Trump family, said its entity, World Liberty Trust, has filed a de novo application with the Office of the Comptroller of the Currency (OCC) seeking a nationwide banking license.

WisdomTree withdraws its S-1 registration application for its spot XRP ETF.

According to Cryptopolitan, WisdomTree has officially withdrawn its proposed registration application for a spot XRP ETF. In a filing submitted Tuesday, the company stated that it has "decided not to proceed with" the product launch at this time and requested the SEC to withdraw its registration statement and all accompanying exhibits and amendments. WisdomTree had previously filed its S-1 registration document for a spot XRP ETF with the SEC in December 2024.

Rumble and Tether jointly launch the 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 integrates directly into the Rumble platform. The wallet will support USDT, XAUt, and Bitcoin, allowing users to tip creators directly in cryptocurrency. It also supports embedding cryptocurrency payments into video-sharing platforms, eliminating the need for intermediaries such as ad networks, banks, or payment processors, allowing creators to receive payments directly from viewers. MoonPay will provide Rumble Wallet users with end-to-end cryptocurrency inflow and outflow.

Morgan Stanley submits Ethereum ETF application to the U.S. Securities and Exchange Commission

According to market sources, Morgan Stanley has submitted an application to the U.S. Securities and Exchange Commission (SEC) for an Ethereum ETF. This follows yesterday's report that Morgan Stanley submitted S-1 filings for the Solana Trust and the Bitcoin Trust to the SEC.

Coinbase has included RAY, ENERGY, ELSA, and FUN in its listing roadmap.

Coinbase has announced that Raydium (RAY), Energy Dollar (ENERGY), Elsa (ELSA), and Sport.fun (FUN) have been added to its listing roadmap. Trading on these tokens will require market-making support and technical infrastructure conditions to be met. Specific timing will be announced later.

Binance Alpha will launch DeepNode (DN) airdrop on January 9th.

Binance Chinese tweeted that Binance Alpha will list the DeepNode (DN) project on January 9th. Eligible users can go to the Alpha event page after trading opens to receive the DN airdrop using Alpha points. Specific details will be announced separately.

Binance will delist several spot trading pairs, including 1000 SATS/FDUSD and AEVO/BTC, on January 9th.

According to a Binance announcement, to maintain the quality of the trading market, the platform will delist the following spot trading pairs at 11:00 AM UTC+8 on January 9, 2026: SATS/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. The reason given is insufficient liquidity and trading volume. The tokens associated with the delisted pairs can still be traded through other trading pairs, and the relevant trading bot services will be terminated simultaneously. Users should adjust their strategies promptly to avoid losses.

Binance has listed Binance Life (Binance Life) and zkPass (ZKP) and added seed tags to them.

According to the official announcement, Binance will list Binance Life (Binance Life) and ZKPass (ZKP) on January 7, 2026 at 22:00 (UTC+8) and open the following spot trading pairs: Binance Life/USDT, Binance Life/USDC, Binance Life/TRY, ZKP/USDT, ZKP/USDC, ZKP/TRY. Deposits 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 both Binance Life and ZKP.

Nike has sold its digital products subsidiary RTFKT

According to Cryptopolitan, Nike has reportedly sold its digital products subsidiary RTFKT in December 2025, further solidifying its plan to "end" its NFT division by the end of January. The sportswear giant announced last year that it would terminate its NFT business and other blockchain-based projects. Nike confirmed in a brief statement that the sale of RTFKT took effect on December 16th, and that the company and its community are "starting a new chapter," but did not disclose the buyer or the terms of the sale. The statement added, "Nike will continue to invest in the delivery of innovative products and experiences in physical, digital, and virtual environments." This likely indicates that despite exiting a specific NFT market, the company intends to continue expanding its digital business.

Analysis & Opinions

Vitalik: Ethereum should prioritize increasing bandwidth rather than pursuing extremely low latency; L2 will play a key role in the long term.

Vitalik Buterin stated in an article on the X platform that increasing bandwidth is more secure and reliable than reducing latency. With PeerDAS and ZKP, Ethereum's scalability can be improved thousands of times without conflicting with decentralization. Latency, on the other hand, is limited by physical laws and real-world environments, such as the need to support global home nodes, censorship resistance, and anonymity. He pointed out that reducing latency to within 2–4 seconds is a reasonable goal, while applications requiring higher real-time performance (such as AI-driven applications) will rely on localized scaling such as L2 and "city chains."

In previous reports, Vitalik Buterin stated that Ethereum, like Linux, should balance technological purity with large-scale trusted applications .

a16z Crypto: Privacy will become the most important competitive advantage in the crypto space by 2026.

According to The Block, Ali Yahya, general partner of a16z Crypto, stated in a blog post published on Tuesday that privacy will become the most important competitive differentiator for blockchain networks by 2026. Privacy is a key missing feature hindering the full shift of global finance to on-chain development, and it's a feature that most blockchains still lack. Although throughput and transaction fees across networks have converged, privacy alone is now a powerful factor in differentiating different chains and locking 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 post that with growing concerns about quantum computing, the next stage of secure communication will require a combination of decentralization and encryption. Mac called for the establishment of open protocols without a single controlling entity, where users have full ownership of messages and identities. a16z Crypto also emphasized the necessity of "confidentiality as a service," positioning privacy as a core infrastructure. Adeniyi Abiodun of Mysten Labs pointed out that institutions need cryptographic guarantees for access to sensitive data; the lack of native data access controls will force enterprises to adopt centralized systems that limit interoperability, while programmable access rules and other mechanisms can unlock on-chain systems. Security is also a core issue. Daejun Park, a crypto engineer at a16z Crypto, said that the attacks in the DeFi field in 2025 exposed the limitations of the current audit-led security model, and the industry needs to shift from "code is law" to "standards are law".

Analysis: MSCI's "hidden clauses" may cut off incremental capital inflows into Strategy.

According to CryptoSlate, MSCI, a global provider of stock and ETF market benchmarks, has announced that it will not remove Bitcoin treasury company Strategy for the time being. However, a hidden clause stating that "MSCI will not implement any increases to the Number of Shares (NOS)" has drawn community attention. This clause means that shares newly issued by Strategy through ATMs will not be included in the MSCI index weighting and will not trigger passive fund purchases. In other words, MSCI acknowledges the existence of cryptocurrency reserve stocks but refuses to continue providing passive funds to support ATM issuances. Even if Strategy issues more shares, passive funds will not follow suit, cutting off incremental funds and disrupting Strategy's "infinite funding cycle" of relying on issuing new shares to raise funds to purchase Bitcoin and then having ETFs force purchases to support the share price. Besides Strategy, other potentially affected Bitcoin treasury companies include Metaplanet and Capital B.

Investment and Financing

Decentralized protocol Babylon raises $15 million, led by a16z Crypto.

According to Fortune magazine, Babylon, a decentralized protocol co-founded by Stanford University professor David Tse, has raised $15 million in funding. The round was led by a16z Crypto, a subsidiary of Andreessen Horowitz. The project's valuation was not disclosed. Babylon has developed a protocol called BTCVaults, designed to allow Bitcoin holders to directly use their Bitcoin as collateral without going through third parties such as exchanges or stablecoin issuers, while retaining control of their assets. The protocol plans to integrate with the lending protocol Aave in the second quarter of 2026. Tse stated that its goal is to use cutting-edge technology to help users bypass intermediaries and generate returns more directly from their Bitcoin assets. Founded in 2021, Babylon currently has a team of over 40 people and has not yet generated revenue.

Fireblocks acquires crypto accounting platform TRES Finance for $130 million

According to Fortune magazine, blockchain infrastructure company Fireblocks has reached an agreement to acquire crypto accounting platform TRES Finance for $130 million in cash and equity. This is Fireblocks' second acquisition in three months, following its acquisition of crypto wallet startup Dynamic for approximately $90 million last October. Fireblocks co-founder and CEO Michael Shaulov stated that the acquisition of TRES will help the company provide enterprise clients with more comprehensive cash management solutions. Founded in 2022, TRES Finance's platform helps corporate TFOs and accountants track the flow of crypto assets across multiple platforms and wallets. Its clients include venture capital firm CoinFund, analytics platform Nansen, and the development team behind the crypto wallet Phantom. TRES completed an $11 million funding round in late 2023, and co-founder and CEO Tal Zackon stated that the acquisition price is higher than the company's most recent valuation.

Brainpower Technology: It has completed a financing round of 2 billion yuan and plans to help millions of disabled people reintegrate into society within five to ten years.

According to the Shanghai Securities News, BrainPower, one of the "Six Little Dragons of Hangzhou," has completed a financing round of approximately 2 billion yuan, setting a record for the second-largest financing in the brain-computer interface (BCI) field globally, excluding Neuralink, Elon Musk's company. A representative from BrainPower confirmed the completion of the financing, stating that the funds will be used to accelerate the research and development of core BCI technologies, achieve breakthroughs in extreme engineering, scale up product development, and bring the technology to mass production. The representative stated that the company aims to help 1 million people with physical disabilities regain their daily lives and reintegrate into society by wearing neuro-controlled prostheses within the next five to ten years. It also aims to improve the lives of 10 million patients suffering from autism, ADHD, Alzheimer's disease, insomnia, and other brain disorders. Finally, it aims to allow ordinary people to experience direct interaction with the world through brain-computer interface devices, reshaping the future of human-machine integration.

Anthropic plans to raise $10 billion at a valuation of $350 billion.

Artificial intelligence startup Anthropic plans to raise $10 billion in a new funding round, valuing the company at $350 billion before the new investment. Sources say Singapore's sovereign wealth fund GIC and Kotaui Management plan to lead the round. The round is expected to close in the coming weeks, though the total deal value may change. The company previously raised $13 billion in a funding round last September, nearly tripling its valuation to $183 billion.

mechanism

Bitmine has staked over 100,000 ETH again, bringing its total staked amount to nearly 910,000 ETH.

According to Onchain Lens, Bitmine has pledged an additional 109,504 ETH today, worth approximately $344 million, bringing its total pledged amount to 908,192 ETH, with a total value of approximately $2.95 billion.

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

Upexi disclosed that it has increased its holdings by 67,594 SOL tokens, bringing its total holdings to over 2.174 million tokens.

According to Globenewswire, Nasdaq-listed Solana treasury company Upexi updated its SOL holdings, disclosing that it has increased its holdings by 67,594 SOL tokens, bringing its total SOL holdings to 2,174,583 tokens as of January 5, 2026, with a market value exceeding $300 million at current prices. In addition, the company announced a share buyback of 416,226 shares at an average price of $1.92 per share, and continues to actively deploy capital for further SOL purchases and share buybacks.

Riot Platforms sold 1,818 bitcoins in December 2025, raising $161.6 million.

According to The Block, Riot Platforms (NASDAQ: RIOT) sold 1,818 Bitcoins in December, netting $161.6 million, reducing its Bitcoin reserves to 18,005 from 19,368 at the end of November. The company stated that its average Bitcoin price was $88,870, down 8% from $96,560 in November, but total Bitcoin sales revenue increased by 337% month-over-month, from $37 million to $161.6 million. Notably, according to its disclosures, the December sell-off marked Riot's largest single-month Bitcoin sale and is only the third net reduction in its reserve holdings in 2025. The update report shows that the company produced a total of 460 Bitcoins that month, an 8% increase from 428 in November, but an 11% decrease from 516 in December 2024.

Important data

Bitcoin spot ETFs saw a net outflow of $486 million in a single day, with Fidelity's FBTC experiencing the largest outflow.

According to SoSoValue data, on January 7th (Eastern Time), Bitcoin spot ETFs saw a total net outflow of $486 million, with Fidelity FBTC experiencing the largest net outflow at $248 million, followed by BlackRock IBIT at $130 million. As of now, the total net asset value of Bitcoin spot ETFs is $118.364 billion, with a cumulative net inflow of $57.052 billion, representing 6.51% of the total market capitalization of Bitcoin.

Bitcoin mining difficulty decreased by 1.20% to 146.47 T.

A whale deposited $5 million into HyperLiquid and opened a 3x long position in BTC, while simultaneously buying 180,000 HYPE tokens.

After closing out his BTC position, whale 0xfb7 bought 10,000 ETH and converted them into stETH.

A certain whale's BTC long positions have grown to $259 million, making it the top BTC long position on Hyperliquid.

$4.85 million worth of ZKP tokens were transferred from a team wallet to Binance.

A major whale recently deposited 15.5 million USDC into Hyperliquid and went long on 20.7 million BTC.

The "whale that profited from multiple ETH swings" has increased its BTC long position to 1700 BTC, and is currently experiencing a floating loss of $600,000.

According to a Ministry of Public Security announcement on January 8th, on January 7th, with the support and cooperation of relevant Cambodian departments, the Ministry of Public Security dispatched a working group and successfully extradited Chen Zhi (a Chinese national), the head of a major cross-border gambling and fraud crime syndicate, from Phnom Penh, Cambodia, back to China. This is another significant achievement in China-Cambodia law enforcement cooperation. Investigations revealed that Chen Zhi's criminal syndicate is suspected of multiple crimes, including operating casinos, fraud, illegal business operations, and concealing criminal proceeds. Currently, Chen Zhi has been placed under coercive measures in accordance with the law, and the relevant cases are under further investigation. A relevant official from the Ministry of Public Security stated that the public security organs will soon issue arrest warrants for the first batch of key members of Chen Zhi's criminal syndicate, resolutely bringing fugitives to justice. The public security organs solemnly warn criminals to recognize the situation, stop their wrongdoing, and immediately surrender themselves to the authorities to seek lenient treatment.

Earlier reports yesterday indicated that Chen Zhi, founder of the Prince Group, had been arrested and extradited to China .

The U.S. Senate Banking Committee has set January 15 as the date for its review of the cryptocurrency market structure bill.

According to Finance Feeds, the legislative landscape for the US cryptocurrency industry has reached a critical turning point, with the Senate Banking Committee officially setting the date for deliberation on the Digital Asset Market Transparency Act (CLARITY Act, also known as the Crypto Market Structure Act) for Thursday, January 15, 2026. Committee Chairman Tim Scott, a Republican from South Carolina, announced the decision after a series of tense closed-door meetings in early January. Senator Scott emphasized that the committee would proceed with the formal vote regardless of the difficulties encountered. The Republican leadership views this deadline as strategically necessary, racing against time to complete legislation before the January 30 deadline for critical federal spending, which could trigger another government shutdown. The committee hopes that next Thursday's vote will allow the bill to reach the full Senate for consideration, given the current administration's continued strong support for cryptocurrencies.