This week in crypto saw major developments across security, adoption, and regulation. The Balancer Protocol suffered a $117M DeFi hack—ultimately totaling $128M—but managed to recover $19M within hours. Meanwhile, Western Union filed a patent for its upcoming stablecoin, following news of a planned 2026 launch. And in Asia, Hong Kong’s financial regulator eased crypto rules to encourage greater international market access.
To learn more, read on.
DeFi hack of Balancer protocol loss drops to $98M after $19M recovered
A significant breach of DeFi Balancer’s V2 Composable Stable Pools occurred on Monday, November 2, resulting in losses of approximately $117M, while across multiple chains, $128M was stolen.
While Yahoo Finance reported the initial breach and partial recovery via Stakewise, Crystal Intelligence analysts have since traced the stolen assets across multiple chains, swap protocols, and intermediary wallets. Despite the attackers’ efforts to conceal movements using rapid hops and decentralized exchanges, blockchain’s transparency has enabled a full reconstruction of the laundering route — identifying chokepoints, jurisdictions involved, and possible entry points for legal intervention.
Crystal’s tracing shows that around $24.5M (30%) of the stolen assets has already been consolidated into final destination wallets, with more than 52% now sitting in attacker-controlled addresses. Nearly 39% of the laundered funds passed through unlicensed peer-to-peer brokers deliberately chosen to evade KYC and oversight — platforms that often resist law-enforcement cooperation.
Real-time monitoring has now been established across the identified high-risk wallets, with automated alerts to flag fund movements into centralized exchanges or bridges — creating windows for potential asset freezes or recovery.
As a result of the attack, Balancer’s Total Value Locked (TVL) halved from $442M to $214.5M on the day. In response, a previously dormant whale withdrew a further $6.5M from the platform.
Why this matters
While the Balancer case highlights the sophistication of DeFi exploits, it also demonstrates how forensic blockchain tracing enables rapid response and supports law-enforcement intervention when handled in real time
Read more on Yahoo Finance.
Western Union enters crypto market by patenting stablecoin token with USPTO
The well-established, traditional send-and-receive and financial services company, Western Union, appears poised to begin offering cryptocurrency services, following its filing with the US Patent and Trademark Office (USPTO) for crypto services and its own stablecoin token, WUUSD.
This announcement came just days after the company revealed in late October 2025 that its stablecoin, the US Dollar Payment Token (USDPT), is set to launch on Solana in 2026.
The filing states that the trademark could be used for a range of cryptocurrency services, including wallets, trading, and stablecoin payment processing. Other developments listed in the filing include software for managing and verifying transactions, and for spending and trading cryptocurrency. Additional services mentioned are crypto exchange, payment processing, and financial brokerage services for cryptocurrency.
The filing also references crypto lending services, i.e. “conducting a securities and derivatives exchange.” While the USPTO has accepted the filing, the application has yet to be assigned to an examiner.
Why this matters:
For a traditional cash remittance company of Western Union’s size and longevity to enter the crypto space, as well as launch and patent its own stablecoin, speaks volumes about the scale and pace of digital asset adoption. The company’s compliance teams, responsible for how AML/KYC protocols are maintained as it ventures into new remittance territory, and government regulators will keep a keen eye on how those are managed.
Read more on Finance Magnates.
Hong Kong SFC’s crypto rules shift to access the global digital asset industry
Hong Kong’s adjustments to its digital asset rules show “a clear shift in focus from building guardrails to enabling growth,” according to financial strategy firm Clariant Advisory’s Joy Lam. She was speaking at the five-day Finternet 2025, Asia’s Digital Finance Summit, which opened on November 3, 2025.
Hong Kong’s financial securities regulator, the Securities and Futures Commission (SFC), is ramping up its crypto development plans and refining its rules to enhance the liquidity of local crypto trading platforms. It will also allow locally licensed crypto exchanges to integrate their order books with those of their affiliated platforms globally.
“What we had noticed,” said Elizabeth Wong, the SFC director of licensing and fintech unit head, “is that through the creation of a closed-loop environment, we had created a pocket of liquidity only for Hong Kong.” The SFC now aims to connect Hong Kong with global liquidity, enabling investors to access international markets and attract institutional trading to Hong Kong.
Also at Finternet 2025, the SFC’s Intermediary Division Executive Director, Eric Yip, stated that they are examining capital rules for crypto derivatives trading.
In contrast to the Hong Kong SFC’s optimism, Beijing has remained more cautious in its dealings with cryptocurrencies, including stablecoins.
Why this matters:
Hong Kong’s regulatory shift toward global crypto market integration marks a movement from containment to competitiveness. Exchanges and investors, both in Hong Kong and abroad, may relish the opening of opportunities. While the SFC is optimistic about achieving a balance between oversight and innovation, it must also consider mainland China’s reticence about the regional development of the digital asset industry.
Read more on South China Morning Post.
