Poland’s efforts to align its crypto market with the European Union’s Markets in Crypto-Assets framework have hit a major political roadblock after lawmakers failed to override a presidential veto on a sweeping digital-asset bill.

This leaves the country as the last EU member without a national MiCA-style regime.

According to a Bloomberg report, the vote was held in the lower house of parliament on Friday, falling short of the three-fifths majority required to overturn President Karol Nawrocki’s decision to reject the legislation.

The outcome halts Prime Minister Donald Tusk’s push to place Poland’s crypto sector under tight regulatory control and forces the government to restart the legislative process from scratch.

Tusk Flags Crypto as National Security Threat Amid Russia Sabotage Claims

Tusk had framed the bill as a national security measure in the days leading up to the vote.

Addressing parliament, he said the unregulated crypto market had become a conduit for money laundering and foreign interference, including activity linked to Russia and Belarus.

He told lawmakers that Polish authorities had identified “several hundred” foreign entities operating in the domestic crypto market and warned that Russian intelligence and organized crime groups were exploiting digital assets for covert financing.

Government officials have tied those concerns to recent security incidents.

Last month, Warsaw blamed Russia for a blast on a key railway route used for supply traffic to Ukraine, an allegation Moscow dismissed.

Polish security services have also cited cases of underground groups allegedly paid in cryptocurrencies to carry out sabotage activities inside the country.

The veto has deepened an already sharp political confrontation between Nawrocki, a nationalist conservative, and Tusk’s pro-European coalition.

The president rejected the bill earlier this month, arguing that it went far beyond EU requirements and threatened civil liberties, property rights, and the stability of the state.

The blocked law would have implemented MiCA-style rules in Poland, introducing licensing for crypto-asset service providers, investor protection standards, stablecoin reserve requirements, market abuse bans, and strict anti-money laundering controls.

It also proposed granting authorities the power to block crypto-related websites through administrative orders, a provision the president described as opaque and vulnerable to abuse.

Political Tensions Rise After Poland Blocks Sweeping Crypto Oversight Bill

Nawrocki also criticized the scale of the bill, which exceeded 100 pages, contrasting it with far shorter implementing laws in neighboring Czechia and Slovakia.

He warned that heavy supervisory fees and added domestic restrictions would drive Polish crypto firms to register in other EU countries, costing Poland tax revenue and talent.

His chief of staff, Zbigniew Bogucki, said on Friday that the president is open to regulation as long as future proposals are not excessively restrictive.

The failure to override the veto leaves crypto companies operating in Poland without a clear national legal framework ahead of the EU’s July 1, 2026, MiCA compliance deadline.

The political dispute has increasingly drawn in industry players.

Nawrocki has portrayed himself as a defender of the crypto sector and was endorsed before his election by Kristi Noem, a senior U.S. official, at a conference in southeast Poland sponsored by trading platform Zondacrypto.

The exchange later stated that it accepts no Russian clients and fully complies with anti-money laundering rules.

Foreign Minister Radosław Sikorski added another dimension to the dispute on Friday, saying on radio RMF FM that the crypto industry sponsors figures across the right wing of Polish politics, explaining the sharp resistance to tighter oversight.

The veto follows months of turbulence around crypto regulation in Poland. In September, lawmakers had initially passed the bill, triggering strong backlash from industry leaders who warned that Poland’s version of MiCA amounted to overregulation.

Zondacrypto’s chief executive at the time described it as a “step backwards” that risked criminalizing core blockchain development activity.

The post Poland Stalls MiCA-Style Crypto Rules as Lawmakers Fail to Override Presidential Veto appeared first on Cryptonews.

A chaotic token launch on Solana has placed decentralized finance platform HumidiFi and Jupiter Exchange under intense scrutiny after blockchain investigators linked a single actor to the mass botting of the $WET public presale, capturing the majority of the allocation within seconds.

According to a detailed on-chain investigation published by Bubblemaps, one entity operating under the alias “Ramarxyz” used more than 1,000 wallets to claim roughly 70% of the $WET public presale allocation.

The sale, which took place through Jupiter’s Decentralized Token Formation (DTF) launchpad, sold out in just two seconds before most retail participants could interact.

HumidiFi Confirms Bot Attack as Blockchain Data Traces Sale to One Actor

HumidiFi later confirmed that a large bot farm had overwhelmed the public sale. Bubblemaps found that at least 1,100 of the 1,530 participating addresses were controlled by the same actor.

The wallets followed a repetitive funding pattern, with each receiving exactly 1,000 USDC from centralized exchanges shortly before the sale.

One wallet allegedly broke the pattern by receiving funds from a private address that could be traced to the Twitter handle @ramarxyz through previous public blockchain activity.

Rather than acknowledging the activity, the individual later publicly suggested that HumidiFi should refund the sniper’s allocation, despite being linked to the exploit.

Shortly afterward, HumidiFi confirmed that all suspected bot allocations had been canceled and that legitimate presale participants would instead receive a prorated airdrop.

A separate on-chain analysis by trader Gautam Mgg showed that 4% of the public allocation went to just 10 wallets, with four wallets alone committing 40% of the entire public sale supply using bots.

The wallets were publicly listed using Solana explorers. Gautam also blamed Jupiter Exchange for failing to introduce basic bot protection measures, such as CAPTCHA or last-minute address rotation.

Jupiter had earlier announced that the $WET token sale was fully completed, raising $5.57 million across its Wetlist, JUP stakers, and public sale phases.

The public phase offered 30 million tokens at $0.069 per token, capped at $1,000 USDC per wallet. The token is scheduled to become claimable on December 9 alongside the launch of liquidity pools.

HumidiFi to Reissue Token After Aborting Disrupted $WET Launch

Following the incident, HumidiFi announced it would abandon the compromised launch and create a new token instead.

The protocol said all legitimate Wetlist and JUP staker participants would receive a pro-rata airdrop under a newly deployed contract that has been audited. A new public sale is now scheduled.

HumidiFi launched in mid-2025 and has grown into one of Solana’s most active decentralized exchanges, processing over $1 billion in daily trading volume and often accounting for more than one-third of all spot trading on the network.

According to DefiLlama, its Dex volume currently sits close to $30 billion over 30 days, while its cumulative volume sits at over $122 billion.

The $WET token was introduced as the protocol’s staking and fee-rebate asset and was promoted as a community-driven distribution using Jupiter’s DTF platform.

The incident has revived broader concerns over token distribution fairness across launchpads.

In September, Bubblemaps also flagged a separate Sybil attack linked to the MYX token airdrop, where roughly 100 newly created wallets claimed nearly $170 million in tokens after being funded simultaneously from OKX.

That case similarly raised questions about identity controls and launch design weaknesses.

Jupiter DTF was introduced as a transparent, trust-minimized alternative to traditional token launches, combining curation and on-chain verification. The $WET sale was its first live deployment, making the failure a major test for the model.

Neither Jupiter Exchange nor the individuals accused have issued a detailed technical breakdown of what failed at the infrastructure level.

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A suspected British hacker linked to one of the largest single Bitcoin thefts ever recorded may have been detained in Dubai, according to claims made Friday by on-chain investigator ZachXBT.

In a post shared on his Telegram channel on December 5, ZachXBT said a man known online as “Danny” or “Meech,” identified as Danish Zulfiqar, appears to have been taken into custody by authorities, with a portion of the stolen crypto allegedly seized.

He pointed to roughly $18.58 million in digital assets now held in a single Ethereum wallet that he says is connected to the suspect.

ZachXBT noted that several wallets previously tied to the alleged hacker had funneled funds into the same address in a pattern commonly seen during law enforcement seizures.

He also claimed Zulfiqar was last known to be in Dubai, where a villa was reportedly raided.

Authorities Silent as Reports Surface of Possible Arrest in $243M Bitcoin Hack

According to the investigator, others linked to the suspect have also gone silent in recent days.

So far, there has been no official confirmation from Dubai Police or UAE authorities regarding any arrest, asset seizure, or raid connected to the case.

Local media outlets in the region have also not verified the claims.

The possible arrest follows months of investigation into the August 19, 2024, theft of 4,064 Bitcoin, worth about $243 million at the time. The funds were taken from a single Genesis creditor who accessed assets through Gemini.

ZachXBT made the case public in September, alleging the theft was carried out through a coordinated social engineering attack.

According to his findings, the attackers posed as Google support staff and convinced the victim to reset two-factor authentication.

They then used remote access software to take control of the account. After extracting the private keys, the attackers drained the wallet and moved the Bitcoin through a web of exchanges and swap services in an attempt to launder the funds.

ZachXBT initially tied the attack to three online aliases, “Greavys,” “Wiz,” and “Box”, later naming Malone Lam, Veer Chetal, and Jeandiel Serrano as the people behind those accounts.

He said his findings were shared with law enforcement authorities.

U.S. Charges, UK Guilty Plea, Thailand Arrest Mark New Phase of Crypto Crime Probes

U.S. prosecutors later filed criminal cases connected to related activity. In September 2024, the Department of Justice charged two suspects in a $230 million crypto fraud scheme.

Broader racketeering charges later described an operation totaling more than $263 million, including the Genesis-linked Bitcoin theft. Court documents outlined a mix of SIM swaps, social engineering tactics, and even physical burglaries.

Prosecutors said the stolen funds were spent on high-end cars, travel, and nightlife. One of the defendants, Veer Chetal, was later accused of carrying out another $2 million crypto theft while out on bond.

ZachXBT has also connected Zulfiqar to the August 2023 Kroll SIM swap incident, which exposed the personal data of creditors tied to BlockFi, Genesis, and FTX.

That breach later played a role in more than $300 million worth of crypto thefts through follow-up phishing and impersonation schemes.

The reported Dubai development comes as crypto-related law enforcement activity continues to pick up worldwide.

In October, Thai authorities arrested Liang Ai-Bing in Bangkok over an alleged $31 million crypto Ponzi scheme that ZachXBT had previously exposed.

In the UK, authorities recently secured a guilty plea from Zhimin Qian in a case tied to what officials described as the largest crypto seizure in history, involving more than $6.7 billion in Bitcoin.

Outside of investigations, ZachXBT has also remained active in public disputes.

In November, he clashed with UFC fighter Conor McGregor over comments about Khabib Nurmagomedov’s NFT project, redirecting attention to McGregor’s own failed meme coin venture earlier this year.

The post ZachXBT: British Hacker Linked to $243M Genesis Theft Likely Nabbed in Dubai appeared first on Cryptonews.

JPMorgan analysts say the near-term direction of Bitcoin’s price now depends less on miner behavior and more on the financial resilience of Strategy, the world’s largest corporate holder of Bitcoin, even as mining pressure and market volatility persist.

In a report led by managing director Nikolaos Panigirtzoglou, the bank identified two forces currently weighing on Bitcoin. The first is a recent decline in Bitcoin’s network hashrate and mining difficulty.

The second is the growing market focus on Strategy’s balance sheet and its ability to avoid selling its Bitcoin holdings during the ongoing market downturn.

High-Cost Bitcoin Miners Capitulate as Hashrate Slips and Margins Collapse

The decline in hashrate reflects a combination of China reiterating its ban on private mining activity and high-cost miners outside the country retreating as falling Bitcoin prices and elevated electricity costs squeeze profitability.

JPMorgan now estimates Bitcoin’s production cost at $90,000, down from $94,000 last month. The estimate assumes electricity priced at $0.05 per kilowatt hour, with every $0.01 increase adding roughly $18,000 to production costs for higher-cost miners.

With Bitcoin trading near $92,000, JPMorgan said the asset continues to hover close to its estimated production cost, creating sustained selling pressure from miners.

As profits tighten, several high-cost producers have been forced to liquidate Bitcoin holdings in recent weeks to remain solvent.

Despite those pressures, JPMorgan said miners are no longer the key driver of Bitcoin’s next major move. Instead, attention has shifted to Strategy’s ability to maintain its Bitcoin position without being forced into sales.

Strategy’s enterprise-value-to-Bitcoin-holdings ratio currently stands at 1.13. That figure reflects the combined market value of its debt, preferred stock, and equity relative to the market value of its Bitcoin treasury.

According to JPMorgan, the fact that the ratio remains above 1.0 is “encouraging” because it shows that Strategy is unlikely to face pressure to sell Bitcoin to meet interest or dividend obligations.

The company recently reinforced that position by creating a $1.44 billion U.S. dollar reserve through ongoing at-the-market equity sales.

The reserve is designed to cover dividend payments and interest expenses for at least 12 months, with the company targeting coverage of up to 24 months.

JPMorgan said the reserve significantly reduces the risk of forced Bitcoin sales in the foreseeable future.

JPMorgan Sees $170K Bitcoin Scenario Despite Strategy’s MSCI Index Risk

Strategy’s Bitcoin accumulation has slowed sharply in recent months, though it remains deeply exposed to price movements.

In November, it added 8,178 BTC in its largest purchase since July, bringing total holdings to roughly 650,000 BTC. Its basic market capitalization stands near $54 billion, with an enterprise value of about $69 billion.

Markets are also watching an upcoming decision by MSCI on whether to remove Strategy and other digital-asset treasury companies from its equity indices. JPMorgan said the downside risk from exclusion is largely priced in.

Since MSCI launched its review in October, Strategy’s share price has fallen roughly 40%, underperforming Bitcoin by about $18 billion in market value.

JPMorgan estimates that an MSCI exclusion could trigger $2.8 billion in passive outflows, with as much as $8.8 billion at risk if other index providers follow suit.

Even so, the bank said further downside would likely be limited. By contrast, if MSCI keeps Strategy in major indices, JPMorgan said both Strategy and Bitcoin could rebound sharply toward pre-October levels.

Beyond corporate balance sheets, JPMorgan continues to point to broader crypto market structure for longer-term upside. The bank said perpetual futures deleveraging appears largely complete following record liquidations in October.

At the same time, Bitcoin’s volatility ratio relative to gold has improved, strengthening its risk-adjusted appeal to investors.

Based on those metrics, JPMorgan reiterated its volatility-adjusted comparison of Bitcoin to gold, which implies a theoretical Bitcoin price near $170,000 over the next six to twelve months if market conditions stabilize.

Notably, Bitcoin is currently trading about $68,000 below that level.

The post Bitcoin Price Could Hit $170K — But Strategy ‘Resilience’ Is Vital: JPMorgan appeared first on Cryptonews.

The International Monetary Fund on Thursday released a new global assessment of the stablecoin market, warning that fragmented regulatory frameworks across countries are now creating structural “roadblocks” that threaten financial stability, weaken oversight, and slow the development of cross-border payments.

In its report titled “Understanding Stablecoins,” the IMF reviewed how major economies, including the United States, the United Kingdom, the European Union, and Japan, regulate stablecoins and found that national approaches remain widely inconsistent.

While some countries treat stablecoins as securities, others regulate them as payment instruments, permit only bank-issued tokens, or leave large parts of the market unregulated.

Stablecoins Are Moving Faster Than Regulators Can Track, IMF Warns

The IMF said this regulatory patchwork allows stablecoins to move across borders faster than oversight can follow.

Issuers can operate from lightly regulated jurisdictions while serving users in stricter markets, limiting authorities’ ability to monitor reserves, redemptions, liquidity management, and anti-money laundering controls.

The fund warned that this creates regulatory arbitrage and weakens global supervision.

The report also pointed to technical fragmentation. Stablecoins increasingly operate across different blockchains and exchanges that are not always interoperable.

According to the IMF, this lack of coordination raises transaction costs, slows market development, and creates barriers to efficient global payments.

Differences in national regulatory treatment further complicate cross-border usage and settlement.

Stablecoins remain dominated by U.S. dollar-denominated tokens. The IMF said the global stablecoin market is now worth more than $300 billion. Tether’s USDT and Circle’s USDC make up the majority of that supply. About 40% of USDC’s reserves are held in short-term U.S. treasuries, while roughly 75% of USDT’s reserves are in short-term treasuries, with another 5% held in Bitcoin.

The concentration of reserves in government debt markets links stablecoins directly to traditional financial systems

Widespread use of foreign-currency stablecoins can weaken domestic monetary control, lower demand for local currency, and accelerate digital dollarization. Stablecoins also make it easier to bypass capital controls through unhosted wallets and offshore platforms.

In addition to monetary concerns, the fund cited broader financial stability concerns. Large-scale redemptions could force rapid sales of Treasury bills and repo assets, potentially disrupting short-term funding markets that are critical for monetary policy transmission.

The IMF also noted that the increasing interconnection between stablecoin issuers, banks, custodians, crypto exchanges, and funds also increases the risk of contagion spreading from digital markets into the wider financial system.

IMF Urges Unified Stablecoin Regulation as Cross-Border Risks Grow

To address these risks, the IMF released new global policy guidelines intended to reduce fragmentation. It called for harmonized definitions of stablecoins, consistent rules for reserve assets, and shared cross-border monitoring frameworks.

The fund said issuers should be subject to the principle of “same activity, same risk, same regulation,” regardless of whether the issuer is a bank, fintech company, or crypto platform.

The IMF also said stablecoins should be backed only by high-quality liquid assets such as short-term government securities, with strict limits on risky holdings. Issuers must guarantee full one-to-one redemption at par, on demand, at all times.

Strong international coordination on anti-money laundering enforcement, licensing, and supervision of large global stablecoin arrangements was also included in the new guidance.

The IMF’s warning comes as regulatory pressure is rising worldwide. In Europe, the European Central Bank recently warned that stablecoins, despite their small footprint in the euro area, now pose spillover risks due to their growing ties to U.S. Treasury markets.

The European Systemic Risk Board has also called for urgent safeguards against cross-border stablecoin structures operating under the EU’s MiCA framework.

In China, the central bank has described stablecoins as a threat to financial stability and monetary sovereignty, while the Bank of England and Basel regulators are reassessing how banks should hold capital against stablecoin exposure as usage expands.

The IMF concluded that without consistent global regulation, stablecoins could bypass national safeguards, destabilize vulnerable economies, and transmit financial shocks across borders at high speed.

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For the first time in the United States, spot cryptocurrency trading is set to take place on federally regulated futures exchanges, a step that reshapes how digital assets fit into the country’s financial system.

The update was announced on Thursday by Acting Chair of the Commodity Futures Trading Commission (CFTC), Caroline Pham. She said that exchanges registered with the agency will soon be allowed to list spot crypto products, following months of behind-the-scenes coordination among U.S. regulators.

The move also reflects guidance from the President’s Working Group on Digital Asset Markets.

Pham Calls Spot Crypto Approval on U.S. Exchanges a “Historic Moment”

Pham described the announcement as a historic moment, saying spot crypto will now be able to trade on exchanges that have operated under strict federal standards for nearly a century.

She said the goal is to give U.S. investors access to familiar, well-regulated venues that already enforce strong protections and market safeguards.

Until now, the CFTC’s role in crypto has mostly centered on derivatives such as futures and options.

Spot markets, the direct buying and selling of assets, fell mostly outside its jurisdiction, pushing significant trading activity to offshore platforms with looser rules.

Under the new framework, the CFTC will apply its existing authority to oversee spot trading for digital assets it considers commodities, including Bitcoin and Ethereum.

The change also folds leveraged retail crypto trades into the same regulated exchange system that has long governed traditional commodities markets.

The decision also reflects growing regulatory cooperation in Washington. In early September, the CFTC and the Securities and Exchange Commission issued a joint statement clarifying that exchanges registered with either agency are not barred from supporting certain spot crypto trades.

That guidance eased longstanding jurisdictional tensions between the two regulators.

Pham said the approval ties into the CFTC’s wider Crypto Sprint initiative, which spans several areas of digital finance.

The program includes work on tokenized collateral, the use of stablecoins in derivatives markets, and updates to clearing, settlement, and recordkeeping rules using blockchain-based systems.

The change also responds to years of pressure from the crypto industry for clearer rules. Under current law, leveraged retail commodity trades must take place on registered exchanges and involve physical delivery of the asset within 28 days.

That requirement created uncertainty for crypto markets and pushed much of the activity overseas. Allowing spot and leveraged crypto trading on Designated Contract Markets offers a regulated option within the U.S. system.

CFTC in Talks With CME, Coinbase, and Others as Crypto Market Oversight Expands

Several major platforms have already held talks with the CFTC about launching products under the new framework. These include CME Group, Cboe Futures Exchange, ICE Futures, Coinbase Derivatives, Kalshi, and Polymarket U.S.

Earlier this month, Pham confirmed that the agency was in direct discussions with multiple firms seeking approval for spot and leveraged crypto offerings.

The policy change is unfolding at a time when the CFTC itself is going through a leadership transition. Pham took over as acting chair in January after former Chair Rostin Behnam stepped down.

She is set to leave once the Senate confirms President Donald Trump’s nominee, Michael Selig, whose confirmation vote is now moving toward the full chamber.

Meanwhile, lawmakers in Congress are advancing legislation that could officially place crypto spot markets under the CFTC’s primary supervision. As those plans take shape, some lawmakers have questioned whether the agency has the manpower to manage the expanded duties.

Right now, the CFTC employs just over 500 staff members, a small figure compared with the more than 4,000 employees at the Securities and Exchange Commission.

Outside of its enforcement role, the agency is also stepping up its work with the private sector.

In November, Pham announced plans to launch a new CEO Innovation Council and opened public nominations to help shape future policy on digital assets and prediction markets.

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Reform UK has landed its biggest donation yet, after receiving £9 million ($12 million) from crypto investor and aviation businessman Christopher Harborne, according to newly released figures from the Electoral Commission.

The sum is now the largest single political donation ever made by a living person to a UK political party.

Harborne, a British investor living in Thailand, has long been active in UK political donations. He donated heavily to the Conservatives during Boris Johnson’s time in office and also supported the Brexit Party, which later became Reform UK, in both 2019 and 2020.

Two companies tied to him, AML Global and Sherriff Group, operate in the private aviation sector.

Harborne’s £9M donation Reshapes UK as Crypto Money Enters UK Politics

Harborne’s donation comes at a time when, as the next general election is not due until 2029, but local elections are scheduled for May. It also comes as Reform UK has remained at the top of several national opinion polls since the spring.

Harborne’s £9 million donation breaks the previous record of £8 million, which was set in 2019 by supermarket heir Lord David Sainsbury in support of the Liberal Democrats.

Separately, Lord John Sainsbury left £10 million to the Conservatives through his will in 2022.

Figures released by the UK Electoral Commission show that Reform UK raised more than £10.2 million between July and September, over twice the amount collected by the Conservatives in the same period, which brought in £4.6 million.

Labour brought in £2.1 million, and the Liberal Democrats reported £1 million. This makes it the first full quarter in which Reform will outpace Conservatives in fundraising since the general election in 2024.

Still, the longer-term numbers slightly favor the Conservatives, showing that since July 2024, they have raised around £14.4 million in total, compared with Reform’s £13.5 million.

Conservative leader Kemi Badenoch downplayed the impact of Harborne’s contribution, describing it as a “one-off” and insisting her party remains stronger when it comes to steady, repeat donors

Beyond fundraising, the donation has reignited debate around the role of cryptocurrency in UK politics.

In May, Reform leader Nigel Farage announced that the party would begin accepting Bitcoin donations, making it the first UK political party to do so.

The party later launched a dedicated digital donation portal and confirmed that it had already received a small number of crypto contributions, the first recorded instance of such donations in British political history.

Foreign Influence Fears Drive UK Review of Crypto Political Funding

That decision is now under increasing political scrutiny. The UK government says it’s now looking into whether cryptocurrency donations should be blocked entirely for political parties.

While no formal proposal has been confirmed, officials say discussions are underway across Whitehall about it, driven by rising concerns over transparency and the risk of foreign interference in British politics.

Additionally, security specialists caution that while blockchain records are public, the real origin of funds can still be obscured through layered wallets, intermediaries, and offshore structures.

The debate gained urgency after former Reform Wales leader Nathan Gill was convicted and sentenced to over 10 years in prison for accepting payments to push pro-Russian narratives while serving as a Member of the European Parliament.

The Ministry of Housing, Communities and Local Government, which is leading work on the Elections Bill, has also warned that existing rules leave the political system exposed to covert foreign influence.

Proposed changes are expected to focus on donations funneled through shell companies and to introduce stricter risk checks for politically sensitive contributions.

The discussion unfolds as the UK moves ahead with its wider digital asset rules. On December 3, Parliament passed a law recognizing cryptocurrencies and stablecoins as legal property for the first time under UK law.

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A Florida appeals court has reinstated a lawsuit accusing Binance of failing to freeze and recover roughly $80 million worth of stolen Bitcoin, reopening a case that had previously been dismissed over jurisdictional grounds.

According to Bloomberg Law, Florida’s Third District Court of Appeal ruled Wednesday that the lower court erred when it concluded it lacked personal jurisdiction over Binance Holdings Inc.

The decision allows the plaintiff to proceed with a state-level lawsuit alleging that Binance failed to act quickly after the theft was reported.

Appeals Court Reverses Dismissal Saying Use of AWS Ties Binance to Florida

The case stems from a 2022 incident in which the plaintiff, identified as Michael Osterer, reported that about 1,000 Bitcoin was stolen from his wallet.

He claims the hackers transferred the funds to a Binance account, where the assets were converted and withdrawn before the exchange intervened.

Osterer alleges that Binance was negligent, breached its contractual duties, and enabled the laundering of stolen property by failing to freeze the assets promptly.

Osterer is seeking the full value of the stolen Bitcoin, estimated at roughly $80 million, along with interest. In 2023, he also attempted to expand the case into a class action on behalf of other victims whose stolen assets were allegedly routed through Binance.

A trial court initially dismissed the lawsuit after determining that Binance, which operates offshore, did not have sufficient connections to Florida to be sued in the state.

The appeals court overturned that finding, ruling that Binance’s U.S.-facing affiliates and its reliance on U.S. infrastructure were enough to establish jurisdiction.

The court specifically pointed to the exchange’s use of Amazon Web Services and its U.S. operational footprint as valid contacts with Florida.

The decision sends the case back to trial court, where Osterer will again be allowed to argue his claims under Florida state law.

The ruling adds to legal pressure on offshore crypto exchanges that have previously relied on jurisdictional defenses to block U.S. lawsuits involving stolen assets.

Binance may still seek to appeal the ruling or attempt to shift the dispute into arbitration, a strategy the company has pursued in other U.S. cases.

Even After Zhao’s Pardon, Binance Faces Fresh Legal Heat in the U.S.

The revived lawsuit comes as Binance continues to face sustained legal scrutiny in the United States. In November, the exchange and its founder, Changpeng Zhao, were named in a federal lawsuit filed by the families of victims of the October 2023 Hamas attack.

The plaintiffs accused Binance of knowingly facilitating crypto transactions tied to the militant group and helping move more than $1 billion through accounts linked to terrorist organizations.

Binance has denied the allegations and said it complies with international sanctions laws.

Earlier this year, Binance also sought to dismiss a separate class action brought by U.S. investors in California, arguing that an arbitration clause in its user agreement required private dispute resolution.

That case is tied to broader securities law claims alleging the exchange promoted unregistered crypto tokens and misled investors.

Binance’s legal disputes in the United States have already led to some of the largest settlements in crypto history. In November 2023, the exchange agreed to pay $4.3 billion to resolve charges brought by the DOJ over violations of the Bank Secrecy Act.

Also, CZ pleaded guilty to a related criminal offense and accepted a separate $150 million personal settlement. Binance also paid $2.7 billion to settle a civil case with the Commodity Futures Trading Commission.

In May 2025, the U.S. Securities and Exchange Commission dropped its civil enforcement lawsuit against Binance and Zhao, bringing an end to a legal battle that had lasted more than two years.

Months later, in October, President Donald Trump issued a pardon to Zhao, wiping away the criminal conviction tied to the Justice Department case.

The post Florida Court Revives $80M Binance Lawsuit Over Stolen Bitcoin Claims appeared first on Cryptonews.

Strategy, the world’s largest corporate holder of Bitcoin, has set aside a $1.44 billion U.S. dollar reserve as a liquidity buffer against a prolonged market downturn, a move that analysts at CryptoQuant say signals preparation for a potential bear market phase.

The company, the world’s largest corporate holder of Bitcoin, raised the funds through ongoing at-the-market equity sales.

The reserve is designed to cover dividend payments on preferred stock and service interest obligations for at least 12 months, with the stated goal of extending coverage to 24 months or more.

Strategy also disclosed that it may sell Bitcoin or Bitcoin derivatives as part of its risk-management toolkit if market conditions deteriorate.

Strategy Pivots to Dual-Reserve Treasury as Bitcoin Buying Slows

CryptoQuant described the move as a structural change from Strategy’s long-standing playbook of issuing equity and convertibles primarily to buy more Bitcoin.

Instead, the company is now operating a dual-reserve treasury model that pairs long-term Bitcoin exposure with short-term dollar liquidity aimed at reducing the risk of forced BTC sales during market stress.

The shift comes as Strategy’s pace of Bitcoin accumulation has slowed sharply through 2025. Monthly purchases fell from 134,000 BTC at the 2024 peak to 9,100 BTC in November 2025, with just 135 BTC added so far this month, according to CryptoQuant.

The analytics firm said the scale and timing of the dollar buffer signal preparation for a sustained bear market.

Despite the slowdown, Strategy remains deeply exposed to Bitcoin. On Nov. 17, the firm bought 8,178 BTC for roughly $835.5 million in its largest purchase since July, bringing total holdings to about 650,000 BTC.

Strategy’s stock trades under the ticker MSTR, with a basic market capitalization of about $54 billion and an enterprise value near $69 billion.

Market net asset value metrics show the stock trading close to the value of its Bitcoin holdings. Basic mNAV stands at 0.892, diluted mNAV at 0.994, and enterprise-value mNAV at 1.136, reflecting the effect of debt and preferred obligations.

Falling Shares Put Strategy’s Bitcoin Treasury Model Under the Microscope

CEO Phong Le has said the company would only consider selling Bitcoin if its shares fall below net asset value and access to new financing dries up.

He described such sales as a last resort to protect what he calls “Bitcoin yield per share,” stressing that selling would occur only if issuing new equity became more dilutive than reducing holdings.

Strategy’s annual fixed obligations tied to preferred shares are estimated at $750 million to $800 million. Le said the new dollar reserve currently covers about 21 months of dividends.

Founder and Executive Chairman Michael Saylor described the reserve as the next stage in Strategy’s evolution as a Bitcoin-focused treasury company, positioning it to navigate market volatility while maintaining its long-term digital-asset strategy.

To reassure investors, the company recently launched a “BTC Credit” dashboard, stating that it has sufficient dividend coverage even if Bitcoin prices remain flat for extended periods.

Strategy also said its debt remains well-covered if Bitcoin falls to its average cost of roughly $74,000 and remains manageable even at $25,000.

The reserve strategy has drawn mixed reactions from the market. Bitcoin critic Peter Schiff argued that the shift shows the company is being forced to sell stock to buy dollars rather than Bitcoin in order to meet its obligations.

Strategy’s share price has fallen more than 60% from recent highs even as Bitcoin has traded between $95,000 and $110,000 in late 2025, adding to investor scrutiny of the model.

Strategy’s stance is also being watched by index providers. MSCI is currently reviewing how companies with large digital-asset treasuries should be treated in major equity indexes.

Any change in classification could force benchmark-tracking funds to rebalance, adding another layer of volatility to a stock that already trades with a high Bitcoin beta.

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Polymarket is preparing to relaunch in the United States after receiving regulatory clearance from the U.S. Commodity Futures Trading Commission.

This marks the platform’s official return to the American market after nearly three years of regulatory exclusion.

On Wednesday, the CFTC confirmed it had issued a no-action letter covering QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.

Both entities were acquired by Polymarket earlier this year as part of its plan to re-enter the U.S. legally.

The agency’s Division of Market Oversight and Division of Clearing and Risk issued a no-action letter granting temporary relief from certain swap data reporting and recordkeeping requirements tied to event contracts, including binary options and variable payout transactions.

With CFTC Nod and QCX Deal, Polymarket Prepares U.S. Relaunch

Under the terms of the letter, the CFTC said it would not recommend enforcement action against the two entities or their participants for failing to comply with specific swap-related reporting obligations, so long as the activity falls within narrow conditions outlined in the approval.

Additionally, the relief does not exempt the companies from broader regulatory compliance but removes a key barrier to launching compliant prediction markets in the U.S.

Polymarket founder and CEO Shayne Coplan confirmed the development in a post on X, stating that the platform had received “the green light to go live in the USA.”

He credited the CFTC and its staff for completing the process in what he described as record time, adding that the company would share further updates soon.

The clearance caps a long regulatory journey for Polymarket. In 2022, the CFTC fined the platform $1.4 million for operating an unregistered derivatives exchange and ordered it to block U.S. users.

While Polymarket officially exited the U.S. market, regulators later investigated whether Americans continued accessing the site through VPNs.

That probe escalated in November 2024, when the FBI raided Coplan’s Manhattan residence and seized electronic devices.

In July, both the Department of Justice and the CFTC closed their investigations into Polymarket without pursuing further enforcement action.

The conclusion of those probes removed the final legal overhang blocking Polymarket’s U.S. return.

Days after the investigations ended, Polymarket acquired Florida-based derivatives exchange QCX and its clearing arm QC Clearing for $112 million.

The acquisition gave Polymarket a licensed designated contract market and a regulated clearinghouse, allowing it to operate within the same framework as federally supervised U.S. trading venues.

Despite the U.S. ban, Polymarket expanded rapidly overseas. In the first half of 2025 alone, users placed roughly $6 billion in wagers on outcomes.

Polymarket Quietly Begins U.S. Trading After Receiving CFTC Designation

The platform gained global attention during the 2024 U.S. election cycle after its markets closely tracked Donald Trump’s winning odds.

In November, Polymarket disclosed that it had received an amended designation order from the CFTC, formally allowing it to operate as a regulated U.S. exchange.

The approval allows intermediated trading through futures commission merchants and allows brokerages to onboard customers directly, placing Polymarket within the same regulatory framework as other federally supervised trading venues.

The company also said it has implemented upgraded market surveillance, clearing procedures, and regulatory reporting systems ahead of a full public relaunch.

The platform has also continued to attract institutional and political attention. In August, Donald Trump Jr. joined Polymarket’s advisory board after his venture firm, 1789 Capital, invested tens of millions of dollars into the company.

Polymarket has also entered a partnership with Elon Musk’s X platform to integrate prediction markets with xAI’s Grok chatbot.

By November, Coplan confirmed that Polymarket had begun live testing of its U.S. exchange in a limited beta, quietly onboarding selected users and matching real trades as it completed final regulatory steps.

More recently, the platform introduced a 4% annualized yield on certain long-term political and geopolitical contracts, including markets tied to the 2028 U.S. presidential election.

The post Polymarket Is Back: Crypto Prediction Giant Relaunches in U.S. With CFTC Green Light appeared first on Cryptonews.

The U.S. Securities and Exchange Commission has stepped in to stop the launch of some of the most aggressive exchange-traded funds ever proposed in the country.

The products were designed to deliver three to five times the daily performance of stocks and cryptocurrencies, pushing the limits of how much risk regulators are willing to allow.

ETF Issuers Pull Filings After SEC Flags Leverage Rule Violations

On Tuesday, the agency issued nine warning letters to major ETF providers, including Direxion, ProShares, and Tidal Financial.

In the letters, the SEC said it would not review the filings unless the firms addressed serious regulatory concerns.

At the center of the issue is Rule 18f-4 under the Investment Company Act of 1940, which limits how much leverage a fund can use.

The rule caps a fund’s value-at-risk exposure at 200% of its reference benchmark, a level several of the proposed products appear to exceed.

The targeted funds used derivatives to magnify daily returns. Some were linked to highly volatile assets such as Bitcoin, Ether, Nvidia, and Tesla, with exposure of up to five times the daily move.

No 5x single-stock or crypto ETF has ever been approved in the U.S., and even 3x products have long faced strict limits from regulators.

The SEC told issuers to either adjust their strategies to meet legal requirements or withdraw their filings altogether.

Within a day of the letters being posted, ProShares moved to pull several of its 3x and crypto-related ETF applications.

Market analysts say the SEC’s latest move shows a clear effort to rein in ETF issuers that have been testing the limits of leverage rules.

The filings under scrutiny were widely viewed as attempts to stretch existing regulations to push higher-risk products into the market, an approach the agency has consistently resisted.

SEC Challenges High-Risk ETF Strategies as Leveraged Funds Hit $162 Billion

The decision also interrupts what had been one of the most permissive periods for ETF approvals in U.S. history.

Over the past year, the SEC approved spot Bitcoin and Ethereum ETFs, crypto yield products, and a wave of structured funds built around options income, partial leverage, and downside protection.

Even during October’s government shutdown, ETF filings continued to surge despite the agency operating with reduced staff.

Several issuers pressed even further. 21Shares submitted an application for a leveraged fund tied to the Hyperliquid token.

Volatility Shares went a step beyond, filing the first proposals for 5x leveraged ETFs linked to both stocks and cryptocurrencies, applications that quickly drew regulatory attention.

With its latest response, the SEC has effectively drawn a boundary on how far leverage will be allowed to go.

Leveraged ETFs have grown rapidly in popularity among retail traders, particularly after speculative activity surged during the pandemic. Total assets across leveraged funds now stand at roughly $162 billion.

The largest of these products, the ProShares UltraPro QQQ, which targets three times the daily return of the Nasdaq 100, has risen nearly 40% this year and holds more than $31 billion in assets.

However, losses across other products show the risks. The Defiance Daily Target 2x Long MicroStrategy ETF is down more than 83% this year, while a similar 2x fund tied to Super Micro has fallen over 60%.

Another metric of the SEC’s concerns was the speed at which it made its warning letters public.

The notices were released on the same day they were issued, a rare step for correspondence that is typically disclosed weeks later. The agency declined further comment, citing the ongoing review process.

Bloomberg ETF analyst Eric Balchunas said the SEC is now directly challenging strategies it believes exploit technical gaps in leverage limits, leaving issuers facing a clear choice: adjust their products or abandon them.

The action also coincides with renewed warnings from former SEC Chair Gary Gensler, who continues to caution that most crypto-linked assets remain highly speculative despite growing institutional interest.

The post SEC Blocks 5x Leveraged Crypto ETFs in Sweeping Crackdown – Are High-Risk Funds Dead? appeared first on Cryptonews.

The U.S. Department of Justice (DOJ) has taken down a web domain linked to a major crypto investment scam operating out of Burma, targeting people in the United States.

The site, tickmilleas(dot)com, was allegedly run by operators inside the Tai Chang scam compound, also known as Casino Kosai, in the village of Kyaukhat.

Investigators say the website pretended to be a legitimate trading platform but instead pulled victims into a coordinated and highly deceptive crypto scheme.

Federal Agencies Remove Thousands of Accounts, Apps in Crackdown on Tai Chang Scam Network

An affidavit supporting the seizure links the Tai Chang compound to the Democratic Karen Benevolent Army and the Trans Asia International Holding Group Thailand Company Limited.

The department said both groups were sanctioned last year for ties to Chinese organized crime and their involvement in setting up scam centers across Southeast Asia.

The domain seizure follows the recent launch of the District of Columbia’s Scam Center Strike Force and the takedown of two other domains tied to the same operation.

Victims told the FBI that the tickmilleas(dot)com platform showed fake profits, staged deposits, and other fabricated data meant to make it look like their trades were performing well.

Scammers reportedly walked victims through these fake trades to build trust, even though the entire system was controlled behind the scenes.

Although the domain was only registered in early November 2025, investigators have already identified several victims who lost money within weeks.

The DOJ has since replaced the site with a notice telling visitors the domain has been seized.

The affidavit also says the domain directed people to download scam mobile apps from Google Play and the Apple App Store.

After receiving warnings from the FBI, both companies removed several apps linked to the operation.

Meta also took down more than 2,000 connected accounts after receiving information about the Tai Chang network.

Federal officials say these actions reflect growing concern about crypto-related investment scams, which remain one of the most damaging categories of online crime in the United States.

In 2024, the FBI’s Internet Crime Complaint Center recorded more than 41,000 complaints tied to crypto investment fraud, totaling an estimated $5.8 billion in losses.

DOJ Intensifies Crypto Crime Crackdown With New Charges, Seizures, and Sanctions

The action comes during a period of intense federal activity against crypto-related crime.

On November 20, prosecutors unsealed charges against former Olympic snowboarder Ryan Wedding, accusing him of running a Tether-based laundering network for drug money and allegedly ordering the murder of a federal witness in Colombia earlier this year.

A few days earlier, on November 14, the DOJ announced the sentencing of Travis Ford, the CEO of Wolf Capital Crypto Trading, who received a five-year prison sentence for running a $9.4 million investment scam advertised as offering daily returns of up to two percent.

Federal investigators also moved to seize more than $15 million in USDT connected to North Korea’s APT38 hacking unit, which they say carried out several major crypto exchange breaches in 2023.

The FBI seized the funds in March 2025 and is now asking a court for permission to return the assets to the victims.

In a separate case, prosecutors secured guilty pleas from five people accused of helping North Korean IT workers secretly obtain jobs in U.S. companies.

Other recent enforcement steps include a civil forfeiture case tied to $584,741 in USDT linked to an Iranian national accused of supporting the Islamic Revolutionary Guard Corps’ drone program.

Additionally, in September, the DOJ sanctioned 19 entities in Myanmar and Cambodia for running forced-labor scam compounds used to operate large-scale crypto fraud networks.

The post DOJ Seizes Burma Crypto Scam Domain After Victims Lost Millions in Fake Trading Scheme appeared first on Cryptonews.

Regulators are facing growing pressure from Congress to accelerate implementation of the United States’ new stablecoin law, with Rep. Bryan Steil warning that the one-year rulemaking deadline is approaching.

During a House Financial Services Committee hearing on Tuesday, Steil urged agency heads to provide concrete updates on their progress in rolling out the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which President Donald Trump signed into law on July 18.

FDIC to Publish First GENIUS Act Proposal This Month as Multi-Agency Effort Begins

The Genius Act, signed into law on July 18, 2025, is the first U.S. statute to impose a unified federal structure on stablecoin issuers.

The law gives regulators until July 18, 2026, to complete the full set of implementing rules, although the framework will not take effect until the earlier of two dates: January 18, 2027, or 120 days after final regulations are published.

That timeline pressurizes agencies preparing the first wave of proposals.

Steil said the committee has seen cases where Congress passes a bill but implementing regulations arrive late or stall.

He told regulators that delivering the GENIUS Act on schedule is essential, especially as stablecoins play an increasingly important role in global dollar liquidity and digital-asset markets.

During the exchange, NCUA Chairman Kyle Hauptman assured lawmakers that the credit union regulator expects its first GENIUS-related rulemaking to focus on the application process for issuers.

Hauptman said the agencies involved understand the July deadline and are working to meet it.

The hearing brought together leaders from the Federal Reserve, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.

In prepared remarks released before the hearing, FDIC Acting Chair Travis Hill said his agency expects to publish its first proposal later this month, establishing the application process for stablecoin issuers supervised by the FDIC.

Hill said the FDIC’s responsibilities extend well beyond licensing, noting that the law tasks his agency with defining the capital, liquidity, and reserve standards that bank-issued stablecoins must meet.

He said a separate proposal detailing prudential standards is planned for early next year, setting up a two-step regulatory rollout.

GENIUS Act Moves Forward Alongside CLARITY Act and Anti-CBDC Proposals

The GENIUS Act would require stablecoin issuers to maintain one-to-one backing with U.S. dollars or high-quality liquid assets and introduce annual audits for firms whose tokens exceed a $50 billion market cap.

It also outlines the first federal standards for foreign-issued stablecoins, giving Washington a clearer framework for overseeing offshore projects.

Federal agencies have already begun laying groundwork for implementation.

The Treasury Department has opened multiple public consultations to gather industry input on stablecoin rule designed and how illicit-finance risks should be monitored.

Treasury Secretary Scott Bessent said the feedback will shape ongoing research into compliance tools, including their effectiveness and privacy impact.

He called the GENIUS Act “essential” to maintaining U.S. leadership in the stablecoin market.

The legislative process, however, continues to feature political flashpoints.

During the latest hearing, Rep. Maxine Waters raised concerns about whether a sitting president should hold business interests in sectors they regulate, referencing President Trump’s link to the World Liberty Financial project.

She said the situation highlights unresolved conflict-of-interest questions that Congress must address.

Regulatory momentum is advancing in parallel with broader market-structure efforts on Capitol Hill.

The House passed its digital-asset package, the CLARITY Act, earlier this year, assigning oversight responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission based on token classifications.

The bill still awaits Senate consideration, and analysts say its prospects remain unclear.

Another key proposal, the Anti-CBDC Surveillance State Act, is also pending in the Senate.

It would bar the Federal Reserve from issuing a retail central bank digital currency without explicit congressional authorization, a step supporters argue is necessary to safeguard financial privacy.

The post Rep. Steil Demands Regulators Fast-Track GENIUS Act as Stablecoin Law Deadline Looms appeared first on Cryptonews.

A crypto buyer in Trinidad was robbed of roughly $85,800 in cash during an evening ambush at a pharmacy car park, marking the latest in a fast-rising wave of global “wrench attacks” targeting digital-asset holders.

According to a report by Trinidad and Tobago Newsday, the victim, a 52-year-old Arouca resident, drove to a SuperPharm parking lot along Trincity Central Road on November 29 to meet a man he had been trading cryptocurrency with for nearly two years.

$85K Trinidad Heist Joins Over 60 Cases Of Physical Crypto Crimes, Researcher Says

The man, a 33-year-old from Belmont, entered the vehicle as he had done in previous transactions. The buyer then handed him a black bag containing $85,800 in cash intended for a crypto purchase.

Moments later, two armed men wearing hoodies approached both sides of the vehicle and announced a robbery. They smashed their way in, grabbed the cash and the victims’ mobile phones, and escaped in a waiting car.

The victim later reported the incident to the Arouca Police Station. Investigators have not disclosed whether the longtime trading partner was involved or was also targeted.

The robbery occurred on the same weekend police responded to two unrelated vehicle thefts at nearby shopping centers, adding to concerns about rising property crime in the area.

A St. Joseph woman reported her Nissan B14 stolen from the One Woodbrook Place basement car park, while another woman discovered her Suzuki Vitara missing from the Trincity Mall parking lot. Police say investigations into all incidents are ongoing.

Although cash was stolen, security analysts categorize it within a growing class of physical attacks linked to digital-asset activity.

These incidents, informally referred to as “wrench attacks”, involve criminals using violence, coercion, or kidnapping to force victims to hand over wallet credentials, sign transactions, or surrender funds.

Jameson Lopp, co-founder of security firm Casa and one of the few researchers tracking physical crypto crimes, has documented more than 60 such attacks this year, already surpassing last year’s total by more than 30%.

Lopp describes a 169% rise in cases since February, with France currently leading global reports at 14 confirmed incidents.

Physical Crypto Crimes Escalate Worldwide, From Home Invasions to Kidnappings

Notably, the violence attached to these crimes has escalated. Last week, a British Columbia court detailed a 2024 home invasion where a family was tied, tortured, and waterboarded as attackers demanded access to cryptocurrency.

The gang sought 200 BTC before taking $1.6 million in digital assets. One suspect, Tsz Wing Boaz Chan, later pleaded guilty and received a seven-year sentence.

In the United States, authorities are also investigating a violent robbery in San Francisco on November 24, Police have released few details and no arrests have been made.

Similar incidents have been recorded across major cities. An Italian tourist kidnapped in New York was held for more than two weeks while captors attempted to extract his Bitcoin credentials, leading to a case that has since drawn internal scrutiny within the NYPD.

In Chicago, six men were charged earlier this year with kidnapping residents and coercing them to transfer $15 million in crypto, with similar attacks reported worldwide.

France has seen some of the most organized efforts. Prosecutors say criminal groups have used fake delivery uniforms, pre-attack intelligence gathering, and stolen service vans to identify potential targets.

In one high-profile case earlier this year, Ledger co-founder David Balland and his wife were kidnapped for 48 hours; Balland later told investigators his finger was severed during the ordeal.

Analysts say the surge in physical crime coincides with continued strength in crypto markets, which has raised the value of private holdings and drawn criminals toward coercion rather than online hacking.

The post Armed Robbers Steal $85K in Trinidad Crypto Ambush — “Wrench Attacks” Now Strike Weekly appeared first on Cryptonews.

A growing wave of research and market data is reshaping long-held assumptions about the future of trading.

Analysts across traditional finance and crypto markets are now debating a possibility once considered far-fetched: the gradual disappearance of day trading as Artificial General Intelligence (AGI) moves closer to reality.

AGI does not yet exist, but progress in advanced multimodal systems and autonomous trading agents is pushing markets toward an environment where machines dominate price discovery and leave little room for human reactions.

Current trading automation already shows how quickly edges evaporate when machines take over.

As Algorithms Dominate 70% of Crypto Trading, Analysts Say AGI Could End Retail Alpha

High-frequency trading transformed equities years ago, and its logic expanded into crypto markets with the rise of firms such as Jump, Wintermute, and GSR.

By 2024, Kaiko reported that more than 70% of trading flow on exchanges like Binance and Coinbase was generated by algorithms rather than humans.

This shift has reshaped market structure from the bottom up, reducing spreads and accelerating execution speed while also making it harder for retail traders to profit during high-volatility periods.

Researchers point to these trends as early evidence of rising efficiency.

During the Solana memecoin surge in 2024, trading bots, particularly “sniper” and “AI” bots, generally outperformed human traders due to their superior speed, automation, and lack of emotional bias.

Small AI systems designed to detect whale behavior and monitor blockchain flows reacted faster than discretionary traders and often positioned themselves before human participants understood what was happening.

Each advance in automation has consistently reduced the opportunities available to retail participants, and analysts argue that AGI would push this pattern to its logical endpoint.

The difference between today’s narrow AI and future AGI sits at the center of this debate.

Current models excel at specific tasks such as scanning order books, reading market sentiment, or identifying arbitrage. They cannot generalize across domains or apply human-like reasoning.

AGI, by contrast, is expected to learn new tasks with minimal instruction, adapt to unfamiliar environments, and combine information from many unrelated sources.

In financial markets, this would mean reading blockchain flows, interpreting global macro signs, assessing political risk, identifying whale movements, and evaluating supply-chain disruptions, all within a unified system capable of producing real-time forecasts.

Market theorists describe the potential outcome as the “Perfect Efficiency Paradox.” If an AGI system becomes capable of predicting price direction with near-perfect accuracy, the market adjusts instantly.

When every market participant is guided by the same level of intelligence, traditional trading behavior collapses.

Prices move faster than humans can react, volatility falls, arbitrage disappears, and liquidity provision becomes a machine-driven process rather than a competitive strategy.

Analysts warn that this dynamic could create what they call a liquidity black hole, where trading continues but the edge that once made day trading viable no longer exists.

AI Market Makers Move From Theory to Practice as Automation Surges

Warnings about this shift have circulated for years. DWF Labs noted in July that AI-driven market makers will increase liquidity, especially in smaller crypto assets with historically thin order books and wide spreads.

Economist Alex Krüger described a future of hyper-efficient markets with little room for mistakes.

BitMEX founder Arthur Hayes wrote that AI would eventually trade better than any human, while Ethereum co-founder Vitalik Buterin expressed concern that advanced systems could dominate MEV extraction and reduce human participation in core market functions.

These observations were treated as hypotheticals at the time, but rising levels of automation have since given them more weight.

As automation accelerates, the human role on trading desks is already changing.

Experts argue that humans will not disappear completely but will shift toward risk supervision, regulatory oversight, and interpreting unusual events that fall outside model expectations.

Execution itself moves to autonomous systems. The growth of AI trading agents reflects this transition.

These tools can research markets, choose strategies, adjust risk parameters, execute trades through APIs, and learn from outcomes without manual input. Forecasts suggest the AI trading bot market could reach approximately $75.5 billion by 2034.

The post The Day Trading Died: Why AGI Might Be the Last Market Maker appeared first on Cryptonews.

The British government is weighing plans to ban cryptocurrency donations to political parties, a development that could hit Nigel Farage’s Reform UK just months after it became the first party in the country to accept digital assets.

The proposal, now under active discussion inside Whitehall, is being considered as part of the forthcoming Elections Bill, according to multiple people familiar with the talks.

Although the government did not confirm the plan outright, it said more details would be set out when the bill is published.

Calls Grow to Restrict Digital Asset Contributions to UK Political Parties

The possibility of a prohibition comes as Reform UK continues to position itself as the most crypto-friendly political force in the country.

Earlier this year, Farage opened the door to digital asset contributions and launched a dedicated donations portal.

He has described the move as part of a broader “crypto revolution” in Britain and has repeatedly told industry audiences that he is the “only hope” for UK crypto businesses.

In October, he told Reuters the party had already received “a couple” of crypto donations after notifying the Electoral Commission, showing the first time such a contribution had ever been recorded in British politics.

For now, the value of those donations has not been disclosed. The debate over crypto political financing has also grown more intense as Reform surges in national polls and the Labour government faces mounting questions about foreign interference.

Transparency experts have warned that digital assets, while publicly traceable on-chain, can mask the true origin of funds when moved through multiple wallets.

Tom Keatinge, director at RUSI, noted that crypto transfers allow money to cross borders into the UK “much easier” than through traditional banking, raising concerns about illicit financing, especially under a system that already bans foreign political donations in almost all circumstances.

Calls for stricter oversight have come from multiple quarters, including former Cabinet Office Minister Pat McFadden, Business Select Committee Chair Liam Byrne, and Phil Brickell, chair of the All-Party Parliamentary Group on Anti-Corruption and Fair Tax.

Lawmakers have argued that existing regulations are insufficient to prevent misuse of cryptocurrency in political donations, noting the potential for anonymity and the difficulty in tracing the original source of funds.

High-Profile MEP Case Sparks Calls for Tighter Electoral Finance Rules in UK

Their warnings have been amplified by recent national security concerns, particularly after former Reform Wales leader Nathan Gill was jailed for more than ten years for accepting payments to make pro-Russian statements while serving as an MEP.

Farage has distanced himself from Gill, calling him a “bad apple,” but the case has intensified calls for tougher rules on political funding.

The Ministry of Housing, Communities and Local Government, responsible for the Elections Bill, stated that the political finance system inherited by the U.K. had left democracy vulnerable to foreign influence.

Officials emphasized that new rules, including those potentially targeting crypto donations, would aim to protect electoral integrity while allowing parties to fund their campaigns responsibly.

The Elections Bill is expected to include new requirements for parties and donors, including restrictions on shell-company contributions and mandatory risk assessments for donations that could expose campaigns to foreign interference.

The UK’s caution stands in sharp contrast to the United States, where digital asset donations have become a major force in federal elections.

American crypto-backed PACs poured more than $190 million into the 2024 cycle, aided by clear reporting rules under the Federal Election Commission.

In Britain, crypto’s political footprint remains minimal. No major party mentioned digital assets in its manifesto during the 2024 general election, and the total number of reported crypto donations remains close to zero.

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Bank of America has taken a major step toward expanding regulated crypto exposure across traditional finance, allowing more than 15,000 of its wealth advisers to recommend Bitcoin exchange-traded funds to clients for the first time.

Confirmed in a statement shared with Yahoo Finance, the move marks a major integration of Bitcoin products into the banking sector to date and indicates a rising appetite for digital assets among large U.S. institutions.

BofA’s New Crypto Access Marks Turning Point Ahead of Potential Stablecoin Launch

Until now, Bank of America’s wealthiest clients could only access Bitcoin ETFs by directly requesting them, leaving advisers unable to initiate any crypto-related recommendations.

However, starting January 5, clients of Merrill, Bank of America Private Bank, and Merrill Edge will gain streamlined access to four spot Bitcoin ETFs.

These include the Bitwise Bitcoin ETF, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust.

The bank is pairing this access with formal guidance that encourages clients to consider a small crypto allocation.

Bank of America’s chief investment officer, Chris Hyzy, said clients with an interest in innovation and an understanding of market swings could consider a 1% to 4% allocation to digital assets.

He noted that the lower end of the range may be suitable for conservative investors, while those with a higher tolerance for portfolio swings may consider the upper end.

Hyzy stressed that the bank’s guidance remains focused on regulated investment vehicles and informed decision-making.

Bank of America, which holds roughly $2.67 trillion in consolidated assets and operates more than 3,600 branches, said the shift reflects rising demand from its client base.

The decision arrives as several other major U.S. financial institutions move deeper into crypto markets.

Morgan Stanley, in October, suggested that investors consider a 2%–4% allocation to crypto.

In January, BlackRock told clients that a 1%–2% Bitcoin allocation falls within a reasonable range, arguing that Bitcoin now carries a risk profile comparable to major tech stocks such as Apple, Microsoft, Amazon, and Nvidia.

Fidelity has also made a similar recommendation, stating that a 2%–5% Bitcoin allocation could offer upside while managing downside exposure.

Additionally, in June, Bank of America CEO Brian Moynihan said the firm has completed substantial groundwork on launching its own stablecoin, though the timeline will depend on regulatory clarity.

He added that the bank intends to meet customer demand when conditions allow.

Major Banks Deepen Crypto Push as Vanguard, Goldman, and JPMorgan Expand Services

Beyond investment guidance, several major banks have accelerated their broader crypto plans.

Vanguard, after years of hesitation, has begun allowing customers to trade crypto-focused ETFs and mutual funds on its U.S. brokerage platform.

Goldman Sachs recently agreed to acquire Innovator Capital Management, adding a set of defined-outcome ETFs, including a Bitcoin-linked product, to its asset-management division.

JPMorgan Chase has ramped up crypto integrations as well, allowing customers to fund Coinbase accounts using Chase credit cards.

Meanwhile, regulators in the United States and abroad are shaping the environment in which these institutions will operate.

The Office of the Comptroller of the Currency recently confirmed that national banks may hold crypto on their balance sheets for activities such as paying blockchain transaction fees.

Additionally, a growing shift among younger investors is also influencing this wave of institutional activity.

A survey from crypto payments firm Zerohash found that 35% of young, high-earning Americans have already moved money away from advisers who do not offer crypto exposure.

More than 80% said their confidence in digital assets increased as major institutions adopted them.

The study also found strong demand for access to a wider range of digital assets beyond Bitcoin and Ethereum.

The post Bank of America Just Unleashed Bitcoin ETFs to 15,000+ Advisers – Here’s Why It Matters appeared first on Cryptonews.

BlackRock executives are warning that the global financial system could be facing its most profound transformation since the introduction of electronic messaging in the 1970s, driven by blockchain-based tokenization.

In a recent column for The Economist, CEO Larry Fink and COO Rob Goldstein called tokenization the “next major evolution in market infrastructure.”

They emphasized its potential to move assets more quickly and securely than legacy financial systems, showing a shift that could reshape how markets operate worldwide.

Tokenization Offers Efficiency, But Experts Warn of Market Fragility

Tokenization, which records ownership of assets on digital ledgers, allows stocks, bonds, real estate, and other holdings to exist as verifiable digital records that can be traded and settled without traditional intermediaries.

The approach aligns with BlackRock’s long-standing commitment to digital markets, dating back to Fink’s 2022 remarks that the next generation of securities will be tokenized.

Fink and Goldstein acknowledged that tokenization was initially overshadowed by the speculative crypto boom.

Yet, beneath the noise, the technology has the potential to expand investable assets and enable near-instant settlement, reducing reliance on manual processes and bespoke recordkeeping that have persisted for decades.

The executives cautioned, however, that adoption will be gradual, likening the process to a “bridge being built from both sides of a river,” connecting traditional financial institutions with digital-first innovators.

While tokenization promises efficiency and broader market access, it also carries risks that could mirror historical financial shocks.

Analysts point to several mechanisms that could amplify losses.

Increased systemic interconnectedness could make widely shared ledgers a single point of failure, while automated trading on programmable ledgers could accelerate market shocks, potentially triggering rapid “flash crashes.”

Legal ambiguities surrounding ownership rights and settlement finality, coupled with cybersecurity vulnerabilities, could exacerbate operational risks.

Additionally, fragmented markets, high leverage, and concentration of infrastructure among a few dominant players may increase systemic fragility.

Experts warn that a large-scale operational failure or confidence crisis could produce losses reminiscent of the post-Bretton Woods era in the early 1970s.

Tokenized Markets Grow Fast; EU Warns Oversight Crucial for Stability

European regulators are increasingly focused on the growth of tokenized financial assets, balancing innovation with oversight.

Natasha Cazenave, Executive Director of ESMA, outlined the potential and risks of wrapping conventional instruments in digital layers.

Once a niche area, tokenized assets now represent a global market of roughly $600 billion, with the issuance of tokenized fixed-income instruments exceeding €3 billion in 2024.

The Skynet RWA Security Report projects that tokenized real-world assets could reach $16 trillion by 2030, with Europe positioned to lead.

Pilot projects by Société Générale, Santander, the European Investment Bank, and Germany’s Ministry of Finance demonstrate growing interest, though the market remains fragmented.

Cazenave emphasized that regulatory alignment is critical to ensure investor protections and prevent instability.

Globally, tokenization is reshaping access to private markets. Institutional investors expect tokenized instruments to make up 10–24% of portfolios by 2030.

Currently, digital assets average 7% of institutional holdings, expected to rise to 16% within three years, driven by tokenized equities, fixed income, and digital cash, according to State Street research.

Challenges remain on the issuer side. Infrastructure for identity verification, compliance, and cap-table management lags behind front-end trading platforms, slowing onboarding, complicating reconciliation, and limiting secondary market liquidity.

Authorities worldwide are taking note. In November, the IMF highlighted tokenization’s potential to accelerate transactions and reduce costs, while cautioning that automated markets could amplify volatility and systemic risks.

Notably, in the UK, a “digital markets champion” and the Dematerialisation Market Action Taskforce are overseeing the issuance of digital gilts on distributed ledgers.

Data from RWA(.)xyz shows the distributed asset market currently represents $18.41 billion, with $391.55 billion in represented asset value across more than 555,000 asset holders.

The post BlackRock CEO: Tokenization to Trigger Finance’s Biggest Overhaul Since the 1970s — How? appeared first on Cryptonews.

CEA Industries Inc. (NASDAQ: BNC), the company that only months ago was promoted as the largest publicly traded BNB treasury in the United States, is now at the center of an escalating governance battle after Changpeng “CZ” Zhao’s YZi Labs filed a sweeping consent solicitation with the U.S. Securities and Exchange Commission.

The filing marks a direct attempt to overhaul the company’s board, unwind recent bylaw changes, and install new leadership at a firm that has seen its share price collapse despite holding one of the largest institutional BNB positions on record.

YZi Labs Moves to Replace BNC Directors After Months of Governance Disputes

The preliminary Schedule 14A, submitted Monday, asks BNC shareholders to approve expanding the board of directors, repealing any amendments made after July, and electing a new slate of directors nominated by YZi Labs.

The filing includes a white consent card allowing shareholders to formally support or reject the proposals.

If a majority of outstanding shares consent, YZi Labs would gain the ability to restructure the board through written authorization without the need for a shareholder meeting.

YZi Labs, which holds roughly 5% of BNC’s outstanding shares, argued in its statement that the current board has failed to provide timely disclosures, execute on corporate actions, or maintain basic investor communications.

The firm said BNC shareholders “deserve a well-functioning board” and warned that failure to act would lead to “further destruction of shareholder value.”

The consent solicitation follows months of tension between the two sides, documented through repeated requests for information and governance concerns raised by YZi Labs.

The dispute intensified after CEA Industries’ $500 million PIPE financing in August, which funded the company’s transformation into a BNB-focused digital asset treasury.

Shares soared more than 600% in July as the treasury strategy was announced, but the company’s stock has since fallen over 92%, closing recently at around $6.47, even as BNB itself reached a record high above $1,300 in October before retreating to the $820 range.

BNC’s reported net asset value stands at $8.09 per share, pushing the stock’s mNAV multiple down to roughly 0.8×.

Filing Accuses CEA Industries of Operational Lapses and Leadership Conflicts

YZi Labs’ filing lists a range of operational failures, including delays in filing registration documents for an at-the-market offering, a lack of investor updates, and an unfinished investor relations website months after the PIPE.

It also says the company provided no regular reporting on net asset value, BNB yield, or accumulation rates.

The group raised further concerns over branding confusion, with the company switching between “CEA Industries” and “BNB Network Company” without clear guidance to investors.

The filing also cites potential conflicts of interest within the leadership structure. CEO David Namdar, director Hans Thomas, and former 10X Capital executive Russell Read all have ties to 10X Capital, the firm responsible for managing BNC’s digital asset treasury.

According to YZi Labs, Namdar and Thomas took part in discussions promoting other crypto treasury ventures while leading BNC, prompting questions about their focus and independence.

The firm said it repeatedly sought clarity on executive employment terms and management fees but did not receive responses.

The battle comes as CEA Industries holds one of the world’s largest disclosed BNB treasuries, with approximately 480,000 to 515,000 BNB accumulated at an average cost near $851 per token.

At recent prices, the holdings are valued around $412 million, alongside $77.5 million in cash.

The company has previously stated its goal is to accumulate 1% of BNB’s total supply by the end of 2025.

The names of YZi Labs’ proposed director nominees remain redacted in the preliminary filing. CEA Industries has not yet issued a public response to the consent solicitation.

The post CZ’s YZi Labs in Boardroom Coup Bid for World’s Largest BNB Treasury appeared first on Cryptonews.

Yorkville Acquisition Corp. has filed a confidential Form S-4 with the U.S. Securities and Exchange Commission, marking a major step toward completing its proposed business combination with affiliates of Trump Media & Technology Group and Crypto(.)com.

The filing comes as the SPAC appoints two public-company veterans, Steve Gutterman as chief executive officer and Sim Salzman as chief financial officer, ahead of the launch of a new digital-asset treasury company focused on the Cronos (CRO) ecosystem.

Yorkville’s MCGA SPAC Moves Forward, Names New CEO and CFO

According to the filing, the SPAC, which trades on Nasdaq under the ticker MCGA, said it advances its proposed business combination with affiliates of Trump Media & Technology Group and Crypto(.)com.

Once the transaction closes, the company will be renamed Trump Media Group CRO Strategy and continue trading under the symbol MCGA, short for “Make CRO Great Again.”

Alongside the filing, Yorkville announced the naming of two veteran executives to lead the entity. Both executives will begin transitioning into their roles as the deal approaches completion, which is expected in the first quarter of 2026.

The business combination seeks to establish a publicly traded digital-asset treasury focused on accumulating and managing large reserves of Cronos (CRO), the native token of the Cronos blockchain ecosystem.

Under the arrangement, founding partners, including Trump Media, Crypto(.)com, and Yorkville, will contribute assets to build a company centered on CRO acquisition, platform integration, and long-term treasury growth.

Yorkville CEO Kevin McGurn said the new appointments provide the leadership required for what he described as a high-value opportunity for shareholders.

Executives from Crypto(.)com and Trump Media echoed that message, citing the incoming team’s experience in digital assets, capital markets, and large-scale corporate transactions.

Gutterman brings decades of public-company leadership experience, including a recent stint as CEO of Gryphon Digital Mining, where he oversaw a corporate turnaround and eventual sale to American Bitcoin.

Earlier in his career, he held senior roles at ETRADE Financial and ETRADE Bank. Salzman also previously held senior finance roles at Gryphon, Marathon Digital Holdings, Corner Bar Management, and the Las Vegas Monorail Company.

CRO Treasury Plans Advance Despite 34% Price Slide and $38M Unrealized Loss

The CRO-focused entity they will lead has been taking shape for months. The strategy was first announced in August 2025, outlining a plan to position the company as the first major publicly traded CRO treasury.

Initial funding commitments include roughly $1 billion worth of CRO tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line of credit from Yorkville affiliate YA II PN, Ltd.

If executed as proposed, the company would manage one of the largest single-asset crypto treasuries in the market, with nearly all reserves allocated to CRO.

The structure mirrors a corporate treasury model similar to Strategy’s long-running accumulation of Bitcoin, but applies the concept to the Cronos ecosystem.

The company intends to acquire CRO, stake its holdings through Crypto(.)com Custody, and generate a yield estimated at around 6% annually. It also plans to run a validator node on Cronos to further support network functions while compounding rewards.

Meanwhile, Trump Media has been integrating CRO more deeply into its own platforms. Over the past several months, the company has replaced plans for an in-house utility token with a system that converts Truth Social “gems” into CRO via Crypto.com’s wallet infrastructure.

CRO-based payments for subscriptions and platform features are planned for future releases.

Trump Media has also purchased hundreds of millions of CRO tokens directly. In September, it closed a $105 million agreement with Crypto.com to acquire 684.4 million tokens at an average price of about $0.153.

CRO’s market performance has been volatile during these developments. Trump Media Corp. currently holds 756 million CRO, valued at approximately $75 million, showing an unrealized loss of about $38.7 million amid a 34% price decline.

The token is trading around $0.099, down 32% over the past month.

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