
Coldcard Wallet Losses May Near $114 Million as Possible Fourth Sweep Emerges
A possible fourth sweep of Coldcard wallets may push losses to $114 million. Users have minutes to act if they see their address in the mempool.
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A possible fourth sweep of Coldcard wallets may push losses to $114 million. Users have minutes to act if they see their address in the mempool.

Yields on Bitcoin futures have fallen below those of two-year U.S. Treasury notes, a sign of a maturing market. This shift could impact arbitrage opportunities and investor strategies in the crypto space.

BlackRock has launched tokenized versions of its money market funds on both Solana and Ethereum blockchains. The funds use stablecoins for reserves, bringing traditional financial products to crypto users.

Panelists at a Prague industry event argued that Bitcoin is nearing the bottom of an extended downturn and positioned for a move toward $120,000. Expanding corporate treasuries, rising nation-state engagement, and macro debasement are reshaping market dynamics and challenging the traditional four-year cycle.

Former CFTC Chairman Chris Giancarlo says digital asset innovation will advance regardless of whether Congress passes the Clarity Act. In a wide-ranging interview, he also addressed prediction markets, financial privacy, and the regulatory outlook in Washington.

1. OVERNIGHT MOVES

A developer has built Btfy, an experimental blockchain that uses real-world weather observations as a source of unpredictability for consensus, combined with a Verifiable Delay Function (VDF). The project is not production-ready but aims to explore whether natural randomness can reduce reliance on energy-intensive proof-of-work.

Tether, the company behind the world's largest stablecoin USDT, reported a $1.5 billion profit in Q2 2026. The company's reserves now include over 146 metric tons of gold, alongside U.S. Treasuries and repo agreements.

Circle has obtained a limited-purpose trust charter from New York's financial regulator, adding state-level oversight to its already federally approved stablecoin operations. This dual-layer regulation enhances the regulatory framework for USDC, the second-largest stablecoin by market cap.

A security flaw in Coldcard hardware wallets has smaller Bitcoin holders moving funds back to exchanges for safety. This reverses the trend seen after the FTX collapse in 2022, where investors withdrew from exchanges. The exploit resulted in a loss of $89 million, according to blockchain analytics firms.

Crypto exchanges built perpetual futures for digital assets. Now they are using them to offer 24/7 exposure to stocks, commodities and indexes, bridging the gap between crypto and Wall Street.

A major DeFi platform has abandoned its consumer app to focus on institutional clients, seeing revenue drop from $80 million to $20 million in the bear market. Its over-the-counter (OTC) lending business, now at $260 million outstanding, is growing rapidly and aims to hit $1 billion by year-end.

A Dubai-based crypto exchange, Shelbit, reportedly processed $4B since May 2024, with $676M flowing to Binance. The operation is tied to Iranian gambling sites, the central bank, and the IRGC, according to Reuters.

OFAC sanctioned two Iranian firms including Hormuz Safe, which accepts payment in Bitcoin and other digital assets for passage through the Strait of Hormuz.

Bitwise Chief Investment Officer Matt Hougan projects Bitcoin could reach up to $400,000 in its next cycle while calling DeFi and real-world asset tokenization the market's most promising sector.

1. OVERNIGHT MOVES

AMLBot launched AI Tracer, a tool that lets anyone track stolen digital assets without needing forensic expertise. The service uses AI to trace transactions, even complex ones, across blockchains.

Several users of the long-defunct crypto exchange reported that distribution agents had begun releasing funds to reimburse creditors for some of their 2022 losses.

Circle, the issuer of the USDC stablecoin, has received a New York trust charter, adding to its recent federal banking approval. This move strengthens Circle's regulatory standing and could enhance its stablecoin operations.

Binance founder Changpeng Zhao (CZ) advised Bitcoin holders to diversify their storage methods after a $70 million exploit involving Coldcard wallets. The incident highlights the risks of storing large amounts of cryptocurrency in a single wallet.

The XRP Ledger is getting an upgrade next week that brings back two features previously removed due to critical bugs. The update includes five proposed amendments, focusing on security and functionality improvements.

The SEC will review its approval of Nasdaq's bitcoin options after CME argued these products should be regulated by the CFTC, not the SEC. This dispute highlights the ongoing regulatory uncertainty around cryptocurrency derivatives.

Bitcoin's mining difficulty has dropped 14% from its 2026 peak, as falling revenues force miners to shut down operations. Forward markets suggest no immediate relief, signaling continued pressure on the industry.

A sophisticated attack on Bitcoin cold wallets has now affected 4,500 addresses, with total losses nearing $89 million. The attacker is exploiting weak keys generated by Coldcard wallets and has shifted tactics to target smaller balances and alter how funds are collected on-chain.