Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Strategy Multi-Billion Dollar Loss: Strategy faces an unrealized loss of over $11 billion on its hoard of 840,000 BTC.

2. Arthur Hayes Exits HYPE and NEAR: BitMEX co-founder Arthur Hayes has completely liquidated his Hyperliquid (HYPE) and Near Protocol (NEAR) positions to lock in profits.

3. Coinbase’s SpaceX Perpetual Futures: Coinbase has launched USDC-settled perpetual futures contracts tied to the private market valuation of Elon Musk's SpaceX.

4. 💡Feature of the Day - Mastercard Expands Stablecoins Settlement: Mastercard has integrated regulated stablecoins like USDC and PYUSD into its global settlement infrastructure.

   
   All this and more in today’s headlines!

Trade What BTC Does Next — Not Just Whether You Own It

Crypto never sleeps, and neither does Kalshi. Trade whether BTC ends the day above $100K, whether ETH pumps in the next hour, or whether the market closes green this week. No wallets, no gas fees, no exchange risk — just your read on the market. Institutional volume is up 800% in six months. There's a reason the smart money is here.

Trade $10, get $10 free to start.

Start Trading Crypto Markets

_{Trade responsibly.}

📰 News Highlights:

Strategy Multi-Billion Dollar Unrealized Loss [Source][Source][Source]

The absolute fragility of using a volatile digital asset as a corporate treasury anchor has been laid bare as Strategy faces a staggering unrealized loss of over $11 billion. With a massive hoard of over 840,000 BTC, the firm's reserve dashboard has plunged into a deep paper deficit after Bitcoin prices dipped below their average acquisition cost.

Twitter tweet

True to form, Michael Saylor is completely dismissing the downturn, stubbornly maintaining that this brutal paper loss is merely a temporary capital rotation into AI infrastructure rather than a flaw in his treasury model. Market analysts are aggressively split on the fallout, though some notes indicate that wild fluctuations in the company’s preferred stock (STRC) are simply par for the course for such an experimental instrument.

Twitter tweet

Despite the current bloodbath, financial researchers at Standard Chartered suggest that this treasury volatility might actually signal an impending market bottom. Historical accumulation cycles show that Strategy has a habit of executing massive buy orders shortly after periods of asset reallocation.

Twitter tweet

If the organization follows its established playbook and steps in to neutralize the current weekend selling pressure, its re-entry could establish a firm price floor. Until those buy orders actually hit the ledger, however, the company remains heavily exposed to a punishing paper deficit that serves as a warning label for corporate crypto adoption.

Arthur Hayes Exits HYPE and NEAR Positions [Source][Source][Source][Source][Source]

In a swift and unceremonious about-face, BitMEX co-founder Arthur Hayes has completely liquidated his holdings in Hyperliquid (HYPE) and Near Protocol (NEAR). This aggressive capital flight represents a total destruction of his previously bullish, sky-high price targets for both prominent altcoins.

Twitter tweet

On-chain data has officially confirmed the sales, marking a stark shift in tone from an investor who was recently wagering that these specific assets would heavily outperform the broader market leaders. Hayes explicitly stated that he is moving to lock in profits now, firmly anticipating a macro market peak well before the autumn months roll in.

Twitter tweet

This sudden defensive pivot is heavily driven by real-world macro anxieties, specifically rising energy costs tied directly to intensifying Middle East geopolitical tensions. Furthermore, Hayes is sounding the alarm on a massive liquidity drain as a wave of high-profile artificial intelligence initial public offerings prepares to hit traditional equity markets.

Twitter tweet

Digital asset traders are closely watching prediction markets to gauge the exact timing of listings from tech titans like OpenAI and SpaceX.

Twitter tweet

There is a palpable fear throughout the second half of 2026 that these monster AI IPOs will act as a liquidity black hole, completely sucking vital capital right out of the cryptocurrency ecosystem.

Twitter tweet

Coinbase’s SpaceX Perpetual Futures [Source][Source][Source][Source]

Coinbase is aggressively rewriting the rules of pre-IPO speculation by launching an innovative line of trading products linked directly to private market valuations. The inaugural offering features a perpetual futures contract tied directly to the estimated valuation of Elon Musk's SpaceX, a dominant titan in satellite and transport technology.

Twitter tweet

Settled entirely in USDC and operating on a 24/7 basis, this synthetic tool allows eligible non-US users to gain direct price exposure to the space firm's performance. It is a brilliant distribution play that unlocks high-value private equity valuations that have historically been trapped behind the walled gardens of venture capital and elite institutional circles.

Twitter tweet

This launch signals a fierce, accelerating trend among top-tier digital asset platforms to aggressively capture market share through real-world asset tokenization. Coinbase is diving headfirst into an intense competitive landscape where rival crypto exchanges are scrambling to roll out fractional, tokenized access to pre-listing businesses.

Twitter tweet

While this synthetic market segment is still finding its footing and maturing, the massive global demand for pre-IPO exposure is undeniable. By transforming traditionally illiquid private equity into an everyday trading commodity, Coinbase is successfully differentiating its global service offerings in a crowded market.

Twitter tweet

💡 Feature of the Day: 

Mastercard Expands Mainstream Stablecoins Settlement [Source][Source][Source][Source]

Mastercard is executing a massive operational upgrade by embedding regulated stablecoins directly into the plumbing of its global settlement infrastructure. This systemic shift allows card issuers and financial institutions to use tokenized dollars like USDC and PYUSD to clear card transactions seamlessly.

Twitter tweet

By enabling on-chain settlement alongside traditional fiat rails, the payment giant is giving its global partners unprecedented liquidity flexibility to manage funds over weekends, holidays, and regular business days. Backed by newly acquired digital asset business licenses in key financial markets, Mastercard is building a highly secure, legally compliant foundation for mainstream on-chain settlement.

Twitter tweet

The architecture is explicitly built to be blockchain-agnostic, supporting a wide range of assets across diverse networks including Ethereum and Solana. This evolution in payment processing mirrors an industry-wide scramble where major legacy competitors are forcing stablecoins into their networks to achieve near-instant speeds and eradicate operational overhead.

Twitter tweet

As these digital-dollar solutions become deeply institutionalized, the traditional remittance and cross-border payment sectors are bound to see radical efficiency gains. Mastercard’s multi-network rollout is a definitive acknowledgment that the historic delays hindering global value transfer are officially a thing of the past.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @Financial_Hyena

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Gravity Bridge Security Breach: Gravity Bridge suspended operations after a suspected contract signing key compromise allowed an attacker to bypass authorizations and drain $5.4 million in USDC, WETH, and PAX Gold tokens.

2. Coinbase US Institutions Crypto Derivatives: Coinbase Financial Markets launched regulated access to global crypto options and perpetual futures for US institutions by partnering with Deribit to onshore high-volume derivatives activity.

3. CFTC Approves Crypto Derivatives 24/7 Markets: The CFTC officially approved Kalshi to offer Bitcoin perpetual futures contracts and issued a regulatory no-action position for Coinbase, formally acknowledging the 24/7 global nature of digital asset derivatives.

4. 💡Feature of the Day - SEC Commissioner Advocates Financial Privacy Rights: SEC Commissioner Hester Peirce publicly defended financial privacy rights, urging regulators to view privacy-enhancing technologies as core infrastructure and inviting developers to work with the SEC’s Crypto Task Force on compliant anonymity tools.

   
   All this and more in today’s headlines!

Trade What BTC Does Next — Not Just Whether You Own It

Crypto never sleeps, and neither does Kalshi. Trade whether BTC ends the day above $100K, whether ETH pumps in the next hour, or whether the market closes green this week. No wallets, no gas fees, no exchange risk — just your read on the market. Institutional volume is up 800% in six months. There's a reason the smart money is here.

Trade $10, get $10 free to start.

Start Trading Crypto Markets

_{Trade responsibly.}

📰 News Highlights:

Gravity Bridge $5.4M Security Breach [Source][Source]

The decentralized bridge model has suffered yet another catastrophic failure, thoroughly draining what little institutional trust remained in cross-chain infrastructure. Gravity Bridge, a critical protocol facilitating interoperability between Ethereum and Cosmos, was forced to suspend all operations following a suspected compromise of its contract signing key.

Twitter tweet

The attacker weaponized the compromised key to seamlessly bypass normal security authorizations, walking away with $5.4 million in assets, including USD Coin (USDC), Wrapped Ether (WETH), and PAX Gold tokens. To make matters worse, on-chain data shows the hacker has already begun laundering portions of the stolen capital through instant-swap services.

Twitter tweet

This exploit isn't just an isolated disaster; it is a symptom of a broader, systemic rot plagueing the DeFi sector throughout 2026. Following the catastrophic exploit of KelpDAO earlier this year, total value locked across the industry has been subjected to violent volatility as panicked investors yank capital out of vulnerable pools.

The fact that the Gravity Bridge team had to frantically instruct validators and orchestrators to halt their nodes to stop the bleeding proves how fragile these multi-million dollar architectures truly are.

Coinbase Crypto Derivatives for US Institutions [Source][Source][Source]

Coinbase Financial Markets is executing a massive power play to capture the institutional market by launching regulated access to global crypto options and perpetual futures. By utilizing a registered futures commission merchant, the exchange is directly connecting US-based institutional entities with international liquidity venues, starting with a crucial integration with Deribit, the world's largest crypto options exchange by open interest.

Twitter tweet

Supported by fresh regulatory clarity, the platform allows institutional clients to onboard immediately. This institutional-grade upgrade marks a major shift to provide sophisticated firms with the necessary tools for round-the-clock hedging and transparent price discovery.

Twitter tweet

This launch represents a pivotal, aggressive step in the broader effort to "onshore" high-volume derivatives activity that has historically been exiled to offshore platforms due to jurisdictional constraints. Capitalizing on a growing trend of approved crypto derivatives products, like volatility futures and index-based contracts, Coinbase is aggressively positioning itself as the premier gateway for American capital.

Twitter tweet

Both the CFTC and commercial entities are heavily prioritizing these 24/7 trading capabilities to mature the market's infrastructure. By bringing perpetual futures trading back to regulated, US-based platforms, Coinbase is effectively rewriting the rules of domestic digital asset trading.

CFTC Approves Crypto Derivatives and 24/7 Markets [Source][Source][Source]

The Commodity Futures Trading Commission (CFTC) has signaled a monumental shift in how federal regulators view digital assets by aggressively expanding the limits of US crypto speculation. In a definitive milestone for the industry, the agency officially approved Kalshi to offer perpetual futures contracts tied to the spot price of Bitcoin, while simultaneously issuing a crucial regulatory no-action position for Coinbase.

Twitter tweet

These "perp" products allow participants to trade price exposure without ever touching the underlying assets. This represents a fundamental acknowledgement from Washington that digital asset derivatives are uniquely suited to inherit traditional market structures.

Twitter tweet

The agency's formal guidance further solidifies this stance, explicitly noting that unlike traditional agricultural markets tied to specific time zones, crypto derivatives are inherently global, digital, and ideal candidates for 24/7 trading cycles. However, this regulatory progress is unfolding against a backdrop of severe internal instability at the agency.

Twitter tweet

Chair Michael Selig currently operates as the sole confirmed commissioner, leaving the CFTC heavily understaffed while fighting state-level lawsuits over its jurisdiction. It remains to be seen if a hollowed-out commission can successfully balance its explosive new oversight duties with intense political pressure.

💡 Feature of the Day: 

SEC Commissioner Advocates Financial Privacy Rights [Source][Source][Source]

In a refreshing break from the regulatory status quo, SEC Commissioner Hester Peirce is mounting a fierce, public defense of financial privacy rights in the digital asset age. During a recent address, Peirce argued that cryptographic, privacy-enhancing technologies should be viewed as core financial infrastructure rather than illicit tools for criminal behavior.

Twitter tweet

She issued a stark warning to fellow regulators, stating that excessive surveillance of citizens' financial lives values control over safety and risks undermining personal security against cyber threats. For Peirce, protecting transaction data from exploitation is a fundamental right that agencies must stop infringing upon under the guise of national security.

Twitter tweet

Peirce is actively trying to shift the paradigm from knee-jerk suspicion to structural collaboration by inviting privacy developers to engage directly with the SEC’s Crypto Task Force. The goal is to design innovative tools that can satisfy strict Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance standards without compromising user anonymity.

Twitter tweet

This bold call to action arrives at a critical juncture, as international bodies, particularly within the European Union, prepare to implement heavy-handed rules that could restrict access to privacy-focused assets entirely. Finding this regulatory middle ground will dictate whether the future of finance respects human dignity or defaults to total surveillance.

😂 Crypto Meme of the Day: 

Meme of the day provided by @pulse

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. DxSale Liquidity Locker Exploit: Token launch and liquidity locking platform DxSale suffered a $7.3 million exploit on the BNB Chain, directly impacting approximately 1,400 liquidity providers.

2. Gemini Partners with SpaceXAI: To combat declining spot and derivatives trading volumes, Gemini has launched a prediction market platform and partnered with Elon Musk’s SpaceXAI division.

3. Paxos Earns SEC Clearing Agency Approval: Paxos has secured official registration from the SEC to operate as a blockchain-native clearing agency and central securities depository in the U.S.

4. 💡Feature of the Day - Trump Administration Pushes CLARITY Act: President Donald Trump announced on Truth Social that his administration is pushing to finalize and codify the Digital Asset Market Clarity (CLARITY) Act into permanent federal law to establish a fixed market structure framework.

   
   All this and more in today’s headlines!

Investors see ANOTHER return from Masterworks (!!!!)

That’s 6 sales in 7 months. 29 all time. And the performance?

16.5%, 17.6%, and 17.8%, net annualized returns on sold works held longer than one year (See all 29 at Masterworks.com)

It’s not from stocks, private equity, or real estate… it’s from contemporary and post war art. Crazy, right?

With Masterworks, you don’t need to be a BILLIONAIRE to invest in multi-million dollar art anymore.

Historically, the segment overall has had attractive appreciation and low correlation to stocks.*

Masterworks targets works featuring legends like Banksy, Basquiat, and Picasso, identifying what they believe to have significant long-term appreciation potential, not just at the artist level but at the level of individual artworks.

As one of the largest players in the art market, with $1.3 billion invested over 500 artworks, they pass critical advantages through to their 70,000+ members to add art to their portfolios strategically.

Looking to diversify your investments in 2026?

Click here to skip the waitlist

^{*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.}

📰 News Highlights:

DxSale Suffers $7.3 Million Exploit [Source][Source][Source]

The decentralized finance sector has just been hit with another harsh reminder that "locked" liquidity is only as secure as the code protecting it. DxSale, a prominent token launch and liquidity locking platform, suffered a devastating $7.3 million exploit on the BNB Chain that directly impacted roughly 1,400 liquidity providers.

Twitter tweet

This wasn't a sophisticated, high-level attack on the underlying blockchain architecture itself. Instead, security researchers at PeckShield and other analysts discovered a hidden backdoor embedded within the platform's locker contract that had been left exposed for months.

Twitter tweet

The mechanics of the breach expose an absolute failure in privileged configuration management and administrative oversight. The attacker cleverly manipulated backdated locks and weaponized privileged fee settings to transform what was supposed to be a secure storage vault into an open extraction point.

Twitter tweet

Blockchain analysts tracked a series of ownership transfers explicitly designed to muddy the waters before the attacker drained the BNB tokens. For an industry trying to shed its Wild West reputation, this incident highlights a terrifying trend: legacy code decay and unmonitored infrastructure are turning older protocols into prime targets for catastrophic capital drain.

Gemini Expands Prediction Markets with AI [Source][Source][Source]

Faced with a prolonged crypto trading slump that has aggressively squeezed spot and derivatives volumes, Gemini is executing an aggressive pivot into AI automation and prediction markets.

Twitter tweet

The exchange has officially partnered with Elon Musk’s SpaceXAI division to integrate the Grok AI model directly into its newly launched prediction market platform. This integration anchors a personalized "Command Center" designed to fundamentally alter how users interact with real-time binary event contracts. Instead of forcing traders to sift through chaotic social media feeds, the interface surfaces highly tailored intelligence streams.

Twitter tweet

The strategy here is a blatant attempt to engineer user engagement and capture market share from entrenched industry giants. By actively analyzing a user's specific watchlists, historical activity, and open betting positions, the Grok-powered tool delivers curated data feeds across politics, sports, and economic events.

This builds upon Gemini's recent product roadmap, which already includes account integrations with models like ChatGPT for autonomous trade monitoring. It is a calculated, multi-million dollar bet that the future of survival for crypto exchanges relies on transitioning into full-service, intelligence-driven financial hubs.

Paxos Secures SEC Approval [Source][Source]

In a historic milestone for institutional digital asset plumbing, Paxos has officially secured registration from the U.S. Securities and Exchange Commission as a blockchain-native clearing agency. Operating through its subsidiary, the Paxos Securities Settlement Company, this regulatory nod legally permits the firm to act as a central securities depository in the United States.

Twitter tweet

The approval represents the culmination of seven years of intense, painstaking dialogue with federal regulators. It marks a monumental shift from experimental blockchain pilots toward the formal rewiring of Wall Street's post-trade infrastructure.

By integrating tokenized rails directly into traditional institutional workflows, Paxos can now provide banks and brokerages with cost-effective, same-day settlement for stocks and eligible securities. This milestone carries heavy regulatory weight, especially considering Paxos successfully navigated past enforcement hurdles regarding stablecoin issuances to reach this point.

The SEC’s decision sends an undeniable signal to the broader financial ecosystem: regulators are finally willing to accept blockchain tools as critical components of global capital markets. By offering a fully compliant bridge to move assets on-chain, Paxos has effectively broken the monopoly on traditional financial clearing.

💡 Feature of the Day: 

Trump Pushes to Codify Crypto Market Structure [Source][Source][Source][Source]

President Donald Trump is aggressively leveraging his political capital to permanently reshape the digital asset landscape by pushing to finalize the Digital Asset Market Clarity (CLARITY) Act. Taking to Truth Social, the president made it explicitly clear that his administration intends to codify these sweeping market structure standards into federal law.

Donald J. Trump (@realDonaldTrump)

Gary Gensler and the “Anti-Crypto Army” nearly DESTROYED the American Crypto Industry by driving Bitcoin, Crypto Perpetuals, and INNOVATION offshore, but “TRUMP” SAVED IT. America is now the CRYPTO CAPITAL of the WORLD, and Builders and Entrepreneurs are coming BACK to the United States where they belong. Under my Leadership, we will codify a FUTURE-PROOF Digital Asset Market Structure that cannot be undone by the Crypto Haters. The new Frontier of Finance is being Built in America, and “TRUMP” will NEVER let Crypto down! President DONALD J. TRUMP

Truth Social

The overarching legislative goal is to establish a rock-solid, permanent regulatory framework that future administrations cannot easily dismantle or reverse. By removing the persistent shadow of regulatory enforcement-by-loophole, the bill aims to give digital asset firms the long-term operational stability they have spent a decade begging for.

Twitter tweet

However, the administration’s ambitious timeline is currently slamming into severe legislative roadblocks within a gridlocked Senate. Beyond complex technical debates over token classification, the bill is heavily weighed down by intense scrutiny regarding ethics and potential conflicts of interest among political figures attached to crypto projects.

Twitter tweet

Simultaneously, a fierce turf war is raging over who actually controls the exploding prediction market sector. Trump-appointed CFTC Chair Michael Selig is aggressively asserting exclusive federal oversight over these betting platforms, a heavy-handed consolidation of authority that is already drawing sharp legal challenges from state authorities.

😂 Crypto Meme of the Day: 

Meme of the day provided by @bitget

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Polymarket Wallet Drain: On-chain investigator ZachXBT and data firm Bubblemaps confirmed that a hacker drained $700,000 from an internal rewards wallet belonging to Polymarket on the Polygon network.

2. Kevin Warsh FED Policy Divide: Following Kevin Warsh’s appointment as Federal Reserve Chair, CME FedWatch data shows that 68% of traders are pricing in a rate hike by the end of 2026 to combat inflation.

3. CFTC Internal Purge Allegations: A New York Times investigation revealed claims from career officials at the CFTC alleging they were systematically sidelined or purged by then-acting Chair Caroline Pham and senior counsel Brigitte Weyls.

4. 💡Feature of the Day - MoonPay & ChatGPT Integration: MoonPay has integrated direct cryptocurrency purchasing capabilities into the ChatGPT interface. Users researching digital assets can now receive context-aware checkout links to buy Bitcoin, XRP, and Solana natively within the OpenAI app.

   
   All this and more in today’s headlines!

Bloomberg: "No reliable safe havens." Billionaires have been investing elsewhere. Here's how to get in.

Bloomberg's Marcus Ashworth wrote plainly recently: "No more reliable safe havens."

After all, the S&P fell over 7% from the February peak. Bonds, even with less risk, are barely keeping pace with inflation.

So-called "diversified" portfolios have gotten hit from multiple directions.

Meanwhile, the world’s wealthiest have been setting records in another asset class.

Circumstances are always unique, but after the dot-com bust, it grew roughly 24% annually for a decade. After 2008, roughly 11% annually for 12 years.

Blue-chip art.

Why? It trades globally in multiple currencies, has scarce supply, and has shown near-zero correlation to equities since 1995.*

With Masterworks, 70,000+ investors allocated $1.3B fractionally across 500+ artworks featuring Banksy, Basquiat, and Picasso.

Accredited? You can invest in a diversified portfolio of postwar and contemporary art alongside two other real assets. From 2017-2025, the mix would’ve beat the S&P 500 by 3.1x.

See if you can improve your portfolio performance all in one diversified strategy.

Our subscribers skip the waitlist

^{*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd}

📰 News Highlights:

Polymarket Suffers $700,000 Wallet Drain [Source][Source][Source][Source]

The prediction market darling Polymarket just learned a harsh lesson in basic operational security after a hacker thoroughly drained an internal rewards wallet on the Polygon network. On-chain investigator ZachXBT first flagged the suspicious activity, which data firms like Bubblemaps quickly confirmed resulted in a loss of roughly $700,000 spread across multiple addresses.

Twitter tweet

Fortunately for bettors, developers rushed to clarify that the exploit was isolated to operational top-up keys, leaving core smart contracts and individual user funds completely untouched.

Twitter tweet

This security failure highlights a dangerous trend where attackers are completely abandoning the hunt for complex smart contract logic bugs. Instead, malicious actors are actively weaponizing poor key management, targeting privileged administrative wallets that handle routine corporate upkeep.

Twitter tweet

For an industry that prides itself on decentralized, impenetrable code, this incident serves as a glaring reminder that human operational errors remain the easiest backdoor for a thief. If protocols don't start enforcing stricter internal signing policies, these mundane key leaks will keep undermining their structural integrity.

The Kevin Warsh Divide [Source][Source][Source]

A massive ideological battle is brewing over the future of U.S. monetary policy following Kevin Warsh’s high-stakes appointment as Federal Reserve Chair. Traditional market consensus is looking decidedly defensive, with CME FedWatch data showing that nearly 68% of traders are actively pricing in a rate hike by the end of 2026.

Twitter tweet

However, prominent market observer Lawrence Lepard is loudly bucking the trend, boldly predicting that Warsh will actually cut interest rates by framing stubborn inflationary pressures as transitory and focusing heavily on productivity gains.

This contrarian view leans heavily on political reality, especially after President Donald Trump explicitly used his swearing-in ceremony to demand policies that avoid stifling economic potential.

Twitter tweet

The White House is clearly hyper-focused on inflating its way out of national debt through aggressive GDP growth, which puts immense, uncomfortable pressure on the central bank to ease borrowing costs. Critics are already sounding the alarm over the Fed's ultimate independence, fearing that Executive Branch bullying could totally compromise Warsh’s ability to manage long-term inflation stability.

Alleged Political Purges at the CFTC [Source][Source][Source][Source]

The Commodity Futures Trading Commission (CFTC) is facing a catastrophic whistle-blower crisis following a scathing New York Times investigation detailing alleged internal corruption. Career officials claim they were systematically purged or sidelined by then-acting Chair Caroline Pham and senior counsel Brigitte Weyls after daring to question crypto firms with documented business ties to the Trump family.

Twitter tweet

High-profile entities like Polymarket, Crypto.com, and Gemini Titan reportedly had their application hurdles forcefully bypassed by leadership while career regulators who raised standard compliance objections were shown the door.

Twitter tweet

The statistical fallout from this alleged internal capture is absolutely damning: the CFTC has announced a mere two crypto-related cases under the second Trump administration, a near-total collapse from the 80+ cases brought during the previous term.

Twitter tweet

Ongoing investigations into major crypto exchanges have mysteriously evaporated without a shred of public explanation, drawing furious condemnation from lawmakers like Senator Richard Blumenthal.

Twitter tweet

With the agency operating with multiple vacant commissioner seats, Congress is facing intense pressure to clean house before the derivatives regulator turns into a fully hollowed-out puppet for political allies.

💡 Feature of the Day: 

MoonPay Transforms ChatGPT into a Broker [Source][Source][Source]

MoonPay is executing a brilliant distribution play by embedding cryptocurrency purchases directly into the ChatGPT interface, turning the world’s most popular chatbot into an active financial funnel.

Twitter tweet

Users conducting research on digital assets can now ask questions and immediately receive direct, context-aware checkout links to buy Bitcoin, XRP, and Solana without abandoning their conversation with OpenAI. By utilizing existing MoonPay accounts and traditional fiat rails, this tool cleverly transforms educational queries into immediate retail onboarding.

Twitter tweet

This integration is just the opening salvo in MoonPay's broader thesis that AI interfaces will inevitably become the "new front door" for global Web3 commerce. The company is actively pouring resources into trading copilots and virtual payment cards designed specifically to let AI agents spend stablecoins autonomously.

Twitter tweet

While the current tech is constrained to generating external checkout links, the long-term roadmap envisions large language models executing direct on-chain transactions on behalf of users. It's a calculated bet that the future of retail crypto isn't found on dedicated exchanges, but inside conversational AI apps.

😂 Crypto Meme of the Day: 

Meme of the day provided by @XGramatik

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Crypto Startup Closures: This week, five prominent crypto-related firms, including trading card site Fantasy.top, infrastructure provider Everclear, and gasless solution ZERO Network, announced shutdowns or strategic pivots due to a lack of commercial depth, declining trading volumes, and non-existent revenue engines.

2. Syndicate Labs Winds Down: After five years of operation and raising $20 million in venture funding, Syndicate Labs is winding down its programmable onchain infrastructure operations.

3. Map Protocol’s Butter Network Exploit: Map Protocol's Butter Network bridge was hit by an exploit after a Solidity contract flaw allowed an attacker to trick the bridge's validation logic using a low-value malicious deployment.

4. 💡Feature of the Day- Bankr AI Assistant Exploit: AI-powered crypto assistant Bankr paused all operations after an exploit resulted in the drainage of 14 user wallets, with individual losses reaching up to $150,000.

   
   All this and more in today’s headlines!

Investors see ANOTHER return from Masterworks (!!!!)

That’s 6 sales in 7 months. 29 all time. And the performance?

16.5%, 17.6%, and 17.8%, net annualized returns on sold works held longer than one year (See all 29 at Masterworks.com)

It’s not from stocks, private equity, or real estate… it’s from contemporary and post war art. Crazy, right?

With Masterworks, you don’t need to be a BILLIONAIRE to invest in multi-million dollar art anymore.

Historically, the segment overall has had attractive appreciation and low correlation to stocks.*

Masterworks targets works featuring legends like Banksy, Basquiat, and Picasso, identifying what they believe to have significant long-term appreciation potential, not just at the artist level but at the level of individual artworks.

As one of the largest players in the art market, with $1.3 billion invested over 500 artworks, they pass critical advantages through to their 70,000+ members to add art to their portfolios strategically.

Looking to diversify your investments in 2026?

Click here to skip the waitlist

^{*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.}

📰 News Highlights:

Five Closures in a Single Week [Source][Source][Source][Source]

The brutal crypto winter is systematically hunting down startups that can't find immediate commercial depth. This week alone, five prominent crypto-related firms—including trading card site Fantasy.top, infrastructure provider Everclear, and gasless solution ZERO Network—announced they are completely shutting down or pivoting.

Twitter tweet

Smaller, highly specialized blockchain projects are finding it impossible to survive as declining trading volumes and non-existent revenue engines completely dry up.

Twitter tweet

This isn't just a localized disaster for micro-caps; the rot is moving up the food chain as public crypto companies post ugly quarterly results and industry layoffs top 5,000 this year.

Twitter tweet

Disillusioned investors are completely shifting their focus away from speculative tokens and onto services that bridge traditional finance with blockchain rails. Unless you are running a high-volume niche like a prediction market, this extended price compression is proving to be a absolute death sentence for experimental tech.

Twitter tweet

Syndicate Labs Winds Down [Source]

After five years of building programmable on-chain infrastructure and raising a hefty $20 million in venture funding, Syndicate Labs is officially turning off the lights. The team explicitly blamed their demise on a terminal decline in the market for independent Ethereum rollups.

Twitter tweet

The Layer-2 landscape has warped into a top-heavy monopoly where three giants—Arbitrum, Base, and OP Mainnet—capture the absolute lion's share of total value locked and network activity.

Twitter tweet

Niche scaling infrastructure is fundamentally dead because developers and investors refuse to commit resources to unproven, customizable application-specific chains. As a result, smaller networks are turning into digital ghost towns with little to no active usage.

Twitter tweet

While Syndicate’s token governance will supposedly remain independent, this sobering exit underscores a brutal reality check for the modular blockchain movement: look big or get crushed.

Twitter tweet

MAPO Token Destruction [Source][Source][Source][Source]

Cross-chain bridges remain the absolute gold mine for exploiters, and Map Protocol just paid the ultimate price through its Butter Network bridge. A catastrophic Solidity contract vulnerability allowed an attacker to execute a cheap, low-value malicious deployment that completely tricked the bridge's validation logic.

Twitter tweet

The hacker then minted a mind-boggling quadrillion MAPO tokens, instantly inflating the supply by thousands of times and causing a 96% price collapse in a matter of hours.

Twitter tweet

The exploiter moved like lightning, flooding decentralized exchanges with the fake tokens to completely drain liquidity pools of ETH before the project could even blink. In a desperate bid for survival, leadership has paused all mainnet activity and is drafting a recovery plan centered around a token snapshot and a migration to a brand-new contract address.

Twitter tweet

Any tokens sitting in the hacker's wallet will be strictly excluded from the new distribution, but the reputational damage to cross-chain validation is already done.

Twitter tweet

💡 Feature of the Day: 

The Bankr Exploit [Source][Source][Source][Source]

The dangerous intersection of automated AI execution and digital assets just triggered a massive emergency at Bankr. The AI-powered crypto assistant was forced to pause all operations after 14 user wallets were thoroughly drained, with individual losses hitting as high as $150,000.

Twitter tweet

Preliminary forensics point to a highly sophisticated social engineering scheme that exploited the "glue code" and trust interaction between AI agents—specifically targeting the Grok and Bankr interface.

Twitter tweet

Security analysts are actively debating whether this disaster stemmed from a prompt injection method that tricked the AI into authorizing malicious transactions, or a severe leak of session tokens.

Twitter tweet

While Bankr has promised full reimbursement to the victims, they are frantically telling users to generate new seed phrases on clean hardware and revoke all remaining token approvals. It turns out that trusting an automated bot to handle your financial keys via plain-language prompts is an invitation for hackers to rob you blind.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @thunderdungeon

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Lombard Finance Migrates to Chainlink: Lombard Finance has terminated its partnership with LayerZero following security vulnerabilities exposed by the $292 million Kelp DAO breach.

2. a16z Crypto’s Outlook on the CLARITY Act: Venture capital firm a16z crypto stated that the pending passage of the U.S. Digital Asset Market Clarity Act (CLARITY Act) will trigger major domestic tech growth, comparing its potential impact to July 2025’s GENIUS Act.

3. Verus-Ethereum Bridge Exploit: The Verus-Ethereum bridge was hit by a cyberattack late Sunday night, resulting in an $11.58 million loss. Security firms PeckShield, Blockaid, and GoPlus confirmed the drainage of 103.6 tBTC, 1,625 ETH, and 147,000 USDC.

4. 💡Feature of the Day - Drake’s Album Drop and SBF Mention: On the track "Dust" (from the album Iceman), Drake references his Bitcoin investments and the former FTX luxury penthouses in the Bahamas, explicitly calling for a presidential pardon for Sam Bankman-Fried.

   
   All this and more in today’s headlines!

Investors see ANOTHER return from Masterworks (!!!!)

That’s 6 sales in 7 months. 29 all time. And the performance?

16.5%, 17.6%, and 17.8%, net annualized returns on sold works held longer than one year (See all 29 at Masterworks.com)

It’s not from stocks, private equity, or real estate… it’s from contemporary and post war art. Crazy, right?

With Masterworks, you don’t need to be a BILLIONAIRE to invest in multi-million dollar art anymore.

Historically, the segment overall has had attractive appreciation and low correlation to stocks.*

Masterworks targets works featuring legends like Banksy, Basquiat, and Picasso, identifying what they believe to have significant long-term appreciation potential, not just at the artist level but at the level of individual artworks.

As one of the largest players in the art market, with $1.3 billion invested over 500 artworks, they pass critical advantages through to their 70,000+ members to add art to their portfolios strategically.

Looking to diversify your investments in 2026?

Click here to skip the waitlist

^{*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.}

📰 News Highlights:

Lombard Finance Migrates to Chainlink [Source][Source]

Lombard Finance has completely severed ties with LayerZero, abandoning the tech following the devastating $292 million Kelp DAO breach that exposed massive vulnerabilities in alternative cross-chain systems. The Bitcoin-backed DeFi giant is migrating its massive network operations over to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to defend its unblemished record of zero security breaches.

Twitter tweet

This architectural overhaul follows a nearly identical migration by crypto exchange giant Kraken for its kBTC infrastructure just a day prior, signaling a structural industry shift toward hardened security standards.

Twitter tweet

The high-stakes migration actively safeguards more than $1 billion in Bitcoin-backed tokens across high-profile networks like Solana, Ethereum, and Berachain. The bulk of this capital belongs to Lombard’s flagship liquid staking asset, Lombard Staked BTC (LBTC), making the transition a critical defense play for broad DeFi liquidity.

Twitter tweet

As part of this systematic cleanup, Lombard is also integrating Chainlink’s Cross-Chain Token (CCT) burn-and-mint standard and permanently deprecating legacy infrastructure on peripheral networks like Morph and Swell.

Twitter tweet

By shifting to CCIP’s decentralized validation model, Lombard joins a rapidly expanding alliance abandoning LayerZero after internal configuration errors left the latter exposed to North Korean threat actors.

a16z Capitalizes on the CLARITY Act [Source][Source][Source][Source]

Venture capital giant a16z crypto is loudly sounding the bull horn, asserting that the pending passage of the U.S. Digital Asset Market Clarity Act—the CLARITY Act—will ignite unprecedented growth across domestic tech sectors. The firm argues that establishing definitive legal parameters will stop forcing revolutionary financial technologies offshore, ensuring America remains the epicenter of Web3 disruption.

Twitter tweet

Furthermore, clear guidelines are projected to cement the long-term global dominance of the U.S. dollar, embedding the greenback deeper into decentralized settlement layers while the U.S. Dollar Index (DXY) holds strong momentum at 99.27.

Twitter tweet

To prove its point, a16z crypto drew clear historical parallels to July 2025’s GENIUS Act, which brought regulatory predictability to stablecoins and sparked an immediate wave of corporate adoption. However, a tough road lies ahead on the Senate floor despite the bill recently advancing through the Senate Banking Committee with a bipartisan 15-to-9 vote. While all 13 Republicans and two breakaway Democrats, Sens.

Twitter tweet

Ruben Gallego and Angela Alsobrooks, voted yes, a recent Grayscale report warns that proponents still need to flip at least seven centrist Democrats to pass the full Senate. It’s a classic Washington math problem where innovation hangs in the balance of a few swing votes.

Verus-Ethereum Bridge Bleeds $11.6M [Source][Source][Source][Source]

The Verus-Ethereum bridge has become the latest casualty in DeFi’s ongoing security war, suffering an active cyberattack that resulted in the immediate loss of roughly $11.58 million.

Twitter tweet

Top on-chain security intelligence firms like PeckShield, Blockaid, and GoPlus caught the exploit late Sunday night as the attacker systematically drained 103.6 tBTC, 1,625 ETH, and 147,000 USDC directly from contract reserves. The hacker moved with chilling efficiency, quickly consolidating the mixed basket of stolen tokens into 5,402 clean ether tokens valued at over $11.4 million.

Twitter tweet

Forensic tracking indicates the perpetrator's operational address was initially funded via the privacy-focused mixer Tornado Cash just hours prior to the breach, successfully masking their initial footprint. The technical root cause points to either sophisticated signature forgery or a severe withdrawal logic bypass triggered when the attacker used a low-value transaction to hijack a batch-transfer function.

Twitter tweet

This is a devastating structural setback for Verus, an established 2018 privacy network that only expanded into Ethereum interoperability in late 2023. For institutional players watching from the sidelines, this exploit heavily reinforces the narrative that decentralized bridges remain the industry’s greatest existential liability.

Twitter tweet

💡 Feature of the Day: 

Drake Demands SBF Freedom [Source][Source][Source][Source]

Pop icon Drake has managed to cross high-profile corporate crime with pop music in the strangest way possible during his surprise three-album drop. The massive 43-song collection—comprising the albums Iceman, Maid of Honour, and Habibti—shocked the music industry after the rapper had been off the grid for months.

However, the internet completely ignored the music after hearing the track "Dust" on Iceman, where Drake brags about his Bitcoin investments before demanding a presidential pardon for disgraced FTX founder Sam Bankman-Fried.

Twitter tweet

The polarizing lyrical tribute explicitly references the infamous luxury penthouses in the Bahamas, culminating in the line, "Samuel Bankman, free all my guys up." While Bankman-Fried’s inner circle continues an aggressive lobbying push from behind bars, the White House and President Donald Trump have firmly rejected any pardon possibilities for the man serving 25 years for historic fraud.

Twitter tweet

Drake's bizarre defense of SBF hasn't helped him with music columnists either, who have overwhelmingly blasted the two-and-a-half-hour drop as an uninspired, bloated disaster. It seems the rapper’s legal headaches over his multi-million-dollar endorsement of offshore crypto gambling site Stake have driven him straight into the corner of the industry's most notorious villain.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @web3.career

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Armstrong Backs the CLARITY Act: Coinbase CEO Brian Armstrong has officially backed the latest version of the CLARITY Act, praising a "healthy compromise" on stablecoin yields brokered by Senators Tillis and Alsobrooks.

2. Charles Schwab Spot Crypto Trading: harles Schwab ($11.77 trillion in assets) launched "Schwab Crypto" this Tuesday, allowing select retail clients to trade spot Bitcoin and Ether.

3. Immunefi Absorbs Code4rena: Immunefi is absorbing the researcher and customer base of its pioneer rival, Code4rena, which is winding down operations despite previous backing from Paradigm.

4. 💡Feature of the Day - Kevin Warsh Confirmed as Fed Chair: The Senate confirmed Kevin Warsh as the new Federal Reserve Chair in a 54-45 vote. He will succeed Jerome Powell this Friday.

   
   All this and more in today’s headlines!

Someone just spent $236,000,000 on a painting. Here’s why it matters for your wallet.

Late last year, a Klimt sold for the highest price ever paid for modern art at auction.

An outlier sure, but it wasn't a fluke. U.S. auction sales grew 23.1% in 2025. The $1-5mm segment even grew 40.8% YoY.

Meanwhile, Apollo’s chief economist Torsten Slok said to expect ‘zero in return in the S&P 500 over the coming decade.’

So, that's where it gets interesting.

Each environment is unique, but after dot-com, post war and contemporary art grew about 24% annually for a decade. After 2008, about 11% for 12 years.

It’s also had near-zero correlation with the S&P 500 since ‘95.*

Now, Masterworks lets you invest in shares of artworks featuring legends like Banksy, Basquiat, and Picasso.

• $1.3 billion invested across over 500 artworks.

• 28 sales to date. 

• Net annualized returns on sold works held 12 months+ like 14.6%, 17.6%, and 17.8%.

Shares can sell quickly, but my subscribers can skip the waitlist:

Skip the waitlist

^{*Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.}

📰 News Highlights:

Armstrong Backs the CLARITY Act [Source][Source][Source][Source]

The long-standing regulatory stalemate in Washington is finally showing signs of life as Coinbase CEO Brian Armstrong officially throws his weight behind the latest version of the CLARITY Act. Ahead of a high-stakes Senate Banking Committee vote this Thursday, Armstrong praised the "healthy compromise" brokered by Senators Tillis and Alsobrooks regarding stablecoin yields.

Twitter tweet

This bipartisan push suggests that the era of "regulation by enforcement" might finally be ending in favor of actual, codified laws that provide the industry with a clear path forward.

Twitter tweet

This political shift is being driven by a growing mandate, with recent HarrisX data showing that 20% of the U.S. population now holds digital assets. These aren't just speculative traders either; 52% of these 54,000 surveyed holders view crypto as a long-term investment for their financial future.

Twitter tweet

For policymakers, the message is unavoidable: digital assets have moved from a fringe hobby to a mainstream financial priority for millions of registered voters. Washington is finally realizing that ignored voters are angry voters, and the CLARITY Act is their best shot at peace.

Twitter tweet

Charles Schwab Launches Spot Crypto [Source][Source][Source]

The institutional floodgates have officially opened as Charles Schwab, the $11.77 trillion asset giant, launched its "Schwab Crypto" platform this Tuesday. Select retail clients can now trade Bitcoin and Ether directly, a massive leap from the indirect exposure previously offered through ETFs.

Twitter tweet

With 39.1 million active accounts, Schwab is positioned to be a heavyweight competitor against crypto-native exchanges by bringing a "trusted" household name to the spot market. It’s a bold move that signals the brokerage's refusal to let fintech rivals like Robinhood eat their lunch.

Twitter tweet

The underlying infrastructure is equally robust, utilizing Paxos for trade execution while keeping custody under the firm's own Schwab Premier Bank umbrella. Investors will face a transparent 75-basis-point fee per trade, though those in New York and Louisiana remain sidelined due to local regulatory hurdles.

Twitter tweet

Given Schwab's 16% year-on-year revenue growth to $6.48 billion, this launch confirms that traditional finance is no longer content watching from the sidelines. They aren't just joining the party; they're trying to own the venue.

Immunefi Absorbs Code4rena [Source][Source][Source]

The Web3 security landscape is consolidating as Immunefi prepares to onboard the customers and researchers of its pioneer rival, Code4rena. Code4rena, which famously turned smart contract auditing into a competitive sport with its "warden" model, is officially winding down operations despite previous backing from Paradigm.

Twitter tweet

This merger effectively marks the end of an era for the competitive audit format that once defined DeFi’s defensive strategy. In this brutal market, even the most innovative security models are finding it impossible to survive as standalone entities.

Twitter tweet

The timing of this consolidation is critical, coming right as DeFi reaches a dangerous breaking point with 20 major exploits recorded in April alone. The sector's total value locked has been nearly halved to $83 billion, an exodus of capital that JPMorgan analysts attribute to these persistent security risks.

Twitter tweet

By merging their expertise, Immunefi and the remaining Code4rena team hope to build a unified front against the increasingly sophisticated attacks draining market liquidity. It’s a necessary move, as the "warden" era gives way to a more centralized, heavyweight security approach.

💡 Feature of the Day: 

Kevin Warsh Confirmed as FED Chair [Source][Source][Source][Source]

The Federal Reserve is entering a potentially pro-innovation era following the Senate's 54-45 confirmation of Kevin Warsh as the new Chair. Succeeding Jerome Powell this Friday, Warsh returns to the central bank where he previously served as a governor during the 2008 financial crisis.

Twitter tweet

While the vote was tight, Senator John Fetterman notably crossed party lines to support Warsh, signaling a rare moment of bipartisan agreement on a major leadership shift. This isn't just a change in management; it’s a fundamental shift in how the Fed views the modern financial stack.

Twitter tweet

For the crypto industry, Warsh’s confirmation is a massive win, given his previous descriptions of Bitcoin as a "transformative" asset for policymakers. His leadership arrives exactly as the Senate Banking Committee advances the CLARITY Act, placing him at the center of the debate over stablecoins and programmable money.

Twitter tweet

As he takes the reins, the market will be watching closely to see how his appreciation for digital assets influences the Fed's stance on CBDCs. If Warsh stays true to his past comments, the days of the Fed being a crypto-skeptic fortress are officially over.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @breet

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Coinbase Financial Disparity & Layoffs: Coinbase reported a $394 million net loss for Q1 2026, with transaction revenue dropping 40% year-over-year and its stock price falling 57% from its 2025 peak.

2. Strategy’s Bitcoin Dividend Model: CEO Phong Le clarified that Strategy will only sell from its 818,334 BTC holdings to fund tax liabilities or specific dividends, specifically for the Series A Perpetual Stretch Preferred Stock (STRC).

3. Payward’s Federal Charter: Payward (Kraken) has applied for an OCC national trust company charter to offer bank-grade custody to institutional clients.

4. 💡Feature of the Day - Warren’s Scrutiny of Meta: Senator Elizabeth Warren sent a formal letter to Mark Zuckerberg demanding transparency regarding Meta’s stablecoin integration plans prior to the Clarity Act vote.

   
   All this and more in today’s headlines!

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No yelling. No filler. Just the news, finally making sense.

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📰 News Highlights:

Armstrong’s $540M Exit vs. Coinbase’s $394M Bleed [Source][Source][Source]

The optics at Coinbase are getting increasingly grim for anyone not named Brian Armstrong. While the exchange reported a staggering $394 million net loss for Q1 2026, Armstrong personally netted over $540 million by liquidating 1.55 million shares between May 2025 and early 2026.

Twitter tweet

His average exit price of roughly $349.58 is nearly double what retail investors can get today, showcasing a mastery of timing that the "HODL" crowd can only envy.

Twitter tweet

This financial disconnect is having a visceral impact on the ground, as the company fired 14% of its workforce—roughly 700 employees—just as the Consensus conference in Miami kicked off. The stock has plummeted 57% from its 2025 peak, and net transaction revenue has cratered 40% year-over-year, signaling a deep stall in the business's core engine.

Twitter tweet

As the exchange bleeds and the staff is axed, the sight of a CEO cashing out half a billion dollars remains a stinging reminder of the divide between corporate leadership and its stakeholders.

Strategy’s Math Over Ideology [Source][Source][Source][Source]

Strategy CEO Phong Le is finally injecting some much-needed business logic into the world’s largest corporate Bitcoin treasury. By clarifying that the firm will only sell its 818,334 BTC to pay specific dividends or tax liabilities, Le is prioritizing a "Bitcoin per share" metric over dogmatic ideology.

Twitter tweet

The primary driver for these potential sales is the Series A Perpetual Stretch Preferred Stock (STRC), which requires an 11.5% dividend payment to holders.

Twitter tweet

For those panicking about a market crash, the math suggests the $1 billion needed annually for these dividends is a drop in the ocean compared to the $60 billion in daily global volume.

Twitter tweet

Michael Saylor recently noted that if Bitcoin grows by a mere 2.3% per year, the company could fund these payouts indefinitely without ever needing to dilute shareholders with new MSTR stock issues. This "self-funding" treasury model is a massive strategic shift that could easily become the standard for every major corporation holding digital reserves.

Twitter tweet

Payward’s Federal Power Play [Source][Source][Source]

Payward, the company behind Kraken, is moving to become a pillar of federal finance by applying for an OCC national trust company charter. This move aims to provide bank-grade custody for institutional clients, shifting Kraken from a retail exchange to a federally regulated partner.

Payward files application for OCC National Trust Company

By securing this "gold standard" charter, Payward is preparing to meet the strict requirements of major financial entities that have previously been wary of the digital asset space.

This push for federal oversight follows an aggressive $1.15 billion acquisition spree involving stablecoin firm Reap Technologies and derivatives exchange Bitnomial. These deals, combined with a confidential S-1 filing with the SEC and a valuation nearing $20 billion, suggest the exchange is in the final stages of preparing for a 2026 IPO.

By securing a full suite of CFTC licenses and a Federal Reserve master account, Kraken is positioning itself as one of the most compliant financial service providers in the United States.

💡 Feature of the Day: 

Warren vs. Meta [Source][Source][Source]

Senator Elizabeth Warren is back on the warpath, and this time she’s demanding a full post-mortem of Meta’s stablecoin ambitions before the Clarity Act vote. In a sharp letter to Mark Zuckerberg, Warren raised alarms about the company's 3.5 billion users, fearing that any move into private currency could give the social media giant a dangerous and unfair advantage in the national payment system.

Twitter tweet

She clearly hasn't forgotten the "Libra" drama and isn't about to let Meta sleep-walk into a global financial monopoly without a fight.

Twitter tweet

Meta has already begun experimenting with USDC payouts for creators, a move Warren views as a potential back-door attempt to bypass federal oversight. She has set a firm May 20 deadline for Zuckerberg to explain the company’s third-party deals and how it intends to protect user privacy in this new digital economy.

Twitter tweet

While the GENIUS Act has reopened the door for on-chain finance, the Senator's push for transparency suggests that Meta’s "walled garden" is about to face its most rigorous financial audit to date.

😂 Crypto Meme of the Day: 

Meme of the day provided by @cryptomemebot

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Aave’s Liquidation of Kelp Attacker: Aave Labs successfully liquidated the Kelp DAO attacker’s rsETH positions on Ethereum and Arbitrum, reclaiming approximately 13,000 ETH (over $30 million).

2. Coinbase’s AI-Driven Restructuring: CEO Brian Armstrong announced a 14% cut (700 jobs) to the global workforce to pivot toward an "AI-native" corporate structure.

3. Kraken & MoneyGram Remittance Partnership: Kraken has partnered with MoneyGram to enable crypto-to-cash payouts at 500,000 locations across more than 100 countries.

4. 💡Feature of the Day - Polygon’s Private Stablecoin Payments: Polygon launched private stablecoin payments by integrating the Hinkal protocol and its zero-knowledge (ZK) proof technology.

   
   All this and more in today’s headlines!

Investors see ANOTHER return from Masterworks (!!!!)

That’s 6 sales in 7 months. 29 all time. And the performance?

16.5%, 17.6%, and 17.8%, net annualized returns on sold works held longer than one year (See all 29 at Masterworks.com)

It’s not from stocks, private equity, or real estate… it’s from contemporary and post war art. Crazy, right?

With Masterworks, you don’t need to be a BILLIONAIRE to invest in multi-million dollar art anymore.

Historically, the segment overall has had attractive appreciation and low correlation to stocks.*

Masterworks targets works featuring legends like Banksy, Basquiat, and Picasso, identifying what they believe to have significant long-term appreciation potential, not just at the artist level but at the level of individual artworks.

As one of the largest players in the art market, with $1.3 billion invested over 500 artworks, they pass critical advantages through to their 70,000+ members to add art to their portfolios strategically.

Looking to diversify your investments in 2026?

Click here to skip the waitlist

^{*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.}

📰 News Highlights:

Aave Liquidates Kelp DAO Attacker [Source][Source][Source][Source]

Aave Labs just proved why they are the undisputed kings of DeFi risk management by successfully liquidating the Kelp DAO attacker’s rsETH positions across Ethereum and Arbitrum. This aggressive move reclaimed roughly 13,000 ETH, worth over $30 million, and significantly narrowed the $190 million bad debt hole left by the $293 million exploit.

Twitter tweet

Remarkably, the protocol bypassed its "Umbrella" insurance fund entirely, relying on its internal health to funnel recovered assets into the DeFi United coalition’s Recovery Guardian.

Twitter tweet

However, a full 100% recovery is currently being held hostage by a messy legal standoff within the Arbitrum ecosystem. A restraining notice from law firm Gerstein Harrow LLP has locked up 30,765 ETH that the Arbitrum DAO is itching to release to the victims.

Twitter tweet

This "legal limbo" is a massive headache for the Recovery Guardian, which remains about 10% short of the capital needed to fully back the rsETH token. The industry is now watching Arbitrum’s emergency motion to see if decentralized governance can actually overcome a traditional courtroom blockade.

Twitter tweet

Coinbase’s AI-Fueled "Lean and Mean" Pivot [Source][Source][Source][Source]

Coinbase CEO Brian Armstrong just took a hatchet to the corporate org chart, slashing 700 jobs—about 14% of the global workforce—in a bid for radical efficiency. This isn't just a cost-cutting measure; it's a structural bet on AI-native squads and a "player-coach" culture where even managers are expected to code.

Twitter tweet

By capping the management hierarchy at just five layers, Armstrong is trying to recapture the "scrappy startup energy" needed to survive the 2026 market.

Twitter tweet

The financial hit for this restructuring is steep, with Coinbase earmarking up to $60 million for severance packages that include 16 weeks of base pay. While the human cost is real, the company claims the pivot is already accelerating development cycles from weeks to days thanks to AI-driven automation.

Twitter tweet

As Coinbase wraps up this transition by the end of Q2 2026, it joins the likes of Gemini and Crypto.com in the race to replace middle management with software. It’s a brutal, necessary evolution for any exchange hoping to remain competitive in an increasingly automated landscape.

Twitter tweet

Kraken and MoneyGram’s War on Remittance Fees [Source][Source][Source]

Kraken has just dropped a massive utility bomb on the legacy banking system by partnering with MoneyGram to enable crypto-to-cash payouts at 500,000 global locations. This network spans over 100 countries, allowing users to exit the digital ecosystem and hold local fiat in their hands in under ten minutes.

Twitter tweet

By targeting the $174 billion remittance market, Kraken is finally moving stablecoins out of the "speculation" bucket and directly into the pockets of the unbanked.

Twitter tweet

The timing is perfect, following the US GENIUS Act which paved the way for institutional stablecoin adoption without the constant fear of regulatory overreach. We’re already seeing competitors like Western Union launch USDPT tokens on Solana to fix the notoriously slow payment rails in the Philippines.

Twitter tweet

Kraken’s move to bridge 100+ countries—starting with the US, Europe, and Latin America—proves that the future of global money is a hybrid of blockchain speed and physical cash points. This is the beginning of the end for the expensive, slow-moving banks that have dominated cross-border transfers for decades.

💡 Feature of the Day: 

Polygon’s Zero-Knowledge "Shield" for Big Banks [Source][Source]

Polygon has finally solved the "glass house" problem that has kept institutional treasuries away from public blockchains by launching private stablecoin payments. By integrating the Hinkal protocol and its zero-knowledge proof technology, Polygon now allows banks to use "shielded pools" to hide transaction amounts and identities.

Twitter tweet

This is a massive play for the $3.6 billion in stablecoins already sitting on the network, offering a confidential alternative to the aging SWIFT system.

Twitter tweet

What makes this feature a winner is the "Know Your Transaction" layer that keeps things strictly compliant with the US GENIUS Act. Regulators still get the auditing tools they need to block illicit funds, but corporate rivals can no longer snoop on a company's internal payroll or strategic flows.

Twitter tweet

Following the recent launch of Confidential APT on the Aptos network, Polygon’s move confirms that enterprise-grade privacy is the new standard. If on-chain payments are going to win the mainstream, they have to protect corporate secrets while maintaining a line of sight for the taxman.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @cryptomemebot

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. NY AG Settlement with Uphold: New York Attorney General Letitia James secured a $5 million settlement from Uphold regarding its "CredEarn" yield product.

2. Carrot Protocol Shutdown: The Solana-based yield protocol Carrot is permanently closing after its Total Value Locked (TVL) plummeted from $28 million to under $2 million (a 93% drop).

3. 💡Feature of the Day - Kraken Acquires Bitnomial: Kraken’s parent company, Payward, finalized a $550 million deal to acquire Bitnomial.

   
   All this and more in today’s headlines!

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📰 News Highlights:

NY AG Squeezes $5M from Uphold [Source][Source][Source][Source]

The era of unchecked "yield" marketing is facing a brutal reckoning at the hands of New York Attorney General Letitia James. Uphold has agreed to a $5 million settlement to compensate users lured into the "CredEarn" product, which was deceptively marketed as a safe, insured alternative to traditional banking.

Twitter tweet

This penalty represents a recovery five times higher than the fees Uphold actually collected, sending a clear message that 2026 regulators will no longer tolerate platforms hiding behind the failures of their third-party partners.

Twitter tweet

The investigation’s most damning reveal was that these "conservative" returns were actually generated by funneling capital into high-risk microloans for video game players in China. Despite Uphold's claims of comprehensive insurance, the reality was a high-stakes gamble involving a demographic with virtually no credit history.

Twitter tweet

To make matters worse, Uphold was caught operating in New York without essential broker-dealer licenses. Affected users can expect restitution shortly, but the reputational stain on Uphold’s due diligence process will likely linger much longer.

DeFi Protocol Carrot Collapses [Source]

In a somber milestone for the Solana ecosystem, the yield protocol Carrot has announced a permanent shutdown after its Total Value Locked (TVL) withered by 93%.

Twitter tweet

The protocol found itself directly in the blast radius of the $285 million Drift Protocol hack, seeing its assets drop from $28 million to less than $2 million in just weeks. This collapse serves as a grim masterclass in the "money lego" risks of DeFi, where a single broken dependency can trigger a total system failure.

Twitter tweet

Users have been given a hard deadline of May 14, 2026, to rescue their capital before Carrot begins forced deleveraging to zero. The underlying Drift exploit, a months-long social engineering operation by sophisticated hackers, essentially evaporated the liquidity Carrot needed to stay solvent.

Twitter tweet

With April 2026 already logging over $630 million in industry-wide losses, Carrot’s exit is a painful reminder that even the most innovative yield strategies are defenseless if the foundation is compromised.

💡 Feature of the Day: 

Kraken Seizes the Derivatives Crown [Source][Source][Source]

Kraken’s parent company, Payward, just pulled off a $550 million masterstroke by finalizing its acquisition of Bitnomial and securing the "holy trinity" of CFTC licenses. This deal grants Kraken the rare status of being an exchange, a brokerage, and a clearinghouse all under one roof.

Twitter tweet

For the first time, U.S. clients will have access to a fully regulated suite of spot margin, perpetuals, and options on a platform built from the ground up for crypto rather than old bank tech.

Twitter tweet

Under the guidance of co-CEO Arjun Sethi, this move is a calculated sprint toward a massive 2026 IPO, potentially valuing the company at over $20 billion. By absorbing Bitnomial’s Chicago-based infrastructure, Payward is positioning itself as the compliant, institutional-grade alternative to risky offshore platforms.

Twitter tweet

With backing from heavyweights like Deutsche Borse Group, Kraken is effectively turning into the regulated bedrock that traditional banks will use to access the digital asset derivatives market.

😂 Crypto Meme of the Day: 

Meme of the day provided by @everything_crypto

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Dan Finlay Exits MetaMask: Co-founder Dan Finlay is leaving Consensys after 10 years to focus on family and mental health. His departure follows the successful launch of the "advanced permissions" feature.

2. US Treasury Sanctions Iran-Linked Crypto: The US Treasury’s OFAC froze $344 million in USDT across two Tron blockchain addresses linked to the IRGC and Hizballah.

3. CFTC vs. New York: The CFTC has sued New York, with Chair Michael Selig arguing that prediction market event contracts are "swaps" and should fall under federal authority rather than state gambling laws.

4. 💡Feature of the Day- Brazil Bans Major Prediction Markets: Brazil’s Ministry of Finance and Anatel have blocked 27 platforms, including Polymarket and Kalshi, labeling unregulated wagering as "anarchy."

   
   All this and more in today’s headlines!

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📰 News Highlights:

Metamask’s End of an Era [Source][Source][Source]

After a decade at the helm of MetaMask, co-founder Dan Finlay is officially leaving Consensys to prioritize his family and mental health. Finlay, a cornerstone of the Ethereum ecosystem, helped evolve a simple browser extension into the primary gateway for DeFi and NFTs before hitting a wall with professional burnout.

Twitter tweet

His exit comes on a high note, following the successful shipment of the "advanced permissions" feature, which allows him to finally experience the platform as a standard user.

Twitter tweet

Finlay’s departure is the latest signal in the "Great Rebalancing" of 2026, where the crypto old guard is being replaced by compliance-focused institutional leadership. As MetaMask transitions toward account abstraction and "smart accounts," the industry is shifting from its experimental "pioneer" roots toward mainstream infrastructure.

Twitter tweet

While the exit marks a significant loss, industry peers like Uniswap’s Hayden Adams have already hailed Finlay’s work as the very foundation of the modern decentralized finance landscape.

US Treasury Chokes Off Iran’s Crypto Lifeline [Source][Source][Source][Source]

The US Treasury’s OFAC has struck a massive blow against Tehran’s digital economy by freezing $344 million in USDT linked to the IRGC and Hizballah. Treasury Secretary Scott Bessent confirmed that two specific addresses on the Tron blockchain were targeted to dismantle financial lifelines used to bypass traditional sanctions.

Twitter tweet

This aggressive financial maneuver follows heightened regional military tensions, including joint airstrikes and a naval blockade that defined late February 2026.

Twitter tweet

The urgency of the freeze stems from reports that Iran has been extorting "crypto tolls" from merchant ships in the Strait of Hormuz, demanding Bitcoin for safe passage. While Tether’s cooperation was vital to the operation's success, the partnership underscores just how difficult it is becoming to hide state-level activity behind major stablecoins.

Twitter tweet

As the financial war between Washington and Tehran escalates, the Treasury is clearly focused on degrading any infrastructure that allows the regime to operate outside the global banking system.

Twitter tweet

The CFTC Fights New York for Control of Betting [Source][Source][Source][Source]

The jurisdictional "tug-of-war" over prediction markets has escalated into a federal lawsuit, with the CFTC suing New York to assert exclusive authority over these platforms. CFTC Chair Michael Selig argues that event contracts are technically "swaps" and should be shielded from the "onslaught" of state gambling laws that threaten to fragment the national market.

Twitter tweet

This move seeks to stop New York from treating registered exchanges like Coinbase and Gemini as illegal sportsbooks, a classification that currently threatens the industry’s survival.

Twitter tweet

However, a powerful coalition of 37 states, led by Massachusetts, is fighting back, arguing that the CFTC’s regulatory framework lacks necessary consumer protections for betting. From Kalshi being banned in Nevada to cease-and-desist orders in Illinois and Arizona, the industry is facing a regulatory nightmare of patchwork state laws.

Twitter tweet

If the courts don't side with the CFTC's "financial instrument" classification, the ability to operate a nationwide prediction market in the US may become a legal impossibility.

💡 Feature of the Day: 

Brazil Nukes Prediction Markets [Source][Source][Source][Source]

Brazil has slammed the door on the world’s leading prediction markets, with the Ministry of Finance blocking 27 platforms including industry giants Polymarket and Kalshi. The National Telecommunications Agency (Anatel) executed the ban after officials labeled the recent years of unregulated betting as "anarchy."

Twitter tweet

This aggressive crackdown effectively criminalizes social and political wagering, categorizing them as illegal gambling rather than legitimate financial forecasting.

Twitter tweet

Under the new Resolution 5.298, the government is permitting only contracts tied to specific economic metrics like inflation and interest rates, while banning sports and entertainment markets. Executive Secretary Dario Durigan cited the risk of "harmful indebtedness" among students and small businesses as the primary motivation for the move.

Twitter tweet

As Brazil joins France and the Netherlands in penalizing unauthorized platforms, the dream of a truly "global" and permissionless prediction market continues to fracture under local legal pressures.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @GainsAssociates

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Kalshi Bans Lawmakers: Prediction market Kalshi has issued five-year bans to three U.S. politicians—Matt Klein (MN), Ezekiel Enriquez, and Mark Moran—for wagering on their own elections.

2. Aave’s $15 Billion Liquidity Drain: Aave experienced a $15 billion exodus from its liquidity pools following the $293 million Kelp DAO bridge exploit. The exploit allowed "uncollateralized" rsETH to be used as collateral, leaving Aave with a potential $230 million bad debt hole.

3. Volo Protocol’s $3.5M Exploit: Volo Protocol on the Sui network was exploited for $3.5 million, with attackers draining WBTC, USDC, and Matrixdock Gold (XAUm).

4. 💡Feature of the Day - Justin Sun vs. WLFI: Tron founder Justin Sun has filed a federal lawsuit in California against the Trump-backed World Liberty Financial (WLFI). Sun, who invested up to $320 million, alleges the team blacklisted his wallets and froze his tokens.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Kalshi Bans Lawmakers [Source][Source][Source]

Prediction markets are finally finding their teeth, and Kalshi is leading the charge by banning three U.S. politicians—Matt Klein, Ezekiel Enriquez, and Mark Moran—for wagering on their own elections.

Twitter tweet

This isn’t just a slap on the wrist; we’re talking five-year bans and fines ranging from $539 to a staggering $6,229. While Minnesota’s Matt Klein claims his bet was mere "curiosity," the optics are abysmal considering he’s co-sponsoring a bill to ban the very activity he engaged in.

Twitter tweet

The real standout here is Mark Moran, who essentially dared the platform to catch him and is now paying the price for his lack of cooperation. Kalshi’s head of enforcement, Bobby DeNault, made it clear that the size of the wager is irrelevant when the integrity of the market is at stake.

Twitter tweet

By cracking down on these "insider" trades now, the industry is sending a loud signal to regulators that they can self-police before the 2026 midterms. This shift toward proactive security and "smart" anti-manipulation tools is exactly what these markets need to survive the inevitable CFTC scrutiny.

Aave’s $15 Billion Exodus [Source][Source][Source]

The "composability" dream of DeFi turned into a nightmare this week as Aave saw a jaw-dropping $15 billion drain from its liquidity pools. The catalyst was a $293 million exploit on the Kelp DAO bridge, which allowed an attacker to flood the ecosystem with uncollateralized rsETH.

Twitter tweet

Because Aave allowed this tainted paper as collateral, it was left holding a potential bad debt hole of up to $230 million. It’s a brutal reminder that when one gear in the money lego stack breaks, the whole machine starts smoking.

Twitter tweet

The market response was swift and merciless, with capital fleeing to more conservative havens like SparkLend, which saw a $1.3 billion surge in deposits. Aave’s treasury is strong, but the internal debate over whether to socialize losses or dump the debt on Layer-2 networks has left users understandably spooked.

Twitter tweet

While the Aave DAO scrambles to patch the leaks, the AAVE token has already cratered 20%, hitting the $90 support level. If we’ve learned anything, it’s that institutional-grade liquidity doesn't stick around when "uncollateralized" becomes part of the conversation.

Volo $3.5M Exploit [Source][Source][Source]

Sui’s DeFi ecosystem just got a cold splash of reality after Volo Protocol was hit for $3.5 million in a surgical strike on its vaults. Attackers managed to drain high-value assets including WBTC, USDC, and Matrixdock Gold (XAUm), proving that even isolated strategies aren't safe from a determined adversary.

Twitter tweet

Thankfully, the Volo team didn't panic; they worked with the Sui Foundation to freeze $2 million of the loot before it could cross a bridge. It’s a small win in a grim situation, but it highlights the necessity of real-time monitoring in a 24/7 market.

Twitter tweet

In a move that should be the industry standard, Volo has committed to absorbing the $1.5 million net loss themselves rather than hair-cutting their users. With $28 million in other vaults confirmed safe, the protocol seems to have dodged a total collapse, but the reputational damage is real.

Twitter tweet

Statistics show that nearly a quarter of all crypto thefts are now linked to private key compromises rather than code bugs. For a network like Sui that’s been on a growth tear, this incident is a loud reminder that operational security is just as important as your smart contract audit.

💡 Feature of the Day: 

Justin Sun vs. World Liberty [Source][Source][Source]

The honeymoon phase between Tron founder Justin Sun and the Trump-backed World Liberty Financial (WLFI) is officially over, ending in a California federal court. Sun, who is arguably the project’s biggest "anchor investor" with up to $320 million at stake, alleges the team secretly blacklisted his wallets and froze his tokens.

Twitter tweet

The dispute peaked over a controversial governance proposal that would lock tokens for five years and force a 10% burn on dissenters. Sun’s lawsuit claims this is an illegal scheme to seize property and strip him of his voting rights.

Twitter tweet

Despite the legal firework show, Sun is playing a very careful political game by blaming "certain individuals" on the team rather than President Trump himself. He’s essentially trying to save the project from its own management while protecting his massive investment and his seat at the table.

Twitter tweet

Meanwhile, WLFI’s leadership is dismissing the suit as meritless, pointing toward alleged misconduct on Sun's part. It’s a messy, high-stakes battle of egos that underscores the dangers of "decentralized" projects where a handful of wallets hold all the actual power.

😂 Crypto Meme of the Day: 

Meme of the day provided by @everything_crypto

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Kelp Protocol Exploit: On Saturday, Kelp suffered a $293 million drainage via a cross-chain exploit in its rsETH adapter bridge. Security firm Cyvers reported that over $250 million has already been laundered through Tornado Cash.

2. Circle’s USDC Bridge: Circle released a new "USDC Bridge" on Friday built on its Cross-Chain Transfer Protocol (CCTP). It uses a burn-and-mint mechanism across 17 EVM-compatible chains.

3. Tether’s Recovery Plan: Tether announced a $150 million recovery program on Thursday, providing a $127.5 million injection to restore user balances for Drift Protocol.

4. 💡Feature of the Day - Zonda's $334M Bitcoin Is Stuck: Zonda CEO Przemysław Kral confirmed that 4,500 BTC (approx. $334 million) is currently inaccessible because the private keys are held by founder Sylwester Suszek, who has been missing since 2022.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Kelp’s $293M Exploit [Source][Source][Source][Source]

Kelp’s $293 million drainage on Saturday is a masterclass in why "composability" in DeFi is a double-edged sword. Security firm Cyvers identified a cross-chain exploit in the rsETH adapter bridge that forced platforms like Aave to freeze markets immediately.

Twitter tweet

With over $250 million already laundered through Tornado Cash into Ether, this incident pushes Q1 2026 crypto losses to a staggering $482 million. It is a grim reminder that even the most hyped restaking protocols are only as strong as their weakest bridge.

Twitter tweet

Meanwhile, Drift Protocol’s $280 million exploit in April adds a layer of spy-movie drama to the industry’s security woes. The team admitted that suspected North Korean hackers spent months infiltrating their ranks after a chance meeting at a major crypto conference.

Twitter tweet

By deploying malware on developer machines, these state-affiliated actors proved that social engineering is just as lethal as code exploits. The deliberate, long-term nature of this attack suggests that decentralized exchanges are now primary targets for high-level geopolitical theft.

Twitter tweet

Circle’s New USDC Bridge [Source][Source][Source]

Circle just rolled out its "USDC Bridge" on Friday, aiming to fix the clunky, fragmented mess of cross-chain stablecoin transfers. Built on the existing Cross-Chain Transfer Protocol (CCTP), this interface uses a native burn-and-mint mechanism to eliminate the need for risky wrapped assets.

Twitter tweet

It currently supports 17 EVM-compatible chains including Monad and Polygon, with gas fees handled automatically to lower the barrier for beginners. While the tech is a step forward for interoperability, the timing feels like a desperate attempt to polish a reputation currently under fire.

Twitter tweet

The launch is overshadowed by a class action lawsuit filed on Wednesday by law firm Mira Gibb, representing over 100 members. The plaintiffs allege negligence after Circle failed to freeze $230 million in USDC stolen during the Drift Protocol hack.

Twitter tweet

Despite the CCTP facilitating hundreds of millions in daily volume, the lawsuit argues that Circle's refusal to intervene during the six-hour laundering window constitutes aiding and abetting. This legal battle highlights the growing tension between Circle’s "decentralized" aspirations and its centralized responsibilities.

Tether’s $150M Drift Rescue [Source][Source][Source]

Tether is playing the white knight, announcing a $150 million recovery program on Thursday to salvage what is left of Drift Protocol. The plan involves a $127.5 million injection from Tether, structured to restore user balances as the exchange resumes trading operations.

Twitter tweet

Crucially, Drift is ditching Circle’s USDC in favor of USDT as its primary settlement asset for the relaunch. This is a massive strategic win for Tether, effectively buying market share and loyalty during a competitor’s moment of crisis.

Twitter tweet

On the flip side, Circle is facing a PR nightmare after failing to freeze funds during the six-hour window following the Drift exploit. On-chain sleuth ZachXBT pointed out that over $232 million was moved across Circle’s own bridge without any intervention, despite clear links to North Korean actors.

Twitter tweet

This oversight caused Circle’s stock to tank 10% on April 9, though it has since clawed back a 20% gain as of yesterday's close. While the market might be forgiving, the technical criticism from cybersecurity researchers suggests a lasting dent in Circle’s armor.

💡 Feature of the Day: 

Zonda's $334M Bitcoin Is Stuck [Source][Source][Source]

Zonda Exchange is currently the poster child for "not your keys, not your coins," as CEO Przemysław Kral admits a 4,500 BTC wallet is now inaccessible. The private keys to this $334 million fortune were apparently never handed over by founder Sylwester Suszek, who has been missing since 2022.

Twitter tweet

While Kral denies any insolvency, the fact that the last recorded transaction was in November 2025 does little to calm nervous investors. It is a bizarre scenario where a missing person holds the literal keys to the exchange’s survival.

Twitter tweet

The situation escalated on April 6 when a spike of 25,000 withdrawal requests hit the platform following reports of a probe by Polish authorities. While Kral insists Zonda is solvent and blames "negative media coverage" for the crisis, the pressure from lawmaker Tomasz Mentzen suggests a complete loss of access.

Twitter tweet

The exchange has already fled to Estonia to escape regulatory heat in Poland, but a missing CEO and locked-up Bitcoin are problems no jurisdiction can easily solve. Legal action is promised, but for users, the wait for their funds continues amid this political and financial quagmire.

😂 Crypto Meme of the Day: 

Meme of the day provided by @Creative_Ad7831

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Elon's Gamble: Musk’s X is attempting to build a Web3 "everything app" by integrating live asset data and native trading terminals via "smart cashtags," aiming to replicate WeChat's dominance.

2. Apple’s App Store Flaws: The theft of $9.5 million using a fake Ledger Live app exposed a critical systemic vulnerability, proving that Apple’s security filters can be easily bypassed.

3. OKX Goes Mainstream: OKX is mitigating EU regulatory risk by launching X-Perps, structuring the derivatives product as five-year expiry futures to comply with MiFID requirements.

4. 💡Feature of the Day - Bitcoin’s New Role: Events like the US-Iran conflict demonstrate Bitcoin's growing utility as a neutral medium of exchange, bypassing disrupted traditional financial systems.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Elon's Crypto Gamble [Source][Source][Source]

Musk’s X is attempting a serious pivot—turning itself into a Western version of WeChat. Integrating live asset data directly into user feeds via "smart cashtags" is a bold move, but the potential payoff is massive.

Twitter tweet

It’s about creating a single platform for social commentary and financial action—a risky, but potentially transformative strategy. Let's be clear: if they pull this off, it will fundamentally change the crypto landscape.

Twitter tweet

This isn't just about convenience; it’s about long-term control. Building native wallets and trading terminals onto the X platform is a calculated move to establish dominance in the Web3 space.

Twitter tweet

The revenue model—subscription fees—seems sensible, but the underlying strategy of a single, integrated ecosystem is what’s truly noteworthy. It's an aggressive attempt to consolidate power and build a truly "everything app" – and it’s potentially a brilliant one.

Apple’s App Store Flaws [Source][Source][Source][Source]

The theft of $9.5 million via a fake Ledger Live app highlights a critical vulnerability in the digital asset space: security is only as strong as the weakest link. The fact that this malicious app bypassed Apple’s security filters is a shocking indictment of the entire app store ecosystem. It’s a stark reminder that even "official" apps can be exploited, and the consequences can be devastating.

Twitter tweet

This incident isn't just about the money lost—it’s about trust. It's about the inherent risks of relying on third-party apps—even those with established brands—in a rapidly evolving and increasingly complex space.

Twitter tweet

The fact that this happened multiple times, with multiple victims, underscores the systemic problems with app store vetting and security protocols. Expect increased regulatory scrutiny and a significant push for greater accountability within the entire ecosystem.

Twitter tweet

OKX Goes Mainstream [Source][Source][Source]

OKX is successfully navigating the complex regulatory landscape of the European Union by launching X-Perps – a derivatives product designed to meet MiFID requirements. This strategic shift—structuring the product as five-year expiry futures instead of perpetuals—is a clever move to avoid regulatory scrutiny and expand into a key market. The move highlights the growing importance of compliance in the crypto industry.

Twitter tweet

By offering a fully regulated, high-leverage trading environment, OKX is positioning itself as a serious competitor to traditional financial institutions. The numbers—up to 10x leverage, support for multiple assets—speak for themselves.

Twitter tweet

The success of X-Perps will be a pivotal moment for the exchange, demonstrating its ability to operate within complex regulatory frameworks and compete effectively in the global derivatives market.

Twitter tweet

💡 Feature of the Day: 

Bitcoin’s New Role [Source]

The idea that Bitcoin is transitioning into a global currency is increasingly compelling, fueled by events like the US-Iran conflict. The fact that Bitcoin is now functioning as a neutral medium of exchange in regions where traditional financial systems have been disrupted is a game-changer. If Bitcoin can capture even a fraction of the gold and currency markets, its price targets could be far higher than most analysts currently predict.

Twitter tweet

The scale of this transformation—with over 1.5 million BTC held by corporations—suggests that this is more than just a trend; it's a fundamental shift in how Bitcoin is viewed. It’s a reminder that the true value of any asset isn’t just determined by its price, but also by its utility and its ability to solve real-world problems.

The future of Bitcoin as a global currency is increasingly looking like a tangible possibility—and it's going to be fascinating to watch unfold.

😂 Crypto Meme of the Day: 

Meme of the day provided by @Moncer

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Strait of Hormuz Blockade: Trump’s Strait of Hormuz blockade is boosting Bitcoin as a “digital gold” hedge. Rising oil prices and geopolitical instability are accelerating Bitcoin’s adoption – a clear signal of systemic vulnerabilities. Expect more volatility and a potentially critical role for Bitcoin.

2. Justin Sun vs. WLFI: Justin Sun’s WLFI imploded due to flawed governance and potential insider trading, exposing dangers within DeFi. The blame game distracts from the core issue – a project’s collapse is a PR nightmare with potential ripple effects.

3. Iran’s Digital Toll: Iran’s crypto tolls are bypassing international banking restrictions, securing a lifeline and representing a dangerous escalation. Trump's "joint venture" proposal highlights desperation and the changing financial landscape – a risky game with high stakes.

4. 💡Feature of the Day - Binance Workforce Relocation: Binance’s relocation of its UAE workforce signals a strategic retreat due to regional conflict instability. This "Great Crypto Migration" highlights geographic diversification risks and accelerating asset protection efforts.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Strait of Hormuz Blockade [Source][Source][Source]

Trump’s blockade of the Strait of Hormuz triggered a chaotic chain reaction, and Bitcoin is proving to be the unexpected beneficiary. A surge in oil prices and a renewed faith in Bitcoin as a ‘digital gold’ hedge against geopolitical instability is seeing the asset climb.

Twitter tweet

This isn't just a short-term panic; it's a fundamental shift in how Bitcoin is perceived – a safe haven in times of escalating global conflict. Frankly, it’s a testament to the asset’s resilience, and a sobering reminder of the vulnerabilities in the traditional financial system.

Twitter tweet

The fact that this is happening during a conflict with Iran—specifically, a blockade driven by a perceived threat to global oil supplies—is a pivotal moment. It’s a validation of Bitcoin’s appeal as a decentralized, censorship-resistant asset, and it’s a significant acceleration of the asset's long-term adoption narrative. Let's be blunt: things are going to get messier, and Bitcoin's role in the coming weeks and months could be critical.

Justin Sun vs. WLFI [Source][Source][Source][Source]

Justin Sun's foray into DeFi has spectacularly imploded, exposing deep cracks within the World Liberty Financial (WLFI) protocol. The collapse of the protocol highlights the dangers of concentrated voting power and the potential for insider trading within the decentralized finance space.

Twitter tweet

The discovery that WLFI wallets were using their own tokens as collateral is a red flag—a reminder that even seemingly well-intentioned projects can quickly unravel under pressure.

Twitter tweet

The blame game—Sun accusing the platform of rigged votes, and WLFI defenders arguing about “anchor borrower” strategies—is a distraction from the core issue: a flawed governance structure and a lack of transparency.

Twitter tweet

The Trumps’ foray into DeFi has turned into a PR nightmare, showcasing how even family-led investments can be easily manipulated. The clock is ticking on WLFI—and the consequences of its failure could reverberate throughout the DeFi ecosystem.

Twitter tweet

Iran’s Digital Toll [Source][Source][Source]

Iran’s decision to demand Bitcoin tolls for shipping through the Strait of Hormuz is a brazen and increasingly effective move. Utilizing the borderless nature of cryptocurrency, the sanctioned state is bypassing international banking restrictions and securing a potential lifeline—a strategy that has seen a surge in crypto flows into Iran. The potential revenue is astronomical and the actions are deeply troubling.

Twitter tweet

President Trump’s unexpected suggestion of a "joint venture" highlights the desperation on both sides – Iran seeking economic relief, and the US grappling with how to respond to a completely unorthodox challenge.

Twitter tweet

The risk of escalation remains high, and the situation is a dangerous game of brinkmanship. It's a stark reminder that the financial landscape is changing rapidly, and that traditional rules don't always apply.

Twitter tweet

💡 Feature of the Day: 

Binance UAE Workforce Relocation [Source][Source][Source]

Binance’s relocation of its UAE workforce signals a critical shift in the crypto landscape—a recognition that Dubai’s stability is no longer a given. The escalating regional conflict has forced a major player to acknowledge its vulnerabilities and adapt to a new reality.

Twitter tweet

While Binance remains committed to its regulatory framework in Abu Dhabi, the move to Hong Kong, Tokyo, Kuala Lumpur, or Bangkok demonstrates a strategic retreat to safer ground.

Twitter tweet

This “Great Crypto Migration” – driven by conflict and uncertainty—is accelerating, and Binance’s move is just the beginning. The situation highlights the inherent risks of operating in politically unstable regions and underscores the increasing importance of geographic diversification for crypto businesses. It’s a race to secure assets and talent before the next shockwave hits.

Twitter tweet

😂 Crypto Meme of the Day: 

Meme of the day provided by @cryptomemebot

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com

Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Coinbase Goes Full Wall Street: Coinbase is aggressively entering the Australian financial landscape, securing an AFSL and targeting the massive $3.1 trillion retirement sector via equities, derivatives, and payments.

2. AAVE’s Chaos Continues: Chaos Labs’ abrupt shutdown of Aave V2 & V3 markets due to operational losses and resource scarcity has thrown the DeFi world into turmoil.

3. Polymarket’s Insider Threat: Three anonymous wallets leveraged a $484,575 profit by betting "Yes" on a US-Iran ceasefire, traced back to a former North Korean-linked CTO.

4. 💡Feature of the Day - Solana’s Stable Panic: Solana DEX Stabble experienced a catastrophic $1 million liquidity drain within 24 hours, linked to a former CTO’s ties to North Korea, triggering a rapid TVL nuke by new management.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Coinbase Goes Full Wall Street [Source][Source][Source]

Australia’s crypto market is about to get a serious power shift. Coinbase is diving headfirst into equities, derivatives, and payments – essentially, trying to dismantle the traditional Australian financial system. This AFSL (Australian Financial Services License) isn't a friendly nudge; it’s a declaration of war.

Twitter tweet

They’re targeting the $3.1 trillion retirement sector – think self-managed super funds – and leveraging that massive pool of capital. Frankly, it’s a bold move, but it's also strategically sound. Expect increased institutional adoption, driven by this regulatory clarity and the promise of speed—something the old guard simply can't match.

Twitter tweet

This move’s not just about launching new products; it’s about establishing Coinbase as a major player in the APAC digital economy. The fact that they're aggressively hiring senior talent from legal, compliance, and marketing indicates a fully-funded, long-term commitment. Don’t mistake this for a flash in the pan—Coinbase is building a serious operational foundation.

AAVE's Chaos Continues [Source][Source][Source]

The DeFi world is currently wrestling with the fallout of another crisis: the collapse of Aave’s risk management. Chaos Labs, the company overseeing V2 & V3 markets, pulled the plug, citing operational losses and a lack of resources.

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This follows a string of departures, fueled by a perceived centralization of power within the Aave DAO. Now, LlamaRisk is alone, and the market's fractured.

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The $50 million user error—a trader bypassing an extreme slippage warning—only adds to the narrative of instability. While technically a user mistake, it's a stark reminder of the high-stakes environment of Aave and the vulnerabilities within the protocol.

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The pivot to a more centralized contributor model, combined with the existing instability, is creating serious doubt and eroding confidence in the future of V4.

Polymarket’s Insider Threat [Source]

Three anonymous wallets made a cool $484,575 by betting "Yes" on a US-Iran ceasefire, just hours before the announcement. This isn't some random lucky break. Blockchain analysts traced the wallets back to a former CTO linked to North Korea. The incident underscores the risks associated with prediction markets—particularly when powerful individuals have access to privileged information.

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Lawmakers are pushing for tighter controls, but enforcement is proving difficult. The decentralized nature of these markets, coupled with the skills of sophisticated actors, creates a significant challenge. This highlights the need for more robust integrity frameworks—and a serious dose of skepticism. Let's be clear: the “wisdom of the crowd” can be spectacularly, and potentially dangerously, wrong.

💡 Feature of the Day: 

Solana’s Stabble Panic [Source][Source]

Solana DEX “Stabble” promptly urged all users to withdraw liquidity after linking its former CTO to North Korea. $1 million in liquidity vanished in less than a day, a stark reminder of the fragility of trust in DeFi. This isn’t simply a bug; it’s a crisis of confidence.

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The rapid response by Stabble’s new management – nuking their TVL – demonstrates a commitment to safety and transparency. This incident serves as a chilling reminder for Solana – North Korean hackers aren’t just breaking in anymore; they’re getting hired. Time for some serious security overhauls.

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😂 Crypto Meme of the Day: 

Meme of the day provided by @bitget

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com