New York Attorney General Letitia James told the Senate Permanent Subcommittee on Investigations on Monday that the proposed Digital Asset Market Clarity Act could limit state enforcement of cryptocurrency scams. She said the bill would transfer regulatory authority from state regulators to the Commodity Futures Trading Commission, which she argued could weaken state and local investigations. James noted that complaints about crypto scams in her office have tripled in the past three years. She said reported losses from those scams totaled nearly $500 million over five years. James urged Congress to require crypto platforms to follow anti‑money laundering, know‑your‑customer, and cybersecurity standards, and to conduct surveillance for suspicious activity and market manipulation. She called for legislation that would make platforms financially liable when they fail to protect customers from fraud. James also recommended banning the conversion of mixer‑linked or untraceable crypto into U.S. dollars and preserving existing state money‑transmission, commodities, and securities laws. She proposed prohibiting elected officials and recent government officials from regulating crypto when they have financial interests in the industry. The proposal remains under discussion, and its impact on state enforcement and consumer protection is uncertain.
Bitcoin, Ethereum, regulation, and the forces moving digital assets.
Fanatics announced on Monday that it has agreed to acquire Water Street Labs and CX Clearinghouse from BGC Group, gaining ownership of a federally regulated exchange and clearinghouse. The transaction, which includes the ability to list and clear prediction market contracts, was reported without disclosed financial terms. The purchase positions Fanatics to create and settle its own prediction market products, giving the company greater control over product offerings and launch speed. Fanatics and BGC said they will also develop market data products that combine prediction market activity with traditional financial market data. Prediction markets have expanded rapidly in recent years, driven by regulated platforms such as Kalshi and Polymarket and by crypto companies including Coinbase and Robinhood that have integrated event contracts. Fanatics' Markets platform, launched in late 2024, operates in 23 U.S. states and four territories. Sports betting operator DraftKings announced a similar prediction market plan late last year. The acquisition reflects growing interest in prediction markets as a complement to sports betting and broader financial services.
South Korea’s Korea Exchange halted KOSPI trading for 20 minutes on July 28 after the benchmark index fell more than 8%, marking its eighth circuit‑breaker activation of 2026. The exchange said the Level 1 circuit breaker was triggered because the decline remained above 8% for one minute. Trading resumed through a 10‑minute single‑price call auction.
The circuit‑breaker mechanism suspends most trading and order‑taking in the main KOSPI market, while sidecar curbs earlier in the session had temporarily paused program orders. The July 28 halt followed previous activations on March 4, March 9, June 8, June 23, June 26, July 7 and July 13, according to Korean market reports.
The index dropped 8.02% to 6,213.51 at 10:13 a.m. local time, later reported 8.59% lower at 6,175.71 at 11:20 a.m., and about 9.4% lower by 12:41 p.m., according to Reuters. Intraday lows approached $139.10 for SK Hynix’s U.S.-listed American depositary receipts, which closed at $143.02, down 7.5% from the prior session and below the $149 offering price for the first time since the ADR began regular trading.
SK Hynix shares in Seoul fell as much as 14%, while Samsung Electronics fell as much as 13.4%, Reuters reported. The two chipmakers together account for nearly half of the KOSPI weight, so their declines placed substantial pressure on the benchmark. Market participants have attributed the selloff to concerns about the scale and financing of AI infrastructure spending, as well as uncertainty surrounding the debut of Chinese memory producer ChangXin Memory Technologies and progress in domestic deep‑ultraviolet lithography equipment, details of which have not been disclosed.
SK Hynix is scheduled to release its second‑quarter earnings on July 29, which will provide updated figures for high‑bandwidth memory sales, margins, capital spending and demand from major AI customers. The company reported first‑quarter revenue of 52.58 trillion won and operating profit of 37.61 trillion won in April, attributing the results to strong AI memory demand. July 29 also marks the scheduled listing date for additional shares underlying the U.S. ADR offering, a development that may affect short‑term supply and index positioning.
South Korea’s Financial Services Commission is accelerating restrictions on single‑stock leveraged exchange‑traded products, requiring retail investors to hold at least 30 million won in cash for new or additional purchases starting July 31. The regulator has already suspended new listings and advertising for such products and plans further measures on premium controls and watchlist rules in August.
Investors will watch whether the KOSPI recovers after the halt and whether SK Hynix’s ADR can reclaim its $149 offering price, with the upcoming earnings release and regulatory changes providing key short‑term catalysts.
SEC Commissioner Hester Peirce warned that crypto yield vaults may be subject to securities‑law review if individuals control how assets are allocated and risk is managed. She made the remarks on July 22, saying the legal outcome depends on each vault’s structure and activities. Morpho Vault V2 is a decentralized lending protocol that packages curated lending strategies into on‑chain vaults accessible via smart contracts. In Vault V2, curators choose which protocols, markets and assets the vault may use, set risk limits, select allocators and determine fee recipients. Allocators execute routine asset transfers and can adjust parameters such as maxRate, but they do not set borrower interest rates or loan‑to‑value ratios. The protocol documentation notes that curators retain the ability to modify portfolio settings, that risk‑related functions may be disabled through timelocks, and that certain powers can be permanently relinquished. Peirce described vaults as existing on a spectrum from fully immutable code to those with active human oversight, and she said that involvement in managing vaults could raise investment‑adviser issues. The statement was not a rule or enforcement action but a clarification of how securities law might apply. A January 17 partnership between Coinbase and Morpho plans to offer Bitcoin‑backed loans up to $100,000 through the Morpho multichain money market on the Base network. The SEC’s analysis leaves open whether Morpho’s model will trigger regulatory scrutiny, a question that could influence the design of future DeFi yield products.
Securitize announced that its subsidiary Securitize Capital LLC has obtained registration as a registered investment adviser from the U.S. Securities and Exchange Commission, enabling it to work more closely with asset managers and institutional investors on tokenized investment strategies. The registration is part of a broader set of regulated services that Securitize offers through its U.S. platform, which includes an SEC-registered investment adviser, an SEC-registered broker-dealer operating an alternative trading system, an SEC-registered transfer agent, and fund administration services. Domingo said the registration represents a step in the firm’s expansion to support institutional demand for compliant tokenization solutions, noting that asset managers and institutional investors seek partners that understand both the opportunities and regulatory obligations of tokenized assets. The addition of the adviser licence strengthens Securitize’s ability to help institutions develop and manage onchain investment strategies. Other firms, including Coinbase and Kraken, have also introduced SEC-registered investment advice platforms powered by artificial intelligence, while Galaxy Digital has operated its capital management unit for some time. In December 2025, Anchorage Digital acquired Securitize For Advisors, a wealth‑management platform that Securitize had built for registered investment advisers. Securitize went public in July after completing a SPAC merger with Cantor Equity Partners II. The development reflects increasing regulatory alignment for tokenization firms as they seek broader institutional participation in onchain financial systems.
U.S. District Judge Analisa Torres denied KalshiEX’s request for an emergency injunction on July 27, leaving the company’s challenge to New York’s enforcement of gambling laws pending its appeal. Kalshi filed the emergency request after a July 7 ruling by the same judge denied its preliminary‑injunction motion. The earlier decision found that the Commodity Exchange Act does not automatically preempt New York gambling statutes as applied to Kalshi’s sports‑event contracts. In the July 27 order, Torres concluded that Kalshi had not demonstrated a likelihood of success on appeal, irreparable harm, favorable equities, or public‑interest support required for emergency relief. She noted that the expected compliance costs were monetary and therefore did not constitute irreparable injury. The judge also rejected Kalshi’s argument that the Commodity Exchange Act preempts state gambling law, stating that courts must independently interpret the statute under the Supreme Court’s Loper Bright decision. The order does not dismiss Kalshi’s appeal or resolve the underlying lawsuit; it merely denies protection from New York enforcement while the appellate dispute continues. New York regulators asked the Second Circuit on July 27 to deny Kalshi’s emergency motion. The Second Circuit has not yet issued a decision on that request. Earlier, a Minnesota federal judge temporarily blocked the state’s prediction‑market ban on July 27, finding that several Kalshi contracts likely qualified as swaps under federal law. In April, the Third Circuit ruled that New Jersey could not regulate Kalshi’s contracts because they fell within the CFTC’s exclusive jurisdiction, while courts in New York and other states have taken a narrower view of federal preemption. Kalshi also faces a Washington state injunction that blocks its sports contracts under state gambling law. The CFTC continues to sue multiple states, arguing for a single national derivatives framework. The Second Circuit will now decide whether to grant temporary relief, after which it will consider the merits of the appeal regarding preemption. The CFTC may revise or finalize its prediction‑market proposal after the public‑comment period, which closed on July 27, but no deadline for a final rule has been set.
The National Football League sent a letter dated July 27 to Commodity Futures Trading Commission Chair Michael Selig, urging the agency to tighten its proposed rules governing sports prediction markets, saying the current framework does not sufficiently protect game integrity and traders.
In March, the NFL sent a letter to Kalshi and Polymarket, urging them to limit certain contract offerings. The NFL said that some markets are vulnerable to manipulation by a single individual, can rely on discretionary officiating, or involve outcomes that are knowable in advance. It recommended refining the definition of contracts tied to events that are indistinguishable from gaming activity. The league criticized a 10‑day pre‑approval process for event contracts, arguing the window is too short and could allow already‑listed contracts to trade without review. The NFL said markets such as “Offensive Player of the Year,” which the CFTC intends to permit, raise concerns because they involve a voting panel.
Regarding insider trading, the league called for explicit rules prohibiting the use of material non‑public information and suggested implementing mandatory league‑specific prohibited bettor lists instead of relying on platforms to self‑police. The NFL reiterated earlier recommendations for a margin trading ban, advertising restrictions, and an age limit of 21 for participants.
The CFTC has not yet responded to the NFL's recommendations, and it remains unclear how the agency will incorporate the league's suggestions into the final rule.
Cross River will provide the banking infrastructure for X Money, a peer‑to‑peer payment service that is being integrated into X, offering FDIC‑insured interest‑bearing accounts and Visa debit cards.
X Money is part of X’s broader push to become an “everything app,” a strategy that includes expanding financial services beyond social media. The service began limited beta testing in May 2025, with Elon Musk noting that the initial rollout would be cautious to protect users’ savings. A limited external beta launched in March 2026, ahead of a planned wider rollout.
Cross River, which offers embedded financial services such as payments, cards, lending and cryptocurrency solutions to fintech and technology firms through a regulated platform, said its payment rails and banking platform will power X Money’s transactions. The company’s platform supports additional financial products over time. The announcement did not indicate support for cryptocurrencies or stablecoins.
X has obtained money transmitter licenses in more than 40 U.S. states and registered with the Financial Crimes Enforcement Network to enable peer‑to‑peer payments, according to public filings.
While the partnership expands X Money’s financial capabilities, the timeline for a full public launch and the extent of future product offerings remain unspecified.
Hong Kong Monetary Authority launched a framework to evaluate banks’ readiness for quantum‑computing threats as it expands tokenized deposits, digital assets and blockchain settlement. The regulator released a white paper and the first Quantum Preparedness Index, which gave the sector a score of 2.3 out of 10 and found that about half of surveyed institutions had no formal post‑quantum planning. The initiative follows Hong Kong’s broader push to use distributed ledger technology for government bonds, deposits and settlement under Project Ensemble. Government data show tokenized green bonds have totaled HK$16.8 billion since 2023, and digital‑asset holdings under custody rose to more than HK$14 billion by the end of 2025. The white paper notes that cryptography underpins distributed‑ledger applications and payment networks, making them vulnerable if quantum computers capable of running Shor’s algorithm become available. It urges banks to conduct inventories, risk assessments and migration plans before such machines are deployed. One institution completed a proof‑of‑concept using post‑quantum cryptography for distributed‑ledger connectivity, and HSBC employed quantum‑safe technology to move tokenized gold on a distributed ledger in 2024. The regulator aims for a QPI score of 10 by 2030 and plans to accelerate real‑world asset tokenization, standardize tokenized government bond issuance and explore tokenized Exchange Fund papers, supported by e‑HKD, tokenized deposits and regulated stablecoins.
Perpetual futures, a type of derivative that does not expire, have seen heightened interest as they move onto U.S. regulated markets. Kalshi’s perpetual futures reached $1 billion in trading volume within a week of their June launch, the firm’s largest product debut since its prediction markets. The exchange has applied for regulatory permission to offer perpetual contracts tied to gold and silver, indicating a potential expansion beyond digital assets. Bank of America estimates annual perpetual futures trading volume at roughly $90 trillion. The Commodity Futures Trading Commission cleared Kalshi to offer the contracts on May 29, and Coinbase received approval to list regulated perpetual futures in the United States.
Wall Street firms are examining the products cautiously. While individual traders and smaller market participants have been early adopters, major banks are delaying large‑scale rollouts pending clearer regulatory guidance, sufficient liquidity and robust infrastructure. Proprietary trading firms and market makers, which can operate with fewer capital constraints, are expected to lead initial activity. Unlike traditional futures that close for weekends, perpetual contracts trade continuously, potentially allowing traders to hedge positions across market hours.
Regulators are debating whether certain perpetual contracts should be classified as futures or swaps, a distinction that influences margin requirements and participant eligibility. Legal challenges have already emerged, with CME contesting the CFTC’s treatment of Kalshi’s bitcoin perpetuals. Industry participants note that market depth and collateral system efficiency remain concerns for institutional adoption. For now, large banks are watching rather than leading, awaiting further clarification and market maturity.
Bitcoin options traders have reduced downside hedging ahead of the Federal Reserve’s July meeting, lowering the put/call open interest ratio to roughly 0.52 from 0.76 in late June, according to Glassnode. The ratio, which measures the proportion of put contracts against call contracts, signals reduced near‑term protection. Short‑dated options show weaker demand than three‑ to six‑month contracts, and implied volatility for the upcoming week is about 34.3% versus 40.8% for six‑month contracts, indicating a calmer short‑term outlook. The market has been unwinding the downside protection built up in June as traders accumulate $70,000 strike calls and bull call spreads, reflecting expectations of upside in the spot price. Bitcoin’s options market has been less defensive over the past month, with open interest declining while call volume rises. The Federal Reserve will announce its decision on Wednesday; analysts estimate a 15% probability of a July rate increase, leaving little room for unexpected moves. Bitcoin has traded around $65,000 for much of the week, including a selloff that erased about $797 billion from U.S. technology stocks and a series of filings for bankruptcy protection by blockchain firms Movement Labs and Storj, as well as wind‑down announcements from exchanges BitMEX and BitMart. Binance continues to hold roughly 55% of user funds and 24% of spot volume, reporting net inflows in early July while the broader market saw outflows. Thin positioning ahead of the Fed decision could amplify price swings if the outcome or projections differ from market expectations.
Singapore-based stablecoin payments firm Triple A announced that unauthorized access to its own digital asset wallets resulted in the movement of roughly 5,280 ETH to a single Ethereum address between July 24 and July 25, while the company said client funds were not affected and the loss was confined to its treasury.
The firm, licensed as a Major Payment Institution by Singapore's Monetary Authority, said the breach was contained without impacting client money, that client assets are held in separate trust accounts with safeguarding institutions, and that services were temporarily placed in maintenance mode for about three hours before being restored.
On-chain analysis by analyst Specter identified address 0x01F83B5d4fb30E8AA3daC1681B4048D9135253b1 as the destination for the consolidated transfers, which comprised 12 inbound transactions totaling 5,287.08568411 ETH, according to Etherscan records.
Triple A has not disclosed the exact amount of treasury loss or the method by which the wallets were accessed, and it is cooperating with cybersecurity and blockchain-forensics specialists, the Singapore Police Force and other authorities to trace assets and support recovery. The company said it continues to monitor the situation and absorb the impact from its reserves, and the two principal unknowns - the total loss and the entry point of the breach - remain unresolved.
New York Attorney General Letitia James testified before the Senate Homeland and Governmental Affairs permanent subcommittee on Monday, warning that the Digital Asset Market Cla...
New York Attorney General Letitia James testified before the Senate Homeland and Governmental Affairs permanent subcommittee on Monday, warning that the Digital Asset Market Clarity Act could weaken states' ability to prosecute cryptocurrency fraud and urging Congress to add stronger anti‑money‑laundering and ethics provisions. Congress is moving to pass the Clarity Act, which would set federal standards for cryptocurrency regulation, give the Justice Department enforcement authority, and include an ethics provision that currently bars public officials and their spouses from issuing or sponsoring digital assets. The bill also includes a sunset clause that would end the restrictions in January 2029. Lawmakers have not yet secured the 60‑vote threshold needed for Senate passage, and the House is scheduled to adjourn before the Senate's August 7 recess. James said the act would preempt state investor protection laws and limit the ability of state and local agencies to investigate and prosecute fraud. She urged Congress to ensure that financial intermediaries, including decentralized finance (DeFi) platforms, cooperate with law enforcement regardless of underlying technology. James also recommended that the ethics language be expanded to cover all family members of public officials and that the ban on official involvement in digital assets apply for at least one year after leaving office. Industry groups have pressed for the bill's passage. The Crypto Council for Innovation, the Blockchain Association and The Digital Chamber sent a letter to Senate leaders last week, stating that the legislation would establish durable rules to protect consumers, safeguard markets and support innovation. The advocacy group Stand With Crypto announced it would score lawmakers on their votes, while financial firm Franklin Templeton called the bill a step toward clear regulation for investors and firms. Opposition centers on ethics language. Democrats have called for tighter provisions that address former President Donald Trump's crypto interests, including a memecoin launched before his inauguration and his family's stake in World Liberty Financial. Financial disclosures show Trump received millions of dollars linked to World Liberty Financial. James said the current ethics provision should extend to all relatives of officials and prohibit regulation of industries in which officials have a financial interest. Time constraints are also a factor. The House will end its session this week, and the Senate will leave Washington on August 7. A note from TD Cowen's Washington Research Group said the next ten days are critical for advancing the bill, citing ethics concerns as one challenge. Senate approval would require at least 60 votes, after which the legislation would return to the House for consideration. The bill's fate remains uncertain as the legislative calendar shifts toward the upcoming election cycle, and it is unclear whether enough bipartisan support can be assembled before Congress adjourns.
The U.S. Senate will address a Russia sanctions bill before considering the Crypto Clarity Act, according to Majority Leader John Thune's schedule.
The Crypto Clarity Act, formally the Digital Asset Market Clarity Act, advanced in the House earlier this year but remains stalled in the Senate as lawmakers prioritize other legislative items.
Thune announced on Monday that he will pursue a series of nominee confirmations and then begin cloture proceedings on the Russia sanctions legislation on Tuesday night, a process that typically requires several days.
The Russia bill would impose sanctions on the country's leadership and introduce tariffs on trading partners; it also honors the late Senator Lindsey Graham, whose funeral this week will occupy the chamber on Tuesday and Wednesday.
The Clarity Act includes a provision that limits senior government officials, including President Donald Trump, from endorsing crypto projects; Trump has agreed to accept the restriction, while Democrats argue it does not sufficiently curb his crypto holdings.
Because the Senate can consider only one disputed measure at a time, the Clarity Act is unlikely to receive floor time before the August 8 recess, potentially moving its next opportunity to September.
In the meantime, crypto markets have shown mixed movements; Binance retained about 55% of user funds and 24% of spot trading volume in early July, reporting net inflows, while the overall market experienced outflows.
The act would need approval from both chambers and the president to become law; if passed, it would establish a regulatory framework for digital assets and could influence the implementation of the GENIUS Act and SEC and CFTC policy initiatives.
BitMart announced that it will wind down its trading platform after nine years, with new registrations, deposits and orders halted on July 26 at 01:30 UTC and trading services ending on August 26 at 01:00 UTC before full cessation on January 31, 2027. The exchange secured an Australian Financial Services License in June and reported a 256% increase in assets under management in the first half of the year, while earlier service reductions included discontinuation of Spot Margin and suspension of its Automated Market Making Bot, presented as measures to improve security and reliability. On-chain data showed that many Ethereum and stablecoin balances tracked by Nansen were transferred out shortly before the announcement, leaving tracked wallets with limited liquid assets. Lookonchain reported that 58 wallets withdrew about $805,000 within 24 hours after the announcement and that BitMart processed no withdrawals over $25,000 for an eight‑hour period. Blockchain analysis firm Onchain Lens found no large withdrawals from retail users, market makers or listed projects during the same window. Project Paxi Network called on BitMart to release funds it said belonged to its users and market makers, demanding a clear timeline for repayment; the firm did not disclose the amount or the number of users affected. BitMart has not publicly responded to the claims. The exchange previously addressed withdrawal concerns in May, stating that restrictions applied to 239 linked accounts identified by its risk‑control system as part of an alleged exploitation of trading subsidies, while legitimate users remained unaffected, and said it was preparing a proof‑of‑reserves disclosure pending security and risk‑control reviews. During the wind‑down, BitMart recommended that users complete identity verification and close positions before August 26, 2026, and submit withdrawal requests before 05:00 UTC on that date; it added that withdrawals may be subject to additional reviews of KYC data, device login, IP address, destination wallet and blockchain transaction risk, as well as source‑of‑funds and sanctions checks. The firm warned that high withdrawal volumes, documentation requirements, network congestion and compliance reviews could extend processing times, and that a submitted request does not guarantee immediate blockchain transfer. BitMEX announced a separate shutdown scheduled for September 23, also urging users to withdraw funds before the deadline. The proximity of the two closures has renewed scrutiny of the risks associated with leaving assets on centralized exchanges, a concern highlighted by withdrawal freezes at Celsius, Voyager Digital and FTX in 2022. Analysts noted that rapid withdrawals during the 2022 collapses, which represented billions of dollars in customer funds, indicated a loss of confidence in centralized platforms, and that proof‑of‑reserves disclosures have become a standard industry response. BitMart has not indicated a liquidity shortfall, and on‑chain evidence has not confirmed one, but the speed of withdrawal processing will influence whether its shutdown remains a contained exit or contributes to broader market unease.
Perpetual swaps, also known as perpetual futures, account for an estimated $40‑50 trillion in annual trading volume and are a major leveraged product used by professional traders, hedge funds and retail speculators to gain exposure to bitcoin and other cryptocurrencies without owning the underlying assets. The product evolved from traditional futures contracts, which expire at set dates, creating basis and rolling challenges in crypto markets. BitMEX, launched in 2014, shortened contract expirations to address these issues, before introducing perpetual swaps in 2016. These swaps have no expiry, allowing positions to remain open indefinitely. To align the swap price with the spot price, exchanges apply a funding rate every eight hours. Traders on the long side pay the opposite side when the swap trades above spot, and receive payments when it trades below. The rate increases with the size of the price deviation, creating a self‑correcting pressure. Market makers offset premiums by shorting the swap and buying the spot asset. Leverage is a core feature, with platforms offering positions many times the trader's margin. BitMEX previously offered up to 100× leverage. To protect exchanges from large losses, automated liquidation systems close positions once margin is depleted. The speed of these engines has become a competitive factor. Perpetual swaps now dominate price discovery in crypto, often leading spot price movements. Their structure has attracted regulatory interest, with U.S. regulators examining the use of perpetual swaps for traditional assets such as equities. The product, originally a solution to the limitations of crypto futures, is now one of the most widely traded financial instruments in the cryptocurrency market.
Stablecoin market capitalization fell $7.7 billion in June 2026 to about $312 billion, marking the first monthly decline after five months of growth and the largest dollar reduction since the Terra-Luna collapse in May 2022. Transaction volume, measured by Visa’s Allium-powered dashboard, reached $1.79 trillion, a 63 percent increase from May and a 125 percent rise from June 2025. USDC accounted for roughly $1.21 trillion of the adjusted volume, while USDT handled about $576 billion. The supply decline was driven by lower circulating tokens rather than a drop in token prices; USDC’s market share grew despite having less than half USDT’s circulating supply. Data providers reported differing totals because they track assets and apply varied classification rules. The contraction occurred alongside growth in tokenized Treasury products, which rose 1.75 percent to $30.1 billion in June, suggesting a possible shift of capital toward yield-linked assets. CoinGecko noted that USDS fell 16.4 percent and USDe fell 24.4 percent in the second quarter, partly because yields fell below the risk-free rate and users unstaked related products. The GENIUS Act, enacted on July 18, 2025, created a federal framework for payment stablecoin issuers, and the Office of the Comptroller of the Currency proposed rules covering reserves, redemption, risk management, reporting, custody and supervision, with an effective date set for January 18, 2027 pending final regulations. Customer identification requirements are under discussion, with comments due by August 21, 2026, and the FDIC has issued proposed reporting forms for payment stablecoin issuers. Continued redemptions or a return to net issuance will determine whether the June decline signals a longer contraction in on-chain dollar liquidity.
Bitcoin fell about 2.7% to roughly $63,200 on July 28, 2026, after the U.S. market closed on Monday. The decline extended to other major cryptocurrencies.
Asian equity markets sold off, with South Korea’s Kospi index dropping about 10% to its lowest level since mid‑April, a 25% decline from its mid‑June peak. The drop was driven by large‑cap technology stocks such as Samsung and SK Hynix.
The U.S. Senate postponed a vote on the CLARITY Act, a proposed regulatory framework for digital assets, to prioritize a Russia sanctions bill, delaying any legislative action until the week before the August 8 recess. Analysts said Bitcoin tends to move with equities when macro‑interest‑rate stress is high, and that volatility is expected around the Federal Reserve’s rate decision on Wednesday and key economic data on Thursday. Bitfinex analysts added that Bitcoin’s correlation with equities is heightened during macro‑driven stress and weakens when market moves are specific to individual stocks.
Binance maintained a roughly 55% share of user funds and 24% of spot trading volume in early July, while other tracked markets experienced net outflows. The Fed’s decision on Wednesday and the release of Core PCE and GDP reports on Thursday are likely to increase price swings across asset classes.
Zimbabwe’s securities regulator listed seven fintech projects as approved participants in its regulatory sandbox on July 24.
The sandbox permits live trials under set limits and supervision, but it does not guarantee commercial registration after testing.
The approved projects include a blockchain‑based capital‑raising platform by Zimbabwe Entrepreneurship Exchange, an asset tokenization service by Ndarama Standard, a synthetic trading test by Questview Brokers, a crowdfunding platform by Crowdaxe Capital, a securities tokenization test by Procode Platforms, an asset‑tokenization market by Financial Securities Exchange, and an infrastructure‑tokenization project by Colmin Resources Zimbabwe. The regulator said the sandbox is intended to generate evidence for future policy while supporting investor protection, financial stability and market integrity. Participants must operate within an approved testing plan covering customer limits, transaction exposure, risk controls and loss‑handling procedures, and the testing period must last at least 12 months, with possible extensions of up to another 12 months. The commission may relax selected requirements during the trial, revoke admission for non‑compliance, or issue a licence, conditional no‑objection letter, or deny permission after the trial. Successful testing does not automatically enable a nationwide launch. Tokenization approval under the securities sandbox does not constitute registration as a virtual asset service provider; separate anti‑money‑laundering and virtual asset registration requirements apply.
The next steps involve the start of controlled trials, regulatory reporting and the commission’s assessment of whether each project meets licensing criteria.
U.S. District Judge Katherine Menendez issued a temporary injunction on July 27, halting Minnesota’s enforcement of a law that would prohibit the creation, operation and advertising of prediction markets by CFTC‑regulated platforms Kalshi and Polymarket US. The order prevents the state from applying the ban while the case proceeds. Minnesota’s regulation, scheduled to take effect on August 1, classifies certain event contracts as prohibited and imposes criminal penalties for violations. The plaintiffs, including Kalshi and Polymarket US, argued that the Commodity Exchange Act preempts the state statute. Judge Menendez concluded that the plaintiffs were likely to succeed on the claim that the federal law grants the Commodity Futures Trading Commission exclusive authority over transactions involving swaps on designated contract markets. She noted that several event contracts offered by the platforms appeared to meet the legal definition of a swap. The injunction therefore maintains the status quo, allowing the platforms to operate in Minnesota pending further adjudication. The judge warned that the order could be modified if the plaintiffs fail to demonstrate that every contract listed meets the swap definition. The litigation will continue to determine whether the Minnesota ban remains enforceable.
Bitmine purchased nearly 10,000 ETH over the past week, raising its Ether holdings to 5.79 million ETH. About 85% of the holdings, or roughly 4.9 million ETH, are staked through validator operations. The company projected annualized staking rewards of $299 million once all assets are deployed across its staking infrastructure and partner validators. As of July 26, Bitmine’s crypto holdings, cash and marketable securities totaled $11.8 billion. ETH outperformed Bitcoin in the previous seven days, gaining 2.4% while Bitcoin fell 0.7%, according to CoinGecko data. Bitmine chairman Tom Lee said the rising ETH/BTC ratio, which reached a three‑month high, indicated strengthening momentum for Ether. The firm’s Ether holdings represent about 4.8% of the total cryptocurrency supply. Bitmine’s strategy has diverged from that of Strategy, which paused Bitcoin purchases in recent weeks. Strategy recently raised $544.5 million through stock sales, repurchased $25 million of preferred shares and increased its US dollar reserve to $3.75 billion while holding 843,775 BTC. The continued Ether accumulation highlights Bitmine’s focus on staking yields as the asset outperforms Bitcoin.
Strategy sold 5,429,160 shares of its Class A common stock from July 20 to July 26, raising $544.5 million in net proceeds and increasing its US dollar reserve to $3.75 billion as of July 26, up from $3.225 billion the prior week. The company also repurchased 288,930 shares of its STRC preferred stock for $25 million, according to a Form 8‑K filed with the SEC on Monday. Strategy holds 843,775 BTC at an average purchase price of $75,476 each, representing $63.69 billion in aggregate value; the current price is about $64,971 per BTC. The MSTR share price rose more than 2% in premarket trading, while the STRC preferred shares gained 2.3% to $88.90 before the Nasdaq open. Michael Saylor, Strategy’s executive chairman, posted “We’re gonna need another color” on X on Sunday, a statement that some observers linked to a possible shift in the firm’s preferred stock strategy. Saylor argued that Bitcoin’s growth depends on integration with traditional financial institutions, a view that drew criticism from some Bitcoin advocates who said such involvement conflicts with the network’s decentralized design. Those critics referenced the Bitcoin white paper, which describes the asset as peer‑to‑peer electronic cash intended to operate without financial intermediaries. Strategy has not announced any Bitcoin purchases or sales during the period, and its expanded cash reserve supports dividend payments on preferred stock and interest on outstanding debt. The role of traditional banking in Bitcoin’s future remains unresolved.
By Friday afternoon, traders on commodity desks shift focus from profit making to assessing risk for positions held over the weekend. The inability to adjust bets while markets are closed means traders evaluate how much loss they can tolerate until Sunday evening reopening. Mustafa Al Niama, former Goldman Sachs head of digital assets and now head of capital markets at Mysten Labs, described the change in a recent interview. Terry Duffy, chairman and CEO of CME Group, noted that risk does not pause for the day of the week. Earlier this year, a sudden increase in oil-linked futures volume occurred over a weekend when traditional markets were closed, driven by speculation on Iran-Israel tensions. Traders moved to crypto exchanges to trade perpetual futures contracts that operate 24/7. On March 8, the decentralized exchange Hyperliquid reported a record $1.2 billion in active perpetual contracts, a Sunday when commodity markets were shut. Although weekend volume remains lower than weekdays by traditional standards, it is no longer an isolated occurrence. Energy Aspects analysts said the narrowing of the Friday discount in implied volatility for West Texas Intermediate crude options is linked to the availability of weekend hedging through perpetuals. They estimate that a continuous futures contract could generate roughly 40% more hedging sessions over the life of a typical contract. CME has announced plans to introduce smaller, 24/7 contracts for WTI crude and gold, but the Commodity Futures Trading Commission has blocked the proposal, and CME previously sued the agency after it approved perpetual futures. Institutional traders remain cautious due to limited liquidity and the need for clearing and settlement infrastructure that operates beyond regular business hours. Gracy Chen, CEO of Bitget, said most of the current volume comes from retail traders and proprietary trading firms rather than large institutions. Binance Research data showed that crude oil perpetual volume represented about 2% of primary futures volume in March and 4% in April. In 2025, total perpetual trading volume on centralized exchanges reached $62 trillion, compared with spot trading volume of about $19 trillion, according to Pantera. Hyperliquid’s monthly perpetual volume was close to $200 billion, according to DeFiLlama. Traders now use crypto perps to gauge market direction before traditional markets reopen, according to Flow Traders’ Hein Tibosch. The ability to hedge over the weekend may allow traders to hold positions they would have previously closed before Friday’s close. However, the broader impact on traditional markets is uncertain, as crypto‑derived volumes are still lower than traditional exchanges.
Bitcoin ETFs posted a third consecutive week of inflows, adding $33.8 million for the week ended July 24 after net outflows of $465.26 million on Thursday and Friday. The U.S.-listed spot Bitcoin exchange‑traded funds, which track the price of Bitcoin, have reversed a stretch of eight weeks of outflows that began in the week ended May 15, according to data tracked by SoSoValue. The latest weekly total, the smallest since the prior two weeks recorded inflows of $197 million and $75.67 million, reflects a return of institutional capital but at a reduced pace. On July 23 and July 24, the ETFs experienced outflows of $225.2 million and $240.1 million respectively, cutting into the week's net gain, SoSoValue reported. Crypto analytics firm BRN said the July inflows indicate a cautious repair phase after heavy outflows in May and June. Bitcoin climbed to a July high of more than $66,500 on Tuesday before retreating below $64,000 by week's end, while the Nasdaq 100 declined amid weakness in chipmaker stocks, a bellwether for the AI sector. The modest inflow pattern suggests tentative institutional demand, but the market remains exposed to broader equity trends and potential profit‑taking.
Bitcoin rose 1% to $65,155 on Monday, while Ethereum climbed 4% to about $1,964, its highest level since early June. The gains followed a temporary halt in U.S. strikes against Iran and a corresponding Iranian pledge to suspend attacks, which contributed to a 6.5% drop in Brent crude to $90.45 per barrel.
The rebound comes as crypto markets assess the impact of a recent surge in oil prices above $100, which has altered expectations for U.S. interest rates ahead of the Federal Reserve’s two‑day meeting on Wednesday. The consumer price index fell 0.4% in June, the largest monthly decline since April 2020, with annual inflation slowing to 3.5% and core inflation easing to 2.6%. Energy price declines accounted for much of the improvement.
Fed funds futures indicated a roughly 33% chance of a 25‑basis‑point rate increase when the meeting concludes, up from 16% a week earlier, though about two‑thirds of the market still expects the policy rate to remain at 3.50% to 3.75%. The Fed’s June statement highlighted supply shocks, including energy, as contributors to elevated inflation, and its projections show a median official expectation of a 3.8% rate by the end of 2026. Chair Kevin Warsh has indicated that tighter policy remains a possibility even without a rate hike.
Options data show that the put‑call ratio for Bitcoin has fallen to 0.52 from 0.76 in late June, with call volume increasing and one‑week implied volatility at 34.3% compared with 40.8% for six‑month options. Traders have reduced short‑term downside protection, but longer‑dated volatility remains elevated. The upcoming release of second‑quarter GDP and personal income and spending data on Thursday may further shape market expectations.
Whether the Fed’s policy signal on Wednesday validates the recent relief rally or revives tightening concerns will determine Bitcoin’s near‑term trajectory. A hold with hawkish guidance could pressure risk assets, while a more accommodative stance may allow the rebound to continue. Thursday’s economic data will provide the next test for the broader macro trade.
A federal judge in Minnesota granted a preliminary injunction blocking the state’s law that criminalizes prediction market operators, finding that the statute appears to conflict with the federal Commodity Exchange Act.
The law, enacted earlier this year, prohibited platforms such as Kalshi and Polymarket from offering event‑based contracts to Minnesota residents. Kalshi, Polymarket and the Commodity Futures Trading Commission filed suit in March, arguing that the statute violated the CFTC’s jurisdiction over swaps.
Judge Katherine Menendez of the U.S. District Court for the District of Minnesota wrote that the plaintiffs were likely to succeed on their express‑preemption claim that the state law is preempted by the CEA. She said the CFTC has authority over swap contracts and that the law’s application to many trades would be invalid. The judge added that refusing the injunction would cause irreparable harm to the companies.
The injunction remains in effect until a final decision is reached on the merits. The case is scheduled to proceed to trial later this year.
Empery Digital, a Nasdaq‑listed Bitcoin treasury company, sold about 1,400 BTC between May 7 and July 10, generating roughly $87 million in proceeds and using part of the funds to acquire an 8 % stake in Cardinal Data Power, a Hunt Properties‑affiliated developer, as part of a $70 million Series A intended to support a West Texas data‑center campus. The company discontinued its treasury dashboard on June 30, stating that Bitcoin‑based net asset value no longer fully reflected its total NAV, and repaid $10 million of debt with the sale proceeds while allocating cash to a Midwest property purchase, litigation expenses and operations. As of July 10, Empery held 1,514 BTC valued at approximately $73.9 million and carried $45 million of debt. The Cardinal investment closed on July 20, while a separate $65 million commitment through EMHU for a Midwest property remains contingent on due diligence and a non‑binding lease letter of intent. The pending property acquisition and lease finalization will test whether the company’s pivot to AI data‑center assets can move beyond balance‑sheet exposure while still retaining its Bitcoin holdings and debt obligations.
X Money, the financial arm of social media platform X, began offering deposit accounts, instant transfers and a Visa debit card to Premium and Premium+ subscribers in the United States. The service provides annual interest rates of up to 6% on interest‑bearing balances. Users can send funds instantly to other X accounts without a transfer fee and receive free ATM withdrawals. Purchases made with the X Card earn 3% cashback. Direct deposits may be available up to two days early. The offering includes wire transfers, check printing and access to customer support. X described the rollout as the first peer‑to‑peer payment service built directly into a US social media platform. The company said it is the first US social network to combine insured deposit accounts, interest earnings, a debit card and broader payment tools within its main product. The service relies on Cross River, a regulated bank, for deposit insurance and on Visa for card processing. Individual deposits held at Cross River are insured up to $250,000; a cash‑sweep program can provide aggregate FDIC coverage of up to $10 million. X Money itself is not an FDIC‑insured institution, so coverage depends on the underlying banks and the sweep program’s records. Eligibility is limited to Premium and Premium+ users, and no timetable has been set for expanding the service to free users or to international markets. Elon Musk previously said that payments could eventually cover a user’s entire financial life, but the current rollout still depends on traditional banking partners and payment networks. X has not announced support for Bitcoin, Dogecoin or any other cryptocurrency, and Musk said the platform will not issue its own crypto token.
Ethereum, Solana and Avalanche have become busier and cheaper to use over the past year, even as their token prices have fallen by roughly half or more. Bitwise released its first quarterly staking report, showing that onchain activity increased while transaction fees declined. The report found that 40.2 million ETH, about one‑third of the total supply, was staked at the end of the second quarter. Institutional participants, including ETFs and corporate treasuries, accounted for most of the new ETH added to the validator pool. Ethereum’s annualized staking yield was 2.84% in the second quarter, compared with 6.25% for Solana. More than 93% of Ethereum’s staking rewards and over 90% of Solana’s rewards came from newly issued tokens rather than user fees. The decline in yields was driven by protocol design that made blockspace cheaper and more abundant, and by the dilution of rewards as more participants staked. Benbrik of Bitwise said clients use staking to gain exposure to yield and onchain activity, and that liquid staking solutions allow them to earn yield while using the staked token in DeFi.
A security study found 31 previously unknown vulnerabilities in 15 major facilitators that support the x402 HTTP‑native payment standard, covering about 99% of observed transactions. x402 is an HTTP‑native standard that enables programmatic crypto payments. Facilitators act as intermediaries that verify payment proofs, construct settlement transactions, and often sponsor network fees. The research examined 15 facilitators representing 99% of observed x402 transactions. Each facilitator failed at least one of eight payment‑verification or settlement rules, resulting in 49 violation instances classified into four attack categories: free shopping, asset theft, service denial, and gas abuse. Two free‑shopping attacks were demonstrated end‑to‑end. Ten additional cases were deemed high risk because loss depended on merchant actions after verification. The analysis also identified three gas‑abuse cases and one asset‑theft path linked to ERC‑6492. Researchers executed a proof of concept that triggered a token approval but did not complete a transfer or steal funds. The study estimated that across more than 119 million Base and Solana transactions from October 1 to December 26 2025, about $202,000 in gas and fees were incurred, including roughly $5,800 from transaction reverts. All 15 facilitators exhibited high‑risk service‑denial or cost‑amplification paths; however, no outage or gas‑drain test was performed. The authors disclosed findings to 14 of 15 affected parties in January. As of February 6, Coinbase, PayAI and Mogami had acknowledged six vulnerabilities and applied fixes, while work on the remaining issues continued. Because the paper anonymizes the specific mapping of fixes to vendors, it does not indicate which fixes correspond to each party. The authors recommend binding verification to settlement, reserving nonces, rechecking time and account state, allowing only ERC‑1271 and ERC‑6492 transaction shapes, limiting sponsored fees, and rejecting uneconomic or non‑settleable payments. Merchants are advised to release services only after successful settlement or to implement explicit rollback mechanisms. The findings highlight the need for stronger controls around intermediaries in x402 payment flows before broader adoption.
U.S. District Judge Katherine Menendez issued a preliminary injunction on July 27 that blocks Minnesota from enforcing its 2025 prediction market ban, which was scheduled to take effect on August 1. The order applies to CFTC‑registered designated contract markets, including Kalshi and Polymarket US, and will remain in place while the lawsuits proceed.
Minnesota’s statute 609.7615 classifies the creation, operation or facilitation of covered prediction markets as a felony and also criminalizes support, data services, payment processing and advertising related to such markets. The law would have applied to a broad range of event contracts covering sports, elections, government actions, legal cases and cultural topics. The Commodity Futures Trading Commission, which oversees designated contract markets, argued that the ban conflicts with the Commodity Exchange Act, which grants the CFTC exclusive jurisdiction over swaps traded on federally registered contract markets.
Judge Menendez concluded that the plaintiffs were likely to succeed on an express preemption claim and that the ban would probably extend to transactions reserved for federal oversight. She also found that the plaintiffs would suffer irreparable harm without the injunction, and that the balance of harms justified temporary relief. The ruling does not address implied preemption or First Amendment claims.
The injunction limits enforcement to CFTC‑registered contract markets rather than every prediction market. While Kalshi and Polymarket US are parties in the case, the court rejected the argument that CFTC registration alone determines the legality of each contract. The judge noted that certain contracts, such as weather or crop agreements, may have economic consequences, whereas others, like sports propositions, may not, suggesting the final scope of relief could be narrower.
Minnesota Attorney General Keith Ellison said he disagrees with the decision and will continue to defend the statute, asserting that prediction markets constitute gambling and that the law protects residents from unlicensed activity. Kalshi and Polymarket welcomed the order, stating that states cannot prohibit products that fall outside their jurisdiction.
Separate legal actions are underway in Massachusetts, Michigan, Nevada and Washington, where courts have issued orders limiting Kalshi’s activities. In Nevada and Washington, Kalshi and Polymarket lost bids to halt proceedings, and a Michigan order temporarily restricted the company’s sports contracts.
The three Minnesota lawsuits will move toward final adjudication on the merits. The court may later examine specific contract categories and determine whether federal preemption applies to all, some or none of them. The CFTC’s June proposal, which would require a contract‑by‑contract review for event contracts involving gaming, war, terrorism, assassination or unlawful conduct, is also pending public comment.
While the injunction preserves the status quo for CFTC‑registered markets during litigation, the ultimate outcome of the preemption dispute remains unresolved, and any final decision could reshape the regulatory landscape for prediction markets across states.
Zimbabwe's Securities and Exchange Commission (SECZ) has admitted seven fintech projects to its regulatory sandbox. The approved participants are Zimbabwe Entrepreneurship Exchange, Ndarama Standard, Questview Brokers, Crowdaxe Capital, Procode Platforms, Financial Securities Exchange (FINSEC), and Colmin Resources Zimbabwe. The projects involve blockchain-based capital raising, crowdfunding, synthetic trading and asset tokenization. Four of the seven projects focus on tokenization of assets, securities and infrastructure. The sandbox allows projects to test under regulatory supervision. Completion of the testing does not automatically grant full market registration, and participants must still satisfy the commission's registration requirements before commercial launch. The SECZ noted that the tokenization-heavy cohort reflects growing interest in using blockchain instruments to expand access to capital markets and bring less liquid assets into regulated structures. The regulator will continue to monitor the projects and evaluate their readiness for broader approval.
Coinbase CEO Brian Armstrong said AI agents will increase demand for crypto‑based financial services, highlighting the Base network, USDC and the x402 payment protocol. He made the remarks on X, stating that AI is a megatrend but does not diminish crypto and that AI agents require programmable money rather than traditional banking rails. Armstrong noted that agentic payment activity on Base reached 100 million transactions in June, according to Chainalysis, which identified onchain flows tied to the x402 standard and found that transactions worth at least $1 accounted for 95 % of the total value transferred. The analytics firm also reported that agentic payment wallets were typically newer, held more asset types and carried smaller balances than average Base users. Coinbase launched Base in 2023 as an Ethereum layer‑2 network and introduced x402 in 2025 to enable automated stablecoin payments between software applications. USDC, the dollar‑pegged stablecoin created by Circle and supported by Coinbase, is used in these payments. Coinbase is scheduled to report second‑quarter earnings on Thursday, with analysts estimating revenue of $1.29 billion, a 13.8 % decline from the prior year, and flat earnings per share.
Bitcoin stayed around $65,000 on July 27, 2026, while ether reached its strongest price in almost two months. The price stability occurred despite a decline in AI‑linked technology stocks, which pulled the Nasdaq lower, and after a week in which bitcoin remained largely unchanged from Friday. Analyst Joel Kruger of LMAX Group said that a breakout above $67,300 would confirm a new leg of the crypto bull market, and that ether would need to surpass $2,000 to achieve a similar signal. Nansen senior research analyst Nicolai Sondergaard noted that the recent rebound lacked strong buying conviction and could retreat toward $52,000‑$58,000 if market conditions do not improve. Open interest in bitcoin futures fell even as prices edged higher, suggesting traders were reducing exposure rather than adding bullish bets. Exchange data showed that about 9,000 BTC left exchanges over the past week, while futures open interest declined. The Federal Reserve’s policy decision on July 30, together with the core PCE inflation report on Thursday and earnings from Microsoft, Meta, Apple and Amazon, are expected to influence risk assets. Bitcoin and ether options set to expire on Friday, with a total notional value of roughly $13‑$14 billion. Until stronger stablecoin inflows, sustained spot bitcoin ETF purchases, and evidence that long‑term holders stop selling at a loss appear, the recent recovery may remain a short‑term positioning bounce.
Strategy (MSTR) raised $544.5 million last week, bringing its cash reserve to $3.75 billion, a level that Executive Chairman Michael Saylor says can cover preferred stock dividends for more than two years.
The funds were generated from the sale of more than 5.4 shares of common stock, according to an SEC filing released Monday.
A portion of the proceeds, $25 million, was used to repurchase 288,930 shares of the company’s high‑yielding preferred stock, STRC.
Strategy’s bitcoin holdings remained unchanged at 843,775 coins.
The company’s shares and STRC’s preferred stock each rose about 2.5% in pre‑market trading as bitcoin climbed to $65,000 over the weekend.
No changes were made to the company’s bitcoin position.
On July 26, WEMIX announced that a compromised contract allowed the unauthorized minting of about 5.23 million WEMIX$ stablecoins. This led to the suspension of bridges, liquidity pools and other services on the WEMIX3.0 network. The WEMIX whitepaper defines WEMIX$ as 100% collateralized by USDC held in a Treasury and states that its supply must match the Treasury’s USDC volume. Minting is permitted only through Authorized Mint Access, which is granted to the DIOS stability protocol. Unusual transactions began at 18:17 local time (09:17 UTC) on July 26, according to a preliminary incident update. WEMIX has not disclosed how the contract ownership was compromised, and the update does not confirm that USDC.e moved by the attacker originated directly from the Treasury. WEMIX said the minted tokens were converted into 30,736 native WEMIX tokens and 724,198.27 USDC.e, which were bridged to Ethereum and BNB Smart Chain, swapped for assets such as ETH and USDT, and distributed across multiple addresses. Some of the assets were later deposited at centralized exchanges. The nominal number of tokens does not establish a $5.23 million loss. WEMIX has not provided a final loss estimate, nor has it identified the exchanges involved. After receiving cooperation requests, a few exchanges froze addresses linked to the attacker, but no figures were given for the frozen amounts or for any impact on individual user balances. WEMIX listed every bridge connected to and from WEMIX3.0 as suspended, including its Chainlink CCIP route and PLAY Bridge. The announcement did not attribute the breach to Chainlink or report a CCIP failure. Trading in the WEMIX‑USDC.e, WEMIX‑WEMIX$, CROW‑WEMIX$, TIPO‑WEMIX$ and PLAY‑WEMIX$ pools was halted, and the WEMIX Module and PNIX DEX were paused. Blockchain features in several games were restricted, and NFT marketplace trading and bidding were disabled. The disruption followed a September 2025 announcement that WEMIX would phase out WEMIX$ in favor of USDC.e while continuing conversions through the WEMIX Module, which was among the services suspended. WEMIX has not set a timetable for reopening the services. The ultimate impact, frozen amounts and potential user losses remain pending the company’s next findings.
BitMEX customers have filed a class action lawsuit in the Southern District of New York seeking the return of 622.66 Bitcoin, according to a complaint submitted July 23. The plaintiffs, including BKX Services Inc and David Namdar, allege that BitMEX’s liquidation engine closed positions when unrealized losses reached about half of the collateral posted, leaving collateral worth roughly twice the losses while seizing the remainder and transferring it to its insurance fund. The complaint further alleges that an undisclosed internal trading desk accessed customer positions, hidden orders and liquidation points through anonymized accounts, and continued trading during server freezes that locked ordinary users out. It also claims the desk used reference exchanges to induce price moves that triggered liquidations. The suit names BitMEX operator HDR Global Trading Limited and four affiliated entities, as well as co‑founders Arthur Hayes, Samuel Reed and Benjamin Delo and Gregory Dwyer. BitMEX CEO Peter Wilkinson called the allegations spurious and opportunistic and said the company would defend itself vigorously. The filing revisits issues from a 2020 class action brought under the Commodity Exchange Act, which was dismissed without prejudice in June 2025. The Seychelles Financial Services Authority said HDR voluntarily withdrew its pending virtual‑asset licence on July 23. The regulator‑approved wind‑down plan allows HDR to close positions and return client‑held assets before services end on September 23, though it does not address disputed Bitcoin from historical liquidations. BitMEX said its assets exceed its liabilities and that users will retain access to view balances and withdraw funds after September 23.