Terraform bankruptcy estate sues Jane Street, alleging insider trades amplified 2022 TerraUSD collapse
The Terraform bankruptcy estate filed suit in the U.S. District Court for the Southern District of New York, accusing quantitative trading firm Jane Street of using confidential information to trade ahead of TerraUSD’s 2022 de-peg. The complaint seeks monetary recovery for creditors after a collapse the filing says drove roughly $40 billion in losses across […]
U.S. Spot Bitcoin ETFs Record Largest Cycle Drawdown as Balances Shrink by 100,300 BTC
U.S. spot Bitcoin ETFs just logged the deepest balance contraction of this cycle, with aggregate holdings down about 100,300 BTC from the October 2025 peak to roughly 1.26 million BTC. This drawdown has translated into approximately $8 billion of redemptions since October 2025, including about $1.6 billion of outflows in January 2026.
Sanctions Evasion Drove $141 Billion in Illicit Stablecoin Flows in 2025, TRM Labs Says
Illicit stablecoin activity hit a five-year high of $141 billion in 2025, with TRM Labs attributing most of that volume to sanctions evasion. TRM also highlighted concentration risk by pointing to A7A5, a ruble-pegged stablecoin that accounted for about $72 billion of the total.
California Has Begun Enforcing State-level Crypto Licensing Under DFAL
California has begun enforcing a state-level crypto licensing regime described as “DFAL,” a shift that materially changes the compliance posture for digital-asset service providers operating in the state. This enforcement signal moves DFAL from a policy concept into a real operating constraint for custodians, trading platforms, and issuers serving California residents.
Oracle Misconfiguration Leaves Moonwell With $1.8 Million in Bad Debt
Moonwell incurred roughly $1.8 million in bad debt after an oracle misconfiguration on February 15, 2026, a failure that drained protocol reserves and resurfaced a recurring fragility in DeFi infrastructure. The core issue is that a single pricing error on a key collateral asset can translate directly into solvency damage through automated liquidations.
SBI Holdings Refutes $10 Billion XRP Claim, Confirms 9% Equity Stake in Ripple Labs
SBI Holdings moved in mid-February 2026 to shut down a headline that wouldn’t die: the group said it does not hold $10 billion of XRP, and that its Ripple exposure is equity, not token inventory. CEO Yoshitaka Kitao framed the clarification as a clean separation between owning a stake in a company and warehousing a […]
UK Selects HSBC Orion to Run Digital Gilt Pilot, Testing On‑Chain DvP and Market Transparency
The UK Treasury selected HSBC’s Orion blockchain platform to run the Digital Gilt Instrument (DIGIT) pilot, moving the initiative from policy design into hands-on technical execution. By choosing Orion, the Treasury is locking the pilot into a delivery model that treats distributed-ledger settlement as production-grade market plumbing rather than a theoretical experiment.
New York Prosecutors Said GENIUS Act Undermined Fraud Enforcement for Stablecoin Issuers
New York prosecutors are warning that the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) could unintentionally make it harder to pursue fraud tied to stablecoins. Their core message is that the law’s structure may dilute both criminal and civil remedies for users by leaving enforcement pathways less direct than existing fraud […]
ZachXBT Alleges Son of U.S. Government Crypto Custodian CEO Stole $40M, Spotlighting Custody and Audit Risk
Blockchain investigator ZachXBT published an allegation on claiming an online actor known as “Lick,” identified as John Daghita, siphoned roughly $40 million from wallets tied to U.S. government-held cryptocurrency. The core claim links the suspected theft to wallets associated with seized assets and to a custody-contractor proximity that elevates governance risk.
South Korean Prosecutors Lost ₩70 Billion in Seized Bitcoin After Phishing Compromise
The Gwangju District Prosecutors’ Office confirmed that roughly ₩70 billion (about $48 million) in seized Bitcoin disappeared after a phishing incident compromised the private keys. The loss occurred in mid-2025 but surfaced during a routine inspection in January 2026, triggering an internal probe and active recovery efforts.