South Korea’s Financial Supervisory Service (FSS) announced on Monday that it would begin using a new AI-based surveillance system to combat unfair virtual asset trading. The system, the Virtual Assets Intelligence System for Trading Analysis (VISTA), was developed by the regulator’s Virtual Asset Investigation Bureau.

According to the official announcement, VISTA uses a new sliding window grid search algorithm to automatically spot price manipulation. The upgrade was launched in Seoul to tackle the growing complexity of high-frequency trading and API-based market abuses that have often escaped manual checks.

Using the new system, the FSS hopes to better protect consumers and establish a transparent order in the rapidly changing virtual asset market. This is a major shift from the laborious process of manual checks to high-speed data processing.

Enhanced detection capabilities

The FSS confirmed that the new algorithm can break down suspicious trading periods into sub-second intervals. This allows for a level of analysis that human investigators couldn’t achieve before. The regulator stated that the system has already shown its effectiveness by identifying all suspicious intervals in previously closed cases and even uncovering additional manipulative actions that investigators had previously missed. 

This launch is a key part of the FSS’s larger strategy to incorporate strong computing power, including high-performance GPUs and CPUs, into its daily enforcement activities to keep up with the technical challenges of the cryptocurrency sector.

Evolution of infrastructure

The development builds on the FSS’s earlier efforts to improve its internal Virtual Asset Intelligence System. Since it started, the agency has used Python-based analysis tools to visualize trading patterns and identify unusual transaction indicators. 

However, as unfair trading practices became more advanced and high-frequency, the FSS recognized the need for a more powerful infrastructure. In late 2025, the agency began to prepare for this transition by acquiring high-performance servers to support AI integration and parallel data processing.

Advanced VISTA technology

The updated VISTA platform centers on the sliding window grid search technique. Unlike traditional methods that look at broad snapshots, this approach analyzes every possible sub-segment from time-series data, from fractions of a second to several months. 

Because this method requires extensive computational resources, the FSS has optimized its platform for parallel processing. This allows it to analyze hundreds of thousands of segments at the same time.

In the pilot testing involving five different digital assets, the algorithm either matched or outperformed human investigation efforts, as evidenced by the higher abnormal trading indicators in all test scenarios.

Future AI roadmap

The FSS plans to expand its AI capabilities through a multi-stage roadmap set for completion by the end of 2026. The next phase will involve the development of clustering algorithms to automatically identify groups of suspicious accounts participating in organized price manipulation. 

The regulator also plans to employ Large Language Models (LLMs) to analyze text data from thousands of different virtual assets to identify possible fraud. The final phase will involve the development of a network graph-based tracking system to analyze on-chain data and fund movements, enabling investigators to view connections between suspects and their transactions.

Future global regulation

The FSS is positioning itself as a leader in crypto regulation by moving toward an AI-focused enforcement model. With the automation of the detection of price manipulation, as well as the expansion of services into account clustering and on-chain tracking, the agency believes that it will be able to largely reduce the processing time of cases. 

The FSS said that it will continue to improve its AI-powered investigation system to quickly detect unfair trading. It will take strict actions through thorough investigations to protect users and create a stable market.

Also Read: South Korea Dismantles $102M Crypto Laundering Ring

Newly released emails from the U.S. Department of Justice (DOJ) revealed that Jeffrey Epstein made a $3 million investment in the cryptocurrency exchange Coinbase in December 2014. For the unversed, Epstein, an influential American financier, later became widely known for serious crimes, including sex trafficking of minors. He also had strong ties with people in politics and the technology sector.

The recently released emails reveal that the investment was arranged through Brock Pierce, co-founder of Tether and Blockchain Capital, and that Coinbase co-founder Fred Ehrsam was aware of the arrangement.

In one message dated December 3, 2014, Ehrsam wrote, “I have a gap between noon and 3pm today, but again, not crucial for me, but would be nice to meet him if convenient. Is it important for him?”

Epstein’s Coinbase investment and cash-out

According to the documents, the investment took place in 2014 when Coinbase was valued at $400 million. Today, the exchange is worth about $51 billion. 

In 2018, Epstein sold half of his Coinbase equity back to Blockchain Capital, receiving nearly $15 million, while retaining the other half of his stake. Brock Pierce confirmed the transaction in emails and at one point questioned whether the deal was fully completed, suggesting some confusion over the arrangement.

Epstein also had connections with other cryptocurrency ventures. The emails show he invested in Blockstream, a company co-founded by early Bitcoin developer Adam Back. He also met with prominent figures in tech and finance, including former U.S. Treasury Secretary Larry Summers, at his Manhattan townhouse to discuss Bitcoin. 

Pierce described the Coinbase fundraising round as “the most platinum-plated deal in the space.”

Epstein also asked LinkedIn founder Reid Hoffman for advice on how much he should invest. Hoffman replied, “I probably wouldn’t play. But I may not be up-to-date on interesting internal news.”

Tax concerns and other connections 

Epstein-related filings show he was concerned about cryptocurrency taxation in the United States. In a February 2018 email, he asked former White House advisor Steve Bannon for guidance on how the Treasury Department would respond to crypto-related questions.

Epstein’s involvement in cryptocurrency came after he was convicted in 2008 for procuring a child for prostitution and soliciting a prostitute, making him a registered sex offender at the time of the Coinbase investment. The newly unsealed records highlight his connections to wealthy investors and the early cryptocurrency world, without alleging any criminal wrongdoing in these deals.

Other high-profile figures appear in the email records, including Michael J. Saylor, Executive Chairman of Strategy, who was mentioned in a 2010 email from Hollywood publicist Peggy Siegal. The email described Saylor attending a charity event after giving a $25,000 donation. The records have caused discussions online about Epstein’s influence in the crypto space.

Also Read: XRP Maxis Blame Bitcoiners for Linking Ripple to Epstein Files

On January 27, PayPal and the National Cryptocurrency Association released a joint study showing that 90% of U.S. merchants would start accepting cryptocurrency payments if the user experience and setup process were as simple as using traditional credit cards. 

This demand comes as nearly four out of ten merchants already accept digital assets, encouraged by high interest from younger shoppers. The report shows a change in the retail landscape, where the main barrier to widespread adoption has shifted from a lack of interest to a need for better technical integration.

The biggest myth about crypto payments? That merchants aren’t interested.

The reality: 90% say they’d try it if the setup matched card payments.

The demand is there.
The unlock is making crypto feel familiar at checkout. @NatCryptoAssoc https://t.co/ds3tzVg6ab

— PayPal (@PayPal) February 2, 2026

Rising enterprise adoption

The survey results challenge the common belief that businesses are reluctant to engage with digital currencies. According to the data, 39% of U.S. merchants have already added crypto at checkout.

Adoption reaches 50% among large companies earning over $500 million annually. For those already involved, crypto is no longer just an experiment; it makes up 26% of total sales for participating merchants.

The shift toward digital assets is a direct response to consumer demand. 88% of businesses report receiving customer inquiries about crypto payment options.

Growth tools for accessibility 

May Zabaneh, Vice President and General Manager of Crypto at PayPal, said crypto payments are moving beyond experimentation and into everyday use.

“Adoption is driven by customer demand for faster, more flexible ways to pay. Once businesses start accepting crypto, they see real value,” Zabaneh said. “When crypto payments feel as familiar as cards or online payments, they become an effective growth tool, helping businesses reach new customers and access funds more quickly.” 

“When crypto payments are offered in ways that feel as familiar as cards or online payments, they become a powerful growth tool, helping businesses reach new customers and access funds more quickly,” she added. Small business owners, such as Nikisha Bailey of Win Win Coffee, agree. They state that having flexibility and choice in payment options helps ensure independent businesses can grow alongside their customers.

Evolving industry utility

Cryptocurrency was once seen as a speculative asset rather than a payment method. However, recent years have shown steady growth in merchant usefulness. The report shows that industries like hospitality and travel are leading with an 81% adoption rate, followed closely by digital goods and luxury retail at 76%.

This is led by Millennials and Gen Z, who have expressed a high level of interest at 77% and 73%, respectively. The main drivers for merchants to facilitate the switch-over are faster speeds and new customer acquisition.

Future market normalization

The study suggests that the next five years will see the rapid normalization of digital assets. 84% of merchants predict that crypto payments will become common by 2031. 

For fintech providers, the focus is now on lowering the barrier to entry. Stu Alderoty, President of the National Cryptocurrency Association, explained that interest in crypto isn’t the issue; understanding it is. Alderoty said, “Too many people still don’t see how crypto fits into their everyday lives.”

“That’s why partnerships with trusted platforms like PayPal are so important. We’re working together to help close the knowledge gap and show how crypto can be simple, accessible, and easy for everyday businesses and consumers,” he stated.

Solving the usability gap

The report concludes that the key to moving from current adoption to a crypto-saturated market is usability. While security features and privacy are important selling points for 41% and 40% of merchants, the “final hurdle” is achieving the same ease as traditional financial systems. 

If payment processors can replicate the simplicity of a credit card swipe for digital tokens, the 90% of merchants currently waiting are likely to begin implementation. This would fundamentally change the standard checkout experience for American consumers.

Also Read: USD1 Overtakes PayPal’s PYUSD as Stablecoin Race Heats Up

Hyperliquid, a decentralized exchange, announced the launch of HIP-4, a new protocol that will allow outcome trading on its platform. The feature will let users trade prediction markets and options-like contracts that are fully collateralized and settle within a fixed range.

HyperCore, Hyperliquid’s main trading engine, will support this new mode to expand activity and offer more trading options. The platform plans to offer a safer option for users who want to avoid risky leverage trading.

The launch is currently in the testnet stage, and live markets will come after testing is done. Additionally, HIP-4 will initially use USDH, Hyperliquid’s native stablecoin, to settle trades. Later, it will allow users to freely create new trading pairs without restrictions.

HyperCore will support outcome trading (HIP-4). Outcomes are fully collateralized contracts that settle within a fixed range. They are a general-purpose primitive that are useful for applications such as prediction markets and bounded options-like instruments. There has been…

— Hyperliquid (@HyperliquidX) February 2, 2026

Details of the HIP-4 contracts

The new contracts in HIP-4 will be dated and allow derivative trading without leverage or liquidations. This design makes it less risky than traditional margin trading markets. The outcome contracts are general-purpose primitives, meaning developers can build prediction markets or other options-like instruments on top of HyperCore. 

Hyperliquid plans to offer permissionless deployment at the end stage, allowing new outcome pairs to be created freely by users.

HIP-4 comes after the success of HIP-3, which allowed the quick creation of markets like silver and gold trading on-chain. HIP-3 became highly active in just days and showed that the platform can support fast-growing markets.

HYPE token up 8% in 24 hours

Hyperliquid’s native token, HYPE, was quick to react to the announcement. At the time of writing, the token is trading for $32.29, up 8% in the last 24 hours. In the past week, the token has gained more than 35%, despite the recent overall market crash.

The recent update would likely increase adoption by attracting both leveraged and non-leveraged traders. The platform has already grown in market depth and even competes with Binance in trading volumes, though recent BTC open interest fell to $1.77 billion, with $4.97 billion in total open interest. 

Even after recent market losses, HIP-3 still has more than $1 billion in open interest and $4.8 billion in trading activity.

Since last week, HIP-3 markets reached new all-time highs of $1B in open interest and $4.8B in 24-hour volume. https://t.co/SdOcpcgDO2

— Hyperliquid (@HyperliquidX) February 2, 2026

Hyperliquid is positioning HIP-4 to capture attention in the prediction markets space, which is currently active on other networks. Once the testing phase is complete, the platform will use objective settlement sources to ensure transparent and reliable outcomes.

Also Read: Hyperliquid Slashes Team Payouts 98% to Protect HYPE Floor

A post shared on X on Monday claimed that U.S. President Donald Trump would sign a major Bitcoin and crypto market bill today at 3:30 PM, releasing $3 trillion in liquidity.

However, official government records, statements from key lawmakers, and the congressional calendar show no such event or executive agenda. The rumors may stem from meeting with banks today.

The White House press briefing room and official websites of sponsoring senators show no indication of a signing ceremony. Moreover, the widely circulated $3 trillion liquidity figure has no credible source and does not appear in any proposed legislation.

🚨 BREAKING:

🇺🇸 PRESIDENT TRUMP IS SET TO SIGN THE BITCOIN & CRYPTO MARKET BILL TODAY AT 3:30 PM.

THE LEGISLATION IS EXPECTED TO UNLOCK OVER $3 TRILLION IN LIQUIDITY, POTENTIALLY FLOWING INTO FINANCIAL MARKETS.

MAJOR CATALYST.

EXTREMELY BULLISH FOR CRYPTO. pic.twitter.com/VTvAXVGQKY

— Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) February 2, 2026

What is Crypto Market Bill?

The Crypto Market Bill is a proposed federal framework that aims to clarify whether digital assets fall under the regulation of the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The bill is intended to provide the legal certainty required for institutional banks and large financial markets to invest in blockchain technology.

Recent legislative progress

The speculation comes after legislative action on a number of bills related to the crypto space, such as the Genius Act and the Clarity Act. Although the Trump administration has been showing a more favorable view toward digital assets compared to previous years, moving a bill from the Senate and House floors to the Oval Office requires a clear series of votes and public disclosures.

None of these steps point to a signing scheduled for today, making the “breaking” claims on social media inconsistent from a current parliamentary procedure standpoint. The fact that rumors like these are being spread around indicates the volatility and sensitivity of the crypto market to social media news. If a bill of this magnitude were to be signed, it would result in a more organized regulatory framework for exchanges. 

Risk of market manipulation

Traders may act on these claims only to suffer losses when the projected event does not happen. Investors should proceed with caution, as misinformation campaigns often target retail investors during times of high market anticipation.

As the industry waits for federal oversight, investors should rely on official government websites and verified news outlets instead of anonymous social media claims. As of this afternoon, no Bitcoin-related legislation has been added to the executive agenda for immediate action.

Also Read: Why Trump is Taking His Own Government to the Court

Shiba Inu (SHIB), one of the well-known meme cryptocurrencies, saw its price fall sharply during the weekend market sell-off after Bitcoin (BTC) dropped below $80,000 for the first time since April 2025.

The market crash caused panic across the market, and SHIB was one of the coins hit the most. Its price fell to $0.00000616, which is the lowest level it has seen since June 2023. After that, it made a small recovery and now trades for $0.0000069, up about 5% from the previous day. Trading volume also fell, sliding about 22% to roughly $167 million in volume in the last 24 hours.

SHIB falls as traders panic sell

The drop came during a period of weak sentiment across the crypto space. In recent months, many traders have closed their positions with meme coins facing heavy selling pressure. In fact, SHIB has lost more than 9.49% over the past seven days.

Liquidations also added to the decline. According to Coinglass, around $196,390 in long positions were wiped out in 24 hours as traders betting on a price going up were forced to sell. Futures trading volume fell 18% to around $221 million, while open interest surged 6% to $76.56 million. In short, there are mixed expectations among traders at the moment.

Burn activity slows sharply

Another major issue has been the slowdown in SHIB’s burn activity. Burning means sending tokens to dead wallets so they are removed from circulation. This is believed to create scarcity for the token, which could drive the price up.

Shibburn, a tracker that monitors the token’s burns, reported that on January 31, zero SHIB was sent to dead wallets, meaning no supply was removed. This was surprising because just two days earlier, the burn rate jumped over 500%. However, the burn rate has increased by 480% in the last 24 hours.

A single transaction alone removed 1,887,367 SHIB tokens, briefly giving investors some hope for stronger deflationary pressure. However, SHIB still has a huge supply. More than 585 trillion tokens are still in circulation, and trillions more are locked in staking.

Another concern is the drop in activity on Shibarium, the layer-2 network linked to Shiba Inu. According to DeFiLlama, Shibarium’s Total Value Locked (TVL) has dropped to about $393,000, the lowest level ever recorded. This is a steep fall from a peak of more than $6 million in December 2024, showing a decline of over 41% in the last 24 hours and about 93% in just over a year.

Lower TVL often points to reduced user activity and less capital flowing through the network.

SHIB taps 2023 support: can it recover?

SHIB is now trading in a price zone that previously acted as support before its rise in late 2023. This is also its lowest support level since 2021. The current price is showing the daily candle rejecting off the support level. 

A solid bullish candle close above the level could spark a rally. Moreover, the 4-hour time frame also displayed multiple rejections, followed by an engulfing candle, suggesting a bullish move. Additionally, the Relative Strength Index (RSI) is currently at 40, while the moving average is at 36. This means the bears are still in control of the market.

In short, Shiba Inu may continue to face bearish pressure if the current price sentiment does not shift to bullish. A break below the current support zone could lead to a downtrend that could be hard to recover from.

Also Read: BitMine Boosts Treasury With 41,000+ ETH as Ethereum Prices Drop

Strategy Inc., a Bitcoin (BTC) treasury firm, announced that it expanded its digital asset treasury by purchasing an additional 855 BTC for about $75.3 million. The acquisition, disclosed on Monday, took place between January 26 and February 1 at an average price of $87,974 per coin.

The purchase was funded through the sale of shares in the company’s at-the-market (ATM) offering program. This maintains Strategy’s position as the largest corporate holder of Bitcoin. The move continues the firm’s strategy despite the recent market drop, where BTC plummeted from its 2025 highs to briefly touch levels below $76,000.

Strategy has acquired 855 BTC for ~$75.3 million at ~$87,974 per bitcoin. As of 2/1/2026, we hodl 713,502 $BTC acquired for ~$54.26 billion at ~$76,052 per bitcoin. $MSTR $STRC https://t.co/tYTGMwPPUF

— Michael Saylor (@saylor) February 2, 2026

The acquisition comes at a time of extreme market volatility. On January 30, Strategy Inc.’s stock experienced an 11% drawdown as Bitcoin fell below the $85,000 level, which shows the correlation between the company’s stock and the asset.

Coin basis update

As of February 1, Strategy Inc.’s total holdings reached 713,502 BTC, which represents an investment of roughly $54.26 billion. The average price comes to $76,052 per BTC. 

In its latest filing, the company reported generating $106.1 million in net proceeds by selling 673,527 shares of its Class A common stock to fund these new purchases.

In addition to common stock sales, Strategy Inc. manages several classes of preferred stock, including its Series A Perpetual Stretch Preferred Stock. The company recently raised the dividend rate for this particular security to 11.25% per year, effective February 1. 

The change suggests the company is encouraging traditional investment to support its ongoing digital asset purchases while still having a significant amount of “available for issuance” capacity across its different types of securities.

Recent purchases 

Strategy Inc. has continued its accumulation of Bitcoin in recent weeks. On January 20, the company surpassed 700,000 BTC in total holdings with a purchase of $2.13 billion. A week later, on January 27, it announced the acquisition of another 2,932 Bitcoin for $264 million. These successive large-scale acquisitions point to a period of heightened activity for the company.

Similarly, OranjeBTC, a Brazil-based Bitcoin treasury company, announced that it has continued its Bitcoin accumulation strategy. The firm has updated its reserves to 3,722.3 BTC, with a portfolio composition of around 43,604 shares per bitcoin.

🇧🇷 Nesta semana, a OranjeBTC retomou a execução de operações estruturadas voltadas à recompra de ações, mantendo disciplina na alocação de capital.

Números atualizados:
• 3.722,3 BTC em reservas
• Ações por Bitcoin: 43.604
• BTC Yield 1T26: 0,11%
• BTC Yield acumulado: 2,50%… pic.twitter.com/OEoVaxzPFF

— OranjeBTC (@ORANJEBTC) February 2, 2026

These numbers make a cumulative BTC yield of 2.50%, with the company posting a Q1 26 yield of 0.11% as of early February. This simultaneous activity shows a general market trend in which Bitcoin-related companies are utilizing the market crash to their advantage, like Strategy Inc. 

Bitcoin price update

At the time of writing, Bitcoin is trading at $77,893, reflecting a decline of approximately 0.43% over 24 hours. The total market capitalization stands at $1.55 trillion, representing a 0.5% decline. The circulating supply remains at 19.98 million BTC out of the total 21 million BTC. 

Strategy Inc. currently owns about 3.4% of the overall Bitcoin supply.

The firm’s filings show it has billions of dollars left for future stock issuances. Specifically, over $8 billion remains in its common stock ATM program, while over $20 billion is available for its 8.00% Series A Perpetual Strike Preferred Stock. This shows that the firm will continue its buying spree despite the price fluctuations in the crypto market.

Also Read: Bitcoin Drops 7%: $1.7B Liquidated as Markets Panic Over Potential Fed Pick

Bitmine Immersion Technologies, Inc., an Ethereum (ETH) treasury firm, purchased 41,788 ETH last week amid the recent price decline. The company now holds around 4,285,125 ETH, worth $10.1 billion at the current price.

This represents roughly 3.55% of the total ETH supply, making Bitmine the largest Ethereum treasury in the world and the second largest crypto treasury overall, after MicroStrategy. 

Additionally, the firm holds 193 Bitcoin (BTC), about $586 million in cash, a $200 million stake in Beast Industries, and a $20 million stake in Eightco Holding, according to an update released on Monday.

The purchase comes as Ethereum faces selling pressure. The price dropped sharply over the weekend, falling below $2,500 and briefly touching $2,187 before bouncing back. Currently, ETH is trading at $2,374, up 3.05% in the last 24 hours but down 17.79% in the last seven days.

Previous Ethereum purchases and rewards

Earlier, on January 21, Bitmine purchased 35,228 ETH, which was after another 24,266 ETH from a week before its annual shareholder meeting on January 15.

The company has also staked 2,897,459 ETH, worth about $6.7 billion, generating annual staking revenue of around $188 million.

Once Bitmine’s Made in America Validator Network (MAVAN) becomes fully operational in early 2026, staking rewards could reach $374 million per year (using 2.81% CESR), which is equal to more than $1 million per day.

“This will be the ‘best-in-class’ solution offering secure staking infrastructure and will be deployed in early calendar 2026. Bitmine is currently working with 3 staking providers as the Company moves towards unveiling MAVAN in 2026,” Lee said.

Bitmine’s stock activity 

Bitmine (BMNR) is currently trading at $23.80, about a 6% drop in the last 24 hours, according to Yahoo Finance. The company said it ranks #105 among all U.S.-listed stocks by average daily trading dollar volume, with around $1.1 billion traded daily over the last five days, which places it ahead of many established companies. 

In its press release, the company highlighted that the changes in U.S. regulation, including the passing of the GENIUS Act and the SEC’s Project Crypto, could help digital assets become more widely used in finance.

Sitting on $6.6 billion in unrealized losses

As of the last week of January, Bitmine’s total holdings were worth about $12.8 billion combined. However, the recent market crash has reduced the value of its Ethereum holding, leaving the firm with an estimated unrealized loss of about $6.6 billion.

🚨New: Tom Lee’s ( @fundstrat ) Ethereum treasury company BitMine ($BMNR) is sitting on about $6.6 billion in unrealized ETH losses, putting it on track to become the fifth largest documented principal trading loss in history if the position is sold. pic.twitter.com/2ELqO5eA0R

— SolanaFloor (@SolanaFloor) February 2, 2026

Chairman Thomas “Tom” Lee mentioned this in the press release, noting, “ETH prices have dropped sharply in the past month from approximately $3,000 to approximately $2,300.” However, he added that Ethereum activity is strong, with 2.5 million daily transactions and 1 million active addresses per day.

Lee said the company believes the cryptocurrency is essential for the future of finance. With MAVAN and its growing treasury, Bitmine is positioning itself as a major player in the crypto and digital finance world.

Also Read: Ethereum To Rollout ERC-8004 On Mainnet To Empower AI Agents

Three powerful forces are connected with each other: foreign money, a Trump-linked crypto venture, and U.S. control over advanced AI technology. Just days before Donald Trump returned to the White House in January 2025, an Abu Dhabi–based investment vehicle quietly made a massive move.

According to WSJ report, entities controlled by Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan—one of the most influential figures in the UAE & the country’s national security adviser—signed a deal to purchase a 49% stake in the Trump family’s cryptocurrency venture, World Liberty Financial (WLF).

The $500 million agreement—which saw $187 million flow directly to Trump family entities—coincided with the UAE’s successful lobbying for access to highly restricted U.S. artificial intelligence chips.

The “Spy Sheikh” and the Half-Billion Dollar Stake

Sheikh Tahnoon, often referred to as the “Spy Sheikh” due to his role as the UAE’s National Security Adviser, oversees a $1.3 trillion empire that includes the AI firm G42 and the investment powerhouse MGX.

Roughly half of the investment was paid immediately, from that upfront payment, approximately $187 million to Trump family-linked entities, with additional millions tied to families of other co-founders.

$31 million was slated for entities tied to Steve Witkoff, Trump’s Middle East envoy and WLF co-founder. Executives tied to the Sheikh’s tech empire took board positions inside the crypto company. Two top executives from Tahnoon’s G42, including CEO Peng Xiao, reportedly joined WLF’s five-person board alongside Eric Trump and Zach Witkoff. In effect, the Emirati-backed group became the largest outside owner of the project.

A “Coup” for UAE: Chips for Crypto?

The timing of the investment has raised significant questions regarding potential conflicts of interest and national security. For years, the U.S. had blocked the UAE’s access to advanced AI chips over fears of technology leakage to China—specifically through Tahnoon’s G42.

Two months after, in March, the WLF deal was signed, Tahnoon met with President Trump and Steve Witkoff at the White House. In May 2025, the Trump administration committed to providing the UAE with 500,000 advanced AI chips annually—enough to build one of the world’s largest AI clusters.

Shortly before the chip deal, WLF CEO Zach Witkoff announced that Tahnoon’s MGX would use WLF’s stablecoin to facilitate a $2 billion investment into the Binance exchange.

“Ridiculous and Un-American”: The Defense

World Liberty Financial and the White House have vehemently denied any wrongdoing or policy influence.

Spokesman David Wachsman defended the investment, stating, “The idea that, when raising capital, a privately held American company should be held to some unique standard that no other similar company would be held is both ridiculous and un-American.”

White House spokespeople emphasized that President Trump’s assets are in a trust managed by his children and that Steve Witkoff has divested from World Liberty Financial to avoid conflicts with his role as envoy.

Sources close to Tahnoon claim the investment was a “business decision” and was never discussed directly with President Trump during the due diligence process.

The deal marks the first known instance of a foreign government official taking a nearly half-ownership stake in a sitting U.S. President’s private company. While the Trump Organization has long courted international real estate deals, the integration of sovereign wealth, national security policy (AI chips), and decentralized finance (WLF) represents a new frontier in political-financial entanglements.

How Power Moves In Modern Economy?

First, large investments in digital assets are no longer just speculative bets — they can shape financial systems, create new forms of money, and influence how countries and companies move capital across borders.

Second, AI chips have become one of the most valuable resources in the world. These chips are essential for building advanced artificial intelligence.

Third, foreign money is now deeply connected to government decision-making. When powerful oversea investors are involved in companies linked to political figures, business decisions and public policy can appear closely intertwined – even if no laws ar broken.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

As newly unsealed records released by the U.S. Department of Justice began circulating online, familiar names from politics, finance, and high society once again drew attention in connection with the Jeffrey Epstein case. 

This time, however, online discussion turned toward the crypto sector, after a billionaire linked to digital assets appeared in a decades-old private email included in the DOJ release. 

The reference contains no allegations or criminal claims, but it has been enough to spark curiosity and debate on social media. 

So who is the crypto billionaire whose name has surfaced in the Epstein files? This article looks at the documents and explains who the individual is, and what the records actually show.

Michael J. Saylor, Executive Chairman of Strategy (formerly MicroStrategy) and one of the most visible corporate advocates of Bitcoin, has been referenced in documents released by the United States Department of Justice (DOJ) as part of the latest unsealing of records connected to the late financier Jeffrey Epstein.

The documents, released publicly on January 31, 2026, include a private email dated May 8, 2010. The email was written by Hollywood publicist Peggy Siegal and references a New York charity gala attended by individuals from the film, fashion, finance, and media industries. Michael Saylor is mentioned in relation to a donation made in order to attend the event.

The documents do not make any allegations of criminal wrongdoing against Saylor, nor do they link him to Jeffrey Epstein’s later criminal cases. His mention is limited to a short social interaction described by a third party in private correspondence.

The source of the reference

Saylor’s name appears in a detailed email written by Peggy Siegal, a Hollywood publicist known for arranging high-profile fundraising dinners and managing relationships with wealthy donors and public figures. The email was circulated privately in 2010 and later became part of the materials reviewed and released by U.S. authorities.

In the email, Siegal describes Saylor’s attendance at the event following a $25,000 donation. She wrote: “Michael Saylor giving $25,000 for food and the opportunity to get his name on invite and meet a hip group. Saylor is a complete creep. He has no personality. Sort of like a zombie on a drug.”

She further described her personal experience interacting with him, stating: “I walked him around and he was so weird that even I ran away from him. There is an obvious personal disconnect and I don’t think I can just take his money and deliver a better life because he has no feel for social behavior.”

The remarks in the email represent Siegal’s personal views and social impressions. The correspondence does not include any claims of illegal activity, financial wrongdoing, or behavior connected to Epstein’s criminal actions.

Details of the 2010 charity event

The email refers to a charity gala linked to the Independent Filmmaker Project, hosted at the New York studio of fashion designer Diane von Furstenberg. According to the email, the event was attended by individuals from the entertainment, media, and finance sectors and was organized as a fundraising and networking gathering.

According to the email, Saylor’s involvement was limited to making a donation and attending the event. There is no indication in the released documents that he maintained ongoing contact with Epstein, participated in Epstein’s inner social circle, or engaged in further events tied to Epstein.

No allegations or evidence of wrongdoing

The U.S. Department of Justice (DOJ) has clarified that the unsealed Epstein-related records include a mix of verified documents and uncorroborated third-party statements. The appearance of an individual’s name in the materials does not imply criminal wrongdoing.

In Saylor’s case, the documents contain:

• No allegations of illegal conduct
• No claims of involvement in Epstein’s criminal activity
• No evidence of sustained personal or financial ties to Epstein

Authorities have also confirmed that the Epstein files contain no references to cryptocurrency usage, blockchain transactions, or digital asset wallets associated with Epstein or individuals named in the documents.

Public circulation on X

Following the release of the documents, excerpts from Siegal’s 2010 email circulated widely on X. The material was shared by several high-profile accounts, including the technology-focused account TechFlow (@TechFlowPost).

Online discussion has largely focused on the way the email described Saylor as socially detached, rather than as someone integrated into Epstein’s social network. Many posts pointed to the critical tone of the description to suggest that Saylor did not become part of the elite social circles linked to Epstein at that time.

While opinions online have differed, the underlying source material reflects only a short and unproductive social encounter, as characterized by Siegal.

Contrast with Saylor’s present-day profile

More than a decade after the 2010 event, Michael Saylor is best known for his singular focus on Bitcoin rather than elite social networking.

Under his leadership, Strategy, earlier operating as MicroStrategy Incorporated (MSTR), has accumulated over 700,000 bitcoin (BTC), making it the largest publicly traded corporate holder of the digital asset. 

In public interviews, conference appearances, and posts shared on X, Michael Saylor has described Bitcoin as “digital property,” “a superior form of capital,” and “the apex monetary asset.” 

He has repeatedly spoken about Bitcoin in the context of monetary theory, technology, and capital preservation, and has publicly positioned it as a long-term treasury reserve asset.

Following the release of the Epstein-related documents, online attention has focused on the contrast between how Saylor was portrayed in Peggy Siegal’s 2010 email and his public-facing image today. This contrast has been widely discussed across posts and commentary on X. 

In several public forums, Saylor has stated that he has “no interest in social status games” and that his focus remains on “long-duration capital preservation through Bitcoin.”

The crypto context and what the documents indicate based on public information

Saylor’s name appearing in the Epstein-related files has coincided with his prominence in the global cryptocurrency space. He currently serves as Executive Chairman of Strategy and is frequently referenced in online discussions for his publicly stated views on institutional Bitcoin adoption, corporate treasury allocation, and long-term holding strategies, based on statements he has made publicly over time.

In multiple publicly available statements, Saylor has said that Bitcoin is “not a trade,” “not a hedge,” but “a strategy,” describing it as a long-term balance sheet asset rather than a short-term speculative instrument.

What the documents ultimately establish

The Epstein-related records demonstrate that Epstein maintained contact, direct or indirect, with a wide range of influential figures across finance, technology, politics, and entertainment.

In Michael Saylor’s case, the documentation is limited to a single email describing a one-time social encounter at a charity event. The records show no evidence of continued association, collaboration, or personal relationship beyond that setting.

As with other names appearing in the unsealed materials, Saylor’s inclusion reflects proximity, not implication. The documents provide historical context without making claims or conclusions about wrongdoing.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

The blockchain-based enterprise solution provider, Ripple, has secured full approval for its Electronic Money Institution (EMI) license in Luxembourg. The Commission de Surveillance du Secteur Financier (CSSF) granted Ripple complete authorization after the company fulfilled all regulatory conditions. 

This approval comes just weeks after Ripple received preliminary approval. With the approval, Ripple now has a stronger presence in Europe’s financial landscape. The full EMI license allows it to offer fully regulated payment services and issue electronic money across the European Union. 

Cassie Craddock, Managing Director for UK & Europe at Ripple, said, “Securing our full EMI license in the EU is a transformative milestone that reinforces Ripple’s presence at the heart of European finance.”

She added that this approval lets Ripple expand its blockchain services across Europe more effectively. As a result, Ripple can make digital payments faster and help traditional businesses adopt blockchain technology more easily.

Expansion across Europe and global licensing

Ripple’s new EU license adds to its growing regulatory progress. Last month, its UK branch was approved as an authorized Electronic Money Institution and crypto firm under the FCA’s anti-money laundering rules. This means Ripple can issue e-money and run regulated payment services across the UK. Moreover, it lets Ripple Payments, the company’s platform for cross-border transfers, grow in Europe, making international payments faster and more transparent for banks and payment providers.

Around the world, Ripple now has more than 75 regulatory licenses, making it one of the most heavily licensed crypto companies. Very few competitors have this level of approval. These licenses let Ripple grow its services for businesses while staying fully compliant with regulations. They also give banks and other institutions more confidence to use Ripple’s blockchain technology to modernize older financial systems.

Regulatory context and compliance requirements

In Luxembourg, a company has to be authorized by the CSSF if it wants to provide payment services or issue electronic money. Ripple has just obtained a new license, which means it complies with all the requirements of the Payment Services Law. 

Although some payment services are exempt from some of the requirements, the license obtained by Ripple proves that it complies with all the reporting requirements. With a license in the EU and another in the UK, Ripple can now operate in Europe.

In the past, Ripple has had issues with regulators, such as a long legal case with the US Securities and Exchange Commission. The case involved disagreements over the sale of XRP until both parties agreed to drop their appeals in August 2025. In 2023, a court ruled in favor of Ripple, with Judge Torres stating that XRP is not a security when sold to the public. This gives the company more credibility in Europe and across the world, thanks to its licenses.

Following the approval, Ripples’ native token XRP’s current price sits at $1.62, with a 24-hour trading volume exceeding $5.48 billion as per CoinMarketCap. This reflects ongoing market engagement despite a minor 1% dip.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Ethereum co-founder Vitalik Buterin is pushing a radical shift in on-chain governance that could redefine decentralized decision-making. In a detailed post on X, he outlined a two-layer approach designed to combine accountability with pluralistic preference-setting. 

Vitalik was replying to an X post by MilliΞ who said Vitalik’s creator platform idea may look complex, but it points in the right direction. He argued that social platforms favor popularity over quality, creating an opportunity for alternative systems that reward meaningful content creation instead.

I actually don't think it's complicated.

IMO the future of onchain mechanism design is mostly going to fit into one pattern:

[something that looks like a prediction market] -> [something that looks like a capture-resistant, non-financialized preference-setting gadget]

In other… https://t.co/VutSyEI8Fd

— vitalik.eth (@VitalikButerin) February 2, 2026

According to Buterin, current DAO setups don’t really solve political or social coordination issues and often let big token holders call the shots. His idea is a two-layer system: one layer works like a prediction market to keep people accountable, while the second layer protects different opinions and personal motivation.

He suggests that the first layer needs to be fully open, where everyone is allowed to join, winning or losing money based on their decisions. This ensures that the system is transparent and accountable. For the second layer, diversity and anonymity are important, reducing the influence of token holders and the risks of collusion.

“Votes here should be anonymous, ideally MACI’d to reduce risk of collusion,” he wrote. He emphasized that this system separates execution from preference-setting, creating a clearer, more resilient governance structure.

Rethinking DAOs

Buterin’s post comes at a time when many people are frustrated with token-based DAOs. However, nowadays most of these DAOs behave like a shared wallet in which a few large holders are in control. Therefore, they do not really live up to the original concept of a DAO. This concept is about collective decision-making for better resource management.

He said, “We need DAOs,” stressing that improved versions are essential for Ethereum’s future. Buterin believes new DAOs should focus on practical tools like oracles, dispute resolution, and managing shared resources, instead of relying on broad token-based voting.

Oracles, for instance, give important real-world data to DeFi apps, stablecoins, and prediction markets. Buterin warned, “Fundamentally, a token-based oracle cannot have a cost of attack higher than its market cap.” He also pointed out that DAOs can help keep long-term projects running, even after the original teams move on. Moreover, DAOs could make it easier to fund short-term projects quickly and help resolve disputes in complex areas like insurance.

Also Read: DAOs Wanted to Kill Corporations—Now They’re Killing Themselves

Privacy, security, and long-term goals

Buterin’s ideas fit with his bigger focus on privacy and giving users more control. He recently withdrew 16,384 ETH to support secure and verifiable technology, emphasizing that Ethereum should put people first instead of chasing corporate-style growth. “Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” he wrote. He also urges developers to concentrate on privacy, resisting censorship, and keeping systems open, rather than chasing quick growth.

Ethereum has also made significant technical advancements in 2025, such as zkEVMs and PeerDAS, making it faster and more efficient. According to Buterin, this has paved the way for more intelligent systems of governance. Zero-knowledge principles, with artificial intelligence-based filters and convex models of governance, will result in stronger and more inclusive DAOs.

Industry comparisons

Some industry observers, like SasuRobert, note similarities between Buterin’s proposals and MultiversX’s existing architecture. Multi-layer staking, adaptive sharding, and distributed validators already implement features like secure randomness and near-instant finality. 

When reading this, I am quite happy. Most of the proposals from Vitalik’s post is similar if not exactly the same as we have already implemented on the #MultiversX chain.

Multi-layer staking/delegation is built directly on-chain. Distributed Validators do exist, built by… https://t.co/GYgO5et9X8

— Robert Sasu | dev/acc (@SasuRobert) December 29, 2023

SasuRobert said, “Now, when you see adaptive sharding, increasing/growing validators as the demand increases, it means everyone will have a place to stake/delegate/validate.” This suggests Ethereum’s future governance model could align with existing innovations in other chains.

Also Read: Latest Crypto Crash is Liquidity Squeeze, Not Fundamentals: Raoul Pal

Solana-based decentralized exchange aggregator Jupiter is making a strategic push beyond token swaps and positioning itself as a central hub for prediction markets through a new integration with Polymarket.

Jupiter announced in a post on X that it has integrated the world’s largest decentralized prediction market, Polymarket, directly into its platform, launching a built-in “Prediction” feature with the Jupiter app. The update allows users to trade polymarkets event based contracts directly with Jupiter, marking a significant step in expanding Solana’s DeFi use cases beyond traditional spot trading.

For the first time, @Polymarket is coming to Solana. On Jupiter.

Integrating Polymarket is primed for making Jupiter the most innovative predictions platform on Solana

Trade all the markets you want. On one onchain platform.

The best user-experience on Solana 🤝

The biggest… pic.twitter.com/lSpxZ93SaK

— Jupiter (@JupiterExchange) February 1, 2026

“Integrating Polymarket is primed for making Jupiter the most innovative predictions platform on Solana,” the exchange said by highlighting its ambition to become a one-stop destination for onchain trading and event-based prediction markets.  

Jupiter expands beyond swaps

The move signals a broader shift in Jupiter’s strategy. Long known as Solana’s leading DEX aggregator jupiter is now developing into multi-product DeFi platforms, blending liquidity aggregation with emerging financial primitives like prediction markets.

The integration removes the need for stablecoin bridging or switching between multiple apps, streamlining the user experience.

This approach positions Jupiter as a gateway for users looking to speculate on real-world outcomes using blockchain-based markets without difficulty. Jupiter co-founder Meow revealed that “Jupiter Predict” will be a core focus for 2026, with plans to launch robust prediction market APIs and advanced market discovery tools.

Golden Age of Prediction Market

The partnership comes as prediction markets enter a “golden age” of volume and mainstream adoption. In January 2026 alone, Polymarket recorded $7.66 billion in trading volume, while its rival Kalshi saw $9.16 billion.

This momentum is being mirrored across the industry:

• Coinbase recently rolled out Kalshi-powered prediction markets to users in all 50 U.S. states.
• Polymarket secured an exclusive, multi-year sports licensing agreement with Major League Soccer (MLS) last month.

With a Total Value Locked (TVL) of approximately $2.35 billion and annualized protocol revenue nearing $150 million, Jupiter is leveraging its massive footprint to turn prediction markets into a core pillar of the Solana DeFi ecosystem.

Solana’s role in event-based trading

The integration also underscores Solana’s growing appeal for high-frequency and event-driven markets. With low transition fees and fast settlement time, the network offers a technical advantage for prediction markets that require rapid price updates and frequent traders. 

Jupiter’s Polymarket integration highlights how DeFi native platforms are racing to capture the expanding sector. Last week, The Crypto Times highlighted the growing regulatory uncertainty surrounding U.S. prediction markets. The CFTC is resetting its regulatory to prediction markets, aiming to create clearer federal rules for Polymarket and Kalshi platforms as the sector rapidly grows. 

The move comes amid rising legal clashes with states, increased trading volumes, and growing scrutiny from regulators and lawmakers as prediction markets expand into mainstream finance.   

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Bitcoin fell sharply to $75,000 range on February 2, 2026, triggering one of the largest single-day losses in the past few years. The sharp decline erased over 10% from recent highs, pushing the asset below $80,000 for the first time since April 2025. 

As of writing, according to CoinMarketCap, the price of Bitcoin is trading at $75,413.39, with a volume of $65.9 billion in 24 hours. This has led to a sudden fall in the market wiping out $510 billion in just a week. Altcoins took even bigger hits, as many leveraged traders betting on Bitcoin’s rise were forced to sell. 

The fall in Bitcoin price follows another country-wide shutdown in the U.S. while the crypto failed to hold its support level of $82,500. Once it slipped through that level, BTC started to fall through the thin liquidity zones quickly. 

Massive liquidations hit crypto markets

As per the Coinglass data, there have been almost $800 million in liquidations in 24 hours, adding to the collective liquidations nearing $3 billion in the past three days. 

In the past 24 hours, Ethereum was at the forefront of liquidations with $293.6 million wiped out from ETH leverage markets, followed by Bitcoin with $267 million. Other altcoins like Solana, XRP, DOGE and various other also experienced the same fate. 

Altcoins and broader market trends

Other major cryptocurrencies also moved noticeably. CoinMarketCap data shows Ethereum trading at $2,222.61, up slightly by 1.6% in the short term but down 20% over the past week. 

Binance Coin (BNB) trades at $747.44, XRP at $1.58, and Solana (SOL) at $100.60, all of which have fallen in double digits from their January highs. 

The total crypto market cap plunged from $3.05 trillion to $2.54 trillion in just a week, highlighting the scale of the sell-off. As of now, the market sits at $2.57 trillion, down 3% in a single day, while daily trading activity has dropped nearly 9% to $174 billion. Investor fear is running high, with the Fear and Greed Index hitting just 15, signaling extreme caution across the market.

The short-term chart also shows Bitcoin firmly under pressure. According to TradingView data on the 4-hour chart, the price slid from the mid-$90,000s to the mid-$70,000s, confirming a bearish trend. 

Bollinger Bands are expanding downward, indicating rising volatility, while RSI is deep in oversold territory below 30. For context, Bollinger Bands show how much a price is moving up or down, while RSI signals if an asset is overbought or oversold.

It is worth noting that key catalysts for the crash include the partial U.S. government shutdown, trade-war headlines, rising long-dated Japanese government bond yields, and geopolitical tensions, including the ongoing war in Iran and brewing friction in the South China Sea.

Market Leaders Weigh In

Plan C, a crypto analyst on X, noted, “$75,000–$80,000 is a 37% to 40% correction. This could be the deepest pullback in this Bitcoin bull run.” The analyst, however, noted that 35%-40% corrections are historically not unheard of for a Bitcoin bull run. 

$75,000–$80,000 is a 37% to 40% correction.

Decent chance this will be the deepest pullback opportunity this Bitcoin bull run.

This is my personal opinion, not financial advice.

— Plan C (@TheRealPlanC) January 31, 2026

He also noted that the Binance ‘glitch’ black swan, occurred on October 10, “brought us down much lower than we would have gone otherwise.”

In one of his recent analyses, Raoul Pal, the founder and CEO of Global Macro Investor (GMI), explained that this crash has nothing to do with fundamentals but it’s a pure ‘liquidity squeeze.’ “That factor is that US liquidity has been held back due to the 2 shutdowns and issues with US plumbing,” Pal notes. 

Bitcoin’s recent drop shows how risky the market can be when people borrow to trade. Short-term traders face big losses, but those holding for the long run are distant to such serious danger. For patient investors, this dip could even be a chance to buy at lower prices. 

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

The global cryptocurrency market shed nearly $300 billion in total market capitalization over the weekend, amid a broader market crash. This multi-billion-dollar vanish has triggered fresh debate over whether the downturn signals deeper structural problems in digital assets. 

However, Raoul Pal, founder and CEO of Global Macro Investor (GMI), argues the sell-off has little to do with crypto fundamentals and more to do with a temporary shortage of U.S. dollar liquidity. 

In a post shared on X on Sunday, Pal pushed back against what he described as a growing narrative that “Bitcoin and crypto are broken” and that the market cycle has ended. 

https://t.co/M5mLAi3XLA

— Raoul Pal (@RaoulGMI) February 1, 2026

According to Pal, recent price action points to a broader macro-driven issue rather than a sector-specific failure. 

Bitcoin and SaaS stocks move together

Pal highlighted a key observation: Bitcoin and Software-as-a-Service (SaaS) stocks have been falling almost in lockstep. This is notable because the two asset classes are fundamentally different, yet both are considered “long-duration assets,” as their valuations depend heavily on future growth expectations.

“What I found destroyed both the BTC narrative and the SaaS narrative,” Pal said. “SaaS and BTC are the exact same chart.”

Bitcoin recently dropped toward the mid-$75,000 range, while several high-growth technology stocks also saw sharp declines. Pal argued that when unrelated assets fall together, it often signals a common macro driver, rather than isolated problems within each market. 

Liquidity drain, not crypto-specific stress

According to Pal, the main pressure point has been U.S. liquidity tightening, worsened by repeated government shutdowns and structural issues in the Treasury market. He pointed to the depletion of the Federal Reserve’s Reverse Repo Facility (RRP), a place where institutions park excess cash overnight, as a key factor. 

In earlier years, when the U.S. Treasury rebuilt its Treasury General Account (TGA), liquidity drains were offset by money flowing out of the RRP. That buffer is now largely gone.

“With no offset available, TGA rebuilds have become pure liquidity drains,” Pal explained.

He also said that a strong rally in gold absorbed much of the remaining marginal liquidity, leaving riskier assets like crypto and growth stocks more exposed.

Fed leadership concerns and market reaction

Some market participants have linked the crypto decline to speculation around Kevin Warsh, reportedly under consideration for a senior Federal Reserve role. Jeff Mei, chief operating officer at crypto exchange BTSE, said investors fear Warsh could maintain a tougher stance on inflation and rate cuts.

Pal rejected that view, calling it a “false narrative.” He argued that Warsh is more likely to follow a Greenspan-era approach, allowing the economy to run hot while relying on productivity gains, particularly from artificial intelligence, to manage inflation.

“Warsh will cut rates and do nothing else,” Pal said, adding that broader liquidity decisions would likely be driven through fiscal and banking channels.

Why this matters for markets

The episode highlights how macro liquidity conditions continue to dominate crypto price action, even as the industry matures. Similar liquidity-driven sell-offs occurred in 2022, when aggressive Federal Reserve tightening triggered sharp declines across both digital assets and technology stocks.

Pal believes the current liquidity headwinds are temporary and expects conditions to improve once the latest U.S. government shutdown is resolved. However, he acknowledged that timing remains uncertain and volatility may persist. “Often in these cycles, time matters more than price,” he said.

For now, the market downturn appears less about crypto’s long-term viability and more about short-term liquidity stress, reinforcing the growing link between digital assets and global macroeconomic forces.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Nomura, Japan’s largest wealth manager, is tightening its crypto exposure after its European trading arm faced losses in the third quarter of 2025. The firm manages around ¥153 trillion in client assets and holds 15% of the domestic wealth management market.  

According to Bloomberg Japan, Nomura’s Chief Financial Officer Hiroyuki Moriuchi confirmed the company “reduced its positions in cryptocurrencies” to curb short-term volatility in profits. Despite this, the firm emphasizes its long-term commitment to digital assets and plans to expand crypto operations gradually.

The risk reduction affects Nomura’s Europe-based crypto subsidiary, Laser Digital Holdings, which handles trading and custody services. “We have tightened our management of positions, as well as risk exposure,” Moriuchi said, noting that the move balances caution with growth ambitions. 

Nomura launched Laser Digital in Switzerland in September 2022 to focus on cryptocurrency trading and venture capital. The arm reportedly lost around ¥10.6 billion (approximately $70–75 million) in Q3 2025.

Reducing risk amid volatility

Nomura is cutting back on crypto as markets swing wildly. Japanese companies have long been eager to invest in Bitcoin and other digital assets, but the recent turmoil in the market shows how risky it all can be. 

By scaling back, Nomura is playing it safe while still keeping room to grow in the future. Besides protecting itself from big losses, the move also helps the firm follow new rules and keep client funds safer during sudden market swings. 

Laser Digital has also applied for a U.S. federal banking license, which would let it provide crypto custody and trading services across the country. This shows that Nomura wants to grow carefully, expanding its reach while keeping risks in check. With the license, the firm can attract U.S. clients and still maintain strict control over its operations. 

Broader market drawdown

Nomura’s decision likely follows the broader market drawdown in November-December 2025. After Bitcoin and the trading activity within crypto markets hit new highs in October, it largely remained below the mark in the last two months of the year.

At the time of publishing, Bitcoin price is trading near $76,510—down 40% from its all-time high of $126,198, marked on October 27, 2025. The total crypto market capitalization has also recently declined by nearly $1.5 trillion from its high, proving that Nomura’s decision to cut its crypto exposure turned out to be a prudent move.

Regulatory shifts in Japan

Nomura’s decision comes as Japan plans new rules for crypto. The country’s Financial Services Agency (FSA) wants to make trading safer and tighten oversight. Under the proposals, exchanges would have to use systems from approved custodians, closing loopholes. 

So far, many third-party providers aren’t closely regulated. The changes will make sure exchanges stay responsible, even when they outsource key services. That’s why risk management, like Nomura’s, is becoming more important. 

Also Read: Union Budget 2026: Still No Relief for India’s 90M Crypto Investors

Cross-chain crypto protocol CrossCurve has confirmed that its bridge was exploited in a smart contract attack, resulting in the loss of approximately $3 million across multiple blockchain networks. 

The incident, disclosed late Sunday, once again underscores the persistent security risks surrounding cross-chain bridges, one of the most vulnerable components in decentralized finance (DeFi).

CrossCurve announced on X that its bridge was “under attack,” citing the exploitation of a vulnerability in one of the smart contracts used for cross-chain operations. The protocol immediately urged users to suspend all interactions as the team works on the breach. 

⚠️ URGENT Security Notice

Dear users,

Our bridge is currently under attack, involving the exploitation of a vulnerability in one of the smart contracts used.

Please pause all interactions with CrossCurve while the investigation is ongoing.

We appreciate your patience and… pic.twitter.com/yfo1KvWoDd

— CrossCurve (@crosscurvefi) February 1, 2026

Blockchain security analysts later confirmed that the exploit allowed attackers to bypass critical validation checks and unlock tokens without proper authorization. 

What happened and how the attack worked

According to Defimon Alerts, shared by blockchain security company Decurity, the attacker used a vulnerability that enabled anybody to spoof a cross-chain message. 

The vulnerability existed in a smart contract linked to CrossCurve’s Axelar-based receiver system. The attacker reportedly called a function called expressExecute on the ReceiverAxelar contract with a forged message.

This bypassed gateway validation and triggered token unlocks on the PortalV2 contract. As a result, assets were released without backing, allowing the attacker to drain funds across several networks.

Defimon Alerts estimated total losses at around $3 million, though the final figure may change as investigations continue. At the time of writing, CrossCurve has not released a complete breakdown of affected assets or chains.

CrossCurve @crosscurvefi (ex https://t.co/4HJ33uOZUS) has been exploited for around 3 million on several networks.

Anyone could call expressExecute on ReceiverAxelar contract with a spoofed cross-chain message, bypassing gateway validation and triggering unlock on PortalV2.… pic.twitter.com/EfYe3Tfo9v

— Defimon Alerts (@DefimonAlerts) February 1, 2026

Response from CrossCurve and Curve Finance

In an effort to recover the stolen funds, CrossCurve CEO Boris Povar publicly shared 10 wallet addresses believed to have received assets from the exploit. He offered a bounty of up to 10% if the funds are returned within 72 hours, a practice commonly referred to as a “white hat” reward.

According to Povar, in case of no contact within the given time frame, CrossCurve will consider the incident as malicious and seek legal alternatives. These include working with law enforcement, filing civil lawsuits, and coordinating with other crypto projects to freeze funds where possible.

Curve Finance that has collaborated with CrossCurve also released a statement that urged users who had invested their votes in CrossCurve pools to reevaluate their hold. The Curve team insisted on the need to be risk-conscious in making decisions when dealing with third-party protocols.

In light of the recent security incident involving https://t.co/3Wv3pEhCu8 (== CrossCurve):

Users who have allocated votes to Eywa-related pools may wish to review their positions and consider removing those votes. We continue to encourage all participants to remain vigilant and… https://t.co/chd5YBOXhr

— Curve Finance (@CurveFinance) February 1, 2026

Why this matters for the crypto industry

Cross-chain bridges have long been a major attack surface in crypto. Over the past few years, bridge exploits have accounted for billions of dollars in losses. 

High-profile incidents include the Ronin Bridge hack, the Wormhole exploit, and the Nomad bridge failure, all of which involved flaws in message verification or validation logic.

The CrossCurve incident is another case of a well-known pattern of a small error in validation code resulting in a massive loss of assets within a few days. Such incidents still bring questions to regulators, investors and developers regarding security assumptions of cross-chain systems.

Related security trends and recent attacks

The broader threat landscape is also evolving. In a recent case, cybersecurity researchers at ReversingLabs uncovered malware hidden inside Ethereum smart contracts.

The hackers exploited the Node Package Manager (NPM) with counterfeit JavaScript packages to covertly extract malicious commands out of the blockchain to enable malware to bypass the usual security checks.

Collectively, these events indicate that attackers are becoming more likely to take advantage of the trust and transparency of blockchain infrastructure itself, and not necessarily by using overtly malicious activity.

How users can stay safe

To the users, the CrossCurve exploit is yet another reminder that there is real risk to interacting with DeFi protocols. Security experts suggest not using new bridges or those with a low audit, exposure to cross-chain products, and keeping a close eye on the announcements of protocols. 

Possible losses can also be minimized by using hardware wallets, not signing blind contracts, and diversifying assets in platforms.

As investigations into the CrossCurve exploit continue, the incident reinforces a central reality of decentralized finance: innovation often moves faster than security, and users remain the final line of defense.

Also Read: Makina Finance Hacked: MEV Bot Snipes 1,299 ETH in $4M Protocol Exploit