Tether, the issuer of USDT, recently announced that it is transporting over a ton of physical gold each week to a high-security vault in Switzerland. The accumulation supports its digital dollar, USDT, and its gold-backed token, XAUT. 

With this move, Tether has become one of the largest private holders of gold outside central banks and governments. The company says the decision to diversify into physical assets is meant to ensure that the company’s reserves, which are valued at several billion dollars, remain stable in the face of growing geopolitical tensions and the fall in value of fiat currencies.

Surpassing sovereign gold reserves

Tether is reportedly using a repurposed Cold War-era nuclear bunker to house its holdings and now holds 140 tons of gold, worth around $24 billion. The amount of gold reserves exceeds those of countries such as Greece, Australia, and South Korea.

The move positions Tether as a “gold central bank” in the private sector. This change indicates a shift for the world’s largest stablecoin issuer, which oversees nearly $187 billion in circulating USDT. While Tether remains committed to Bitcoin, owning over 100,000 units.

CEO Paolo Ardoino has described Bitcoin and Gold as equally vital to the firm’s future. He said, “It is almost like you have two children and have to decide which one is more beautiful.” Ardoino noted, “It’s reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold.”

Why is Tether buying gold

Tether began increasing its gold holdings in 2026 as stablecoin policy frameworks such as the U.S. GENIUS Act and Europe’s MICA rules moved into enforcement. As a result, regulators are now scrutinizing what reserves are made up of.

In this situation, gold offers Tether an asset with no counterparty risk, independence from U.S. banking rails, and universal acceptance as reserved collateral.

As reserve standards tighten, gold becomes a regulatory hedge as much as a financial one.

From digital to physical

The strategy’s emphasis on fortified physical assets reflects the early days of the industry when pioneers like Xapo stored Bitcoin in Swiss bunkers to shield digital wealth from hackers and government seizure.

However, the current trend marks a change; instead of using vaults to protect digital “gold,” firms now use them to accumulate actual physical metal to safeguard digital “dollars.” The announcement comes as the crypto market faces extreme scrutiny, while the price of gold keeps rising, with the most recent incline by 22% this year, to $5,311 per ounce.

Tether’s gold acquisition goes back to the 2020 pandemic, viewing gold as necessary against a world that is “not in a happy place.” The company’s conviction comes from the fact that the gold price increased last year by 64%. Gold is “logically a safer asset than any national currency,” Ardoino added.

Impact on global demand

The effects of this accumulation also extend beyond the crypto reserves. It is also noted that the price-insensitive accumulation of Tether has a major effect on the demand for gold. 

Tether is now competing with financial institutions by creating a complete supply chain for gold through the recruitment of experienced gold traders from large banks and the purchase of upstream mining royalty firms. 

This strategy suggests that the largest stablecoin issuer is preparing for a future marked by what Ardoino calls the “unraveling of Western economies,” where cryptographic code alone may not provide the necessary stability without support from physical assets.

Also Read: Tether Submits to U.S. Rulebook With New USA₮ Stablecoin

THORChain, a cross-chain DEX protocol, has publicly challenged crypto market data source website CoinGecko over how it defines and ranks “Bitcoin DEXs.” The protocol argued that the current list elevates custodial services while excluding the only protocol to process large-scale, non-custodial native BTC swaps.

The dispute follows CoinGecko data showing ChangeNOW controlling nearly all reported Bitcoin DEX volume, despite operating as a custodial intermediary.

Quick question for @CoinGecko: what's the definition of a Bitcoin DEX?

Your rankings show ChangeNOW at #1 with 99.8% market share. But ChangeNOW is a custodial aggregator, not a decentralised exchange.
Magic Eden is listed but trades Runes NFTs, not Bitcoin swaps.

THORChain has… pic.twitter.com/4wdTI4wVOr

— THORChain (@THORChain) January 30, 2026

ChangeNOW listing brings backlash

THORChain questioned CoinGecko’s criteria after the data site listed ChangeNOW, described by THORChain as a custodial aggregator, rather than a dominant Bitcoin DEX.

The protocol also highlighted Magic Eden’s inclusion, noting its activity centers on Runes NFTs rather than native Bitcoin swaps. According to THORChain, labeling such platforms as “decentralized” misrepresents where on-chain Bitcoin liquidity actually exists.

THORChain says the omission creates a “statistical blackout” that understates Bitcoin DeFi. Despite processing $118 billion in native cross-chain volume since 2019, its Bitcoin pools are unranked in the specific Bitcoin DEX subcategory. 

According to CoinGecko data, total volume across all DEXs hovers near $10.42 billion in the last 24 hours, representing 6.8% shares in global DeFi activity.

Nodes versus custodians

THORChain maintained that a validator-based system, secured by more than 100 independent node operators and roughly $51.28 million in bonded RUNE, cannot be grouped with services that custody user funds behind internal accounts.

From the protocol’s perspective, the issue isn’t rankings but definitions. If custodial aggregators qualify as “DEXs,” it says, then the label itself has lost meaning and needs to be reworked to reflect how decentralization actually functions on-chain.

CoinGecko has long been a widely trusted data source in the crypto market, used by traders, analysts, and developers to track prices, volumes, and on-chain activity across thousands of assets. The company is reportedly valued at around $500 million, reflecting its role in crypto market infrastructure and the growing competition in data and analytics.

Market context

THORChain’s RUNE is currently trading around $0.49, with roughly $37 million in daily volume and a market cap near $175 million, according to CoinMarketCap. The dispute comes as Bitcoin DeFi gains attention and data platforms face scrutiny over methodology, especially as CoinGecko itself is reportedly exploring strategic options amid a tougher data market.

Also read: XRP Ledger Token Escrow Amendment Enters Activation Countdown

The XRP Ledger Token Escrow amendment has officially entered its activation period. The update was confirmed by XRP Ledger validator Vet after the proposal reached the required support from network validators.

The proposal has now started its two-week activation timer following an 82.35% consensus, backed by 28 “yes” votes. Data from xrpscan shows the expected activation date is scheduled for February 12, 2026, at 9:21:01 p.m. UTC. A live countdown is already running, showing just under two weeks left before the feature becomes active on the XRP Ledger main network.

Token Escrow amendment is now officially in 2 weeks activation with 28 Yes votes.

Token Escrow allows you to escrow any issued on the XRP Ledger, think of RLUSD, Meme Coins, Real World assets.

Important tool for the ecosystem! https://t.co/AGlSF3x2IY pic.twitter.com/xYxeUpMJg5

— Vet (@Vet_X0) January 29, 2026

In an X post on Friday, Vet explained that this amendment will allow users to place many different tokens into escrow, not just XRP. This includes stablecoins like RLUSD, project tokens, meme coins, and even real-world asset tokens issued on the XRP Ledger.

He described the Token Escrow as an important tool because it gives the ecosystem more ways to lock tokens safely and use them in new financial setups.

“Token Escrow allows you to escrow any issued on the XRP Ledger, think of RLUSD, Meme Coins, Real World assets. Important tool for the ecosystem!” he wrote. 

How Token Escrow works

The amendment extends escrow beyond XRP to fungible tokens, making it possible for Trustline Tokens and Multi-Purpose Tokens (MPTs) to be held in escrow directly on the ledger. The amendment brings changes to ledger objects, transaction types, and transaction processing rules. These updates are designed to support token escrows while still keeping the ledger secure and respecting the controls set by token issuers.

The Token Escrow amendment, also known as XLS-85, allows users to lock tokens in time-based escrows or condition-based escrows without needing a third-party service. This makes it easier for projects to create clear vesting schedules and complete trustless deals directly on the blockchain. A companion fix amendment is also planned to solve a bug linked to transfer fees on multi-purpose tokens. Both changes still require validator approval, with at least 80% consensus needed for final activation.

Important issuer rules also apply. For Trustline Tokens to be escrowed, the issuing account must enable the Allow Trust Line Locking flag. For MPTs, issuers must turn on the Can Escrow and Can Transfer flags when creating the token.

They cannot create escrows with their own issued tokens, but they can still receive escrowed tokens as recipients. If a token requires authorization, the sender must be pre-approved by the issuer before creating an escrow, and both sender and recipient must remain authorized throughout the process.

Recent XRPL upgrades

The amendment comes during a busy period for XRP Ledger development. XRPL recently released version 3.1.0, which includes Single Asset Vaults, a Lending Protocol, and bug fixes.

At the same time, several fixed amendments from XRPL version 3.0.0 have already gone live on the XRP Ledger mainnet. These include:

• fixTokenEscrowV1 
• fixIncludeKeyletFields 
• fixMPTDeliveredAmount 
• fixAMMClawbackRounding 
• fixPriceOracleOrder 

The fixTokenEscrowV1 amendment fixes a minor accounting error in the handling of MPT escrows.

Another proposal, the permissioned domains amendment (XLS-80), has also reached a majority vote and is now in its own countdown period, with about 4 days and 18 hours remaining, according to xrpscan data.

All these changes show that the XRP Ledger is moving quickly, with multiple upgrades being introduced and voted on by validators in the coming days.

Also Read: US Court Tosses XRP Investor Lawsuit Against Ripple

Justin Sun, founder of the TRON network, says 2026 will be the year when major tradefi leaders, like asset manager BlackRock and stock exchanges Nasdaq and NYSE, begin to push for settlements and tokenized assets on the blockchain. Sun wants to position TRON as the settlement layer for that shift.

In an interview on January 29, Sun said TRON could support trillions of dollars in on-chain settlement as early as 2026. “Our focus is to support stablecoins, issuers, and developers with low fees and high throughput, and to keep upgrading the network so it can handle much larger settlement volumes in the future,” he said.

Stablecoin powers TRON’s trillion-dollar vision

For Sun, the signal of TRON’s relevance is not its native token TRX, but the scale of value moving across the network. USDT circulating on TRON has surpassed $83 billion, far exceeding the market value of TRX itself.

The network is built as a neutral infrastructure, prioritizing throughput, low fees, and reliability, while allowing applications and stablecoins to capture most of the economic value. This design has turned it into one of the most widely used settlement networks, especially for remittances and high-frequency stablecoin transfers.

A bid to become a global settlement layer

Looking ahead, TRON aims to serve as a bridge between traditional finance and blockchain-based settlement. Sun said the network plans to work with major financial institutions and market infrastructure providers, including exchanges and asset managers, to support 24/7 settlement of tokenized dollars and securities.

If assets are to be traded and settled continuously across regions, from Asia to Africa, blockchain rails become unavoidable. In Justin’s view, stablecoins will be central to the transition, and TRON aims to be the network processing this flow.

Scaling for institutional volumes

To support that vision, TRON developers are exploring transaction batching and settlement-layer upgrades aimed at handling institutional-scale volumes more efficiently. Sun said these changes are critical if the network is to support millions of high-value transactions daily without sacrificing speed or cost.

TRON already processes an estimated tens of billions of dollars in daily transfer value, and the founder framed upcoming improvements as preparation for a much larger load rather than speculative growth.

Earlier this week, the network surpassed 4.59 million active accounts, marking a 36% increase month over month. The surge has been driven largely by the firm’s token dominance in USDT settlement and its recent Base integration, even as TRX price action remains under pressure.

High usage, muted price response

Despite growing activity, TRX has struggled to reflect that adoption. The token is trading near $0.29, down on the week, even as daily active accounts and transaction counts continue to rise.

Analysts say TRON’s fee model limits direct TRX demand, pushing growth toward stablecoin activity rather than price appreciation.

Sun acknowledged the gap but maintained that infrastructure-first growth is deliberate. Previous decisions, like cutting network fees by 60% in 2025, were framed as long-term investments in usage rather than short-term revenue optimization.

The founder also said Tron’s long-term ambition is to become a global settlement layer capable of hosting trillions of dollars in real-world financial assets, aligning with initiatives already being explored by major institutions like Nasdaq. 

According to him, traditional stock exchanges are moving toward 24/7, on-chain settlement infrastructure, and TRON aims to position itself as the blockchain network that can support that scale.

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

Institutional whales and retail investors experienced a market downturn today as XRP’s market cap dropped below $110 billion. The token fell from $1.91 to $1.75 in recent trading sessions amid huge liquidation that wiped out $62 million, with the majority of longs getting wiped out. 

At the time of writing, XRP is trading at $1.76, reflecting a decline of 2.26% over 24 hours. Its total market capitalization stands at $107.5 billion. As the price drops instigate panic selling from weak hands, the 24-hour trading volume has increased by over 45%.

CoinGlass data shows that XRP experienced a major long squeeze, with over $62.2 million in total liquidations over 24 hours. The long positions accounted for about 98%, i.e., $60.99 million of the total wipeout.

There has been a 4.26x liquidation in the 7-day average. The largest single liquidation was about $17.38 million, suggesting a sharp price pullback. The liquidation heat was primarily concentrated on Hyperliquid, which handled over $44 million, roughly 70%, of the total volume, followed by Bybit and Binance.

Technical breakdown

The price drop was further fueled by a “long squeeze,” where the forced selling of the asset due to liquidated positions caused the price to drop faster than it would have otherwise. The token also experienced a technical breakdown, where XRP dropped below its 30-day Simple Moving Average of $2.02 and the 50% Fibonacci retracement level of $2.09. These levels, which were previously a source of support, have now become a strong source of resistance.

Market data from the last quarter shows that XRP had been trying to stabilize above the $2.00 mark as part of its function as a utility bridge for financial institutions. However, the current decline of 6.59% is much worse than the overall crypto market’s 5.54% drop.

Unlike speculative meme coins, XRP’s value is often linked to institutional risk demand. Its faster decline suggests that large holders are reducing their risk by moving into stablecoins or other major coins, seeking safety as the Altcoin Season Index fell by 12.5%.

The Relative Strength Index (RSI) has dropped to 28.29. The lack of huge buying volume shows that market participants are hesitant. Most traders seem to be waiting on the sidelines, looking to see if a deeper bottom forms before investing again.

Bearish signals and RSI levels

TradingView technical gauges have issued a “Sell” signal, backed by a 14-to-0 ratio of bearish to bullish moving averages.

The future implications of this decline focus on the $1.78 swing low and the $110 billion market cap floor. If the total ecosystem valuation falls below this critical point, the liquidation of assets may continue unless buyers purchase the $1.75 level. If XRP is an indicator of institutional fear, then the failure to move above the $2.02 level may signal a long-term downturn for high-utility altcoins.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

Nubank, one of Brazil’s most valuable companies, received conditional approval from the Office of the Comptroller of the Currency (OCC) to form a U.S. national bank. The approval, announced on Thursday, marks a major step that could expand its role in digital asset custody and crypto-adjacent services.

The move positions fintech to operate directly under U.S. federal oversight rather than relying on partnerships as it scales its presence in the world’s largest financial market.

A regulatory gateway to digital assets

Once fully licensed, Nubank would be able to fill other licenses to offer digital asset custody alongside deposits, cards, and lending. This would place the firm among a small group of federally regulated institutions capable of combining traditional banking with crypto infrastructure in the U.S., a space regulators have historically treated with caution.

The approval remains conditional, with additional sign-offs required from the FDIC and the Federal Reserve. Nubank said it expects to capitalize the bank within 12 months and open it within 18 months, following standard OCC requirements.

US expansion and crypto footprint

The conditional approval strengthens Nubank’s presence in the U.S., where Nu Holdings Ltd. (NU) is already listed on Nasdaq. Shares are trading at $18.02, down 3.92%, as the fintech moves closer to operating under a full federal banking framework.

In 2025, Nubank hired Michael Rihani, formerly of Coinbase, to lead its crypto division. Together, the Nasdaq listing, bank approval, and crypto hires signal a push to expand regulated digital asset services in the U.S.

Institutional strategy over partnerships

By pursuing a full national bank charter, Nubank is opting for direct regulatory alignment instead of operating crypto services through intermediaries. This approach strengthens its credibility with regulators and institutional partners while giving it more control over products such as custody, payments, and potentially tokenized financial services.

Company executives have framed the decision as a long-term infrastructure play rather than a short-term expansion, signaling a focus on compliance-first growth in the U.S.

“When we started over a decade ago, our goal was to prove that technology and design could fundamentally change how people interact with their money. Today, this conditional approval validates our ability to scale that mission into the world’s largest financial market under a comprehensive federal framework,” said David Vélez, Founder and CEO of Nubank.

Global scale behind the US push

Nubank currently serves more than 127 million customers across Brazil, Mexico, and Colombia, where it already operates under strict local regulation. Its U.S. entry builds on that foundation, potentially allowing crypto-related products developed under a federal framework to scale across multiple markets over time.

The strategy also follows recent crypto-focused hires and product expansions, reinforcing the view that Nubank is laying groundwork for deeper digital asset integration rather than treating crypto as a peripheral feature.

Also read: US DOJ Forfeits $400M from Dark Web’s Biggest Cryptocurrency Mixer

Hong Kong is getting ready to officially authorize stablecoin companies. The Hong Kong Monetary Authority (HKMA) is preparing to formally authorize them under its newly implemented Stablecoin Ordinance. The regulator also confirmed that companies can now submit applications to operate legally.

The update was shared by the Secretary for Financial Services and the Treasury, Christopher Hui, during a Legislative Council briefing on Friday. Once approved, companies will be allowed to issue Hong Kong dollar–backed stablecoins under a regulated framework.

Clear rules for stablecoin issuers

The license comes with strict requirements to ensure the system remains safe for users. For instance, the issuer must always have all coins backed by real assets, such as cash and government securities. In addition, they must keep their assets separate from the company’s assets and hold them in a trust account.

Stablecoin holders can redeem their coins at face value without paying extra fees. Companies that have yet to get licensed must also have at least HK$25 million (roughly $3.3 million) in paid-up capital and a physical office in Hong Kong. They also must comply with strict anti-money laundering requirements.

Authorities confirmed that some applications are currently under review, and officials expect to start granting licenses in the first quarter of 2026. Officials say the process is cautious but designed to give businesses a clear roadmap while keeping investors safe.

Expanding crypto oversight

Hong Kong is also preparing to roll out rules for crypto trading platforms, as well as custody services, advisory services, and asset management. A law regarding these areas has already been drafted and will be submitted to the Legislative Council later this year. 

The city is also planning to introduce automatic tax reporting for cryptocurrency transactions starting in 2028, following international rules set by the OECD. This would let authorities share transaction info across borders.

All of these changes in the Hong Kong crypto policies are in line with the country’s 15th Five-Year Plan, which is a strategic roadmap to guide the nation’s economic and social growth as it seeks to maintain its position as the global financial hub.

The changes are designed to protect consumers but also provide a pathway to allow the digital asset market to grow responsibly. Clear rules for reserves, redemption, and custody are meant to prevent market shocks, like those caused by algorithmic stablecoins in other countries.

As a result, Hong Kong is positioning itself as one of the few major financial centers with a clear and regulated path for stablecoin businesses.

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

The U.S. Securities and Exchange Commission (SEC) has stopped Roundhill ETF Trust from launching its proposed 4x leveraged exchange-traded funds. 

The SEC’s Division of Investment Management sent a formal letter to the firm’s counsel, Morrison Warren, regarding the Roundhill 4X SPY ETF and Roundhill 4X QQQQ ETF filings.

The financial and crypto-asset sectors are closely watching this situation, as it reinforces the agency’s plan to impose a strict leverage cap across all open-end fund structures. 

Under Rule 18f-4, all open-end funds, including those holding crypto-linked derivatives, must keep their Value-at-Risk (VaR) within 200% of a reference portfolio. This means that 2x leveraged crypto ETFs sit at the absolute regulatory limit, leaving little room for tracking error, volatility spikes, or structural complexity.

Violating rule 18f-4 leverage limits

The main concern is related to Rule 18f-4 of the Investment Company Act of 1940, which tries to ensure that the risk level associated with leverage in funds remains under control. According to this rule, the Value-at-Risk (VaR) of an open-end fund cannot exceed 200% of the VaR of a reference portfolio. 

Since the proposed ETFs from Roundhill are focused on offering 4x leverage, meaning 400% of the daily return, the SEC believes that this is not possible while remaining within the permissible leverage ratios.

Administrative rejection and fiduciary concerns

The SEC’s intervention came after Roundhill filed post-effective amendments on January 23, seeking to offer 400% daily exposure to major indices. The regulator stated it will not review these filings in detail until the issues in the letter are addressed, and it asked the firm to voluntarily delay the effectiveness of its filings.

This administrative hurdle serves as a clear rejection, as the SEC questioned how the trust’s directors could fulfill their fiduciary duties while pursuing a strategy that appears to go against federal risk management standards.

Risk baseline calculations

Roundhill reportedly tried to use a different baseline to assess its risk profile in its filings. The agency clarified that if a fund’s goal is to track the performance of an unleveraged index such as the S&P 500, it must use that specific index as its reference portfolio.

The SEC noted that the fund’s reference assets accurately represent the fund’s unleveraged portfolio and are the only proper baseline for calculating leverage risk. While 2x and 3x leveraged ETFs have become common for short-term traders, the SEC has typically been cautious about “super-leveraged” options. 

SEC emphasizes rules for issuers

The reaffirmation of Rule 18f-4 in recent years aimed to establish a clear framework for derivatives use. However, this exchange suggests some issuers thought there might be loopholes for products exceeding the 3x limit. The SEC’s current concerns emphasize that the 200% VaR limit is an unmovable barrier for now.

The SEC has made it clear that “more than 200% (2x) leveraged exposure to underlying indices or securities” is facing challenges under current rules. By refusing to review the Roundhill filings until they align with Rule 18f-4, the commission has effectively limited the leverage available in the ETF wrapper.

Issuers must now choose between withdrawing their filings or fundamentally changing their strategies to comply with the 200% risk limit.

Also Read: Grayscale Files S-1 with U.S. SEC for BNB ETF

The governor of the Czech National Bank (CNB), Aleš Michl, has urged the financial sector to explore Bitcoin and other digital assets in reserves. He said the central bank is taking steps in learning about cryptocurrencies, stablecoins, and tokenized deposits.

In an X post on Friday, Michl wrote, “Don’t fight the future. Build it. Test it. Understand it. See you at @TheBitcoinConf.” He also encouraged banks, investors, and the public to understand these new technologies that could change how traditional financing works.

Don’t fight the future.
Build it. Test it. Understand it.
See you at @TheBitcoinConf.
First central bank testing Bitcoin, USD stablecoins, and tokenised deposits.
Here’s a snapshot of what we’re building at @CNB_cz for the future: https://t.co/9HgMhx4Abp pic.twitter.com/irewD0Qtyj

— Aleš Michl (@MICHLiq_) January 30, 2026

CNB’s push for Bitcoin and digital assets

The comment follows the CNB’s launch of a small Bitcoin and digital asset pilot to learn more about blockchain and the future of finance. The program began in November 2025 with a $1 million test portfolio.

According to the previous report, the goal of the test is not to make any major investment but to understand how the assets work and how they could affect the traditional payment system and reverse management. The project is being done through its special innovation unit called CNB Lab, with a test portfolio including Bitcoin, USD stablecoins, and USD tokenized deposits.

Previously, the bank said Bitcoin was bought on a regulated exchange, and the process took about three weeks because of strict KYC and AML checks. The pilot will test different ways of buying and storing these assets safely. It is also studying how blockchain works in real situations, including key security, approval steps, crisis handling, and compliance rules. The CNB expects a full review of the pilot in the next two to three years.

Michl’s view on Bitcoin 

This is not the first time Governor Michl has been pushing for the adoption of Bitcoin. Last year, he said Bitcoin could be useful for diversifying the bank’s reserves.

“For the diversification of our assets, bitcoin seems good,” he said, adding that it has “zero correlation to bonds” and could be worth considering for a large portfolio. However, he stressed that careful study was still needed before taking any real step in investing.

In another detailed statement, Michl warned that crypto investing is not for everyone. He advised people to be extremely cautious and only invest in things they truly understand. He compared today’s crypto market to the early investment boom in the Czech Republic during the 1990s, when many funds appeared and later collapsed. He explained that the crypto space will likely see both big successes and painful failures.

Michl also made it clear that Bitcoin is highly risky because of its sharp price swings. He said Bitcoin could end up having two extreme outcomes, either becoming very valuable or dropping to zero. Still, he believes central bankers should study it closely instead of ignoring it. “Studying bitcoin won’t harm us – on the contrary, it will strengthen us,” he noted.

CNB flags risks alongside pilot program

The Czech National Bank has recently shared research suggesting Bitcoin could improve returns in some cases. According to CNB backtests, if the bank had held 5% of its reserves in Bitcoin over the past decade, yearly returns could have risen by about 3.5 percentage points. However, volatility would have doubled, showing how unstable such an asset can be.

The CNB also warned citizens about financial dangers. In a recent public notice, the bank urged people to stay alert to fraudsters, online scams, hidden fees, and fake crypto promotions. It also reminded investors not to rely on advice from influencers who may not have their best interests in mind.

Odhalte včas podvodníky a vyvarujte se nástrahám finančního trhu. 🛡️🧨 Praktické rady a užitečné informace, které vám pomohou lépe se orientovat ve světe financí, u nás nově najdete na jednom místě! 👇🏻

➡️ https://t.co/sX4dKsDm5b ⬅️

ONLINE PODVODY
Podvodníci přicházejí s čím dál… pic.twitter.com/opakZkBNeT

— Česká národní banka (@CNB_cz) January 30, 2026

“Always remember to verify the identity of the other party. We regularly issue warnings about entities that show signs of fraud or do not hold the appropriate authorisation from the CNB,” the bank said.

For now, the Bitcoin test remains small, controlled, and focused on learning. The bank says the pilot is meant to gain real experience with blockchain processes, while the final evaluation will take place over the next two to three years.

Also Read: U.S. Government Builds Cash Reserves Ahead of Possible Shutdown

Ethereum Co-Founder Vitalik Buterin is accelerating efforts to protect digital privacy and self-sovereignty. In a detailed post on X, he announced that he has withdrawn 16,384 ETH to fund open, secure, and verifiable technology. 

Buterin stressed that Ethereum isn’t just about making quick money. He wants apps and systems that run fairly, without fraud, censorship, or middlemen. His plan covers all kinds of tech—from finance and government tools to messaging and health apps—using secure hardware, operating systems, and blockchain systems that keep users in control and protect their privacy.

In these five years, the Ethereum Foundation is entering a period of mild austerity, in order to be able to simultaneously meet two goals:

1. Deliver on an aggressive roadmap that ensures Ethereum's status as a performant and scalable world computer that does not compromise on…

— vitalik.eth (@VitalikButerin) January 30, 2026

Besides funding these projects, Buterin said he would personally handle tasks that usually fall under the Ethereum Foundation’s special projects. He explained that his goal is to keep Ethereum’s core mission strong while ensuring the Foundation can operate long-term. 

“Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” Buterin wrote, highlighting that user control matters more than corporate-style growth.

Ethereum’s 2025 achievements and current challenges

Ethereum achieved big technical improvements in 2025. It could handle more transactions, store more data, and run nodes faster. On top of that, zkEVMs brought major speed and efficiency boosts. Combining zkEVMs with PeerDAS marked Ethereum’s biggest step yet toward becoming a completely new kind of blockchain.

Despite all these improvements, Buterin stated that there are still challenges that face Ethereum. Therefore, he encouraged the team of developers to look forward to their long-term goals instead of seeking fast solutions for the blocks. Currently, the Ethereum roadmap has prioritized privacy, censorship resistance, and openness as opposed to seeking more growth and control.

Buterin has also been a contributor to privacy-focused initiatives in his past. In November 2025, Buterin donated 128 ETH each to decentralized messaging applications Session and SimpleX Chat. In his post, Buterin hailed these applications because of their permissionless account creation feature alongside metadata privacy, citing them as “critical next steps in enabling encrypted communication.” 

Encrypted messaging, like @signalapp, is critical for preserving our digital privacy. Two important next steps for the space are (i) permissionless account creation and (ii) metadata privacy.@session_app and @SimpleXChat are two messaging apps pushing these directions forward.…

— vitalik.eth (@VitalikButerin) November 26, 2025

In August, Buterin also donated 200 ETH to the Animal Welfare Fund of Effective Altruism Funds. It is also worth noting that the Ethereum Foundation currently manages crypto assets valued at roughly $558 million, per blockchain analytics firm Arkham, while Vitalik Buterin personally holds around $666 million.

Innovative technical approaches

Buterin’s latest efforts have coincided with Ethereum’s focus on quantum-resistant cryptography and distributed validator technology. Validators could now operate across multiple machines, ensuring the network remained resilient and simplifying the technical burden on large ETH holders.

Under one key, every validator could create up to 16 virtual identities with ease for participation but in an un-centralized manner. “This design is extremely simple from the user’s point of view,” Buterin explained.

These upgrades also help Ethereum rely less on central servers or outside coordination. By adding distributed validator technology directly into staking, the network becomes more secure and avoids risks from a single point of failure. This fits Ethereum’s bigger goal: building tech that gives power to users, not big companies.

Community response

The Ethereum community responded positively to Buterin’s vision. Candide Labs’ Marc commented, “We stay the course on the hard road: open source, verifiable, and built for the walkaway test. We are intentionally building a product that allows you to leave us.” 

There is a specific kind of pressure that comes with building on Ethereum that nobody tells you about. It’s the constant, logical whisper that says: Just centralize it.

We look at our competitors. The ones with 100x our resources. They aren't smarter than us, but they are… https://t.co/YDTBc3j17H

— marc (@heymarcopolox) January 30, 2026

Similarly, Ismail Amara, Marketing Lead at HederaHacks, highlighted that Ethereum’s true leverage lies in user-facing infrastructure like wallets, key management, and secure devices. He emphasized, “Effort should concentrate on making self-custody boring, privacy non-optional, and exit costs from centralized systems near zero.”

These responses show a common belief: Ethereum is valuable because it gives people control, not because it makes big companies richer. The focus is on privacy, personal freedom, and tech you can trust.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

The U.S. President Donald Trump has nominated former Federal Reserve governor Kevin Warsh as the next Chair of the Federal Reserve, ending weeks of speculation over who would replace Jerome Powell when his term expires in May.

The announcement was made on Friday, with Trump saying on his Truth Social platform that Warsh would be “one of the great Fed chairmen” and praising his understanding of the economy and interest rate policy.

Financial markets reacted cautiously. The US dollar trimmed early gains, Treasury yields moved slightly higher, and stock futures pointed to a softer open on Wall Street.

Markets react with caution

Investors showed little sign of panic following the announcement, largely because Warsh had been widely tipped as a frontrunner in recent weeks.

US two-year Treasury yields rose modestly before easing, while longer-dated yields were little changed. The USD initially strengthened but later gave up gains as traders assessed what the appointment could mean for future rate decisions.

Market participants said the muted reaction reflected uncertainty over how Warsh would act once in office, especially given the Federal Reserve’s committee-based decision-making structure.

Why Trump picked Warsh

Warsh served as a Federal Reserve governor from 2006 to 2011 and played a role in policy decisions during the global financial crisis. Since then, he has been a frequent critic of the Fed’s large balance sheet and long period of ultra-loose monetary policy.

Trump has repeatedly criticized the central bank for keeping interest rates too high and slowing economic growth. Warsh has recently echoed similar views, saying the Fed has been slow to adjust policy as inflation pressures ease.

In December, Trump publicly said that Warsh believed rates should be lower, a comment that signalled his growing support for the former Fed official.

Unlike some other names linked to the role, Warsh is seen as having both policy experience and credibility in financial markets, reducing fears of a politically driven appointment.

What it means for crypto markets

Crypto traders are keeping a close eye on the nomination, even though it’s not expected to have an immediate impact on the market.

Warsh has long been critical of extended easy-money policies and has warned that too much liquidity tends to inflate asset bubbles. That view isn’t especially friendly for crypto, which has historically done best when monetary conditions are loose and liquidity is flowing freely.

However, his more recent comments suggest a softer tone. Warsh has acknowledged slowing inflation and has indicated that rate cuts may be appropriate if economic growth weakens.

For crypto markets, the picture is mixed. On one hand, lower interest rates usually help assets like Bitcoin by improving liquidity and risk appetite. On the other, Warsh’s long-held view that the Fed should shrink its balance sheet could cap any major upside.

For now, traders are paying far more attention to inflation numbers and signals on when rate cuts might begin, rather than the Fed chair appointment itself.

Background on Warsh

Warsh previously served as a senior economic adviser in the George W. Bush administration and represented the Federal Reserve at G20 meetings. He is currently a lecturer at Stanford’s Graduate School of Business and has ties to several major investment firms.

He is married to Jane Lauder, granddaughter of the iconic fashion businesswoman Estée Lauder, and has longstanding connections across Wall Street and Washington.

Warsh’s nomination now heads to the U.S. Senate for confirmation. If approved, he will take over the central bank at a time when markets are increasingly sensitive to signals around interest rates, inflation, and liquidity conditions.

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

U.S. markets are under pressure as the government builds up cash reserve ahead of a possible shutdown. BitMEX Co-Founder Arthur Hayes noted that Bitcoin’s recent dip reflects a big drop in dollar liquidity.

According to Hayes, roughly $300 billion in dollar liquidity has exited markets in recent weeks, with a $200 billion spike in the Treasury General Account (TGA) being the primary driver. The TGA, the government’s main cash reserve held at the Federal Reserve, appears to be stockpiled to sustain federal operations if budget negotiations stall. 

Hayes noted on X, “Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity.”

Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity. pic.twitter.com/ctPjWd8188

— Arthur Hayes (@CryptoHayes) January 30, 2026

Tighter liquidity often puts pressure on risky assets like stocks and crypto. The .USDLIQ U Index fell from 11.687 million in July 2025 to 10.881 million by January 2026. After hitting a high of 11.789 million in August, the index dropped sharply, saw a few short-lived recoveries, and became more volatile toward the end of the year.

Consequently, Bitcoin, a proxy for market liquidity, has experienced a 14% correction in just two weeks. Analyst Brain commented, “BTC at 82,458 is the ultimate liquidity proxy. TGA at 952 billion dollars is a reserve vacuum. Tomorrow’s shutdown risk at 81 percent odds keeps things risk off.”

Shutdown risks and market implications

According to prediction market platform Polymarket data, the probability of a shutdown on January 31 stands at 71%, with total bets surpassing $29 million. The potential impasse revolves around Democratic opposition to Department of Homeland Security funding. Senate Minority Leader Chuck Schumer stated, “I will vote no on any legislation that funds ICE until it is reined in and overhauled.”

Despite the risk, the situation differs from October 2025’s record 43-day shutdown. Six spending bills have been signed this year, and key departments like Agriculture, Veterans Affairs, Commerce, and Energy already secured funding. DHS holds $178 billion from last year’s “One Big Beautiful Bill Act,” which could allow operations to continue largely uninterrupted.

Crypto analyst CryptoOracle previously said that government shutdowns usually suck liquidity out of markets first, then put it back later, often causing Bitcoin to drop 30–40%. He pointed to last October’s shutdown, saying BTC could fall into a ‘fear zone’ between $65,000 and $75,000. 

History supports this as per Bitbo data, from 2011 to 2015, Bitcoin rose when U.S. Treasury yields were stable or falling. During the 2020 COVID crash, yields plunged, Bitcoin dipped briefly, then bounced back as investors looked for alternative assets.

Liquidity trends driving crypto volatility

Apart from the government’s cash hoarding, another factor that shows that the crypto market is really under pressure is the general liquidity in the market. The .USDLIQ U Index confirms this dropping by nearly 7% over the last six months. Although some minor increases have been recorded, they have not been sustained, and volatility has picked up towards the end of 2025 and early 2026.

Analyst Brain also pointed out that Bitcoin has the potential to drop even further if its price goes lower than 80,951. Furthermore, since many traders are holding leveraged positions, the market has the potential to move either way.

The U.S. government is hoarding cash ahead of a possible shutdown, putting pressure on risky assets like Bitcoin. Prices might stay shaky for now, but once the situation clears, markets could bounce back strongly.

Also Read: CFTC Signals Reset for Polymarket, Kalshi as Fed vs States Clash Rises

In a dramatic legal move, pro-crypto U.S. President Donald Trump, along with his sons Donald Trump Jr. and Eric Trump and the Trump Organization, filed a $10 billion lawsuit against the Internal Revenue Service (IRS) and the U.S. Treasury Department. 

The lawsuit, filed Thursday in Miami federal court, claims the agencies failed to prevent the leak of Trump’s tax records, exposing private financial information to the media during his first term.

This is not an ordinary lawsuit. It is very unusual for a sitting president to take legal action against his own administration, and the case is already making headlines across the country. It raises serious questions about how the government protects taxpayers’ private information and how politics can mix with the legal system.

The heart of the lawsuit: Reputational and financial damage

Trump’s legal team says the leak caused serious harm, resulting in “reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other Plaintiffs’ public standing.”

The complaint specifically points to former IRS contractor Charles “Chaz” Littlejohn, who admitted in a 2024 deposition that he provided Trump’s tax records to the investigative news outlet ProPublica, as per CNBC. Littlejohn also provided documents to The New York Times, which reported on Trump’s minimal federal tax payments in certain years, a story that sparked national headlines.

Trump’s legal team claims that ProPublica’s reporting falsely suggested that the returns contained “versions of fraud,” a statement Trump says misrepresented the financial records of him and his businesses.

Charles Littlejohn and Booz Allen Hamilton: A data breach fallout

Littlejohn, 40, pleaded guilty in 2023 to one count of disclosure of tax return information and is now serving a five-year prison sentence. Beyond Trump’s documents, Littlejohn admitted to stealing and leaking records of thousands of other wealthy individuals, including billionaires Jeff Bezos and Elon Musk.

The Treasury Department responded by canceling all contracts with Booz Allen Hamilton, the consulting firm employing Littlejohn. Treasury Secretary Scott Bessent said, “Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service.”

The IRS, meanwhile, called Littlejohn’s actions “unacceptable” and said it has taken “substantial investments in data security to strengthen its safeguarding of taxpayer information.”

Trump’s pattern of high-value lawsuits

This $10 billion lawsuit is not Trump’s first move of this kind. In October 2025, he sought $230 million from the Department of Justice (DOJ), claiming the agency had improperly investigated him. 

Trump told reporters, “They probably owe me a lot of money, but if I get money from our country, I’ll do something nice with it, like give it to charity or give it to the White House.”

Trump has also filed similar multi-billion-dollar lawsuits against major media outlets, including:

• BBC: $10 billion defamation suit over edits to a January 6, 2021, speech clip.
• The Wall Street Journal (WSJ): $10 billion suit over reporting on an alleged crude drawing sent to Jeffrey Epstein in 2003.

Both media companies vowed to fight the lawsuits.

Historical context: IRS leaks and other victims

Trump is not the first high-profile figure affected by IRS leaks. In 2024, hedge fund billionaire Ken Griffin sued the IRS after Littlejohn leaked his tax records. Griffin later dropped his lawsuit after the IRS strengthened its data security measures.

Legal experts say Trump’s case is unusual and complicated. It raises questions about how much responsibility the government bears when a contractor mishandles sensitive information, the privacy of taxpayers, and the potential conflicts when a sitting president takes legal action against federal agencies.

Crypto angle: Why the lawsuit hits even closer to home

This lawsuit takes on an added layer because of Trump’s growing involvement in the cryptocurrency world.

Trump’s embrace of crypto began with his NFT projects, selling digital trading cards of himself that quickly drew strong interest. At events like the Bitcoin 2024 conference, he spoke about supporting Bitcoin and digital assets, pledging to champion the industry and overhaul federal regulation.

As president, Trump has become a major player in crypto, earning substantial sums through non-fungible tokens (NFTs), memecoins, and his own digital token ventures, including the Trump-branded coin ($TRUMP) and projects under World Liberty Financial. 

According to Bloomberg, digital assets added roughly $1.4 billion to the Trump family’s net worth over the past year, now making up about one-fifth of their estimated $6.8 billion fortune. 

Separately, financial disclosures show that Trump personally earned at least $57.7 million from token sales tied to World Liberty Financial, while additional crypto venture proceeds over recent months brought in hundreds of millions more.

Experts note that if his crypto income were ever examined alongside the leaked tax returns, it could show not only past tax behavior but also the scale of his digital asset earnings and what taxes have been paid. For Trump, the issue is about more than just reputation—it now involves a multi-million-dollar crypto empire.

This leads many observers to ask: Why is Trump pushing so hard against the leaked tax returns when his crypto earnings alone are far larger than the amounts at issue? The likely answer is control—he wants to prevent scrutiny of his entire financial picture, both traditional businesses and newer digital ventures.

Political and legal implications

By filing this lawsuit, Trump is in a rare position. He is challenging agencies that are part of his own administration while asking for one of the largest financial settlements ever. 

Even if the case doesn’t succeed, analysts say it is likely to attract huge public attention and could ignite wider discussions about government data security, oversight of the IRS, and the limits of presidential authority in civil matters.

With the case now filed, all eyes are on the Miami federal court. The White House and the Trump Organization have not commented on the potential use of the $10 billion if awarded. Meanwhile, the case adds yet another chapter to the president’s complex relationship with the federal government.

Also Read: Why Trump Pardoned the Crypto Industry but Left SBF to Rot

Disclaimer: The Crypto Times is not making any claims about President Trump’s financial holdings. References to crypto assets, NFTs, or digital earnings in this article are based solely on publicly available news reports and media coverage, and should be considered context or speculation rather than verified fact.

The world’s largest cryptocurrency exchange, Binance, has announced a major restructuring of Secure Asset Fund for Users (SAFU), converting its $1 billion stablecoin reserves entirely into Bitcoin over the next 30 days. The move aims to strengthen its long-term asset strategy and respond to market volatility. 

In an update on X, Binance cited Bitcoin’s role as a core crypto ecosystem asset and emphasized its long-term value in safeguarding user funds. Notably, the move comes as Bitcoin falls to multi-month low following broader market drawdown. 

An open letter to the crypto community 💛

During periods of market volatility and pressure, the impact felt across the industry is naturally also felt by Binance.

As a global industry leader, we hold ourselves to elevated standards and continually improve based on feedback from… pic.twitter.com/HvWEQYjuKZ

— Binance (@binance) January 30, 2026

The SAFU Fund, established in 2018 to protect users’ assets, originally grew from a percentage of trading fees. Currently, it is managed by Nest Clearing and Custody Limited under the Abu Dhabi Global Markets (ADGM) framework. 

In the post, Binance claimed that it achieved several important milestones in 2025 that show it keeps users’ funds safe and manages risks well. The platform said it has helped in the recovery of 38,648 cases of incorrectly sent assets worth $48 million and has now recovered over $1.09 billion since its inception. 

What are the SAFU funds?

SAFU, or Secure Asset Fund for Users, is a reserve fund launched by Binance in 2018. The fund is sustained by a portion of the trading fees and serves as a financial cushion in the event of hacks or security breaches. Through compensating users and ensuring transparency, SAFU enhances user trust and confidence in the platform’s efforts to secure their assets. 

The fund secures users on the Binance platform and also shapes the industry and crypto practices. The existence of SAFU encourages other platforms to put similar measures in place, thereby improving the security of the market. 

Furthermore, the existence of SAFU can have a positive effect on the development of regulations and innovation in blockchain security, ensuring that the crypto develops with adequate safeguards for users. Although none of the amount within the fund have been used as of now. 

Strategic industry investment and global expansion

Besides risk control, Binance continues investing in ecosystem development. The exchange recently surpassed 300 million registered users globally, adding 100 million users within 18 months, achieving over 180,000 new users daily. 

To celebrate, Binance launched “300M Users, OneUnstoppableCommunity,” a global initiative inviting users to share experiences and perspectives. 

Furthermore, Binance applied for a pan-European crypto license under the EU’s Markets in Crypto-Assets (MiCA) framework via the Hellenic Capital Market Commission in Athens. This application allows Binance to operate across multiple European markets legally. To support the review, international audit firms, including Ernst & Young, Deloitte, and PwC, are engaged in the process.

Binance also announced a leadership change last month during Binance Blockchain Week. Co-Founder Yi He was promoted to Co-CEO. Richard Teng noted, “Yi has been an integral part of the executive leadership team since the launch of Binance. Her innovative and user-focused approach has been instrumental in shaping the company’s vision.” The company remains committed to becoming “the most trusted and regulated exchange in the world.”

Also Read: Dubai Residents Can Now Pay Insurance Premiums in Bitcoin

Ethereum (ETH), the world’s second-largest cryptocurrency, began the day around $2,738 but quickly lost momentum, slipping below the crucial $2,700 mark and touching nearly $2,680. The drop caught traders off guard and pushed ETH into one of its sharpest declines in recent weeks, down nearly 7% in the last 24 hours.

At the time of writing, ETH is hovering around $2,715–$2,720, a level that now feels like a make-or-break zone. All eyes are on whether the price can stabilize here — or if the selling pressure will drag it even lower.

Ethereum’s trading range

Since November 14, 2025, Ethereum has been moving in a range between $2,737 and $3,410. This means the price has been mostly sideways for over two months. The upper limit, $3,410, acts as resistance.

The lower limit, around $2,700, shows support, where buyers usually step in to prevent the price from falling further.

Because of this range, the market has been quiet in terms of trends. Neither buyers nor sellers have been able to take control. The move today shows how fast things can change if pressure builds on the market.

Liquidations and market activity

Ethereum’s recent drop triggered a lot of forced position closures. In the last 24 hours, roughly $414 million worth of ETH trades were liquidated, as per data by Coinglass. 

Most of this — about $387.88 million — came from traders who had bet on the price going up, while $26.52 million came from those betting it would fall. When these positions get closed automatically, it adds more selling pressure, and the price drops faster.

Ethereum’s 24-hour trading volume also shot up to $44.34 billion, almost 90% higher than yesterday. Traders were moving quickly, buying and selling as the price changed, and that kept the downward pressure going.

ETF outflows add more pressure on ETH

Ethereum’s weakness wasn’t limited to futures and leveraged traders. Spot ETF data also showed clear signs of caution from institutional investors.

On January 29, U.S. spot Ethereum ETFs recorded a net outflow of $155.61 million, as per SosoValue, suggesting that big players were reducing exposure as prices slipped.

Some of the largest funds saw notable withdrawals:

• BlackRock’s ETHA recorded outflows of $54.88 million
• Fidelity’s FETH saw $59.19 million leave the fund
• Grayscale’s ETHE lost $13.05 million, while its lower-fee ETH fund saw another $26.49 million in outflows
• Even smaller ETFs like Bitwise’s ETHW saw money move out

Despite this, total assets held across Ethereum spot ETFs remain sizable at $16.75 billion, accounting for nearly 5% of Ethereum’s total market value. The big outflow in just one day shows that investors are starting to step back as Ethereum’s price weakens. 

Market confidence has clearly cooled off, with many choosing to stay on the sidelines instead of taking fresh bets.

At the same time, trading picked up sharply. ETF volumes jumped to $2.15 billion as investors moved quickly to adjust their positions after ETH slipped below key support levels.

Taken together, the ETF data adds to the growing bearish tone in the market — suggesting that it’s not just short-term traders pulling back, but institutional investors as well, who are choosing to stay on the sidelines as uncertainty builds.

Options expiry adds pressure

Ethereum’s drop today was partly due to a $1.4 billion options expiry. Large expiries often make the market more active because traders and institutions adjust their positions to protect themselves. This can push the price up or down quickly.

Today, it added to the selling pressure and helped ETH fall below $2,700. Traders pay close attention to these expiry dates since they can trigger sudden moves.

What could happen next

Ethereum is at a tricky point right now. If it can hold the $2,700 support, it might keep trading sideways within its usual range and try to climb back toward the resistance at $3,410. But if selling pressure keeps building, or if any negative news hits the market, ETH could break support and head toward $2,094, which would be a bigger drop.

The market is playing it safe right now. Ethereum has been stuck between $2,737 and $3,410 for the past two months, and today’s big drop shows that the price is still swinging a lot. Traders and investors will be watching closely over the next few days to see if Ethereum can settle down or if it will fall even more.

Also Read: Silver Outshines Bitcoin with 100% Gain in 50 Days — Is Risk Appetite Changing?

The U.S. Commodity Futures Trading Commission (CFTC) is moving forward with a broad reset of its regulatory approach to prediction markets, announcing plans to write new rules that clarify how these fast‑growing platforms will operate under federal law. 

The announcement comes from CFTC Chairman Michael Selig at a panel alongside Securities and Exchange Commission (SEC) Chair Paul Atkins, as the tension between federal regulators, states, and the courts intensifies. 

Prediction markets let users trade contracts tied to future outcomes, such as elections, economic events, and sports results. Platforms such as Polymarket, Kalshi, Coinbase, DraftKings, FanDuel, Robinhood, and others operate or plan to launch products that let people buy and sell these contracts. 

But questions about legality, jurisdiction, and consumer protections have always shadowed this sector, prompting the CFTC’s renewed regulatory effort. 

Why the regulatory pivot?

Chairman Selig emphasized that the current framework for event contracts, the legal term used by the CFTC, has created “uncertainty” rather than clarity for market participants. 

To address this, he directed staff to withdraw a 2024 proposal that would have banned political and sports-related event contracts, as well as a 2025 advisory cautioning the offering of sports‑related contracts amid legal disputes. 

Selig told the audience that the previous efforts, while well‑intended, failed to provide clear guidance and instead left operators and traders in a regulatory gray zone. 

“It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets,” he said, reflecting his goal to balance innovation with investor protection and market integrity. 

The new rulemaking will aim to lay out precise standards for how event contracts should be structured, vetted, and overseen, including how they relate to derivatives law and whether federal jurisdiction preempts conflicting state gaming laws. 

State vs Federal: A growing legal clash

Legal challenges have become widespread. Multiple states have argued that prediction markets’ sports‑related contracts resemble unlicensed gambling and should fall under state gaming laws, not federal oversight. 

For example, Tennessee’s Sports Wagering Council recently ordered Kalshi, Polymarket, and Crypto.com to halt sports contracts and refund customers by Jan. 31, 2026, claiming these offerings violate state law. 

BREAKING: Tennessee Sports Wagering Council sends cease-and-desist letters to Kalshi (📸), Polymarket and Crypto, demanding that they cease offering sports event contracts to TN customers immediately, void all pending contracts and issue refunds by Jan. 31. Lawsuits are imminent. pic.twitter.com/jDIPIwsrCn

— Daniel Wallach (@WALLACHLEGAL) January 9, 2026

Similar actions have been taken in Connecticut, and courts in Massachusetts have barred Kalshi from offering sports markets without state gambling licenses. 

In contrast, federal courts previously ruled that some political event contracts did not constitute illegal gaming, underscoring the debate over jurisdiction. Selig signaled that the CFTC may engage more actively in these cases. 

He directed staff to reassess how the agency participates in ongoing litigation, especially where jurisdictional questions are contested, asserting that “the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives.” 

Growth, innovation, and scrutiny

Prediction markets are not new, they have operated under the CFTC’s jurisdiction for years. However, rapid adoption in the last few election cycles, expanding retail participation, and the integration of crypto platforms have dramatically increased their profile. 

In late 2025, Polymarket re‑entered the U.S. market after acquiring a regulated exchange operator and winning CFTC approval to operate as a registered designated contract market. 

Kalshi, meanwhile, has handled billions in trading volume, especially on questions tied to major sports leagues, elections, and economic events. These developments drew attention not just from regulators but also from legislators. 

A proposed Public Integrity in Financial Prediction Markets Act of 2026 would seek to ban government officials from trading on contracts related to their official duties, after a controversial high-stakes trade on a Venezuelan political outcome sparked concern about insider trading. 

Industry and market impacts

The regulatory pivot could have far‑reaching effects. Proponents argue a clearer federal framework will reduce legal risk, encourage responsible innovation, and support transparent markets. 

The critics fear that the state regulators will still push their own standards, resulting in a patchwork of regulations that do not reflect the federal intentions. Daily volumes and contract offerings are growing, which investors and traders are observing. 

While some states continue enforcement actions, federal efforts to harmonize rules may impact where and how prediction markets operate, especially if legislation formalizes the CFTC’s authority over event contracts. 

Looking ahead

As Selig and the SEC coordinate on digital asset and prediction market rules, stakeholders across finance, gaming, and technology will be closely tracking how these regulatory contours take shape. 

The outcome will affect not only specialized platforms like Kalshi and Polymarket but any exchange offering predictive financial products tied to real‑world events.

Also Read: Vitalik’s “Anti-Crazy Mode” Nets $70,000 on Polymarket

The U.S. Department of Justice (DOJ) has forfeited over $400 million in cryptocurrencies, real estate, and monetary assets tied to the notorious darknet mixing service, Helix. Announced last week, this operation marks one of the largest counter-efforts against money laundering using cryptocurrencies. 

As per the DOJ release, Helix hid where coins came from and where they went, moving over $300 million in illegal funds between 2014 and 2017. The platform was run by Larry Dean Harmon, who pleaded guilty to a conspiracy to commit money laundering in August 2021.

In November 2024, he was sentenced to three years in prison, three years of supervised release, and his assets were seized. On January 21, a judge formally gave the government ownership of the assets, finalizing the DOJ’s claim.

Helix’s role in darknet money laundering

Helix was a key tool for cleaning money from illegal online drug sales. It mixed cryptocurrency from many users, making it very hard to trace. Court records show Helix processed transactions of about 354,468 Bitcoin (BTC)—worth around $300 million back then—much of it moving through major darknet markets. Harmon took a cut as fees, earning money from these illegal transactions. 

Harmon also connected Helix to Grams, a search engine for the darknet, and made it easy for markets to automatically move Bitcoin. Investigators traced tens of millions of dollars through Helix, showing how important it was to illegal online operations. 

Officials from the DOJ, Federal Bureau of Investigation (FBI), and Internal Revenue Service (IRS) emphasized the teamwork involved in taking down the platform. The government also worked with authorities in Belize, showing strong international cooperation. 

Broader context of crypto mixers and sanctions

The Helix case is an example of a broader crackdown on crypto mixers. The Treasury has in the past sanctioned Tornado Cash for facilitating the movement of billions of dollars in illegal transactions. However, the sanctions on Tornado Cash were removed in 2025 due to legal and policy challenges. 

Other crypto mixers, like Blender, have also been sanctioned for helping launder money from hacks. For example, the North Korean-backed Lazarus Group used Blender to move over $20.5 million stolen from the Ronin Network. 

The DOJ records show Helix helped launder more than $455 million in Lazarus Group funds, $96 million from the Harmony Bridge hack, and at least $7.8 million from the Nomad hack.

Similar cases and industry impact

Not just Helix, but the team behind Samourai Wallet also went to prison for helping criminals hide $237 million in stolen funds. Its CTO William Lonergan Hill got four years, while CEO Keonne Rodriguez got five. They also had to give up millions. 

As seen, these are just some of the cases where the authorities are cracking down hard on crypto mixers in order to stop money laundering and help the victims of hacks and online scams.

The seizure of the DOJ is evidence that authorities are monitoring crypto mixers more closely than ever. As people are trying to launder money using digital currencies, authorities all over the world are working together to protect the financial system.

Also Read: Midnight Takes Privacy Off the Internet With Satellite Messaging

The second term of U.S. President Donald J. Trump has moved far beyond the deregulatory agenda of his first term. In a move that has fundamentally rewritten the intersection of federal criminal justice and the digital asset industry, the White House has operationalized the presidential pardon power as a tool for ideological signaling and strategic transaction. The result is a bifurcated justice system for crypto entrepreneurs: one track for those who can be useful to the Make America Great Again (MAGA) ecosystem, and another for those deemed political liabilities.

This report provides a deep-dive investigation into what we term the “Crypto Clemency Doctrine”. This is a framework that has liberated figures like Silk Road Founder Ross Ulbricht and Binance Co-Founder Changpeng Zhao (CZ), while leaving FTX Co-Founder Sam Bankman-Fried (SBF) to wither in a federal cell at FCI Terminal Island.

A deep dive into the pardons issued during Trump’s second term reveals that executive mercy is no longer a tool for balancing an unjust judicial system; it is a commodity distributed based on ideological compliance, victim profile, and political networking.

This report exposes the untold story behind this disparity: a lucrative financial feedback loop involving the Trump family’s own crypto venture that paved the way for CZ’s release, and a catastrophic, unauthorized jailhouse media strategy by SBF (involving Tucker Carlson and a stint in solitary confinement) that backfired spectacularly.

The Crypto Clemency Doctrine

The Trump administration’s approach to justice is not arbitrary. It follows a rigorous, if unwritten, logic. An analysis of the 1,600+ pardons issued since January 2025 show two distinct types of privileged defendants eligible for the President’s mercy:

Firstly, the martyrs, whose prosecutions can be framed as “Deep State weaponization.” These are figures whose crimes are interpreted by the Trump administration as acts of rebellion against an overreaching government. Ross Ulbricht is the primary figure of this group.

Second are the partners who offer financial or political benefit. These are wealthy executives whose businesses align with the administration’s or the Trump family’s financial interests. Changpeng Zhao fits the mold in this category.

In contrast, the denial of Sam Bankman-Fried represents the doctrine’s exclusion parameters. Despite SBF’s aggressive, behind-the-scenes attempts to pivot politically, including an infamous unauthorized interview with Tucker Carlson, he remains the narrative’s “Villain.” It stems from his irrevocable branding as a “Democrat mega-donor” and the direct financial ruin he brought upon retail investors, a core demographic of the Trump coalition.

The Mechanics of Mercy: A Structural Shift

To understand how these decisions are made, one must look at the dismantling of the traditional pardon process. Historically, the Office of the Pardon Attorney (OPA) within the Department of Justice served as a meritocratic filter, reviewing petitions based on time served, remorse, and behavior. Under the current regime, this bureaucratic process has been largely bypassed in favor of a “network-based” approach driven by media personalities, high-dollar donors, and Trump-adjacent lobbyists.

During the 2024 campaign, the Trump team successfully framed crypto enforcement as a “war on innovation” led by the Biden-era Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). This rhetorical shift allowed the President to categorize convicts into a binary system:

• The martyrs: Technical or regulatory offenders (e.g., CZ’s anti-money laundering failures, Arthur Hayes’ Bank Secrecy Act violations).
• The villains: Fraudsters who harmed “real people” (e.g., SBF).

This distinction allows the administration to argue that crimes against the state (regulatory violations) are invalid, while crimes against the individual (theft) remain punishable, provided the thief is a Democrat.

The Pay-to-Play Perception: The Case of Roger Ver

The commoditization of access is best exemplified by the case of Roger Ver, the early industry evangelist known as “Bitcoin Jesus.” In 2024, Ver was facing indictment for tax evasion related to his renunciation of U.S. citizenship; a charge that historically carries significant prison time.

Ver bypassed the typical legal meat grinder. Instead of relying solely on criminal defense attorneys, investigations reveal that Ver’s team retained Roger Stone, the infamous political operative and longtime Trump confidant. Reports indicate Ver paid Stone a lobbying fee of $600,000 to advocate for his case directly to the administration.

The result was a stunning reversal of DOJ priorities. Rather than a prison sentence, Ver secured a favorable settlement that involved a monetary fine but no incarceration, effectively buying his freedom. For the crypto industry, the message was clear: freedom has a price tag, and the currency is “influence.” This case established the precedent that legal jeopardy could be neutralized through the right political channels, a lesson Changpeng Zhao would later apply with even greater success.

The Ross Ulbricht Case Study: The Ideological Signal

On January 21, 2025, his first full day in office, President Trump fulfilled a signature campaign promise by issuing a full and unconditional pardon to Silk Road founder Ross Ulbricht. This move was the administration’s “Day One” signal to the libertarian wing of the GOP.

Ulbricht had served 12 years of a double life sentence plus 40 years for running the Silk Road darknet market. While prosecutors argued he was a drug kingpin who facilitated deadly transactions, the crypto community viewed him as a software developer who created a neutral, decentralized platform. By pardoning Ulbricht, Trump bridged the gap between his MAGA base and the Libertarian voters he courted during the election.

During his campaign, Trump was explicit: “If you vote for me, on day one, I will commute the sentence of Ross Ulbricht to a sentence of time served. He’s already served 11 years. We’re going to get him home.”

Trump exceeded this promise by granting a full pardon rather than a commutation. In a post on his Truth Social platform, Trump justified the decision by attacking the prosecutors: “The scum that worked to convict him were some of the same lunatics who were involved in the modern-day weaponization of government against me. He was given two life sentences, plus 40 years. Ridiculous!”

Why Ulbricht Over SBF?

The distinction is rooted in the ‘Victim Profile.’ Ulbricht facilitated voluntary transactions between consenting adults. While illegal, there was no “theft” in the traditional sense; users got what they paid for. In the Trump moral hierarchy, facilitating vice (drugs) is a forgivable libertarian technicality; stealing customer funds (fraud) is an unforgivable sin against the populace.

Arthur Hayes: The Outlaw Architect Returns

The pardon of Arthur Hayes in March 2025 further illustrates the administration’s willingness to forgive “crimes against the state.” The Co-Founder of BitMEX, Hayes was hailed as the man who brought Wall Street derivatives to the masses, inventing the Perpetual Swap, which is a tool that allows traders to hold leveraged positions indefinitely.

Hayes’ downfall wasn’t due to a fraud scandal like SBF’s; but it was a result of a head-on clash with the U.S. government over the Bank Secrecy Act (BSA). In 2020, the DOJ accused Hayes of failing to implement Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, effectively allowing U.S. citizens to bypass regulations via VPNs. After surrendering to the FBI in Hawaii in 2021, he pleaded guilty and was sentenced to six months of home confinement and two years of probation.

However, in March 2025, Hayes received a full Presidential Pardon, alongside his co-founders Ben Delo and Samuel Reed. This pardon fully exonerated him of his criminal record, allowing him to return to the global stage as a legitimate financier. The administration viewed Hayes’ crime as a “process crime”, i.e. a failure to file paperwork, rather than malicious conduct, aligning him with the “Martyr” archetype.

Changpeng Zhao: The Corporate-State Synthesis

If Ulbricht’s pardon was ideological, the October 2025 pardon of Binance Co-Founder Changpeng Zhao was unapologetically transactional. This decision sits at the heart of the “exclusive” revelations regarding the Trump family’s business entanglements.

CZ had pleaded guilty to failing to maintain an effective anti-money laundering program and served four months in prison. Yet, in October 2025, he was granted a full pardon. The public justification was that he was a victim of “regulatory overreach.” However, deep research reveals a far more complex reality.

The controversy surrounding CZ centers on the synergy between Binance and World Liberty Financial (WLF), a decentralized finance (DeFi) project promoted by Donald Trump and his sons.

• The investment: In March 2025, MGX, a state-owned investment firm from Abu Dhabi, invested $2 billion into Binance.
• The stablecoin: Crucially, this massive capital injection was not made in US dollars, but in “USD1”, the stablecoin issued by World Liberty Financial.
• The benefit: As the issuer of USD1, the Trump family venture stood to gain millions in minting fees, transaction volume, and reserve interest from this $2 billion liquidity event.
• The tech transfer: Further investigations by Bloomberg and The Wall Street Journal indicated that Binance developers may have assisted in writing the initial code for the WLF project.

When pardoning CZ, Trump famously stated, “I don’t even know who he is,” adding that all he knew was that the Binance leader was a victim of a “witch hunt” by the former Biden administration. This effectively decriminalized Bank Secrecy Act (BSA) violations retrospectively, signaling to offshore exchanges that compliance is secondary to strategic partnership with the Executive.

Moreover, this was also one of the most controversial pardons of the term. Representative Ro Khanna (D-CA) introduced a sweeping bill aimed at curbing political profiteering, stating, “We have a president who is enriching himself and his family in an obscene wealth that is unprecedented in American history. People need to wake up to what’s going on – it’s corruption right before our very eyes.”

Senator Chris Murphy (D-Conn.) posted, “One week after Trump pardoned Binance’s owner… Binance starts promoting Trump crypto.” The next day, he added a single word: “payback.”

Despite the backlash, White House press secretary Karoline Leavitt defended the decision, insisting, “Neither the president nor his family have ever engaged, or will ever engage, in conflicts of interest. The Biden administration’s war on crypto is over.”

The Pariah: Sam Bankman-Fried’s Failed Redemption

As of early 2026, Sam Bankman-Fried remains in the Terminal Island Federal Correctional Institution. His continued incarceration is not merely due to the severity of his crimes, but the result of a catastrophic failure to navigate the new political reality.

The “Democrat Mega-Donor” Problem:

SBF’s $40 million in public donations to Democratic candidates in 2022 made him the ultimate foil for Trump. To pardon SBF would be to pardon the “Deep State’s” favorite financier. It would destroy Trump’s narrative that the FTX collapse was a “woke” fraud enabled by the Biden administration.

The “Tucker Carlson” Disaster

The untold story of SBF’s failed pardon bid involves a desperate, unauthorized media play. In March 2025, SBF conducted a video interview from prison with Tucker Carlson. This was a “Hail Mary” attempt to reach Trump’s base directly.

• The pitch: SBF attempted to rebrand himself as a “secret Republican,” telling Carlson that he donated “dark money” to the GOP and was targeted by the Biden administration for opposing the woke agenda. He explicitly stated that he didn’t think he’s a criminal.
• The backfire: The interview was unauthorized by the Bureau of Prisons. As a result, SBF was thrown into solitary confinement immediately after it aired.

Trump was unimpressed. He values “loud and proud” loyalty. SBF’s admission that he hid his Republican support to avoid “bad press” was viewed as cowardice, not strategy. Unlike Ryan Salame, SBF had no receipts to prove his loyalty.

In another desperate attempt to align with Trump, SBF took to social media via a proxy to praise Trump’s pardon of former Honduran President Juan Orlando Hernández, a convicted drug trafficker. SBF wrote that Hernández was “one of the kindest and most dedicated people” he had met (they were jailed together at MDC Brooklyn). This sycophancy failed to move the needle; instead, it highlighted SBF’s poor judgment.

Later, in a December 2025 interview with The New York Times, President Trump explicitly shut the door on SBF. Trump stated he had no plans to pardon SBF, grouping him with Sean “Diddy” Combs and Nicolas Maduro as figures who would receive no mercy. He cited the massive losses to retail investors as the primary reason.

The Control Group: Salame and the Republican Shield

To prove that political affiliation is a determinative factor in the administration’s clemency calculus, one must look at SBF’s former colleague, Ryan Salame. As the former co-CEO of FTX Digital Markets, Salame pleaded guilty to similar campaign finance violations.

The key difference? Salame was a massive, public donor to the Republican Party, giving over $23 million to GOP candidates in 2022.

Salame publicly argued he was targeted because he was a Republican. He leaned into the MAGA aesthetic, changing his LinkedIn status to “Inmate” at FCI Cumberland and trolling the DOJ online.

As a result, Salame is widely viewed as a “Good FTX Executive” in the Trump White House. His release date has been moved up, and he is considered a prime candidate for a full pardon, serving as the “control group” that proves SBF’s failure was political, not just legal.

Institutional and Market Implications

The divergence in these cases has created a new, unwritten regulatory compact in the United States. 

For founders, it implies that judicial independence is a myth. The final stage of any legal defense is now political lobbying. Access to the “Trump orbit” (via figures like Roger Stone or investments in WLF) is more valuable than a top-tier legal defense team.

For markets, the CZ pardon acted as a massive “Buy” signal. The market interpreted it as the end of the regulatory crackdown, fueling a resurgence in offshore crypto activity, provided those entities pay homage to the new administration.

Overall, the White House has effectively become a supreme court of appeals where “freedom” is a line item on a political balance sheet. The “Crypto Clemency Doctrine” suggests that crimes are only crimes if they are committed by political enemies.

Conclusion: The Value of a Villain

Sam Bankman-Fried sits in a cell not because his crimes were uniquely heinous (though they were substantial) but because he is worth more to the Trump administration as a prisoner than as a free man.

In the political economy of 2026, SBF serves as the essential villain. His incarceration allows the administration to deflect accusations of being “soft on crypto crime” while simultaneously liberating wealthy allies like CZ and ideological symbols like Ulbricht. SBF is the “Loser” in a world that only rewards “Winners.” 

While Ulbricht and Zhao walk free, SBF remains the permanent face of the “corrupt old guard,” a necessary ghost in the machine of the new crypto-order.

Bitcoin extended its sharp sell-off late Thursday, falling nearly 7% in 24 hours to trade around $82,000 after briefly dipping as low as $81,000 during U.S. trading hours. 

The decline erased multi-month gains from Bitcoin’s price in a single day and triggered a wave of forced liquidations across the crypto market, highlighting renewed fragility in risk assets. 

According to CoinGlass data, more than $880 million worth of crypto long positions were liquidated within one hour during the steepest part of the drop, with total liquidations reaching about $1.68 billion over the past 24 hours. 

The broader cryptocurrency market followed Bitcoin’s decline, with major tokens falling between 7%–9%. Ethereum was hovering close to $2,750, as BNB and XRP were trading at approximately $850 and $1.75, respectively.

At current levels, Bitcoin is trading just above its November dip near $81,000. Market participants are closely watching this zone, as a decisive break could open the door to a deeper move toward the April 2025 lows near $75,000, which formed during tariff-related market stress earlier in the year.

Fed leadership speculation rattles risk assets

One of the factors weighing on sentiment appears to be renewed uncertainty around U.S. monetary policy leadership. Traders reacted to reports that President Donald Trump may nominate former Federal Reserve Board member Kevin Warsh to replace current Fed Chair Jerome Powell. 

Trump said he would announce his nominee on Friday, a day after publicly criticizing the Fed for not cutting interest rates. Prediction market Polymarket showed odds of Warsh being selected surging to 90%, up sharply from 37% just hours earlier.  

Before the shift, some investors had expected a more dovish candidate, such as BlackRock fixed-income chief Rick Rieder. This threat of an even more aggressive Fed policy puts additional strain on already weak crypto markets, which are extremely sensitive to liquidity expectations.

Analysts see correction, not collapse

Despite the sharp move, several analysts describe the current decline as a corrective phase rather than a structural breakdown. Technically, Bitcoin failed to hold a rebound above $83,800, keeping downside risks in focus. Some analysts now point to the November low near $80,600 as a near-term test.

Market analyst CryptoZeno noted that Bitcoin’s returns have turned negative in recent months, down about 26% since last July, following a strong expansion phase in mid-2025. 

The concept of leverage unwinding is supported by derivatives data. Previous declines of 8% to 10% in futures open interest have been accompanied by local price lows, such as declines in February-March, early April, and mid-November 2025.

These patterns suggest forced selling may be approaching exhaustion rather than signaling a prolonged downtrend.

Strategy stock slides as Bitcoin breaks key support

The sell-off also hit crypto-linked equities. Strategy Inc. (NASDAQ: MSTR), widely known for holding Bitcoin as a core treasury asset, fell as much as 9.63% on Thursday, trading near $143, close to its 52-week low. 

The stock often amplifies Bitcoin’s moves due to the company’s large exposure. Earlier this week, Strategy bought 2,932 BTC for $264 million, lifting its total holdings to 712,647 BTC, roughly 3.4% of Bitcoin’s fixed supply. 

While the accumulation underscores long-term conviction, the recent price drop highlights the short-term volatility risks tied to corporate Bitcoin strategies. Investors are, at least, considering macro uncertainty, heavy lever unwinds, and key technical levels. 

It will probably be determined by the overall market response to the changes in Fed leadership and liquidity expectations in the coming days whether Bitcoin will stabilize around the existing support or fall further.

Also Read: Bitcoin Falls Below $85K as $850M Gets Liquidated in Market Sell-Off