ARK Invest’s biggest crypto stock purchases over the past three trading days were Coinbase and Circle, whose shares have fallen 17% and 27.6%, respectively, over the past month.

Tech-focused asset manager ARK Invest has capitalized on the recent crypto market downturn, buying a combined $43.5 million worth of shares in crypto firms such as Coinbase and Circle over the past three trading days.

Data from ARK Invest shows the asset manager bought another 122,544 shares in Coinbase (COIN) worth about $18.6 million since Thursday, while adding another 169,777 shares in Circle (CRCL) worth roughly $12.9 million over the same time frame.

The firm also purchased nearly $5.2 million worth of shares in crypto exchange Bullish (BLSH) and added another $5.12 million in brokerage firm Robinhood (HOOD), which has pushed aggressively into the crypto tokenization space in recent months. It also bought $1.69 million worth of shares in crypto-friendly bank SoFi Technologies (SOFI) on Monday.

ARK’s purchases come as investors have turned bearish on these crypto-related stocks. CRCL, COIN and BLSH have fallen 27.6%, 16.9% and 26.3%, respectively, over the past month. During that time, Bitcoin (BTC) slipped to a near two-year low of $58,190, while confidence that the CLARITY Act will pass before the US midterm elections in November has faded.

Changes made to ARK’s ARK Innovation ETF (ARKK) on Monday. Source: ARK Invest

Most of the newly purchased shares were added to the ARK Innovation ETF (ARKK), the firm’s flagship fund, followed by the ARK Next Generation Internet ETF (ARKW).

Related: Kiwoom eyes Bithumb stake as Korean brokerages push into crypto: Report 

The ARK Blockchain & Fintech Innovation ETF (ARKF) was also topped up with crypto-related stocks.

ARK also added to its positions in Elon Musk’s SpaceX (SPCX) and software intelligence platform Palantir (PLTR) over the past three trading days.

Over the same period, ARK reduced positions in Alibaba (BABA), Roku (ROKU), Strata Critical Medical (SRTA) and several other companies.

Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves 

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Bitcoin BTC$59,511.04 is down over 1% on Tuesday as the Japanese yen slipped to four-decade lows against the U.S. dollar, triggering volatility in currency markets.

The leading cryptocurrency by market value traded below $60,000, holding below the pivotal 200-week simple moving average.

On Monday, Strategy, the world’s largest publicly listed BTC holder, authorized plans to buy back as much as $1 billion each of its preferred and Class A common shares, and is launching a $1.25 billion “monetization program” to raise capital with bitcoin sales. Essentially, it may sell BTC worth over a billion dollars in an already weak market — a sharp pivot from founder Michael Saylor’s longtime mantra of “never sell your bitcoin.”

This pivot, however, may offer little long-term solace, according to some observers. Strategy’s preferred stock STRC, a yield-generating play, has cratered in recent weeks, weakening the company’s major funding channel for BTC purchases.

“The can has been kicked down the road for a year or two,” Jeff Dorman, CIO of Arca, said on X.

Prediction-market platforms are increasingly trying to control more of their own trading stack—an “operational consolidation” trend that analysts at Bernstein say could accelerate mergers and acquisitions across crypto exchanges, brokerages, sportsbooks, and consumer trading apps.

In a research report released on Monday, Bernstein argued that major players are consolidating both distribution and execution functions, tightening links between what used to be separate parts of the market. The shift matters for investors and operators because it can change fee structures, reduce dependence on external infrastructure providers, and potentially reshape how regulators view these products.

Key takeaways

• Bernstein characterizes the sector’s shift as “operational consolidation,” with platforms merging distribution, brokerage, exchange, and clearing functions.
• Several mainstream consumer and prediction platforms have moved toward tighter in-house routing and infrastructure control, according to Bernstein’s examples.
• Owning more of the stack can preserve fees that previously went to outside partners, making acquisitions an efficient way to fill gaps or gain licenses.
• Greater vertical integration may also increase legal and regulatory pressure as the line between financial trading and gambling becomes harder to define.
• State-by-state approaches—alongside ongoing legal challenges—could limit how quickly consolidation proceeds.

Platforms move from partnerships to vertical control

Historically, prediction markets often relied on third-party infrastructure for routing, exchange operations, or clearing—arrangements that made it easier to launch products without building everything internally. Bernstein says that model is weakening as leading consumer platforms consolidate functions across the prediction-market workflow.

In its report, Bernstein pointed to examples spanning different parts of the ecosystem. Robinhood has routed major World Cup contracts through Rothera, the exchange it jointly owns with Susquehanna, according to Bernstein’s account. DraftKings is also cited by Bernstein for launching DKeX and shifting volume away from venues that previously handled some execution, including CME and Crypto.com infrastructure.

The report also highlights consolidation efforts at the crypto-operations layer. Bernstein cited Coinbase’s acquisition of The Clearing Company—framed in related coverage as a move tied to expanding prediction-market capabilities—and Coinbase’s launch of event contracts, adding to the pattern of larger consumer crypto firms seeking greater control over the prediction-market stack.

Why “owning the stack” can change deal economics

Bernstein’s central argument is straightforward: integration can be a direct business advantage. By controlling more of distribution, brokerage, execution, and clearing, platforms can keep revenue streams that would otherwise be shared with specialized partners.

That matters because acquisitions can become a faster path to operational control than building from scratch. Bernstein suggested that deal-making may accelerate as companies pursue missing components—whether that means distribution reach, exchange capabilities, or clearing infrastructure—using purchases to close gaps and strengthen end-to-end product delivery.

However, vertical integration doesn’t only affect profitability. It also reshapes the competitive landscape: businesses that historically operated in different industries—consumer finance apps, sportsbooks, exchanges, and crypto trading infrastructure providers—can end up competing under a single set of product and customer expectations.

Regulatory conflict is the largest constraint

Bernstein singled out regulation as the principal friction point for larger integrations. As prediction markets blend with brokerages, sportsbooks, and exchanges, regulators may scrutinize whether specific products should be treated as financial derivatives or as gambling.

The report suggests that these classifications are not merely academic. They drive enforcement priorities, licensing requirements, and how courts determine jurisdiction. Bernstein warned that such questions could feed antitrust disputes as firms attempt to merge capabilities across multiple market segments.

The regulatory tension has already played out in the U.S. Minnesota enacted what the CFTC described as the first outright ban on prediction markets, while Illinois adopted legislation requiring platforms to obtain a state license before offering sports event contracts—developments Bernstein cited through earlier coverage.

Kalshi challenged restrictions in both states, arguing that federally regulated exchanges fall under the CFTC’s exclusive authority. Bernstein’s framing implies that these legal fights create a practical uncertainty: consolidation may make commercial sense, but execution could remain constrained until regulators and courts clarify where federal derivatives oversight ends and state gambling authority begins.

What to watch as consolidation accelerates

With platforms continuing to move routing, exchange functions, and clearing in-house, the next phase of the sector may hinge less on product launches and more on legal outcomes—particularly whether courts establish a clearer boundary between federal trading regulation and state gambling rules. Until that boundary hardens, consolidation could keep happening, but with deal structures and operating decisions likely shaped by ongoing jurisdictional risk.

Onchain demand stayed soft through the slide, according to Glassnode data. The number of active addresses, a rough gauge of how many users are actually transacting, sat around 618,000, in the middle of its recent range rather than breaking higher.

The value of coins moving across the network held near $4.2 billion, just above the bottom of its range around $3.6 billion, pointing to subdued rather than surging activity, the firm said in a Monday report.

Total transaction fees, or what users pay to move funds and a read on competition for space in each block, kept contracting. Together, the three say demand has not picked up even with prices lower.

Adding to the caution, Strategy, the largest corporate holder of bitcoin, said Monday it may sell more than a billion dollars of the token under a new program to shore up its finances, a reversal of founder Michael Saylor’s long-standing refusal to sell.

The prospect of those sales hangs over an already thin market. That leaves crypto where it has traded for weeks, pinned by a strong dollar and a lack of fresh demand rather than any single shock.

The next tests are whether the dollar’s climb stalls and whether the yen’s slide forces Japan to step in, a move some warn could unwind the cheap-yen borrowing long used to fund risk trades worldwide.

• The token traded in a $0.0435 range and continued to hold above the $1.00 psychological support level.

• The main burst of activity came on June 29 at 17:00, when volume reached 86.5 million XRP, about 67% above the 24-hour average.

• Price later consolidated between $1.03 and $1.06, leaving the market range-bound rather than in a confirmed recovery.

Technical Analysis

• The key development is that XRP continues to defend $1.00 even after a 19% monthly decline.

• The leverage reset improves the setup. Open interest has fallen sharply, funding has turned negative and forced long liquidations have cleared out crowded positioning.

• The on-chain picture is stronger than the chart. Active addresses are rising, ETF inflows are continuing and exchange reserves remain stable, but price is still below major moving averages.

• XRP remains capped by resistance near $1.10, with larger barriers near the 50-day EMA around $1.20 and the 100-day EMA around $1.31.

• The 4-hour RSI has recovered from oversold territory to 46, but momentum remains below the neutral 50 level.

What traders should watch

• $1.00 remains the key support level. A break below it would put $0.90-$0.87 back in focus.

• $1.06 is the first short-term resistance level, followed by $1.09-$1.10, where recent rallies have stalled.

Bitcoin (BTC) steadied itself over the weekend after a volatile week that saw its value drop to its lowest level since September 2024.

The flagship cryptocurrency fell to a low of $58,000 on Thursday, struggling against sustained ETF outflows, a hawkish Federal Reserve, concerns around Strategy, and a stronger US Dollar.

Bitcoin Stabilizes After Sharp Selloff

BTC experienced a substantial downturn last week, falling from a high of $65,553 on Monday to a low of $58,000 on Thursday. ETF outflows, a stronger US Dollar, a hawkish Federal Reserve, and the ongoing geopolitical situation continue to pressure Bitcoin and the broader market. However, price action steadied over the weekend and has reclaimed the $60,000 level after falling to a low of $58,800 earlier today.

Bulls have defended $58,000, a key support level, despite substantial selling pressure. BTC maintained its position above $58,000 over the weekend despite fresh US-Iran tensions over a volatile ceasefire. Markets had registered a substantial recovery earlier this month after tensions in the Middle East thawed, easing oil prices and inflation concerns. However, the rally soon fizzled out, pushing the price to sub-$60,000 levels.

BTC’s price action could go one of two ways. If the flagship cryptocurrency fails to regain momentum and slips below $58,000, a drop toward $55,000 or lower can be expected. However, a clean recovery above $60,000 would suggest buying pressure returning.

Strategy Under Pressure

Concerns around Strategy’s capital structure have also impacted market sentiment. STRC, the company’s preferred stock product, is currently trading around $74.57, significantly lower than its intended $100 mark. Annual dividend obligations have risen to $1.2 billion, while dividend coverage dropped to 14 months thanks to declining cash reserves. Strategy used its stock premium to raise capital for more BTC acquisitions. However, weak pricing has made it substantially harder for the Michael Saylor-led firm to depend on this model to raise additional capital.

Meanwhile, CryptoQuant has urged Strategy to pause its acquisitions and rebuild its cash reserves. However, the plea looks to have fallen on deaf ears, with Michael Saylor teasing another buy, posting the company’s Bitcoin tracker with the caption “We’re going to need more charts.”

Analysts Divided

Meanwhile, analysts remain divided on Bitcoin’s price action. Analyst Market Watcher highlighted a downtrend from July and August highs of around $70,000 and $67,000, adding that a break of the line would make investors more willing to deploy capital. The analyst described the current price range as an “indecisive summer chop.” However, he added that a break of the main trend around $58,000 could change the entire setup.

Another analyst, EGRAG CRYPTO, highlighted Bitcoin’s 12-month cycle, adding that the current cycle may be different from the usual “three years up one year down” cycle. Meanwhile, CryptoQuant analyst Crazzyblockk stated that Bitcoin is currently in an undervalued zone after its short-term holder realized dominance fell to 27.6%. Previous cycles have witnessed market tops when short-term holders controlled the realized capital. Bear markets witness the opposite, as short-term holders realize their losses and realized capital drops.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The US Securities and Exchange Commission has won its fraud suit against crypto platform NanoBit Limited, nearly two years after the agency accused it of stealing hundreds of thousands of dollars from at least 18 investors between 2023 and 2024.

The announcement by the SEC on Monday came nearly two weeks after the US District Court for the Eastern District of New York entered a final judgment against four entities and two individuals tied to the NanoBit fraud case on June 16.

The SEC alleged that NanoBit’s operators impersonated financial professionals in WhatsApp groups to trick investors into depositing funds on the fake platform. Instead, the funds were allegedly diverted to scheme participants, the SEC said. 

The case is another example of the SEC’s continued crackdown on crypto-themed fraud under the Trump administration, even as the agency has softened its regulatory approach to crypto companies and revised what it considers to be a securities offering.

On May 29, the SEC charged a Texas man with allegedly running a fraud scheme that raised more than $12 million from roughly 150 investors by falsely claiming to use AI-powered trading bots to generate guaranteed returns. 

In April, the SEC also charged crypto executive Donald Basile and two companies he controlled for raising roughly $16 million from hundreds of investors through false claims tied to a crypto token called Bitcoin Latinum. 

NanoBit perpetrators ordered to pay $5.4 million

The New York court found that the defendants violated US securities laws and issued permanent injunctions against them, prohibiting them from engaging in the issuance, purchase or sale of securities. 

Related: Crypto scammers exploit World Cup ticket demand, TRM warns 

NanoBit was ordered to pay a $1.18 million fine, disgorgement of more than $532,000 for the ill-gotten gains and prejudgment interest of nearly $81,200, totaling nearly $1.8 million.

NanoBit’s affiliates — Radiant Horizons, Sweet Karma and Zhao Deli — were each ordered to pay a $1.18 million fine, while one of the scheme’s main orchestrators, Jiajie Liu, was ordered to pay about $120,000 in penalties, disgorgement and prejudgment interest.

In the September 2024 complaint, the SEC alleged that NanoBit investors were solicited on social media, such as Instagram, before being added to the WhatsApp groups.

Investors were allegedly shown a fake dashboard depicting rising returns, creating the illusion that their funds were growing. 

It allegedly persuaded investors by falsely claiming that its affiliate, NanobitUS Securities, was an SEC-registered broker, while also promoting fake initial coin offerings (ICOs) promising substantial returns. 

However, “no transactions took place on the NanoBit platform and investors’ funds in fact went to scheme participants who wired more than $2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars’ worth of investors’ crypto assets,” the securities regulator alleged.

The SEC alleged that investors who sought to withdraw funds were met with excuses and asked to pay large fees, while others were removed from the WhatsApp groups for questioning the platform’s legitimacy.

Magazine: The end of anonymity? AI could unmask crypto’s hidden identities 

Ethereum co-founder Vitalik Buterin has laid out a longer-term cryptography blueprint for private, onchain voting that aims to avoid the need for a trusted group to handle ballots. In a technical essay published Monday, Buterin argues that a cryptographic technique known as indistinguishability obfuscation (iO) could let blockchain systems compute voting results while keeping individual votes hidden and limiting opportunities for collusion.

The proposal centers on replacing traditional threshold-style committees—groups that collectively decrypt encrypted votes—with protected programs designed to reveal only the final outcome. Buterin cautions, however, that the approach is not yet practical, with the most conservative versions requiring extremely heavy computation and faster variants depending on less-tested security assumptions.

Key takeaways

• Buterin’s proposal uses indistinguishability obfuscation (iO) to create “protected programs” that can compute vote tallies without exposing ballot contents.
• The design is intended to reduce reliance on threshold committees that jointly decrypt results, potentially lowering the trust needed for private onchain voting.
• Even with iO, blockchains remain essential because protected programs can’t stop being copied or support state updates on their own.
• Buterin describes current constructions as computationally impractical, positioning the idea as research direction rather than a near-term deployment plan.

From encrypted ballots to protected programs

Buterin frames iO as a method for hiding software logic. In his explanation, iO transforms a piece of code into a protected program such that others can run it to obtain the intended output, but cannot inspect the internal code or retrieve embedded sensitive data. He emphasizes that this approach focuses on concealing the program itself, rather than solely masking the data it processes.

In the context of voting, the idea would be to package the tallying and eligibility logic into an obfuscated program. Voters could submit encrypted ballots, and the system would execute the protected program to produce a final tally without exposing how individual participants voted. In effect, this would remove a key requirement of many private voting schemes: coordinating a set of operators (a threshold committee) that holds decryption capabilities and must behave honestly.

Buterin also notes that blockchains still have to do the heavy lifting for public coordination and evolving state. While iO can hide computation details, it cannot prevent copying or manage changing information by itself, so a blockchain—or similar distributed infrastructure—would remain necessary for the system to function over time.

Why dropping threshold committees matters

Private onchain voting typically involves operational trust assumptions, even when votes remain cryptographically protected. In many designs, groups of operators must safeguard information and follow the protocol correctly—particularly during decryption or tallying. Buterin argues that eliminating (or sharply reducing) the need for threshold committees could make decentralized governance more resistant to manipulation.

In his view, reducing this dependency could also lower the risk of insider interference and enable voters to participate without exposing voting behavior. However, the core promise is not only privacy for individuals; it is also a shift in who has meaningful control over the outcome. Instead of multiple parties jointly controlling decryption, the tally would be derived from running a protected program intended to reveal only what the system needs to disclose.

That said, the essay’s emphasis on security assumptions and computational feasibility underlines that the practical challenge is formidable. The approach is designed to minimize trust—but it still must be engineered so that security holds under realistic operating constraints.

Security trade-offs and why deployment is still out of reach

Buterin’s assessment is explicit: the idea, while conceptually aligned with “almost no trust assumptions,” is not ready for real-world use. He describes the most conservative constructions as requiring what he calls “galactic” amounts of computation—suggesting that the computational overhead would overwhelm any system intended for everyday participation.

He also points to a tension faced by cryptographic research more broadly: faster constructions tend to rely on weaker or less-tested security assumptions. In other words, an implementation that is technically feasible may not yet offer the same level of assurance as the most conservative theoretical design. This leads Buterin to characterize iO-based private voting less as a deployment-ready system and more as a long-term research direction.

For investors and builders watching Ethereum’s roadmap, the takeaway is that privacy research is moving toward more rigorous “how it’s computed” privacy—yet the path from cryptographic theory to production-grade systems will require major advances in efficiency and confidence in assumptions.

How this fits into Buterin’s broader privacy agenda

This iO voting essay builds on earlier work by Buterin linking advanced cryptography to stronger privacy and reduced coercion risk. In October 2024, he connected iO with private voting in an Ethereum roadmap he published, arguing that the technique could improve privacy guarantees.

He has also pushed for practical privacy steps within Ethereum’s ecosystem. In April 2025, Buterin proposed a more immediate privacy roadmap that called for integrating privacy tools into existing wallets. That proposal also advocated for stronger protections against data collection by infrastructure providers used by wallets to access Ethereum, reflecting an emphasis on privacy not just at the cryptographic layer but in the surrounding network services.

Buterin has additionally directed personal funds toward privacy-preserving projects. According to earlier coverage by Cointelegraph, on Jan. 30 he earmarked 16,384 Ether (ETH) (about $45 million at the time) to support initiatives focused on privacy, open infrastructure, and self-sovereign tools.

Read together, these threads show a consistent direction: privacy improvements are being pursued both through long-horizon cryptographic designs like iO and through nearer-term engineering changes that could reduce exposure to tracking and data collection.

For now, the most important question is what—if anything—can be improved to make iO-based voting computationally viable without sacrificing security confidence. Readers should watch for follow-up research that narrows the performance gap and clarifies which security assumptions would be acceptable for real deployments.

Bitmine Immersion Technologies said it added more than 27,000 Ether to its treasury last week after completing a $43 million purchase. The update comes as the company prepares for greater visibility with its inclusion in the Russell 1000, an index that many funds use as a benchmark for passive investing.

In a disclosure shared on Monday via PR Newswire, Bitmine said its Ether holdings reached just over 5.7 million ETH. The company reported buying the tokens at an average price of $1,569 per Ether and said it now holds about 4.7% of Ethereum’s 120.7 million token supply—moving it closer to its stated objective of owning 5% of the asset.

Key takeaways

• Bitmine reported a $43 million Ether purchase that increased holdings to just over 5.7 million ETH at an average $1,569 per token.
• The firm said its stake is now roughly 4.7% of Ethereum’s circulating supply, edging toward a 5% target.
• Bitmine’s Russell 1000 inclusion is expected to bring additional institutional demand through funds that track the index.
• Despite broader Ethereum developments, Bitmine’s chairman described the prior week as difficult for crypto investors after Ether fell about 8%.
• Other crypto-linked firms were also added to the Russell 3000 Index recently, expanding how traditional investors encounter crypto treasury businesses.

A growing Ether treasury amid a volatile week

Bitmine’s announcement frames the latest acquisition as part of a continued push to build a larger corporate Ether position. After its recent buy, the company said it holds slightly above 5.7 million Ether and has reduced the gap to its 5% supply goal.

The filing also highlights how market price swings can complicate treasury strategies even when the broader Ethereum ecosystem is active. Bitmine chairman Tom Lee characterized the preceding week as challenging for crypto investors, saying Ether fell by 8%. In his remarks, he noted Ethereum-related positives—including the creation of Ethlabs—and pointed to a softer tone from the Bank of England regarding stablecoins.

Even with those developments, Lee said the selloff played out in ways that can influence investor behavior. He later attributed some of the pullback to what he described as “window dressing,” where investors reduce exposure to assets that have declined over recent months.

Why Russell 1000 inclusion could change Bitmine’s investor base

Beyond the treasury update, the more market-facing development is Bitmine’s addition to the Russell 1000, which tracks the largest 1,000 US companies. Bitmine said this step may increase investor demand for its shares because many mutual funds, ETFs, and pension funds follow Russell indices and must buy constituents once they are added.

Lee previously discussed this mechanism when Bitmine was first under consideration for the Russell index in May. He said passive index funds can account for up to 25% of the market capitalization of stocks included in the index.

In Monday’s comments, Lee said Russell 1000 membership is expected to add “hundreds and possibly thousands” of additional institutional investors as equity owners of Bitmine. For a company whose business model is closely tied to holding and managing Ether exposure, a shift in the shareholder base can matter: institutional ownership patterns can influence liquidity, trading volume, and the range of investors willing to hold crypto-treasury equities over the long run.

Stock movement follows Ether, despite new corporate catalysts

Bitmine’s share performance on Monday reflected both the company’s corporate update and the broader pressure on Ether. The stock rose 1.7% to close at $13.80, according to the article, but it has fallen roughly 9% over the past week in tandem with Ether’s decline.

That pattern underscores an important tension for investors watching crypto treasury businesses: even when the company executes meaningful purchases or secures index inclusion, the underlying price of Ether can still dominate near-term equity performance. In other words, Bitmine’s catalysts may improve access to new capital sources, but the valuation of its holdings remains directly linked to market conditions for ETH.

Broader index adoption for crypto-related firms

The Russell inclusion story is not unique to Bitmine. The article noted that rival crypto treasury firms Sharplink and Forward Industries—along with Gemini and Galaxy Digital—were also added to the Russell 3000 Index on Friday. The Russell 3000 tracks the largest 3,000 US companies, which can create additional pathways for traditional market participants to build exposure to crypto-linked public equities.

For investors, this trend signals a gradual normalization of crypto-related businesses inside mainstream index ecosystems. However, it also raises a watchpoint: as more crypto treasury firms enter large-cap indices, their stock demand may become more mechanically tied to index-tracking flows, potentially increasing short-term trading activity around reconstitution dates.

At the same time, it does not remove the central risk for equity holders—Ether’s market volatility. Bitmine’s chairman’s remarks about window dressing and short-term reductions in exposure illustrate how quickly sentiment can shift even when broader Ethereum developments continue.

Investors should watch whether Bitmine’s Russell 1000 entry translates into sustained institutional ownership or whether near-term trading remains dominated by ETH price movements. The next key question is how the company continues to balance incremental Ether acquisitions with the equity volatility created by shifting crypto market sentiment.

In recent days, USDT has traded at a premium across several Indian exchanges, with premiums generally ranging between 7% and 10%, depending on liquidity and market activity. On CoinSwitch, USDT has traded at around a 9% premium over the past few days.

“At CoinSwitch, users always see the live buy and sell price before placing an order. We do not charge any hidden fees beyond our disclosed brokerage. The premium reflects prevailing market conditions rather than any platform-imposed markup,” Singhal said.

Both CoinDCX and CoinSwitch attribute the premium entirely to organic supply-and-demand dynamics: more buyers than sellers, thinner liquidity near the global reference price, and a market mechanism — not platform pricing decisions — setting the rate. Neither executive directly addressed the ED’s enforcement action or its effect on token supply in their statements.

Nevertheless, the supply squeeze that drove the premium unusually higher could be linked to the enforcement action.

Market makers and liquidity provides could have scaled back from sourcing USDT overseas after the ED’s action, which would show up exactly as a supply-side liquidity shortage, the same mechanism both Thakur and Singhal describe in general terms.

Operating on Indian exchanges has been relatively tougher for market makers because of a flat 30% tax on gains, no allowance to offset losses, and a restrictive 1% tax deducted at source (TDS). These rules have long contributed to market dislocations.