Bitcoin miner Canaan reported a net loss of $88.7 million for the first quarter of 2026, as falling Bitcoin (BTC) prices squeezed margins and triggered a significant inventory write-down.

The company posted total revenue of $62.7 million for the quarter ending March 31, a sharp decline from the $196.3 million it recorded in the previous quarter, according to a Tuesday press release.

Industrial mining equipment remained the company’s primary revenue driver at $39.6 million, though sales tumbled 75% from the prior quarter. Self-mining contributed $19.1 million, while the home mining segment brought in $2.7 million, a category that more than doubled year-on-year.

Source: Canaan

“Although average Bitcoin prices and hashprice declined significantly quarter-over-quarter, our bitcoin production experienced a comparatively smaller decrease, reflecting the resilience of our mining operations and continued hashrate deployment,” Jin (James) Cheng, chief financial officer of Canaan, said.

A $25 million inventory write-down weighed on the quarter’s gross loss of $23 million, while loss from operations reached $54.3 million.

Related: Bitcoin turns risk on as stocks hit new highs and miner profits rise: Is $85K BTC next?

Canaan’s self-mining hashrate surges 66%

Canaan expanded its self-mining footprint to 11 exahashes per second of installed computing power, a 66% jump from a year earlier. The company held 1,808 Bitcoin on its balance sheet as of March 31, valued at approximately $121 million.

In the quarter, Canaan also completed the acquisition of Cipher Mining’s 49% stake in three West Texas joint venture projects totaling roughly 4.4 EH/s in hashrate capacity and 120 megawatts of power. The deal, closed through a share issuance rather than cash, gives Canaan access to power rates below three cents per kilowatt-hour on the ERCOT grid.

Looking ahead, Canaan guided Q2 revenues between $35 million and $45 million, a further sequential decline.

Canaan shares closed down 3.54% at $0.4827 on Monday, shedding a further 7.71% in pre-market trading to $0.4455, according to Yahoo Finance.

Related: Hut 8 refinances Bitcoin-backed loan with $200M FalconX deal

Major miners report losses in Q1

Across the sector, major miners including Riot Platforms, Core Scientific, CleanSpark and TeraWulf all reported widening losses in Q1. MARA topped the group with a $1.3 billion net loss, roughly $1 billion of it tied to non-cash mark-to-market adjustments on its Bitcoin holdings.

As mining margins compress, a growing number of miners are pivoting toward AI and high-performance computing as an alternative revenue stream. On Monday, HIVE Digital Technologies announced plans to build a 320-megawatt AI data center campus near Toronto, capable of supporting more than 100,000 GPUs at full build-out.

Magazine: Guide to the top and emerging global crypto hubs — Mid-2026

Quick Overview

• Rocket Lab (RKLB) shares surged 5.1% on Monday, reaching an intraday peak of $138.38 with trading volume 36% higher than usual.
• First-quarter fiscal 2026 revenue reached $200.35M, marking a 63.4% increase year-over-year and surpassing analyst projections of $189.65M.
• Deutsche Bank increased its price target from $73 to $120; Craig Hallum upgraded the stock to Buy from Hold.
• Cantor Fitzgerald’s Andres Sheppard identified the forthcoming Neutron rocket launch as a “major catalyst” for the stock.
• Wall Street consensus stands at Moderate Buy, with 11 Buy ratings and 4 Hold ratings; the mean price target is $100.17.

Shares of Rocket Lab (RKLB) advanced 5.1% during Monday’s trading session, peaking at $138.38 intraday before closing at $131.16. The session saw 32.1 million shares change hands, representing a 36% increase over typical trading volumes.

Rocket Lab USA, Inc., RKLB

The upward momentum came after the company posted impressive first-quarter fiscal 2026 results on May 7. Revenue totaled $200.35 million, comfortably exceeding the Street’s $189.65 million expectation and representing a 63.4% jump compared to the prior-year period.

Earnings per share registered at ($0.07), matching consensus forecasts. The company continues to operate with a negative net margin of -26.87% and a return on equity of -11.72%.

Rocket Lab closed the quarter with a contract backlog valued at $2.2 billion and confirmed access to over $2 billion in available liquidity.

Rocket Lab characterized the quarter as delivering record-breaking financial results, highlighting multiple significant contract wins and the successful completion of strategic acquisitions.

Wall Street Boosts Price Forecasts

Deutsche Bank significantly raised its RKLB price target on May 12, moving it from $73 to $120 while reaffirming its Buy rating. The investment bank noted that demand across Rocket Lab’s portfolio of services continues to accelerate.

Clear Street similarly increased its target, adjusting from $88 to $98 and maintaining its Buy recommendation. The firm highlighted the company’s record-setting Q1 revenue that exceeded projections by 5%, driven by robust performance in both launch operations and space systems divisions.

On May 8, Craig Hallum shifted its stance from Hold to Buy, establishing a $98 price objective. Citigroup confirmed its Outperform rating on the same date.

Andres Sheppard of Cantor Fitzgerald, recognized as a 5-star analyst, maintained his Overweight rating with a $96 target following the quarterly results. He suggested that a “major catalyst” may still lie ahead for investors.

Neutron Rocket Represents Key Milestone

Sheppard highlighted Rocket Lab’s forthcoming Neutron rocket as a critical element for future expansion. Company leadership reaffirmed that the Neutron program is progressing according to schedule for its inaugural launch later in the year.

With 87 successful launches already completed, Rocket Lab holds a competitive advantage over emerging rivals still working to validate their technology, according to Sheppard’s analysis.

Cantor Fitzgerald projects Rocket Lab will execute 27 launches during fiscal 2026, spanning both its Electron and Haste rocket platforms.

The aerospace company maintains launch facilities in New Zealand and the United States. Its three-pronged rocket portfolio — Electron, Haste, and Neutron — addresses distinct niches within the commercial space sector.

Institutional ownership accounts for 71.78% of outstanding RKLB shares. Vanguard expanded its holdings by 13.4% in the fourth quarter, while Baillie Gifford boosted its position by 47.2%.

Company insiders have divested 333,449 shares valued at approximately $28.3 million during the past 90 days.

The Street’s overall stance is Moderate Buy, derived from 11 Buy recommendations, 4 Hold ratings, and zero Sell opinions issued over the last three months. The consensus price target of $100.17 suggests potential downside from current trading levels following the stock’s recent sharp advance.

RKLB currently trades well above its 50-day moving average of $78.81 and its 200-day moving average of $70.85, indicating the stock has experienced substantial momentum.

Bitget Wallet has integrated xStocks infrastructure, unlocking access to more than 130 tokenized stocks and ETFs for its 90 million users through its self-custodial wallet platform. The move broadens Bitget Wallet’s tokenized real-world assets portfolio to exceed 300 products, spanning equities, commodities, precious metals and index-linked assets, the company confirmed on Tuesday.

The expanded offering includes tokenized equities with a trading history that Bitget says surpassed $30 billion in transaction volume since launching in 2025. Access to these assets is restricted to jurisdictions where tokenized securities are permitted, with the United States, United Kingdom and other sanctioned regions remaining off-limits.

Bitget Wallet emphasizes zero trading fees and gasless execution, leveraging both request-for-quote (RFQ) and automated-market-maker (AAM) liquidity models. Users trade tokenized assets from the same interface used for cryptocurrency trading, swaps and custody while maintaining control of their private keys and funds.

Behind the scenes, Bitget Wallet is operated by Payward, the parent company of Kraken, which completed the acquisition of Backed Finance in late 2025 to bolster its tokenized equities capabilities.

Key takeaways

• Bitget Wallet expands tokenized assets to more than 300 products by integrating xStocks, opening access to 130+ tokenized stocks and ETFs for its vast user base.
• Tokenized equity products have processed over $30 billion in trading volume since the feature launched in 2025, with geographic restrictions limiting availability in the US, UK and other jurisdictions.
• Trading is offered through RFQ and AAM liquidity models, with zero trading fees and gasless settlement, streamlining participation in tokenized markets.
• Payward’s Kraken now operates Bitget Wallet, following the acquisition of Backed Finance, signaling ongoing consolidation in the tokenized-assets space.
• The broader market for tokenized equities is expanding rapidly, with major exchanges entering or expanding their offerings and data suggesting substantial growth potential in the coming years.

Bitget’s expansion underscores a shifting landscape for tokenized equities

The integration of xStocks into Bitget Wallet marks another milestone in a crowded race to bring real-world assets onto crypto rails. By connecting tokenized equity and other real-world assets directly into a wallet that already supports crypto trading and custody, Bitget aims to reduce the friction typically associated with accessing traditional financial instruments through digital-native interfaces. The stated model—zero fees and gasless execution—lowers the barrier to entry for new users and could accelerate activity in this niche, especially among traders seeking diversified exposure beyond crypto.

From a user experience standpoint, the arrangement promises a unified portal where traders can switch between crypto and tokenized assets without leaving the Bitget ecosystem. The ability to keep private keys in users’ hands while tapping into the liquidity of real-world instruments highlights a core attraction of tokenized assets: custody remains with the user, even as access is broadened via a centralized platform.

Industry observers are also watching how the governance and liquidity frameworks underlying tokenized stocks evolve. Bitget’s use of both RFQ and AAM liquidity models mirrors a broader industry push to balance price discovery with efficient execution, particularly for assets that may have less liquidity than their fiat-backed counterparts. In practice, RFQ can offer price transparency through dealer quotes, while automated market makers provide continuous liquidity at the potential cost of wider spreads during periods of volatility.

Competitive dynamics and the market trajectory for tokenized equities

Bitget’s announcement arrives amid a flurry of activity as major crypto platforms push further into tokenized stocks and stock-linked derivatives. In March, Coinbase launched stock perpetual futures for international users, delivering leveraged, 24/7 exposure to U.S. equities through its derivatives framework. Kraken has expanded its xStocks business with bundles that combine crypto and tokenized stock portfolios, alongside tokenized equity perpetual futures for non-U.S. users. Earlier this year, Binance signaled a renewed interest in tokenized equities after stepping back from its stock-token business in 2021 following regulatory scrutiny in Europe.

Market data from RWA.xyz paints a picture of a still-nascent but accelerating market. The tokenized equities sector has grown to roughly $1.5 billion in represented assets, with prominent tokens tied to companies such as Nvidia, Tesla, Alphabet, and others forming a core part of the landscape. Within this space, Ondo remains the largest tokenized stocks platform by asset value at about $883 million, followed by Bitget’s xStocks at roughly $391.5 million. The dominant assets tracked by RWA.xyz include tokenized versions of company shares and index-linked products such as those tied to the S&P 500, with Strategy and well-known names like Tesla and Nvidia among the frequently cited holdings.

These dynamics illustrate a broader shift as traditional financial infrastructure increasingly overlaps with crypto-native tooling. The presence of major players in tokenized equities signals growing investor appetite for regulated exposure to real-world assets via blockchain rails, while regulatory environments continue to shape where and how these products can be offered. For participants, the takeaway is clear: the bar for access to tokenized equities is gradually lowering, but regulatory clearance and platform risk remain the central considerations for what comes next.

Looking ahead, investors and builders should watch how custody approaches evolve as more platforms integrate tokenized equities into unified wallets, how liquidity models adapt to varying levels of on-chain activity, and how regulators respond to a market that blends traditional securities with decentralized technologies. The coming quarters will reveal whether the current expansion translates into sustained user adoption and meaningful liquidity across a broader spectrum of real-world assets.

As competition intensifies, the key questions for readers are what regulatory clarifications will emerge, how platforms will balance access with compliance, and which tokenized-asset offerings will reach scale first. The trajectory suggests tokenized equities will remain a developing frontier—one that could reshape how both institutions and individual traders approach traditional markets through a crypto-enabled lens.

Two members of a self-professed memecoin “cult” have been arrested after jumping into the enclosure of simian sensation Punch the monkey in an attempt to win a $1 million viral content competition.

Twenty four-year-old, Reid Jahnai Daysun, scaled the fence at the Ichikawa Zoo while 27-year-old Neal Jabahri Duan, filmed the stunt.

Zoo staff quickly escorted the intruder from the site, and the pair were arrested for obstructing zoo operations. 

Read more: Is PUNCH token the new Moo Deng?

The stunt is likely linked to a $1 million content competition launched by the team behind the “coin that doesn’t need an introduction” $MEMECOIN. The competition asks hopefuls to generate viral content and, presumably, help pump Memecoin’s price in the process. 

Indeed, to help them in their quest, content creators are able to claim their own Memecoin suit, like the one seen in the Punch stunt, for free so that they can go and “ignite the algorithm with viral chaos.”

The competition’s blurb states, “Our million-dollar war chest awaits the most daring, creative, and devastatingly viral content created.”

Read more: Memecoin traders praying for global hantavirus pandemic

Organizers of Memecoin cult aren’t sorry 

In response to the stunt, Memecoin’s official X account said that it is “endlessly grateful for the cult we have built together,” but that it wants its members “to respect local laws and never put yourselves, others, or any animals at risk.”

The account also defended the pair, claiming, “No monkey was touched or harmed during the stunt. From what we can tell, the sole intention was to give Punch a fresh new teddy bear to keep him company.”

The account’s interpretation of the pair’s “sole intention” here seems to ignore their actual intention of winning the competition.

Read more: ‘Crypto Robin Hood’ faked prison for clout, rugged memecoins for Palestine

The account offered to donate 1 million yen, a little over $6,000, to the zoo and help improve the enclosure and support their work. It offered no apology. 

The post was, however, subject to a community-note that pointed out that local Japanese laws, such as building intrusions and an obstruction of business by force, were potential violations.

Ichikawa Zoo is now upping security at monkey enclosure

In response, Ichikawa Zoo has “filed a damage report with the Ichikawa Police Station.”

It claims that it will expand the restriction area around the enclosure, install nets in the area, and hire staff to patrol the enclosure. 

The zoo noted that no abnormalities have been spotted in the monkeys, and that it’s also considering a full-scale ban on filming at Punch’s home. 

Another crypto influencer caught up in the drama was Ansem, whose real name is Zion Thomas. Ansem looks vaguely similar to the perpetrator in the suit, and so onlookers began to blame him for the crime. 

He denied the accusations and noted that he was in New York at the time. He said, “Ive caught a lot of strays on this app but getting accused of abusing a monkey in a Tokyo zoo while I’m on the Q Train is definitely a new one.”

Punch previously went viral last February when he was filmed bonding with an IKEA plushie. At the time, memecoiners cashed in on the monkey’s popularity by launching $PUNCH.

Read more: Kash Patel ‘spiderkash’ leak triggers dozens of Solana memecoin scams

The token has made recent 20% gains following the latest stunt, but is still down 94% from the all-time highs it enjoyed in February when it hit a market cap of $43 million.  

Memecoiners often do outlandish and illegal stunts for their tokens, such as setting themselves on fire, faking jet crashes, and illegally trespassing on the Hollywood sign.

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Crypto exchanges and executives are spending more on personal security as kidnappings, home invasions, and “wrench attacks” become a growing risk across the industry.

Bloomberg reported that crypto firms are raising security spending after a rise in violent attacks targeting executives, investors, and event attendees. The report linked the trend to kidnappings, home invasions, and physical threats aimed at forcing victims to transfer digital assets.

The concern has spread from online fraud to personal safety. In crypto, a “wrench attack” refers to an attack where criminals use threats or violence to force someone to hand over private keys, passwords, or access to wallets.

Related reports show the threat is no longer limited to wealthy public figures. crypto.news reported that France counted 41 crypto-linked kidnappings in 2026, equal to about one case every 2.5 days. The same report said France had become one of Europe’s main hotspots for crypto ransom attacks.

Coinbase security bill rises for Brian Armstrong

Coinbase’s latest proxy filing showed the exchange spent about $8.7 million in 2025 on CEO Brian Armstrong’s security and related protection measures, according to Bloomberg. That was up from about $6.2 million in 2024.

Coinbase’s prior proxy said the company may provide personal security services, including certified protection officers, secure lodging, and residential security, when its security team deems them needed. The filing said Coinbase views these costs as “reasonable and necessary expenses” for the company and stockholders.

The higher figure shows how public crypto executives now face risks that go beyond cyberattacks. Exchanges must protect data, wallets, employees, and, in some cases, the people most closely tied to their brands.

Gemini pays $400,000 per month for protection

Gemini has also raised executive security spending. Its latest filing said the company entered a January 2026 services agreement with Winklevoss Capital Management for executive protection, secure transportation, and risk advisory services.

The filing said Gemini pays a fixed monthly rate of $400,000, plus certain reimbursed expenses. The services cover the company’s CEO, president, their family members, and other individuals Gemini may name from time to time.

The arrangement shows how security is becoming a formal operating cost for crypto firms. It also reflects the exposure of executives whose names, wealth, and public profiles are closely tied to digital assets.

Crypto security risks move offline

Recent attacks show why exchanges are changing their approach. crypto.news reported that a French crypto worker fought off an armed intruder posing as a delivery driver during a home invasion. Police later arrested a suspect and charged him with attempted armed robbery.

Earlier market updates also covered a trader who offered a 10% bounty after claiming a violent $24 million crypto robbery. That case was described as part of the wider rise in wrench attacks, where criminals use force instead of code to steal crypto.

Minnesota lawmakers signing HF 3709 pave the way for state-based banks and credit unions to offer virtual-currency custody services in a nonfiduciary capacity beginning August 1. The measure, signed by Governor Tim Walz, amends state statutes to allow financial institutions to engage third-party service providers or subcustodians to facilitate crypto custody, provided funds are legally and operationally segregated from the institution’s assets and not treated as property of the bank or credit union.

According to Cointelegraph, the legislation is positioned within a broader regulatory push to bring crypto custody into regulated financial channels, reducing reliance on unregulated or out-of-state providers and aligning Minnesota institutions with compliance expectations around asset segregation and fiduciary risk controls.

The bill’s proponents argued the policy would enable Minnesota-based financial institutions to evolve alongside their customers while protecting residents from opaque or offshore custody arrangements. It takes effect in August and could influence operations across the state’s banking and credit-union landscape.

The Minnesota government information portal notes the scale of the state’s financial sector: as of May 2025, 240 commercial insured banks operated in Minnesota with about $128 billion in assets, and 82 member-owned credit unions were under the Minnesota Credit Union Network. Minneapolis is home to U.S. Bancorp, the country’s seventh-largest bank by assets, underscoring the potential impact on major state institutions.

The policy comes in a broader policy milieu. In Minnesota, lawmakers also advanced a separate bill to ban digital asset kiosks and ATMs in response to incidents of scams targeting residents, signaling a multifaceted approach to crypto-related risk within the state.

Key takeaways

• The new law authorizes Minnesota banks and credit unions to provide virtual-currency custody services in a nonfiduciary capacity starting August 1.
• Institutions may use third-party service providers or subcustodians to facilitate custody, with funds segregated from the bank’s or credit union’s assets and not treated as the institution’s property.
• The change could affect operations across the entire Minnesota financial-services sector, given the size of the state’s banking and credit-union markets.
• The move sits within a broader regulatory context, including federally focused custody initiatives and ongoing discussions about licensing and oversight for crypto firms seeking national charters.

Legal framework and operational mechanics in Minnesota

HF 3709 amends Minnesota’s statutes to permit supervised financial institutions to offer virtual-currency custody services without assuming fiduciary duties. The law explicitly allows engagement with third-party subcustodians or service providers to support custody activities, so long as the funds involved remain segregated from the institution’s assets and are not considered property of the institution. The framework thus creates a regulated channel for crypto custody within traditional banking and credit union operations, reducing the governance and insolvency risk associated with unregulated custody arrangements.

From a compliance perspective, the statute emphasizes asset segregation and operational separation, which are core elements of AML/KYC controls and banking supervision. While the law does not establish a broad fiduciary custodial obligation, it signals a move toward formalized oversight of crypto custody activities by Minnesota financial institutions, aligning state policy with evolving best practices in digital-asset stewardship.

Regulatory backdrop: federal charters, custody services, and market dynamics

Beyond state-level changes, the cryptocurrency custody landscape in the United States is shaped by federal regulatory initiatives and the pursuit of national charters. In a separate development, Payward—the parent company of the Kraken exchange—announced it had filed with the Office of the Comptroller of the Currency (OCC) for a national trust company charter intended to provide fiduciary custody and related services primarily for digital assets, subject to regulatory approval.

Historically, the OCC has approved or conditionally approved national-charter applications from other crypto-related firms, including Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos, with discussions ongoing regarding additional candidates. Reports indicate that regulators are weighing how fiduciary custody fits within a unified national framework, a trend that could shape how state custody provisions, like Minnesota’s HF 3709, interface with federal licensing and oversight. This broader regulatory momentum was highlighted in reporting on the sector’s evolving charter landscape.

For institutions and firms seeking synchronized operations across state lines, the interaction between state authorization for in-state custody services and federal charter options remains a key area of policy development. The emergence of national trust charters could influence bank and nonbank participants’ willingness to provide custody services across multiple jurisdictions, intensifying AML/KYC, licensing, and prudential requirements across the ecosystem.

Policy alignment, risk considerations, and future outlook

The Minnesota statute’s design reflects a deliberate policy choice to retain custody capabilities within regulated domestic institutions, fostering in-state competition while mitigating the risks associated with unregulated custody arrangements. The development matters in practice because it has the potential to reshape the custodial outsourcing decisions of Minnesota-based banks and credit unions, with implications for risk management, vendor governance, and regulatory reporting.

From a compliance perspective, the policy underscores the importance of robust third-party risk management, asset segregation, and clear accounting treatment for crypto assets. It also highlights how state-level actions interact with federal licensing trajectories and international-policy considerations, including alignment with AML/KYC frameworks and any forthcoming cross-border regulatory guidance. The ongoing dialogue about national charters and the possible standardization of custody practices points to ongoing uncertainty and the need for institutions to monitor regulatory guidance, licensing pathways, and supervisory expectations as they implement custody offerings.

For market participants, the Minnesota step adds another layer to the evolving custody infrastructure in the United States, particularly for institutions seeking to offer digital-asset services in a regulated banking context. As state policies converge with federal charters and harmonized supervisory expectations, banks and credit unions may reassess their procurement, risk, and governance approaches to crypto custody, potentially impacting licensing, vendor selection, and operational resilience.

Looking ahead, policymakers will likely weigh the balance between enabling regulated custody services and maintaining robust consumer protections. The interaction between Minnesota’s framework and federal charter initiatives will be a focal point for institutional risk teams, compliance programs, and legal counsel as custody services mature within the U.S. financial system.

Closing observations: Minnesota’s approach signals a measured move toward regulated, domestic custody services within traditional banking structures, while the federal-charter conversation indicates a broader institutional shift toward standardized, scalable digit asset custody. Institutions should track regulatory developments at both state and federal levels to assess licensing requirements, custody governance, and cross-border implications.

The post-bankruptcy trust representing Prime Trust’s creditors has taken legal aim at Swan Bitcoin, filing a suit in Delaware bankruptcy court alleging the Bitcoin custodian exploited insider access to move roughly $1 billion in assets from Prime Trust ahead of its August 2023 collapse.

The complaint, submitted by the Prime Trust litigation trust, asserts that Electric Solidus—the corporate entity behind Swan Bitcoin—received more than $24.6 million in cash, 11,994 BTC (valued at about $923 million at the time of filing), roughly $5 million in USDT, and smaller amounts of other digital assets before Prime Trust filed for bankruptcy. Central to the allegations is a Prime Trust senior executive who, while employed at Prime, also served as a paid adviser to Swan in a side arrangement dating back to July 2019.

Four days before Prime Trust met with Nevada regulators on May 26, 2023, the executive allegedly opened an encrypted chat with Swan Chief Executive Cory Klippsten and set messages to auto-delete every 24 hours. The feature was reportedly turned off the day after the regulatory meeting, when Swan withdrew more than 10,000 BTC from Prime Trust.

The lawsuit forms part of a broader effort by Prime Trust’s post-bankruptcy litigation trust to recover assets moved out of the custodian in the weeks leading up to its collapse. The filing argues Swan leveraged insider access to shift assets ahead of Prime Trust’s deteriorating financial condition, effectively prioritizing its own holdings over other customers.

“Swan knew to transfer fiat and crypto from Prime immediately prior to Prime filing for bankruptcy to avoid catastrophic losses,” the complaint states.

Cointelegraph reached out to Swan for comment, but did not receive an immediate response.

Related: House Committee pushes Trump to fill CFTC seats as crypto regulation ramps up

Key takeaways

• The Prime Trust litigation trust accuses Swan Bitcoin of using insider access to drain assets from Prime Trust in the run-up to its bankruptcy.
• Assets alleged to have moved include 11,994 BTC (approximately $923 million at filing time), plus cash and USDT, totaling around $1 billion in value referenced by the complaint.
• An unnamed Prime Trust executive with ties to Swan allegedly coordinated pre-bankruptcy transfers, including an encrypted chat that auto-deleted messages for a period.
• The filing claims an internal ledger created shortly before the Nevada regulator meeting, titled “PT FBO Swan Customers,” was designed to obscure that Swan’s funds were not actually held in a separate trust for Swan’s customers.
• The litigation seeks to recover assets under preferential transfer and fraudulent transfer provisions of the Bankruptcy Code and seeks to disallow future claims until restitution is made.

Insider leverage and the timing of asset moves

The core accusation centers on a Prime Trust executive who simultaneously served Swan as a paid adviser, creating a potential conflict of interest as Prime Trust’s financial health weakened. The filing describes a sequence in which, just days before a regulatory encounter in Nevada, an encrypted channel with Swan’s leadership enabled accelerated transfers. The purported purpose, according to the complaint, was swift asset relocation to avoid losses as Prime Trust faced mounting pressure.

Those transfers culminated in a notable withdrawal of more than 10,000 BTC shortly after the Nevada meeting, a move the suit characterizes as part of a broader evacuation of customer assets. Slack communications cited in the filing allegedly show Prime Trust staff scrambling to comply with requests or directives as the day closed, underscoring the chaotic context in which the transfers occurred.

Internal ledgers and the argument over asset custody

A focal point of the allegations is the claim that Prime Trust created an internal ledger labeled “PT FBO Swan Customers” on May 25, a record that did not exist previously. The suit contends this ledger gave the appearance that Swan’s assets were held in a separate, customer-specific trust, a structure that would complicate any future clawback efforts in bankruptcy. In substance, the complaint argues, those assets were not actually held in trust for Swan’s customers, suggesting an attempt to mislead creditors and regulators about asset custody during a period of financial stress for Prime Trust.

What the case seeks and potential implications

The Prime Trust trust seeks relief under the Bankruptcy Code’s preferential transfer and actual fraudulent transfer provisions. The plaintiffs also request a court order disallowing any future claims Swan might assert against the estate until restitution is made. If successful, the action could set a precedent for how transfers involving crypto custodians are treated in bankruptcy, with potential ripple effects for other platforms that rely on custodial arrangements during distress.

The case also spotlights broader questions about governance, insider relationships, and the potential for rapid asset movement in the crypto custody landscape. As regulators increasingly scrutinize custody practices and the pathways assets can take during financial duress, outcomes from this litigation may influence risk management standards and disclosure requirements across the sector.

Closing perspective

As the case unfolds, observers will be watching how the court addresses the credibility and scope of the transfers alleged in the filing, and whether restitution can be secured for Prime Trust’s creditors. The episode underscores the ongoing tension between rapidly evolving crypto custody models and traditional bankruptcy frameworks, raising questions about best practices for safeguarding customer funds when a custodian nears insolvency.

Key takeaways

• CHZ is up 5% in the last 24 hours and is now approaching the $0.05 resistance level.
• The derivatives data indicate that the bulls are in control at the moment.

Chiliz outperforms the broader crypto market

Chiliz (CHZ) is one of the best performers among the top cryptocurrencies, as the coin is up by 5% in the last 24 hours. Thanks to its latest rally, CHZ is trading at $0.049 and could rally higher in the near term.

The momentum indicators remain constructive, indicating that CHZ could extend its rally over the next few hours and days. 

Data obtained from CoinGlass shows that the futures’ Open Interest (OI) at exchanges in Chiliz surges to $80 million on Tuesday, up from $58 million in the previous week.

This is the highest Chiliz’s OI has been since January. The rising OI indicates that new or additional bullish positions are opening in the market, suggesting a bullish outlook for CHZ. 

Furthermore, Chiliz’s funding rates flipped positive on Sunday and surged to 0.0043% on Tuesday. The funding rate turning positive means that the bulls are firmly in control of the market.

CoinGlass’ long-to-short ratio for CHZ read 1.01 on Tuesday, after sitting in the red territory for over a week. 

Chiliz price forecast: The $0.051 resistance level remains a key challenge

The CHZ/USD 4-hour chart is bullish and efficient as Chiliz has outperformed the broader cryptocurrency market.

The cryptocurrency market is currently trading above key support levels thanks to its recent rally. The momentum indicators also suggest that the buyers could push CHZ’s price higher in the near term. 

The Relative Strength Index (RSI) at 58 shows that the bulls have regained control but still have more room for growth. 

The Moving Average Convergence Divergence (MACD) line has turned positive, with the histogram marginally above zero, hinting at a steady rally.

If the bullish scenario continues, the buyers would face immediate resistance at the recent swing high of $0.051. 

A daily candle close above this level would allow the bulls to extend the rally towards the $0.057 resistance and then the January high at $0.064.

However, if the sellers regain control, immediate support would emerge around the $0.047 Inducement Liquidity (ILQ). 

Failure to defend this support level would expose the other major zones around the $0.043 and $0.041.