Crypto World
Bitget Unlocks Pre-IPO Access for VIPs
Bitget, the world’s largest Universal Exchange (UEX), has introduced its UEX VIP Airdrop Season, a new tier of benefits designed to give VIP clients early and preferential access to high-demand pre-IPO opportunities following the launch of IPO Prime.
VIP users will receive priority exposure to preSPAX, the first asset listed under IPO Prime, designed to reflect the economic performance of SpaceX following its potential public listing. The program introduces two exclusive rounds of airdrops for VIP participants ahead of public subscription, allowing early positioning in one of the most closely watched private companies globally.
The promotion runs from April 13 to April 19, 2026, and is structured in two phases. The first phase, reserved for existing VIP users, features a dedicated airdrop pool of 760 preSPAX tokens. Eligible users can register within the initial window, with allocations distributed based on VIP tier across futures, spot, and asset categories. Airdrops for this phase are scheduled for April 16.
The second phase extends access to new participants through the VIP Fast Track program. Users who upgrade to VIP status during the campaign period will gain access to an additional 190 preSPAX token pool, with distribution taking place on April 20. Allocation is determined by VIP level at the close of the promotion, creating a direct link between user tier and access to the asset.
In total, the two phases represent a distribution of up to 950 preSPAX tokens, with combined value reaching approximately 500,000 USDT. In addition to early airdrop access, VIP users will receive enhanced subscription quotas once public participation opens.
“Access has always defined who participates in early-stage growth,” said Gracy Chen, CEO of Bitget.
“What is changing is how that access is being distributed. VIP users are no longer just receiving benefits within the platform, they are gaining earlier entry into opportunities that were traditionally out of reach.”
The launch reflects a broader shift in how access to high-growth assets is being structured. Opportunities linked to pre-IPO companies have traditionally been limited to institutional investors and closed networks. Through IPO Prime and the VIP Airdrop Season, Bitget is introducing a tier-based framework that expands participation while maintaining structured allocation.
Within Bitget’s Universal Exchange model, the VIP Airdrop Season represents an extension of how value is distributed across the ecosystem. By integrating pre-IPO exposure, tiered allocation, and continuous liquidity into a single environment, Bitget is redefining how high-value opportunities are accessed, moving beyond traditional boundaries between institutional and retail participation.
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About Bitget
Bitget is the world’s largest Universal Exchange (UEX), serving over 125 million users and offering access to over 2M crypto tokens, 100+ tokenized stocks, ETFs, commodities, FX, and precious metals such as gold. The ecosystem is committed to helping users trade smarter with its AI agent, which co-pilots trade execution. Bitget is driving crypto adoption through strategic partnerships with LALIGA and MotoGP™. Aligned with its global impact strategy, Bitget has joined hands with UNICEF to support blockchain education for 1.1 million people by 2027. Bitget currently leads in the tokenized TradFi market, providing the industry’s lowest fees and highest liquidity across 150 regions worldwide.
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Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.
The post Bitget Unlocks Pre-IPO Access for VIPs appeared first on BeInCrypto.
RAVE, the native token of RaveDAO, has surged more than 6,000% over the past month, capping off one of the most explosive rallies in the crypto market this year and reigniting debate about speculative excesses in digital assets.
The token jumped 198% in the last 24 hours alone and more than 5,600% over the past week, briefly pushing it into the top 50 cryptocurrencies by market capitalization. Prices climbed from roughly $0.25 to above $14 in just seven days, drawing widespread attention across trading platforms and social media.
RaveDAO positions itself as a Web3 music protocol aimed at bridging electronic dance music (EDM) culture with blockchain-based experiences. Its pitch includes on-chain ticketing, crypto-enabled payments at live events, and staking mechanisms tied to real-world rave revenues. The project has claimed partnerships with major industry names including Binance and OKX and reported several million dollars in revenue, helping fuel a narrative of real utility behind the token.
However, market observers say the scale and speed of the rally suggest something more complex, and potentially concerning, beneath the surface.
Blockchain data indicates that only about 24% of RAVE’s total supply is currently in circulation, with the overwhelming majority held in a small number of wallets, according to a post on X. Three large wallets, widely believed to be controlled by the project team, reportedly hold roughly 90% of the total supply. When expanded to the top 10 wallets, concentration exceeds 98%, leaving only a thin float available for trading.
That structure can amplify price movements dramatically. The analyst pointed to a sequence of events shortly before the rally, when wallets linked to the project quietly transferred millions of tokens to exchanges while prices were still below $0.50.
Within hours, trading activity surged, open interest in derivatives markets spiked above $200 million, and daily volume approached the token’s entire market capitalization.
At the same time, a heavily short-positioned market—reportedly with a majority of traders betting against the token—set the stage for a large-scale short squeeze. As prices rose, forced liquidations accelerated the rally, with millions of dollars in short positions wiped out in a single day.
Such dynamics, combined with thin liquidity, can create rapid, self-reinforcing price spikes that are not necessarily driven by organic demand.
The episode comes amid broader concerns about ongoing vulnerabilities and questionable practices in the crypto sector, including recent exploits and controversies involving other projects. For some analysts, RAVE’s surge is less a sign of a healthy market recovery and more evidence that speculative froth and opportunistic behavior remain entrenched.
The company behind Starknet is pivoting from pure infrastructure toward revenue-generating products built on its proprietary tech stack.
StarkWare, the Israeli company behind the Starknet Layer 2 network, is laying off an undisclosed number of employees and reorganizing into two independent business units as it attempts to convert its zero-knowledge technology leadership into sustainable revenue.
Co-founder and CEO Eli Ben-Sasson announced the changes in a company-wide town hall and a subsequent post on X, telling staff that StarkWare has become “too big and too inefficient” for the leaner, faster-moving strategy the company now requires.
“We built the best, safest, most battle-tested ZK tech in blockchain,” Ben-Sasson wrote. “We’ve redefined blockchain using our technology, but that’s not enough.”
The restructuring comes amid a collapse in Starknet’s revenue, which peaked near $6 million in November 2023 but has since fallen to roughly $4,000 in daily fees through the first half of April, per DefiLlama.
The decline is not unique to Starknet. Ethereum’s Dencun upgrade in March 2024 introduced EIP-4844, which replaced gas-intensive calldata with lightweight blobs and significantly slashed Layer 2 transaction fees. The upgrade was a boon for users but gutted fee revenue across the board for rollup providers, a dynamic that has only intensified over the past year. DeFi protocols deploying across multiple L2s have found that over 90% of their fee income still accrues on the Ethereum mainnet.
Under the new structure, StarkWare will operate two purpose-focused units, one led by researcher Avihu Levy and another led by Tom Brand, each serving as a general manager with dedicated business development, engineering, product, and go-to-market teams. Ben-Sasson said the company would adopt a “startup mode” mindset, emphasizing small teams, rapid experimentation, and iterating quickly toward product-market fit.
Levy recently led work on a quantum-safe Bitcoin transaction scheme that uses only existing Bitcoin consensus rules to sidestep the network’s contentious upgrade process. That research is broadly in line with the direction Ben-Sasson outlined for the new applications unit, which will focus on products with “immense potential revenue” that rely on StarkWare’s proprietary stack, including Cairo, Sierra, and its STARK-based cryptography, while minimizing dependencies on external L1 networks.
Additional leadership changes accompany the restructuring. CFO Ran Grinshtein will take over supervision of finance, human resources, security, and IT. Head of Core Engineering Gideon Kaempfer will become chief architect, reporting directly to Ben-Sasson. COO Oren Katz is leaving and will remain in the role through the end of April.
STRK, Starknet’s native token, is trading near $0.033, according to CoinGecko, down more than 95% from its all-time high in March 2024.
The cuts add to a wave of layoffs across the crypto sector this year. StarkWare, which closed its Series D at an $8 billion valuation in 2022 and has raised $287 million in total funding, declined to comment.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
The World’s oldest Parliament, the Isle of Man’s Tynwald, has passed the Foundations (Amendment) Bill 2025, creating the world’s first statutory framework that formally recognizes data as a legal asset – giving organizations a jurisdictional home where datasets can sit on a balance sheet, be licensed, used as collateral, and governed with the same structural clarity applied to physical property.
For decentralized AI protocols, that is not a minor jurisdictional footnote. That is the legal precondition they have been missing since inception.
Before this legislation, data operated in a governance vacuum across virtually every major jurisdiction. Under English common law, which the Isle of Man follows, property exists as either things in possession or things in action. Training datasets, model weights, and behavioral data logs fit neither category cleanly.
The Foundations (Amendment) Bill 2025 changes that by establishing Data Asset Foundations – a formal legal structure built on the island’s existing Foundations Act 2011 – that enables data to be recognized, governed, and monetized within a clear statutory framework.
“What’s unique here isn’t just that it’s a world-first legal framework, it’s the timing. AI is driving an exponential increase in data value, but ownership and structure haven’t kept pace. The Isle of Man is now the first jurisdiction seriously attempting to close that gap, and that’s where entire new markets tend to emerge,” said Samuel Cooling, Founder of Isle of Man-based AI-firm Cooling Strategies.
Yet, despite the emerging opportunity, a core question for DeAI operators remains: does this actually translate into enforceable digital ownership, or is this another regulatory sandbox with limited commercial reach?
- World-first framework: The Isle of Man is the first jurisdiction to establish a statutory framework recognizing data as a legal asset under the Foundations (Amendment) Bill 2025.
- Data Property Rights structure: Data Asset Foundations (DAFs) allow organizations to formally govern, license, and value datasets – enabling balance-sheet recognition and collateral use.
- Built on existing law: The framework extends the island’s Foundations Act 2011, giving it immediate statutory teeth rather than requiring new institutional infrastructure.
- DeAI implications: Decentralized AI protocols with community-contributed training data now have a jurisdiction where that data constitutes a recognized legal asset subject to enforceable Digital Ownership rights.
- CLOUD Act protection: The framework explicitly protects data assets from foreign access laws including the U.S. CLOUD Act, preserving Isle of Man jurisdictional independence.
- Commercial pathways unlocked: DAFs enable data valuation, licensing, fiduciary services, and use of datasets as investment collateral – with MannBenham’s subsidiary Manavia already administering foundations with datasets at “staggering” valuations.
- Competitive regulatory pressure: The UK Law Commission has proposed similar changes but has not legislated – the Isle of Man’s first-mover status creates direct competitive pressure on larger jurisdictions.
Discover: How AI Agents Are Reshaping On-Chain Demand
What the Foundations (Amendment) Bill 2025 Actually Changes for DeAI Operators
The practical mechanics matter here. A Data Asset Foundation under the new framework is a legal entity – built on the Foundations Act 2011 structure – that holds data as its primary asset.
Organizations can deposit datasets into a DAF, assign governance rules, define access terms, and leverage that data as a formally recognized asset in financing, licensing, or acquisition contexts.
For DeAI protocols specifically, this resolves three long-standing structural problems. First, training datasets – often the most valuable asset a decentralized AI project holds – have had no clear legal status in any major jurisdiction.
Under this framework, a DeAI protocol operating through a DAF on the Isle of Man holds its training data as a recognized legal asset, not an intangible without formal status.
Second, data contributed by community members across distributed networks can now be governed with auditable, enforceable rules – addressing the provenance and ownership disputes that have plagued open-source AI models.
Third, institutional investors and lenders can now extend financing against data assets held in DAFs, unlocking capital pathways that were previously unavailable to data-intensive AI startups.
Compare this to the UK, US, and EU positions. The UK Law Commission proposed recognizing a third category of personal property for digital assets in 2023, but has not legislated it.
In the US, data remains largely unrecognized as property at the federal level – the legal treatment varies by sector, with no unified framework.
The EU’s approach under GDPR and the Data Act focuses on data access rights and portability, not formal asset recognition with balance-sheet implications. None of these frameworks give a DeAI operator what the Isle of Man now offers: a statutory home for data as a legal asset with enforceable Digital Ownership structures.
Aga Strandskov, Head of Data Strategy at Digital Isle of Man, put it plainly: “The challenge has never been the availability of data, it has been the lack of a trusted framework to use it with confidence. What this legislation provides is the legal and governance infrastructure that has been missing.”
MannBenham Managing Director Miles Benham went further, noting that gaming operators – one of the island’s core industries – “sit on extraordinarily valuable data estates that have never been formally recognized in law,” and that DAFs change that calculus entirely. This is the structural unlock that comparable jurisdictions have discussed and failed to deliver.
This is directly analogous to Japan’s reclassification of crypto as a financial instrument under the amended FIEA – both moves convert previously ambiguous digital assets into legally recognized instruments with enforceable rights and commercial infrastructure attached. The Isle of Man just did that for data.
The post New ‘Data Asset’ Laws: Why AI Agents Might Move to the Isle of Man appeared first on Cryptonews.
Establishing a strong Bitcoin (BTC) uptrend in 2026 remains a challenge, as exchange-traded fund (ETF) flows have shown limited growth since peaking above $60 billion in 2025.
At the same time, inflows to the gold ETF also dropped by nearly 25% in Q1 and the lack of a capital rotation into BTC signals muted institutional demand.
Bitcoin demand acceleration lacks pace
A recent report from Ecoinometrics shows a clear shift in the demand and persistence of Bitcoin exchange-traded fund (ETF) flows. Before the October 2025 price peak for BTC, ETF inflows often came in extended streaks, including a 15-day run of $4.4 billion in June 2025, which helped sustain upside momentum.
That consistency has faded in recent weeks. The recent direction of ETF flows has changed quickly, with inflow streaks lasting only a few days. Outflows have also clustered, reaching up to 10 consecutive days, totaling $3.2 billion in January, suggesting more reactive positioning.
The cumulative data reinforces this slowdown. Bitcoin ETF flows have plateaued at $55–$60 billion in 2026, showing little net growth. Over the same period, gold ETF flows dropped sharply to near $45 billion from around $60 billion, without a corresponding pickup in Bitcoin demand.
Ecoinometrics explained that the Federal Reserve’s lack of relief reinforces the slowdown in demand. US Treasury yields have shifted higher across maturities, with the 30-year yield rising toward 4.9% from 4.7% six months ago, while the shorter durations (10-year bond yield) also moved to 4.3% from 3.8% in October 2025.
The elevated yields offer competitive returns, reducing the need for sustained ETF-driven exposure to Bitcoin. Ecoinometrics added,
“As long as the bond market holds this view, Bitcoin is operating without a liquidity tailwind. And without that tailwind, sustained upside becomes much harder to build.”
Related: Bernstein says Bitcoin market already priced in quantum risk
Will Bitcoin overcome a key resistance level?
Crypto trader Ardi explained that one reason the current BTC range near $74,000 refuses to break is that retail and professional traders show similar behavior. Long positions drop as the price tests resistance, while the short exposure increases.
Hyblock’s four-hour chart highlights this repeated pattern. Long accounts decline sharply at highs, while short positioning builds at the same levels. These flows treat upward moves as opportunities to exit rather than extend exposure.
The profit-taking from longs meets fresh short entries in the order book. That interaction reinforces the upper boundary and interrupts attempts to retain the uptrend.
Ardi said that a shift would require stronger long-term accumulation near the resistance, where buyers absorb available supply rather than react to it. For now, the positioning data near $75,000 continues to cap each rally.
However, the above condition could soon change as early Bitcoin adopter Willy Woo noted the return of capital flows into BTC for the first time since January. In an X post, Woo said,
“Capital flows into BTC just flipped positive, first time since January. Liquidity is repairing… spot remains stable while derivatives after being destroyed 10 Oct is now making its second attempt at rebounding. 80k remains key test level.”
Related: Nigel Farage-backed Stack BTC adds $2.7M in Bitcoin to treasury
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
The exchange’s head of security said there had been two incidents involving “inappropriate access” to client data, involving about 2,000 user accounts.
Kraken’s chief security officer said that the company would not be negotiating with a criminal group threatening to release certain information related to client data.
In a Monday X post, Nick Percoco reported an attempt to extort an unspecified amount from the cryptocurrency exchange by an unnamed group “threatening to release videos of our internal systems with client data shown.” He said Kraken’s systems “were never breached” and user funds were not at risk from the attempt.
“We will not pay these criminals,” said Percoco. “We will not ever negotiate with bad actors.”
According to Percoco, there had been two incidents involving “inappropriate access” to client data in February 2025 and “more recently,” involving about 2,000 user accounts. He added that Kraken was working with federal law enforcement to investigate the criminal group, potentially leading to arrests.
Related: US Treasury expands cybersecurity threat intel to crypto industry
The incident highlights how crypto exchange security protecting personal data and user funds remains paramount as the industry continues to expand. There have been numerous instances where individuals tied to crypto companies or with digital asset holdings have been extorted or faced attempts at extortion.
Coinbase faced similar extortion attempt
In May 2025, Coinbase reported that cybercriminals threatened to leak user data in an attempt to extort $20 million out of the crypto exchange.
The breach, which the exchange said had compromised data from about 70,000 users, was the result of bribes to customer support contractors.
More than $178 million was lost across major crypto incidents in March 2026, up from February’s $49.3 million, according to blockchain intelligence firm Nominis.
Authorization abuse continued to represent the primary attack vector, according to the report, with multiple incidents last month involving victims unknowingly approving transactions that gave hackers direct access to their funds.
Magazine: Should users be allowed to bet on war and death in prediction markets?
Nigel Farage has become the first sitting UK MP to publicly buy Bitcoin, fronting a £2 million ($2.5 million) purchase through Stack BTC Plc.
The move marks a historic crossover between politics and crypto, and signals growing institutional confidence in Bitcoin as a treasury asset.
Inside the £2.5 Million Bitcoin Treasury Strategy
The transaction, executed on April 13, 2026, positions Farage as both the first sitting Member of Parliament and the first UK political party leader to publicly participate in a Bitcoin purchase.
The deal was carried out at Blockchain.com’s London headquarters, where Farage was filmed taking part in the process.
According to Stack BTC, the move is a “landmark moment,” amid the firm’s strategy to build a corporate Bitcoin reserve.
Farage, a key shareholder, emphasized the rationale that a Bitcoin treasury company must actively accumulate the asset to remain credible.
The $2.5 million buy was funded through recent capital raises totaling over £4.2 million ($5.25 million). Stack BTC’s model combines acquiring profitable UK businesses with converting surplus capital into Bitcoin, effectively treating BTC as a long-term balance sheet asset.
The company previously held a small position of 21 BTC but is now scaling aggressively with 68.19 Bitcoins in its treasury as of this writing.
This mirrors a broader trend among firms globally adopting Bitcoin as “digital gold” amid inflation concerns and fiat currency volatility.
Backing the initiative is Kwasi Kwarteng, former UK Chancellor and Executive Chairman of Stack BTC, adding political and financial credibility to the strategy.
“…our mission to build the UK’s premier Bitcoin treasury company and put London at the centre of this new monetary era,” wrote Kwarteng in a post.
Market Impact and Investor Signals
Farage’s move lands at a sensitive moment for crypto markets, with Bitcoin experiencing recent price weakness. The timing reflects conviction, buying during dips rather than chasing highs, much like what MicroStrategy and Michael Saylor does.
The main question, however, is whether this signals a broader wave of UK corporate Bitcoin adoption. Public, politically-linked participation could normalize BTC exposure among institutional and retail investors alike.
However, the move raises questions around optics and potential conflicts of interest, given Farage’s equity stake in the company executing the purchase.
Policy Pressure and Crypto Adoption
Farage has long advocated for the UK to become a global crypto hub. Reform UK previously accepted cryptocurrency donations and has pushed for more favorable digital asset policies.
This high-profile purchase intensifies pressure on UK regulators and rival political parties to clarify their stance on crypto.
It also highlights the growing intersection between political influence and financial innovation.
The immediate financial impact of the £2 million purchase is modest, but its symbolic weight is significant. As Stack BTC continues to deploy capital into Bitcoin, markets will watch for follow-on buys and balance sheet growth.
More importantly, Farage’s move could accelerate political debate around crypto regulation, taxation, and institutional adoption in the UK.
If additional public figures or companies follow suit, Bitcoin’s role in mainstream finance—and politics—may expand rapidly in the months ahead.
The post UK Far-Right Leader Nigel Farage Buys Over $2 Million in Bitcoin appeared first on BeInCrypto.
As quantum computing edges closer to practical reality, a nuanced risk picture is taking shape for Bitcoin. Rather than a sudden, network-wide catastrophe, researchers and industry observers are highlighting a tiered vulnerability focused on dormant addresses with exposed public keys. Many of these are among the oldest coins from Bitcoin’s early era, and their combination of long-standing exposure, high value, and inertia in defense makes them salient targets for a first generation of quantum-enabled attackers, should such capabilities mature.
Key takeaways
- Dormant Bitcoin addresses with exposed public keys represent a concentrated risk, especially among early-era holdings that haven’t moved in years.
- Quantum threats affect public-key cryptography (ECDSA/Schnorr) more directly than hash functions, meaning on-chain exposure of a public key is a critical vulnerability.
- The risk separates into on-spend attacks (tight time windows tied to block confirmations) and at-rest attacks (longer horizons when keys are exposed but no immediate transaction is triggered).
- Large, long-dormant holdings — including many 50 BTC block rewards from the early mining era — create a high-value target pool that could attract quantum-driven attacks first.
- Beyond technology, the dormant-wallet challenge raises governance questions about asset salvage, protection, and how the protocol might accommodate or address historically inaccessible coins.
Where the risk converges on Bitcoin’s cryptography
Bitcoin relies on two cryptographic pillars: the hash function SHA-256 for mining and block security, and public-key cryptography (ECDSA/Schnorr) for transaction signatures. Quantum computers would affect these components in distinct ways. Hash functions are relatively resilient; even with Grover’s algorithm, they would be weakened but not rendered obsolete. Public-key cryptography, however, presents a sharper exposure path. With Shor’s algorithm, a sufficiently powerful quantum computer could derive a private key from a known public key. In practical terms for Bitcoin, that means any coins whose public key has been revealed could theoretically be spent by an attacker if a quantum-capable adversary can perform the computation in time to act on a vulnerability.
The on-spend vs at-rest distinction and why it matters
Understanding the timing of attacks is crucial to assessing risk. There are two broad categories of quantum attacks:
On-spend attacks
- Trigger a transaction to reveal the user’s public key.
- Attackers must derive the private key within a short window — roughly the span of a single block, or about 10 minutes — to successfully move funds.
At-rest attacks
- Target coins whose public keys are already exposed on-chain.
- Aim for a longer horizon: days, weeks, or longer — with time as the primary constraint, not a rapid transaction window.
- No immediate transaction trigger is required; attackers can plan and execute when they have sufficient quantum capability.
The contrast is telling. On-spend attacks face a tight clock, while at-rest attacks operate on a long-term timescale, hinging on technical breakthroughs rather than a race against a block window. If a large tranche of the supply has already disclosed its public keys, the window for opportunistic action expands dramatically.
Dormant wallets: three vulnerability factors
Dormant wallets—those that have not actively moved funds or upgraded security—combine three attributes that amplify risk:
- No defensive action: Active holders can migrate funds, refresh security models, or move assets into newer, quantum-resistant formats. Dormant holders lack such pathways, leaving coins exposed without recourse.
- Long exposure windows: Since public keys may already be on-chain, attackers can operate offline with less urgency, reducing the urgency imposed by short confirmation times.
- High-value concentration: Many early Bitcoin holdings have appreciated substantially in value. High-value, dormant coins create a prime target profile for any future quantum-era exploit.
Notes from industry observers emphasize that coins in inactive wallets cannot upgrade their security after the fact. Thus, the burden of adoption and migration would fall to active participants and future protocol changes, not the dormant accounts themselves.
Which wallets are most exposed
The risk is not uniform across the blockchain. Several categories stand out as more exposed than others:
Old P2PK outputs
- These early formats reveal public keys directly on-chain when spent, offering little additional protection against quantum-enabled adversaries.
Address reuse
- When an address is spent from and then reused, the public key becomes visible after the first spend. Any remaining funds in that address become more vulnerable as well.
Certain modern script formats, such as those associated with Taproot, also expose public-key material in ways that could fall into an at-rest exposure category under quantum assumptions. While Taproot was designed to improve efficiency and privacy, it does not entirely escape the theoretical risk if keys remain exposed long-term due to address reuse or legacy holdings.
The scale of the problem: dormant coins dominate the risk
Quantifying quantum risk goes beyond theoretical math; it hinges on measurable exposure. Reports indicate that billions of dollars’ worth of Bitcoin remains in addresses whose public keys are exposed, with a significant portion tracing back to early-era mining rewards. A notable share of these coins has not moved for more than a decade, creating a silent pool of assets that could become vulnerable as quantum capabilities advance. Among the most cited examples are the large blocks rewarded to miners in Bitcoin’s infancy — many of these blocks yielded 50 BTC rewards that subsequently remained idle for years. This concentration implies that the largest quantum-targets are often the largest Bitcoin holdings.
A deeper challenge: Dormant wallets and network governance
The emergence of a quantum threat for dormant wallets also raises governance and policy questions that extend beyond pure cryptography. If a future quantum attack were to surface, the Bitcoin community might face difficult choices about asset salvage, fund protection, or even temporary protocol adjustments to address long-dormant coins. Questions include whether such coins should remain spendable, whether there should be mechanisms to protect or freeze longitudinal holdings, and how public policy interacts with the immutable nature of the protocol when a subset of assets appears irrecoverable by design.
Why this doesn’t mean Bitcoin is broken
Crucially, observers stress that there is no current, widely accepted evidence that quantum computers capable of breaking Bitcoin’s cryptography exist today. The development path toward practical, scalable quantum systems is expected to span years, if not decades, of sustained engineering progress. The risk is not imminent, but incremental and evolving. In the near term, the impact is likely to be selective rather than universal as early-stage quantum capabilities emerge and defenses are refined. Active users can adapt more quickly than dormant wallets, which means mitigation may initially favor those who actively manage their keys and upgrade security models.
What can be done in the meantime
Holders and the broader ecosystem can take concrete steps to reduce exposure and accelerate readiness:
- Minimize public-key exposure: Avoid address reuse and curb unnecessary early revelation of public keys, maintaining better separation between on-chain activity and key exposure.
- Migration pathways: Develop and promote clear routes for moving funds into quantum-resistant formats as these technologies mature, ensuring a smooth transition for users who want to upgrade their security posture.
- Continued protocol research: Ongoing work explores integrating quantum-resistant cryptography with Bitcoin’s core properties, aiming to preserve security and decentralization without introducing new central points of failure.
Practically, these measures primarily benefit active participants today, highlighting the gap between movable funds and long-dormant assets. The broader lesson is that a staged approach to upgrading cryptography may be essential to maintain resilience as technology evolves.
In summary, the dormant-wallet vulnerability reframes the quantum risk narrative for Bitcoin. It underscores a layered challenge: the network isn’t threatened as a monolith, but certain pockets of the supply could be more fragile than others if and when quantum capabilities advance. The future resilience of Bitcoin will depend not only on breakthroughs in quantum hardware but on decisive action by the ecosystem to strengthen, migrate, and adapt the way keys are managed across the lifecycle of the blockchain.
Readers should watch for ongoing research into quantum-resistant cryptography, milestones in post-quantum upgrades, and policy discussions about how to handle historical holdings that may be irretrievably exposed to future computational breakthroughs. The next phase will likely hinge on practical migration pathways and protocol-level safeguards that can extend protection to both active and dormant users without compromising Bitcoin’s core principles.
Crypto World
Crypto wallet firm Exodus sues W3C and its CEO Garth Howat, seeking to compel $175M acquisition
Listed cryptocurrency firm Exodus Movement (EXOD) is suing W3C, the parent company of crypto card and payments specialists Baanx and Monovate, and its chief executive, Garth Howat, to complete its $175 million acquisition of W3C, agreed in November of last year.
A lawsuit in the Delaware Court of Chancery seeks to compel Howat to comply with obligations under the November 24, 2025 Stock Purchase Agreement.
Howat and W3C accepted $80 million worth of loans from Exodus upon signing the deal, with $10 million given to Howat personally, who then declared that they did not need to repay these loans, according to the lawsuit.
“Defendants Garth Howat and W3C are engaged in a blatant, reckless, and improper campaign to escape closing a transaction for the sale of W3C to Exodus that they had promised to complete in a binding agreement,” the lawsuit states.
“They have attempted to pilfer millions of dollars from one of their own subsidiaries. They have falsely backdated documents filed with government authorities. They have purported to summarily dismiss entire boards of directors, as well as the CEO and CFO of their key operating entity, and replace them with lackeys of their choosing, despite being precluded from doing so by the binding agreement,” it said.
Howat did not immediately respond to a request for comment.
W3C companies Baanx and Monovate were behind the Crypto Life digital asset cards business that worked with the likes of Mastercard and MetaMask.
JP Richardson, CEO and Co-founder of Exodus commented, “We have a binding agreement with W3C and expect it to be fully honored. We’re confident in the path forward and anticipate a swift resolution.”
TLDR
- The American Bankers Association disputed the White House analysis on stablecoin risks.
- Bankers said policymakers must study a market where stablecoin yield remains allowed.
- Lawmakers drafted a compromise to restrict yield-like rewards on stablecoins.
- The Senate Banking Committee has not scheduled a hearing on the bill.
- Senator Cynthia Lummis called for urgent action to advance the legislation.
U.S. banking leaders have challenged a White House report that downplayed risks from stablecoins. They argue that stablecoin yield could draw deposits away from traditional banks. The dispute has stalled the Digital Asset Market Clarity Act in the Senate.
Bankers Dispute White House Findings on Stablecoin Yield
The American Bankers Association rejected a recent Council of Economic Advisers report. The group said the report examined the wrong policy scenario. It argued that economists should have studied a market where stablecoin yield remains permitted.
ABA economists wrote, “The CEA paper minimizes the core risk by starting from the wrong question.” They said a ban on yield for payment stablecoins would protect insured deposits. They also said such a rule would support stablecoins as payment tools rather than deposit substitutes.
Bankers warned that allowing yield could speed deposit migration. They said returns from stablecoins may exceed bank interest rates. They argued that customers would move funds to chase higher rewards.
The ABA estimated that stablecoin markets could grow from $300 billion to $2 trillion. It said yield would act as the main driver of that expansion. It added that growth at that scale would reshape deposit flows.
Senate Negotiations Stall Over Crypto Bill
Lawmakers have struggled to advance the Digital Asset Market Clarity Act. The bill seeks to set rules for U.S. crypto markets. However, disagreements over stablecoin yield have delayed committee action.
Senators from both parties considered bankers’ concerns about deposit flight. They discussed how depositors fund lending activities. They then drafted a compromise to limit certain reward structures.
The compromise would ban yield on holdings that resemble deposit accounts. It would allow activity-based rewards similar to credit card programs. Still, banks have not publicly endorsed the proposal.
Senator Cynthia Lummis urged action on the social media platform X. She wrote, “America needs Clarity.” She also said the time to move the bill forward is “now or never.”
The Senate Banking Committee has not scheduled a hearing. Lawmaker advocates had expected a session before the month’s end. As of this week, no official date appears on the calendar.
Bank representatives have kept a lower public profile. However, they continue to circulate policy papers and letters. They argue that early safeguards would limit systemic shifts.
The White House economists had said banks face limited risk. They examined a scenario where Congress bans yield. Bankers countered that lawmakers must assess a no-ban environment.
‘Aave Will Win’ passed with 75% support, awarding Aave Labs a $25 million stablecoin grant and 75,000 AAVE in exchange for directing 100% of product revenue to the DAO treasury.
The Aave DAO on Sunday approved the first binding component of the “Aave Will Win” framework, which founder Stani Kulechov calls “the most important proposal in Aave’s history,” directing 100% of revenue from all Aave-branded products to the DAO treasury and consolidating economic rights under the AAVE token.
The vote closed with roughly 75% support, a significantly stronger result than the initial Temp Check in early March, which narrowly cleared amid concerns that Aave Labs-linked addresses had tipped the balance.
The approved package includes a $25 million stablecoin grant from the DAO’s Collector Contract, split between an immediate $5 million allowance and streamed payments over six and 12 months, plus 75,000 AAVE tokens vesting linearly over 48 months from the Ecosystem Reserve, double the timeline outlined in the original temp check.
In exchange, Aave Labs commits to routing all revenue from Aave Pro, the Aave App, Horizon, Aave Kit, and swaps on aave.com to the DAO treasury, a stream that Kulechov said is already generating $10 to $20 million on top of protocol revenue, which hit $140 million in 2025.
“If you own AAVE, you own not just the economic rights of the protocol, but the brand, the users, and the integrations,” Kulechov wrote on X, laying out an ambitious multi-year roadmap spanning consumer products, fintech integrations, and regulatory licensing.
The proposal resolves a governance crisis that erupted in December when a delegate discovered that Aave Labs had been redirecting roughly $200,000 per week in interface fees, previously flowing to the DAO, to itself via a CowSwap integration. That controversy spiraled into a broader confrontation over tokenholder rights, brand ownership, and the power balance between Labs and the DAO.
The fallout was severe. BGD Labs, one of the core teams working on Aave V3, announced its departure in February. The Aave Chan Initiative followed in early March. And last week, risk management firm Chaos Labs became the third major contributor to exit.
The AAVE token has lost roughly 75% of its value since its August 2025 high near $356, though it rallied approximately 5% following the vote to trade near $95.
The vote comes just two weeks after Aave V4 launched on Ethereum mainnet, introducing a hub-and-spoke architecture that allows independent lending markets to share liquidity through a unified system. The framework formally ratifies V4 as the protocol’s long-term technical foundation.
Under the new framework, Kulechov outlined a zero-tolerance policy on “value leakage,” requiring that all service providers build exclusively for Aave with measurable performance goals.
Aave is DeFi’s largest lending protocol with roughly $25 billion in total value locked across multiple chains.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
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