Jack Mallers says he left Twenty One Capital voluntarily and with “no severance” despite collecting roughly $1.6 million in cash on the way out and over $2.2 million in total compensation. He also claims he forfeited his options.

In a statement issued hours after stepping down as CEO of the Tether-controlled BTC treasury company, Mallers claimed to have left “voluntarily” and mentioned his lack of severance and options as though that summarized the situation.

However, omitted from his post was his lavish, seven-figure separation agreement and the millions of dollars he made personally while common shareholders’ investment halved — at best — under his tenure.

Below are details about Mallers’ failure to accomplish a variety of business goals at Twenty One. However, we must first address his staggering compensation and its conspicuous omission from his social media.

Jack Mallers made over $2.2 million from Twenty One

As part of his separation package, Twenty One awarded Mallers a final $50,000 salary payment, which is apparently so “small” it doesn’t qualify as severance.

Twenty One is also paying him $420,455 for his “vested restricted shares,” plus an incredible $1,151,046 in cash to repurchase 226,860 of his shares at $5.23 apiece.

That’s more than $1.6 million in cash for Mallers to resign “voluntarily,” paid to a man who claims he took no severance and forfeited his options.

The company is also paying him out for shares above the current market, which is trading for less than $5 today.

The document never uses the word “severance,” which is presumably how Mallers can claim that he didn’t take any — the most incredible technicality.

Despite his seven-figure payday that was nowhere to be found on his social media, he did forfeit some extras.

The company cancelled his unvested options and restricted stock for nothing, and he kept 1,522,407 vested options with a $14.43 strike price, which are currently out-of-the-money due to Twenty One shares trading below $5.

Those options are the part he can safely call worthless. Of course, they were already out-of-the-money before he “forfeited” them.

Researchers at the Bank for International Settlements (BIS) found that dollar-backed stablecoins are creating a new form of “digital dollarization” that appears largely unaffected by capital controls, particularly in emerging markets.

The new study suggests governments may have less ability to curb stablecoin adoption than traditional foreign-currency bank deposits.

BIS researchers analyzed foreign-currency deposits and dollar-pegged stablecoin inflows across more than 130 economies, finding that both tend to increase during periods of macroeconomic stress. Unlike traditional bank deposits, however, stablecoin flows showed little response to capital controls or other FX restrictions. The authors said this likely occurs because “stablecoins are partly circulating outside the regulatory perimeter.”

Stablecoins could still undermine monetary sovereignty by allowing households and businesses to shift into dollars outside the banking system, particularly in emerging markets with weak currencies or limited access to reliable financial services, the study said.

Despite those risks, the researchers found little evidence that deposit dollarization weakens the transmission of monetary policy, though countries with higher foreign-currency deposits faced a somewhat greater risk of elevated inflation.

BIS said the findings suggest policymakers may need new tools to manage financial stability as stablecoins become more widely used, arguing that regulations designed for traditional banking and foreign-currency deposits may be less effective in a tokenized financial system.

Related: Japanese logistics company eyes JPYC stablecoin to pay drivers

Dollar-backed stablecoins expand in emerging economies

The findings come as use of stablecoins as a payment tool is growing in several emerging markets.

In its recent analysis of Nigeria, the International Monetary Fund (IMF) found households and small businesses are using US dollar-pegged stablecoins for cross-border payments, remittances and access to dollar-denominated assets as inflation, currency depreciation and limited access to foreign exchange drive demand.

The IMF said stablecoins have reduced the cost and time required to move money across borders while expanding access to financial services for users outside the traditional banking system. At the same time, it warned that widespread adoption of dollar-backed tokens could weaken monetary sovereignty by reducing demand for local currencies and shifting more financial activity outside conventional banking channels.

Stablecoin adoption has accelerated across Latin America as well. Bitso Business, the enterprise payments arm of crypto exchange Bitso, reported an 81% year-over-year increase in stablecoin payment volume during the first half of 2026. The company also said that Circle’s USDC (USDT) and Tether’s USDT (USDT) accounted for 40% of all crypto purchases in the region in 2025, surpassing Bitcoin for the first time.

stablecoin market capitalization has increased to about $309.7 billion, up from roughly $260 billion a year ago.

Stablecoin market cap. Source: DefiLlama

Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

MEXC has opened Bittensor’s TAO staking to its reported 40 million users through validator Yuma, adding exchange-based access to rewards from one of the largest decentralized artificial intelligence networks.

Yuma announced on Tuesday that its validator infrastructure now powers TAO staking on MEXC, allowing the exchange’s customers to delegate the token without moving their holdings to a separate Bittensor-compatible wallet.

Under the integration, Yuma will operate the validator infrastructure behind the service while MEXC provides the customer-facing staking product. The companies said the arrangement is designed to increase participation in Bittensor and make its staking system easier to access through a centralized exchange.

MEXC reports serving more than 40 million users in over 170 countries and regions. CoinMarketCap describes the company as a global exchange founded in 2018, while MEXC says its platform lists more than 3,000 cryptocurrencies across spot and derivatives markets.

For TAO holders, the new service removes several steps normally required to stake directly on Bittensor. According to Taostats documentation, direct staking involves transferring TAO to a supported wallet, selecting a validator and completing the delegation on the network.

Yuma’s role extends beyond processing those delegations. Within Bittensor, validators assess the output of miners across different subnets and assign weights that influence how the protocol distributes token emissions.

Each subnet operates as a specialized market for a particular digital service. According to Bittensor, those services can include machine-learning inference, model training, computing power, storage and prediction systems.

Exchange access removes barriers to TAO staking

Bittensor uses TAO as both its incentive token and the main asset supporting its staking system. Holders can delegate TAO to validators, which use their stake to participate in the network’s consensus process and allocate capital among subnets.

Rewards depend partly on validator performance and how those validators position stake across the network. Yuma’s infrastructure will handle that process for the TAO committed through MEXC, although the announcement did not disclose an expected annual yield, lock-up period, or minimum staking amount.

According to Bittensor’s network description, independent subnets compete to produce digital commodities while validators continually assess their relative value. The protocol calls this process Yuma Consensus, a system intended to align the incentives of token holders, validators and miners.

Bittensor’s ecosystem currently contains 128 subnets, according to the company. Individual projects focus on services including AI inference, coding assistants, financial modeling and model training, with token emissions distributed according to their measured contribution to the network.

The exchange integration also gives users an alternative to native subnet staking. CoinGecko explains that direct participation typically requires investors to buy TAO on an exchange, transfer it to a compatible wallet and then use a Bittensor interface to select a validator or exchange TAO for a subnet’s Alpha token.

MEXC and Yuma did not state whether users staking through the exchange would receive exposure to individual Alpha tokens. Their announcement identified TAO staking as the available product, with Yuma providing the underlying validator connection.

TAO traded near $199 at the time of writing, according to CoinMarketCap data supplied with the announcement. The price gave Bittensor a market capitalization of about $1.91 billion, placing the token among the largest crypto assets linked to decentralized AI.

Governance concerns remain part of TAO’s market backdrop

Yuma’s partnership with MEXC follows its public criticism of Root Reborn, a proposed Bittensor governance overhaul intended to change how validators allocate capital and reduce continued selling of subnet tokens.

During TAO’s June pullback, Yuma argued that the proposal could turn validators from neutral network operators into active capital managers. The validator group warned that the model could encourage collusion, preferential treatment and frontrunning while pushing subnet developers to focus more heavily on validator relationships.

“Such a change could fundamentally alter the role of validators,” Yuma wrote in its assessment of the proposal.

Supporters of Root Reborn have presented the proposal as a possible response to pressure within Bittensor’s token structure. Critics, including Yuma, have raised concerns about concentrated governance power, strained liquidity and possible regulatory complications.

Those disagreements emerged as TAO suffered a sharp reversal in June. Crypto.news data showed that the token fell nearly 20% from its June 15 peak of about $283, reaching roughly $225 on June 19 as governance concerns, derivatives liquidations and weaker risk appetite weighed on the market.

Despite its objections to Root Reborn, Yuma has continued to support Bittensor as a validator. Its MEXC integration places the group behind a staking channel that can connect millions of exchange accounts to the network’s reward system, while the unresolved governance debate continues to shape how validators may operate in the future.

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.

All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

Telegram has announced plans to introduce a native, non-custodial Gram wallet to more than 1 billion monthly users this summer, enabling instant cryptocurrency transfers without fees.

Pavel Durov, writing on Telegram on Wednesday, described the planned integration as the “largest rollout of a non-custodial crypto wallet in human history.” The Telegram founder did not provide a fixed release date, list supported assets, or explain how the app would cover network costs while offering fee-free transfers.

Unlike a custodial service, the proposed wallet would let users control their crypto rather than leaving their assets with Telegram or another company. Durov’s announcement places the feature directly inside the messaging app, removing the need for users to download a separate wallet before sending funds to their contacts.

Telegram reported more than 1 billion monthly active users in 2025, giving the Gram wallet access to an audience few standalone crypto products can match. While Durov did not publish an adoption target, the company’s user count means even a small uptake could introduce millions of people to self-custody and peer-to-peer crypto transfers.

Exact launch conditions remain unclear because Telegram has not explained whether the wallet will become available worldwide at once or arrive through a phased release. The company has also not disclosed its recovery system, security safeguards, regional restrictions, or whether users will need to complete identity checks for certain services.

Gram wallet places distribution at the center of TON adoption

Telegram’s announcement follows The Open Network’s decision to rename its native Toncoin token as Gram, restoring the name used in Telegram’s original 2018 blockchain white paper. Durov presented the change as a return to the project’s early identity, while TON has stated that the blockchain itself will retain The Open Network name.

According to reporting from crypto.news, the token transition was scheduled to take about three weeks and did not require holders to swap their existing coins. The publication reported that Gram climbed as much as 19% after Durov disclosed the change, reaching $2.21 as traders reacted to Telegram’s renewed involvement.

Gram’s return carries regulatory history because Telegram previously used the name for the token attached to its first blockchain project. After Telegram raised $1.7 billion from investors, the US Securities and Exchange Commission sued the company in 2019 and alleged that its planned token distribution involved unregistered securities.

Under a 2020 settlement cited by the SEC, Telegram agreed to return more than $1.2 billion to investors and pay an $18.5 million civil penalty. Telegram then withdrew from the project, while independent developers continued the open-source code that eventually became the present TON network.

Since leaving the original project, Telegram has gradually brought TON-based services into its app. The Financial Times reported that Telegram advertising can be purchased with the network’s token, while creators can receive crypto payments and developers can build games, stores, and other services tied to TON.

Durov has also promoted investment in the network. He reported in 2025 that venture capital firms had invested more than $400 million in Toncoin, naming groups including Sequoia Capital, Benchmark, Ribbit Capital, Draper Associates, and Vy Capital.

TON is extending wallet control to automated Telegram services

TON’s payment plans have expanded beyond person-to-person transfers through an Agentic Wallets standard introduced by TON Tech on April 28. As crypto.news reported in May, the system allows AI agents operating through Telegram bots to control user-funded wallets and carry out limited financial actions.

TON Tech described the products as “self-custody wallets designed for autonomous AI agents on TON.” Under its documentation, a user funds an agent’s separate on-chain wallet and grants permission to perform selected tasks, including transfers, token swaps, and interactions with decentralized finance applications.

Control remains tied to the user’s main wallet, according to TON Tech, which allows the owner to set a spending budget, withdraw the remaining balance, or cancel the agent’s access. The infrastructure team said no intermediary holds the funds and existing TON wallets do not require an upgrade because the design uses a standard smart-contract structure.

Agentic Wallets and the planned Gram wallet serve different functions, but TON Tech’s April release shows how the network is building payment tools for both people and automated services inside Telegram. The main Gram wallet would give users direct control over routine transfers, while the agent standard assigns limited permissions to bots without handing them master keys.

Telegram has yet to disclose whether the summer wallet will connect directly with Agentic Wallets or other TON-based products. Until the company publishes technical documentation and rollout terms, Durov’s announcement establishes the intended scale and fee model but leaves the wallet’s security, availability, and complete feature set unresolved.

Bitcoin and the broader crypto complex staged a rebound on Tuesday as optimism around proposed US legislation helped lift risk sentiment, while some analysts argued that cooling momentum in AI-linked equities could redirect investor attention toward digital assets.

Price action reflected that shift: Bitcoin briefly traded above $67,000, and Ether neared $1,950. Crypto-related stocks also surged, with Coinbase shares up about 12%, American Bitcoin rising roughly 14%, and Cipher Digital gaining around 17%.

Key takeaways

• Regulatory clarity expectations in the US boosted crypto sentiment, with Treasury Secretary Scott Bessent signaling lawmakers are close to action on the CLARITY Act.
• Bitcoin outperformed in the same session crypto equities rallied, suggesting the move was broad rather than isolated to spot trading.
• Analysts cited a potential rotation away from AI-linked equities as AI trade momentum cools.
• The Philadelphia Semiconductor Index’s pullback may be a signal that AI infrastructure enthusiasm is losing traction.

US legislative momentum lifts crypto risk appetite

The immediate catalyst for Tuesday’s turnaround was renewed confidence that US lawmakers could move forward on a long-debated framework for digital-asset regulation.

According to Bloomberg, US Treasury Secretary Scott Bessent said lawmakers were at the “1-yard line” regarding the CLARITY Act, a proposal intended to define the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) across digital assets.

That kind of legislative direction matters to crypto markets because it can reduce uncertainty about how tokens are classified, which agencies have oversight, and what rules exchanges and custodians must follow. In the near term, even statements that suggest progress can improve investor confidence and translate into higher demand for crypto exposure—whether through spot or through equities that track the sector.

The stock reaction was pronounced. Coinbase’s reported jump of around 12% and similar gains in other crypto-linked companies indicated the market was responding to more than just token price moves; equities tied to the industry often react quickly to perceived regulatory and market-structure developments.

Rotation thesis: AI trade cooling could free up capital

Beyond regulation, some market commentators pointed to cross-asset rotation. As traders reassess the crowded “AI trade,” they may look for alternatives that previously attracted less speculative appetite.

FRNT Financial CEO Stephane Ouellette, speaking to Bloomberg, argued that with Bitcoin trading toward the top end of its recent range, the “path of least resistance” could be higher. He also suggested an “elevated likelihood” of a breakout as the AI trade slows and investors become more comfortable with the broader environment for interest rates.

This matters because the last year has seen AI narratives pull capital into specific equity segments, particularly chipmakers and AI infrastructure. If that momentum fades—whether due to valuation concerns, earnings expectations, or spending risk—capital can reallocate toward areas that offer a different risk/return profile, including crypto.

Semiconductors’ pullback signals AI momentum is weakening

The clearest supporting data for the rotation argument comes from the Philadelphia Semiconductor Index (SOX), described as a widely watched benchmark for chipmakers tied to the AI boom. According to the article, the SOX index surged roughly 110% over the past year, reflecting strong investor enthusiasm for AI-driven demand.

However, the same report highlighted that the rally has begun to stall. It notes that last week the SOX entered a technical bear market after dropping more than 20% from its recent high. Investors, it said, have grown more concerned about high valuations and the risk of overcapacity in AI infrastructure spending.

That development is important for crypto investors because AI-linked equity weakness can change market perception of speculative growth. When expectations around AI spending cool, speculative flows can loosen—making it easier for other themes, including digital assets, to attract new buyers.

It also reframes Tuesday’s move: rather than treating crypto strength as purely idiosyncratic, the market appears to be reacting to a broader shift in speculative leadership—from AI back toward regulated or macro-sensitive narratives like US policy progress.

What to watch next

Traders will likely watch whether CLARITY Act momentum translates into concrete legislative steps rather than rhetorical optimism, and whether AI-related equity weakness persists. If the semiconductor selloff continues and regulation expectations become more tangible, crypto may find follow-through beyond a single-session rebound—otherwise Tuesday’s rally could prove harder to sustain.

Bitcoin and the broader cryptocurrency market looked poised for a recovery on Tuesday as progress on landmark US crypto legislation boosted sentiment, with analysts also pointing to a slowdown in the AI trade as a potential catalyst for capital rotating back into digital assets.

Bitcoin (BTC) briefly climbed above $67,000 and Ether (ETH) neared $1,950, while crypto-related stocks rallied sharply. Coinbase shares rose 12%, American Bitcoin gained 14% and Cipher Digital jumped 17%.

The gains came after US Treasury Secretary Scott Bessent said lawmakers were at the “1-yard line” on the long-debated CLARITY Act, which would define the regulatory roles of the Securities and Exchange Commission and Commodity Futures Trading Commission over digital assets.

Coinbase (COIN) was among the market’s top-performing stocks on Tuesday. Source: Yahoo Finance

Beyond the regulatory tailwinds, some analysts said crypto could also benefit from investors shifting capital away from AI-linked equities.

“With Bitcoin at the top end of the range, we see the path of least resistance being higher and an elevated likelihood of a breakout of the range as the AI trade slows and the market becomes more comfortable with the path of interest rates,” FRNT Financial CEO Stephane Ouellette told Bloomberg. 

Related: Hut 8, IREN deals lift AI-focused Bitcoin mining stocks

AI trade loses momentum as chipmakers fall

AI-related stocks have dominated speculative markets over the past year, with the Philadelphia Semiconductor Index (SOX) — a widely watched benchmark for chipmakers powering the AI boom — surging roughly 110%.

However, the rally has begun to lose momentum. Last week, the SOX index entered a technical bear market after falling more than 20% from its recent high, as investors grew increasingly concerned about lofty valuations and the risk of overcapacity in AI infrastructure spending.

This follows an extended period in which AI largely overshadowed digital assets. Since the launch of ChatGPT in late 2022, a wave of innovation, venture capital investment and retail enthusiasm has shifted much of the market’s speculative appetite toward AI.

Source: Milk Road

Related: Will the US get CLARITY this week? Bitcoin’s new $80K target: Hodler’s Digest, July 19