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Insider Trading Scandal? 6 Wallets Made $1.2M on Iran Strike Bets

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Insider Trading Scandal? 6 Wallets Made $1.2M on Iran Strike Bets


The attacks had immediate impact on crypto prices, with many assets tumbling before staging modest recoveries.

As it happened with a few other global situations in the past several months, a group of suspected insiders seemingly knew what was going to transpire and profited substantially.

Recall that Israel and the US carried out organized strikes against Iran on Saturday, and Bubblemaps outlined that a group of wallets made a total of $1.2 million betting on these developments hours before they happened.

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Given the precision in their actions – funding the wallets in the past 24 hours before the events unfolded, choosing specifically February 28, and betting on “yes” shortly ahead of the strikes, the likely conclusion is that they had inside knowledge of what took place in the Middle East on Saturday morning.

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Recall that at first reports emerged that Israel had initiated strikes against Iran, and then ordered a state of emergency within its borders, expecting retaliation. Then, US President Donald Trump confirmed that his country was also involved.

The POTUS doubled down in the following hours, categorizing the attacks as a “major combat operation.” It’s worth noting that Iran indeed retaliated by counter-attacking several US allies, such as Kuwait, the UAE, Qatar, and Bahrain.

The initial attacks from the morning harmed the cryptocurrency markets immediately. Bitcoin dumped from $66,000 to $63,000 in minutes, while most altcoins followed suit with 2-4% declines in less than an hour.

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Nevertheless, BTC has recovered some ground since then and currently trades close to $65,000. ETH is down to $1,900, while BNB and XRP continue their fight for fourth place in terms of market cap.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class