Crypto World
Quantus Founder Warns Crypto’s First Quantum Attack Could Mimic Breach
Quantum computing is often discussed in crypto as a future doomsday scenario—sometimes framed around the idea that Satoshi Nakamoto’s dormant Bitcoin could be drained once “Q-day” arrives. But Quantus Network CEO and co-founder Christopher Smith argues the first real-world impact may look far less cinematic: not a public, forensic-friendly hack, but a series of wallet breaches that are difficult to attribute to quantum capabilities at all.
Smith tells Cointelegraph that once quantum computers become powerful enough to break the public-key cryptography used by major blockchains, attackers may be able to derive private keys from public information on-chain. Crucially, the compromised pathway could avoid triggering obvious internal security failures in wallets or exchanges, leaving investigators with scant evidence beyond the fact that no meaningful breach was detected.
Key takeaways
- Q-day attacks may be hard to detect because they can be executed without compromising a wallet, device, or exchange infrastructure.
- Rather than only “Satoshi’s Bitcoin,” early quantum-enabled targets could include high-value administrative keys and other sensitive systems.
- Security researchers believe attackers might prioritize hot wallets at exchanges because they are less likely to raise alarms quickly.
- Predictions for when quantum can break modern elliptic-curve cryptography range from late-2020s odds to near-certainty in the early 2030s.
- Blockchain teams are already migrating toward post-quantum signatures, largely because waiting for certainty is too risky.
Why quantum theft could be indistinguishable from “normal” breaches
Smith’s central warning is that quantum-enabled compromise may not resemble the kind of intrusion that generates clear forensic trails. “When someone cracks your key, you don’t get a memo saying how they did it,” he said in an interview with Cointelegraph. In this scenario, an attacker could compute the corresponding private key after enough quantum capability exists—using information already visible on a public blockchain.
That shift in attack mechanics matters for incident response. Smith suggests that if a highly secure organization were targeted, “the only forensic evidence would be that there was no breach.” The attacker wouldn’t need to exploit the systems in which the wallet is running, nor necessarily leave traces of compromise in logs that would point to a conventional intrusion path.
Security expectations are therefore likely to be mismatched with how the earliest quantum-driven thefts would appear. If investigators primarily look for device-level compromise, key-management failures, or exchange-side intrusions, they could be left without the traditional indicators that typically accompany catastrophic key loss.
The first targets may be more strategic than famous
Much of the public concern about Q-day focuses on Satoshi Nakamoto’s estimated holdings—described in the source reporting as worth roughly $63 billion at the time of writing. Smith argues that while that narrative dominates headlines, the first quantum-enabled targets could be elsewhere.
According to Smith, the earliest high-value targets might include military systems and state secrets. In the crypto ecosystem specifically, he points to the “single most valuable key,” suggesting it could be Tether’s minting key. In his framing, a quantum attacker could mint tokens from an administrative wallet and sell them before the issuer can react.
He also notes that USDT is deployed across multiple networks, and that some of those networks are already working on post-quantum migration. That detail underscores an important practical point: even where a stablecoin is widely used, the risk is not only about user wallets. Administrative or minting keys—or other privileged cryptographic roles—could be where quantum leverage becomes most economically damaging.
Another idea comes from Blockchain Capital security researcher Sean Cheetham. He argues an attacker would more likely pursue hot wallets at exchanges—particularly those “that aren’t going to ring alarm bells”—rather than trying to take famously held coins. Cheetham’s comment suggests attackers may optimize for timing and operational friction: quantum capability might not eliminate the value of choosing targets, it may just change how compromise is achieved.
Smith adds a further wrinkle: attackers could disguise quantum thefts by using plausible, deniable explanations. “There’s an alternative scenario where they… have these plausible, deniable [explanations]: ‘Oh, somebody just lost their keys somehow,’” he said. That increases the chance that quantum-related incidents could be misclassified as ordinary loss or conventional compromise.
Q-day timing remains uncertain as AI reshapes assumptions
Part of what makes Q-day hard to plan around is that forecasts have been moving as quantum progress and related algorithmic improvements develop. In March, Cointelegraph previously reported that Google accelerated its post-quantum migration timeline to 2029, citing an AI-assisted breakthrough suggesting elliptic curve cryptography could be cracked with fewer physical qubits than earlier estimates.
In the current reporting, NGRAVE CEO Roy Blackstone is cited for criticizing earlier quantum threat models that, in his view, did not adequately account for the parallel development of AI. The excerpt attributed to him argues that many threat models assumed ample time before public-key cryptography could be broken, but failed to reflect how quickly AI could evolve alongside quantum research.
Despite this urgency, there is still no single consensus on when quantum computers will be capable of breaking modern cryptography. Smith, whose company is building a blockchain network intended to be quantum-resistant from launch, says there is a “50-50” chance Q-day could arrive by 2028, arguing that continued AI-assisted improvements in quantum algorithms and ongoing hardware research make forecasts less reliable.
Cheetham’s view, as presented in the source, is that the early 2030s are “definitely almost a certainty,” while earlier dates are “more of a trailing probability.” Michael Coates, the Solana Foundation’s chief information security officer, declined to estimate during an earlier interview, telling Cointelegraph that “there’s no way to know.” He also pointed to a long-standing industry pattern: “it is always five years away,” a perspective he says has persisted for a decade or more.
Even with widely varying predictions, the recurring theme across these experts is that uncertainty should not become a reason to delay. Blackstone in the source emphasizes that blockchains have begun migrating to post-quantum signatures because “the damage would be catastrophic if they didn’t.”
What post-quantum migration changes for crypto security
The practical implication of these warnings is straightforward: migrating cryptography is the only way to reduce exposure as quantum timelines shift. While Q-day may be difficult to pinpoint, the risk model changes in a way that makes “wait and see” a poor strategy—especially because early quantum-enabled attacks could be indistinguishable from other security failures.
Post-quantum signature migration, as referenced in the reporting, is therefore not just about long-term research alignment. It changes what defenders can expect in real incidents. If a chain adopts post-quantum signatures, it narrows the window during which attackers might exploit public-key weaknesses through quantum computation. That also reduces the chance that a theft will be misattributed to a conventional breach.
It may also influence how exchanges and institutional custody providers prioritize key management and operational security. If an attacker can derive private keys without “breaching” systems in the usual way, then the strongest defense becomes cryptographic resilience rather than solely perimeter and device hardening.
The open question readers should watch next is how quickly major ecosystems complete post-quantum signature transitions, and whether their migration schedules account for the increasingly AI-influenced pace of quantum-related research. If the earliest quantum compromises can look ordinary, the timing of migration—and how consistently it’s implemented across networks and administrative key roles—may matter as much as any single “Q-day” date.
Morgan Stanley raised its price target on Chinese AI startup Zhipu by nearly 72% on Thursday, sending the stock up and capping a five-day run where the company gained over 37%. The bank says China’s AI industry is leaving the price war era behind.
Analyst Gary Yu and colleagues raised Zhipu’s Hong Kong target from HK$990 to HK$1,700, citing two improvements: better access to computing power, the hardware infrastructure required to train and run AI models, and the completion of a new financing round.
From Price Wars to Intelligence-Driven Profits
For months, the dominant concern hanging over China’s AI sector was that an abundance of competing open-weight models would drive homogenization and a race to the bottom on pricing. Morgan Stanley says that logic is breaking down.
“China’s large-model industry is establishing a healthier commercialization environment,” Yu wrote, arguing the sector is shifting “from price competition to monetization driven by model intelligence.” The smarter model wins revenue, not the cheapest one. That shift, if it holds, changes how investors should value the whole sector.
Founded in 2019, Zhipu is best known for its GLM series of large language models and raised $4 billion in a Hong Kong share offering earlier this year.
BeInCrypto has tracked China’s AI models closing the gap on Western rivals throughout 2026. Morgan Stanley had previously flagged the potential for a broad AI-driven re-rating of Hong Kong tech stocks.
MiniMax Gets a More Cautious Read
The same report covered two other names. On MiniMax, the bank stayed “constructive” but lowered its target to HK$900. It says the company’s strongest growth will come in later stages rather than near term.
MiniMax still rose 4.8% on the day. Alibaba drew a bullish mention, with analysts pointing to its end-to-end AI capabilities, computing power advantages, and expanding cloud margins.
The broader Hang Seng Index opened 0.53% higher, with the Hang Seng Tech Index up 0.85%.
If Morgan Stanley’s monetization thesis holds, the companies that can translate model intelligence into recurring revenue will reprice sharply. Zhipu’s five-day climb suggests the market is already betting on it.
The post Morgan Stanley Raises Chinese AI Startup Zhipu’s Target Price 72%: Stock Surges 37% appeared first on BeInCrypto.
The U.K. Financial Conduct Authority is discussing standards for tokenized gold with major banks and other market participants, according to an Aug. 10 Financial Times report.
Summary
- FCA is discussing tokenized gold standards with major banks, according to the Financial Times report.
- UK regulators are considering tokenized gold for collateral in uncleared over the counter derivatives markets.
- Regulators plan further policy this year while developing industry standards for tokenized collateral use cases.
- Sixteen firms are already working through Britain’s Digital Securities Sandbox on live tokenized asset infrastructure.
- London handles roughly 70% of global gold trading, according to the Financial Times report.
The discussions are examining how digital representations of physical gold could operate in wholesale markets, including as collateral.
The talks have not yet produced a standalone FCA rulebook specifically for tokenized gold. They build on a May 18 joint policy paper from the FCA and Bank of England, including the Prudential Regulation Authority, which explicitly identified tokenized gold as a possible form of collateral for uncleared over the counter derivatives.
FCA tokenized gold plan builds on May roadmap
The May paper says the FCA and PRA are reviewing tokenized collateral eligibility and recognize potential benefits from tokenized money market funds and tokenized gold. Any use would be subject to standards developed with industry. Regulators also plan further policy later this year explaining how tokenized collateral can operate under the existing regulatory framework.
That points toward adapting existing wholesale market rules rather than automatically creating a separate regulatory category for each tokenized asset. The PRA has also said tokenized traditional assets should generally receive the same prudential treatment as conventional equivalents when their legal rights and underlying risks are comparable.
As crypto.news reported in earlier UK regulatory coverage, the broader initiative covers issuance, trading, settlement, collateral and the infrastructure needed to move tokenized finance beyond pilot projects.
Tokenized gold could enter wholesale collateral markets
The Bank of England plans to consider how tokenized versions of assets already accepted as regulatory collateral could qualify at central counterparties under UK EMIR. The FCA and PRA are separately examining tokenized gold for uncleared derivatives collateral.
There is already a precedent involving funds. An April FCA policy statement confirmed that a range of money market funds, including tokenized versions, can qualify as collateral for uncleared trades under UK EMIR. The same statement said authorized U.K. funds are not prevented from investing in tokenized forms of otherwise eligible assets.
The regulatory work therefore centers not only on whether an asset is digital, but whether its legal rights, custody arrangements and risks remain comparable with the conventional asset it represents.
London’s bullion position gives the project added weight
The Financial Times reported that London accounts for roughly 70% of global gold trading volume. It said the regulatory discussions come as London faces stronger competition from Asian financial centers seeking a larger role in bullion trading.
The size of the existing London market is substantial. LBMA data show London vaults held 9,339 tonnes of gold valued at about $1.384 trillion at the end of March. LBMA describes London as the center of the international bullion market.
The World Gold Council is also developing a wholesale digital gold structure known as Pooled Gold Interests. Its proposed model combines physical ownership with digital transfer and is aimed primarily at institutional and wholesale participants.
What happens next for UK tokenization rules
The FCA and Bank of England closed their broader tokenization consultation on July 3. Their published timetable calls for industry workshops, a response statement during the summer and a full cross authority roadmap later in 2026. The Financial Times now reports that an announcement on developing tokenized gold standards is expected within the next few months, citing a person familiar with the FCA’s plans.
Infrastructure work is advancing alongside those rules. Sixteen firms are working through the Digital Securities Sandbox, while the Bank of England plans upgrades to its securities and collateral system in 2027. It is also targeting 2028 for a synchronization service connecting digital asset ledgers with sterling central bank money.
In related coverage, crypto.news reported on the UK digital gilt rollout, which is targeting its first transaction by the end of Q1 2027 using HSBC’s Orion platform.
The next step for gold is therefore regulatory detail. Authorities still need to determine standards covering eligibility, legal ownership, custody and risk before tokenized gold can become a routine source of collateral across U.K. wholesale markets.
The previous business week ended with a bit of a surprise as the jobs report showed that the US economy had lost 23,000 jobs in July, compared to expectations for roughly 80,000 new positions.
Previous months were revised sharply lower as well, solidifying the argument that the labor market is finally weakening. Although this was initially interpreted as good news for risk assets since a softer economy gives the Fed less reason to tighten monetary policy further, one big obstacle remains, and more light will be shed on it this week.
Inflation Week
The analysts at The Kobeissi Letter described the coming five days as another ‘big week’ for economic data, with July’s CPI and PPI reports getting the most attention. They will be announced on Wednesday and Thursday, respectively, followed by retail sales and consumer sentiment on Friday.
Wednesday’s Consumer Price Index (CPI) report is undoubtedly the main event, especially since last month’s showed a substantial decline. However, it was probably misleading since it was based on lowered energy costs due to the de-escalation of the Middle East war, which has since deteriorated.
Although Friday’s employment report tilted the monetary policy equation toward a no-hike event, another hot inflation reading could quickly reverse the narrative. As usual, a cooler July CPI report could lead to a BTC and altcoin rally due to reduced expectations for a rate hike, and vice versa.
The PPI reading on Thursday will provide another look at inflation, but from a producer’s side. It’s typically less influential than CPI, but a significant upside surprise could reinforce concerns that price pressures remain high.
Friday’s July retail sales could be the dark horse, as stronger consumer spending would demonstrate that the US economy remains resilient despite the weak employment figures. On the surface, this sounds positive, but it could give the Fed another reason to maintain restrictive monetary policy given the current environment.
In contrast, a weak retail sales reading would strengthen the narrative that the economy is slowing, potentially reducing the requirement for additional rate hikes.
Key Events This Week:
1. July Existing Home Sales data – Tuesday
2. OPEC Monthly Report – Wednesday
3. July CPI Inflation data – Wednesday
4. July PPI Inflation data – Thursday
5. July Retail Sales data – Friday
6. August MI Consumer Sentiment data – Friday
It’s a big week…
— The Kobeissi Letter (@KobeissiLetter) August 9, 2026
War Moves
The previous week was also quite eventful, leading to substantial volatility for BTC, which dropped to a monthly low of $62,200 before jumping by over $3,000 at the end of the week. One factor that wasn’t mentioned in the report above is the war against Iran.
Any significant moves in that direction tend to severely impact the crypto market (as well as other financial markets). The promise of a deal from last week brought some hope, but the failure erased it. The latest reports claim that Trump has undertaken a new strategy by “low-keying it with Iran.” According to Axios, he is preparing to allow economic pressure to mount as opposed to ordering a new military offensive.
For now, bitcoin remains sideways at around $65,000 after little to no fluctuations over the past 48 hours.
The post Another Big Macro Week Is Here: 3 Events That Could Move Bitcoin appeared first on CryptoPotato.
Empery Digital sold 1,635 Bitcoin for $102.2 million between July 1 and Aug. 6, cutting its total holdings to 1,279 BTC, according to an Aug. 7 SEC filing.
Summary
- Empery Digital sold 1,635 BTC for $102.2 million between July 1 and August 6, 2026.
- Only 325 BTC remained unrestricted after 954 BTC secured $35 million of outstanding company debt.
- Unrestricted Bitcoin holdings fell 76% from 1,375 BTC at June 30, according to company filings.
- Empery repaid $20 million after June, prompting its lender to return 585 pledged Bitcoin tokens.
- A $62.1 million property commitment remains conditional, with due diligence extended through August 13, 2026.
Of that balance, 954 BTC remained pledged to a lender, leaving a derived 325 BTC unrestricted.
The latest disclosure extends a sharp reduction in the Nasdaq listed company’s Bitcoin treasury. Empery held 2,914 BTC on June 30, including 1,375 unrestricted coins. The available pool therefore fell by 1,050 BTC, or about 76.4%, in just over five weeks.
Empery Digital’s unrestricted Bitcoin pool falls 76%
The July and August sales came after Empery had already sold 1,167 BTC for $80.1 million during the first half of 2026. Those earlier disposals produced a $56.8 million realized loss based on the original cost of the Bitcoin sold, according to the filing.
The latest figures also move beyond the company’s July 10 filing. At that point, Empery said it held 1,514 BTC and about $73.9 million in cash after selling 1,400 BTC since May 7. As crypto.news reported in earlier July coverage, the company said those proceeds were intended for debt repayment, a planned property purchase, legal expenses and operations.
The filing also shows how the treasury sales fit into a broader capital allocation plan. Through Aug. 6, Empery had repurchased 26.24 million shares for $149.7 million at an average price of $5.71. The company said proceeds from $105 million of borrowings, together with Bitcoin sales, helped finance the repurchases. Digital asset losses totaled $106.3 million in the first half and represented 87% of operating expenses.
That marks a major change from the company’s original treasury expansion. In August 2025, Empery reported holding more than 4,000 BTC as it pursued a strategy centered on increasing Bitcoin exposure. Its balance sheet now combines a much smaller Bitcoin reserve with debt reduction, share repurchases and new infrastructure investments.
Debt fell, but most remaining BTC is still pledged
Empery repaid another $20 million under its master loan arrangement after June 30, reducing outstanding borrowings from $55 million to $35 million. The lender returned 585 BTC, bringing pledged collateral down from 1,539 BTC to 954 BTC.
The loan still carries tight collateral conditions. A February amendment set the collateral call level at 153% and the liquidation level at 143%, while reducing the period to restore collateral at the liquidation threshold to 12 hours. Empery had already supplied 576 BTC after a February collateral call and another 186 BTC after a June call. In related March coverage, the company was already selling Bitcoin while reducing leverage and repurchasing shares.
Data center funding could create another cash requirement
Empery is also expanding beyond its Bitcoin treasury strategy. Through its EMHU venture with TexStack Infrastructure, the company contributed $2.9 million and committed another $62.1 million if a proposed Midwest property acquisition closes. The roughly $230 million property is intended to be converted into an AI data center.
The Aug. 7 filing adds a new deadline. EMHU extended its due diligence review period by 15 days to Aug. 13 and can extend it another 15 days. Empery said it expects the acquisition to close during the third quarter but cautioned that “there can be no assurance that it will occur.”
Separately, Empery closed a $20 million investment in Cardinal Data Power on July 20 for an approximately 8% stake, according to an SEC release. In recent data center coverage, crypto.news tracked a broader shift by several digital asset treasury companies toward AI infrastructure as the treasury model came under pressure.
Management said cash, operations, borrowing and potential Bitcoin sales should “be sufficient to fund planned operations beyond one year.” The statement is forward looking. Empery had $3.6 million of cash, cash equivalents and restricted cash and a $5.6 million working capital deficit at June 30, while its unrestricted Bitcoin cushion has since narrowed to 325 BTC.
What happens next depends partly on the Aug. 13 property review deadline and whether EMHU extends the review again or moves toward closing. Any further Bitcoin disposal would require another company decision. The current filing lists potential Bitcoin sales among possible funding sources but does not say additional sales are certain.
Bitcoin pushed above $65,000 during early trading on Aug. 10 before slipping back below the level, extending its recovery as investors reassessed the U.S. interest rate outlook.
Summary
- SoSoValue reported $854 million in weekly Bitcoin ETF inflows as BTC briefly topped $65,000 Monday.
- July payrolls fell 23,000, prompting traders to reduce expectations for another Federal Reserve rate increase.
- U.S. July CPI arrives Wednesday, with economists expecting headline inflation to slow to 3.4% annually.
- BlackRock’s IBIT drew $694 million last week, leading positive flows across U.S. Bitcoin ETF products.
- Bitcoin gained 3.4% over seven days while remaining roughly 48% below its October record high.
BTC was trading near $64,955 at the time of writing, up 0.3% over 24 hours and 3.4% over seven days. Its intraday high reached $65,363.
The move leaves traders with a clear macro event ahead. The Bureau of Labor Statistics will release July consumer inflation data at 8:30 a.m. ET on Wednesday, Aug. 12. The report follows Friday’s unexpectedly weak employment numbers, which reduced expectations that the Federal Reserve would need to raise rates again soon.
Bitcoin gets relief from weaker U.S. jobs data
The U.S. economy lost 23,000 nonfarm payroll jobs in July, while unemployment held near 4.1%, according to official BLS data. May payroll growth was revised down by 66,000 and June by 37,000, removing 103,000 jobs from the two previous estimates combined. Average hourly earnings rose 3.2% from a year earlier.
Bitcoin moved above $65,000 after the report as rate expectations shifted. As crypto.news reported in Friday’s payroll reaction, BTC initially gained almost 2% as investors interpreted weaker hiring as reducing pressure on the Fed to tighten policy. The move has since held, although $65,000 has not yet become firm support.
The policy backdrop remains divided. The Federal Reserve held its target range at 3.50% to 3.75% on July 29, but three voting officials preferred a 25 basis point increase, according to its statement. The central bank also said inflation remained above its 2% goal, partly because of energy related supply pressures.
Bitcoin ETF demand strengthened throughout last week
Institutional demand also improved as Bitcoin approached resistance. SoSoValue reported $854 million in net inflows into U.S. spot Bitcoin ETFs from Aug. 3 through Aug. 7, with BlackRock’s IBIT accounting for about $694 million. The figure marked a reversal from the weaker fund flows seen around the end of July.
There is a small difference between ETF datasets. Farside’s current flows show daily totals of $170.1 million, $211.5 million, $244.4 million, $137.6 million and $101.7 million over the same five sessions, which sum to about $865.3 million. For that reason, the $854 million weekly total is best attributed specifically to SoSoValue rather than treated as a universal figure.
The demand followed several sessions in which ETF buying failed to produce an immediate breakout. In earlier ETF flow coverage, Bitcoin remained near $64,200 on Aug. 7 even after funds recorded four consecutive positive sessions. Friday’s additional inflows extended that streak while BTC continued challenging the same resistance area.
$65,800 remains a closely watched Bitcoin barrier
The price structure has improved since Bitcoin traded near $62,500 at the beginning of last week, but the market has repeatedly struggled between $65,000 and $66,000. Crypto.news previously identified the same area in recent resistance analysis, where $65,000 to $65,500 also contained a concentration of liquidation liquidity.
The Relative Strength Index stood at 55.07, above its moving average of 50.44 and the neutral 50 level. The reading points to moderate bullish momentum, with buyers holding a slight advantage. However, RSI remains well below overbought territory, suggesting momentum has strengthened without becoming stretched.
The Awesome Oscillator was positive at about 664.19, supporting the improving momentum picture. Its histogram bars remained relatively small compared with those recorded during stronger directional moves, so the indicator points to improving momentum rather than confirming a major breakout.
Analyst Michaël van de Poppe has placed the next level slightly higher. In an Aug. 9 post, he called $65,800 the “critical level” and said BTC was “ready for a breakout to at least $73,700.”
He also cited bullish divergence in longer duration RSI and MACD readings. Those figures are his technical targets, not confirmed price objectives, and Bitcoin still needs to clear the resistance he identified.
What happens next as U.S. inflation takes focus
Wednesday’s CPI report is now the nearest scheduled U.S. catalyst. June consumer prices fell 0.4% from May while rising 3.5% from a year earlier. Core CPI was unchanged during June and rose 2.6% annually. Economists surveyed by Reuters expect July headline inflation to ease to 3.4% annually and core inflation to slow to 2.5%.
The market is also dealing with renewed energy pressure. Brent crude rose 1% to $84.40 on Monday as uncertainty around shipping through the Strait of Hormuz continued. Meanwhile, the U.S. 10 year Treasury yield traded near 4.66%. Futures markets put the probability of a September Fed rate increase near 44%, down from 67% one week earlier.
A hotter CPI reading could rebuild expectations for another increase and put renewed pressure on risk assets. A softer reading could reinforce the interpretation traders drew from Friday’s weak employment report, but it would not guarantee a Bitcoin breakout. The Fed’s next scheduled policy meeting runs Sept. 15 to Sept. 16, leaving policymakers with several more economic releases before deciding whether rates should change.
For Bitcoin, the immediate test therefore remains narrow: holding the recovery around $65,000 while attempting to clear the $65,800 area. Wednesday’s inflation numbers will provide the next evidence on whether the U.S. macro environment supports that move or sends traders back toward the lower end of Bitcoin’s recent range.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
A Bitcoin security researcher says he has been forced to go back to using open-source Chinese AI models after finding himself restricted from analyzing further codebases by OpenAI, highlighting a growing concern that the most capable AI tools aren’t being made available to defenders.
In an X post on Tuesday, AnchorWatch CEO Rob Hamilton said he had begun integrating OpenAI’s Trust & Cyber capabilities into his Bitcoin Red Team work on Saturday, only to find his access restricted the following morning.
“It absolutely guts me as a patriotic American to have to do this, but I will be going back to using Chinese open source models to conduct my research to protect Bitcoin infrastructure,” he added.
Bitcoin Red Team, a group of volunteers, has been using AI tools and human review to scan hundreds of open-source Bitcoin-related repositories for vulnerabilities, with efforts accelerating days after the Coldcard hardware wallet hack, which has seen over $100 million in Bitcoin stolen.
Last month, crypto executives told Cointelegraph that many of crypto’s biggest players are still waiting to gain access to powerful new AI models to strengthen their code from attacks, with only a select few having been able to get it.
“I am now prevented from being able to continue the investigation in a further effort to make sure their code changes are sufficient, as well as understand if there are other issues that have yet to be discovered,” said Hamilton.
“Black hats will not hit these issues. The white hats will. We’ve hit a local minima in policy,” said Hamilton. “Intelligence is unrestricted for those who don’t follow rules, and those who engage in harm reduction are left on the sidelines.”
Related: Crypto firms still seeking frontier AI access; only select few have it
Gold (XAU) futures on Binance recorded one of their strongest trading days in four months on Friday. The surge followed a July jobs report that missed expectations.
The move came alongside a broader gold rally, which ended a four-month losing streak. Investors appear to be returning to the precious metal after months of pressure.
Weak Jobs Data Boosts Gold
BeInCrypto reported that nonfarm payrolls (NFP) fell by 23,000 in July, compared with a forecast of an 85,000 gain.
Revisions to May and June erased another 103,000 jobs. The unemployment rate still fell to 4.1%. However, the decline did not reflect stronger hiring conditions.
Instead, 264,000 people left the labor force during the month. That pushed participation to 61.4%, its lowest level in nearly five and a half years.
Gold responded quickly to the data, closing Friday’s session 2.48% higher. The metal has gained more than 6% since the start of August.
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Gold Futures Activity Surges on Binance
Binance’s XAU futures market also captured that momentum. Analyst Darkfost highlighted that gold futures recorded more than $2.5 billion in volume on Friday alone.
This marked one of the strongest trading sessions in four months. Since launching on Binance roughly nine months ago, gold futures have surpassed $200 billion in cumulative trading volume.
The activity highlights growing demand among crypto-native traders for exposure to traditional safe-haven assets.
“This renewed interest in gold, combined with weakening employment data, confirms that the market appears to be pricing in a possible deterioration of the economic situation,” the analyst said.
Traditional gold markets have also shown a parallel shift. Global gold-backed exchange-traded funds attracted $3 billion in July.
That inflow reversed two consecutive months of outflows. Total assets under management also rose 1% to $530 billion. European funds accounted for most July inflows.
The weak jobs report also reshaped expectations for the Federal Reserve’s September meeting. Markets now see a 44% chance of a rate hike, down from 67%.
The shift could further support gold if traders continue to price in a less restrictive policy outlook. The next major catalyst is the July CPI data, due Wednesday, August 12.
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The post Weak US Jobs Data Drives $2.5 Billion Gold Futures Surge on Binance appeared first on BeInCrypto.
Australia’s anti-money laundering watchdog has suspended the operation of Cryptolink’s Bitcoin ATMs for three months, citing “ongoing concerns” about its compliance with anti-money laundering obligations.
Australia has the highest number of crypto ATMs of all countries in the Asia-Pacific region. Australian authorities have been cracking down on the criminal use of crypto ATMs since at least late 2024.
AUSTRAC CEO Brendan Thomas said Monday the company’s Virtual Asset Service Provider (VASP) registration has been suspended for three months starting Sunday, meaning its crypto ATMs will not be allowed to operate during that time.
AUSTRAC said Cryptolink failed to meet basic reporting requirements, particularly threshold transaction reports, and did not respond to AUSTRAC’s request for information.
“As part of our continued focus on digital currency as a money laundering risk, AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs,” said Thomas.
The action follows an enforceable undertaking that Cryptolink entered into with AUSTRAC in October 2025, after its Cryptocurrency Taskforce identified alleged breaches including late transaction reporting and shortcomings in Cryptolink’s risk assessments. AUSTRAC also issued a $56,340 infringement notice, which Cryptolink paid.
Cryptolink has 96 ATMs in Australia, allowing customers to exchange cash for Bitcoin. Most of its ATMs are located in major cities including Sydney, Melbourne and Brisbane.
Cointelegraph reached out to Cryptolink for comment.
Related: Bitcoin Depot stock crashes 71% premarket after Chapter 11 filing
Canary Capital’s XRP exchange traded fund ended the first half of 2026 with $81.6 million fewer net assets even after positive capital share activity added $82.4 million.
Summary
- Canary XRP ETF ended June with $241.2 million, down $81.6 million from December despite creations.
- Net capital share transactions added $82.4 million, while operations reduced assets by $164.0 million overall.
- Unrealized XRP depreciation accounted for $159.7 million of the fund’s operational decline during 2026 midyear.
- XRP holdings climbed 31.7% to 231.3 million tokens, even as their dollar value declined sharply.
- XRPC posted a 42.84% NAV loss during 2026’s first six months, according to Canary data.
An Aug. 7 SEC filing shows that falling XRP valuations more than offset the increase in shares during the six months through June 30.
The unaudited Form 10 Q puts XRPC’s net assets at $241.17 million on June 30, down from $322.82 million at the end of 2025. Meanwhile, outstanding shares increased from 16.49 million to 21.77 million as the fund created 5.65 million shares and redeemed 370,000. XRP itself fell 43.27% from $1.84 to $1.04 over the same period.
Canary XRP ETF added shares while XRP erased value
The accounting behind the decline shows two forces moving in opposite directions. XRPC recorded $88.26 million from shares sold and $5.90 million from shares redeemed. The resulting $82.36 million increase from capital share transactions was outweighed by a $164 million decrease in net assets from operations.
Most of that operational decline came from XRP rather than fees. The fund recorded $159.70 million in unrealized depreciation, $3.59 million in realized investment losses and $716,898 in sponsor fees during the six month period. Unrealized depreciation was therefore almost twice the value added through net capital share transactions.
The contrast follows an initially strong reception for the fund. As crypto.news reported in its launch day coverage, XRPC generated about $58 million in trading volume when it debuted on Nasdaq in November 2025, making it one of that year’s largest new ETF launches by first day volume.
The $82 million figure is not simply investor cash inflow
The $82.36 million increase should not be treated as $82.36 million of retail investors depositing cash into XRPC. Canary’s SEC prospectus allows authorized participants to create and redeem baskets using either cash or XRP. Investors trading XRPC shares on Nasdaq do not directly create or redeem shares with the trust.
The latest filing shows the distinction clearly. XRPC purchased 34.13 million XRP valued at $52.20 million during the first half, while another 25.93 million XRP valued at $36.05 million entered the trust through in kind share creations. The fund also sold 3.93 million XRP worth $5.90 million to meet redemptions and reported no XRP distributed in kind for redemptions.
Accordingly, the filing supports describing the $82.36 million as net capital share activity rather than a direct measure of investor cash inflows. It does show that creation activity exceeded redemptions during the period.
XRPC held 31.7% more XRP but the position was worth less
XRPC’s XRP holdings increased from 175.63 million tokens at the beginning of 2026 to 231.28 million on June 30, a rise of about 31.7%. Yet the fair value of the XRP position fell from $322.97 million to $241.28 million because the underlying asset declined sharply.
That disconnect has also appeared across the wider U.S. XRP ETF market. In related ETF flow coverage, crypto.news reported in July that cumulative inflows across spot XRP funds remained well above their combined net assets as falling token prices reduced portfolio values.
The price weakness does not mean creations stopped altogether. More recent fund flow reporting showed XRP ETFs recording fresh net inflows on July 29 after a four day pause, while XRP remained near the $1.10 area.
XRPC assets slipped further after the June quarter
Canary’s latest published fund data shows XRPC remained below its June level after the reporting period. Net assets stood at $237.38 million on Aug. 7, with both NAV and market price at $10.85. Shares outstanding had increased to 21.87 million from 21.77 million at June 30.
The same data puts XRPC’s NAV return at negative 43.93% for 2026 through Aug. 7, compared with negative 42.84% through June 30. Its market price return was negative 44.22% year to date. Those figures show that the valuation pressure documented in the SEC report had not fully reversed by early August.
For XRPC, the next financial filing will provide another formal snapshot of whether continued share creation can offset movements in XRP’s price. The first half results already make the current dynamic clear: the trust accumulated substantially more XRP, but the falling value of each token left the fund with fewer dollars in net assets.
Grayscale withdrew registration statements for three planned U.S. altcoin exchange traded products on Aug. 7, ending the current registration process for its Cardano, Hedera and Polkadot funds.
Summary
- Grayscale withdrew Cardano, Hedera and Polkadot ETF registrations through three Form RW filings on Friday.
- All three filings state registrations never became effective and no securities were issued or sold.
- NYSE Arca and Nasdaq had already withdrawn corresponding listing proposals during September and November 2025.
- SEC generic listing standards now let qualifying crypto products bypass separate exchange rule change filings.
- Bittensor, Aave, BNB, NEAR and Zcash registrations remained preliminary in recent SEC filings reviewed.
SEC records show the three Form RW submissions were accepted between 4:33:37 p.m. and 4:36:47 p.m. ET, a span of exactly 190 seconds.
The filings are withdrawal requests, not SEC rejections. Grayscale said it no longer intends to proceed with the planned distribution of shares under those registration statements. It also confirmed that none had become effective and that no securities had been issued or sold.
Grayscale withdraws three S-1 registrations
The Cardano filing sought withdrawal of registration statement No. 333-289948, originally filed in August 2025. The Hedera request covered No. 333-290129, first filed in September 2025, while the Polkadot filing covered No. 333-289949, also first filed in August 2025.
Each request gives the same core explanation: the sponsor does not intend to proceed with the planned share distribution. The documents provide no separate commercial, demand related or regulatory reason. They also state that no preliminary prospectus had been distributed.
Meanwhile, the latest withdrawals follow earlier exits on the exchange listing side. SEC records show NYSE Arca withdrew its proposed rule change for the Grayscale Cardano Trust on Sept. 29, 2025. Nasdaq’s proposed rule changes for the Grayscale Polkadot Trust and Grayscale Hedera Trust were both withdrawn on Nov. 3, 2025.
Those exchange proposals were separate from the S-1 registrations withdrawn on Aug. 7. The Cardano review was covered as previously reported, while Nasdaq’s Polkadot proposal appeared in earlier related coverage. The Hedera review also entered the SEC process in March 2025, as crypto.news reported in its earlier coverage.
New SEC rules changed the crypto ETF approval route
The regulatory backdrop changed after those original exchange proposals were filed. In September 2025, the SEC approved generic listing standards allowing qualifying commodity based trust shares, including digital asset products, to list without a separate Section 19(b) rule change for each fund.
The faster exchange route does not replace Securities Act registration. A sponsor still needs an effective registration statement before selling shares. That distinction matters here because Grayscale withdrew the S-1 layer itself. A current overview of the U.S. ETF process explains how exchange listing and registration now operate separately.
What happens next for Grayscale’s altcoin ETF slate
Under Rule 477(b), an application to withdraw an entire registration statement before effectiveness is deemed granted when filed unless the SEC objects within 15 calendar days. The three requests therefore take effect without a separate approval order unless the Commission intervenes during that window.
The withdrawals do not establish that the SEC rejected ADA, HBAR or DOT products, and they do not prevent Grayscale from filing again later. For now, SEC records reviewed Aug. 10 show preliminary registrations for Bittensor, Aave, BNB, NEAR and Zcash at different stages. The Zcash registration received its third amendment on July 31.
Grayscale also has altcoin products further along. The SEC declared the Grayscale Avalanche Staking ETF registration effective on March 11 and the Grayscale Hyperliquid Staking ETF registration effective on June 2. Those differing statuses show the Aug. 7 filings are not evidence of a companywide retreat from altcoin exchange traded products.
What remains unknown is why Grayscale ended these three registrations together. The filings give no explanation beyond the decision not to proceed, leaving claims about investor demand, economics or regulatory resistance unconfirmed.
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