The CLARITY Act remains stuck in the Senate after the White House reportedly failed to respond to a bipartisan ethics proposal, pushing its 2026 passage odds back down to 27%.

White House has not answered ethics proposal

Crypto journalist Eleanor Terrett reported Monday that the White House had yet to respond to the ethics counterproposal submitted by Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego.

The proposal would reportedly give state attorneys general a role in enforcing restrictions on crypto activity involving federal officials. Under the compromise, state officials could sue the Department of Justice if it failed to enforce the ethics rules.

Democrats opposed an earlier version accepted by the White House because it left enforcement solely to the DOJ. The Tillis-Gallego proposal is intended to address those concerns and secure enough Democratic votes for the bill to advance.

Although the headline issue centers on Trump, the reported development concerns the White House’s response to the compromise rather than the president signing the legislation itself. The bill must still pass the Senate and clear any differences with the House before reaching Trump’s desk.

CLARITY Act faces shrinking Senate timetable

Senate Majority Leader John Thune has not filed a cloture motion for the CLARITY Act, leaving lawmakers with limited time to begin the procedural process before the chamber’s expected recess.

The Senate’s published Monday schedule instead included a cloture vote on the motion to proceed to H.R. 6500, a legislative vehicle for a continuing resolution. It listed no scheduled action on H.R. 3633, the Digital Asset Market Clarity Act. The Senate previously recorded a floor speech by Sen. Cynthia Lummis in support of the bill but no cloture filing.

Even if Thune files cloture, Senate rules require time for the motion to mature before an initial procedural vote can occur. The bill would also need 60 votes to overcome a likely filibuster, requiring support from several Democrats.

The ethics dispute is not the only obstacle. Prosecutors and law enforcement organizations have raised concerns about provisions protecting some non-custodial blockchain developers from Bank Secrecy Act registration requirements.

Treasury Secretary Scott Bessent has rejected that interpretation, arguing that non-custodial developers have never been subject to those obligations and that the bill would codify existing Treasury policy.

Passage odds fall back to 27%

Polymarket traders now assign a 27% probability that the CLARITY Act will be signed into law before the end of 2026. The market had climbed above 80% in February before Senate delays and disagreements over ethics and decentralized finance weakened expectations.

The falling odds reflect the bill’s narrowing legislative path rather than a formal defeat. Negotiations could continue during or after the recess, although a delay would leave less time before the U.S. midterm elections complicate the congressional calendar.

The legislation would establish a federal market-structure framework and clarify how the Securities and Exchange Commission and Commodity Futures Trading Commission divide oversight of digital assets.

Bernstein warns of another crypto sell-off

Bernstein analysts warned that a Senate failure to advance the bill could trigger an immediate decline in Bitcoin and the broader crypto market. They described the potential response as an industry “knee-jerk” sell-off capable of driving digital asset valuations through another leg lower.

“From a tactical standpoint, we expect the crypto market to bottom and start showing momentum towards late Q3 and early Q4 prior to the mid-terms,” the analysts wrote in a Monday client report.

Bernstein expects a legislative delay could also pressure the SEC and CFTC to issue more guidance through Project Crypto. That effort could cover token classifications, decentralized finance and a potential exemption for qualifying token issuances.

Regulatory guidance could provide temporary relief for U.S. crypto companies, but it would not carry the same permanence as a law passed by Congress. The White House’s response to the ethics compromise, and any cloture filing from Senate leaders therefore remain the next developments to watch.

Hashdex has announced plans to wind down its spot Bitcoin exchange-traded fund, the DEFI product listed on NYSE ARCA, and return value to shareholders. In a filing made public Monday, the fund issuer said the liquidation will occur later this month, with cash proceeds distributed to remaining investors and the fund’s approximately 225 BTC holdings sold.

The decision is tied to an internal review of the fund’s business and market conditions, including trading liquidity, ongoing operating expenses and investor interest, according to the filing.

Key takeaways

• Hashdex will liquidate its DEFI spot Bitcoin ETF later this month and distribute cash to remaining shareholders.
• The fund is expected to sell its roughly 225 BTC position as part of the wind-down process.
• Hashdex cited trading liquidity, operating costs, and investor demand as reasons for the liquidation decision.
• The DEFI fund has traded on NYSE ARCA under the DEFI ticker since March 2024.
• At the time of publication, the ETF reported net assets of about $14.25 million and sat far below the scale of the largest U.S. Bitcoin ETF products.

Why Hashdex is liquidating the DEFI spot Bitcoin ETF

Hashdex’s plan centers on a straightforward liquidation and distribution. In an SEC filing, the issuer stated that it has determined the fund should be wound down after assessing multiple operational and market-related factors.

The filing points to three key considerations that frequently influence whether an ETF can operate efficiently: how liquid the product is in the market, the costs of running the fund, and whether investor participation is strong enough to justify continued operations. Those factors, taken together, are described as the basis for Hashdex’s decision.

The fund, which trades on NYSE ARCA under the DEFI ticker, has 200,000 shares outstanding and reported net assets of $14.25 million, per the fund’s website. The issuer’s filing also indicates that the ETF has been trading under the DEFI ticker since March 2024.

Scale and timing: a spot ETF that arrived after the rush

DEFI is often framed as a “late entrant” into the broader wave of U.S. Bitcoin ETFs. The first wave of competing Bitcoin ETF launches began months before Hashdex’s spot product began trading, and the issuer later launched the fund with a narrower runway relative to larger, already-established peers.

That timing mattered in a market where investor flows quickly concentrated into the most widely held products. The fund’s assets and liquidity are reflected in the comparatively small net asset base. SoSoValue data indicates DEFI’s highest asset level reached $17.54 million on May 9, 2025.

By contrast, WisdomTree Bitcoin Trust (BTCW) is currently much larger. According to the figures cited via the article’s reference, BTCW had $140.37 million in net assets as of Friday’s market close, underscoring the wide gap between DEFI’s reported size and that of the next-largest U.S.-traded Bitcoin ETF after the major leaders.

Industry commentary at the time of the spot ETF expansion suggested that competitive positioning was possible even for late entrants—if fees were attractive and the product could find demand. In a March 27, 2024 post cited in the article, Bloomberg Senior ETF analyst Eric Balchunas said: “The getting is so good right now I could see this one getting some bites (if the fee is competitive) despite being so late.”

From futures ETF origins to a spot ETF wind-down

Hashdex’s Bitcoin fund story did not start with a spot product. The issuer previously launched the Hashdex Bitcoin Futures ETF in 2022. Over time, Hashdex shifted into the U.S. spot-ETF landscape, and DEFI began trading in March 2024 under NYSE ARCA’s DEFI ticker.

The fund’s lifecycle now appears to be ending just over a year after it began trading as a spot ETF. While the filing does not cite a market-wide issue, it is clear that the issuer’s internal assessment concluded that continuing the fund was no longer justified given the operational economics and demand signals.

For investors, that matters because liquidation changes the practical mechanics of exposure: instead of holding shares in a continuously operating ETF, remaining shareholders will receive cash after the fund sells its underlying Bitcoin holdings. That can alter tax and portfolio planning considerations depending on each investor’s jurisdiction and circumstances.

What to watch next for DEFI shareholders and the broader ETF lineup

Hashdex’s liquidation announcement may also serve as a reminder that even in a bullish macro narrative around Bitcoin ETFs, product viability can differ significantly across issuers. Liquidity, cost structure and sustained investor demand can determine whether an ETF remains competitive enough to justify continued operation.

In the near term, the key question for DEFI holders is how the liquidation process will be executed in practice—particularly around the timing of the sale of the fund’s Bitcoin holdings and how cash distributions are calculated and delivered after liquidation. For the wider market, readers should also watch whether other smaller Bitcoin ETF products face similar viability reviews, and whether fee competition continues to reshape which funds capture the most assets.

As Hashdex moves toward distribution, investors should focus on the specific mechanics of the wind-down as described in the SEC filing and any follow-up disclosures, while keeping an eye on how quickly the remaining U.S. Bitcoin ETF ecosystem consolidates further around the largest and most liquid products.

FalconX has reportedly cut about 10% of its global workforce as the digital asset prime broker prepares for an extended cryptocurrency market downturn.

FalconX layoffs affect about 10% of staff

FalconX implemented the workforce reduction across its global operations, Bloomberg reported Monday, citing people familiar with the matter. The company employed approximately 350 people before the layoffs, suggesting that around 35 positions may have been affected.

Its workforce was spread across the United States, the United Kingdom, Singapore and Hong Kong. FalconX has not publicly disclosed which teams, offices or roles were included in the cuts.

The company has not disclosed the expected cost savings, severance expenses or a timeline for completing the restructuring.

FalconX operates as a prime broker for institutional digital asset investors, offering trading, financing and risk management services. Unlike a retail exchange, its core customers include hedge funds, asset managers and other professional trading firms.

FalconX shifts its Singapore strategy

FalconX is also changing its strategy in Singapore, where it plans to concentrate on crypto derivatives trading and withdraw its license application with the Monetary Authority of Singapore.

The withdrawal does not mark a complete exit from Asia. FalconX reportedly plans to retain a presence in the region while expanding its European operations.

FalconX entered Singapore in 2023 and launched an over-the-counter derivatives business aimed at institutional customers across the Asia-Pacific region. At the time, the company said it intended to seek the licenses needed to offer a broader set of prime-brokerage services.

The new approach narrows that plan as FalconX directs resources toward business lines it considers better positioned during the downturn. The company has not provided details about how the change will affect existing Singapore employees or customers.

Bitcoin downturn pressures crypto companies

The cuts come as falling cryptocurrency prices weigh on trading volumes and industry revenue. Bitcoin was trading near $63,500 on Tuesday after reaching an intraday low around $62,200, leaving it nearly 50% below its October 2025 peak above $126,000.

The decline has reduced retail activity and pushed crypto companies to control costs or expand into businesses less dependent on spot-market trading. Derivatives, institutional services and tokenized financial products have become increasingly important as firms seek more stable revenue sources.

FalconX strengthened its institutional and asset-management operations in November 2025 by completing its acquisition of 21shares. The transaction combined FalconX’s prime-brokerage infrastructure with the crypto exchange-traded product issuer’s global business.

21shares currently manages more than $12 billion across over 50 crypto exchange-traded products, including US-listed funds. FalconX has not indicated that the reported layoffs will affect those products or their investors.

Crypto layoffs spread across the industry

The FalconX reduction is the latest in a series of layoffs that have swept through the cryptocurrency industry during the market slowdown.

As reported by crypto.news on July 31, Luno cut about 20% of its global workforce while redirecting resources toward institutional customers and its business-to-business unit. Chief Executive James Lanigan said automation and operational changes had reduced the resources required to run the exchange.

Pump.fun also reportedly dismissed employees shortly before their PUMP token allocations were scheduled to vest. At least one former worker allegedly lost an allocation that later reached a seven-figure value. Former employees also claimed that Baton Corp., the company behind Pump.fun, conducted another round of layoffs in July.

Coinbase, Crypto.com, Gemini and BitGo have also reduced staff during the broader downturn. The growing number of cuts suggests that companies are preparing for weak market conditions to continue, even as many redirect spending toward automation, derivatives and institutional services.

FalconX’s next steps will center on implementing its narrower Singapore strategy while developing its European business. Further details will depend on whether the company formally confirms the layoffs and explains how the restructuring affects its regional operations.

A former FBI supervisory agent allegedly stole about $1 million in cryptocurrency, mixed it with personal funds, and asked ChatGPT how to use the money and relocate to Europe.

FBI agent allegedly transferred crypto using discovered keys

Federal authorities arrested Yaroch on Friday over allegations that he took cryptocurrency from wallets described in court documents as “adversarial cryptocurrency accounts.”

An affidavit filed on Aug. 1 said Yaroch discovered private keys that gave him access to the digital wallets. He allegedly used those keys to transfer funds to himself through roughly a dozen transactions beginning in late 2024 or early 2025.

Yaroch reportedly told investigators that he was frustrated by his inability to do more to stop people connected to an “adversarial nation” from using cryptocurrency. However, prosecutors allege that he transferred the assets for his own benefit rather than through an authorized seizure or forfeiture process.

The suspected theft totaled approximately $1 million, according to the affidavit. Court documents did not identify the digital assets involved or disclose the wallets from which they were allegedly taken.

Yaroch later told a Department of Justice employee that he had made “some very poor decisions related to cryptocurrency wallets.” During a separate interview, he also acknowledged to federal agents that he had made a serious mistake.

ChatGPT searches covered $1 million and Portugal

Investigators said Yaroch mixed the disputed cryptocurrency with his personal funds and used ChatGPT to consider what to do with the money.

His questions reportedly covered how to spend or invest $1 million and whether he should leave the United States for a European country. The affidavit included a response in which ChatGPT suggested Portugal based on personal details Yaroch had shared, including his family, preferred property size and interest in wine.

“Given everything you’ve told me — [name of Yaroch’s child], your wife, the desire for a 2-5 hectare estate, interest in age-worthy red wine, and the goal of actually living there rather than just owning a property — I would not start by chasing citizenship,” the chatbot responded, according to the affidavit.

The response then identified Portugal as its top option for Yaroch’s stated circumstances. Authorities also found that he had purchased a ticket to Portugal departing on Sept. 3, along with a return flight.

The court filing does not indicate that ChatGPT knew the funds were allegedly stolen. It also does not establish that Yaroch acted on the chatbot’s financial suggestions.

Former agent worked in FBI counterintelligence

Yaroch served as a supervisory special agent in the FBI headquarters’ Counterintelligence and Espionage Division. He had previously worked in the agency’s Boston field office.

His position could become a central part of the case because it may explain how he encountered the wallet keys and assets described in the affidavit. The filing, however, does not publicly detail how the FBI obtained the wallets or what investigation they were connected to.

The FBI fired Yaroch on July 31. He was later charged with interstate transportation of stolen goods and receipt of stolen goods, securities, and money.

The charges remain allegations, and Yaroch has not been convicted.

Crypto custody failures face wider scrutiny

The case comes as cryptocurrency security incidents renew questions about access controls and the handling of wallet credentials.

Coldcard recently faced scrutiny over a five-year seed-generation flaw linked to suspected attacks involving more than 1,800 BTC across over 5,200 potential victim addresses. Galaxy Research cautioned that those figures are on-chain estimates and do not confirm that one attacker caused every loss.

Separately, Ostium said an attacker compromised its off-chain infrastructure and manipulated BTC-USD price reports to drain 23.75 million USDC from its liquidity vault. The protocol said its smart contracts and governance multisigs were not breached.

Yaroch’s case differs because it concerns alleged insider theft by a US law-enforcement employee rather than an external technical exploit. It nevertheless shows how access to wallet keys can bypass other safeguards when custody procedures fail.

A supervising U.S. FBI agent who worked in intelligence at the national headquarters has been arrested and accused in a federal court filing of stealing more than $1 million in cryptocurrency.

The high-level special agent, identified as Patrick Steven Yarmoch, allegedly turned himself in to agency colleagues, reporting that he dug crypto keys from FBI systems to make as many as a dozen transfers to himself from accounts tied to foreign individuals he’d investigated, according to an August 1 account filed with the U.S. District Court for the Eastern District of Virginia.

Yarmoch — who held a “top secret” security clearance — had worked in counterintelligence, specifically with an investigative unit that focused on an unnamed “adversary nation,” according to the court filing, which noted he was suspended for a couple of days before being fired and arrested on July 31.

The resident of Ashburn, Virginia, had worked as a supervisory special agent at FBI headquarters in Washington, specifically in its counterintelligence and espionage division. He’d previously worked for years out of Boston, where he’d been in a national-security unit investigating the adversary nation referenced in the court filing.

FalconX, the digital-asset prime broker that acquired 21Shares last November, has reportedly cut about 10% of its workforce as it braces for what Bloomberg describes as a prolonged downturn in crypto markets. The staff reduction, reported Monday, comes as the firm looks to refocus its business and tighten spending across key regions.

According to people familiar with the matter cited by Bloomberg, FalconX is also reshaping its Singapore strategy—shifting emphasis toward crypto derivatives trading—and plans to withdraw its license application with the Monetary Authority of Singapore (MAS). Bloomberg further reported that the company intends to keep a presence in Asia while expanding its European operations.

Key takeaways

• Bloomberg reports FalconX has reduced roughly 10% of staff as the firm anticipates a longer-than-expected crypto market slump.
• FalconX is reportedly pivoting in Singapore toward crypto derivatives and intends to withdraw its MAS license application.
• The workforce cut affects staff across multiple markets, after FalconX previously had around 350 employees in the US, UK, Singapore, and Hong Kong.
• FalconX’s move aligns with broader industry cost reductions seen across exchanges and crypto service providers during the downturn.
• The report highlights a wider sector shift from pure spot trading toward derivatives and tokenized asset products.

Workforce cuts and a broader corporate reset

Bloomberg, citing people familiar with the matter, said FalconX carried out the layoffs as part of preparations for what it described as an extended downturn. Before the reduction, the company employed about 350 people across the United States, the United Kingdom, Singapore, and Hong Kong, according to the report.

Bloomberg also noted that FalconX is reshaping its strategy in Singapore by placing more focus on derivatives-related activity. At the same time, the firm is reportedly preparing to withdraw its license application with MAS, signaling that it expects its Singapore roadmap to change materially rather than waiting for approval.

Cointelegraph reached out to a FalconX spokesperson for comment but did not receive an immediate response.

Singapore licensing changes signal a strategic pivot

The decision to withdraw a licensing application—if confirmed—marks a tangible adjustment to FalconX’s approach in Singapore. Rather than pursuing the planned regulatory pathway, the firm is reportedly moving toward a derivatives-focused business model while maintaining its wider regional footprint.

Bloomberg’s report also suggested that FalconX plans to keep operating in Asia, but with a different emphasis, while expanding in Europe. For investors and counterparties, these kinds of shifts can affect how firms allocate liquidity, structure partnerships, and manage regulatory risk across jurisdictions.

FalconX’s earlier acquisition of 21Shares in November also frames the importance of this period: prime brokerage activity and related capital markets services can be highly sensitive to trading conditions, volatility, and institutional engagement—variables that tend to soften during extended bear-market stretches.

Industry downsizing grows as trading volumes cool

The reported workforce reduction adds FalconX to a broader list of crypto businesses scaling back operations during the market downturn. Bloomberg’s report places the company alongside moves already seen from exchanges and infrastructure providers, including Coinbase, Crypto.com, Luno, Gemini, and BitGo, according to references cited in the original coverage.

While the scale and reasons vary by firm, the pattern is consistent: when spot activity and retail participation weaken, businesses often reduce headcount and reallocate resources toward segments that may hold up better—such as derivatives, institutional services, and tokenized real-world asset products.

Exchanges increasingly lean on derivatives and tokenized products

Pressure on exchanges has been building as Bitcoin and other digital assets retreated from last year’s highs, weighing on trading volumes and retail engagement. Earlier coverage from Cointelegraph cited analysts who believe Bitcoin may not yet have reached a market bottom, implying that the broader industry could face continued headwinds.

At the time of the original reporting, Bitcoin was last trading below $64,000—about 50% under its October peak above $126,000. In such conditions, many platforms appear to be searching for revenue resilience beyond spot trading.

CoinGecko data referenced in the original article suggests that the “crypto TradFi” sector—covering tokenized assets, derivatives, and traditional finance-style products—grew fivefold to $6.6 billion between January 2025 and June 2026. Tokenized stocks and commodities were described as leading contributors to that expansion.

Coinbase’s most recent earnings, as referenced in the original coverage, also underscored how the mix can shift during a downturn. Even though the company missed earnings expectations, it reported that 88% of second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives, prediction markets, and tokenized assets playing a more prominent role.

Taken together, these developments point to a central industry tension: spot-driven revenue models can be difficult to sustain in extended drawdowns, while firms with deeper derivatives distribution, tokenization services, or institutional market-making capabilities may have more levers to manage through volatility cycles.

What to watch next is whether FalconX’s reported Singapore licensing withdrawal and derivatives emphasis translate into measurable growth in activity—or whether the company’s European expansion becomes the next major operational focus. For the wider market, the key signal will be how quickly trading ecosystems shift their revenue dependence away from spot as conditions remain uncertain.

FalconX, the digital-asset prime brokerage that acquired crypto ETF issuer 21Shares in November, has laid off about 10% of its workforce as it braces for a longer crypto market downturn, Bloomberg reported Monday.

Bloomberg, citing people familiar with the matter, also said the firm is reshaping its Singapore approach—shifting emphasis toward crypto derivatives trading and planning to withdraw its license application with the Monetary Authority of Singapore. The company intends to keep a presence in Asia while expanding its business in Europe.

Key takeaways

• FalconX reportedly cut roughly 10% of staff amid expectations of an extended downturn, according to Bloomberg.
• The firm is reportedly pivoting its Singapore strategy toward crypto derivatives while preparing to withdraw its MAS license application.
• FalconX plans to maintain operations in Asia but is looking to grow its footprint in Europe, Bloomberg said.
• The move aligns FalconX with other crypto firms that have reduced headcount during the market slowdown.
• Broader exchange activity is shifting beyond spot trading toward derivatives and tokenized real-world assets, CoinGecko and Coinbase reporting suggest.

FalconX cuts staff as it plans a longer runway

Before the layoffs, FalconX employed about 350 people across the United States, the United Kingdom, Singapore, and Hong Kong, Bloomberg said. The report frames the cuts as part of a broader effort to operate through what it describes as a prolonged market slump.

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

Strategic pivot in Singapore, expansion in Europe

Beyond the workforce reduction, Bloomberg reported that FalconX is changing course in Singapore. The company is reportedly concentrating on crypto derivatives trading there, while planning to withdraw its license application with the Monetary Authority of Singapore.

While that withdrawal would mark a significant shift in its regulatory posture, Bloomberg also said FalconX expects to remain active in Asia. At the same time, the firm intends to expand its European operations—suggesting management is reallocating risk and resources toward regions it believes can better support its near- to mid-term growth plans.

Part of a wider wave of crypto downsizing

FalconX’s reported cuts add to a growing list of crypto companies scaling back operations during the downturn. Bloomberg’s report places FalconX alongside headcount reductions at exchanges and infrastructure providers mentioned by Cointelegraph, including Coinbase, Crypto.com, Luno, Gemini, and BitGo.

The shared theme is not just lower demand for trading products during a market cool-off, but also an industry-wide reassessment of costs, regulatory exposure, and product focus—particularly as volumes and retail participation tend to soften when asset prices pull back from prior peaks.

Exchanges broaden beyond spot as tokenized finance grows

Market pressure has been felt across trading venues. With Bitcoin and other digital assets retreating from last year’s highs, exchanges have seen trading volumes and retail engagement weigh on performance, and some analysts have argued that the market may still be finding its base rather than having fully bottomed.

Cointelegraph previously noted that some market participants believe Bitcoin has not yet reached a market bottom. At the time of the earlier reporting referenced in the source material, Bitcoin was trading below $64,000—about 50% under its October peak above $126,000.

In response, many exchanges are pushing into areas that can support activity even when spot momentum fades. CoinGecko, as cited in the source, reported that the “crypto TradFi” sector—which includes tokenized assets, derivatives, and other traditional finance products—grew fivefold to $6.6 billion between January 2025 and June 2026. That growth profile points to a strategic shift toward revenue streams less dependent on purely spot-driven cycles.

Coinbase’s latest earnings, cited in the source, also illustrate how some major platforms are positioning around products beyond spot Bitcoin trading. While Coinbase missed earnings expectations, it reported that 88% of second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives, prediction markets, and tokenized assets cited as increasingly important contributors.

For FalconX, the reported emphasis on derivatives in Singapore fits this broader industry pattern: when spot trading slows, derivatives and structured products can help sustain engagement from more sophisticated participants and hedgers. However, the operational implications of withdrawing a license application—while still planning to operate in the region—will be something investors and clients may want to watch closely, since regulatory access can materially affect product availability and timelines.

Going forward, readers should monitor two things: whether FalconX’s European expansion accelerates in tandem with the Singapore changes, and how the firm’s reported shift toward derivatives aligns with the wider migration toward tokenized and TradFi-linked offerings as the market’s next phase remains uncertain.

A new ransomware group is threatening to leak contact details of over 100,000 UK police officers after stealing data from government departments, including the Ministry of Defence (MoD), the Home Office, the National Crime Agency (NCA), and the Crown Prosecution Service (CPS).

The Times confirmed that a dark web listing from the group, known as ExfilSquad, in late July was legitimate, and that it had leaked the full names, email addresses, area of work details, and more, of over 100,000 staff listed on the Police National Legal Database (PNLD). 

Police revealed that the data of 114,000 PNLD subscribers were leaked, and that most of these individuals were police officers.

The leak also included data from 2,615 CPS staff, 617 Home Office employees, 588 NCA staff and 402 MoD personnel 

In all, ExfilSquad claimed to have hacked 15 firms and government bodies, including Microsoft and the UK’s Department for Education.

It had claimed that 135,000 law enforcement records were stolen, but the validity of these claims was reportedly doubted by researchers when it was listed. 

Read more: Iranian hackers suspected of attacking 30 Minnesota water companies

The ExfilSquad page reads, “Once your company’s data is posted here, it’s NEVER leaving the public eye and it will be passed around the internet FOREVER. The payment we request of you is simply a rounding error compared to the litigation costs of your data leaking. Be smart and just pay.”

Hacked firms were given until August 5 to contact ExfilSquad, with The Times reporting that the hack appears to be financially rather than politically motivated. 

ExfilSquad will likely demand a cryptocurrency-based ransom as, like most ransomware and hacker groups, it can move the crypto into mixers, privacy coins, and unregulated exchanges in order to launder the stolen gains. 

Iranian hacking collective CyberAv3ngers, which allegedly disrupted the services of 30 Minnesota water firms last week, has previously tried to sell illegally obtained data for BTC.

The UK is currently planning to ban public sector bodies from paying ransomware groups in a bid to make hacking government bodies unattractive for criminals. 

Leaked data from these attacks can be used in a variety of ways to orchestrate targeted attacks against officials. Indeed, in 2025, a French tax official was arrested after she was found to have used government software to leak the data of prison officials and crypto specialists to criminals. 

A court later denied her request to be released from prison after she tried to argue that she didn’t know who the criminals were. 

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.

Mastercard has completed its acquisition of stablecoin infrastructure provider BVNK, bringing on-chain payment technology into its global network.

Mastercard closes deal for BVNK

Mastercard confirmed on Aug. 3 that it had completed the acquisition of BVNK, expanding its infrastructure for moving value between fiat currencies and digital assets. The payments company first announced the agreement in March, valuing the transaction at up to $1.8 billion, including $300 million in contingent payments.

BVNK provides the underlying infrastructure for businesses and financial institutions to hold, move, manage, and convert money across traditional banking systems and blockchain networks. Its APIs support stablecoin payments, cross-border transfers, payouts, settlements, and treasury operations.

Mastercard said integrating that technology will help connect payment systems that currently operate across separate fiat and blockchain rails.

“Digital currencies — particularly stablecoins — are increasingly addressing real-world needs in areas like cross-border B2B payments, remittances, payouts, settlement and treasury flows,” Mastercard chief product officer Jorn Lambert said.

Lambert added that the company expects fiat currencies, stablecoins, tokenized deposits, and other forms of value to coexist within a connected payment system.

Why BVNK strengthens Mastercard’s stablecoin business

The acquisition gives Mastercard direct control over infrastructure that businesses can use to move between fiat money and blockchain-based assets. That could help the card network provide stablecoin services without requiring clients to build their own on-chain systems.

BVNK operates from London and San Francisco and has spent years securing licenses in multiple jurisdictions. When Mastercard announced the agreement in March, Lambert said buying the company would allow it to enter the market faster than developing comparable technology internally.

The platform’s use cases extend beyond crypto trading. Stablecoins can support round-the-clock settlement, international business payments, remittances, and treasury transfers without relying entirely on traditional correspondent banking channels.

BVNK previously received backing from Concentric, Tiger Global, Haun Ventures, Visa Ventures, Citi Ventures, and Coinbase Ventures.

“When we first invested, stablecoins were far from the financial mainstream,” Concentric co-founder and managing partner Kjartan Rist said.

Rist said the investor viewed stablecoins as an opportunity to rebuild the infrastructure supporting global payments.

Mastercard expands beyond traditional card payments

The BVNK deal forms part of a wider effort by Mastercard to secure a role in blockchain-based commerce.

Mastercard joined Visa, Coinbase, and more than 140 other businesses in June to support Open Standard, a consortium preparing to issue the dollar-pegged Open USD stablecoin. The proposed token will allow businesses to mint and redeem Open USD without fees or volume limits, while participating companies will share earnings from its reserves after management costs. The consortium intends to make stablecoin payments cheaper and easier to scale.

Mastercard also launched Agent Pay for Machines in June with support from more than 30 companies, including Coinbase, Ripple, BVNK, and the Solana Foundation. The service is designed for autonomous software agents conducting high-volume, low-value transactions across cards and stablecoins. Mastercard said users can apply authorization controls and settlement conditions to automated payments.

Together, the initiatives position stablecoins as an additional payment rail within Mastercard’s network rather than a separate system competing only with cards.

What comes next for the BVNK integration

Mastercard must now integrate BVNK’s technology, licenses, and business relationships into its broader payments network. The company has not provided a detailed rollout schedule or disclosed whether BVNK will continue operating under its existing brand.

The transaction also adds another major payment company to the competition over stablecoin infrastructure. Mastercard and Visa are both developing services that connect regulated financial institutions with blockchain settlement systems as U.S. rules give payment providers a clearer framework for using dollar-backed tokens.

Mastercard shares closed Monday at $570.97, down about 0.4%, suggesting the acquisition’s completion produced little immediate reaction from investors.