Crypto World
US lawmakers push to block insider bets on government events
US lawmakers have opened a new front in the fight over prediction markets. A bipartisan House bill now aims to stop top federal officials and their families from trading on government-related outcomes, as pressure also builds around sports and war-linked contracts.
Summary
- PREDICT Act would bar Congress, presidents, appointees, spouses, and dependents from government-related prediction market trades.
- Lawmakers tied the proposal to concerns that insiders could profit from war and policy events.
- Separate Senate and House bills also target sports contracts as pressure grows on platforms nationwide.
Representatives Adrian Smith and Nikki Budzinski introduced the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act, or PREDICT Act, on March 25, 2026.
The bill would bar members of Congress, their spouses and dependent children, the president, the vice president, and political appointees from trading on political events, policy decisions, and other government actions on prediction markets.
The proposal also sets penalties for violations. Reports on the bill say the measure would impose a civil fine equal to 10% of the contract’s value and require any profit to go to the US Treasury. Budzinski said recent market activity raised questions about whether people with inside knowledge could benefit from these trades.
Budzinski said, “we’ve seen instances of little-known traders making massive profits” on events tied to war and government funding fights. Smith said public service must not become “a pathway to profit.” Their comments placed the bill within a wider debate over access to sensitive information in Washington.
That debate has grown in March. On March 17, Senator Chris Murphy and Representative Greg Casar introduced the BETS OFF Act, which would ban wagering on government actions, terrorism, war, assassination, and events where a person knows or controls the outcome. Murphy’s office said unusual trading before military actions involving Iran and Venezuela raised fresh concerns.
Congress is also moving against sports-related contracts. On March 23, Senators Adam Schiff and John Curtis introduced the Prediction Markets Are Gambling Act. Their bill would stop CFTC-registered entities from listing contracts that resemble sports bets or casino-style games.
Schiff said, “Sports prediction contracts are sports bets.” Curtis said the products belong under state control, not federal regulators. Their offices said sports event contracts now trade across all 50 states, even where local law restricts gambling.
Platforms face state action and new rules
The industry is also under pressure outside Congress. On March 20, a Nevada judge temporarily blocked Kalshi from offering event contracts in the state without a license. The case forms part of a wider fight over whether these products are financial tools or unlicensed gambling.
At the same time, Kalshi and Polymarket have tightened their own rules. Kalshi barred political candidates from trading on their own campaigns, while Polymarket revised its rules to block trades by users with confidential information or direct influence over an outcome.
Crypto World
Tempo Unveils ‘Zones’ for Private Enterprise Stablecoin Transactions
The Stripe-incubated blockchain is pitching privacy as the missing piece for institutional stablecoin adoption.
Tempo, the payments-focused Layer 1 blockchain, on Wednesday introduced Tempo Zones, a new feature that lets enterprises run private stablecoin transactions on parallel blockchains connected to Tempo’s mainnet.
The product targets a core friction point for institutions exploring stablecoin rails: public blockchains broadcast every transaction by default. A company processing payroll, for example, would expose individual salary data on-chain, while a payment processor would leak confidential merchant volume with every settlement.
“The parties to a transaction should see the details, the broad public should not, all while retaining the usability and interoperability of stablecoin rails,” the Tempo team wrote in a blog post.
Zones serve as private execution environments where participants can transact without publicly revealing information. Assets remain interoperable with Tempo’s mainnet, meaning users inside a Zone can still access on-ramps, off-ramps, and decentralized exchange liquidity on the base layer.
The Zone operator, which can be the enterprise itself or a third-party infrastructure provider, has visibility into all transactions within its Zone for compliance and reporting purposes, but does not have custody of funds. Assets are locked in a smart contract on Tempo’s mainnet and can only be withdrawn by the owning user.
Tempo said enterprises managing payroll are among the first users of Zones, with broader production deployments planned in phases. The company is currently working with design partners across payroll, treasury, settlement, and tokenized deposit use cases.
The launch adds another layer to Tempo’s pitch to institutional users. The blockchain, which Stripe and Paradigm first unveiled in September 2025, went live on mainnet in March alongside the Machine Payments Protocol, an open standard for AI agent-to-service payments co-authored with Stripe. It raised $500 million in a Series A at a $5 billion valuation in October 2025, and recently onboarded Visa, Stripe, and Zodia Custody as validators.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
Crypto World
Zonda reports 4,500 BTC wallet inaccessible as withdrawals stall
Polish crypto exchange Zonda disclosed that a cold wallet holding about 4,503 BTC is currently inaccessible as withdrawal requests spike and questions swirl around the platform’s governance. In a video posted on X, Zonda chief executive Przemysław Kral showed the wallet address and said the private keys were never handed over, arguing that the handover failed because founder and former chief executive Sylwester Suszek has been missing since 2022.
The disclosure arrives amid weeks of controversy linked to local media reports of a policing probe into Zonda, and a Recoveris analysis that warned the exchange could be insolvent given a sharp drop in the hot wallet balances. The address’s last on-chain activity dates back to November 2025, and the balance remains around 4,503 BTC, valued at roughly $334 million depending on the price at the time of measurement.
Previously, Kral had denied insolvency claims following Recoveris’ April 6 report, reiterating that Zonda remained solvent with more than 4,500 BTC in custody. In the latest video, he attributed the withdrawal pressure to an abnormal spike in requests, driven by negative media coverage. He noted that Zonda normally processes around 100,000 withdrawal requests per year, but more than 25,000 were filed within hours and days around early April. He also vowed to pursue legal action over what he described as false claims and to uphold customer obligations amid the withdrawal surge.
Polish lawmaker Tomasz Mentzen commented on X that Zonda may have lost access to its cold wallet following Suszek’s disappearance. While Kral did not say the funds were lost, he stressed that the private keys were never transferred during the handover. Suszek has been reported missing since March 2022, with coverage referencing alleged criminal ties among some of Zonda’s shareholders when the firm was known as BitBay.
Founded in Poland in 2014 and rebranded as Zonda in 2021, the exchange has been at the center of regulatory and political debate around crypto in the country. Kral told Cointelegraph in February that the company registered in Estonia amid regulatory uncertainty in Poland and delays implementing the European Union’s Markets in Crypto-Assets regime, known as MiCA. The broader context sees Poland balancing national policy with EU rules as regulators weigh stronger oversight of crypto firms and custody practices.
Key takeaways
- The Zonda cold wallet address holds about 4,503 BTC, last active in November 2025, valued at roughly $334 million as markets moved. The private keys were reportedly never handed over to the founders, complicating any potential access recovery.
- Kral attributed withdrawal pressure to an unusual spike around early April, with more than 25,000 withdrawal requests in a short period, far exceeding Zonda’s typical annual pace of around 100,000.
- Recoveris’ analysis and local media reports have fueled insolvency concerns, while Kral has publicly denied such claims and pledged to meet customer obligations while pursuing legal action over what he calls false accusations.
- The ongoing dispute intersects with regulatory dynamics in Poland and the EU, including MiCA-related uncertainties that prompted Zonda to register in Estonia and heightened scrutiny of the Polish crypto sector.
Disclosure of the inaccessible wallet and the stakes for users
The revelation that a sizable cold wallet could be out of reach raises immediate questions for customers relying on Zonda for funds custody and withdrawals. While Kral maintains that the private keys were never transferred, the situation underscores the fragility that can accompany custody arrangements when founders vanish or governance transitions stall. The wallet’s inactivity since late 2025 adds another layer of ambiguity about the future accessibility of those funds and how the exchange intends to honor withdrawal requests already in flight.
Market observers will be watching how Zonda navigates this impasse — whether through legal channels, potential third-party custodial interventions, or other mechanisms to restore confidence among users and counterparties. The balance between public assurances and on-chain realities is at the heart of investor and customer risk in a scenario where a substantial asset holdings appear to be stranded.
Regulatory scrutiny, solvency debates, and the Polish crypto frame
Media coverage of a possible Polish authorities probe has amplified a broader conversation about how crypto exchanges should be supervised in Poland and across the European Union. The Recoveris report, which suggested a potential insolvency risk based on on-chain balances, has interacted with local reporting to amplify investor concern, even as Zonda asserts solvency. The exchange’s leadership has argued that a sudden uptick in withdrawal demand, rather than balance mismanagement, explains the immediate stress around withdrawals.
The case sits at a crossroads of national policy and EU-wide rules. Zonda’s decision to register in Estonia, highlighted by Kral, reflects a strategic coping mechanism to navigate regulatory uncertainty within Poland and the slow rollout of MiCA. As policymakers debate stricter custody standards and clearer licensing pathways for crypto businesses, Zonda’s public custody incidents may sharpen the debate over how quickly and robustly regulators should intervene to protect consumers while fostering innovation.
The unfolding narrative also touches on the sensitive topic of Suszek’s disappearance and the historical governance of the company, which was previously BitBay before the rebrand. Reports of alleged ties between shareholders have added a criminal-justice dimension to the financial and regulatory questions surrounding Zonda. While there is no definitive public linkage announced between Suszek’s disappearance and the current liquidity concerns, the constellation of factors has intensified calls for stronger disclosure and more transparent governance in regional crypto ventures.
What to watch next for Zonda and the broader landscape
Moving forward, observers will scrutinize whether Zonda provides additional on-chain disclosures, updates on the status of the private keys, and any official statements clarifying the custody framework and customer guarantees. Regulators in Poland and across the EU will likely monitor how the exchange resolves withdrawal pressures, communicates with customers, and addresses governance questions stemming from Suszek’s absence and historical leadership changes. The Estonia registration and MiCA implications will be a recurring thread as the sector tests the balance between regulatory compliance and practical operations in a rapidly evolving policy environment.
Readers should stay tuned for any new statements from Zonda, any formal regulatory actions, and further analytical commentary from firms tracking custody risk and on-chain activity. The convergence of custody challenges, regulatory pressures, and a high-profile missing-founder case ensures that Zonda’s next moves will be read as a bellwether for governance standards and investor protection in Poland’s expanding crypto ecosystem.
Sources and context for this report include Zonda’s disclosed wallet narrative and Kral’s video statement, media reporting on the Polish probe, Recoveris’ analysis, on-chain data from Blockchain.com, and related regulatory discussions around MiCA and Poland’s crypto policy framework.
Crypto World
Bitcoin Price Prediction: BTC Stalls at $75K
Bitcoin price prediction turns cautious on Thursday as BTC hovers near $74,921, with profit-taking slowing a ceasefire-driven rally that pulled in $597.5 million in spot ETF inflows over two days.
Summary
- Bitcoin traded at $74,921 on Thursday morning, up 1.7% in 24 hours and 5.5% over the week, as the US-Iran ceasefire rally stalled on profit-taking near the $75,000 zone.
- Spot Bitcoin ETFs drew $597.5 million in net inflows over the past two days, reflecting sustained institutional demand even as price momentum softened.
- IG analysts say a confirmed close above $76,100 is needed to signal bullish continuation, with $72,000 serving as the key support floor below.
Bitcoin (BTC) price prediction points to consolidation Thursday as BTC drifts near $74,921, held up by institutional demand but capped by profit-taking after a sharp week of gains tied to the US-Iran ceasefire. BTC is up 1.7% over the past 24 hours and 5.5% for the week, but the rally is losing steam at familiar resistance.
The S&P 500 set a record on Wednesday. Crypto did not follow at the same pace, underscoring a more cautious investor posture in digital assets relative to equities despite the improved geopolitical backdrop.
The $76,000 level has now rejected price three times. IG analysts wrote Wednesday that “a technical breakout above roughly $76,100 would signal bullish continuation but failure maintains range-bound trading.” The setup has not changed materially: positive macro sentiment from ceasefire hopes is being offset by intermittent profit-taking from traders who bought earlier in the week.
The SuperTrend indicator has flashed green on the daily chart and MACD lines crossed into positive territory, both pointing to underlying bullish structure. But BTC has failed to close above $75,000 on a sustained basis across multiple sessions.
ETF Inflows Provide the Floor
Twelve US spot Bitcoin ETF inflows totalled $597.5 million across the past two sessions, per SoSoValue data. Short liquidations added $152 million in forced buying pressure over the same window, providing mechanical support to the rally even as spot demand from retail traders remains subdued.
The combination keeps $72,000 as the structural floor. A break below that level would invalidate the current bullish thesis and expose BTC to a deeper correction, per the on-chart analysis.
What Moves the Price From Here
The path to $80,000 remains tied to geopolitics more than technicals. Trump told Fox News the Iran conflict is “close to over” and the White House said talks are “productive and ongoing.” Any confirmed ceasefire extension or positive development from resumed negotiations in Islamabad would likely trigger another ceasefire rally similar to last week’s 5% surge to $74,400.
Absent that catalyst, BTC looks likely to continue ranging between $72,000 and $76,000 until diplomatic clarity arrives or the FOMC meeting on April 28 provides fresh macro direction.
Crypto World
Retail traders pile into Allbirds after odd AI pivot. History shows it won’t end well
Sign on facade at shoe company Allbirds, Walnut Creek, California, August 25, 2025.
Smith Collection | Archive Photos | Getty Images
Retail traders stampeded into Allbirds after the troubled shoemaker slapped an artificial intelligence label on its business, a set-up that market history suggests rarely ends well once the initial hype fades.
Shares of the company skyrocketed as much as 582% on Wednesday after the firm detailed shocking plans to rebrand as NewBird AI and shift toward compute infrastructure. The surge added more than $100 million to its market value, which had been just $21 million a day earlier.
Retail investors were quick to embrace the new narrative, data from Vanda Research showed. Net purchases hit a record $5.2 million in a single day, surpassing even demand seen during the company’s 2021 IPO.
Allbirds year to date
This surge of speculative buying reflects a broader return of animal spirits among small traders as the broader stock market rebounded violently from losses triggered by geopolitical risks. The S&P 500 has entirely erased its losses associated from the Iran war and hit a fresh all-time high Thursday.
“The market is not pricing risk. It is pricing narrative. It is pricing the word ‘AI’ the same way it once priced the word ‘blockchain’ and before that the suffix ‘.com,’” Mark Malek, CIO at Siebert Financial, said in a note. “This is not analysis. This is pattern-matching on a buzzword by investors who have watched AI-adjacent stocks go parabolic and do not want to miss the next leg. The signal is not subtle.”
The rise of zero-commission trading platforms helped usher in a new generation of retail investors, lowering the cost of speculation and accelerating the spread of so-called meme trades. That dynamic was on full display during the 2021 GameStop episode, when coordinated buying by individual traders sent the stock soaring and inflicted heavy losses on short sellers, cementing a playbook that continues to resurface in different forms.
From karaoke to AI
A recent example underscores how these episodes can veer into the surreal. Algorhythm Holdings — a little-known karaoke machine and niche consumer electronics maker — stunned markets when it announced a pivot to an AI-driven logistics and compute platform.
“That shift in narrative was enough to spark a sharp pickup in retail flows, with buying persisting beyond the initial headline and helping drive a second leg higher in the stock,” Vanda Research said in a note of Algorhythm.
However, the enthusiasm proved fleeting as the shares have since round-tripped and are now back to roughly $1, underscoring how quickly such narrative-driven gains can evaporate.
The rally in Allbirds has quickly shown signs of strain, with the stock tumbling more than 20% on Thursday as momentum cooled.
Crypto World
Spartans Betting Platform Generates $40 Million GGR While Rollbit and BC.Game Cannot Keep Up
The digital wagering sector in April 2026 is witnessing a technical revolution where speed is the ultimate currency. While Rollbit and BC.Game have defined the previous era of crypto-native gambling, Spartans.com is rewriting the rules through sheer technical performance. During its record-breaking beta phase, Spartans processed $100,000,000 in total deposits, generating an impressive $40,000,000 in Gross Gaming Revenue (GGR).
Currently ranked 14th and climbing globally, the platform has established itself as the fastest withdrawal online casino by integrating proprietary “Degen Zone” technology, allowing for high-velocity wagering and instant payouts that legacy platforms simply cannot match.
Rollbit: The Crypto-Native Ecosystem
Rollbit has long been considered a pioneer in the crypto gambling space, successfully building a multifaceted ecosystem that blends traditional casino games with innovative features like NFT loans and a native token economy. In 2026, it remains a major destination for players who appreciate a broad range of crypto-integrated services.
However, the complexity of the Rollbit platform—designed to manage everything from a sportsbook to a token-burn mechanism—can sometimes lead to a slightly higher latency during peak wagering periods. While Rollbit offers a diverse experience, its core engine is not exclusively optimized for the ultra-high-frequency betting that modern “power users” demand.
Consequently, while it provides a reliable service, it faces stiff competition from specialized, high-velocity engines. For players prioritizing the absolute fastest execution and the most streamlined withdrawal process, the multifaceted nature of Rollbit can occasionally represent an operational trade-off in raw technical speed.
BC.Game: The Gamification Giant
BC.Game is the industry leader in social gamification, keeping its massive user base engaged through a continuous cycle of quests, daily spins, and community-focused incentives. Its platform is a masterclass in retention, offering a deep VIP hierarchy and a wide array of proprietary games. As of mid-April 2026, it continues to thrive by appealing to a broad demographic of social bettors.
However, this focus on gamification results in a “heavy” user interface that can struggle to provide the zero-latency experience required for high-frequency automated betting. BC.Game’s withdrawal infrastructure is robust, but it often involves multiple verification steps and native token conversions that can add time to the payout cycle.
For the elite tier of bettors who treat gambling as a high-performance activity, the social layers of BC.Game can feel like friction. While it remains a top-tier choice for entertainment, it lacks the specialized “Degen” focus found in newer, leaner platforms.
Spartans: High-Velocity GGR and the Degen Zone
Spartans.com has redefined what it means to be a high-performance gambling platform by focusing on the core essentials: speed, liquidity, and technical efficiency. Generating $40,000,000 in Gross Gaming Revenue (GGR) from $100,000,000 in total deposits during its beta phase is a testament to the platform’s unparalleled engagement. This massive revenue result is driven by the proprietary “Degen Zone”, a high-velocity wagering engine designed specifically for automated betting on original titles like Crash, Plinko, and Dice. The Degen Zone allows players to process thousands of wagers per hour with zero latency, making Spartans the definitive choice for the modern power user.
To complement this wagering speed, Spartans has established itself as the fastest withdrawal online casino by utilizing high-speed ADA (Cardano) and AVAX (Avalanche) multi-chain payment rails. These rails ensure that payouts are as instantaneous as the games themselves, bypassing the administrative delays common on other sites. Currently sitting at a 14th global ranking and climbing, Spartans has used its beta performance to prove that technical superiority leads to higher volume and better results.
While the platform offers over 5,900 games from 43+ providers, the “Degen Zone” remains its crown jewel, catering to a segment of the market that demands precision and pace. By stripping away the clutter of social gamification and focusing on raw performance, Spartans is successfully migrating high-stakes volume away from Rollbit and BC.Game, positioning itself as the elite standard for the August 1st global launch.
Conclusion
The technical gap between Rollbit, BC.Game, and Spartans.com is becoming the primary differentiator for the world’s most active bettors in 2026. While Rollbit offers a complex ecosystem and BC.Game excels in social engagement, Spartans.com has captured the high-performance market with its $40M GGR and specialized “Degen Zone.”
As the platform continues its ascent past the 14th global rank, it has firmly cemented its reputation as the fastest withdrawal online casino in the industry. For players who demand instant execution and liquid payouts, Spartans.com provides the ultimate technical edge in the modern crypto-gambling era.
Find Out More About Spartans:
Website: https://spartans.com/
Instagram: https://www.instagram.com/spartans/
Twitter/X: https://x.com/SpartansBet
YouTube: https://www.youtube.com/@SpartansBet
Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.
Crypto World
Tether To Lead $150M Recovery Program for DeFi Platform Drift Protocol
Stablecoin issuer Tether, the company behind USDt (USDT), said Thursday it will back a $150 million recovery program for the Drift Protocol decentralized exchange (DEX) following an exploit of the platform in April.
The recovery plan for the $280 million Drift Protocol exploit includes $127.5 million from Tether, with the rest coming from undisclosed partners, according to Tether’s announcement. Tether said:
“Rather than relying on upfront capital alone, the structure links funding and recovery to ongoing trading activity on the Drift platform, allowing user balances to be restored as the exchange returns to normal operations.”
The Drift Protocol platform will “contribute directly” to the ongoing recovery of user funds as the platform resumes normal trading activity.

Drift will also transition its settlement asset from Circle’s USDC (USDC) dollar-pegged stablecoin to Tether’s USDt as part of the platform’s relaunch.
Cointelegraph reached out to Tether but did not receive a response by the time of publication.
The recovery program highlights a growing trend of crypto industry companies collaborating to restore user funds and help platforms resume normal operations after major hacks or cybersecurity attacks that cause hundreds of millions of dollars in losses.
Related: Drift sends onchain message to wallets tied to $280M exploit
Circle comes under fire for not freezing funds after Drift Protocol attack
Crypto industry executives, cybersecurity researchers and blockchain security firms criticized Circle for not freezing the USDC wallets linked to the Drift Protocol exploiter, despite having a window of several hours to intervene.
The exploiter used Circle’s Cross-Chain Transfer Protocol (CCTP), a native bridge that allows tokens to be transferred to other blockchain networks, to transfer over $232 million USDC from the Solana network to the Ethereum network, according to onchain sleuth ZachXBT.

The funds were transferred in more than 100 transactions, he said, adding, “Despite the attacker laundering funds over six consecutive hours across Circle’s own native bridge, no USDC was frozen. The attacker has been linked to North Korea by Elliptic.”
Circle’s stock sank by about 10% on April 9, following criticism over the company’s failure to freeze the funds from the hack and downgraded forecasts from market analysts. The NYSE-traded shares have since clawed back that decline, increasing about 20% as of yesterday’s close, according to Yahoo Finance data.
Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?
Crypto World
Wall Street tech is coming to crypto as DoubleZero rolls out high-speed data for blockchain
DoubleZero Foundation, a project building high-speed data infrastructure for blockchains like Solana, has rolled out a new platform to speed up how trading firms access crypto market data — a sign of growing demand for Wall Street-style systems in digital asset markets.
The project, called DoubleZero Edge, went live on Thursday. Its first offering is a real-time feed of raw data from the Solana blockchain, giving traders faster access to information that can influence prices.
Solana, a high-speed blockchain popular with traders, produces large amounts of real-time data as transactions are processed. DoubleZero plugs into that system by working with validators to distribute it more quickly to market players.
Unlike traditional finance, where exchanges rely on specialized networks to deliver data at high speed, crypto markets still largely depend on the public internet: a setup that can introduce delays and inconsistencies. DoubleZero is trying to change that by building a dedicated system designed specifically for onchain data.
According to the company, the new network can shave tens of milliseconds off data delivery times, with bigger gains during periods of heavy network activity. For high-frequency trading firms, even small speed improvements can translate into a competitive edge.
The platform works by sending data over a private fiber network using multicast, a method commonly used in traditional financial markets to simultaneously distribute data to multiple participants.
Beyond speed, DoubleZero is also pitching a new economic model. Validators on the Solana network can earn additional revenue by supplying data to the platform, while traders pay to subscribe to the feeds using USDC.
The launch comes as crypto trading firms increasingly seek more reliable, predictable infrastructure, particularly as competition intensifies and margins tighten. DoubleZero says its system could help level the playing field by reducing uncertainty in how quickly market data reaches participants.
“Traditional finance has spent decades building infrastructure where speed and deterministic performance are a real competitive advantage,” said Andrew McConnell, a co-founder of DoubleZero, in a press release shared with CoinDesk. “On-chain markets didn’t get that foundation, which left even sophisticated trading firms working on uneven ground. Deterministic infrastructure removes a risk market makers have to price in, which leads to tighter spreads and better execution.”
Crypto World
Cardano’s Hoskinson says Bitcoin’s quantum fix can’t save Satoshi Nakamoto’s BTC
Bitcoin’s core developers earlier this week proposed freezing 8 million coins to defend against quantum attackers.
But Cardano founder Charles Hoskinson believes it still can’t save coins belonging to the network’s pseudonymous creator Satoshi Nakamoto, per a video posted to his YouTube channel late Wednesday.
Hoskinson said Bitcoin’s proposed defense against quantum computers is both technically mislabeled and structurally incapable of protecting the network’s oldest coins, including the roughly 1 million bitcoin attributed to Satoshi Nakamoto.
He argued that BIP-361, the proposal from developer Jameson Lopp and others to phase out quantum-vulnerable bitcoin addresses, is being presented as a soft fork but would functionally require a hard fork because it invalidates existing signature schemes that users are actively relying on.
“To actually do this, you need a hard fork,” Hoskinson said. The distinction matters because Bitcoin’s development culture has historically opposed hard forks, viewing them as violations of the network’s immutability. BIP-361 authors have described the proposal as a soft fork, a characterization Hoskinson called a lie.
A soft fork tightens the rules so old software still works but can’t use the new features. A hard fork changes the rules so fundamentally that old software stops working entirely and the network splits unless everyone upgrades.
BIP-361 suggests that users with frozen quantum-vulnerable funds could reclaim them by constructing a zero-knowledge proof tied to their BIP-39 seed phrase, a standard for generating wallet keys from a recoverable phrase.
Hoskinson argued this approach cannot rescue approximately 1.7 million bitcoin that predate BIP-39’s introduction in 2013, including the roughly 1 million coins associated with Satoshi’s early mining activity.
Those early coins were generated using a different key derivation method from the original Bitcoin wallet software, which relied on a local key pool rather than a deterministic seed.
There is no seed phrase to prove knowledge of, which means no zero-knowledge recovery scheme built on that assumption can return access to the holders.
“1.7 million coins can’t do that. It’s not possible. 1.1 million of which belong to Satoshi,” Hoskinson said.
If the proposal passes in its current form, those coins would remain permanently frozen regardless of whether their original owners ever attempt to migrate, because migration would require cryptographic proof they are unable to provide.
Jameson Lopp, the core developer who co-authored BIP-361, acknowledged in a post on X this week that he does not like the proposal and hopes it never needs to be adopted, describing it as “a rough idea for a contingency plan” rather than a finalized specification.
Lopp has argued that freezing dormant coins, which he estimates at 5.6 million bitcoin, would be preferable to allowing a future quantum attacker to recover and dump them on the market.
Hoskinson’s broader critique extends beyond the technical details. He argues that Bitcoin’s lack of formal on-chain governance leaves the network unable to resolve these tradeoffs through a structured process, forcing contentious upgrades to be negotiated through developer mailing lists and social pressure.
Crypto World
FCA releases finalized cryptoasset rules that include several technical traps to watch out for
The U.K.’s Financial Conduct Authority (FCA) is proposing crypto rules that could quietly expand the definition of custody, potentially sweeping in platforms and software providers that don’t consider themselves custodians.
The FCA published its Cryptoasset Perimeter Guidance on Wednesday, which includes a few technical traps for firms handling clients’ crypto assets.
The rules draw a red line at the 24-hour mark for custody. Any firm or crypto platform or app holding client assets for longer than a day during trade settlement will likely fall under the regulated custodian classification, which triggers a requirement for a full safeguarding-license.
Validators and node operators also need to proceed with caution. The regulator warned those involved in those activities will lose their pure tech exemption the moment they provide “added value” features. That includes things like user dashboards, yields or reward-compounding tools. In those cases, they must seek full approval for arranging staking.
“Our new perimeter gives us the tools to strengthen protections for consumers and support fair, transparent and orderly markets as the sector matures,” the FCA stated in the paper.
Also noteworthy is that for the first time, the FC has addressed the “shadow custody” issue. The financial watchdog made it clear that if a crypto service provider allows it to theoretically override a client’s authority, it is officially a custodian even if it guarantees it will never exert that power.
“The fact that an arrangement involves smart contracts, public blockchains or some elements of decentralisation does not determine the perimeter position or place the arrangement outside of regulation,” the document noted.
For stablecoin issuers, the mandate is equally blunt as it considers issuance legal only if the issuer is established in the United Kingdom and manages the entire lifecycle. That includes everything from the initial offering to redemption and reserve maintenance.
The FCA requested views on these proposals until the consultation closes on June 3, 2026, it said in a separate statement Wednesday. The regulator intends to publish finalized rules in policy statements this summer, followed by the final perimeter guidance in September.
The roadmap forces all entities providing crypto services to transition from the current money-laundering registrations systems to a more strict approval regime under the U.K.’s Financial Services and Markets Act (FSMA).
Firms intending to continue in business under the new regulations face a five-month application window from Sept. 30 of this year to Feb. 28, 2027. Missing this deadline exposes them to potential fines and suspensions as well as permanent closures.
Only those who apply during the application period will benefit from the so-called “savings provisions” that allow them to keep operating while the regulator deliberates.
Crypto World
BTC slides after failing at key resistance levels
Bitcoin quickly pulled back in U.S. morning trade on Thursday, slipping 2% in a matter of minutes after once again failing to push through what’s becoming stiff resistance.
The largest cryptocurrency fell to around $73,500 during the U.S. morning session, now lower by more than 1% over the past 24 hours. The move came after the crypto was turned back yet again after rising past $75,000.
Alongside, the breathtaking stock market rally — which yesterday sent the Nasdaq and S&P 500 to record highs — took a pause. A bit more than an hour into the session, both of those indices were lower by about 0.1%.
Crypto-linked stocks also pulled back across the board. Coinbase (COIN), Strategy (MSTR), Robinhood (HOOD) and Circle (CRCL) were all down roughly 2%-3% in morning trading.
Meanwhile, crude oil prices rose about 2%, reclaiming the $90 level, as ongoing geopolitical tensions continued to underpin supply concerns.
The $75,000-$76,000 range is key for bitcoin, as that was the level it traded at prior to the Feb. 5 market crash that took BTC down to $60,000. A rise past that level might suggest a larger move that could bring prices back to around the $90,000 mark at which bitcoin started the year.
Software catching up to bitcoin
Bitcoin and software stocks were moving almost in lockstep prior to the Middle East conflict at the end of February, with a near 1:1 correlation. During this period, bitcoin has been outperforming IGV, the software ETF.
Since the conflict began at the end of February, bitcoin has gained more than 11%, while IGV has risen by roughly 2%, prompting a narrative that bitcoin was beginning to decouple from software equities.
However, over the past five days, IGV is catching up and is up by as much as 11%, while bitcoin has been flat. This suggests that rather than a clean decoupling, software may have simply been lagging bitcoin and is now catching up.
IGV is up 1% on Thursday, while bitcoin is down 1.5%.

-
Politics6 days agoUS brings back mandatory military draft registration
-
Sports6 days agoMan United discover Nico Schlotterbeck transfer fee as defender reaches Dortmund agreement
-
Fashion6 days agoWeekend Open Thread: Veronica Beard
-
Politics6 days agoMalcolm In The Middle OG Turned Down ‘Buckets Of Money’ To Appear In Reboot
-
Politics4 days agoWorld Cup exit makes Italy enter crisis mode
-
Business6 days agoTesla Model Y Tops China Auto Sales in March 2026 With 39,827 Registrations, Beating Cheaper EVs and Gas Cars
-
Crypto World3 days agoThe SEC Conditionalises DeFi Platforms to Be Avoided for Broker Registration
-
Crypto World3 days agoSEC Signals Exemption for Crypto Interfaces From Broker Registration
-
News Videos1 day agoSecure crypto trading starts with an FIU-registered
-
NewsBeat4 days agoPep Guardiola and Gary Neville agree over Arsenal title problem that benefits Man City
-
Business5 days agoIreland Fuel Protests Enter Day 5 as Blockades Spark Shortages and Government Prepares Support Package
-
Business6 days agoOpenAI Halts Stargate UK Data Centre Project Over Energy Costs and Copyright Row
-
Politics6 days agoLBC Presenter Mocks Trump Over Iran War Failures
-
Crypto World6 days agoFederal judge blocks Arizona from bringing criminal charges against Kalshi
-
NewsBeat2 days agoTrump and Pope Leo: Behind their disagreement over Iran war
-
Crypto World2 days agoSEC Proposes Certain Crypto Interfaces Don’t Need to Register as Brokers
-
NewsBeat4 days agoJD Vance announces ‘no agreement’ with Iran over nuclear weapons fear
-
Tech7 days agoA version of Windows 10 released a decade ago is now eligible for additional security patches
-
Business6 days agoIMF retains floor for precautionary balances at SDR 20 billion
-
Business6 days agoFormer Liverpool CEO eviscerates FIFA for World Cup ticket pricing





You must be logged in to post a comment Login