Cryptocurrency use for transactions involving human trafficking surged 85% in 2025.

According to a Feb. 13 Chainalysis report, which tracked cryptocurrency-facilitated human trafficking payments tied to escort services, labor recruiters connected to Southeast Asian scam compounds, and child sexual abuse material, among other categories, the networks comprised cryptocurrency transactions valued at “hundreds of millions of dollars across identified services.”

Chainalysis said that the various payment methods involved ranged from Bitcoin and alternative Layer 1 tokens to stablecoins. Meanwhile, platforms involved with facilitating these transactions included Chinese-language money laundering networks and various Telegram-based services that operated guarantee and escrow mechanisms to coordinate and confirm payments.

Large transactions were primarily centered around Telegram-based international escort networks, with 48.8% of each transaction exceeding $10,000. These platforms were mostly reliant on stablecoin payments, per the report.

Transactions in connection with CSAM were smaller in size, with an average value under $100. However, one platform tracked by Chainalysis had reportedly used over 5,800 cryptocurrency addresses and accumulated over $530,000 since July 2022. These platforms, which previously operated primarily using Bitcoin (BTC), were found to be using privacy-focused Monero (XMR) to launder the proceeds.

“Instant exchangers, which provide rapid and anonymous cryptocurrency swapping without KYC requirements, play a crucial role in this process,” Chainalysis said.

Meanwhile, Scam compounds use a combination of Telegram-based recruitment channels, guarantee platforms like Tudou and Xinbi, and stablecoin payment rails to coordinate and process payments.

As previously reported by crypto.news, these organizations lure in victims through fake job offers before forcing them to operate various crypto-linked scams under inhumane conditions.

Chainalysis was able to trace the flow of funds from several different countries like the United States, United Kingdom, Brazil, Spain, and Australia, to Chinese-language services that processed large-scale stablecoin transactions and facilitated laundering through Southeast Asian trafficking networks.

“While traditional trafficking routes and patterns persist, these Southeast Asian services exemplify how cryptocurrency technology enables trafficking operations to facilitate payments and obscure money flows across borders more efficiently than ever before,” Chanalysis said.

Cryptocurrency technology has long been criticized for supporting criminal activity by helping bad actors circumvent traditional financial controls and oversight. Recently, there has been renewed scrutiny over its role in ransom demands and alleged links to early crypto investments associated with Jeffrey Epstein.

However, Chainalysis notes that the underlying blockchain technology can be leveraged to detect and disrupt trafficking operations, as it offers visibility that is not possible with cash transactions. 

It urged compliance teams and law enforcement to adopt proactive monitoring strategies and track key risk indicators.

TLDR:

• Record Protocol raised $3.2M exclusively from Sony Innovation Fund to expand blockchain entertainment.
• The platform converts fandom contributions into verifiable onchain assets through the $REC token economy.
• IRC APP successfully onboarded major Japanese idol groups including AKB48, Nogizaka46, and FRUITS ZIPPER.
• Record establishes IPFi infrastructure on Soneium, creating liquid assets tied to intellectual property.

Record Protocol has closed a $3.2 million funding round led by Sony Innovation Fund. The investment supports YOAKE entertainment’s blockchain infrastructure development for entertainment intellectual property finance.

The company will expand collaboration with Sony Block Solutions Labs on Soneium. This connects traditional entertainment properties with blockchain technology through fandom-driven models.

Sony Innovation Fund Backs Blockchain Entertainment Platform

YOAKE entertainment received 500 million JPY from Sony Innovation Fund to advance Record Protocol’s technological capabilities.

The company converts fan engagement into verifiable onchain assets. Sony Block Solutions Labs deepens involvement as a key contributor.

The partnership positions Record Protocol as foundational infrastructure for Intellectual Properties Finance on Soneium. The funding enables Record to scale its protocol across multiple entertainment sectors globally.

Kaz Hadano, CEO at Sony Ventures Corporation, expressed confidence in the partnership. “YOAKE entertainment’s efforts to deliver Japanese creativity to the world will broaden the possibilities of entertainment in the future,” Hadano stated.

He anticipates results from their collaboration with Soneium and their challenge to create new entertainment connecting intellectual property, technology, and global fan communities.

Record Protocol measures and rewards fandom contributions previously unmeasured in traditional entertainment economics.

Social media activity, community building, and content amplification now translate into verifiable demand signals onchain. The $REC token financializes these contributions, creating liquid assets tied to intellectual property growth.

This approach integrates directly with official intellectual property ecosystems, leveraging authentic fandom passion rather than financial incentives alone.

Proven Implementation Through Japan’s Idol Entertainment Sector

IRC APP demonstrates Record Protocol’s application as the official onchain platform for IDOL RUNWAY COLLECTION Supported by TGC.

The application employs Generative AI to evaluate fandom activities. Record Protocol verifies support onchain and distributes exclusive official experiences as rewards.

The platform has onboarded Japan’s most prominent idol groups. AKB48 brings over 60 million singles sold and more than 60 number-one Oricon hits.

Nogizaka46 contributes over 30 million album sales and international concert presence across France, Singapore, Hong Kong, Shanghai, and Taiwan.

FRUITS ZIPPER achieved 3 billion TikTok views and 64 million YouTube views for their hit song. CANDY TUNE recorded 100 million streams and maintained the number one position on TikTok charts for nine weeks. CUTIE STREET’s debut song surpassed 200 million streams with 7 billion total TikTok views.

Sota Moriyama, CEO at YOAKE entertainment, emphasized the role of fandom in entertainment economics. “Fandom has always been the beating heart of the entertainment economy,” Moriyama commented.

He explained their approach does not disrupt content but updates the operating system behind it. “We are committed to establishing Record as the universal standard on Soneium, proving that passion is the ultimate form of value,” he added.

TLDR:

• • CFTC appoints 35 industry leaders to Innovation Advisory Committee for derivatives oversight 
  • Committee includes executives from Coinbase, Kraken, Gemini, CME Group, and Nasdaq platforms 
  • Chairman Selig aims to future-proof markets through collaboration with diverse stakeholders
  • Academic experts and venture capital firms join traditional finance leaders on advisory panel

The Commodity Futures Trading Commission announced the members of its Innovation Advisory Committee on February 12, 2026.

Chairman Michael S. Selig nominated 35 industry leaders representing cryptocurrency platforms, traditional exchanges, and clearing organizations.

The committee will advise the agency on emerging technologies, including artificial intelligence and blockchain. Michael Passalacqua was named as the designated federal officer for the panel.

Diverse Industry Representation Across Financial Sectors

The newly formed committee brings together executives from various segments of the financial markets. Cryptocurrency exchange leaders include Brian Armstrong from Coinbase, Arjun Sethi from Kraken, and Tyler Winklevoss from Gemini. Traditional market operators such as Terry Duffy of CME Group and Adena Friedman of Nasdaq also joined the panel.

The CFTC shared the announcement through its official social media channels. The agency posted details about the committee formation and member appointments. The communication emphasized the collaborative approach between regulators and market participants.

Prediction market operators received representation through Shayne Coplan of Polymarket and Tarek Mansour of Kalshi. Sports betting platforms gained seats with Jason Robins from DraftKings and Christian Genetski from FanDuel.

Blockchain infrastructure providers include Hayden Adams of Uniswap Labs and Anatoly Yakovenko of Solana Labs.

Academic perspectives will come from Professor Harry Crane and Professor Carla Reyes. Venture capital representation includes Chris Dixon from a16z crypto and Alana Palmedo from Paradigm.

Clearing and settlement infrastructure leaders such as Frank LaSalla from DTCC round out the diverse membership roster.

Forward-Looking Regulatory Framework Development

Chairman Selig described the committee formation as marking an important moment for the agency. “Today marks an important and energizing moment at the CFTC as the Innovation Advisory Committee takes shape,” he stated.

The chairman added that the group’s work would help ensure decisions reflect market realities and future-proof markets.

The committee will focus on helping the Commission adapt to rapid technological changes. Members will provide expertise on how innovations are reshaping derivatives and commodity markets.

Chairman Selig emphasized the goal of developing clear rules for what he called the Golden Age of American Financial Markets.

Maintaining America’s position in global financial markets represents a key priority for the Commission. “America is home to the most transparent and well-regulated financial markets in the world, but we cannot assume that this will always be the case,” Chairman Selig cautioned. He stressed the importance of continuous modernization efforts to preserve this status.

The chairman highlighted the value of diverse market perspectives in regulatory development. “By bringing together participants from every corner of the marketplace, the IAC will be a major asset for the Commission,” Selig explained.

The agency aims to modernize rules and regulations for current and future innovations through this collaborative approach.

TLDR

• Xiaomi’s YU7 SUV outsold Tesla’s Model Y in January with 37,869 units sold.
• The YU7’s competitive pricing and extended driving range give it an edge over Tesla.
• Tesla’s Model Y saw a significant drop in January, falling to 20th place in sales.
• Xiaomi aims to expand its electric vehicle offerings internationally, including in Europe by 2026.
• Xiaomi’s strong performance came despite a general slowdown in China’s electric car market.

Xiaomi has surpassed Tesla in electric vehicle sales in China in January. The Xiaomi YU7 SUV achieved strong sales, making it the top-selling electric car model in the country and placing Tesla behind in the rankings.

Xiaomi launched the YU7 as its second electric car model in the summer of 2025. It has quickly gained traction in the competitive electric vehicle market. The company strategically priced the YU7 at 10,000 yuan below Tesla’s Model Y, claiming its car outperforms Tesla’s in key areas, including driving range on a single charge.

Xiaomi’s YU7 SUV Leads in January

According to CNBC, the YU7 secured first place in China’s electric car sales in January. With 37,869 units sold, it nearly doubled Tesla’s sales of the Model Y, which sold 16,845 units.

This achievement marks a shift in the dynamics of China’s electric vehicle market, where Tesla had previously dominated. Xiaomi’s aggressive pricing strategy, offering the YU7 at a starting price lower than the Model Y, may have contributed to its success.

The car’s longer driving range on a single charge also gives it an edge over Tesla in this competitive segment. As a result, the YU7 has drawn attention as a strong contender in the market.

Tesla’s Model Y Drops in January Rankings

Tesla’s Model Y, which was the best-selling electric vehicle in China in December, experienced a dramatic fall in January. It dropped to 20th place in sales, behind several other models, including Xiaomi’s YU7.

The Model Y also slipped from first place in the new energy vehicle category to seventh place. This shift in rankings highlights the volatility of the electric car market, especially with new entrants like Xiaomi gaining ground

Despite its strong performance in previous months, Tesla’s position in China has weakened as local competitors expand. However, monthly sales figures are often subject to fluctuation, and Tesla remains a major player in the industry.

Xiaomi’s Growth Despite Market Slowdown

Xiaomi’s strong performance in January came amid an overall slowdown in China’s electric car market. While many companies have seen their sales figures drop, Xiaomi’s YU7 has captured consumer attention.

The company’s earlier sedan model, the SU7, faced challenges but still contributed to Xiaomi’s growing market presence. Despite the market’s slow pace, Xiaomi plans to expand its electric car offerings further.

Xiaomi intends to enter international markets, including Europe, in 2026. This expansion could help Xiaomi build on its early success in China and challenge global electric vehicle giants like Tesla.

TLDR:

• Bitcoin volatility spiked significantly on October 10 and remained elevated through November and February. 
• Nexo received nearly 1,500 BTC in November, triple the previous month, totaling over 43,000 BTC deposited. 
• Excess leverage in derivatives markets amplifies liquidations that mechanically intensify price movements. 
• Investors increasingly use collateralization platforms to generate yield while preserving capital exposure.
  

Bitcoin volatility continues to climb as the cryptocurrency undergoes an ongoing correction phase. Market observers note increased stress within the fragile crypto ecosystem. Investors now face a choice between enduring turbulent conditions or deploying strategic solutions.

Some platforms report growing inflows as traders seek yield-generating opportunities during uncertain times. The pattern reveals how behavior shifts when price swings intensify across digital asset markets.

Volatility Surge Marks Recent Market Conditions

Bitcoin volatility has accelerated since late summer, creating challenging conditions for market participants. The cryptocurrency experienced a notable spike on October 10 during a historic liquidation event.

This event affected the entire crypto market and led to heightened volatility. Since then, price swings remained pronounced throughout November, late January, and early February.

Macroeconomic uncertainty compounds the existing market fragility. Incomplete data following recent economic disruptions adds to investor concerns.

Heightened geopolitical tensions further contribute to an unstable trading environment. These factors combine to create additional stress on an already weakened market structure.

Derivatives markets exhibit excess leverage that amplifies price movements. Chain liquidations occur mechanically when positions reach critical thresholds.

These liquidations intensify downward price action and reinforce volatility patterns. The feedback loop between leverage and liquidations creates cascading effects across exchanges.

According to analyst @Darkfost_Coc, this environment reflects logical market behavior given prevailing conditions. The combination of factors produces expected stress responses in crypto markets.

Traders navigate these conditions with varying strategies and risk tolerances. Market dynamics continue to evolve as volatility remains elevated.

Platform Activity Reflects Strategic Positioning

Nexo, a platform offering CeFi services, demonstrates a correlation between volatility and Bitcoin inflows. November recorded approximately 1,500 BTC transferred to the platform.

This figure represents nearly triple the previous month’s deposit activity. The trend suggests investors actively seek collateralization and yield-generation solutions during volatile periods.

January saw roughly 1,100 BTC flow into Nexo as market stress continued. February has already accumulated over 630 BTC in new deposits.

The sustained pattern extends across multiple months of heightened volatility. Platform data reveals consistent investor interest in these financial strategies.

Nexo currently holds more than 43,000 BTC deposited by users. The total represents over $2.7 billion in Bitcoin value.

Cumulative deposits illustrate a strong appetite for leveraging existing holdings productively. Investors utilize these services to optimize exposure while maintaining capital preservation.

Near-term sentiment around Bitcoin remains cautious among market participants. However, the longer-term outlook maintains a constructive perspective on the asset.

Solutions offered by platforms allow investors to navigate uncertainty strategically. These approaches enable capital optimization without requiring complete position liquidation during turbulent market phases.

Bitcoin (BTC) formed a new weekly low at $65,500 on Thursday, as the price has continued to trend lower over the past four days. Derivatives data also indicate that traders are heavily positioned to the downside. 

Analysts said that this setup may lead to a sharp move higher that forces sellers to close their positions, even as other indicators hint that the move may not be straightforward.

Key takeaways:

• The seven-day average funding rate for Bitcoin has turned strongly negative for the first time since March 2023 and November 2022.

• Bitcoin liquidity and stablecoin flow data show renewed capital outflows, reducing the odds of a sustained squeeze.

Bitcoin funding stays red as short positions rise

Bitcoin’s daily funding rate has remained in deep red territory since the beginning of February, marking its most negative period since May 2023. The seven-day simple moving average (SMA) has flipped negative for the first time in nearly a year.

The funding rate is a periodic payment between the traders in futures markets. When it is negative, the short sellers pay long traders, signaling that the bearish positions are crowded, and vice versa.

Crypto analyst Leo Ruga said the current “red funding rate for days” signals that the bearish or short trade may be getting overcrowded. Ruga added:

“This is the kind of negative funding that typically appears during bottoming phases. Not because shorts are wrong, but because extended negative funding often marks exhaustion of selling pressure.”

Similarly, market analyst Pelin Ay highlighted that the funding rate recently dropped near -0.02 last Friday, with sharp negative spikes. Ay added that when sharp price declines coincide with negative funding, it can set the stage for a short squeeze, particularly if $58,000 holds as the local support. 

Related: Bitcoin must close week at $68.3K to avoid ‘bearish acceleration:’ Analyst

The last time Bitcoin’s daily funding rate stayed deeply negative for 10 to 20 days after a bullish phase was in May 2021 and January 2022. In May 2021, BTC corrected for nearly two months before breaking out to new highs. In January 2022, the negative stretch preceded a broader bearish cycle. Thus, extended negative funding has not consistently produced an immediate reversal in the past

Onchain data supports a cautious view. Bitcoin researcher analyst Axel Adler Jr. noted that the SSR oscillator, which measures Bitcoin’s strength relative to stablecoins, has mostly stayed in negative territory since August 2025. 

A brief move into positive territory in mid-January (+0.057) coincided with a rally above $95,000, but the oscillator has since dropped to -0.15 as the price pulled back toward $67,000.

Stablecoin flows tell a similar story. The 30-day change in USDt (USDT) market cap turned positive in early January (+$1.4 billion), but it has since reversed to -$2.87 billion, signaling a period of capital outflows.

Until liquidity trends and the SSR oscillator turn sustainably positive, Adler Jr. said that the BTC market remains in a “risk-off” phase.

Related: Binance completes $1B Bitcoin conversion for SAFU emergency fund