Crypto Industry News & Market Trends

Coldcard exploit sparks Bitcoin flight, ‘bullish’ crypto consolidation: Hodlers Digest, August 2

Cold storage fears after Coldcard users lose $90M in Bitcoin　　After $90 million in Bitcoin was drained from Coldcard wallet users, small hodlers desperately sought refuge on centralized exchanges and via alternative custody methods.　　Bitcoin transfers below 1 BTC climbed to their highest daily level since 2022 on Friday, with 39,600 BTC moved, according to data shared by CryptoQuant head of research Julio Moreno on Saturday.　　The figure was just 300 BTC below the 39,900 BTC transferred on Nov. 16, 2022, days after FTX filed for bankruptcy.　　Galaxy Research, the research arm of crypto investment company Galaxy Digital, reported Saturday that the third wave of attacks on users of the hardware wallet on the weekend brought estimated losses to 1,367 BTC ($88.6 million) across 4,585 addresses.　　Alex Thorn, Galaxy Digitals head of firmwide research, warned in an X post on Sunday that the attack was still ongoing and urged users to move funds from Coldcard-generated addresses immediately if they had not already done so. The exploit reportedly targets a flaw in the Coldcard seed generation process, that did not employ a genuinely random number generator.Source: Alex Thorn　　Clarity Act clock running out: No vote, or ‘no’ vote？　　President Donald Trump is considering a revised ethics proposal for

08-03Industry

A tiny cluster of Solana bots unlocked a 3x trading advantage by routing through one proprietary protocol

New research into automated trading on Solana found a nearly threefold difference in positive wrapped SOL outcomes inside one small group of bots. Transactions that invoked HumidiFi, which the paper classifies as a proprietary automated market maker, recorded a positive WSOL balance change about 62.3% of the time. Other transactions in the same 12-address group did so at a 21.01% rate.　　The comparison covered 244,733 HumidiFi-invoking transactions, including 152,502 with a positive WSOL balance change, and 218,678 other transactions, including 45,949 with a positive change. The rate ratio was about 2.97.　　The edge appeared in one narrow cluster　　The ASE 2026-accepted paper examined 200 addresses associated with two trading-oriented bot services on the Solana network. The researchers selected the top 100 addresses linked to Trojan and the top 100 linked to SolanaMevBot, then collected their transactions from Oct. 1 to Nov. 1, 2025. They grouped 158 addresses into four clusters using measures such as transaction intensity, execution success, fees, and asset breadth, while treating 42 addresses as noise.　　The paper also studied 586 public bot repositories, but that software sample was built separately and cannot be connected to the 200 on-chain addresses. Its authors published a replication package through Zenodo.　　Transaction-pattern reviews and service labels

08-03Industry

Bitcoin under pressure: Will rising U.S. treasury yields trigger BTC selling？

The crypto market has stayed under pressure as capital steadily drains out of the space, and total market capitalization for digital assets now hovers near $2.17 trillion while valuations struggle to find a floor.　　Fragile economic conditions and the prospect of fresh action from the Federal Reserve remain a key threat to the outlook, and either one could weigh further on price performance across the board.　　Rate hike could be next　　Crypto analyst Benjamin Cowen expects the U.S. 10-year Treasury yield to keep gaining strength and sees a high chance of it reclaiming the 5% mark in the near term.　　A rising yield reflects instability in an economy, particularly around inflation, and Cowens prediction lands as the U.S. 30-year bond yield crossed 5.28% on the 31st of July, one of its highest levels since 2007.　　Source: TradingViewBenjamin Cowen　　The climb has been building for weeks, drawing investors toward lower-risk assets and steadily pulling capital away from bets like Bitcoin [BTC]. Cowen noted lowering rates does not automatically translate into lower yields, and he pointed to 2024-2025 as his case study.　　The Fed cut rates from 5.5% to 3.75% from 2024-2025 and yet the 30 year yield is higher today than when interest rates were 5.5%!　　He ties the

08-03Industry

CLARITY Act vanishes from Mondays Senate schedule, triggering 72-hour countdown to save it before recess

The Senates published floor plan for Monday contains no action on the CLARITY Act. Instead, senators are due to reconvene at 3 p.m., with the only listed roll-call vote at about 5:30 p.m. on cloture for the motion to proceed to H.R. 6500, a continuing-resolution vehicle.　　The chamber‘s cloture ledger, updated through July 31, likewise shows the July 30 filing on H.R. 6500 but no entry for H.R. 3633 or the Digital Asset Market Clarity Act. That does not kill the crypto market-structure bill, but it leaves leaders without a publicly listed floor path while the Senate’s tentative calendar approaches an Aug. 10 state work period.　　Under the Senates ordinary Rule XXII, a cloture petition needs 16 signatures. The cloture question normally comes one hour after the Senate meets on the following calendar day but one. Cloture on a motion to proceed generally requires three-fifths of senators duly chosen and sworn, normally 60 votes when all 100 seats are filled.　　A Wednesday, Aug. 5, filing could therefore produce a Friday cloture vote if the Senate is in session for the filing and meets Friday. That vote would concern ending debate on the motion to proceed, not passing CLARITY. If cloture is invoked, Rule

08-03Industry

Coinkite Faces Class Action Threat as Bitcoin Wallet Bug Costs Users Over 1,300 BTC

Key TakeawaysVictims are planning class-action lawsuits against Coinkite after losing $88 million to the Coldcard wallet bug.Legal experts are sharply divided on Coinkite‘s liability, complicating victims’ prospects for recovering funds.These potential product liability cases could establish major legal precedents for crypto hardware wallet makers.　　Users Prepare To Exert Legal Action Against Coinkite Over Coldcard Vulnerability　　Coinkite, the company behind the Coldcard series of hardware wallets, might face legal action from users who have collectively lost over 1,300 BTC linked to the vulnerability in the seed phrase generator used by some of its models.　　Thomas Braziel, founder and managing partner of 117 Partners, is studying how to act against the company, mentioning targeting product liability claims and even pursuing a class action lawsuit against the manufacturer.　　Braziel is currently coordinating and gathering information from victims internationally before embarking on these actions.　　Discover more　　stochastics　　Engineering it has no sales volume, despite being the largest in this matter of self-custody; in the real world outside of bitcoin, it represented nothing, a tiny company,”he told Livecoins.　　Opinions are divided on whether Coinkite might be held liable for these losses. Cris Carrascosa, CEO of ATH21, a legal firm, stressed that Coinkite had “zero regulatory responsibility over the funds of the users of

08-03Industry

Minnesota Ban Nudify Apps: Court Upholds Law Amid xAI Challenge

A federal judge has cleared the way for Minnesota‘s Minnesota ban nudify appslaw to take effect, rejecting an eleventh-hour attempt by Elon Musk’s xAI to freeze the rule before it became binding on August 1. U.S. District Judge Donovan Frank denied the companys request for a temporary restraining order, a ruling that hinged less on the merits of the law itself and more on how late xAI moved to challenge it.　　Key takeawaysJudge Donovan Frank denied xAI‘s bid to block Minnesota’s first-in-the-nation ban on “nudify” technology just before it took effect on August 1, 2026.Frank said xAI waited nearly three months after the law was signed and filed its emergency motion only three days before the deadline, undercutting claims of urgent harm.xAIs underlying lawsuit continues and argues the law is overinclusive, covering constitutionally protected images while less restrictive options exist.The law carries a penalty of $500,000 per violationand followed a backlash after xAIs Grok chatbot was used to generate non-consensual sexualized images on the platform X.　　Court denies xAI‘s bid to block Minnesota’s nudify app ban　　Judge Frank‘s ruling makes clear that Minnesota’s crackdown on nudify appscan move forward while the broader legal fight plays out in court. The decision doesn‘t resolve whether

08-03Industry

The future of crypto payments won't include on-ramps or bridges, Fun CEO says

While those applications have become increasingly visible, the infrastructure that enables deposits, withdrawals and settlement has largely remained behind the scenes.　　Fun is one of the companies building that infrastructure. The firm said it powers 100% of deposits and withdrawals on Polymarket and deposit flows into Aaves largest vaults, while processing more than $3 billion in monthly transaction volume.　　The company has raised more than $75 million to date.　　From payment rails to funding flows　　Fine said todays crypto payments ecosystem remains unnecessarily fragmented, with developers forced to stitch together different card processors, banking partners, crypto assets, blockchains and bridges to create funding experiences.　　Instead of relying on individual payment rails, platforms should optimize around the end goal of getting users funded as quickly and seamlessly as possible, he says.　　“In Web2, payments are highly fungible,” Fine said. “In Web3, theyre much more complex because every payment method behaves differently. Teams keep rebuilding the same infrastructure over and over again instead of building unified optimized funding flows.”　　That shift means many existing crypto payment businesses risk becoming obsolete, according to Fine. Companies built around converting fiat into crypto or moving assets between blockchains are solving an intermediary step that users never cared about in the first place,

08-03Industry

Another crypto wallet pulls the plug tomorrow with no exact cutoff, leaving users racing to rescue tokens

Ctrl Wallet users have reached the apps last scheduled day of full service. On Aug. 3, sending, receiving, swaps, and dApp connections are due to stop, leaving recovery-phrase export as the only function.　　Ctrl markets the non-custodial wallet as supporting more than 2,500 blockchains. Its deprecation notice says installed copies keep all functions through Aug. 2. The notice lists calendar dates only. A timezone and exact cutoff hour are absent, so waiting for a particular time on Monday risks missing the transfer window.　　The deadline changes the app interface. Ownership stays on-chain, and the recovery phrase remains the key that can reopen the same accounts in another compatible wallet.　　Access through the installed app carries a second clock. Ctrl cannot promise that a copy will keep opening after Aug. 3, and the company cannot recover a lost phrase. Users who wait could lose their working route into those accounts if the app later stops opening.　　Ctrl markets the wallet as trusted by more than 600,000 people. A verified tally of active or affected users is unavailable.　　Move the wallet, keep the phrase private　　Users have two routes. Export the 12- or 24-word recovery phrase and import it into a compatible wallet, or send assets to addresses

08-03Industry

XRP extends the longest active ETF inflow streak in crypto as rival funds struggle for fresh cash

XRP funds led altcoin inflows in July, extending a four-month streak that increasingly separates them from most rival products.　　The US-listed funds attracted $27.29 million during the month, nearly twice Solanas $14.62 million intake, according to SoSoValue data. Chainlink followed with $4.54 million, while Hedera products added $3 million.　　Bitcoin and Ethereum remained the dominant crypto fund categories, attracting $172 million and $365 million, respectively. Among products tracking assets outside the two market leaders, however, XRP finished July comfortably ahead.　　XRP builds the steadiest demand as Solana and Hyperliquid gain ground　　XRP funds have become the altcoin ETF markets most consistent source of new capital, ranking first or second in monthly inflows since April and avoiding a single monthly outflow over that period.　　Indeed, XRP funds attracted $81.59 million in April, $131.94 million in May, $59.46 million in June and $27.29 million in July. The four-month run has added more than $300 million and lifted cumulative inflows to roughly $1.5 billion, the largest total among altcoin products.　　Crypto ETF Products Monthly Flow (Source: SoSoValue)　　This run also gives XRP the longest active monthly inflow streak across the crypto funds tracked by SoSoValue this year.　　However, that lead is becoming more competitive. Solana funds have accumulated about $1.15 billion

08-03Industry

Counting down the days: State of Crypto

Senators Ruben Gallego and Thom Tillis sent a proposed revised ethics provision to the White House on Thursday, after drafting the compromise the day before, an industry source familiar with the talks told CoinDesk. As of midafternoon on Friday, the White House had not officially responded to the proposal.　　Ethics remains the biggest outstanding issue to be resolved before the Clarity Act can advance. There are ongoing negotiations around other issues, including stablecoin reserves and yield, law enforcement authorities and some of the Agriculture Committee provisions addressing the Commodity Futures Trading Commissions total remit, but these are relatively uncomplicated compared to ethics, two industry sources said. One added that they expected those other issues to be resolved relatively quickly should negotiators come to a deal on ethics.　　If the White House signs off on the counter-proposal from Tillis and Gallego, that could speed the way to at least the first part of the cloture process, the other source told CoinDesk. The Senate would still need to follow the cloture process laid out in last weeks edition of this newsletter, but the timelines involved mean that it would be difficult to get the bill all the way through by the end of the

08-03Industry

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