Bitcoin Magazine

Coinbase (COIN) Misses Revenue Estimates as Users Fall, Armstrong Sets Up New Share Sales

Coinbase had a mixed third quarter. Revenue came in at $1.20 billion, below the $1.233 billion analysts expected, according to company filings. Subscription and services revenue did better, reaching $570 million. The company is still heavily tied to trading activity, but its recurring income is growing.

Monthly Transacting Users fell to 7.4 million, down from 9.3 million a year earlier. During its earnings call, Coinbase blamed overall market conditions. Its share of crypto trading volume did rise to 10.7%, the fourth straight quarter of gains, which suggests it is winning business even as the broader market quiets. 

Adjusted EBITDA was $332.9 million, extending a run of 15 straight profitable quarters on that measure. The prediction markets business passed $200 million in annualized revenue, and Coinbase One hit a record number of subscribers.

JUST IN: Coinbase disclosed buying 643 Bitcoin worth $1.5 billion for its balance sheet in Q3 pic.twitter.com/5BYdrwLCJN

— Bitcoin Magazine (@BitcoinMagazine) October 30, 2026

Coinbase CEO preps share sales

Separately, filings reported on October 30 show CEO Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. He adopted the plan in August under SEC Rule 10b5-1, which lets executives schedule sales ahead of time. Sales could run from November 16 through October 2027, subject to stock price conditions. Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the total to about 13.6 million shares.

This is not new territory for Armstrong. In the past, VanEck analyst Matthew Sigel tracked about $545.7 million in sales over nine months, starting in April 2025. Armstrong has said these sales are part of his risk management, not a signal about the company.

Coinbase stock slumps nearly 15% 

Coinbase shares (COIN) fell about 15% today, but not necessarily due to this earnings report. 

Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, making it the largest crypto theft on record. Around $3 billion in assets has been frozen so far, with industry partners assisting in the freezes. 

The hackers are allegedly linked to North Korea, though Binance has not attributed the attack to any group. The exchange says it has found no evidence of a leaked wallet private key.

Binance says it has $6.34 billion in reserves available to cover losses. Deposits were unaffected, and the company expects to resume withdrawals within 48 hours. Figures remain preliminary, and estimates vary slightly across outlets.

The market reacted quickly. Bitcoin fell roughly 4.5% to below $77,000. Shares of Strategy (MSTR) fell nearly 10% on the day. Strive (ASST) shares fell over 12% at times. Coinbase’s stock is down over 55% on the year.

This post Coinbase (COIN) Misses Revenue Estimates as Users Fall, Armstrong Sets Up New Share Sales first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

SEC Charges Two Companies in $130 Million Crypto Trading Scheme

The Securities and Exchange Commission charged two foreign-operated, Colorado-incorporated companies with running a crypto investment fraud that used false federal filings to raise more than $130 million from tens of thousands of retail investors.

The defendants are BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. A complaint filed in the U.S. District Court for the Northern District of California alleges that from at least October 2025 through June 2026, the companies induced investors in more than 40 states and several U.S. territories to join a “wealth-sharing program.” 

Participants were promised risk-free returns generated by so-called signals for crypto asset trading.

According to the complaint, BG Wealth claimed to be the world’s largest hedge fund, claimed registration with the SEC as an investment adviser, and said it partnered with a licensed and secure crypto trading platform, DSJ Exchange. 

The SEC says none of those claims were true. The complaint alleges the companies submitted false Form ADV and Form D filings to the SEC. Those filings were viewable on the agency’s website and shared with investors as evidence that the SEC had licensed or approved the firms.

Laura D’Allaird, chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit, described the operation in a statement. 

SEC: Crypto scheme was ‘a Ponzi-like tactic’

“This alleged scheme was well-planned,” she said, citing social media, encrypted messaging channels, weekly live videoconferences and a mobile app used to engage investors. The complaint alleges the defendants displayed fake certificates bearing the SEC’s seal and made periodic payments to some investors, “a Ponzi-like tactic,” while misappropriating the remaining funds.

The SEC charged both companies with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

It charged BG Wealth with violating Sections 204(a) and 207 of the Investment Advisers Act of 1940. The agency seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both companies, along with conduct-based injunctions against BG Wealth.

The Form ADV and Form D filings have been removed from the SEC website.

The SEC’s Office of Investor Education and Assistance has issued investor alerts warning that scammers are using exempt reporting adviser filings to create a false impression of legitimacy. The agency encourages investors to check the background of anyone offering or selling a crypto investment through Investor.gov.

The SEC said it received assistance from the Alberta Securities Commission, the Hawaii Department of Commerce and Consumer Affairs, the Texas State Securities Board, the Utah Division of Securities, the Washington State Department of Financial Institutions, the Wisconsin Department of Financial Institutions, and other authorities.

This post SEC Charges Two Companies in $130 Million Crypto Trading Scheme first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Blockchain Firms Link North Korea to $6.3 Billion Binance Hack 

Blockchain analysis firms Chainalysis and TRM Labs have linked the $6.3 billion Binance hack yesterday to TraderTraitor, a unit associated with North Korea. If confirmed at this scale, the theft would be the largest crypto hack on record. 

Chainalysis puts the total at $6.4 billion in its own assessment. Chainalysis says funds began leaving Binance hot wallets across multiple blockchains around 4:20 p.m. Eastern Time on October 29. 

The firm said the attacker used an operational wallet funded through Tornado Cash to submit signed authorizations that allowed a Binance hot wallet to run attacker-deployed code. 

The attacker then swept assets into addresses under its control. Binance has said its initial investigation points to a compromised engineer’s laptop, which gave an attacker access to a service container and enabled unauthorized withdrawals. 

The exchange said it has found no evidence of a wallet private key leak.

The attacker reportedly tried to outpace freezes by converting stablecoins into ether and other assets that issuers cannot freeze. Chainalysis said the attacker swapped $325 million in stablecoins into $285 million in ETH over roughly 20 minutes, then sent the remaining $175 million to stopover wallets. Freezes began by 5:14 p.m. Eastern, according to the firm.

Market reacts to the hack

Bitcoin dropped toward $76,000 on Friday morning before trading near $77,400. Other crypto followed suit and posted declines of their own. Total market liquidations reached $1.5 billion, with bitcoin accounting for $468 million and ether for $358 million. 

Long positions, which bet on higher prices, bore most of the losses. The sell-off coincided with a separate incident at decentralized betting platform Polymarket, which suspended international trading after hackers drained more than $2.6 million from user accounts.

Binance said Thursday that the security incident affected about $6.3 billion in assets, surpassing the $1.5 billion Bybit hack of 2025, which was attributed to North Korean hackers. Former CEO Changpeng Zhao wrote on X, “It does look like a hack.” Zhao no longer runs the exchange but remains a key shareholder.

Stablecoin issuers moved to contain the fallout. Tether CEO Paolo Ardoino said the company froze more than $1.567 billion in USDT and that protecting the industry and its partners is its main priority. 

Circle co-founder and CEO Jeremy Allaire said Circle froze more than $800 million in USDC in coordination with law enforcement. First Digital CEO Vincent Chok said FDUSD stolen in the attack has been frozen. Binance says about $3 billion has been frozen onchain in total.

Binance has enough funds to cover the incident

Binance says it has reserved more than $6.34 billion of company funds to cover the incident. About $5 billion of that reserve is held in the same token assets that were affected, and the company is buying the remainder through market and OTC channels. 

The exchange says frozen and protected assets remain subject to verification and plans to publish an updated Proof of Reserves. 

Reuters, citing a person familiar with the matter, reported that Binance is working with the FBI and the U.S. Secret Service.

Bitcoin may have further downside

Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, wrote in an email to CoinDesk that the negative price action may have some way to go. He said a new base will form after assets are unfrozen and more details of the hack emerge. 

Kendrick argued that the incident could accelerate a shift toward decentralized exchanges. Chainalysis has warned that scammers are impersonating the firm, including those offering fund recovery and recruiting services. 

Victims should treat unsolicited recovery offers with caution and rely on official channels for updates.

At the time of writing, Bitcoin is trading near $76,700.

This post Blockchain Firms Link North Korea to $6.3 Billion Binance Hack  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Bitcoin Price Briefly Slides to $76,300 as Binance Confirms Hack Estimated at $6.3 Billion

Bitcoin traded in the $76,300 range on Thursday as Binance confirmed a security breach that the exchange estimates at $6.3 billion in total impact. The figure would place the incident among the largest cryptocurrency thefts on record. 

Earlier in the session, bitcoin reached a 24-hour high of $81,890 before the selloff, as millions in leveraged long positions were liquidated.

In a post on X, the exchange said its initial investigation suggests the incident may involve a compromised DevOps engineer’s laptop. The attacker reportedly gained access to a service container and submitted unauthorized withdrawal transactions. The exchange said it has found no evidence of a wallet private key leak. 

“The estimated total impact sits at around 6.3B. We have worked with blockchain partners to freeze affected assets, with ~3 billion frozen on-chain so far. Binance will cover all losses from the SAFU fund and the company’s funds. User funds are safe. We will also publish an updated Proof of Reserves once the remediation is complete,” Binance posted on X

The $6.3 billion estimate is higher than earlier figures, which ranged from $2.7 billion to $5.8 billion. The exchange said it has worked with blockchain partners to freeze affected assets, with about $3 billion frozen onchain so far. 

“We will share a detailed technical post-mortem once the investigation is complete and the facts are verified,” the company said.

Tether CEO Paolo Ardoino said earlier that the company froze more than 1.567 billion USDT, and Circle also froze USDC tied to the suspected attacker.

Co-founder Yi He wrote on X that user funds are safe and that Binance will cover all hacking losses. Concerns over a potential hack surfaced after a user noticed more than $2.7 billion in assets, including Ethereum and stablecoins issued by Tether and Circle, being moved from a Binance wallet to an external account under suspicious circumstances.

Binance suspends transactions

Deposits and withdrawals remain suspended while the exchange conducts security checks, freezes funds and works with law enforcement. The exchange said it has revoked the affected address authorization and is working to confirm the identities of those responsible.

Aave reportedly froze lending markets to block the suspected attacker from borrowing against the stolen funds. Binance.US said the incident does not affect its platform.

The company has not released a timeline for the full post-mortem. Until then, the exchange is asking users to rely only on official Binance channels for updates.

Changpeng Zhao, former CEO of Binance, tweeted on X during the exploit: “User funds are safe! It does look like a hack on Binance. Appreciate the quick freeze from [Tether and Circle]. I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered.”

Bitcoin dropped to $76,301 as news of the hack was circulating. Bitcoin is currently trading near $77,800.

This post Bitcoin Price Briefly Slides to $76,300 as Binance Confirms Hack Estimated at $6.3 Billion first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Strategy (MSTR) Posts Record Operating Income as Bitcoin Rebounds in Q3 2026

Strategy posted the largest operating income in its history on Thursday, booking $20.91 billion for the third quarter of 2026. Most of that total came from a paper gain on the company’s bitcoin stack. 

Net income reached $19.53 billion, or $44.75 per diluted share, up from $2.79 billion a year earlier. 

Chief Financial Officer Andrew Kang, who announced his departure in the same release, framed the result plainly: “Q3 operating income of $21 billion was the largest ever in Strategy’s history.”

Strategy marks its bitcoin to market each quarter, so every price move flows into earnings. Bitcoin rallied during the period. The company’s 848,517 bitcoin were worth $68.9 billion as of October 23, when the token traded at $81,200. The holdings carry an average cost of $75,446, which leaves the position in the black on paper. 

Kang pointed to the purchases as the engine of the quarter, saying the company “increased our bitcoin holdings by 26% year-to-date in a challenging bitcoin market.”

Total revenue fell 3%from a year ago to $125.4 million, below analyst estimates of $127.2 million. Gross profit came in at $89.6 million, a 71% margin compared with 70% a year earlier. The company ended September with $2.50 billion in cash and equivalents and $3.40 billion in short-term investments.

Strategy’s bitcoin per share slips

Bitcoin per share, the metric management uses as its main yardstick, moved the other way. The BTC yield stands at negative 3.7% for the year, meaning each share holds less bitcoin than it did in January. Measured in dollars, the bitcoin position shows a $2.03 billion loss over the same period. To fund preferred dividends and stock buybacks, the company has sold roughly $431.8 million of bitcoin this year, a figure the release puts at approximately that amount.

Strategy raised $21.23 billion of capital in 2026, including $5.41 billion in net proceeds from its at-the-market program during the third quarter alone. The company then spent a large part of that money on its own preferred stock. It repurchased 20,980,508 shares of STRC for $2.04 billion at an average of $97.39 per share, a discount to the $100 stated amount.

Chief Executive Phong Le said the buyback program was meant to put the security on firmer footing: “Strategy demonstrated its commitment to returning STRC to health.” Management said it intends to keep buying while STRC trades below par, and about $956.7 million remains under the authorization.

The company’s dollar reserves now total $5.07 billion, made up of a $4.83 billion USD Reserve and $242.4 million of USD Cash. Strategy says that cushion covers 3.4 years of dividend and interest obligations. The board kept the STRC dividend rate at 12.00% to support trading near the $100 stated amount.

STRC moves to daily dividends

Shareholders approved a move to daily dividends on October 28. STRC begins paying daily on November 1, and STRF, STRK, and STRD follow on January 1, 2027. 

Le framed the change as a step toward a different kind of market: “Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it.” 

Strategy also expects its preferred distributions to count as a non-taxable return of capital for ten years or more, because it does not expect positive accumulated earnings and profits. Shareholders should consult their own tax advisers.

That said, Strategy’s STRC stock is nearing $100. Earlier today, STRC reached $99.99 which once par would reopen funding for Bitcoin purchases. As mentioned ealier, shareholders approved daily dividends to improve liquidity and reduce price volatility. That said, Strategy has not yet confirmed a restart of STRC share issuance.

This post Strategy (MSTR) Posts Record Operating Income as Bitcoin Rebounds in Q3 2026 first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Bitcoin Price Slides Below $79,000 as Binance Loses $5.8 Billion in Massive Hack

Bitcoin dropped below $79,000 on Thursday as reports of a suspected multibillion-dollar hack at Binance, the world’s largest crypto exchange, rippled through markets. 

The selloff followed reports of heavy outflows from Binance-linked wallets. Some social media reports cited suspicious outflows of up to $5.8 billion, citing onchain data that shows about $3.55 billion in incoming transfers to an unlabeled wallet. 

Conor Grogan, a senior director at Coinbase, put the figure at $5.8 billion.

Stablecoin issuers moved to freeze funds. Tether CEO Paolo Ardoino said the company froze more than 1.567 billion USDT. Circle froze about $823 million in USDC, according to former Binance CEO Changpeng Zhao, who remains a shareholder. 

Combined freezes range from $1.8 billion to $2.4 billion depending on reports. “Protecting the industry and our partners is our main priority,” Ardoino said.

Binance has made no official confirmation of a breach. Co-founder Yi He wrote on X that the company is aware of reports of a potential security issue and that its security teams are reviewing all relevant information. 

“We are aware of reports of a potential security issue and we are actively investigating…our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information. Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”

Zhao wrote that, in his view, the exchange appears to have been hacked, and he expects all user funds to be covered.

“I don’t manage Binance anymore, but as a shareholder, I expect all user funds will be fully covered,” Zhao posted.

Blockchain researcher Spreek flagged the activity, which reportedly included a transfer through a contract call allegedly funded by Tornado Cash. Blockaid said it is investigating $3.3 billion in suspicious outflows from Binance hot wallets across Ethereum, Arbitrum and Avalanche.

If confirmed, the incident would be the largest crypto theft on record, surpassing the February 2025 Bybit hack of roughly $1.5 billion. Aave reportedly froze lending markets to block the suspected attacker from borrowing. 

Binance.US said the incident does not affect its platform.

Figures remain fluid. One estimate puts the realized loss near 0.7% of Binance customer assets, and other reports continue to revise totals. Neither Binance nor law enforcement has released a formal account of the cause.

Crypto exchange Bybit was not affected. They tweeted that their “systems are operating normally, trading and withdrawals remain available, and user assets remain secure.”

Bitcoin price drops under $79,000 after Binance hack jitters

Bitcoin is trading at $78,800, down 2.89% (about $2,350) over the past 24 hours. The price hit a 24-hour high of $81,890 around midday before sliding sharply after 4 p.m. ET, when it fell to a low of $78,177.37, after rumors of the hack circulated. 

Trading volume over the period was about $26.14 billion, and bitcoin’s market cap stands at roughly $1.58 trillion.

This post Bitcoin Price Slides Below $79,000 as Binance Loses $5.8 Billion in Massive Hack first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Franklin Templeton Officially Launches 2 Bitcoin DRIP ETFs That Turn Dividends Into Bitcoin

Two Nasdaq-listed funds route dividends from large U.S. companies into a bitcoin sleeve that grows with every payment.

Franklin Templeton has officially launched two exchange-traded funds that convert stock dividends into bitcoin. The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) will trade on Nasdaq. 

The launch completes the last regulatory step after Franklin filed registration papers with the Securities and Exchange Commission on October 22. The filings for both funds arrived in June without tickers or fees. Four months after that filing, the details are in. 

How the funds work

FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index. The index holds the 500 largest U.S. companies by market capitalization, weighted by float-adjusted market cap. As of September 30, it held 499 stocks ranging from $10.2 billion to $5.5 trillion in size, with the heaviest concentration in information technology.

At inception, the index allocates 95% to those stocks and 5% to BTC. Each dividend the companies pay, whether regular or special, is reinvested into BTC at the market open on the day after the ex-date. The BTC share of the portfolio grows with each payment.

A traditional dividend reinvestment plan, or DRIP, uses cash dividends to buy more shares of the company that paid them. Franklin’s version routes that cash into BTC. For a holder, the dividend stream from the largest companies in America becomes a recurring BTC purchase, with no exchange account, no wallet and no custody decisions.

The bitcoin position has limits. At each quarterly rebalance, any allocation above 5% gets trimmed to 4.5%. If BTC exceeds 20% of the index between rebalances, the index cuts it to 4.5% within two business days, and the proceeds return to stocks. 

The result is a stock fund with a bitcoin sleeve, a different product from a BTC fund.

The fund holds no BTC on-chain. It gains exposure through BTC exchange-traded products, including Franklin’s own spot fund, through bitcoin futures and options, or through depositary receipts, in some cases via a Cayman Islands subsidiary.

FBEQ carries a 0.09% expense ratio and charges no 12b-1 fee. Franklin Advisory Services manages the fund, with Franklin Templeton Institutional as sub-advisor.

Bitcoin as a mature, investable asset

“Bitcoin has matured as an investable asset, supported by deeper market infrastructure, broader adoption and a growing understanding of the role it can play in portfolios,” said Dina Ting, SVP and Head of Index Investments at Franklin Templeton. “A systematic approach to building exposure is one way to address this next stage of adoption.”

Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets, framed the funds as a new way to combine U.S. equities and bitcoin through a differentiated index methodology.

This post Franklin Templeton Officially Launches 2 Bitcoin DRIP ETFs That Turn Dividends Into Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Russia Approves Securities Group to Oversee Crypto Exchanges

The National Association of Securities Market Participants, known as NAUFOR, has won self-regulatory organization status for digital depositories and crypto exchanges. The Central Bank of Russia made the decision on October 29, according to Interfax.

The move turns a law into a working system. Russia’s framework, “On Digital Currency and Digital Rights,” passed the State Duma in July. It requires exchange operators and depositories to sit in central bank registries, and it requires them to join an SRO. 

Interfax reports that the registry lists 23 crypto exchanges and eight digital depositories, including VTB, Sberbank, and units of T-Technologies, the holding company behind T-Bank. Firms on those registries have 90 days to join an SRO. In short, an SRO writes industry standards, monitors members, and represents the industry to regulators.

NAUFOR says it will help shape standards for digital asset markets and push the central bank on rule changes. Earlier in October, it received the same status for information system operators. The association has operated since 1996 and counts 725 members, including brokers, dealers, and fund managers from traditional markets.

JUST IN: Russia's central bank approved NAUFOR as a self-regulatory body for crypto exchanges and custodians.

Russia's new crypto law requires all registered crypto firms to join a self-regulatory organization within the next 90 days. pic.twitter.com/pchpFYg6KP

— Bitcoin Magazine (@BitcoinMagazine) October 29, 2026

Russia’s crypto legal gateway

Traditional finance built NAUFOR’s model for stocks and bonds. Placing the same body over bitcoin exchanges and custody gives the state a familiar hand on the wheel. 

Bitcoin Magazine reported in July that the law stops bitcoin from becoming money for everyday purchases. Domestic crypto payments stay banned. The law licenses exchanges and depositories, caps retail purchases, and opens a state-supervised channel for cross-border trade, a route that helps Russia move around Western sanctions.

The details matter for users. A depository would record holdings, and one reading of the framework lets it restrict transfers to personal wallets. Non-qualified retail buyers can purchase up to 300,000 rubles a year through a single intermediary, near $3,800. 

Qualified investors face higher ceilings. These choices shape who can use the platforms and how.

Earlier this fall, the Moscow Exchange reportedly began testing cryptocurrency trading with professional market participants and planned to launch trading this December. 

The exchange intended to use existing infrastructure and a partner digital depository following the introduction of Russia’s new cryptocurrency regulations in September. 

Sberbank also received approval to custody Bitcoin and other cryptocurrencies, while President Vladimir Putin had previously acknowledged Bitcoin’s resistance to being banned.

This post Russia Approves Securities Group to Oversee Crypto Exchanges first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

U.S. Treasury Sanctions Crypto Launderers Behind North Korea’s Fake Workers

The U.S. Treasury Department on Tuesday sanctioned ten individuals and one company, accusing them of helping North Korea collect wages from foreign employers, many of them American, through fake identities and forged paperwork.

The workers are typically placed at legitimate firms under invented personas, sometimes with AI-generated resumes, doctored photos, or deepfake video during interviews. 

Most of their pay goes back to the regime, which Treasury says uses the money to fund its weapons of mass destruction and ballistic missile programs. Some of these workers have also gained access to corporate networks, where they have planted malware and taken proprietary data.

The money and crypto behind North Korean fraud

The sanctions focused less on the workers themselves than on the people who move the money. Two Russian nationals are at the center of the action. 

Vitold Obertas, described by Treasury as a go-between for North Korean financial transactions, allegedly handled nearly $2 million in crypto conversions and at least $1.25 million in other currency transfers for North Korean officials since January 2025. 

Ilya Boykov allegedly converted the equivalent of $3.5 million in crypto for Alis, a North Korean IT worker company that the U.S. sanctioned in 2024.

Two North Korean nationals, Kim Ki Hyok and Kim Hyo Dong, were also named for leading Russia-based worker delegations. Kim Ki Hyok has reportedly moved close to $500,000 in crypto for his team since 2024. 

Treasury also sanctioned the First Financial and Technical Development Center, a North Korean-controlled entity operating in Russia, along with six workers who have generated more than $750,000 for it since 2025.

Treasury published wallet addresses on Ethereum and Tron tied to the sanctioned individuals, a signal to exchanges and other financial firms to watch for those accounts. One Ethereum address is linked to both Obertas and Boykov.

The action follows a March designation of a separate North Korean IT worker network, which Treasury said had laundered roughly $800 million in crypto for the regime. Australia and the European Union have also announced related designations this month, and Treasury coordinated the move with the Multilateral Sanctions Monitoring Team.

Under the sanctions, any property these individuals or entities hold in the United States, or that is controlled by U.S. persons, is blocked and must be reported to the Office of Foreign Assets Control. Transactions with them are generally prohibited unless licensed, and companies owned 50 percent or more by blocked parties are subject to the same restrictions. Treasury warned that civil penalties can apply even when a violation was unintentional.

For companies that hire remote contractors, the advisories from the State, Treasury and Justice departments and the FBI offer guidance on spotting these schemes, including verifying identities, checking where payments are going, and watching for unusual access requests.

This post U.S. Treasury Sanctions Crypto Launderers Behind North Korea’s Fake Workers first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Crypto Exchange HTX Agrees to Leave UK in Settlement With FCA 

Justin Sun’s HTX has agreed to leave the United Kingdom, closing the Financial Conduct Authority’s first enforcement case against a crypto firm over financial promotions. The regulator announced the settlement today, ending a High Court action that began in October 2025, according to Financial Times reporting. 

Under the court undertakings, Huobi Global S.A., the Panama-registered company behind the HTX brand, has promised not to communicate financial promotions that breach UK law across its website, apps and social media channels. 

The FCA says the exchange is no longer active in Britain. UK customers cannot deposit funds, and new users cannot register. Existing customers have 48 hours to withdraw assets before their accounts close.

The regulator framed the outcome as a warning. Steve Smart, the FCA’s executive director of enforcement and market oversight, said that being based overseas does not place a firm beyond the reach of UK law. 

Smart said that ‘Crypto firms should be under no illusion: being based overseas does not put them beyond the reach of UK law. Our action means HTX is leaving the UK and can no longer target UK consumers. The message to other firms is clear: follow the rules or face the consequences.’

The regulator said HTX had failed to really engage over several rounds of talks of the case. Settlement talks began in March and were extended in June

HTX settlement and background

HTX presents a different account. The exchange says it has put measures in place to align with UK promotion rules. 

“We take local compliance requirements seriously and have proactively implemented measures to align with the UK’s financial promotion regulations,” the company said in a statement, according to Reuters. 

The settlement terms remain confidential, and the FCA says the deal involves no admission of liability or wrongdoing. Public reporting does not say whether any fine was paid.

In May, the UK sanctioned Huobi Global over alleged support for Russia’s financial sector, listing HTX as another name for the designated entity. 

In July, the European Union named Huobi Global in its 21st Russia sanctions package and barred EU transactions with the exchange, stopping short of a full asset freeze. HTX says Huobi Global S.A. is distinct from the online exchange. 

Back in August, Kraken clients were briefly locked out of their accounts after receiving tiny amounts of cryptocurrency linked to sanctioned funds in what was known as a dust attack. Kraken said the attacks aimed to trigger compliance checks and spread sanctioned funds across platforms, causing operational disruptions for thousands of users. 

Around 12,000 transfers were reportedly sent from a wallet linked to HTX. Kraken’s compliance team quickly restored customer access while retaining the sanctioned funds and working with authorities to prevent further attacks.

This post Crypto Exchange HTX Agrees to Leave UK in Settlement With FCA  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Bitcoin Price Trades Above $81,500 as Fed Keeps Rates Steady in Split Vote

The Federal Reserve left its benchmark rate unchanged Wednesday, holding the federal funds target range at 3.75% to 4%. The bitcoin price showed some volatility around $81,000.

The decision passed 10-2, and the dissents carry as much weight as the outcome. Governor Lisa Cook and Cleveland Fed President Beth Hammack wanted a quarter-point increase. It is the first time since 1992 that a Fed governor and a regional bank president have dissented together on the same side.

Fed Chair Kevin Warsh faced reporters after the vote and said politics played no role in the decision, days before the midterm elections. Warsh has said he does not favor forward guidance absent a crisis, which leaves investors to read the data themselves. 

The committee’s statement dropped its earlier language about when a hike might support a return to 2% inflation. In its place is a line saying more information will guide the policy stance. The Fed also described growth as strong, up from solid.

The signal points toward tightening. Fed funds futures and the Fed’s own dot plot lean toward a rate increase by December, and some pricing puts the odds near three in four. Inflation has been running hot, and the two dissenters are the officials who want to act on it.

Bitcoin price reaction

Bitcoin price’s reaction was restrained. The bitcoin price spiked to about $81,700 in the minutes after the announcement, fell below $80,500, and then recovered toward $81,000. Most traders expected a hold, so the muted move surprises nobody.

Bitcoin’s first response to Fed news tends to be modest, and that the real direction often emerges over the following day. Spot Bitcoin ETFs drew $110 million in net inflows on October 26 and $176 million on October 27, a sign that some institutional money is buying the dip. Other observers have flagged large holders selling into strength.

That tension defines crypto’s position right now. Bitcoin sits about a third below its October 2025 record near $126,000. A rate-hike path works against an asset that has thrived on cheap money, and the market has spent months adjusting to the possibility that the easy-money era is over. 

Some traders read the hold as evidence the Fed will move slowly. Others see December as the real test. For now, the level to watch is a bitcoin price of $80,000. It has held as support in recent sessions, and a clean break below it would expose the next floor. 

Warsh and his colleagues have said they will wait for incoming data before acting. Bitcoin will have to wait along with everyone else.

Midterms up next

Bitcoin’s next big political test arrives on November 3, when voters across the country head to the polls. Crypto has not really dominated the campaign trail. 

The crypto industry spent about $176 million on more than 100 midterm races to build a bipartisan bloc in Congress that could protect its interests after President Donald Trump left office. Fairshake, the industry’s largest super PAC, led the effort and directed strategy as it had in the 2024 cycle.

At the time of writing, the bitcoin price is $81,478.

This post Bitcoin Price Trades Above $81,500 as Fed Keeps Rates Steady in Split Vote first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Google Debuting a Bank-Grade Crypto Custody Tool Built on Split Keys: Report

Google is reportedly unveiling Google Multi-Party Compute, a crypto custody system that splits signing keys across separate systems, at its first digital assets symposium in New York today. The product is in private preview with several financial institutions. Alphabet has started using it to secure its own assets, according to CoinDesk reporting.

Google plans commercial availability in early 2027 and has not disclosed pricing.

The system applies multi-party computation to a signing key. The key is divided into fragments held by separate parties or machines, and a transaction requires a set number of fragments to sign. 

The full key is never assembled in one place. A bank could hold one share on its own hardware, another in Google Cloud, and a third with a rival cloud provider. Institutions can set thresholds such as two-of-three or five-of-seven. Before any signature, a policy engine running inside Google’s Confidential Space checks the transfer against limits, destination restrictions, and approval rules. 

Google says it has no access to key shares in unencrypted form, per CoinDesk.

Crypto’s security issues

The pitch rests on a persistent problem. Chainalysis attributed 43.8% of cryptocurrency stolen in 2024 to compromised private keys. DeFiLlama data shows roughly 40% of the $16.69 billion lost to hacks through June came from key compromises. In June, an attacker took seven keys from one developer’s computer during the Humanity Protocol breach and drained wallets across two networks. 

Such incidents show how concentrated signing authority creates a single point of failure. The industry has responded by recommending multi-vendor multisignature setups that spread control across hardware and software providers.

Google also frames the product against AI-enabled fraud. Chainalysis found that scams linked to AI tool vendors averaged $3.2 million per operation in 2025, compared with $719,000 for other scams. The report links the two figures but does not prove that AI caused the difference. 

Ethereum researcher Justin Drake has warned that AI could eventually find mathematical shortcuts that weaken wallet signatures. No AI system has shown that capability. Google’s MPC design targets stolen credentials and unauthorized transfers, not a break in the underlying cryptography.

Quantum computing presents a separate, longer-term risk. Google researchers estimated that a sufficiently powerful future machine could derive a bitcoin private key from an exposed public key in about nine minutes. Roughly 6.9 million bitcoin have exposed public keys. Google says its architecture can adopt post-quantum signatures later without forcing institutions to rebuild their systems, but it has set no timetable. Background on how quantum machines threaten bitcoin explains which addresses are most exposed.

Google enters a market led by Fireblocks, Fordefi, and BitGo. Google argued to CoinDesk that its banking relationships and security expertise give it an advantage. It also positions itself as a neutral supplier for banks that do not want to rely on competitors. 

Banks already use specialized platforms, such as BNP Paribas’s custody work with Metaco, and multi-institution vaults built with BitGo.

This post Google Debuting a Bank-Grade Crypto Custody Tool Built on Split Keys: Report first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks

Strategy shareholders have approved the Daily Dividends amendment, the company announced Wednesday. Preliminary results show 99.3% of votes cast were in favor, according to Executive Chairman Michael Saylor.

The amendment allows STRF, STRC, STRK and STRD to accrue dividends every calendar day, including weekends and holidays.

The proposal surfaced on September 25, when the company asked holders to attend a special meeting on October 28. Strategy said the change “would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability.”

At the time Strategy said that they “believe these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy.

Under the approved structure, dividends accrue every day but are paid on the next business day. Strategy has said scheduled dividend rates and total dividend obligations remain unchanged. The company has argued the change could benefit common stockholders by making its Digital Credit instruments easier to use and easier to fund.

The timing depends on board action. If the board approves the change and required filings are completed, the first STRC record and payment dates would fall on November 1 and 2, 2026. For STRF, STRK and STRD, the first record and payment dates would be January 1 and 4, 2027. Those dates also depend on operational readiness.

STRC pays a variable rate that the company can change at its discretion. Its rate for the month ended June 30, 2026 was 11.50%, according to Strategy’s quarterly report. Shareholders approved moving STRC to semi-monthly payments in June, and the new amendment builds on that precedent.

In short, STRC is designed to help Strategy raise money from investors through a preferred stock offering targeting a stable $100 price and a variable dividend yield, then use that capital to continuously buy Bitcoin regardless of its short-term price movements. This creates a potential global dollar-cost-averaging machine for Bitcoin.

Final vote certification will come in a company filing. Board action remains the final step before any new payment schedule begins.

Strategy’s bitcoin moves this year 

The vote comes after bitcoin fell into somewhat of a bear market. Strategy slowed its bitcoin purchases this year and sold some holdings to fund preferred dividends, interest payments and repurchases. 

The company’s common stock, MSTR, is down near 50% over the past year, though it has risen by a figure approaching 1,000% since Strategy began buying bitcoin in 2020.

Earlier this week, Strategy said they paused Bitcoin purchases for the prior week and maintained its holdings at 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per Bitcoin. 

The company spent $204.9 million repurchasing STRC preferred stock while retaining a $4.83 billion cash reserve. 

Fellow bitcoin-treasury company Strive pays cash dividends on its Variable Rate Series A Perpetual Preferred Stock (SATA) every business day. This started on June 16, after moving from monthly payments. 

This post Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitwise Raises Bitcoin Target to $1.6 Million as Institutions Keep Buying

Bitwise Asset Management this week released its 2027 Bitcoin Long-Term Capital Market Assumptions, raising its 2036 base-case price target for bitcoin to $1,599,766 from $1.3 million a year earlier. 

The forecast implies a 34.3% compound annual growth rate from the roughly $83,557 price the firm used as of September 30, 2026. Bitwise’s bear case is $130,686 and its bull case is $3.67 million.

The base case rests on three arguments. Institutional investors will keep adding bitcoin to portfolios. New supply stays fixed on a predictable schedule. Rising government debt will push investors toward assets that cannot be printed. 

Institutional investors love bitcoin

Bitwise estimates that institutions controlling about $147 trillion could allocate 1% to 5% of their portfolios to bitcoin, which the firm says would mean $1.5 trillion to $7.4 trillion of purchases. The network issues about $14 billion in new coins per year, and Bitwise argues that gap will push prices higher.

Institutional plumbing is already expanding. U.S. spot bitcoin ETPs hold about $108 billion, according to the report. Banks and brokerages are building custody and trading services, and a recent report describes sovereign wealth funds and family offices buying during the 2026 decline. 

Regulators are also moving. A Federal Reserve capital proposal aimed at easing bank custody rules could widen access for large institutions, if adopted.

The past year tested that thesis. Bitcoin fell 53.4% from its October 2025 peak of $126,080 to a June 30, 2026 low of $58,717. Bitwise calls that drawdown the shallowest in the asset’s history. Prior cycle declines were 77%, 84% and 86%. 

Whether the shallow decline signals a new pattern or a pause is less settled. Bitwise expects the four-year cycle to weaken as the investor base broadens. Others see the cycle still at work. 

VanEck argues the current slump follows the historical halving pattern, and Fidelity has pointed to a possible floor around November 2026 if past timing holds. NYDIG has said a repeat of earlier bear markets could push the cycle low near $38,000 to $39,000. Cathie Wood has argued the market is nearly through the downturn. Each view carries a different price floor and timeline.

Bitcoin’s volatility 

Volatility is the other pillar of the forecast. Bitwise models a 27.8% average volatility over the decade, the midpoint between today’s level and its 2036 expectation. Grayscale’s research head recently put one-year volatility at 43%, against a 10-year average of 64%, and lower than the volatility of 19% of S&P 500 companies. Charles Schwab’s research found the asset remains prone to sharp drawdowns despite the lower readings. A Deutsche Bank analyst has described the trend as a sign of a maturing market.

Bitwise also reports that bitcoin’s correlation with gold reached a record 0.58 in September 2026. The firm expects that relationship to deepen, which positions bitcoin as a store-of-value asset. That link cuts both ways. If gold weakens, bitcoin may lose the support it gained from the same investor demand. Gemini has predicted that at least one country will shift part of its gold reserves into bitcoin in 2026, a forecast that has yet to materialize.

The report is candid about what could go wrong. Bitcoin’s track record is short. Its software was developed in 2008 and 2009, trading began on public exchanges in 2010, the first institutional product with bitcoin exposure launched in 2014, and spot ETPs arrived in 2024. 

Bitwise writes that forecasts built heavily on history carry uncertainty because future returns may differ from the past. Regulation is a second concern. The Clarity Act’s failure in Congress, which the report traces to Democratic concerns about ethics provisions, shows that progress can stall, even as the firm argues recent advances are unlikely to be rolled back. 

Technology is a third. Quantum computing, and mathematical advances accelerated by AI, could threaten the cryptography that secures bitcoin wallets. Bitwise says the network will need a major upgrade at some point, and holders who fail to move funds to new addresses could be exposed. The developers have made progress over the past year, the report says, but major issues remain unresolved.

Bitcoin’s price is near $80,500.

This post Bitwise Raises Bitcoin Target to $1.6 Million as Institutions Keep Buying first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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U.S. Treasury Says U.S. ‘Will Win in the Digital Asset Stack’ as Clarity Act Stalls

U.S. Treasury Secretary Scott Bessent said Tuesday that American leadership in digital assets could reinforce the dollar’s global position, even as Congress has stalled on the market-structure legislation meant to govern them.

Speaking at Ripple’s Swell conference in New York with CEO Brad Garlinghouse, Bessent argued that the foundations of reserve-currency power are shifting. For much of modern history, he said, the dollar’s dominance rested largely on military strength. 

“We will keep our military umbrella, but increasingly, it becomes a technological umbrella,” he said. 

He grouped digital assets with artificial intelligence and semiconductors as areas where the United States and China are competing to build dominant infrastructure, and suggested the financial rails countries choose will shape the dollar’s reach.

The most concrete link he drew runs through stablecoins, dollar-pegged tokens whose issuers typically hold reserves that include U.S. Treasury securities. Bessent said stablecoins could give people in countries with high inflation or volatile currencies easier access to dollars. 

CoinGecko data puts the share of stablecoins denominated in dollars above 98%, with Tether’s USDT and Circle’s USDC the largest. Bessent himself put the figure above 90%. The exact number differs, but the dollar clearly dominates the category.

NEW: Secretary Scott Bessent says the Treasury is moving on crypto regulation with or without Congress

He says they will “bring the SEC and CFTC together to close the gaps through regulation.” pic.twitter.com/JnsT3oxVEn

— Bitcoin Magazine (@BitcoinMagazine) October 28, 2026

Bessent has also argued that stablecoin reserves could increase demand for Treasury debt. Last year he suggested stablecoins could generate $2 trillion in short-term demand for Treasuries and bills. That projection depends on how quickly stablecoin supply grows, what reserve rules apply, and how issuers choose to invest.

Bitcoin traded around $80,000 to $81,000 this week ahead of the Federal Reserve decision. Bitcoin advocates have long argued that a neutral, non-issuer asset offers something different from dollar-pegged tokens.

Broader crypto legislation trends

The regulatory backdrop is more uncertain. The Comptroller of the Currency has finalized its rule implementing the GENIUS Act, which sets requirements for payment stablecoin issuers. The federal framework takes effect January 18, 2027. 

The broader CLARITY Act, which would establish market-structure rules for digital assets, failed a Senate procedural vote on September 15, 49 to 50, short of the 60 votes needed. Disputes included ethics provisions related to federal officials’ crypto interests and stablecoin yield. 

Banks and the White House clashed over those yield terms.

Treasury Bessent’s willingness to work around Clarity Act failure

Bessent called the setback disappointing. He said Treasury could work with the Securities and Exchange Commission and the Commodity Futures Trading Commission to address regulatory gaps. “At Treasury, we have a lot of convening powers,” he said, describing the agencies as “great partners.” 

He also said regulators could set guardrails to prevent banks from cutting off crypto firms, a practice known as debanking. 

“I think we can set up regulatory best practices, guardrails that will prevent that from happening again,” he said.

Those remarks did not set out a formal plan, working group, or timeline. Agency action can clarify rules within existing authority, but it lacks the permanence of an act of Congress, and it can be reversed by a future administration. 

Next week’s midterm elections could further stall the CLARITY Act, according to TD Cowen.

This post U.S. Treasury Says U.S. ‘Will Win in the Digital Asset Stack’ as Clarity Act Stalls first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Brazilian Banking Giant Itaú Formalizes Crypto Role as Brazil Closes Its Licensing Window

Itaú Unibanco, the largest private bank in Brazil, has formalized its role as a cryptocurrency service provider before the Central Bank of Brazil. The filing covers intermediation and custody of crypto assets, the same activities the regulator assigns to brokerage firms, according to local reports. The news arrives as the country’s crypto sector faces a compressed timeline to obtain licenses.

Itaú’s move places the bank inside a licensing framework that did not exist a year ago. Brazil’s central bank requires every company that holds, moves, or trades crypto for customers to register as a regulated provider. By filing, Itaú tells the market that it intends to be one of them.

For Brazilian users, the change matters most for custody. A provider that holds crypto for clients must keep those assets separate from the firm’s own money, meet minimum capital requirements, and follow the same governance and anti-money laundering standards that apply to securities brokers. 

Clients of an authorized bank gain a clearer legal footing than clients of an unregulated app or an offshore exchange. For the bank, the filing is a commitment. A regulated crypto operation carries compliance costs, audit obligations, and reporting duties that smaller competitors may struggle to meet. 

The move also signals that Brazil’s biggest lenders plan to keep crypto inside the domestic financial system rather than leave it to foreign platforms.

Itau’s embrace of bitcoin and crypto

Itaú’s crypto story started before the new rules. The bank announced plans for crypto custody in 2022, when it was building a tokenization platform. In late 2025, it began letting retail clients buy and sell bitcoin through its investment app, íon. The crypto assets traded on íon are held in custody by Itaú itself, which made the bank’s position an operational one long before it became a regulatory one.

The regulatory backdrop came in 2025 and early 2026, when the central bank published Resolutions 519, 520, and 521. They created a new license category called Sociedades Prestadoras de Serviços de Ativos Virtuais, or SPSAVs, and the rules took effect February 2, 2026. 

The framework sorts providers into three categories: intermediaries, custodians, and brokers. It requires formal segregation of client and company assets, sets minimum capital levels, and extends the customer protection, governance, internal control, security, and anti-money laundering rules that already govern banks and brokers. 

Resolution 521 brought crypto transactions into the foreign-exchange regime. Transfers with unauthorized counterparties face a $100,000 cap, which limits how crypto moves across borders outside regulated channels.

Companies already operating when the regime took effect had to file for authorization within a transition period. 

That timing is why Itaú’s filing reads as a response to a pressure point, not a routine update.

Stricter standards follow. On July 1, 2026, the central bank approved tighter rules. Beginning in 2027, providers must meet financial security requirements similar to those for securities brokers and distributors. 

The regulator also barred institutions in Segment 5, the simplified-rules category for smaller banks, from offering virtual asset services. That decision pushes crypto activity toward larger, better-capitalized players, the group Itaú belongs to.

This post Brazilian Banking Giant Itaú Formalizes Crypto Role as Brazil Closes Its Licensing Window first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Price Rests Near $80,500 as Midterms, Fed Decision Loom

Bitcoin price traded near $80,500 most of Tuesday, holding above the $80,000 level that has become the market’s line in the sand. Prices ranged between roughly $79,400 and $80,800 over the day, according to Bitcoin Magazine Pro data, and the asset was up about 0.3% over the prior 24 hours by mid-afternoon Eastern time.

The steadiness follows a rough stretch. Bitcoin price fell below $80,000 on Monday as investors cut risk exposure, weighed down by concerns about AI-sector valuations and higher oil prices. Spot Bitcoin ETFs have also been shedding money. Still, the selling hasn’t turned into panic. Bitcoin price has mostly stayed in a band between about $79,000 and $81,000 this week.

The longer view is harder on anyone who bought near the top. Bitcoin’s all-time high sits near $126,000, set in October 2025, and the price is roughly 30% below where it was a year ago.

The Federal Reserve’s policy meeting runs October 27 and 28, with the decision due Wednesday. The central bank has held its target range at 3.75% to 4% after raising it in September, and officials have signaled another increase may be needed by year-end. 

Market odds leaned toward a hold the last time they were clearly reported in early October, but those numbers are stale and likely have moved. Traders will watch Fed Chair Kevin Warsh’s press conference for hints about a December hike.

Bitcoin price logic amidst the midterms

The logic for Bitcoin is simple. Higher rates drain liquidity from speculative assets, so a hawkish surprise would likely push the price back toward $80,000 or below. 

A hold, or a softer tone, could give buyers room to push toward the $88,000 range seen earlier this fall. The November 3 midterm elections add another layer. Prediction markets have favored Democrats winning both chambers of Congress, according to one Polymarket reading cited in recent coverage. 

For crypto, the most immediate policy question is the pending market structure bill, and lawmakers’ votes on it could shape how the industry approaches the races. Bitcoin and other risk assets have tended to rally in the 12 months after past midterm cycles. 

TD Cowen analysts have warned the results could stall the CLARITY Act for two years. Prediction markets gave Democrats a 90% chance of winning the House and 62% of winning the Senate, a scenario TD Cowen called the most negative for bitcoin. 

A split Congress, with Republicans holding the Senate, was seen as better, while a Republican sweep was viewed as the best path for crypto. The bill had stalled after a failed Senate cloture vote in September, with ethics provisions and stablecoin yield still dividing lawmakers.

At the time of writing, the bitcoin price is roughly $80,600.

This post Bitcoin Price Rests Near $80,500 as Midterms, Fed Decision Loom first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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VanEck Launches All-in-One Wealth Builder ETF With Bitcoin Exposure

VanEck launched the Wealth Builder ETF today, trading on the NYSE under the ticker WBMO. The actively managed fund packages the firm’s Wealth Builder model portfolios, which advisers have used through third-party platforms, into one product anyone with a brokerage account can buy. 

VanEck, which oversees about $244 billion in assets, selects the holdings, sets the weights and rebalances the portfolio.

VanEck describes the product as a way to “gain exposure to a broad mix of investments across stocks, bonds, gold, and bitcoin with a single ETF purchase.” The fund holds global stocks, bonds, gold and other real assets. 

Its bitcoin exposure is indirect. WBMO owns no bitcoin. A wholly owned Cayman Islands subsidiary holds certain investments and gains digital asset exposure through exchange-traded products, which are funds that hold bitcoin or track it. 

The subsidiary is generally capped at 25% of total assets at each quarter-end, but that limit covers several asset categories. The prospectus sets no specific bitcoin target. Investors do not need a wallet, seed phrase or exchange account to hold the bitcoin slice. They also cannot control the bitcoin position directly.

JUST IN: $200 billion VanEck includes Bitcoin exposure in their new Wealth Builder ETF

"This fund brings Bitcoin to investors who want one simple diversified holding" pic.twitter.com/dLhGu8VrWy

— Bitcoin Magazine (@BitcoinMagazine) October 27, 2026

Details of VanEck’s fund

The fund’s gross expense ratio is 0.33%. A 0.07% fee waiver brings the net ratio to 0.26%. The underlying bitcoin products charge their own fees.

The allocation also limits the swings. If bitcoin rises sharply, WBMO captures only part of the gain. If it falls, bonds and gold should cushion some of the loss, though not prevent it.

VanEck warned in its announcement that digital asset ETPs can be extremely volatile and that some are not registered under the Investment Company Act of 1940, which means they lack certain investor protections.

The firm’s other crypto-linked fund, NODE, raised its bitcoin ETP exposure from about 7% at the end of June to 16.8% at the end of September. NODE holds blockchain companies rather than WBMO’s mix, but it shows how VanEck is using crypto in its portfolios.

Earlier this fall, VanEck’s Head of Digital Assets Research, Matthew Sigel, said the Bitcoin community recognized the risks quantum computing posed to Bitcoin’s cryptography. 

“It’s a risk,” Sigel said at the time. “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system…The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years.”

Major companies, including Coinbase and Blockstream, had begun developing quantum-resistant security measures to prepare for future threats. 

A Bitcoin Security Consortium, including BlackRock, Fidelity Digital Assets, and Block, had also been formed to fund open-source security initiatives, including proposals such as BIP-360.

This post VanEck Launches All-in-One Wealth Builder ETF With Bitcoin Exposure first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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27-Year-Old Missouri Man Admits Role in Failed Bitcoin Kidnapping Plot

A St. Louis man has admitted his part in a violent scheme to steal bitcoin from a Connecticut family. Martel Williams, 27, pleaded guilty Monday in federal court in Hartford to conspiracy to interfere with commerce by robbery, commonly called Hobbs Act robbery. 

The charge carries a maximum sentence of 20 years in prison. U.S. Attorney David X. Sullivan announced the plea.

The plot began in August 2024. Prosecutors say the people coordinating the attack wanted bitcoin belonging to a man who had taken part in a theft worth hundreds of millions of dollars. To get it, they recruited Williams and two associates from St. Louis. 

The crew was supposed to force its way into the target’s home, threaten him, and demand that he move the cryptocurrency into accounts the conspirators controlled.

Williams and others traveled to Connecticut between August 21 and August 24, 2024. They rented vehicles and gathered supplies, including air rifles, walkie-talkies, and a laptop computer. For two days, they stalked the target and his parents, waiting for an opening to get inside the house.

Cameras, frustration, and a failed bitcoin break-in

The opening never came. Williams and his associates feared they had been captured on home security cameras. They also grew frustrated with the plan and with a lack of communication from their coordinators. They left Connecticut without carrying out the job.

Shortly afterward, a second crew of six men from Florida arrived to carry out the scheme again. On August 25, 2024, Danbury police arrested those six men after a violent carjacking. The men beat and kidnapped two people inside the vehicle. Those two victims were the parents of the target.

Local outlets have tied the target to a bitcoin theft in the range of $230 million to $245 million, though the exact figure varies from report to report. The federal case itself centers on the attempted robbery, not the original theft.

Federal agents arrested Williams on July 17, 2026. He remains free pending sentencing, and no sentencing date has been set. The FBI New Haven Violent Crimes Task Force, FBI Los Angeles, FBI St. Louis, and the Danbury Police Department investigated the case. Assistant U.S. Attorneys Karen L. Peck and Stephanie T. Levick prosecuted it.

Other defendants in the Danbury case have also pleaded guilty, according to local reporting. 

Poetic bitcoin justice

Earlier this month, a scammer who had stolen about 60 bitcoin (roughly $4.8 million) through a fake-review task scam lost it all when thieves emptied three Ledger addresses where the scammer had moved the proceeds on October 9.

Blockchain analysts at Chainalysis said the transfers went into one wallet reported as stolen, while the wider Ledger incident, in which a criminal group allegedly implanted seed-phrase-reading devices sold through Malaysian reseller CryptoBilis, may have drained about $86 million. Ledger said it was working with law enforcement and has confirmed no other vendors were targeted, following a July attack on Coldcard that cost users close to $120 million through a firmware bug.

This post 27-Year-Old Missouri Man Admits Role in Failed Bitcoin Kidnapping Plot first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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CFTC Again Probes Polymarket Over Whether It Let Americans Trade

The Commodity Futures Trading Commission is investigating whether Polymarket broke a 2022 enforcement settlement, according to Reuters reporting earlier today. The probe revives an inquiry the agency closed in 2025 without filing charges. For a platform that has tried to fit prediction markets inside US law, the question strikes at its core.

Polymarket settled with the CFTC in January 2022 and paid a $1.4 million penalty for offering event-based binary options without registration. The company agreed to block American users from its offshore exchange. Geofencing tools followed, but regulators and critics pointed to traders who reached the site through VPNs. The platform has also courted crypto natives, adding bitcoin deposits in October 2025 as part of a broader push to fund accounts with digital assets. 

According to the sources, investigators are examining three areas: the adequacy of Polymarket’s location controls, its advertising inside the United States, and the onboarding and customer protections on its US platform, which launched late last year. 

The company is headquartered in New York and runs its offshore exchange through a Panama-registered entity. A probe is an inquiry, not a finding, and many investigations end without enforcement. 

Polymarket’s mounting regulatory scrutiny

The inquiry sits inside a wider effort. In June, the Wall Street Journal reported that Polymarket paid individuals to produce videos of fictitious winning bets, and senators Adam Schiff and John Curtis urged the agency to open a probe. Bloomberg reported that investigators were examining the company’s social media activity.

CFTC Chairman Michael Selig has framed prediction markets as tools for hedging and information discovery, and he has argued that federal regulators, not states, should oversee them. Enforcement director David Miller has pledged tough policing of the sector.

Enforcement pressure has a test case. In April, prosecutors charged a US soldier, Gannon Ken Van Dyke, with making $400,000 from insider bets on the offshore platform. The indictment says he used a VPN and an “exit mode” that appeared to sit in a foreign country. Van Dyke has denied the charges, and Polymarket says it referred the matter to authorities.

Scale raises the stakes. Intercontinental Exchange, the parent of the NYSE, agreed in October 2025 to invest roughly $2 billion, and Bloomberg counted founder Shayne Coplan, 27, among the youngest self-made billionaires. The bigger the platform, the more its geographic walls matter.

Earlier this year, Polymarket’s five-minute Bitcoin up/down contract was exploited by a small group of traders who pushed Binance’s price in the final seconds before each close, according to a study. Just 821 wallets, about one in 300 traders, took $8.2 million in the pushed cycles, and 93% of the losses fell on retail bettors. 

The authors of the study found no manipulation in the fifteen-minute contract, since a longer window dilutes a fixed push, a lesson that matters now that Nasdaq and Cboe have filed to list similar binary contracts on equity indices.

This post CFTC Again Probes Polymarket Over Whether It Let Americans Trade first appeared on Bitcoin Magazine and is written by Micah Zimmerman.