White Hat Hackers Withdraw Close to 4,000 BTC from Liquid Sidechain
The Liquid Network, a Bitcoin sidechain, experienced a significant outflow recently, with nearly 4,000 Bitcoins — valued around $319 million — removed from the chain. A group identifying as white hat hackers claimed responsibility via an on-chain OP_RETURN message stating, "We are white hats, contact us on-chain."
Following the incident, Liquid's operators promptly suspended network activity to investigate and consider options for fund recovery. Chain data shows the multi-signature wallet balance dwindled from around 4,200 BTC to approximately 207 BTC, marking a withdrawal of 3,998.5 BTC. Normally, Liquid transfers require authorization from 11 of 15 multisig members, with outbound funds restricted to whitelisted addresses. However, this withdrawal was conducted using the SideSwap PAK (Peg-out Authorization Key), which officials assert remains uncompromised alongside other keys.
Currently, Liquid's bridging nodes are offline, and the network is paused with no new transactions processed. Crypto analyst DBCrypto noted that the moved funds have not been mixed and remain on-chain in Bitcoin addresses, suggesting the white hat actors aim to highlight security gaps rather than theft. The incident raises concerns over potential failures in the multisig approval or whitelist enforcement mechanisms. Jan3 CEO Samson Mow confirmed active collaboration with Liquid to address the situation.
US Bitcoin Spot ETFs See Their Strongest Three-Week Capital Inflows in 2026
Despite Bitcoin not surpassing its 50-week moving average to confirm a bull market, US spot Bitcoin ETFs have attracted considerable investor interest. Data from SoSoValue indicates net inflows of $987 million in the latest week, amounting to a total of $3.8 billion over the past three weeks. The market’s total assets under management reached $101.3 billion, with cumulative net inflows since inception at $55.6 billion.
Notably, a single day last Thursday recorded inflows of $731 million—the largest daily inflow since January 14 this year. Bitcoin’s price has maintained levels above $80,000, reflecting sustained investor appetite amid a cautiously optimistic market backdrop.
AMC CEO Condemns Robinhood’s Tokenized Stock Initiative
Robinhood's Ethereum Layer-2 project, which offers tokenized versions of traditional stocks including AMC, has drawn attention within the crypto community. AMC CEO Adam Aron publicly criticized the unauthorized tokenization of the company’s shares, describing it as "repugnant and unforgivable," and warned of potential legal action.
In response, Robinhood co-founder Vlad Tenev engaged with the criticism on social media in a dismissive tone. Meanwhile, Robinhood’s Chief Legal Officer Dan Gallagher reaffirmed the company's understanding of U.S. securities laws and stated the firm has no plans to halt these offerings, signaling readiness for legal challenges. This exchange reflects growing tensions around tokenized securities in decentralized environments.
Major Financial Institutions Unite to Launch US Dollar Stablecoin
A consortium of 21 global financial giants—including Bank of America, Goldman Sachs, Citigroup, Deutsche Bank, UBS, Mitsubishi UFJ, and Fidelity Investments—announced plans to establish a company dedicated to developing a US dollar stablecoin. The project aims for a launch in the first half of 2027, with future extensions to include G7 currencies like the euro.
Concurrently, G20 nations issued a joint statement endorsing crypto assets as a tool for economic innovation, committing to implement responsible and effective regulation to foster digital finance advancements.
Predictive Market Operator Kalshi Bans Former GOP Congressman Amid Insider Trading Allegations
Kalshi has imposed a lifetime trading ban on ex-Republican Congressman George Santos for allegedly engaging in insider trading within markets related to his own controversies. Santos dismissed the ban as frivolous.
Separately, New Jersey’s Attorney General petitioned the state Supreme Court to clarify whether predictive markets fall under federal or state regulatory jurisdiction—a dispute involving at least 20 states and underscoring growing regulatory complexity across jurisdictions.
Crypto Market Snapshot and Industry Insights
At the time of reporting, Bitcoin (BTC) rose 2.6% to $80,234, Ethereum (ETH) climbed 2.3% to $2,513, and XRP gained 3% reaching $1.42. Leading weekly altcoin performers include PONS (+140%), ARB (+116%), and DASH (+66%), while PUMP (-13.2%), CC (-6.9%), and TRUMP (-4.1%) posted losses.
BitMEX founder Arthur Hayes forecasted Bitcoin could hit $1 million by 2030 but expressed stronger conviction in Ethereum’s risk-return profile, having materially increased his ETH holdings recently.
Additional Sector Developments
The IMF confirmed that El Salvador’s additional Bitcoin holdings post-2025 review originated from private donations, not government funds, and that custodial control of the wallet has partially shifted to private operators. President Nayib Bukele denied reports challenging this.
Cybersecurity firm Morphisec disclosed the spread of a malicious software aliasing as Anthropic’s "Claude Opus 5 Free Desktop" AI tool. Named RevStealer, the malware targets crypto wallets and sensitive data theft.
Hyperscale Data shuttered its Bitcoin mining operations in Michigan to pivot toward AI data centers. During the transition, its Bitcoin holdings fell from 1,006 to approximately 215 BTC, with projected contract revenues up to $1.2 billion.
These events highlight ongoing challenges in crypto security, infrastructure shifts, and regulatory landscapes, underscoring the need for robust risk management and compliance among market participants.