CFA Report Pegs US Crypto Fraud Losses at $80.7B

U.S. bitcoin ETFs are experiencing a turnaround with $1.1 billion in net inflows over three days, led by BlackRock's iShares Bitcoin Trust. The Coinbase Premium Index has shifted to positive, indicating a resurgence in U.S. demand for bitcoin despite the cryptocurrency's price remaining below its October peak.

The Comptroller of the Currency faced pressure from Senator Warren to reject or pause the review of a bank charter application from a crypto company linked to President Trump. The company's ties to foreign investment and potential conflicts of interest raised concerns during a Senate Banking Committee hearing.

MARA Holdings announced a partnership with Starwood Property Trust to convert U.S. Bitcoin mining sites into AI-focused data centers, aiming to shift from Bitcoin price dependency to power-to-compute monetization. The move could potentially transform MARA's long-term earnings profile, pending signed AI tenant agreements.

Vitalik Buterin has proposed a comprehensive plan to address vulnerabilities in Ethereum's cryptographic foundations due to potential threats from quantum computing. The plan involves replacing consensus-layer BLS signatures, data availability tools, ECDSA signature scheme, and zero-knowledge proof systems with quantum-resistant alternatives.

Starknet introduced strkBTC, a Bitcoin-based asset for enhanced privacy on the Ethereum layer-2 scaling network. Users can shield balances and make confidential transfers, similar to Zcash's privacy features, with the ability to stake for rewards.

Block Inc announced a significant workforce reduction of over 4,000 jobs, representing more than 40% of its employees, to align with its strategic priorities. The restructuring is expected to incur charges of $450-500 million, with most costs anticipated in the first quarter of fiscal 2026.

A new bill, the Promoting Innovation in Blockchain Development Act, aims to protect decentralized software developers from criminal liability under U.S. code 1960. This bill goes beyond the current market structure legislation being debated in Washington, providing clarity for engineers in the crypto space.

American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., reported a $59.45 million loss in Q4, contrasting with a profit last year. The company holds 6,235 BTC, including Bitcoin pledged for miner purchases under an agreement with Bitmain.

Circle's stock surged 45% after its fourth quarter earnings report, recovering from an 80% drawdown. Despite a $70 million loss, the company's USDC stablecoin saw a 72% increase in circulation.

Indiana lawmakers have approved legislation allowing public retirement plans to invest in Bitcoin and crypto ETFs, with Governor Mike Braun set to sign the bill. The law mandates offering self-directed brokerage accounts with crypto options by 2027.