CFA Report Pegs US Crypto Fraud Losses at $80.7B

The recent crypto market downturn has led to significant unrealized losses for digital asset treasuries, triggering nearly $1 billion in liquidations in an hour as Bitcoin dropped below $82,000. Companies like Strategy and BitMine have seen their holdings suffer substantial losses.

A local hacker in Indonesia was arrested for exploiting security flaws in Markets.com's system, resulting in a $398,000 cryptocurrency theft. The suspect faces charges under cybercrime and anti-money laundering laws, with potential penalties of up to 15 years in prison and fines reaching $900,000.

Strategy, a software company known for investing in bitcoin, has seen a significant decline in its stock price, dropping 68% from its peak. Bitcoin has also decreased to $83,142, the lowest since April, impacting Strategy's performance.

The 11 U.S.-listed bitcoin ETFs have recorded a historic outflow of $3.79 billion, surpassing the previous peak of $3.56 billion in February. BlackRock's IBIT ETF alone has seen redemptions exceeding $2 billion this month, with a single-day withdrawal of over $900 million on Thursday.

Over 65 crypto organizations are urging President Donald Trump to direct federal agencies to clarify digital asset regulations promptly. The letter, signed by major industry players, outlines specific actions the SEC, CFTC, Treasury, and Justice Department can take without new legislation, aiming to leverage Trump's pro-crypto stance into concrete agency action.

The U.S. stock market sell-off on Thursday caused a significant drop in investor sentiment, leading to a $2.7 trillion market-cap wipeout. Bitcoin also plummeted to its lowest level since April, with the S&P 500 index dropping nearly 4%.

The U.K. Serious Fraud Office is investigating Basis Markets, a failed crypto project accused of defrauding investors of $28 million through two fundraising rounds in late 2021. Two men were arrested, and digital devices and documents were seized in the inquiry.

JPMorgan predicts potential outflows of $2.8 billion from MicroStrategy if excluded from MSCI indices, with a possible $11.6 billion if other exchanges follow suit. The company's market value premium against its Bitcoin stockpile has decreased significantly.

Kalshi, a prediction market, raised $1 billion at an $11 billion valuation, led by Sequoia and CapitalG. Its rival, Polymarket, is also seeking funding at a $12-15 billion valuation after a recent $1 billion round.

Ray Dalio believes Bitcoin has drawbacks compared to gold as a store of value due to its reliance on a global network for transactions. He expressed concerns about Bitcoin's potential vulnerabilities to tracking, hacking, and quantum computing threats, unlike physical gold.