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CryptoMarket and Blockchain News
‍Bitcoin Lightning Network Achieves Record Capacity Amidst Upgrades The Bitcoin Lightning Network (LN) has reached a new all-time high capacity of over 5,600 BTC, equivalent to approximately $490 million. This surge is driven by increased adoption from major exchanges like Binance and OKX. Key technological advancements, including the latest v0.7 upgrade to Lightning Labs' Taproot Assets protocol, are enhancing the network's ability to handle diverse digital assets, such as stablecoins. Investments in startups like Speed further underscore confidence in LN's payment capabilities. These developments position LN as a critical infrastructure for scaling Bitcoin.
‍Theta Labs CEO Sued by Former Executives for Alleged Fraud and Market Manipulation Two former senior executives at Theta Labs have filed lawsuits against the company and its CEO, Mitch Liu, alleging a multi-year campaign of market manipulation, fraud, and retaliation. The complaints claim Liu used Theta Labs as a "personal trading vehicle" to orchestrate "pump-and-dump" schemes affecting THETA and TFUEL tokens. Allegations include misleading partnerships (e.g., misrepresenting a cloud services agreement with Google), generating false bids for NFTs, and undisclosed insider token sales. When employees raised concerns, they allegedly faced retaliation, leading to these whistleblower lawsuits filed on December 16, 2025.
‍Senate Introduces SAFE Crypto Act to Combat Fraud A new bipartisan bill, the SAFE Crypto Act, has been introduced in the US Senate to address the rise in cryptocurrency-related fraud. The legislation proposes a coordinated federal task force involving the Treasury, law enforcement, regulators, and private sector firms to identify and halt crypto crimes. This initiative follows a significant increase in reported losses, with Americans losing $9.3 billion to crypto investment scams in 2024, a 66% rise from the previous year. Industry experts believe the act's focus on collaboration and leveraging blockchain intelligence could effectively disrupt fraudsters' operations and enhance investor protection.
‍Kled Founder Accuses Believe's Pasternak of Token Dumping Avi Patel, founder of Kled, has accused Ben Pasternak, founder of the Believe launchpad, of selling millions of KLED tokens using a Dollar-Cost Averaging strategy. Patel alleges this violates a private agreement, as Pasternak had committed to OTC trades or token burns. The sales occurred during a major application update and low trading volume, forcing the Kled team into damage control. This follows previous public disagreements between the two founders in July 2025. Kled, an AI project on Solana, aims to create a marketplace for AI training data.
‍Hollywood Stars Launch Creators Coalition on AI A new coalition, the Creators Coalition on AI (CCAI), founded by actor Joseph Gordon-Levitt and filmmaker Daniel Kwan, is advocating for ethical AI standards in entertainment. The group's core demands include transparency, consent, and compensation for creators whose work trains AI models, job protection, safeguards against deepfakes, and the preservation of human creativity. This initiative mirrors efforts in other regions and aligns with discussions around data ownership and IP, potentially driving further exploration of blockchain for digital rights management.
‍Tether Invests $8M in Speed to Integrate USDT with Lightning Network Tether, the issuer of the world's largest stablecoin USDT, has led an $8 million investment round in Speed, a startup focused on enabling stablecoin payments via the Bitcoin Lightning Network. This initiative aims to expand USDT's utility into mainstream commerce, leveraging the Lightning Network's speed and low transaction fees. Speed currently serves over 1.2 million users and processes $1.5 billion in annual payment volume, offering instant settlement in BTC and USDT. Tether's investment supports its diversification strategy, contributing to its significant profits generated from Treasury bills backing USDT.
‍Fed Chair Candidate Waller's Crypto Views Signal Potential Market Shift Current Fed Governor Christopher Waller, a candidate for Federal Reserve Chair, has shared notable perspectives on digital assets. Waller expresses skepticism towards a U.S. Central Bank Digital Currency (CBDC), calling it a "solution in search of a problem." However, he views Bitcoin as "electronic gold" and emphasizes "no need to fear digital asset innovation," recognizing the potential of tokenization and distributed ledgers. He also sees well-regulated stablecoins as an "attractive payment instrument." Waller's advocacy for lower interest rates could foster a more bullish environment for cryptocurrencies. His acknowledgment that crypto is "woven into the fabric of the payment and financial systems" suggests a potential shift towards greater acceptance by the central bank.
‍South Korean Aid Misallocated to Crypto Traders A recent audit in South Korea revealed that approximately $15 million, intended for struggling small businesses, was improperly distributed to 269 cryptocurrency traders. These funds were part of the "New Start Fund," established to provide debt relief. The audit found significant lapses, with recipients holding substantial crypto assets receiving debt forgiveness. The current system's reliance on voluntary disclosure of assets is a key loophole, prompting calls for legislative reform to strengthen screening processes and enable verification of unlisted stocks and crypto holdings.
‍Blocto Wallet to Cease Operations Amid Significant FLOW Token Losses Blocto Wallet will be shutting down its core services, including BloctoSwap and Blocto Teleport, effective December 18, 2025, at 7 PM PST. The decision follows over $5.5 million in losses, primarily attributed to a more than 99% decline in the FLOW token's price since its 2021 peak. Users are urged to withdraw liquidity, bridge cross-chain assets, and export private keys before the deadline to secure their funds. Blocto's node staking services will remain operational.
‍Wall Street Banks Sell Over $530M in Bitcoin-Linked Notes Major financial institutions including Morgan Stanley, JPMorgan Chase, and Goldman Sachs have collectively sold over $530 million in structured notes tied to spot Bitcoin ETFs, primarily BlackRock's iShares Bitcoin Trust (IBIT). This development signals growing mainstream acceptance of digital assets. These sophisticated products offer clients regulated exposure to Bitcoin, catering to various risk appetites. This move is seen as a pivotal moment for crypto's institutional adoption.
‍UK Launches Review of Crypto Donations Amid Bribery Scandal The UK government is formally reviewing the use of cryptocurrency in political funding following a bribery case involving a Reform UK politician. The investigation, led by Philip Rycroft, will assess current political finance laws and safeguards against illicit foreign funding, with a particular focus on cryptocurrencies. Findings are expected by March and will inform future election and democracy legislation.
‍Bank of Canada Finalizes "Good Money" Stablecoin Standards The Bank of Canada has established strict criteria for stablecoin approval, aiming for them to function as reliable digital assets akin to banknotes. Key requirements include a 1:1 peg to the Canadian dollar, backed by high-quality liquid assets like government bonds. These rules, part of a broader global regulatory trend, will be enforced ahead of new legislation expected in 2026. Canada's move follows advancements in the UK and Hong Kong, and the US GENIUS Act. The stablecoin market is projected to grow significantly.
‍FTC Mandates Nomad Operator Repay Users After $186M Hack The U.S. Federal Trade Commission (FTC) has ordered Illusory Systems Inc., the operator of the Nomad cross-chain bridge, to repay users for losses stemming from the 2022 $186 million exploit. The FTC cited misrepresentations about the platform's security. The breach occurred on August 1, 2022, due to a critical vulnerability introduced in June 2022. Hackers stole approximately $186 million in digital assets. The FTC found that Illusory Systems failed to implement secure coding practices and adequately test smart contracts. Under the proposed settlement, Illusory Systems must implement a comprehensive information-security program, undergo regular independent security assessments, and return all recovered funds to affected users. The company is also prohibited from making future misrepresentations about its security measures.
‍Bitcoin ETFs Witness $358M Outflow Amidst Market Correction Spot Bitcoin ETFs experienced a significant net outflow of $358 million, the largest in over three weeks. This, coupled with Bitcoin's recent price dip, has raised questions about institutional sentiment and the possibility of BTC reaching $100,000 this year. Analysis indicates that external macroeconomic factors may be contributing to the correction. Despite the outflows, key metrics like Bitcoin's correlation with gold and implied volatility remain relatively stable, suggesting that fundamental institutional interest may not have shifted significantly. Further data on liquidity injections is pending.
‍KindlyMD Faces Nasdaq Delisting Amidst 99% Stock Plunge KindlyMD's stock (NAKA) has fallen dramatically, closing at $0.38, a 99% decrease from its yearly high of $34.77. The company is at risk of delisting from Nasdaq if its shares do not consistently trade above $1.00 by June 8, 2026. This follows a challenging period post-merger with Nakamoto. Despite holding approximately 5,398 BTC ($474 million), the company's market capitalization is reportedly $256 million. CEO David Bailey has acknowledged market volatility and encouraged short-term traders to exit.
‍Trump Hints at Bipartisan SEC/CFTC Appointments, Potentially Reviving Crypto Bill President Trump has indicated openness to appointing Democratic commissioners to the SEC and CFTC. This move could be crucial for advancing the stalled crypto market structure bill in the Senate, which requires bipartisan oversight for new powers granted to these agencies. Democratic senators have signaled that their party's involvement in the rulemaking process is essential for the bill's passage. Trump's comments suggest a willingness to share power, a potential compromise to ease these concerns. However, the bill's timeline remains uncertain. The Senate Banking Committee is not expected to formally consider it until January 2026 at the earliest, as bipartisan negotiations continue amidst a closing legislative window before the 2026 midterms.
‍Senator Warren Voices Concerns Over DEXs and Trump's Crypto Ties Senator Elizabeth Warren has raised significant concerns regarding the national security risks posed by decentralized exchanges (DEXs), specifically highlighting PancakeSwap. She cited its alleged connection to a Trump-linked stablecoin and its role in laundering funds stolen by North Korean hackers, calling for enhanced regulatory oversight. Warren has formally inquired with the Treasury Secretary and Attorney General about existing regulatory gaps and actions being taken to address the risks of DEXs operating without stringent AML and KYC protocols. She noted reports indicating approximately $263 million from a $1.4 billion Bybit exchange theft was funneled through PancakeSwap. Further concerns involve PancakeSwap's promotion of the USD1 stablecoin, linked to the Trump family. Warren expressed apprehension about potential "improper political influence by the Trump administration on enforcement decisions." This follows her previous criticisms of the President's actions regarding crypto and reports alleging substantial earnings by the Trump family from crypto ventures.
‍RedotPay Secures $107M Series B for Stablecoin Payments Expansion Hong Kong-based RedotPay has closed a $107 million Series B funding round, bringing their 2025 total to $194 million. The round was led by Goodwater Capital, with participation from Pantera Capital, Blockchain Capital, and Circle Ventures. Founded in 2023, RedotPay offers stablecoin payment products, including a card for spending digital assets and cross-border transfer rails. They report over 6 million users across 100+ markets, with an annualized payment volume exceeding $10 billion. The funds will support acquisitions, licensing, compliance, and talent acquisition. This funding reflects strong investor confidence in the growing stablecoin sector, further boosted by the US GENIUS Act. The stablecoin market has grown by over $50 billion to approximately $309.55 billion. RedotPay has also partnered with Ripple for a crypto-to-naira payout feature in Nigeria.
‍Keel to Inject $500M into Solana's RWA Market Keel has launched Season 1 of the Tokenization Regatta, a competition designed to allocate up to $500 million to selected tokenized assets on the Solana blockchain. This initiative aims to boost Solana's RWA ecosystem, potentially increasing the distributed value by over 60%. Asset issuers can apply through a formal RFP process. Applications opened on December 11, 2025, with tracks for immediate deployment or future development. Submissions will be evaluated on tokenization model quality, yield potential, and liquidity.
‍Institutions Withdraw Over $580M from Crypto ETFs Amid Volatility U.S. spot Bitcoin and Ethereum ETFs saw their largest combined net outflow in over two weeks, totaling $582.4 million on Monday. This suggests institutional investors are reducing risk exposure due to renewed U.S. equity volatility and global monetary policy uncertainty. Bitcoin ETFs experienced $357.6 million in outflows, while Ethereum ETFs saw nearly $225 million withdrawn. Analysts note Bitcoin is increasingly correlating with the Nasdaq, acting as a derivative. Economic pressures, including inflation concerns and rising Treasury yields, contribute to this trend. Despite short-term de-risking, a cautiously optimistic long-term outlook persists, with factors like expanding global liquidity and institutional infrastructure supporting potential recovery.