South Korean crypto exchange Bithumb has concluded its handling of a significant Bitcoin mis-issuance incident. The exchange announced that on the day of the error, it successfully recovered 99.7% of the erroneously distributed Bitcoin. For the remaining 0.3%, amounting to approximately 1,788 BTC, which had already been sold, Bithumb utilized its own assets to fully cover the shortfall. As of February 7, 2026, at 22:42:52, Bithumb has confirmed a 100% restoration of its Bitcoin asset consistency. The Korean Financial Supervisory Service initiated an on-site inspection on February 7 at 13:00. In response to the incident, Bithumb is implementing a compensation plan for affected users. All individuals who accessed the Bithumb app or website during the event period will receive a compensation of 20,000 Korean Won per person. Users who sold Bitcoin at a discounted price during the incident will be compensated for the full difference between the actual selling price and the market price, plus an additional 10% as a goodwill gesture. Furthermore, Bithumb is waiving all trading fees across all listed cryptocurrencies on its platform for a period of seven days, commencing February 9, 2026, at 00:00. #crypto #blockchain #news #BTC #Bitcoin

Bullish CEO Tom Farley predicts a significant period of consolidation within the cryptocurrency industry, citing the current market downturn as a key catalyst. In a recent interview with CNBC, Farley stated that many companies will realize they are operating with a single product rather than a comprehensive business. He anticipates that these firms will pursue mergers and acquisitions to achieve necessary scale. Farley suggested that this industry consolidation should have occurred one to two years ago, attributing the delay to inflated valuations. He believes the current market correction will bring an end to these unrealistic valuation expectations. #crypto #blockchain #news

## China's Evolving Virtual Asset Regulation: A Shift Towards Stratified Oversight China has taken a significant step towards formalizing its virtual asset regulatory framework with the issuance of "Document No. 42." This new policy systematically categorizes and regulates virtual currencies, stablecoins, and tokenized real-world assets (RWAs), marking a departure from its previous broad prohibition. Under the new framework, virtual currencies will continue to face a stringent "one-size-fits-all" ban within mainland China and for services targeting domestic users. Stablecoins are subject to a "dynamic assessment" approach, with an general prohibition on RMB-pegged stablecoins, though avenues for compliant operations are being explored. Real-World Asset (RWA) tokenization is now classified as a "licensed activity." While disorderly domestic RWA development is prohibited, the policy permits compliant issuance, filing, and regulation of domestic assets on overseas platforms. This move aligns RWA activities with existing financial regulatory systems under bodies such as the National Development and Reform Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, adhering to the principle of "same business, same risk, same rules." Overall, Document No. 42 aims to maintain financial security while guiding China's virtual asset regulation from a stance of comprehensive restriction to a more nuanced, stratified approach that emphasizes the practical application of digital assets.

Arthur Hayes, co-founder of BitMEX, has stated that Bitcoin derivatives do not cause price volatility but rather amplify existing market movements. In a recent social media post, Hayes argued that the cryptocurrency market is not subject to secret conspiracies leading to crashes. He further explained that the absence of government bailouts allows the market to efficiently purge over-leveraged investors and resume its upward trajectory. #crypto #blockchain #news #BTC #Bitcoin

According to Lookonchain, the entity Trend Research has divested another 20,770 ETH, valued at approximately $43.57 million, within the last 20 minutes. This recent sale leaves Trend Research with a holding of 10,303 ETH, estimated to be worth around $21.50 million. #crypto #blockchain #news

Solana co-founder Anatoly Yakovenko, known by his handle "toly" on X, has launched an experimental memecoin on the devnet called Percolator/SOV. This initiative introduces a novel mechanism where users stake the same token as collateral for transactions. The associated transaction fees will be permanently locked into an insurance fund, effectively reducing the token's circulating supply. #crypto #blockchain #news

Richard Heart's ProveX Protocol Raises Over $410 Million Amidst Allegations of Washed Funds New York, NY – February 8, 2026 – Richard Heart, the founder of HEX and PulseChain, has reportedly secured over $410 million in a new funding round for his latest protocol, ProveX. The fundraising effort, structured as a "Sacrifice" event, has drawn significant attention within the cryptocurrency community. However, analysis from Arkham Intelligence suggests a substantial portion of these funds, approximately $400 million, may originate from assets laundered through Tornado Cash. According to Arkham analyst Emmett Gallic, these funds are linked to over 950 addresses and are alleged to have flowed from previous PulseChain-related wallets. The reported method involved transferring Ether (ETH) into Tornado Cash, subsequently moving through more than 960 wallets before reaching the ProveX Sacrifice. Gallic further noted that due to a decline in ETH's market price, the value of these funds has reportedly seen a paper loss of approximately $280 million compared to their initial deposit into Tornado Cash. The allegations raise concerns regarding the source of funds and compliance within the burgeoning DeFi space. #crypto #blockchain #news

Forward Industries, a publicly traded company holding the largest Solana treasury, is facing significant financial challenges. The company currently possesses nearly 7 million SOL tokens, making its Solana holdings the most substantial among publicly traded entities, exceeding the combined holdings of its next three largest competitors. With an average purchase price of approximately $232 per SOL, the current market value of its holdings stands at roughly $600 million, resulting in an unrealized loss of nearly $1 billion against the current price of approximately $85 per SOL. Concurrently, Forward Industries' stock price has plummeted from a high of nearly $40 last year to its current level of around $5. (CoinDesk) #crypto #blockchain #news

Two underage students, aged 16 and 17, from California have been indicted on felony charges in Arizona after allegedly driving over 600 miles and posing as delivery drivers to break into a residence with the intent to steal approximately $66 million in crypto assets. According to police reports, the individuals restrained and assaulted the adult occupants of the home, demanding access to their cryptocurrency. They were apprehended shortly after their escape. Authorities recovered uniforms, zip ties, duct tape, and a 3D-printed firearm from the scene. The suspects claim they were recruited and coerced by unknown individuals operating under the aliases "Red" and "8" on the Signal messaging app. This incident is reportedly the first publicly documented "wrench attack" in the United States in 2026, as reported by The Block. #crypto #blockchain #news

South African Reserve Bank Governor Lesetja Kganyago has voiced concerns that the increasing adoption of stablecoins could lead to a fragmentation of the cryptocurrency market. Speaking at the 2026 Warwick Economic Summit, Kganyago emphasized the central bank's responsibility in maintaining monetary unity and affordability of access to currency, noting that the growth of stablecoins may pose a challenge to these objectives. He highlighted that stablecoins are increasingly being utilized in South Africa as a tool for low-volatility crypto asset trading. This statement follows a previous warning issued by the South African Reserve Bank in November 2025 regarding the financial risks associated with inadequate regulation of stablecoins. Furthermore, Kganyago underscored the necessity for central banks to adapt to evolving global uncertainties and economic shifts, such as increased U.S. tariffs, by leveraging diversified financial models. #crypto #blockchain #news

Bitwise Advisor Jeff Park has refuted recent claims suggesting that Nasdaq has removed options position limits for BlackRock's IBIT ETF and granted "unlimited leverage" to Wall Street. According to Park, the adjustments are not as portrayed. Instead, the proposed changes aim to remove the existing 25,000-share options position limit for several ETFs, including FBTC, ARKB, and HODL, as well as Ethereum ETFs. This move would align their limits with the current 250,000-share standard applicable to IBIT and BITB, addressing what is described as a "non-standard restriction" previously imposed on crypto assets. Park also clarified that an application to increase the options position limit for IBIT to 1 million shares, submitted in November of last year, remains unapproved, with the current limit still set at 250,000 shares. #crypto #blockchain #news #BTC #Bitcoin

A significant Bitcoin transaction has been reported, with a newly created address withdrawing approximately $106.68 million worth of BTC from Binance. The address, identified as "39B2BNj," moved 1,546 Bitcoin approximately 11 hours prior to this report, according to data tracked by Lookonchain. #crypto #blockchain #news #BTC #Bitcoin

Coinbase CEO Brian Armstrong acknowledged recent volatility in the cryptocurrency market, noting that such fluctuations are characteristic of the industry's cyclical nature. He expressed a continued long-term bullish outlook on crypto, emphasizing its rapid evolution and potential to disrupt traditional financial services. Armstrong stated that Coinbase remains committed to product and business development irrespective of market conditions, citing the ongoing need for global financial system modernization. The company's strategic focus remains on innovation and expansion within the burgeoning digital asset landscape. #crypto #blockchain #news

Onchain Lens data indicates a significant ETH transfer from Kraken, with a wallet, potentially associated with Bitmine, moving 20,000 ETH. The transaction is valued at approximately $41.67 million. #crypto #blockchain #news

Bitcoin's mining difficulty has experienced its largest single downward adjustment since July 2021, falling by 11.16% to 125.86 TH. This marks the 10th largest decrease in difficulty in the cryptocurrency's history. According to Mononaut, a developer for Mempool, the adjustment is primarily attributed to production limitations at mining facilities caused by adverse weather conditions in late January. Reports indicate that hashrate has shown signs of recovery towards the end of the current difficulty adjustment period. #crypto #blockchain #news #BTC #Bitcoin

The island of Jersey, a prominent offshore financial center, has established a distinct tax and regulatory framework for crypto assets. Notably, Jersey operates independently from the UK's tax system, offering a reputation for low tax burdens, clear regulations, and a streamlined structure. From a regulatory standpoint, Jersey classifies crypto assets as "assets" rather than legal tender, and does not automatically consider them securities or financial products. While Jersey implements a 5% Goods and Services Tax (GST), the tax authorities have clarified that the mere exchange of crypto assets used as a payment method is not considered a taxable transaction. #crypto #blockchain #news

China's New Crypto Regulations: Unpacking Hidden Industry Details in Real-World Asset Tokenization A recent regulatory document from China places the tokenization of Real-World Assets (RWAs) at the forefront, signaling a clear directive from regulatory bodies. This emphasis suggests a strategic focus on mitigating financial risks, particularly concerning a specific segment of the industry. The core of this new regulatory framework mandates a collaborative approach among various governmental bodies, including the Procuratorate, the Supreme People's Court, the Cyberspace Administration of China, and financial institutions. This coordinated mechanism aims to ensure a unified stance and synchronized action in cases and projects involving cryptocurrencies and blockchain technology. The article, authored by Liu Honglin, delves into the intricacies of these new regulations and their potential impact on the Chinese crypto landscape. For a comprehensive understanding of the unfolding developments, read the full analysis. #crypto #blockchain #news

EY Report: Smart Wallets Threaten Traditional Banking's Customer Dominance New York, NY – Global accounting firm Ernst & Young (EY) has issued a stark warning regarding the shifting landscape of customer interaction in financial services. A recent report highlights that the ascent of "Smart Wallets" is diminishing the primary customer touchpoint role traditionally held by bank accounts. According to the report, financial institutions that fail to "own the wallet"—meaning control this crucial customer gateway that integrates identity verification, asset management, and payment functionalities—risk losing their customer relationships. This could ultimately relegate them to the status of mere back-end infrastructure providers, the report states. (CoinDesk) #crypto #blockchain #news

Tether has announced its cooperation with Turkish authorities in freezing approximately $544 million (around €460 million) in cryptocurrency assets. This action is part of an ongoing investigation into an illicit online gambling and money laundering network operating within the country. Tether CEO Paolo Ardoino confirmed the company's participation, stating that Tether acted upon information provided by law enforcement agencies. The stablecoin issuer further reported its involvement in over 1,800 investigations across 62 countries, leading to the cumulative freezing of $3.4 billion in USDT tied to illegal activities. #crypto #blockchain #news

Chinese Regulators Define RWA Oversight: Debt Under NDRC, Equities and Securitization Under CSRC Recent reports from Caixin indicate a significant clarification of regulatory responsibilities for Real World Assets (RWAs) in China. According to the outlet, debt-related RWAs will fall under the purview of the National Development and Reform Commission (NDRC), while equity-based RWAs and asset-securitization RWAs will be supervised by the China Securities Regulatory Commission (CSRC). Similar to traditional offshore financing activities, the repatriation of offshore RWA-raised funds will be overseen by the State Administration of Foreign Exchange (SAFE). Other forms of RWAs will be jointly regulated by the CSRC and relevant departments based on their respective mandates. Industry analysis suggests that tokenized fundraising conducted on licensed exchanges in Hong Kong aligns more closely with China's strategic objectives. Given the Hong Kong Stock Exchange's exclusive operational rights over the Hong Kong stock market, it is anticipated that the exchange will open its doors to licensed cryptocurrency exchanges for the trading of tokens backed by equity as the underlying asset. #crypto #blockchain #news