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Reports say investigators traced $1.7B in flows to Iran-linked entities and IRGC-tied wallets.

Reports cite 1,500+ Iran-accessed accounts and USDT transfers via Hong Kong entities.

Binance denies violations and firings while citing Iran exchange exposure since 2024.

Binance has rejected reports that internal investigators uncovered $1.7 billion in cryptocurrency flows to Iranian-linked entities and later faced dismissal. The New York Times and Wall Street Journal reported that investigators traced funds to accounts linked to Iran’s Islamic Revolutionary Guards Corps and other Iran-backed groups. Binance denied violating sanctions laws and said no employee faced dismissal for raising compliance concerns.

Internal Probe and Alleged Iran Links

According to the New York Times, Binance investigators discovered last year that more than 1,500 accounts had been accessed from Iran. They also found that roughly $1.7 billion moved from two Binance accounts to Iran-linked entities.

The report stated that one of the accounts belonged to Blessed Trust, a Hong Kong payments firm that acted as a fiat partner for Binance. Investigators presented their findings to CEO Richard Teng and Chief Compliance Officer Noah Perlman.

Leung Ka Kui, a director of Blessed Trust, told the New York Times that the company did not knowingly facilitate sanctions-breaching transactions. He said its work with Binance involved routine disbursements such as invoices and payroll. Blessed Trust did not provide further comment.

Meanwhile, the Wall Street Journal reported that another Hong Kong entity, Hexa Whale Trading, moved roughly $500 million in USDT to the same Iranian network. Both publications cited documents stating that the funds supported Iran-backed groups, including Yemen’s Houthis.

Investigators reportedly concluded that the transactions were connected to entities tied to Iran’s Islamic Revolutionary Guard Corps. The publications cited internal documents to support their accounts.

Disciplinary Actions and Executive Changes

Reports claim that Binance suspended or fired investigators involved in the probe in 2025 after they presented their findings. The Wall Street Journal reported that executives dismantled the probe weeks after Zhao received a U.S. presidential pardon in October.

The NYT stated that at least four investigators faced discipline for alleged mishandling of confidential client data shortly after they reported the Iran-linked transactions. Both outlets cited internal documents and unnamed sources.

Several senior compliance officials have exited in recent months. The exchange has searched for a successor to Chief Compliance Officer Noah Perlman, who is expected to depart later this year.

The reports surfaced after Zhao founded Binance in 2017 and built it into the world’s largest cryptocurrency exchange. In 2023, Zhao pleaded guilty to money laundering, resigned, and received a four-month prison sentence. He also agreed to pay a $50 million fine and accepted a ban from involvement in the business.

Related: Binance Founder CZ Meets Trump Allies as USD1 Push Expands

Binance Response and Broader Context

In a statement to the Guardian, a Binance spokesperson said the company “did not violate sanctions laws in respect of the transactions described.” The spokesperson also denied that internal investigators lost their jobs for raising compliance concerns.

“No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues,” the statement said. Binance also addressed the issue on X, citing reduced exposure to Iranian entities.

The exchange stated that it reduced direct exposure to the four largest Iranian crypto exchanges by more than 97.3% between January 2024 and January 2026. Exposure reportedly fell from $4.19 million to about $0.11 million.

“Public blockchains are permissionless. Anyone can send assets to an exchange deposit address. Exposure cannot be reduced to zero,” Binance wrote on X. Zhao also posted that media reports repeated “negative narratives” from fired employees and claimed Binance has the “best compliance program in the industry.”

In 2023, Binance pleaded guilty and agreed to internal monitoring along with a criminal fine of nearly $1.81 billion and a $2.51 billion forfeiture order to settle three charges. The company also pledged to pursue bad actors, including customers from Iran.

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Bitcoin trades below Strategy’s $76K realized price, spotlighting corporate cost pressure.

Strategy holds 717,722 BTC, equal to roughly 3.4 percent of the total circulating supply.

Firm deployed $22.4B in 2025, marking its largest annual Bitcoin accumulation to date.

Bitcoin is trading below the average price paid by its largest corporate holder, and that gap has placed fresh attention on Strategy Inc.’s balance sheet. The company, formerly known as MicroStrategy, has accumulated more than 717,000 coins since 2020 and has not sold any of them. Its estimated realized price stands near $76,000 per coin, while the market recently hovered around $63.4K.

That difference, described as “Saylor’s discount,” refers to the gap between the company’s acquisition cost and current market value. It matters because Strategy now controls roughly 3.4% of the circulating supply, embedding its cost basis into the broader market structure.

Six Years of Relentless Accumulation

Strategy began its accumulation program in 2020 under Executive Chairman Michael Saylor. Since then, it has deployed capital at a scale rarely seen in public markets. Annual purchases reached $1.1 billion in 2020 and $2.57 billion in 2021. Spending slowed to $276 million in 2022 before rising to $1.9 billion in 2023.

Source: Strategy

The pace accelerated sharply afterward. The company invested $21.9 billion in 2024 and $22.4 billion in 2025. In 2026 alone, it has already allocated $4.1 billion. According to CryptoQuant data, 2025 marked its largest year of capital deployment.

Recently, an SEC filing shows Strategy added another 592 coins yesterday for nearly $40 million, paying an average of $67,286 per coin. The purchase raised total holdings to 717,722 coins, valued at about $48 billion at current prices.

Per the report, the acquisition was funded by selling 297,940 shares of Class A common stock through an at-the-market program. The disclosure followed a post by Executive Chairman Michael Saylor featuring a chart titled “The Orange Century.” Market participants interpreted the image as a signal that another purchase was imminent.

The Orange Century. pic.twitter.com/8zelTduTPC

— Michael Saylor (@saylor) February 22, 2026

The timing aligned with the company’s established pattern of incremental accumulation. Since 2020, Strategy has executed 99 separate acquisitions. Yesterday’s transaction marked its 100th purchase, underscoring the consistency of its approach. The running tally highlights a structured buying strategy rather than attempts to time short-term price swings.

Realized Price vs. Market Price

Strategy’s realized price, estimated near $76,000, represents its average acquisition cost. With Bitcoin trading well below that level, the company sits on an unrealized loss relative to its aggregate entry price.

Analysts caution that realized price is not a valuation model. It reflects cost basis rather than intrinsic worth. However, when a single entity controls more than 3% of supply, its average cost becomes a visible reference point for market participants.

Per CoinMarketCap’s data, the market recently dipped about 5% in 24 hours, leaving the asset near $63.4K and below the $65,000 threshold. Traders are now watching $60,000 as the next key support level. Volatility remains elevated, and liquidity conditions have tightened.

Meanwhile, Strategy’s Class A shares traded at $123.71, down 7.34% on the day referenced. The company’s stock performance often tracks movements in Bitcoin due to the scale of its holdings.

Related: Crypto Panic Deepens as Fear Index Hits 8 and Liquidations Surge to $375M

Why the Discount Draws Attention

The current price gap does not automatically imply undervaluation. Instead, it highlights how deeply institutional participation has integrated into market mechanics. With more than 717,000 coins on its books, Strategy’s cost basis has become a benchmark watched by both traders and analysts.

Bitcoin below Strategy’s realized price reflects broader macro pressure and persistent selling rather than a shift in corporate policy. The firm continues to accumulate despite price weakness.

For now, the “Saylor’s discount” captures a measurable divergence between corporate conviction and market pricing. As long as Bitcoin trades under that $76,000 threshold, the gap will remain part of the market conversation.

The post Why Bitcoin Below Strategy Holdings’ Price Matters Now: Saylor’s Discount appeared first on Cryptotale.

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The Missouri House moves Bill 2080 ahead, targeting a long-term state Bitcoin reserve.

The plan gives the Treasurer custody powers with strict reporting and security rules.

Renewed effort follows a prior bill that stalled before digital asset momentum grew.

The Missouri House has pushed Bill 2080 deeper into the legislative process, giving new momentum to a proposal that would place Bitcoin inside a state-managed reserve for the first time in Missouri’s history.

The measure surfaced early in the 103rd General Assembly and quickly cleared its initial readings before landing in the House Commerce Committee on Feb. 19. Per reports, it is a renewed attempt by lawmakers to formalize a digital asset strategy after an earlier effort stalled last year.

Missouri’s 103rd General Assembly introduced House Bill 2080 (Rep. Keathley) to create a Bitcoin Strategic Reserve Fund in RSMo Chapter 30. Managed by the State Treasurer, the fund accepts resident Bitcoin donations or bequests, stores them securely for at least five years, and…

— Wu Blockchain (@WuBlockchain) February 23, 2026

Essentially, Bill 2080 lays out a clear structure but stops short of grand promises, instead centering on custody, oversight, and a long holding horizon. According to an official report, the Missouri State Treasurer would take charge of a Bitcoin Strategic Reserve Fund, built under Chapter 30 of state law.

Besides, residents could donate Bitcoin directly to the state, including through estate transfers, with each contribution locked in secure storage for no less than five years. Only after that window could the Treasurer consider any sale or conversion.

Inside the Structure of Missouri’s Proposed Bitcoin Reserve

The legislation outlines a framework that leans heavily on security and compliance. Basically, Bill 2080 bars foreign or unlawful involvement in the reserve, limiting participation to approved U.S.-based partners that may assist with custody or related services.

The Treasurer, for instance, would be required to issue biennial reports detailing holdings, storage protocols, and any changes to reserve management. These reports stand as the main public-facing accountability mechanism. The proposal also introduces a simplified donation process.

Individuals who transfer Bitcoin to the state could receive recognition through a formal acknowledgment program. Beyond donations, the bill directs government agencies to accept specified cryptocurrency payments once the operational framework is established, effectively weaving digital assets into certain public-facing transactions.

A Renewed Push After an Earlier Bill Fell Short

This measure marks Representative Ben Keathley’s second push to create a state-backed Bitcoin structure. His earlier bill, HB 1217, surfaced in February 2025 and contained similar provisions, including Treasurer oversight and long-term custody requirements.

That effort received a committee hearing in March 2025 but never advanced and expired at the end of the session. However, Bill 2080 reopens the discussion in a different committee and in a broader political climate.

Notably, over the past year, several states have taken steps to explore or adopt their Bitcoin reserve plans, while national policy changes have reshaped expectations about digital asset management. The Missouri House is now positioning itself to revisit an idea that gained traction elsewhere after Missouri’s first attempt fell short.

National Shifts Push States Toward Bitcoin Reserve Strategies

Interest in the public sector Bitcoin reserves accelerated in 2025 when the federal government established its national strategic reserve under an executive order signed by President Donald Trump.

That move set off a wave of state-level proposals. Lawmakers in Kansas and Florida introduced similar measures, while Arizona, Texas, and New Hampshire passed legislation supporting digital reserve structures.

If passed, Bill 2080 would place Missouri among states evaluating Bitcoin as part of long-term treasury planning rather than speculative investment. By setting strict custody horizons and barring volatile short-term maneuvers, the bill adopts a conservative approach that mirrors the direction of several recently drafted state policies.

Related: New SEC Policy Allows 2% Haircut Rule for Stablecoin Capital

Next Steps in the Bill 2080 Legislative Path

Overall, if enacted, Bill 2080 would take effect in August 2026. The measure focuses narrowly on asset handling, reporting, and donation pathways, framing Bitcoin as a strategic contribution rather than a tool for immediate fiscal operations.

Whether the Missouri House ultimately backs the concept will depend on upcoming committee discussions, but the forward movement alone signals a notable shift. Missouri is again weighing whether digital assets deserve a foothold in its treasury strategy, this time with broader national precedent behind it.

The post Missouri House Forwards Bill 2080 to Launch a State-Backed Bitcoin Reserve appeared first on Cryptotale.

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About 20 clients reported 2.67M USDT missing from accounts starting in early January.

Internal logs tied a 34-year-old engineer to database checks of client accounts.

Police arrested the employee, and Yau Tsim Team 9 now pursues the full theft inquiry.

A cryptocurrency investment company in Tsim Sha Tsui reported that about 20 clients lost USDT worth HK$20.87 million earlier this year, prompting police to arrest a company employee on suspicion of theft. The losses involved roughly 2.67 million USDT and occurred at a firm operating a cryptocurrency settlement platform in the South Tower of Hong Kong Plaza on Science Museum Road.

After the company manager reviewed internal records and contacted police, officers arrested a 34-year-old network engineer surnamed Cai following an investigation. Could insider access pose one of the greatest risks to clients using third-party cryptocurrency platforms?

Discovery of Client Losses and Internal Review

The company began receiving complaints in early January after clients noticed missing USDT from their accounts held on the settlement platform. Around 20 clients reported losses, totaling approximately HK$20.87 million, according to information provided to police. In response, company management conducted an internal review of database activity linked to client account access.

The review showed that Cai, a network engineer, logged into the company database and checked multiple client accounts. Records indicated that Cai had served the company for four years and mainly managed mobile application systems used by clients.

After identifying the access activity, the company manager reported the matter to the police for further investigation. Police confirmed they received the report from the firm and began examining digital records and account logs.

Officers focused on how the employee accessed sensitive data and whether unauthorized transfers occurred. The findings led investigators to identify Cai as a suspect connected to the reported USDT losses.

Arrest and Ongoing Police Investigation

Police arrested Cai on suspicion of theft yesterday afternoon following initial inquiries. The case was transferred to the Yau Tsim District Criminal Investigation Team 9 for further handling.

Investigators continued examining electronic devices and internal systems linked to the alleged activity. A reporter from Sing Tao Daily visited the company office yesterday afternoon and observed several police officers at the scene.

Some officers examined computers inside the premises, which suggested active evidence collection during the visit. Police did not release details on recovered assets or potential charges beyond the theft allegation. Authorities confirmed that the investigation remains active as officers trace account access and transaction records. The police investigation seeks to identify all lost assets while tracking any potential fund transfers.

No court date or further enforcement actions have been announced at this stage.

Related: Hong Kong Grants VDX Virtual Asset License as Victory Fintech Joins SFC List

Pattern of Cryptocurrency-Related Crimes

Cryptocurrency-related crime cases have appeared frequently in recent years across Hong Kong. On August 25 last year, Central District Police received a report from a 77-year-old woman involving a stablecoin purchase scam.

She brought HK$3 million in cash to a Sheung Wan exchange on Jicili Street to buy stablecoins. Two male employees led her inside the shop and counted the cash before placing it into a concealed floor safe.

The employees later left the shop under various excuses and removed cash from behind the fake safe. When her e-wallet received only about HK$78,000 in stablecoins, she suspected fraud and contacted the police.

Police later arrested three people between August 26 and 28 on suspicion of obtaining property by deception and handling stolen goods. Investigators reported that some suspects had links to triad backgrounds and rented the shop involved. The victim’s total loss reached about HK$2.92 million, based on police findings.

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Crypto panic intensifies as Fear and Greed Index collapses to an extreme reading of 8.

Over $375 million in liquidations wipe out 124,557 traders in a 24-hour cascade.

Bitcoin and Ethereum lead broad losses as tariff headlines pressure risk markets.

Crypto markets lost their footing again, and the tone shifted fast. During early trading sessions, the Fear and Greed Index fell to 8, a level associated with outright capitulation. The reading, tracked by CoinNess, placed sentiment deep inside the “extreme fear” band, territory usually reserved for disorderly pullbacks rather than routine corrections.

Source: CoinNess

However, the mood change was not subtle. Liquidation data and spot prices moved in tandem, reinforcing a sense that traders were backing away all at once. Figures compiled by CoinGlass showed that $375.45 million in crypto derivatives positions were wiped out over 24 hours, underscoring a rapid unwind of leveraged exposure.

Sentiment Hits Rare Lows

The Fear and Greed Index, which aggregates volatility, trading activity, and broader engagement signals, runs from zero to 100. A reading of 8 suggests markets are operating with minimal risk appetite. Such readings tend to appear when downside momentum has already accelerated and confidence thins out quickly.

Consequently, red screens dominated across the majors. CoinMarketCap data indicated that each of the top 20 cryptocurrencies by market value declined over both the daily and weekly time frames. Losses ranged from 1% to as much as 12%, underscoring that the weakness was broad rather than isolated.

Source: CoinMarketCap

Bitcoin, for instance, slipped 4.42% to trade near $63,044, while Ether dropped 3.41% to around $1,822. The total crypto market capitalization also fell 2.98%, landing near $2.19 trillion. None of the moves was historic in isolation. Taken together, they reinforced the sense of coordinated retreat.

Long Positions Bear the Brunt

Following these adverse sentiments, the derivatives desks absorbed the sharpest impact. Of the $375.05 million in liquidations, long positions accounted for $291.38 million, a major contrast with shorts, which represented $84.69 million. The imbalance points to a classic long squeeze, where leveraged bullish bets are forced to unwind into falling prices.

Source: CoinGlass

In total, 124,557 traders were liquidated within the day. Not to leave out, the largest single order, valued at $2.95 million, occurred on Aster’s BTCUSDT pair. Per the report, Bitcoin alone saw approximately $150 million in liquidations, while Ether followed with $105 million.

The pattern was straightforward: as prices drifted lower, margin thresholds were breached. Automated closures added to the selling pressure. Momentum fed on itself for several hours before stabilizing.

Macro Crosscurrents Return

The selloff did not occur in isolation. Market data showed an 88% correlation between crypto assets and the S&P 500 ETF, SPY, which declined 0.9% during the same period. The alignment suggests digital assets were moving in step with broader risk markets rather than carving out an independent path.

Besides, equities reacted to renewed trade tensions tied to former President Donald Trump. Reports indicated the U.S. Supreme Court ruled that former President Donald Trump had exceeded his authority when invoking emergency powers to impose sweeping tariffs.

However, within hours, Trump turned to Section 122 of the Trade Act of 1974, announcing a 10% duty on imports and later stating the rate would rise to 15%, the maximum allowed under current law.

The timing overlapped with renewed selling in equities and cryptocurrencies alike. Traders cited policy uncertainty as one factor behind the repositioning.

Related: Is DOGE Primed for a Breakout as the $0.09 Floor Remains Intact?

A Market in Defensive Mode

With the Fear and Greed Index at 8 and hundreds of millions in positions erased, the current stretch reflects defensive behavior rather than selective rotation. The liquidation imbalance, the broad-based declines, and the equity correlation all point in the same direction.

Crypto panic, as reflected in the fear and greed index, has become measurable in both sentiment and leverage data. Whether conditions stabilize will depend on how quickly risk appetite returns. For now, the numbers show a market pulling back, decisively and without much hesitation.

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Terraform’s plan administrator alleges Jane Street used non-public TerraUSD data.

The suit points out a Curve3pool withdrawal sequence during the May 7, 2022 depeg.

Jane Street rejects the claims and is still waiting for a formal court response.

Terraform Labs’ bankruptcy administrator has sued Jane Street in U.S. federal court, alleging the trading firm used non-public information to profit during the 2022 TerraUSD collapse. The complaint claims Jane Street accessed internal liquidity decisions and positioned trades as TerraUSD lost its dollar peg, according to The Wall Street Journal. The case adds to ongoing legal fallout from the Terra ecosystem’s $40 billion wipeout.

Todd Snyder, the court-appointed plan administrator for Terraform, accused Jane Street of exploiting confidential communications during a crisis. “Jane Street abused market relationships to rig the market in its favor during one of the most consequential events in crypto history,” Snyder told The Wall Street Journal.

JUST IN: Terraform Labs files lawsuit against Jane Street, alleging insider trading tied to $UST and $LUNA collapse. pic.twitter.com/pU2A4FbkHb

— CryptoGoos (@cryptogoos) February 24, 2026

Jane Street denied the claims. A company spokesperson described the lawsuit as a “desperate attempt to extract money,” according to statements cited by the publication. The firm has not yet filed a formal court response.

Alleged Use of Non-Public Information

According to the complaint cited by The Wall Street Journal, Jane Street gained advance insight into Terraform’s internal liquidity plans as TerraUSD began to lose its peg in May 2022. The lawsuit claims the firm used that knowledge to structure profitable trades.

The complaint points to Bryce Pratt, a Jane Street employee and former Terraform Labs member, as a key link. Snyder alleges Pratt maintained communication lines with former colleagues at Terraform, including a software engineer and the head of business development.

Those conversations allegedly occurred in a private chat group. Snyder claims the channel transmitted Terraform-related information to Jane Street during a period of extreme market stress.

In one instance, the complaint describes a withdrawal of 150 million TerraUSD from the Curve3pool on May 7, 2022. Terraform did not announce the move publicly. Within ten minutes, a wallet allegedly tied to Jane Street withdrew an additional 85 million TerraUSD from the same pool. The lawsuit states that the timing and details of these withdrawals were not disclosed to the public.

Broader Legal Fallout From Terra’s Collapse

Terraform Labs, led by founder Do Kwon, collapsed in 2022 after its algorithmic stablecoin TerraUSD entered a death spiral alongside its sister token Luna. The crash erased more than $40 billion in market value and triggered bankruptcies across the crypto lending sector.

After failed revival efforts, Terraform filed for bankruptcy in 2024. Following that filing, the company agreed to pay the U.S. Securities and Exchange Commission $4.47 billion in penalties.

Meanwhile, legal action expanded beyond Jane Street. In late December, Terraform’s administrator filed a separate lawsuit against Jump Trading in U.S. federal court. That complaint accused the firm of unlawfully profiting from and materially contributing to the Terra ecosystem’s collapse.

Last December, Do Kwon received a 15-year prison sentence in the United States after pleading guilty in August to two criminal counts. His conviction marked a major milestone in the government’s response to the Terra collapse.

Related: Terraform Labs Launches Claims Portal for Crypto Losses

A Test of Insider Trading Theory in Crypto

Legal observers say the Jane Street case could test the boundaries of insider trading law in digital asset markets. The complaint relies on a stricter misappropriation theory, which does not require a traditional corporate insider relationship.

Under that approach, liability may arise if a market participant obtains confidential information from a protocol team and trades against the broader market. Rossow, cited in the report, said the theory could expand who qualifies as an insider in crypto cases.

“It suggests that in crypto, an ‘insider’ isn’t just an executive; it’s anyone with a private line to the ‘war room’ of a protocol during a crisis,” Rossow said.

The case will likely hinge on materiality and the source of the information, Rossow added. Analysts now watch how courts interpret communication channels between decentralized finance protocols and market makers.

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At Seoul Gangnam Police Station, 22 BTC vanished while the USB device stayed secured.

National Police Agency audit began after prosecutors lost 320 BTC in Gwangju to phishing.

Prosecutors now verify wallets via Blockchain.com and Etherscan to curb key misuse.

South Korean authorities plan new management guidelines for seized cryptocurrencies after police discovered 22 Bitcoin missing during an investigation. The loss occurred at the Seoul Gangnam Police Station. Investigators found the 22 BTC, worth about $1.5 million, no longer sat in the cold wallet used since November 2021. The physical USB cold wallet remained in police custody, yet someone moved the Bitcoin to an external wallet without authorization.

Police discovered the issue during an internal review. Officers did not report the device stolen. Still, the on-chain funds were gone. The case has raised concerns about how law enforcement controls access to seized digital assets.

According to Binance News, the missing Bitcoin had been seized as evidence in a criminal case in late 2021. Police kept the assets in sealed storage for years. The loss came to light after a wider review of seized crypto holdings began.

Nationwide Audit Expands After Separate Loss in Gwangju

The National Police Agency launched a nationwide audit of seized digital assets after a separate case in Gwangju. Prosecutors in Gwangju District admitted they lost 320 Bitcoin during an evidence transfer. A phishing scam compromised the transfer process.

That earlier incident triggered broader inspections across the country. Those checks then led to the Gangnam discovery. In other words, the wider audit exposed the missing 22 Bitcoin.

Authorities said they are investigating how the Gangnam transfer happened. They are also examining whether internal personnel played any role. The Gyeonggi Northern Provincial Police Agency is leading the internal probe.

Investigators are reviewing how wallet access was handled. They are also assessing whether private keys were exposed. In addition, they are looking for procedural gaps that may have allowed the transfer to go unnoticed for years.

Prosecutors Circulate a New Management Plan

At the same time, prosecutors moved to tighten control measures. According to the Ghosun Daily, the Supreme Prosecutors’ Office created a management plan for seized virtual assets. It delivered the plan to prosecutors’ offices nationwide.

The legal sector reported on the 23rd that the Supreme Prosecutors’ Office shared the plan through an official communication. The guidance requires prosecutors to check wallet holdings using official blockchain websites.

The plan also lists specific sites for each asset. It names blockchain.com for Bitcoin checks. It names Etherscan for Ethereum checks. The goal is to standardize how offices verify holdings.

The Gwangju District Prosecutors’ Office lost 320 bitcoins worth about 30 billion Korean won in market value last month. It later recovered all of them, according to the same reporting. Officials framed the management plan as a step to reduce repeat incidents.

Related: South Korea Tightens Crypto Oversight to Track Hidden Assets

New Guidelines Target Access Control and Reporting

South Korean authorities are now preparing new guidelines for handling cryptocurrencies seized in criminal cases. The measures aim to strengthen oversight and reporting. They also aim to reduce the risk of unauthorized transfers.

The planned approach includes tighter access controls. It also includes more frequent verification of on-chain balances. In addition, it calls for improved audit trails tied to access and transfers.

The Gangnam case shows a key risk in crypto custody. A cold wallet device can remain physically secure while the funds move elsewhere. That reality makes private key control central to evidence management.

With these cases in view, authorities are shifting procedures for digital evidence. They are working to align seized crypto handling with stricter custody practices used for traditional assets such as cash and gold.

If you want, I can also tighten the wording further to reduce repeated phrases, keep every sentence under 30 words, and keep the total closer to 560–590 words without adding any new facts.

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Buterin says attention limits mute DAO voters so personal agents can act for them.

He warns delegation concentrates power as supporters lose voice after one click.

He backs privacy by ZK anonymity and MPC outputs that reveal judgments not data.

Vitalik Buterin said artificial intelligence could help fix structural weaknesses in decentralized governance, arguing that personal AI agents may allow users to participate more effectively in DAO decision-making. In a post on X on Sunday, he described attention limits and low participation as persistent obstacles. He warned that delegation concentrates power, while unchecked AI control risks dystopian outcomes.

He stated that democratic and decentralized systems often struggle because many decisions require time and expertise that most participants lack. As a result, governance participation in DAOs typically ranges between 15% and 25%.

He added that low turnout can create risks, including centralization and governance attacks, where a single actor acquires enough tokens to pass harmful proposals unnoticed.

Personal AI Agents and the Attention Problem

Buterin wrote that one of the core issues in DAO governance is the “limits to human attention.” Many proposals demand technical knowledge or sustained focus. Most users cannot track every vote.

He argued that delegation, the common solution, weakens user influence. “The usual solution, delegation, is disempowering,” he wrote. He said delegation allows a small group of delegates to control outcomes while supporters lose influence after assigning their vote.

Instead, he proposed personal AI agents trained on a user’s past messages, opinions, and decisions. These models would vote in line with how the individual would act. This approach, he said, could address participation gaps without transferring authority to a central group.

"AI becomes the government" is dystopian: it leads to slop when AI is weak, and is doom-maximizing once AI becomes strong. But AI used well can be empowering, and push the frontier of democratic / decentralized modes of governance.

The core problem with democratic /…

— vitalik.eth (@VitalikButerin) February 21, 2026

He cautioned against extreme reliance on AI. “AI becoming the government is dystopian,” he wrote, adding that weak AI produces poor outcomes, while powerful AI could create bigger risks. He framed AI as a tool rather than a governing authority.

Public Conversation Agents and Suggestion Markets

Beyond individual voting, Buterin introduced “public conversation agents.” He wrote that good decisions cannot emerge from a linear process that averages isolated opinions. “Making good decisions often cannot come from a linear process of taking people’s views… and averaging them,” he stated.

He suggested systems that aggregate participants’ information and then allow each user, or their AI, to respond based on that broader input. These systems would summarize individual views into formats suitable for public sharing while protecting private information.

He also proposed “suggestion markets.” In this model, participants submit proposals or arguments, and AI agents back them with tokens. If the governance mechanism accepts the input, token holders receive a payout. This structure ties financial incentives to the quality of ideas.

Related: Vitalik Buterin Links FOCIL and EIP-8141 for Rapid Tx Inclusion

Privacy and Secure Decision-Making

Buterin addressed challenges in situations involving confidential information, such as negotiations, dispute resolution, and compensation decisions. Decentralized systems often struggle in these cases.

He suggested multi-party computation and cryptographic tools to allow AI models to review private data securely and output only judgments. He also called for zero-knowledge proofs to protect participant anonymity.

He distinguished between anonymity and content privacy. Anonymity protects identities, while content privacy prevents unnecessary disclosure of personal data. He argued that governance tools should integrate these safeguards from the outset.

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Bitcoin liquidation losses hit $222M after President Trump raised planned global tariffs.

Extreme Fear sentiment deepened as the crypto market cap fell by nearly four percent.

Market analysts noted oversold signals and long-term divergence on Bitcoin charts.

Bitcoin began the week on shaky footing, tumbling quickly in early trading as markets digested a fresh round of tariff escalation from U.S. President Donald Trump. The drop was abrupt: from an opening level of $67,643, the asset slid nearly 5% within two hours and briefly touched $64,290 before stabilizing.

By press time, it hovered near $65,028, still down more than 4% over the past day and struggling to regain its footing. The sell-off unfolded just as Washington entered another bout of policy turbulence. According to reports, the U.S. Supreme Court ruled that Trump had overstepped his authority when he invoked emergency powers to impose sweeping tariffs.

Source: Truth Social

Within hours of the decision, Trump turned to a different legal pathway, Section 122 of the Trade Act of 1974, signing a proclamation that set a 10% duty on imports. Then came the surprise: a declaration that the rate would jump to 15%, which he called the maximum allowed under current law.

Tariff-Driven Volatility Sends Shockwaves Across the Bitcoin Market

The back-and-forth in Washington spilled quickly into digital asset markets. Traders braced for a wave of volatility, and it arrived. CoinGlass data showed a sharp round of liquidations tied to the downturn, with Bitcoin accounting for $222.03 million over 24 hours.

Source: CoinGlass

Per the data, most of that, $206.78 million, came from long positions that unwound as prices slipped lower. Short liquidations, on the other hand, barely registered by comparison, at $15.25 million. The pattern made clear how heavily leveraged the market had become.

As prices dropped under pressure from macro headlines, positions collapsed in succession, creating a feedback loop that deepened the drawdown. Traders described it less as a panic and more as an overdue flush-out after weeks of crowded long exposure.

Broader Crypto Market Turns Risk-Off Amid Tariff Shock

Nevertheless, the stress wasn’t confined to one asset. The total crypto market cap fell 3.95% to $2.24 trillion, a reminder that the downturn ran across sectors rather than following a narrow technical move in Bitcoin alone.

Sentiment gauges reflected the shift as well. The CMC Fear & Greed Index slid to 14, placing the market firmly in “Extreme Fear” territory, a zone where volatility often overshadows fundamentals.

Source: CoinMarketCap

Broader risk markets have been sensitive to tariff news in recent months, and this episode followed the pattern. Uncertainty around trade policy tends to raise caution, complicating positioning for both short-term traders and longer-horizon investors.

Related: Is DOGE Primed for a Breakout as the $0.09 Floor Remains Intact?

Key Technical Metrics Point to Exhaustion and Long-Term Divergence

Despite the pullback, some technical readings pointed to exhaustion on the sell side. On the weekly chart, Bitcoin’s RSI sat near 26, a level associated with extended weakness. Historically, market analysts view such readings as mark points where selling pressure begins to taper.

In support, market watcher Bitcoinensus highlighted in an X post a long-term hidden bullish divergence forming in the background. According to the analyst’s analysis, BTC’s price action has been pushing higher lows since mid-2025 while the RSI drifts into lower lows.

$BTC Developing a long-term hidden bullish divergence

Price continues to print higher lows, while RSI is making lower lows, a classic bullish divergence #Bitcoin (NFA) pic.twitter.com/gs8mJaQN8x

— Bitcoinsensus (@Bitcoinsensus) February 22, 2026

That mismatch, Bitcoin price holding ground while momentum softens, has historically marked important turning points or, at the very least, supported the continuation of an established uptrend. If the market leans into that setup, the first major test sits near $68,698, the ceiling that halted last week’s rally.

Clearing it would reopen the higher zones around $70,000 and $72,000, where sellers previously stepped in. However, any stumble in sentiment may keep pressure on the downside. In that case, Bitcoin could slip back toward the psychological $60,000 area, a level revisited earlier this month and now viewed as the next significant support.

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Dubai starts curated secondary trading so tokenized deeds can move on XRPL rails.

Some 7.8M Phase One tokens gain resale access under DLD and VARA governance rules.

Ctrl Alt issues ARVA management tokens so on-chain records match official registries.

Dubai has moved into the next stage of its real estate tokenization strategy as Ctrl Alt and the Dubai Land Department launched Phase Two of the Real Estate Tokenization Project Pilot. The new phase enables controlled secondary-market trading of tokenized property assets within a regulated framework. It follows an initial pilot that tokenized ten properties valued at more than $5 million and issued 7.8 million tokens now eligible for resale.

Controlled Secondary Market Trading Begins

Ctrl Alt and the Dubai Land Department introduced secondary trading within a supervised pilot environment. The move allows holders of tokens from Phase One to resell them through the project’s official distribution platform. Trading operates under regulatory oversight to maintain alignment with land registry processes.

Thrilled to see Phase Two launch for Dubai @Land_Department Real Estate Tokenization Project! Building on the pilot, controlled secondary market trading is now live for tokenized properties on the XRP Ledger, secured by @Ripple Custody via our partner @CtrlAltCo

This is massive…

— Reece Merrick (@reece_merrick) February 20, 2026

During Phase One, the partners tokenized ten properties representing AED 18.5 million in value. They issued approximately 7.8 million ownership tokens tied to those assets. Now, these tokens can move within a controlled resale environment.

The secondary trading phase seeks to test market efficiency and operational readiness. It also aims to strengthen transparency, governance, and investor protections. All transactions will continue to run on the XRP Ledger and remain secured by Ripple Custody.

Ctrl Alt serves as the tokenization infrastructure partner for the initiative. The company minted and issued the original title deed ownership tokens during the first stage. It now deploys the technical framework that supports secondary transfers.

On-Chain Integration and Regulatory Structure

Ctrl Alt integrates directly with Dubai Land Department systems. This integration allows property title deeds to move, transfer, and remain recorded on-chain. The system ensures that ownership records stay synchronized with official registries.

All secondary market transactions are executed through the Ctrl Alt tokenization engine. The company also plans to issue Asset-Referenced Virtual Asset management tokens to enable regulated transfers. Both ownership tokens and ARVA management tokens will remain recorded on-chain.

The structure creates a single and immutable ownership record. Ctrl Alt operates as a licensed Virtual Asset Service Provider. It holds the first issuer license from VARA and also maintains a broker-dealer license.

Robert Farquhar, CEO of MENA at Ctrl Alt, said the collaboration demonstrates what government and institutional innovation can achieve together. He stated that native tokenization reaches full potential when assets move efficiently after issuance. He added that regulated secondary trading supports that outcome and sets a benchmark for on-chain asset issuance and management.

Matt Acheson, Chief Product Officer at Ctrl Alt, explained that the team built a secondary infrastructure that serves the broader ecosystem while meeting DLD and VARA governance requirements. He said Ctrl Alt engineered a framework that enables dual operation of ARVA management tokens and ownership tokens on-chain. He noted that the company manages technical complexity so distribution platforms such as PRYPCO can deliver fractional real estate experiences without building their own tokenization infrastructure.

As Dubai advances this framework, one question arises: will regulated secondary trading accelerate broader adoption of tokenized real estate assets?

Related: Dubai Regulator Bans Privacy Coins in DIFC From Jan. 12

Broader Tokenization Developments

The initiative forms part of Dubai’s wider digital asset strategy. The collaboration between government bodies and licensed infrastructure providers reflects a coordinated regulatory approach. It also signals continued experimentation within a defined pilot structure.

In parallel developments, World Liberty Financial announced plans to tokenize loan revenue interests tied to Trump International Hotel & Resort in the Maldives. The firm will work with Securitize, Inc. and DarGlobal PLC on the project. The private placement will target verified accredited investors under U.S. securities exemptions.

The offering will provide fixed returns linked to loan-related income from the resort’s development. The project aligns with WLFI’s broader strategy to structure and distribute branded tokenized real-world asset products.

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Tether ends CNH₮ minting and starts a two-phase exit after reviewing usage and demand.

Redemptions remain available for one year as the token exits across supported chains.

The firm reallocates resources to products with stronger adoption and durable utility.

Tether has announced a strategic transition for CNH₮, its offshore Chinese yuan-pegged stablecoin, and said it will phase out the token through a structured two-phase process. The company has already stopped issuing new CNH₮ and said it plans to discontinue redemption support one year after the announcement date. Tether linked the move to market demand, operational sustainability, ecosystem conditions, and community adoption.

Review Process Tied to Community Adoption

Tether said it regularly evaluates its stablecoin offerings to keep them aligned with real-world usage and long-term sustainability. It also said product decisions must match the needs of the communities that use its tokens. 

Tether pulls plug on CNH₮ !

Tether will discontinue support and new issuance of its offshore yuan-pegged stablecoin CNH₮, citing limited demand and market conditions, while allowing redemptions for one year.#Tether #Stablecoin $USDT #CryptoTale pic.twitter.com/EoBPs1kIO1

— CryptoTale (@cryptotalemedia) February 21, 2026

In its blog post, Tether described how it decides whether to maintain or introduce a token. Tether said, “Community interest and adoption are central to every product decision we make.” 

“When evaluating whether to maintain or introduce a Tether token, we assess market demand, operational sustainability, and broader ecosystem conditions that influence long-term usability.” Tether added that its priority is to allocate resources to strengthen “security, reliability, and innovation” across digital assets.

Decision to Discontinue CNH₮

Tether said it reached its decision after review and then set out a planned wind-down. “After careful consideration, Tether has decided to discontinue support for CNH₮.” It also said the transition will follow a process used in earlier product sunsets. 

The company said the transition will proceed in two phases. First, it has ceased all new issuances of CNH₮, so it will not mint additional tokens going forward. It framed the step as a way to reallocate resources toward products with stronger adoption and longer-term relevance. 

Tether also tied the decision to CNH₮ usage levels and to the standards it applies across its stablecoin portfolio. It said the token’s demand did not support continued operational focus at those standards.

Redemption Timeline and Holder Guidance

Next, Tether said it plans to discontinue redemption support for CNH₮ one year after the announcement date. It told holders across supported blockchain networks to redeem their CNH₮ as soon as possible, and to meet the deadline it will set. 

Until that date, Tether said it will continue to facilitate redemptions in line with its Terms of Service. It also said it will publish a separate reminder notice before the final redemption deadline so holders can track the timeline. 

Related: Tether Moves Toward Top 10 Position in US Treasury Bill Market

Tether said shifting market dynamics and limited community demand contributed to the move. It said the wind-down allows it to streamline its lineup and focus work where it can deliver more value, including core stablecoin liquidity, tokenization infrastructure, and tools for global users and builders. How will this shift shape demand for region-linked stablecoins? 

The transition shows Tether’s approach to product management through its data-based methods, which respond to market needs by converting tokens that fail to maintain user interest and reallocating resources to more valuable assets and infrastructure.

Tether uses three factors to decide which products to support: market conditions, customer demand, and community engagement to maintain its focus on stablecoins and value-adding solutions. The strategy creates a sustainable business model that meets customers’ current needs while adjusting to ongoing changes in the market and customer patterns.

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CZ reentered US elite circles after an October 2025 pardon formally closed his case.

At Mar-a-Lago, he met Trump allies and joined panels with top regulators and CEOs.

Binance steers 85–87% of the USD1 supply, and WLFI offers WLFI token rewards to holders.

Binance founder Changpeng Zhao returned to the United States in February 2026 for the first time since his 2024 release, attending a crypto summit at Mar-a-Lago, according to The Wall Street Journal. Zhao met Eric Trump and Donald Trump Jr. at the Trump family-backed World Liberty Financial event and later wrote on X that he “learned a lot.” His appearance marked a notable moment after he pleaded guilty in 2023 to anti-money laundering violations, served a four-month sentence, and received a full presidential pardon in October 2025.

Binance founder Changpeng Zhao made a triumphant return to the U. S.—his first visit since his release from prison in 2024—attending a crypto conference at Mar-a-Lago https://t.co/qOKrXhQ3RY

— The Wall Street Journal (@WSJ) February 19, 2026

High-Profile Gathering at Mar-a-Lago

The Mar-a-Lago summit brought together leading figures from finance, crypto, and politics. Attendees included Goldman Sachs CEO David Solomon, New York Stock Exchange President Lynn Martin, investor Kevin O’Leary, Coinbase founder Brian Armstrong, Senator Bernie Moreno, and artist Nicki Minaj.

During the event, Zhao mingled with Eric Trump and Donald Trump Jr. He also attended panels, including one featuring newly appointed CFTC Chairman Michael Selig. Reports described the gathering as low-key yet symbolically charged.

Zhao later posted on X that he “learned a lot,” focusing on policy discussions rather than political optics. The summit occurred as engagement between crypto leaders and traditional financial institutions continues to grow.

Listening to CFTC Chairman talk at WLF Forum in Mar a Lago. Learned a lot. https://t.co/DkpyZ3IKOZ

— CZ BNB (@cz_binance) February 18, 2026

Zhao’s return followed a period of legal scrutiny. In 2023, he admitted to anti-money laundering violations and paid a $50 million personal fine. After serving his sentence, he received a presidential pardon that removed long-term travel and business restrictions in the United States.

Legal Resolution and Renewed Access

Trump’s pardon removed the travel limitations that had restricted Zhao’s movement throughout the United States. The results allowed his return to the top financial networks; he participated in a prestigious event at the president’s private club. 

Zhao’s transition from federal prison to executive and regulatory networking events created a situation that attracted public interest. His attendance at the summit indicated that the judicial proceedings of his case had reached their final resolution.

Although Binance remains barred from US operations under its 2023 settlement, Zhao’s attendance signaled renewed access to policy conversations. He shared space with industry leaders and regulators shaping digital asset rules.

He also appeared alongside figures involved in ongoing market structure discussions. Among them were Coinbase CEO Brian Armstrong and Senator Bernie Moreno, who have publicly discussed progress on US crypto legislation.

Related: Inside the Comeback of Crypto’s Most Controversial CEO, Changpeng Zhao

USD1 Stablecoin and WLFI Expansion

The timing of Zhao’s return coincided with Binance’s growing role in World Liberty Financial’s USD1 stablecoin. Reports indicate that Binance controls roughly 85% to 87% of the $5.4 billion circulating USD1 supply.

~87% of USD1’s circulating supply is sitting on Binance.

That’s the highest single-exchange concentration among major stablecoins, per Forbes. pic.twitter.com/yWjEtmRH1Z

— 0xMarioNawfal (@RoundtableSpace) February 10, 2026

That concentration strengthens a Trump-backed venture that some critics have questioned over potential conflicts of interest. Lawmakers and commentators have raised concerns about a perceived quid pro quo between the pardon and Binance’s stablecoin dominance.

Zhao has repeatedly dismissed such reports as “not news.” Meanwhile, Binance launched an incentive program from February 20 to March 20, distributing 235 million WLFI tokens to USD1 holders who provide liquidity. 

At the summit, World Liberty Financial outlined plans to position USD1 as a “new digital Bretton Woods system” integrating real estate, banking, and decentralized finance. The organization wrote, “…the work is just beginning… We are building the future, and we are doing it together.”

World Liberty Financial also announced upcoming tokenized investment products tied to Trump resorts and encouraged attendees to explore USD1’s applications.

As Zhao reconnects with US policymakers and financial leaders, one question remains: will his renewed presence translate into greater operational influence for Binance within the evolving US crypto landscape?

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Ripple CEO lifts CLARITY Act approval odds to 90% after White House roundtable talks

Stablecoin yield dispute remains key hurdle as banks and crypto firms seek compromise

Prediction markets swing sharply despite rising confidence from industry leaders

Momentum around U.S. crypto legislation intensified this week after the Ripple CEO placed a 90% probability on the CLARITY Act becoming law by April 2026. The projection followed a high-level White House roundtable that brought together digital asset executives, banking representatives, and federal officials seeking to resolve final disputes over market structure rules.

As a result, Brad Garlinghouse’s updated estimate marked a measurable shift from his prior 80% outlook, signaling what he described as tangible progress in negotiations. His remarks came as lawmakers face a White House-backed push to finalize compromise language before the end of February, a timeline that could determine whether Congress advances the bill this spring.

White House Talks Signal Measurable Progress

The Ripple CEO shared his updated forecast shortly after attending a market structure discussion in Washington. Leaders from Ripple, Coinbase, major U.S. banks, and legislative advisers participated in the meeting, which focused on resolving disputes that have stalled the CLARITY Act in recent weeks.

“I think it’s now 90% it will pass by the end of April,” Garlinghouse said, referencing bipartisan engagement. He added that earlier predictions had been viewed as overly optimistic. “I had said a couple of weeks ago, I thought end of April at the time, people thought that was a little optimistic.”

NEW: #Ripple CEO @bgarlinghouse says there's now a 90% chance the CLARITY Act clears Congress by April.

Garlinghouse discusses today's market structure meeting at the White House and the importance of crypto legislation in the U.S. pic.twitter.com/cPbyurjfvJ

— Bitcoin.com News (@BitcoinNews) February 19, 2026

The 10-point increase from 80% to 90% reflects what he described as constructive dialogue between crypto firms and traditional financial institutions. The White House has reportedly encouraged both sides to reach common ground before the end-of-February deadline.

Stablecoin Yield Dispute Remains Central

At the center of the negotiations is a dispute over stablecoin yields. Banking groups, on one hand, have advocated for a broad prohibition on crypto firms distributing yield or interest on stablecoin holdings. They argue such products could undermine traditional deposit models.

Digital asset firms, on the other hand, counter that a blanket ban would suppress innovation and disadvantage blockchain-based financial services. Regardless, the Digital Chamber proposed exempting yield generated through activities such as liquidity provision and staking, rather than imposing a universal restriction.

Treasury Secretary Scott Bessent urged lawmakers last week to pass comprehensive crypto legislation this spring. Senator Bernie Moreno, a member of the Senate Banking Committee, echoed that timeline at the World Liberty Forum, stating the bill could clear Congress by April.

Prediction Markets Reflect Volatility

While executive confidence rose, prediction markets showed rapid swings. On Kalshi, contracts pricing the CLARITY Act becoming law before June surged to 85% Thursday morning from 39% the previous evening, following statements from industry leaders and lawmakers. However, those odds later retraced to 46%.

Moreover, contracts projecting passage before 2027 hovered near 71%, down from an overnight high of 87%. On Polymarket, odds of enactment in 2026 climbed to 86% at publication time. The volatility indicates that traders remain cautious despite public optimism.

Source: Polymarket

The divergence between executive commentary and market pricing underscores lingering uncertainty about whether lawmakers can reconcile final provisions within the compressed timeline.

Related: CLARITY Act Gains Momentum as Coinbase CEO Signals Win-Win-Win Outcome

Why the Bill Matters

If enacted, the CLARITY Act would represent one of the most consequential U.S. crypto frameworks in years. The legislation aims to clarify regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, an issue that has generated prolonged legal disputes over token classification.

Supporters argue that clearer statutory definitions could encourage institutional participation and reduce enforcement-driven ambiguity. Meanwhile, critics maintain that restrictive language, particularly around stablecoin yields, could push innovation offshore.

For now, the 90% estimate offered by the Ripple CEO reflects growing confidence among industry leaders. Whether Congress converts that optimism into legislation by April will depend on how swiftly negotiators bridge the remaining divide.

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FOCIL EIP-7805 shifts from research into direct planning for the upcoming Hegota fork.

Buterin says FOCIL with EIP-8141 lets smart wallets and privacy txs land in 1-2 slots.

With 17 random includers in each slot, security proofs cut censorship odds below 0.01%.

Ethereum developers have advanced Fork-Choice Enforced Inclusion Lists, known as EIP-7805, as a core consensus upgrade for the upcoming Hegota fork. The proposal moves toward implementation planning after contributor Soispoke.eth said the feature had been “SFI’d,” signaling internal alignment. The development places censorship resistance and transaction inclusion guarantees at the center of Ethereum’s next upgrade cycle.

FOCIL (EIP-7805) was just SFI'd and is the CL headliner for the Hegota fork.

This means Ethereum has decided to prioritize a feature that improves censorship resistance, gives better inclusion guarantees to its users, and strengthens its position as the most credibly neutral…

— soispoke.eth (@soispoke) February 19, 2026

The update also gained public backing from Ethereum Co-Founder Vitalik Buterin, who described how FOCIL works alongside account abstraction improvements. He stated on X that FOCIL enables censorship-resistant, rapid inclusion of any transaction. He explained that the design pairs with EIP-8141 to expand direct on-chain access for smart wallets and privacy protocols.

Developers spent eighteen months building FOCIL’s security proofs. Researchers modeled validator collusion, coercion attempts, and protocol exploits. Their analysis found that selecting 17 participants per slot reduces censorship risk below 0.01 percent under pessimistic assumptions.

FOCIL Design and Security Model

FOCIL introduces small inclusion lists at the consensus layer. In its current iteration, each list measures 8 kilobytes. Buterin said the size remains intentionally small, yet developers can expand it later if blocks require larger portions of transactions to flow through FOCILs.

He explained that 17 randomly chosen actors participate in each slot. These actors include the block proposer and designated includers. According to Buterin, this structure enables near-certain transaction inclusion within one to two slots, even during adversarial conditions.

Researchers designed the system to counter validator centralization risks. Buterin stated that even if every slot were sold through proposer-builder separation to a hostile actor, transactions could still reach inclusion quickly. He added that FOCIL does not remove proposer centralization, yet it limits its influence.

Synergy With Account Abstraction

FOCIL operates alongside EIP-8141, which builds on EIP-7701. Buterin said EIP-8141 grants smart accounts first-class status on-chain. He noted that this includes multisig accounts, quantum-resistant signatures, key changes, and gas sponsorship features.

He added that privacy protocols can also gain direct inclusion rights. Transactions from these accounts no longer require wrappers or external broadcasters. Instead, they can enter a public mempool and move directly to a FOCIL includer.

Previously, advanced smart wallet models faced operational friction. They relied on extra layers and could encounter processing discrimination. With native status under EIP-8141, the protocol treats them equally with externally owned accounts.

Related: Vitalik Buterin Defends Ethereum Neutrality and Speech

Interaction With MEV and MCP Designs

Buterin compared FOCIL’s structure with multiple concurrent proposer designs. He stated that FOCIL shares certain properties with MCP systems. Yet it does not attempt to control the MEV-relevant “last look” role.

Instead, the protocol continues to auction the last look function through encrypted proposer-builder separation. Buterin noted that MCP behavior depends heavily on design specifics. In contrast, FOCIL isolates inclusion guarantees from MEV control.

He described the approach as a way to disempower abusive proposer behavior. If hostile actors refuse to connect to public mempools or discriminate against applications, FOCIL still enables inclusion through randomly selected includers. This design aims to preserve rapid transaction processing across network conditions.

As Ethereum advances toward the Hegota fork, developers now shift from research to implementation planning for FOCIL and EIP-8141. With 17 actors selected per slot and 8-kilobyte inclusion lists, the network targets near-guaranteed inclusion within two slots. Could this model redefine transaction guarantees in adversarial blockchain environments?

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WLFI will tokenize Maldives resort loan revenues through Securitize and DarGlobal.

Tokens target accredited investors and offer fixed yield plus loan-linked income.

Issuance may use public blockchains with transfer limits under Reg D 506(c) and Reg S.

World Liberty Financial has announced plans to tokenize loan revenue interests in Trump International Hotel & Resort, Maldives, through a partnership with Securitize, Inc. and DarGlobal PLC. The private placement will target verified accredited investors under U.S. securities exemptions. The offering will provide fixed returns and exposure to loan-related income tied to the resort’s development. The project forms part of WLFI’s broader strategy to structure and distribute branded tokenized real-world asset products.

Flagship Maldives Development Anchors Offering

DarGlobal PLC, listed on the London Stock Exchange under DAR, is developing Trump International Hotel & Resort, Maldives, in collaboration with The Trump Organization. The project is scheduled for completion in 2030. It will feature about 100 ultra-luxury beach and overwater villas in one of the world’s leading hospitality markets.

Trump-linked WLFI enters tokenized real estate !

World Liberty Financial is launching an institutional #RWA product, with the first asset tied to the Trump International Hotel and Resort in the Maldives.

Is this real estate’s biggest crypto move yet?#Trump $WLFI… pic.twitter.com/YYUwxyO4V3

— CryptoTale (@cryptotalemedia) February 19, 2026

The tokenized structure will grant eligible investors access to fixed yield and loan revenue streams generated by the resort’s financing. Through interest payments, investors will gain exposure to the asset’s performance without holding direct property ownership. The structure operates within a regulated securities framework.

Revenue distributions will flow through digital tokens that represent loan revenue interests. Investors may also gain exposure to certain profits if a future sale occurs. 

Private Placement and Regulatory Framework

The tokens will be offered through a private placement under Rule 506(c) of Regulation D of the Securities Act of 1933. Only verified accredited investors may participate within the United States. Non-U.S. persons may invest through offshore transactions under Regulation S.

The tokens have not been registered under the Securities Act or any state securities laws. They will carry significant restrictions on transfer and resale. Sales in the United States will occur only through applicable exemptions from registration requirements.

WLFI expects to issue the tokens on supported public blockchains. The firm plans to enable access through select third-party partners and digital wallets, subject to legal requirements. Where permitted by law, eligible users may also use holdings as loan collateral through WLFI Markets.

Related: WLFI Price Breaks $0.11 After 30% Rally: Can Bulls Sustain Momentum?

Executives Outline Broader Strategy

Eric Trump, co-founder of World Liberty Financial, said the firm built WLFI to open decentralized finance to a wider audience. He stated that the new initiative extends that access to tokenized real estate. He added that eligible participants can now gain exposure to Trump International Hotel & Resort, Maldives, through a structured digital framework.

Carlos Domingo, co-founder and CEO of Securitize, said real estate has proven difficult to tokenize at scale. He noted that compliant on-chain products designed with governance and market structure in mind could attract global demand. He described the partnership as structured to deliver scalable digital real estate securities.

Ziad El Chaar, CEO of DarGlobal, described the collaboration as a breakthrough in real estate investment access. He stated that the initiative rethinks how qualified investors can access and trade loan revenue interests during property development. The partnership integrates blockchain technology with traditional real estate finance while maintaining regulatory compliance.

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CLARITY Act talks resume as Coinbase CEO signals three-way policy compromise path.

Stablecoin reward dispute narrows as banks and crypto companies return to talks.

Polymarket odds swing sharply to 90% as CLARITY Act momentum rebuilds in Washington.

Momentum is building in Washington around the CLARITY Act after weeks of tense negotiations between crypto firms, banks, and lawmakers. However, fresh optimism emerged today when Coinbase CEO Brian Armstrong signaled that talks had returned to a constructive phase, describing progress toward what he called a “win-win-win” outcome for the industry, traditional financial institutions, and U.S. consumers.

Market structure is making great progress, and I believe we're going to reach a win-win-win outcome.

A win for the crypto industry.
A win for the banks.
And, most importantly, a win for the American consumer. pic.twitter.com/t0WM3XUZX4

— Brian Armstrong (@brian_armstrong) February 18, 2026

Armstrong spoke alongside Senator Bernie Moreno (R-OH) at the World Liberty Forum in Mar-a-Lago before reiterating his remarks on X following a CNBC interview. His comments marked a shift from earlier gridlock that stalled advancement of the CLARITY Act and briefly strained relations between crypto executives and the White House.

Negotiations Reopen After Draft Dispute

The breakthrough follows weeks of disagreement over draft language that sought to restrict stablecoin rewards. Industry leaders, including the Coinbase CEO, opposed provisions that would ban interest-bearing stablecoins and position the U.S. Securities and Exchange Commission as the primary regulator of the crypto sector.

Armstrong stated during his CNBC appearance that Coinbase could not support the previous draft due to those provisions. He noted that concerns raised by the exchange and other industry participants prompted lawmakers and stakeholders to return to the negotiating table.

According to Armstrong, discussions now point toward a structure that satisfies crypto firms, protects banking interests, and advances President Donald Trump’s digital asset agenda. Initially, the White House had reportedly expressed disappointment when Coinbase withdrew support, describing the move as unilateral.

Regardless, renewed dialogue suggests alignment may be forming around revised language. Senator Moreno acknowledged that negotiations had stalled after lawmakers became “hung up” on stablecoin rewards, adding that such rewards shouldn’t be part of this equation.

Timeline and Political Outlook

Moreno projected April as a potential approval timeline for the CLARITY Act, stating, “We are going to get this across the finish line, hopefully by April.” His remarks signal confidence among Republican lawmakers that outstanding issues can be resolved within weeks.

When asked whether a Democratic shift in Congress could derail the measure, Moreno dismissed the possibility. He said neither the House nor the Senate would flip, framing the legislation as aligned with voter priorities. He cited concerns over inflation and government overreach as factors that shaped the current political environment.

Source: Polymarket

Meanwhile, prediction markets reflected fluctuating expectations. At press time, Polymarket odds of the CLARITY Act passing in 2026 briefly climbed to 90% before retreating to 56% at publication time. The rapid shift underscored both heightened interest and lingering uncertainty.

Related: U.S. CFTC Chair Selig Warns States Over Prediction Markets

Final Meetings Before Deadline

Meanwhile, industry representatives and banking executives are scheduled to reconvene today to address the remaining impasse over stablecoin yields. According to journalist Eleanor Terrett, another meeting could take place on February 19, though confirmation remains pending. Patrick Witt, executive director of the White House Crypto Council, also indicated that discussions may resume as early as this week without specifying a date.

NEW: Two sources familiar with the matter tell me the White House is considering another stablecoin yield meeting between banks and crypto representatives Thursday, though no plans have been finalized. https://t.co/Og3OooHaQr

— Eleanor Terrett (@EleanorTerrett) February 17, 2026

Only slightly more than one week remains before an end-of-month deadline that would require banking and crypto stakeholders to finalize terms. That timeline has increased pressure on negotiators to reach a consensus.Overall, the renewed momentum surrounding the CLARITY Act reflects a recalibrated approach after public friction between crypto firms and regulators. With the Coinbase CEO signaling progress and lawmakers pointing to an April target, attention now shifts to whether revised language can bridge divisions over stablecoin policy and regulatory oversight.

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Kraken acquired Magna to support token issuers earlier across the token lifecycle.

The arrangement closed Friday and extends Kraken’s sixth acquisition run in 12 months.

Kraken registered for a US IPO in November and shared 2025 financials in February.

Kraken has acquired token management platform Magna, marking its sixth acquisition in roughly 12 months as the crypto exchange advances toward a planned U.S. public listing. The deal closed Friday, and Kraken declined to disclose financial terms. The purchase follows its $1.5 billion acquisition of U.S. futures platform NinjaTrader in March 2025. With Magna now inside its ecosystem, Kraken expands deeper into token lifecycle services while preparing for an IPO filed confidentially in November.

Expanding Into Token Lifecycle Services

Magna provides infrastructure that helps crypto companies manage token distribution. Startups often promise investors a tranche of tokens during fundraising, similar to equity in traditional venture deals. As tokens begin trading, tracking allocations becomes more complex.

According to a recent Fortune report, Arjun Sethi, Kraken’s co-CEO, stated that the acquisition allows the exchange to support token issuers earlier in their life cycle. He said Kraken wants to engage projects before they reach the liquidity stage. That approach broadens Kraken’s role beyond secondary market trading.

Kraken operates under its parent company, Payward, and has accelerated dealmaking since mid-2025. The company entered into retail futures and traditional trading markets through its $1.5 billion acquisition of NinjaTrader. That purchase expanded Kraken’s reach beyond cryptocurrencies.

The exchange also acquired the proprietary trading platform Breakout, the tokenized equities provider Backed, and the derivatives infrastructure firm Small Exchange. Each transaction added new layers to Kraken’s product suite. Together, the deals position Kraken as a broader financial services platform.

In November, Kraken filed confidentially for an IPO in the United States. In February, it released portions of its 2025 financial results in a format similar to public company reporting. Sethi declined to provide a timeline for listing, noting that firms in the IPO process typically face regulatory quiet period restrictions.

Related: Kraken to Sponsor Trump Accounts for Wyoming Babies 2026

Industry Race Toward Full-Stack Platforms

Kraken’s move mirrors a wider shift among crypto exchanges. Competitors increasingly seek to capture value earlier in a project’s development cycle. Exchanges now compete not only for trading volume but also for infrastructure control.

Coinbase, one of Kraken’s largest rivals, announced plans to become an “everything exchange.” It recently enabled prediction market trading through a partnership with startup Kalshi. Last summer, Coinbase acquired Liquifi, a direct Magna competitor focused on token issuance and compliance workflows.

Anchorage Digital also entered the space. In December, it acquired Hedgey, a firm that provides token allocation and vesting tools. These transactions show how exchanges and custodians aim to integrate fundraising, distribution, and trading into unified platforms.

Magna will continue serving existing customers. Kraken said it will provide updates as it integrates products. 

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WLFI rebounds 30% from $0.099 after defending the key $0.10–$0.09 value support zone level.

Trading volume jumps 85% to $450M as open interest surges 45% to $367M in 24H.

Price holds above $0.115 support while resistance stands firm near the $0.129 level.

WLFI spent most of February moving sideways, with price repeatedly defending the $0.10–$0.09 support band. On the daily chart, that area aligns with the value area low on a fixed-range volume profile, reinforcing it as a support zone where bids tended to return.

Recently, that support was held again, and the rebound was swift. From a $0.099 low, the WLFI price jumped about 30% in two days, clearing $0.11 and topping out near $0.1294 before stalling at resistance. However, a slight pullback followed, erasing about 9% of the surge.

Source: TradingView

At press time, the token trades around $0.1176, up roughly 2% in the past 24 hours and about 11% over the past week. Besides, the advance unfolded alongside an 85% surge in 24-hour trading volume to $450 million, sharply diverging from the broader market’s 1.54% decline.

A turnover ratio of 0.154 indicates concentrated activity and aggressive positioning. Thus, market watchers are focused on whether volume remains elevated. Sustained prints above $400 million would signal continued engagement, while a rapid drop would suggest the move is losing fuel.

Whale Buy and World Swap Update Lifts Attention

Activity around WLFI also picked up early in the week after a single large wallet executed a notable buy. According to Arkham Intelligence, that address deployed roughly $2.75 million in USDC to acquire 21.11 million WLFI tokens, a transaction that quickly circulated across trading desks and social channels.

A newly created wallet, 0xC581, spent 2.75M $USDC to buy 21.11M $WLFI in a single transaction 10 hours ago.https://t.co/ly9DmUvQJV pic.twitter.com/EKldhNZj8r

— Lookonchain (@lookonchain) February 16, 2026

The timing drew added attention. The purchase landed days after Zak Folkman, co-founder of World Liberty Financial, said the project plans to launch World Swap, a foreign exchange and remittance platform aimed at the $7 trillion forex market. While the announcement did not include launch metrics or revenue projections, it provided fresh context as capital rotated into the token.

Derivatives data reflected the shift in positioning. Open interest expanded by more than 45% over 24 hours, reaching about $367 million. The increase suggests new contracts entering the market rather than simply churn between existing participants.

Source: CoinGlass

Such an expansion in open interest often signals that traders are stepping in to express directional views. In this case, the rise points to heightened engagement in the futures market, with participants positioning around the project’s latest developments and the recent price momentum.

Related: XRP Price Analysis: Is the Bearish Trend Set to Continue Short Term?

Key Levels Frame the “Momentum” Question

From a chart perspective, the retracement has so far respected the 23.6% Fibonacci level at $0.1152. That mark also lines up with the 20-day moving average, giving the area added technical weight in the near term. Price has hovered just above it, suggesting that buyers are still defending the zone, at least for now.

Regardless, where the move goes next appears closely tied to participation. If volume remains firm and the $0.115 floor continues to attract bids, a return to the recent $0.129 peak comes back into focus.

Beyond that, traders have been eyeing the $0.14 area as the next logical extension. Besides, momentum readings are improving, though not yet stretched. The RSI stands near 45 and has turned higher after dipping into oversold territory earlier in the month.

A push through the 50 midpoint would typically reflect strengthening demand, though it would need to be accompanied by steady turnover to carry weight. Meanwhile, the more immediate risk sits below. A decisive break under $0.11 would weaken the current structure and reopen the prior $0.10–$0.09 demand band that defined February’s consolidation.

In short, the bias leans upward, but it rests heavily on sustained trading interest rather than a shift in underlying fundamentals.

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XLS-81 lets administrators gate XRPL’s native order book to approved, verified traders.

Access rules can align with KYC and AML checks while trades settle natively on-chain.

XLS-85 extends escrow to trustline tokens and MPTs, covering RLUSD and tokenized assets.

The XRP Ledger has activated XLS-81, a protocol upgrade that lets regulated institutions run gated trading venues directly on-chain. The amendment introduces a permissioned DEX that limits access to approved participants. Administrators can control who places and accepts trades while XRPL keeps order-book trading native to the ledger. The move signals XRPL’s continued focus on infrastructure designed for banks and brokers.

XLS-81 Brings Gated Trading to XRPL’s Built-In DEX

According to the protocol’s amendment documentation, XLS-81 creates controlled versions of XRPL’s built-in decentralized exchange. Instead of relying only on the existing open order book, the network now supports a structure that restricts participation. The model gives institutions a way to trade on-chain under defined eligibility rules.

Unlike permissionless decentralized exchanges that allow anyone to trade, the permissioned DEX enables designated administrators to decide who can place offers. Those administrators can also decide who can accept offers. In turn, the system can align participation with compliance checks such as know-your-customer and anti-money-laundering requirements.

A permissioned domain can restrict access on both sides of a trade. That design forms a members-only marketplace while keeping the trading mechanics native to the ledger. As a result, firms can use on-chain settlement and on-chain liquidity without entering fully open DeFi markets.

A Public Network Built for Regulated Participation

The XRP Ledger is a public blockchain that launched in 2012 and has close ties to Ripple. The network supports payments, token issuance, and decentralized exchange functionality at the base layer. With XLS-81, that base layer now supports controlled venues alongside open access trading.

The Permissioned DEX targets financial institutions that want blockchain-based settlement while maintaining control over counterparty eligibility. For banks and brokers, access control often serves as a minimum requirement. Many of these firms cannot interact with markets that do not restrict participation.

The new model keeps the core exchange workflow on XRPL while adding a gating layer. Administrators can approve participants and restrict who interacts with offers. That approach supports a regulated market structure on a public ledger without changing how retail users access the open DEX.

XLS-85 Token Escrow Adds Conditional Settlement Options

The activation adds to a growing set of institutional DeFi primitives XRPL has rolled out this month. Token Escrow, known as XLS-85, went live last week. The update extends XRPL’s native escrow system beyond XRP to trustline-based tokens and Multi-Purpose Tokens.

XLS-85 also covers stablecoins such as RLUSD and tokenized real-world assets issued on the network. With token escrow, issuers and participants can set conditions around asset settlement. That creates a native tool for conditional settlement across a wider set of assets.

Together, XLS-81 and XLS-85 form a broader toolkit for regulated finance on XRPL. Token escrow supports conditional settlement for issued assets. The permissioned DEX offers a controlled venue for trading those assets within restricted participation rules.

Related: XRPL Prepares XLS-86 Firewall for Protocol-Level Security

Industry analysts say these steps reflect an ongoing effort to connect traditional capital markets with blockchain-native infrastructure. In this design, XRPL combines decentralization with regulated access. That mix supports use cases such as tokenized funds, stablecoin FX rails, and regulated secondary markets for tokenized assets.

In recent months, a RippleX engineer explored the potential for native XRP staking, and Ripple CTO David Schwartz discussed possible future design changes. Separately, Ripple partnered with Aviva Investors to tokenize funds on XRPL. Those developments sit alongside the network’s institutional feature set and point to continued activity around regulated issuance and market structure.

Retail traders can still use XRPL’s open DEX without change. At the same time, the Permissioned DEX opens a separate segment of on-chain liquidity for institutions that previously relied on private or centralized systems.

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Selig says the CFTC holds exclusive power over event contracts and will litigate.

States argue sports-based markets breach betting laws as the Nevada ruling backs them.

Crypto leaders cheer the reset, while a senator and Spencer Cox warn of gambling harm.

U.S. Commodity Futures Trading Commission Chairman Mike Selig issued a sharp warning to state governments challenging prediction markets such as Polymarket and Kalshi. In a video posted Tuesday on X, he declared that the CFTC holds exclusive jurisdiction over these derivative markets and vowed to defend that authority in court. 

His statement comes as several states pursue legal action against event-contract platforms, arguing they violate state sports-betting laws. The dispute now places federal regulators, state officials, and major crypto firms in a growing legal clash.

I have some big news to announce… pic.twitter.com/3OBNTaOnIL

— Mike Selig (@ChairmanSelig) February 17, 2026

Federal Authority Versus State Laws

Selig said the CFTC has regulated these markets for more than two decades. He argued that prediction markets serve public functions by allowing Americans to hedge risks such as temperature shifts and energy price spikes. He also said they act as a check on news media and information streams.

At the same time, several states have targeted event-contract platforms. Nevada, Massachusetts, and New York have accused companies of breaching state sports-betting laws. A federal judge in Nevada ruled in November that state authorities were correct and that the contracts did not fall under CFTC oversight. That ruling remains under appeal.

Meanwhile, Coinbase has entered the dispute. The crypto exchange is suing Connecticut, Illinois, and Michigan over efforts to regulate sports contracts as gaming activities. As this legal fight widens, Selig insists that only the CFTC can regulate these derivatives markets.

Political Shifts and Industry Moves

Selig’s stance marks a shift from the agency’s earlier approach. Before President Donald Trump returned to Washington, the CFTC fought against some political betting contracts. The agency had argued that such contracts were unlawful and contrary to the public interest.

Courts later ruled against the CFTC in its dispute with Kalshi. After leadership changes under Trump’s administration, the agency dropped its legal fight. In early 2025, Don Trump Jr. joined Kalshi as a strategic adviser. In August, he also joined Polymarket’s advisory board.

In October, Trump Media & Technology Group, which owns Truth Social, announced plans to enter the prediction markets business. Within weeks of his Senate confirmation, Selig said the CFTC would reset its approach. He pledged to advance new rulemaking grounded in what he described as a rational interpretation of the Commodity Exchange Act that promotes responsible innovation.

Related: US Senate Confirms Michael Selig, Travis Hill to Lead CFTC and FDIC

State Resistance and Political Reaction

Utah Governor Spencer Cox responded directly to Selig’s statement. On X, he questioned the CFTC’s authority over what he described as the “derivative market” of sports events, including LeBron James rebounds. He called prediction markets gambling and said they harm families, especially young men.

Although Utah has not led major lawsuits, lawmakers there are considering measures to target certain sports contracts. Cox said he would use every power available to challenge federal claims in court. He also wrote in a Wall Street Journal essay that the agency would not sit idle while states seek prohibitions on these products.

Crypto executives welcomed Selig’s remarks. Tyler Winklevoss, co-founder of Gemini, said such leadership would help position the United States as a global hub for crypto and markets. On the other hand, Senator Elizabeth Warren criticized the move. She said the CFTC should focus on safeguarding derivatives markets rather than limiting state authority over gambling regulation.

As federal and state officials prepare for further legal battles, one question now looms: who ultimately controls the future of prediction markets in the United States?

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