Bitcoin has fallen roughly 44% from its October peak, and while the drawdown isn't crypto's deepest ever on a percentage basis, Bloomberg's Odd Lots newsletter lays out a case that this is the industry's worst winter yet. The macro backdrop was supposed to favor Bitcoin: public confidence in the dollar is shaky, the Trump administration has been crypto-friendly, and fiat currencies are under perceived stress globally. Yet gold, not Bitcoin, has been the safe haven of choice.

The "we're so early" narrative is dead -- crypto ETFs exist, barriers to entry are zero, and the online community that once rallied holders through downturns has largely hollowed out. Institutional adoption arrived but hasn't lifted existing tokens like ETH or SOL; Wall Street cares about stablecoins and tokenization, not the coins themselves. AI is pulling both talent and miners toward data centers. Quantum computing advances threaten Bitcoin's encryption. And MicroStrategy and other Bitcoin treasury companies, once steady buyers during the bull run, are now large holders who may eventually become forced sellers.

October saw Bitcoin reach $123,742. But less than four months later, "The world's largest cryptocurrency slipped below $76,000..." Bloomberg reports, "dropping about 40% from its 2025 peak..."

"What began as a sharp crash in October has morphed into something more corrosive: a selloff shaped not by panic, but by absence of buyers, momentum and belief." Unlike the October drawdown, there's been no obvious spark, cascading liquidations or systemic shock — just fading demand, thinning liquidity, and a token that's untethered to broader markets. Bitcoin has failed to respond to geopolitical stress, dollar weakness, or risk rallies. Even during gold and silver's violent swings in recent weeks, crypto saw no rotation. Bitcoin fell nearly 11% in January, marking its fourth straight monthly decline — the longest losing streak since 2018, during the crash that followed the 2017 boom in initial coin offerings...

Even more striking than the drop itself is the relative lack of optimism around it on social media. In a space known for relentless bravado and "number go up" memes, Bitcoin's slide has been met with little cheerleading or dip-buying fanfare... [Despite legislative wins and some institutional investments] Many investors say that optimism was front-run. Prices rallied early — and then stalled. Meanwhile, spot ETFs continue to bleed, a sign of weakening conviction among mainstream buyers — many of whom are now underwater after buying at higher prices.
On Thursday, Bitcoin closed at 88,228. By Sunday it had plunged another 13%, to $76,790...

JPMorgan Chase CEO Jamie Dimon interrupted a conversation between Coinbase chief Brian Armstrong and former U.K. Prime Minister Tony Blair at Davos last week to tell Armstrong "You are full of s---," his index finger pointed squarely at Armstrong's face. Dimon told Armstrong to stop lying on TV, according to WSJ.

Armstrong had appeared on business programs earlier that week accusing banks of trying to sabotage the Clarity Act, legislation that would create a new regulatory framework for digital assets. He also accused banks of lending out customers' deposits "without their permission essentially."

The fight centers on stablecoin "rewards" -- regular payouts, say 3.5%, that exchanges like Coinbase offer for holding digital tokens. Banks typically offer under 0.1% on checking accounts and worry consumers will shift their money in droves to crypto. Other bank CEOs were similarly cold at Davos. Bank of America's Brian Moynihan gave Armstrong a 30-minute meeting and told him "If you want to be a bank, just be a bank." Citigroup's Jane Fraser offered less than a minute. Wells Fargo's Charlie Scharf said there was nothing for them to talk about. Armstrong had pulled support from a draft of the Clarity Act on January 14, posting on X that Coinbase would "rather have no bill than a bad bill."

An anonymous reader shared this article from the blog Linuxiac In a blog post, Alan Pope, a longtime Ubuntu community figure and former Canonical employee who remains an active Snap publisher... [warns of] a persistent campaign of malicious snaps impersonating cryptocurrency wallet applications. These fake apps typically mimic well-known projects such as Exodus, Ledger Live, or Trust Wallet, prompting users to enter wallet recovery phrases, which are then transmitted to attackers, resulting in drained funds.
The perpetrators had originally used similar-looking characters from other alphabets to mimic other app listings, then began uploading "revisions" to other innocuous-seeming (approved) apps that would transform their original listing into that of a fake crypto wallet app.

But now they're re-registering expired domains to take over existing Snap Store accounts, which Pope calls "a significant escalation..." I worked for Canonical between 2011 and 2021 as an Engineering Manager, Community Manager, and Developer Advocate. I was a strong advocate for snap packages and the Snap Store. While I left the company nearly five years ago, I still maintain nearly 50 packages in the Snap Store, with thousands of users... Personally, I want the Snap Store to be successful, and for users to be confident that the packages they install are trustworthy and safe.

Currently, that confidence isn't warranted, which is a problem for desktop Linux users who install snap packages. I report every bad snap I encounter, and I know other security professionals do the same — even though doing so results in no action for days sometimes... To be clear: none of this should be seen as an attack on the Snap Store, Canonical, or the engineers working on these problems. I'm raising awareness of an issue that exists, because I want it fixed... But pretending there isn't a problem helps nobody.

Cointelegraph, once one of the most-visited cryptocurrency news sites, has seen its monthly traffic plummet from roughly 8 million visits to 1.4 million -- an 80% drop in three months -- after Google issued a manual penalty in October 2025 for the outlet's partnership with a blackhat SEO firm that used Cointelegraph's domain authority to promote affiliate links to offshore casinos and betting platforms.

The CEO, who had no prior media experience, proceeded despite warnings from Google earlier in 2025 and repeated objections from the outlet's three most senior editorial staff members throughout the year. The penalty removed Cointelegraph from Google News, Discover and search results entirely; a search for "Cointelegraph" now returns CoinDesk as the top result. Jon Rice, the former editor-in-chief, resigned on December 31st and described the situation as an "existential threat to business."

An anonymous reader shared this report from CNBC: Led by Texas and New Hampshire, U.S. states across the national map, both red and blue in political stripes, are developing bitcoin strategic reserves and bringing cryptocurrencies onto their books through additional state finance and budgeting measures. Texas recently became the first state to purchase bitcoin after a legislative effort that began in 2024, but numerous states have joined the "Reserve Race" to pass legislation that will allow them to ultimately buy cryptocurrencies. New Hampshire passed its crypto strategic reserve law last May, even before Texas, giving the state treasurer the authority to invest up to 5% of the state funds in crypto ETFs, though precious metals such as gold are also authorized for purchase. Arizona passed similar legislation, while Massachusetts, Ohio, and South Dakota have legislation at various stages of committee review...

Similarities in the actions taken across states to date include include authorizing the state treasurer or other investment official to allow the investment of a limited amount of public funds in crypto and building out the governance structure needed to invest in crypto... [New Hampshire] became the first state to approve the issuance of a bitcoin-backed municipal bond last November, a $100 million issuance that would mark the first time cryptocurrency is used as collateral in the U.S. municipal bond market. The deal has not taken place yet, though plans are for the issuance to occur this year... "What's different here is it's bitcoin rather than taxpayer dollars as the collateral," [said University of Chicago public policy professor Justin Marlowe]. In numerous states, including, Colorada, Utah, and Louisiana,crypto is now accepted as payment for taxes and other state business...

"For many in the state/local investing industry, crypto-backed assets are still far too speculative and volatile for public money," Marlowe said. "But others, and I think there's a sort of generational shift in the works, see it as a reasonable store of value that is actually stronger on many other public sector values like transparency and asset integrity," he added.
Public policy professor Marlowe "sees the state-level trend as largely one of signaling at present," according to the article. (Marlowe says "If you're a governor and you want to broadcast that you are amenable to innovative business development in the digital economy, these are relatively low-cost, low-risk ways to send that signal.") But the bigger steps may reflect how crypto advocates have increasing political power in the states. The article notes that the cryptocurrency industry was the largest corporate donor in a U.S. election cycle in 2024, "with support given to candidates on both sides."

"It is already amassing a war chest for the 2026 midterms."

=[ "More than half of all cryptocurrencies ever launched are now defunct," reports CoinDesk, citing a new analysis by cryptocurrency data aggregator CoinGecko.

And most of those failures occurred in 2025: The study looked at token listings on GeckoTerminal between mid-2021 and the end of 2025. Of the nearly 20.2 million tokens that entered the market during that period, 53.2% are no longer actively traded. A staggering 11.6 million of those failures happened in 2025 alone — accounting for 86.3% of all token deaths over the past five years.

One key driver behind the surge in dead tokens was the rise of low-effort memecoins and experimental projects launched via crypto launchpads like pump.fun, CoinGecko analyst Shaun Paul Lee said. These platforms lowered the barrier to entry for token creation, leading to a wave of speculative assets with little or no development backing. Many of these tokens never made it past a handful of trades before disappearing.

An anonymous reader quotes a report from The Verge: Betterment, a financial app, sent a sketchy-looking notification on Friday asking users to send $10,000 to Bitcoin and Ethereum crypto wallets and promising to "triple your crypto," according to a thread on Reddit. The Betterment account says in an X thread that this was an "unauthorized message" that was sent via a "third-party system." TechCrunch has since confirmed that an undisclosed number of Betterment's customers have had their personal information accessed. "The company said customer names, email and postal addresses, phone numbers, and dates of birth were compromised in the attack," reports TechCrunch.

Betterment said it detected the attack on the same day and "immediately revoked the unauthorized access and launched a comprehensive investigation, which is ongoing." The fintech firm also said it has reached out to the customers targeted by the hackers and "advised them to disregard the message."

"Our ongoing investigation has continued to demonstrate that no customer accounts were accessed and that no passwords or other log-in credentials were compromised," Betterment wrote in the email.

Iran is offering to sell advanced weapons systems including ballistic missiles, drones and warships to foreign governments for cryptocurrency, in a bid to use digital assets to bypass western financial controls. From a report: Iran's Ministry of Defence Export Center, known as Mindex, says it is prepared to negotiate military contracts that allow payment in digital currencies, as well as through barter arrangements and Iranian rials, according to promotional documents and payment terms analysed by the Financial Times.

The offer, introduced during the past year, appears to mark one of the first known instances in which a nation state has publicly indicated its willingness to accept cryptocurrency as payment for the export of strategic military hardware. Mindex, a state-run body responsible for Iran's overseas defence sales, says it has client relationships with 35 countries and advertises a catalogue of weapons that includes Emad ballistic missiles, Shahed drones, Shahid Soleimani-class warships and short-range air defence systems.

Tony Isaac shares a report from CNN: President Donald Trump's social media and crypto company is making a huge bet on a far different industry -- nuclear fusion, a potentially lucrative albeit commercially unproven energy technology that could help power a suddenly electricity-starved economy. Trump Media and Technology Group Thursday announced a surprise merger with TAE Technologies, in an all-stock deal valued at more than $6 billion that would create one of the first publicly traded fusion companies. News of the deal shares of Trump Media (DJT) 35% higher in early trading Thursday.

After the deal closes, shareholders of Trump Media and TAE would own about 50% of the combined entity. The combined companies plan to begin construction as soon as next year of the world's first fusion reaction that could produce electricity on utility scale, rather than just in laboratory settings. The combination with TMTG could give TAE political clout. But it could also make it more politically controversial, particularly if it looks to receive any kind of federal government support, such as grants, low-interest loans or permitting approvals.

It could also give TAE access to capital that it needs. Under terms of the deal, TMTG would provide $300 million in cash for TAE's plans. But that is likely a fraction of the cash available from some of TAE's current investors, such as Google parent company Alphabet, as well as its bevy of private equity investors. But that $300 million is only a fraction of the money that TAE needs, or expects to be able to access, once it has become a public company with this deal. Staying a private company, even with deep pocketed investors, is no longer sufficient TAE CEO Michl Binderbauer told CNN Thursday. "It's a multi-billion dollar undertaking," said Binderbauer. "The velocity you can get the capital is differentiating. If I raise $2 billion over five years I can't built the plant sufficiently fast." He said the company has raised about $1.3 billion over the course of its 25-year history.

A critical React vulnerability (CVE-2025-55182) is being actively exploited at scale by Chinese, Iranian, North Korean, and criminal groups to gain remote code execution, deploy backdoors, and mine crypto. The Register reports: React maintainers disclosed the critical bug on December 3, and exploitation began almost immediately. According to Amazon's threat intel team, Chinese government crews, including Earth Lamia and Jackpot Panda, started battering the security hole within hours of its disclosure. Palo Alto Networks' Unit 42 responders have put the victim count at more than 50 organizations across multiple sectors, with attackers from North Korea also abusing the flaw.

Google, in a late Friday report, said at least five other suspected PRC spy groups also exploited React2Shell, along with criminals who deployed XMRig for illicit cryptocurrency mining, and "Iran-nexus actors," although the report doesn't provide any additional details about who the Iran-linked groups are and what they are doing after exploitation. "GTIG has also observed numerous discussions regarding CVE-2025-55182 in underground forums, including threads in which threat actors have shared links to scanning tools, proof-of-concept (PoC) code, and their experiences using these tools," the researchers wrote.

An anonymous reader quotes a report from the Wall Street Journal: JPMorgan Chase is joining the list of traditional financial firms seeking to bring blockchain technology to an investing staple: the money-market fund. The banking giant's $4 trillion asset-management arm is rolling out its first tokenized money-market fund on the Ethereum blockchain. JPMorgan will seed the fund with $100 million of its own capital, and then open it to outside investors on Tuesday. Called My OnChain Net Yield Fund, or "MONY," the private fund is supported by JPMorgan's tokenization platform, Kinexys Digital Assets, and will be open to qualified investors, or individuals with at least $5 million in investments and institutions with a minimum of $25 million. The fund has a $1 million investment minimum.

Wall Street has waded deeper into tokenization since the passage of the Genius Act earlier this year. The landmark measure, which establishes a regulatory framework for tokenized dollars known as stablecoins, has unleashed a wave of efforts to tokenize everything from stocks and bonds to funds and real assets. "There is a massive amount of interest from clients around tokenization," said John Donohue, head of global liquidity at J.P. Morgan Asset Management. "And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain."

Carl Rinsch, the director behind the 2013 Keanu Reeves film "47 Ronin," has been found guilty of defrauding Netflix out of $11 million that was meant to fund a science fiction series called "Conquest," which the streaming company ultimately cancelled in 2021 after Rinsch failed to meet any production milestones. A jury in the Southern District of New York convicted the 48-year-old on seven charges: one count each of wire fraud and money laundering, and five counts of transacting in illicitly obtained property.

Prosecutors alleged that Rinsch funneled the $11 million through multiple bank accounts into a personal brokerage account, lost more than half of it on securities within two months, and then began speculating on cryptocurrency. Court records show he also spent $2.4 million on a Ferrari and five Rolls Royces, $3.3 million on furniture and antiques, and $387,000 on a Swiss watch. Netflix has written off $55 million in total and has not recovered any funds. Rinsch faces up to 90 years in prison and is scheduled for sentencing on April 17, 2026.

An anonymous reader quotes a report from Reuters: Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.

Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents. "I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.

President Trump signed an executive order establishing a single federal AI regulatory framework that preempts state-level rules, aiming to centralize oversight of the rapidly growing AI industry. "The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to preempt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry," notes CNBC.

Developing...

An anonymous reader quotes a report from the Guardian: A coalition of more than 230 environmental groups has demanded a national moratorium on new datacenters in the U.S., the latest salvo in a growing backlash to a booming artificial intelligence industry that has been blamed for escalating electricity bills and worsening the climate crisis. The green groups, including Greenpeace, Friends of the Earth, Food & Water Watch and dozens of local organizations, have urged members of Congress to halt the proliferation of energy-hungry datacenters, accusing them of causing planet-heating emissions, sucking up vast amounts of water and exacerbating electricity bill increases that have hit Americans this year.

"The rapid, largely unregulated rise of datacenters to fuel the AI and crypto frenzy is disrupting communities across the country and threatening Americans' economic, environmental, climate and water security," the letter states, adding that approval of new data centers should be paused until new regulations are put in place. The push comes amid a growing revolt against moves by companies such as Meta, Google and Open AI to plow hundreds of billions of dollars into new datacenters, primarily to meet the huge computing demands of AI. At least 16 datacenter projects, worth a combined $64 billion, have been blocked or delayed due to local opposition to rising electricity costs. The facilities' need for huge amounts of water to cool down equipment has also proved controversial, particularly in drier areas where supplies are scarce. [...]

At the current rate of growth, datacenters could add up to 44m tons of carbon dioxide to the atmosphere by 2030, equivalent to putting an extra 10m cars on to the road and exacerbating a climate crisis that is already spurring extreme weather disasters and ripping apart the fabric of the American insurance market. But it is the impact upon power bills, rather than the climate crisis, that is causing anguish for most voters, acknowledged Emily Wurth, managing director of organizing at Food & Water Watch, the group behind the letter to lawmakers. "I've been amazed by the groundswell of grassroots, bipartisan opposition to this, in all types of communities across the US," said Wurth. "Everyone is affected by this, the opposition has been across the political spectrum. A lot of people don't see the benefits coming from AI and feel they will be paying for it with their energy bills and water."

"It's an important talking point. We've seen outrageous utility price rises across the country and we are going to lean into this. Prices are going up across the board and this is something Americans really do care about."

An investigation has revealed how stablecoins -- cryptocurrencies pegged to the US dollar that exist largely beyond traditional financial oversight -- have become a practical tool for criminals and sanctioned individuals to move funds across borders almost instantly and convert them back into spendable money, often without detection.

A Chainalysis report from February estimated that up to $25 billion in illicit transactions involved stablecoins last year. A New York Times reporter tested the system by converting $40 cash at a crypto ATM in Weehawken, New Jersey, into stablecoins and then using a Telegram bot to generate a Visa payment card without any identity verification. The card-issuing service, WantToPay, is incorporated in Hong Kong and led by a Russian entrepreneur in Thailand; it advertises to Russians blocked by US sanctions. Britain last month arrested members of a billion-dollar money laundering network that had purchased a bank in Kyrgyzstan to convert proceeds from drug trafficking and human trafficking into Tether, the most popular stablecoin.

Further reading: China's Central Bank Flags Money Laundering and Fraud Concerns With Stablecoins.

The UK government plans to ban political donations made in cryptocurrency over fears of anonymity, foreign influence, and traceability issues, though the ban won't be ready in time for the upcoming elections bill. The Guardian reports: The government's ambition to ban crypto donations will be a blow to Nigel Farage's Reform UK party, which became the first to accept contributions in digital currency this year. It is believed to have received its first registrable donations in cryptocurrency this autumn and the party has set up its own crypto portal to receive contributions, saying it is subject to "enhanced" checks. Government sources have said ministers believe cryptocurrency donations to be a problem, as they are difficult to trace and could be exploited by foreign powers or criminals.

Pat McFadden, then a Cabinet Office minister, first raised the idea in July, saying: "I definitely think it is something that the Electoral Commission should be considering. I think that it's very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation." The Electoral Commission provides guidance on crypto donations but ministers accept any ban would probably have to come from the government through legislation. "Crypto donations present real risks to our democracy," said Susan Hawley, the executive director of Spotlight on Corruption. "We know that bad actors like Russia use crypto to undermine and interfere in democracies globally, while the difficulties involved in tracing the true source of transactions means that British voters may not know everyone who's funding the parties they vote for."

Longtime Slashdot reader krouic shares a report from Europol: From November 24-28, 2025, Europol supported an action week conducted by law enforcement authorities from Switzerland and Germany in Zurich, Switzerland. The operation focused on taking down the illegal cryptocurrency mixing service Cryptomixer, which is suspected of facilitating cybercrime and money laundering. Three servers were seized in Switzerland, along with the cryptomixer.io domain. The operation resulted in the confiscation of over 12 terabytes of data and more than EUR 25 million worth of Bitcoin. After the illegal service was taken over and shut down, law enforcement placed a seizure banner on the website. Authorities allege that the mixing service laundered over 1.3 billion euros in bitcoin since 2016.

China's central bank has flagged stablecoins as a specific concern in its latest push against virtual currencies, warning that the tokens fail to meet requirements for customer identification and anti-money-laundering controls and risk being used for fraud, money laundering, and unauthorized cross-border fund transfers.

The People's Bank of China released a statement Saturday following a Friday meeting on virtual currency regulation, saying crypto speculation has recently increased due to various factors and now presents new challenges for risk control. Virtual currencies do not hold the same legal status as fiat currency and cannot be used as legal tender, the bank said, adding that all virtual currency-related business activities are "illegal financial activities."

China banned cryptocurrency trading in 2021. The bank said it will intensify efforts to combat illegal financial activities to maintain economic and financial stability. In October, PBOC Governor Pan Gongsheng said the central bank would closely track and evaluate the development of overseas stablecoins.