A Hacker Stole $320 Million from Bitcoin’s Liquid Network and Then Returned Most of It
Attackers exploited a validator bug in Blockstream’s Liquid Network and drained about $320 million in Bitcoin, then returned roughly 85% of the stolen funds. The US Senate scheduled a September 15 cloture vote on the CLARITY Act after Trump agreed to new bipartisan ethics provisions. Nasdaq invested $100 million in Kraken’s parent company at a $21 billion valuation to push into tokenized stock trading. Revolut suffered a data breach exposing customer passport scans and complete Bitcoin transaction histories. Germany proposed ending its tax-free crypto holding period with a flat 25% capital gains tax from 2027. Here is a clear look at the most important crypto and tech stories making headlines.
A Hacker Drained $320 Million from Bitcoin’s Liquid Network and Returned Most of It
Attackers exploited a validator bug in Blockstream’s Liquid Network Bitcoin sidechain and drained approximately $320 million, before returning roughly 85% of the stolen funds.
Returning 85% of a $320 million theft is unusual enough to raise questions about motive. The most common explanation for voluntary returns at this scale is that the attacker realized the funds were traceable, that legal exposure was mounting, or that they wanted to negotiate a whitehat bounty on the remaining 15%. Whatever the reason, $48 million was kept. Liquid Network is designed to allow faster Bitcoin transfers between exchanges and institutions, and a validator bug at that level of infrastructure is a serious failure that will force a complete security review of how the sidechain’s consensus mechanism works.
Trump Agreed to Ethics Provisions in the CLARITY Act as the Senate Set a September 15 Cloture Vote
Trump agreed to new bipartisan ethics provisions added to the CLARITY Act, clearing the way for the Senate to schedule a September 15 cloture vote on the crypto market structure bill.
The ethics provisions were the last major sticking point for senators who were uncomfortable voting for crypto legislation while the president’s family was earning hundreds of millions from a stablecoin. Trump agreeing to the provisions removes that objection and gives bipartisan cover to senators who needed it. A September 15 cloture vote does not guarantee passage, but it is the furthest the CLARITY Act has advanced in the legislative process and puts a final vote within realistic reach for the first time.
The SEC Proposed a Tailored Offering Framework for Crypto Investment Contracts
The US SEC proposed a new “Regulation Crypto Assets” rule creating a bespoke offering framework for crypto investment contracts, distinct from existing securities registration requirements.
The SEC building a framework specifically for crypto rather than forcing token sales into 1930s securities law is a structural shift in how the regulator approaches the industry. A tailored framework means crypto projects can raise capital through a process designed for how they actually work, rather than trying to satisfy disclosure requirements built for traditional stock offerings. The details of what qualifies and what the ongoing obligations are will determine whether this is genuinely workable or just another compliance maze with different labels.
Bitcoin ETFs Lost $462.7 Million Over Four Days as Bond Yields and Oil Prices Surged
US spot Bitcoin ETFs recorded approximately $462.7 million in net outflows over four consecutive days as Bitcoin fell toward $77,000, driven by a broader selloff tied to surging bond yields and rising oil prices.
$462.7 million leaving Bitcoin ETFs in four days during a macro-driven selloff confirms that institutional Bitcoin holders are treating it like a risk asset, not a safe haven. When bond yields surge, money moves toward fixed income and out of equities and crypto simultaneously. The fact that Bitcoin ETFs were the only fund category posting outflows while everything else turned green suggests Bitcoin is being used as a liquidity source when institutional portfolios need to raise cash quickly.
37 European Banks Launched a MiCA-Compliant Euro Stablecoin on Ethereum
A consortium of 37 European banks moved ahead with Qivalis, a MiCA-compliant euro stablecoin to be issued on Ethereum.
37 banks building a shared euro stablecoin on Ethereum is the European banking sector’s answer to USDT and USDC dominance. A MiCA-compliant euro stablecoin backed by a consortium of regulated banks addresses the two biggest institutional objections to existing stablecoins: regulatory status and counterparty risk. If Qivalis gains adoption, it could shift a meaningful portion of European on-chain transaction volume away from dollar-denominated stablecoins toward a euro-native alternative with full regulatory backing.
Circle Acquired Cross-Border Payments Firm Tazapay for $400 Million
Circle agreed to acquire Tazapay, a cross-border payments company, for $400 million to expand its stablecoin payment infrastructure into new markets.
Circle paying $400 million for a cross-border payments firm is a direct move into the remittance and B2B international payments market. Tazapay operates in corridors across Asia and emerging markets where traditional wire transfers are slow and expensive. Plugging those corridors into Circle’s USDC infrastructure means stablecoin-powered cross-border payments become available to businesses in markets that currently rely on correspondent banking. It is one of the clearest use cases for stablecoins and Circle is buying its way in rather than building from scratch.
Nasdaq Invested $100 Million in Kraken at a $21 Billion Valuation to Push into Tokenized Stocks
Nasdaq invested $100 million in Kraken’s parent company Payward at a $21 billion valuation, with the investment aimed at accelerating a joint push into tokenized stock trading.
Nasdaq putting $100 million into a crypto exchange it could theoretically compete with is a sign that the world’s largest tech-focused stock exchange has concluded tokenized equities are coming and it would rather be inside that transition than fight it. A $21 billion valuation for Kraken is also a significant signal about where crypto exchange infrastructure is being priced by institutional investors right now. The tokenized stock partnership means Nasdaq’s listed companies could eventually trade on crypto rails with Kraken as the execution venue.
Revolut Exposed Passport Scans and Bitcoin Transaction Histories After a Spoofed Government Email
Revolut suffered a data breach that exposed customer passport scans, home addresses, and complete Bitcoin transaction histories after a spoofed government email successfully passed the company’s verification checks.
A spoofed government email bypassing Revolut’s verification is a social engineering failure, not a technical one. The attacker did not crack encryption or exploit a software bug. They sent a convincing fake email and Revolut’s process failed to catch it. The combination of passport scans, addresses, and complete Bitcoin transaction histories in a single breach gives attackers everything they need for identity theft, targeted phishing, and physical security risks for customers known to hold crypto. For a company with tens of millions of users and regulatory licenses across multiple jurisdictions, this is a serious compliance failure.
Jack Dorsey’s Block Applied for a National Bank Charter to Custody Bitcoin and Stablecoins
Jack Dorsey’s Block filed an application with the US Office of the Comptroller of the Currency for a national trust bank charter to custody Bitcoin and stablecoins.
A national trust bank charter from the OCC gives Block federal banking status, which means it can offer custody services in all 50 states under a single federal license rather than navigating 50 separate state money transmitter regimes. For institutional clients who need a federally regulated custodian, this matters significantly. It also puts Block directly in competition with Citi, BNY Mellon, and other banks that have been building or announcing crypto custody platforms over the past year.
Germany Proposed Ending Tax-Free Crypto Gains with a Flat 25% Capital Gains Tax from 2027
Germany’s finance ministry drafted a bill proposing to eliminate the existing tax-free treatment of Bitcoin held for more than one year, replacing it with a flat 25% capital gains tax effective from 2027.
Germany’s one-year tax-free holding rule has been one of the most favorable crypto tax treatments in any major economy and has influenced how European investors structure their holdings. Replacing it with a flat 25% tax removes a significant incentive for long-term holding and brings Germany’s crypto tax treatment in line with how it taxes other investment income. For German investors sitting on large unrealized gains, 2026 becomes the last year to sell tax-free, which could drive a wave of selling before the law takes effect.
Wrapping Up
This week had a $320 million hack where the attacker returned most of the money, a Senate cloture vote on the CLARITY Act within reach, Nasdaq buying into Kraken, 37 European banks launching a euro stablecoin, and Germany proposing to end tax-free Bitcoin gains. Revolut’s breach exposed passport scans and transaction histories through a spoofed email. Bitcoin ETFs bled $462 million over four days as bond yields pulled institutional money toward fixed income. Jack Dorsey applied for a federal bank charter. The legislative, institutional, and regulatory pieces are moving faster than at any point in the industry’s history, while the security and compliance failures keep arriving at the same pace they always have.
Disclaimer: Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info
