Cryptopolitan

Elon Musk has alleged that Jeffrey Epstein launched a campaign to short Tesla and persuaded Bill Gates to take a 1% short position when the company’s market cap stood at about $40 billion. 

The allegation comes as the US Department of Justice released roughly three million pages of Epstein-related records, naming several billionaires, including Musk and Gates. The documents viewed by Cryptopolitan show email exchanges between Elon Musk and Jeffrey Epstein dating back to 2012 and 2013. 

While there has been no confirmation that any such visit occurred, the messages contradict Musk’s long-standing insistence that he didn’t know Epstein well. However, to some extent, the files favored him as they revealed that SpaceX servers began rejecting Epstein’s emails in 2014.

Musk later confirmed on X that he cut off communication. 

Yup 😂

That really made him upset. After I ghosted him, Epstein went on a massive campaign to short Tesla and got Gates to short 1% of Tesla stock when the market cap was $40B. As far as I know, Gates still has the short open.

Someone should ask him how that’s working out 🤗

— Elon Musk (@elonmusk) February 16, 2026

Responding to a user who claimed Epstein had been aggressively sending invitations, Musk wrote, “Yup […] That really made him upset. After I ghosted him, Epstein went on a massive campaign to short Tesla and got Gates to short 1% of Tesla stock …” 

Musk calls out Gates for taking Epstein’s advice to short Tesla 

Musk weighed in on the post, once again bringing attention to the 1% short position of the company’s total shares outstanding that he claimed Gates has held against Tesla for the past eight years. “As far as I know, Gates still has the short open. Someone should ask him how that’s working out,” Musk wrote.

In December, Musk claimed that the position has since cost the Microsoft co-founder as much as $10 billion, as Tesla shares soared over the past few years. Tesla shares most recently closed at $417.44, with the stock up 17.3% over the past year and 100.4% over the past three years. 

Several other institutional investors have changed their positions in TSLA. Vanguard Group Inc. increased its stake in Tesla by 0.4% during the third quarter. Geode Capital Management LLC grew its holdings in shares of Tesla by 2.0% during the 2nd quarter. 

Additionally, Norges Bank purchased a new position in Tesla in the second quarter valued at approximately $11,839,824,000. Legal & General Group Plc lifted its position in Tesla by 5.9% during the second quarter.  Amundi also increased its Tesla shareholding by 20.4% in the second quarter.

Meanwhile, Tigress Financial analyst Ivan Feinseth initiated coverage with a Buy rating and $550 price target, implying 31.9% upside potential. On the other hand, Morgan Stanley analyst Andrew Percoco maintained his Hold rating and $415 price target, suggesting that shares are fully valued at current levels.

Epstein advises on the structure of Tesla

A batch of DOJ documents shows that Epstein was involved with Tesla in 2018. Musk posted on social media that he was “considering taking Tesla private” in a move that never came to fruition. 

One of the CEO’s surrogates was sounding out Epstein for advice on financing the deal and potential board members for a reorganized Tesla. They also went back and forth over Musk’s leadership qualities.

That year, Musk was having a rough time. His companies were struggling, and his behavior on social media was becoming increasingly unpredictable, which seemed to be hurting his public image.

Musk took counsel from the high-powered former lobbyist and corporate consultant Juleanna Glover as he sought to limit blowback. It was Glover who would later backchannel with Epstein about a plan to take Tesla private.

The idea of buying Tesla was sketchily outlined in another of Musk’s now-infamous tweets. “Am considering taking Tesla private at $420,” he posted in August. This tweet caused a backlash because he had not secured those funds.

On September 27, the US SEC filed fraud charges against Musk, alleging “securities fraud for a series of false and misleading tweets.” 

Musk quickly settled to the tune of a $20 million fine, with Tesla paying an equal penalty, and stepped down as chairman of the electric vehicle company. In the weeks between Musk’s tweet and the SEC charge, Glover was working behind the scenes to make the deal a reality and sought Epstein’s counsel.

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European stocks ended the day with gains even though Pinewood Technologies collapsed in brutal fashion.

Traders across Europe spent the session reacting to the key points from the Munich Security Conference, and that steady flow of policy talk kept broad indexes supported. The STOXX Europe 600 finished at 618.56 after rising 0.14%, even as sector moves were all over the place.

Major indexes across Europe printed mixed numbers. The CAC 40 closed at 8,316.50 after a gain of 4.76. The FTSE 100 ended at 10,473.69 after a climb of 27.34. The IBEX 35 hit 17,848.00 with a strong jump of 175.60.

The FTSE MIB slipped 11.42 to 45,419.20. The DAX fell 102.38 to 24,812.50.

Why did Pinewood’s stock crash?

Shares in Pinewood Technologies fell almost one-third after Apax Partners dumped its £575 million offer. The company had said that it walked away because of “prevailing challenging market conditions”.

That remark hit the stock hard, and the shares dropped to just under £3. Even with that mess, broader Europe held firm because traders were more focused on regional themes than one troubled UK software group. NatWest Group gained 4.7% after it kicked off a £750 million share buyback. That rise helped offset the Pinewood drop inside UK trading.

Mining stock Rio Tinto fell 1% after it stopped work at its Simandou iron ore site in Guinea due to a fatal accident at the SimFer project. BHP Group dropped 0.7% ahead of earnings. Glencore slipped a little over 0.3%. Fresnillo was down 1%. Anglo American eased 0.2%.

The FTSE Industrial Metals and Mining Index was seen down almost 0.6%, which pulled on sentiment but did not erase the gains across Europe, per data from TradingView. Indexes from the rest of the region showed the same uneven tone.

The SMI closed at 13,656 after a gain of 55.33. The HEX printed 12,764.17 with a rise of 63.58. The AEX slipped 0.72. The BEL 20 fell 15.13. Portugal’s PSI20 closed at 9,058.6 after a gain of 59.65. Sweden’s OMXS30 was up 2.047. Denmark’s OMXC25 fell 8.88. The STOXX600 reading of 618.52 showed a gain of 0.82.

Meanwhile over in Asia, Japan’s Nikkei rose 0.2% after GDP growth came in at 0.2% annualized for the December quarter instead of the expected 1.6%. Trading stayed thin with China, South Korea, and Taiwan closed for the Lunar New Year holiday.

US markets were closed for Presidents’ Day, so Europe carried the main flow of global price action.

Currency moves were mild. USD/CHF moved to 0.769 after a rise of 0.002. EUR/GBP stayed at 0.869. EUR/USD slipped 0.002 to 1.185. EUR/JPY rose 0.76 to 181.9. GBP/USD slipped 0.002 to 1.363. EUR/CHF moved to 0.912 after a rise of 0.001. Bond yields barely did anything, as the UK 10-year sat at 4.401 after a tiny drop of 0.001.

The Bund 10-year was steady at 2.756. Italy’s 10-year traded at 3.385 after a 0.01 move. France’s 10-year stood at 3.344 after a tiny gain of 0.001.

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TRX traded at a market average price of $0.28, down 0.3% as Tron Inc. acquired an additional 177,925 TRX tokens. The acquisition raised its total treasury holdings to more than 681.9 million TRX. 

Tronscan data revealed that Tron has been purchasing TRX tokens daily. The company has purchased 179,649 TRX, 179,057 TRX, 176,558 TRX, 177,925 TRX, and 181,346 TRX  over the past several days. So far, the company has added about 3,656,868 TRX since January 22.

Tron treasury strategy boosts TRX token market performance

Tron Inc. announced it aims to profit from rising blockchain activity, wider network adoption, and growing institutional interest in the TRON ecosystem. The company revealed in Form 8-K filings with the SEC on February 12  that it plans to expand its holdings by purchasing roughly $50,000 worth of TRX each day for 360 days in a row.

Tron Inc. (NASDAQ: TRON) acquired 177,925 TRX tokens today at an average price of $0.28, further increasing its TRX treasury holdings to more than 681.9 million TRX in total. The company aims to further grow its Tron DAT holdings to enhance long term shareholder value. For live…

— Tron Inc. (@TRON_INC) February 16, 2026

Rich Miller, Chief Executive Officer of Tron Inc., explained that, “Building the largest TRX token treasury in the public markets is not symbolic but strategic.” He emphasized that the company’s growing TRX holdings reflect TRON’s network expansion and confidence in the blockchain’s scalability, practical use cases, and long-term potential for generating value.

Tron Founder Justin Sun also praised the strategy. He stated that accumulating TRX strengthens the company’s core treasury.

Sun’s remark coincides with TRX’s continued resilience amid the broader crypto market’s ongoing decline.

TRX peaked in 2024 at roughly $0.45 before retreating to its current level of 0.28, down 0.3% over the last day. The TRX token is now ranked #8 by market capitalization.

TRX outperformed  Bitcoin and Ethereum year-to-date, rising 17.6% while Bitcoin fell 29.4% and Ethereum dropped 27.7% over the same period. Tron’s market value dropped by just 4% over the past month, while the whole cryptocurrency market cap dropped by over 25%.

TRON network reports growth in tokens, revenue

Tron continues to report heavy network utilization. The blockchain recorded over 100 million monthly active addresses in January. The number of transactions also rose to 342 million during this time.

The TRX token supply page revealed that the token currently has a total supply of 94.7 billion tokens with a market valuation of over $26.4 billion.

TRON’s protocol revenue for yesterday totaled $5.56 million, a 3.07% decrease from the previous day. The network’s short-term revenue performance appeared stable, with $203.35 million over the last 30 days, up 0.20%.

Total protocol revenue fell 17.87% to $609.61 million over 90 days. TRON’s revenue, a measure of long-term growth and consistent ecosystem activity, increased 43.03% to $3.39 billion over the last 365 days.

TRON network’s stablecoins recorded notable transaction growth. The stablecoin overview page revealed that the blockchain had over 100 million monthly active addresses and 342 million transactions in January. 

TRON solidified its stablecoin settlement hub in the second half of last year, with low costs and fast payment confirmations across Asia, Africa, and Latin America. Stablecoin supply increased 41%, powered by USDT, USDD, and TUSD, while monthly active users increased 38% to over 10 million. 

According to the stablecoin overview page, USDT dominates stablecoins on the network with a total supply of over 85.4 billion tokens. USDD and TUSD are next in line, with roughly 705 million and 168.5 million tokens, respectively. USDCOLD adds liquidity and usefulness to the ecosystem with 38.4 million tokens

Tronscan data also revealed that the blockchain currently has 72.75 million active participants in stablecoin transactions. The network processed 3,257,515 transactions yesterday alone, a 53.5% increase from the previous day. These high-volume transactions benefit platforms like SUN.io, which currently has $115.85 million in liquidity. 

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Anthropic is seeing revenue growth in India on developer adoption as artificial intelligence tools gain traction across private and public sectors, with the AI startup setting up an office in Bengaluru.

The US-based AI firm says its India revenue run rate has doubled in just four months, driven by intensive use by developers and productivity professionals, as well as early government deployments.

This comes as the AI startup also announced new partnerships in the country, which is the second-largest market for its Claude.ai. These partnerships will also support various public sectors, including education, judicial, and health services.

Revenue doubles as developers drive growth

Dario Amodei, CEO of Anthropic, commented on the unexpected speed of India’s growth during a speech in Bangalore. “Since my last trip here, the company has doubled its run rate revenue in India,” said Amodei.

Anthropic’s growth is primarily driven by developer-centric products. According to Amodei, Claude Code (“Claude”) is experiencing extremely high adoption among developers and may have even experienced an accelerated growth pattern relative to other developer tools, given the abundance of talented engineers in India.

Unlike other countries, Indian users employ AI technology very differently. One of the most distinctive aspects of India in comparison to the rest of the world is the extremely technical nature of Indians’ use of these technologies, according to Amodei.

The startup also announced that its India team will offer applied AI expertise to its growing enterprise customers, startups, and digital natives, helping them design, build, and scale Claude-powered solutions for their businesses.

Among the enterprises, Air India is using Claude Code to help developers ship custom software faster and at lower costs as part of the broader push to use agentic AI across its operations.

Globally, casual consumers blend with professional activities, which leads to a lower level of intensity than in India, where the majority of those adopting AI technologies are developers and are focused on enhancing productivity.

According to him, this level of intensity is indicative of a rapid experimentation culture where teams can quickly test new ideas and, if they don’t work, change direction and move on.

India’s adoption accelerates AI deployment and boosts Anthropic

Organizations beyond private enterprise are becoming interested in this technology too; for example, Amodei pointed out the work being done by the Indian government via the Ministry of Statistics in creating an “MCP-type” server for querying economic data and statistics.

The pace of these efforts, he believes, is abnormal as “government agencies in other parts of the world do not act as quickly as Indian government agencies do,” adding that the country’s “unique entrepreneurial spirit and technical expertise” contribute to this differentiation.

Amodei stated that as AI models will be performing these kinds of tasks in the future, humans will be able to transition from a job of doing their own work to one of being a supplemental supervisor for AI workers, thus increasing output by a factor of 10X to 100X.

He also stated that because of the aforementioned transition, there will be many start-ups across all industries (including biology, pharma/healthcare, finance, and legal) developing new products that utilize AI.

Business is also booming in the US. Anthropic’s user base increased by 11% after its viral Super Bowl ad, which bashed rival OpenAI and earned it bragging rights, according to BNP Paribas.

Visits to the Claude chatbot maker’s website jumped 6.5%, pushing Anthropic into the top 10 free apps on the Apple Store to beat competitors Meta, Gemini, and OpenAI.

According to data analyzed by BNP Paribas, OpenAI’s daily active users also saw a 2.7% bump post-game, and Google’s Gemini added 1.4%. AI brand ads took center stage at the Super Bowl, reaching an audience of about 125 million in the U.S. alone. However, Claude’s user base still lags behind those of ChatGPT and Gemini.

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Michael Saylor skipped the announcement of a weekly BTC purchase. Despite expectations of buying up to 1,600 BTC, the Executive Chairman of Strategy just sent out messages to calm the market. 

Michael Saylor’s Strategy did not make the usual BTC purchase announcement. Despite BTC hovering below $70,000, the company did not buy the dip. The previous week, Strategy acquired 1,142 BTC.

Instead, he mentioned one of Bitcoin’s main features, its non-stop trading. Despite this, the Year of the Horse celebrations put a damper on crypto activity and overall trading volumes. 

Markets closed. Bitcoin open. Happy Hodlday.

— Michael Saylor (@saylor) February 16, 2026

Strategy’s move was unexpected, as the company did not skip its BTC purchases, except for its quarterly report weeks. The skipped purchase arrived at a time of extreme market fear, as the Bitcoin fear and greed index is stuck at 12 points. 

Why did Strategy fail to buy more BTC?

Strategy was expected to buy more BTC based on its success with selling STRC preferred shares in the past week. 

Based on STRC’s preferred stocks traded in the $99-101 range, the Strategy was supposed to hold the equivalent of 1,459 BTC, a respectable weekly rise. The usage of STRC to raise funds also stops the MSTR common stock dilution, however briefly. 

On Monday, STRC returned below $100, meaning no new preferred shares were sold. For now, it remains uncertain if Strategy will announce a purchase by the end of the week, waiting out the market holidays in Asia, or its weekly raise will be used for cash reserves. For now, Strategy managed to calm the markets, while its MSTR common stock recovered to $133.

The chief concern for Strategy is that it will have to resort to depleting its cash reserves for dividends and to cover its loans maturing in 2028. The concerns may be moot in a bull market, but remain a threat if BTC crashes to a low price range.

Market downturn points to XRP liquidation risk 

The market slowdown during the Asian New Year celebrations may be the beginning of a more turbulent week. XRP open interest hovers just below $1B, mostly driven by rebuilding long positions. 

XRP may be one of the indicators, as the altcoin is among the most heavily shorted. Over $62M in liquidations are threatened if XRP falls to $1.44. The asset already hovered close to that range, at $1.49. 

XPR is seen as an indicator of overall market sentiment. The altcoin retains one of the highest mindshare levels on social media, but has not revisited a higher price range. According to researcher Rob Cunningham, Ripple still has the chance to establish itself as part of the banking payment infrastructure. 

If global banks moved from managing 50 fiat liquidity corridors to a single interoperable, ISO20022 aligned bridge asset on DLT rails, what efficiency gains emerge in time, cost, and risk?

Today’s cross-border banking model is built on:
•Correspondent banking
•Nostro/Vostro… pic.twitter.com/wojEAsUFIe

— Rob Cunningham | KUWL.show (@KuwlShow) February 16, 2026

Despite this, Standard Chartered lowered its XRP price forecast to $2.80 by the end of the year, down from a previous estimate of $8. 

Weakening altcoins are adding to BTC’s sentiment, once again raising the question of the depth of the bear market. Other leading altcoins like SOL, TRX, DOGE, and HYPE are also being predominantly shorted, with lower open interest.

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European banks powered through a sharp jump in cross-border deals as the total value of €17 billion showed a break from years of slow activity. The rise came after stronger profits and higher share prices pushed banks across Europe to take bigger bets again.

Last year’s total came from many large mergers that moved the sector to its highest level since the 2008 crisis.

The figure had been €3.4 billion the year before, so the scale of the change was hard to ignore for anyone who follows money, markets, or crypto.

Financial firms worldwide also pushed $660 billion in M&A, up from $454 billion in 2024. That shift kept the sector at 14% of total global deal value.

The main themes in 2025 were bigger deal sizes and stronger consolidation inside Europe, where banks wanted scale.

Banks in the Middle East also stayed active, with half of the largest banks in the region taking part in deals over the past five years, mostly linked to Islamic banking. In the United States, a market with more than 4,000 banks, midsize firms looked for mergers to grow, which gave the sector more space for activity, according to data from McKinsey.

Tracking sharp changes in deal value across markets

S&P Global said:-

“The European M&A market declined year over year in both deal value and volume, with the United Kingdom leading the charge despite remaining the top destination. Deal values dropped from $162.7B to $150.9B, with deal volume also dropping from 4,186 to 3,244, marking -7% and -23% decreases in activity.”

S&P Global also noted that Communication Services and Financials were the only sectors that grew, and most big deals came from foreign buyers. Nine of the top ten deals involved buyers from outside the region, and six involved buying a single asset or division, which showed strong demand for carve-outs and divestitures.

The Americas carried more than half of global deal value. Activity there hit $2.9 trillion in 2025, which beat the ten-year average of $1.9 trillion by 50%.The US economy stayed firm with falling rates, higher stock indexes, steady profits, and extended tax cuts under President Donald Trump.

Source: S&P Global

That mix pushed more companies toward deals. The Federal Deposit Insurance Corporation in March approved a plan to reduce checks on mergers that create banks with more than $50 billion in assets.

In July, the Federal Reserve proposed changes that would make it easier for banks to keep a well-managed status. A bank would now lose that status only after several low ratings, not just one.

Europe’s deals, IPO limits, and private equity moves

EU banks completed only 19 cross-border mergers last year, even though the value was high. The public-offering market in Europe stayed weak, with a small IPO window. The IPOs that did happen came from sectors with strong demand and clearer earnings paths.

These sectors were healthcare, industrial tech, and consumer and retail. Large offerings were rare because many firms waited for better market conditions. Spin-offs stayed active because they depend more on company plans than on IPO conditions.

Private equity moved back into the picture. PE deal value rose 18% to $331 billion, equal to 33% of all deal value.PE kept a larger share of deals in EMEA than in the United States because several regions in EMEA have long-established PE markets.

The sector also had large dry powder levels, more access to IPO exits, and long-term bets on infrastructure and Europe’s competitiveness.

Sector numbers showed clear patterns. TMT led with 20% of all deal value in 2025, reaching $202 billion, up 9% from the year before.

Six of the 20 biggest deals in the region came from financial services, giving that sector 17% of deal value, up from 10% in 2024.

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YZi Labs is attempting to expand the board of directors at CEA Industries Inc. in order to have more influence over the company’s operations. Shareholders are currently unable to vote or submit consents as the filing remains under review by the SEC.

In July 2025, YZi Labs raised $500 million in a private placement (PIPE) to build the world’s largest corporate BNB treasury. However, by December 2025, YZi Labs accused the company’s asset manager, 10X Capital and BNC management of privately attempting to shift away from the BNB-only strategy and include other cryptocurrencies, such as Solana (SOL). 

Expanding the Board of Directors at CEA Industries ensures that YZi Labs can nominate people who align with their vision for the company’s future. 

Why is YZi Labs trying to change the board of CEA Industries?

YZi Labs Management Ltd. has filed a revised preliminary consent statement with the Securities and Exchange Commission (SEC). The group is attempting to expand the size of the Board of Directors at CEA Industries and to place specific nominees into those new positions.

CEA Industries is a company that provides engineering and technology for indoor farming. The company rebranded as the BNB Network Company (BNC) in order to become a digital asset treasury (DAT), holding Binance Coin (BNB) as its primary reserve, similar to how other companies hold Bitcoin. 

In July 2025, YZi Labs raised $500 million in a private placement (PIPE) that BNC was to use the capital to build the world’s largest corporate BNB treasury. By August, the company had acquired over 515,000 BNB, worth nearly $465 million at the time.

However, by December 2025, YZi Labs issued a formal notice accusing the company’s asset manager, 10X Capital and BNC management of privately attempting to shift away from the BNB-only strategy and include other cryptocurrencies, such as Solana (SOL). 

The fallout caused BNC’s stock to drop approximately 87% from its post-announcement highs. 

Most recently, in the latest episode of the fallout, the YZi Labs Team released a “BNC Shareholder Update” to thank investors for being proactive. They confirmed that the revised filing is currently under review by the SEC and explained that shareholders cannot vote or submit any consent forms at this time. Investors must wait for official updates on the timing of the vote once the SEC finishes its review process.

Expanding the Board of Directors at CEA Industries ensures that YZi Labs can nominate people who align with their vision for the company’s future. The group is led by Changpeng Zhao, who is the sole director of YZi Labs Management. 

Other participants include Max Baucus Sieben (a former U.S. Senator and Ambassador), David James Chapman, and Matthew Roszak. 

What is going on between YZi Labs and CEA Industries?

Beyond Changpeng Zhao and Max Baucus, the group includes Jiajin He, who is deemed to beneficially own over 2 million shares. Alex Odagiu is also listed as a participant with a smaller shareholding. Other named participants include Marie Teresa Goody Guillené and Ling Zhang.

Currently, YZi Labs Management directly owns 2,150,481 shares of common stock. However, they hold millions of shares through different types of warrants, including approximately 7.7 million Pre-Funded Warrants, 9.9 million Stapled Warrants, and 3.5 million Strategic Advisor Warrants.

Under the Beneficial Ownership Limitation, YZi Labs cannot exercise these warrants if doing so would give it more than 4.99% of the company’s total shares, forcing the group to use a different method to influence the company’s governance.

The status of the filing is currently preliminary. The SEC must review the language to ensure it follows all legal requirements for soliciting shareholder consents. Once the SEC is satisfied, YZi Labs will distribute a “WHITE consent card” to shareholders so they can officially vote for or against the board expansion and the new nominees.

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Japan posted a 0.1% increase in fourth-quarter output, which kept the country out of a technical recession but did not meet the 0.4% call from economists.

The number reversed the 0.7% fall recorded in the third quarter, yet the gain stayed very small. The annualized reading reached 0.2%, far below the 1.6% forecast and coming after a 2.3% fall in the prior quarter. Year-on-year growth landed at 0.1%, slowing from 0.6%, and the Cabinet Office data pointed to private spending as the only strong part.

Weak exports and public spending continued to weigh on the economy. Right after the release, the Nikkei 225 opened 0.12% higher, while the yen dropped 0.25% to 153.06 against the dollar.

Crypto traders watching macro trends noted how slow growth can feed into risk mood, and many kept a close eye on how Japan moves next.

Central bank raises outlook and pushes moderate expansion

Bank of Japan raised its growth view in January for the fiscal year ending March 2026, moving its forecast from 0.7% to 0.9%. It also lifted the fiscal 2026 outlook from 0.7% to 1%.

The central bank said it expects moderate expansion as other regions pick up speed. It pointed to a cycle where wages and prices rise together, backed by government steps and easy financial conditions. This update came as Japan worked with the U.S., its second-largest trading partner, on a $550 billion investment pledge tied to their trade deal.

NHK said last Friday that both sides still have no agreement on which projects will come first. Economy Minister Ryosei Akazawa said he wanted the first deals done before Prime Minister Sanae Takaichi meets U.S. President Donald Trump.

Trump had announced the meeting before the Feb. 8 Lower House election. That vote gave Takaichi and the Liberal Democratic Party a wide win.

After the result, Takaichi said she would back growth by raising investment through “proactive” fiscal steps, though she did not go into detail. She had already promised a two-year break on food taxes and a move to lift defense spending to 2% of GDP.

These plans now sit against fresh soft data from Japan, which keeps drawing attention from anyone watching global liquidity, including crypto traders who track how big economies shape risk markets.

Regional markets respond and track weak Japan data

Asian markets spent Monday in quiet trade as the Lunar New Year kept China, South Korea, and Taiwan shut. Currencies and bonds held steady, while precious metals saw new pressure through the morning.

The weak numbers from Japan pulled some heat out of last week’s strong market run. The country recorded only 0.2% annualized growth for the December quarter, far under the 1.6% call. Government spending acted as a drag again. The result added more weight on Takaichi’s push for a larger fiscal path.

The Nikkei inched 0.2% higher after rising 5% the week before. MSCI’s Asia-Pacific index outside Japan gained 0.4%. South Korea’s tech-heavy market climbed 8.2% for the week, while Taiwan rose almost 6%.

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The euro is beating the dollar for the second straight year, and the numbers are clear. The euro opened at 1.1872 and the previous close was 1.1868.

According to data from TradingView, the euro’s year-to-date return stands at 0.91%. And during Monday’s session, price traded between 1.1849 and 1.1878. Over the past 52 weeks, it has ranged from 1.0360 to 1.2081.

The dollar has dropped 1.3% this year against a basket of peers that includes the euro and the pound. That follows a 9% fall in 2025. The dollar now sits close to a four-year low.

Deutsche Bank challenges the dollar safe-haven story

Deutsche Bank says the old belief that the dollar rallies when stocks fall is not holding up. George Saravelos, global head of FX research at the bank, wrote in a note dated February 11 that many investors assume the dollar rises during risk aversion.

George said a simple chart of the dollar against equities shows that is not true. He said the average correlation between the USD and equities has historically been close to zero. Over the past year, he said the dollar has once again decoupled from the S&P.

George pointed to rising risk inside US equities. He described “AI concentration and cannibalization risks.” Software stocks were hit hard earlier this month after Anthropic launched new AI tools that can handle professional workflows. Many large software firms sell those workflows as core products.

The S&P 500 Software and Services Index is down nearly 20% this year. When equity risk rises, and the dollar does not rally, the old safe-haven script weakens. That helps the euro.

Investors dump dollar exposure as policy risk builds

Fund managers are holding the most bearish dollar positions in more than a decade. A Bank of America survey released Friday showed exposure to the dollar has fallen below last April’s low point.

That was when President Donald Trump, the 47th president who won the 2024 election, unsettled markets with sweeping tariffs. The survey said positioning has been the most negative since at least 2012.

The dollar’s weakness is not just survey talk. Options data from CME Group shows bets against the dollar now exceed bullish wagers. That reverses the pattern seen in the fourth quarter of 2025.

Large asset managers say pension funds and other real money investors are hedging against further losses or cutting exposure to dollar assets.

Risk reversals tied to further dollar depreciation against the euro have reached levels seen only during the Covid-19 shock and after last April’s tariff announcements. Investors are paying up for protection against more downside.

Growth data also plays a role. The Eurozone economy expanded 0.3% in the fourth quarter of 2025. That equals a 1.4% annual rate. In Asia, USD JPY rose 0.4% to 153.27 after Japan reported weak numbers.

Japan’s economy grew just 0.2% annualized in the December quarter, far below the 1.6% forecast. When Europe prints steady growth, and Japan disappoints, relative strength matters. In this environment, the euro keeps gaining ground.

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The digital asset treasury company reported an exponential surge in revenue for fiscal year 2025, reflecting the uptick in its Bitcoin-focused operations.

Tokyo-listed Metaplanet released its FY2025 earnings report on Monday, showing revenue climbed 738% to 8.9 billion yen, or about $58 million, from 1.06 billion yen a year earlier.

The company is the fourth-largest publicly listed institutional BTC holder, with 35,102 coins, and generated 6.29 billion yen in operating profit during the fiscal year. Premium income from writing Bitcoin options rose to 7.98 billion yen, compared with 691 million yen in fiscal 2024.

A detailed financial summary from the report also revealed its operating profit expanded 1,694.5% year-on-year from 350 million yen in FY2024. The company’s total assets also surged to 505.3 billion yen from 30.3 billion yen, an increase of more than 1,500%. Net assets also jumped 2,609.6% to 458.6 billion yen from 16.9 billion yen the previous year.

Metaplanet lauds revenue growth, but losses emerge from Bitcoin revaluation

Despite its strong operating performance, Metaplanet’s earnings were heavily affected by the decline in Bitcoin prices during the last quarter of 2025. The company recorded a non-cash valuation loss of 102.2 billion yen, or about $650 million, due to King Coin’s 28% year-on-year price drop. 

Metaplanet consolidated financial summary analysis. Source: Metaplanet disclosures

Since bitcoin retreated from a peak near $126,000 to finish the year below $90,000, an accounting adjustment pushed Metaplanet’s ordinary profit into a loss of 96.1 billion yen, compared with a 5.99 billion yen profit 12 months prior. 

Net income also swung deeply into negative territory, posting a loss of 95.0 billion yen after counting a 4.44 billion yen profit in 2024. The company stressed that the loss was unrealized under mark-to-market accounting.

However, the firm’s Bitcoin-related operations generated 8.47 billion yen in revenue, accounting for 95% of total income. By contrast, the hotel business contributed 436.9 million yen in revenue, while corporate and other activities had a negligible or negative impact.

Gross profit from Bitcoin-related activities reached 8.45 billion yen, far exceeding the hotel segment’s 169.3 million yen in operating income, while corporate and other operations recorded a loss of 1.07 billion yen.

In fiscal 2024, before the Metaplanet fully became a digital asset treasury, its bitcoin holdings had generated just 689.9 million yen in revenue, while hotel operations brought in 372.4 million yen. The company effectively replaced its former hospitality- and media-linked revenue model with derivatives-driven cryptocurrency income within one year.

Metaplanet executives said they will keep the asset at the centre of the business operations, and anticipate its revenue to grow by 80% after boosting the portfolio to 100,000 bitcoins by the end of the FY 2026. 

The company’s shares were trading at ¥326 on Monday, up 0.31% on the day. However, the equity has fallen 7.39% over the past five days and 44.84% over the past month.

Japanese economic state looks weak, more reasons to buy Bitcoin?

Japan’s economy is struggling to pick up the pace, as government data showed Japan’s gross domestic product grew an annualised 0.2% in the October-to-December quarter. On a quarterly basis, GDP went up by a meagre 0.1%, missing expectations of a 0.4% increase.

The reading is only a modest rebound from a revised 2.6% contraction in the previous quarter, displaying fragile recovery conditions in the world’s fourth-largest economy.

“It shows that the economy’s recovery momentum is not very strong. Consumption, capital expenditure, and exports – areas we hoped would drive the economy – just haven’t been as strong as‌ we expected,” said Meiji Yasuda Research Institute economist Kazutaka Maeda.

Prime Minister Sanae Takaichi’s government, fresh from an election victory, is preparing a public spending initiative to support consumption and revitalise growth. At the same time, the Bank of Japan has reiterated plans to continue raising interest rates after years of ultra-low borrowing costs, even as inflation and currency weakness persist.

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People at India’s AI Impact Summit at Bharat Mandapam said the opening day came with long lines, overcrowded spaces, and a sudden order to empty the building.

Some speakers for Tuesday at India’s AI Impact Summit said they still don’t have confirmed panel times or final agendas, so they’re waiting for basic information on when they’re actually supposed to speak.

The official website for India’s AI Impact Summit says AI can reshape society and help developing countries leap forward, and PM Narendra Modi said the theme is “welfare for all, happiness for all.”

OpenEden made headlines today, February 16, as the established tokenized asset management platform announced that attackers had compromised the Domain Name System (DNS) for both its main website and user portal, creating an immediate wallet security threat for anyone attempting to access the platform through regular web browsers.

“It appears that the DNS for both openeden.com and portal.openeden.com is compromised. Do NOT interact with them,” the Singapore-based company posted on their X account. 

The warning emphasized that while “all reserve assets remain SAFU and can be verified via OpenEden’s Chainlink Proof-of-Reserve feed,” users who visit the hijacked domains can lose their wallet’s assets. 

The OpenEden team stated that it was currently investigating the breach and promised to provide updates as the situation develops.

A huge blow for key player in the crypto industry

The DNS compromise caused a lot of concern, especially given OpenEden’s role as a major institutional custodian of tokenized real-world assets. The company was founded in 2022 in Singapore and operates as an issuer of tokenized US treasury bills through its flagship TBILL token, which provides investors with direct access to tokenized treasury bills backed by corresponding securities kept in segregated accounts.

The platform grew to become a key player in the crypto space and became the first tokenized RWA issuer to receive A ratings from investment analysts (A from Moody’s and AA+ from S&P Global Ratings) for its Treasury fund. 

With such a large industrial footprint (serving professional investors, DAO treasuries, and other firms), the DNS compromise creates risk for DeFi users, but more so for bigger market participants who assume that institutional-grade platforms have enterprise-level security protecting their web access points.

How did the DNS attack happen?

DNS hijacking attacks work by compromising the Internet’s addressing system. The Domain Name System works like the Internet’s phonebook, translating human-readable domain names like “openeden.com” into number-based IP addresses that computers use to route traffic. 

As such, when attackers hijack a domain’s records, they can redirect visitors to malicious sites without touching the original platform’s infrastructure.

In OpenEden’s case, users typing “openeden.com” or “portal.openeden.com” into their browsers would be rerouted to attacker-owned servers hosting fake versions of the original platform. 

These fake sites would replicate the original interface pixel for pixel, and then prompt users to connect their wallets. After connecting, the malicious site can then request transaction signatures that appear on the website like normal website interactions, but are actually authorizing transfers of tokens to attacker wallets.

Luckily, this attacker operates independently of OpenEden’s smart contracts and reserve custody systems. The platform’s TBILL and USDO tokens remain secure in their respective vaults, and all the reserve assets backing those tokens continue to be verifiable through Chainlink’s Proof of Reserve oracles. 

This means that the DNS attack only creates risk for users who visit the hijacked domains and interact with the phishing interface, forcing OpenEden to announce a warning to all users to stop interacting with their website.

Latest in wave of DNS attacks targeting crypto platforms

The OpenEden incident falls into a concerning pattern of DNS hijackings targeted at crypto platforms. In November 2025, Aerodrome Finance (the largest decentralized exchange on Coinbase) was hijacked by attackers, seizing control of the platform’s domain registration to re-route traffic to a fake site. 

Aerodrome’s smart contracts remained uncompromised, but the phishing site was able to trick unsuspecting users into signing transaction approvals that drained wallets of ETH, USDC, and various other tokens.

In the same vein, Curve Finance experienced a DNS hijacking in May 2025 when attackers infiltrated the domain registrar “iwantmyname” and tweaked the DNS delegation for the “curve.fi” domain. 

Naturally, users were redirected to other sites, but Curve’s team responded by migrating to a secure alternative domain and urging users to access the platform through Ethereum Name Service (ENS) mirrors instead of the traditional DNS.

DNS attacks work well for crypto platforms in particular because users must connect wallets and sign transactions frequently, which creates various opportunities for phishing sites to target. 

OpenEden has not disclosed how the attackers gained control of its DNS records or which registrar manages its domains, as the investigation is still ongoing. 

However, the platform has not provided a timeline for when safe access to their domains would be restored. In the meantime, users looking to verify reserve holdings can access the Chainlink Proof of Reserve directly for real-time information on assets connected to OpenEden.

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The CEO and co-founder of Blockstream, Adam Back, is skeptical about Bitcoin Improvement Proposal (BIP) 110. According to him, introducing a consensus-level spam limit risks compromising Bitcoin’s image and stability.

The executive made this statement after observing that approximately 7.5% of network nodes, which are primarily Bitcoin Knots users, have expressed support for the proposal.  This situation underscores a widening disagreement over how to handle transaction data spam.

Back expressed concerns regarding the BIP-110 proposal

Following Back’s remarks, reports highlighted that the BIP 110, initiated by Dathon Ohm, was introduced in December of last year. Ohm suggested a 12-month temporary reduction in transaction data limits. The initiative aims to prevent images and media files from overloading the blockchain.

Responding to the developer’s proposal, Back advocated Bitcoin’s role as sound, hard money, but opposed interventions in its consensus mechanisms. In his view, spam is merely a nuisance that poses no significant risk to network security.

Moreover, Blockstream’s CEO shared an X post dated Sunday, February 15, noting that such a substantial modification lacks justification. Afterwards, he outlined his belief that BIP-110 would undermine BTC’s reputation as a reliable store of value and secure monetary system. To further elaborate this point, Back labeled the proposal an “attack,” equating the attempt to force changes without consensus to a “lynch mob” effort.

On the other hand, sources alleged that support for the proposal is growing among Bitcoin Knots validators despite Back’s warnings. Bitcoin Knots began securing substantial market share in late 2024. In early 2025, its adoption gains rapid momentum.

In late October 2025, Bitcoin Core v30 changed its default policy to lift the 80-byte OP_RETURN restriction, a move designed to reduce UTXO bloat by encouraging the use of non-spendable data outputs.

Since functionality of the OP_RETURN became a subject of intense debate, Bitcoin Core’s share of Bitcoin nodes drastically declined to 77.2% reflecting a drop of about 20.8% while the shares of Bitcoin Knots’ surged to 22.7%. Regarding this news, reports mentioned that the heated debate fueled discussions in the Bitcoin community over which types of transactions should be allowed. 

Uncertainties surround the BIP-110 proposal’s approval 

Regarding Bitcoin Improvement Proposal 110, reports dated January 25 stated that this initiative is led by the Bitcoin Knots team. Scheduled for a one-year duration, the initiative will be adapted based on community feedback.

The proposal only managed to secure support from 3% nodes in the Bitcoin blockchain. However, for approval, the soft fork requires support from at least 55% of validators. Still, none of the top 20 mining pools demonstrated interest in the proposal.

This situation prompted reporters to reach out to the authors of BIP-110 for comment on the proposal. Responding to this request, Bitcoin Core developer Luke Dashjr argued that adding unnecessary data would burden node operators and divert resources from Bitcoin’s core mission of enhancing the financial system.

Critics, on the other hand, claimed that spam-induced hardware requirements are undermining the network’s status as a truly decentralized, censorship-resistant currency.

Bitcoin supporter and researcher Matthew Kratter compared the issue to ivy overtaking a tree, saying that just as the plant slowly consumes and damages its host before eventually dying itself, excessive spam could gradually weaken and harm Bitcoin.

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Mantle has announced that it has deployed ERC-8004 on mainnet to power on-chain economic interactions for AI agents onchain. According to CoinMarketCap data, the Mantle token slipped nearly 5% despite the rollout.

Mantle, a modular Ethereum Layer-2 scaling solution, has rolled out the ERC-8004 standard on mainnet. The feature aims to enable AI agents to operate as independent actors in blockchain-based economies. These agents, once deployed,  will transform themselves from isolated scripts into full-scale economic participants. 

The transformation enables agents to operate across real-world assets, traditional financial bridges, and decentralized, blockchain-based economies through an identity layer that provides on-chain identity and authentication for these AI agents. The integration creates what the Mantle referred to as a “unified ecosystem” powered by autonomous agents.

Mantle token dips by 4% as ERC-8004 goes live on mainnet

The new standard introduces an on-chain trust and identity framework to address what Mantle Network describes as a “visibility crisis.” According to a press release covering the integration, the “crisis” has prevented autonomous agents from engaging in high-stakes financial markets where verifiable credentials are essential.

The standard also joins three core onchain registries that operate in tandem to create what the DeFi protocol refers to as a trustless “Internet of Agents.” These registries include a Reputation Registry that maintains a portable performance history across platforms, an Identity Registry that provides NFT-based verification for each agent, and a Validation Registry that offers cryptographic proof of work completed.

According to Mantle’s press announcement, AI agents have not had the capacity to build a reputation across different platforms. They have also not been able to maintain a track record of historical performance outside the specific ecosystem in which they were created. 

The mantle token has declined by 4% over the last 24 hours and is currently trading at $0.6347, according to crypto data aggregator CoinMarketCap. The crypto asset has been on a steep decline since the year began, recording a nearly 40% YTD drop.

BNB Chain also joined the bandwagon earlier this year, according to a previous report by Cryptopolian dated February 4. The report noted that the ERC-8004 infrastructure was deployed on its Mainnet and Testnet.

Joshua Cheong, Head of Product at Mantle, said that the role of deploying the standard was to bridge traditional finance to a decentralized economy. “By bringing ERC-8004 to our ecosystem, we are providing AI agents with the ‘credentials’ they need to manage real capital,” Cheong said, adding that the goal extends beyond automation to “creating a verifiable workforce that can navigate compliance, liquidity, and settlement at scale.”

The deployment of ERC-8004 Mantle’s mainnet demonstrates how AI agents can autonomously participate in financial systems with minimal human intervention. The standard enables AI agents to operate across different platforms without being limited to a single ecosystem. The standards will facilitate interoperability, which is critical to the development and deployment of autonomous financial systems. The trust-focused layer will enable agents to communicate, verify credentials, and transact automatically.

Mantle Network could pave the way for the institutional adoption of ERC-8004

Mantle’s ecosystem includes over $4 billion in community-owned assets and partnerships with leading issuers, including Ethena USDe, Ondo USDY, and OP-Succinct. The ecosystem’s institutional-grade infrastructure provides a foundation for the adoption of ERC-8004, positioned to support large-scale adoption of autonomous AI agents. 

The news comes after Ethereum co-founder Vitalik Buterin touted the network as an ecosystem that can soon enable AIs to interact economically. Cryptopolitan recently reported that Buterin said Ethereum’s goal is to enable greater decentralization through the ERC-8004 standard. Vitalik explained that Ethereum can facilitate interactions among different AI agents, including decentralized authorization for API calls, bot-to-bot hiring, and security deposits. The publication highlighted Buterin’s claims that the upgrade will make interactions between AI agents as trustless and private as possible.

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Cyprus’s Supreme Court gave a major decision in a $700 million crypto-linked fraud case. The court cleared the way for police to open two bank safe deposit boxes belonging to an Israeli couple. The suspects had tried to block the searches.

The apex court had dismissed the couple’s bid to annul search warrants issued by a Limassol court on Oct. 22, 2025. The warrants were reportedly granted after a request made by French authorities probing a cross-border crypto investment scam.

The suspected couple was trying to get a writ of certiorari. They argued that investigators had failed to establish a link between the deposit boxes and the offences under investigation. This was the reason that they refused to hand over the keys. Without an official order, the boxes would need to be forcibly opened.

Investigators trace $700M in major crypto scam

Judge Elena Efraim reportedly said that the evidence presented to the lower court points to an international and multi-layered fraud. It is connected to fake crypto investment platforms operating since 2020. The sites allegedly displayed fabricated trading profits to bait victims. The scam was run across France and the wider European Union before siphoning off funds.

According to the ruling, investigators identified a large organised criminal group behind the scheme. The officials might have traced crypto flows totalling about $700 million. Proceeds were allegedly channelled through shell companies registered in Cyprus, Singapore, the British Virgin Islands and Hong Kong.

Once that money flowed inside those entities, it could be disguised as salaries or used to purchase property or moved into additional structures. It was done just to destroy their origin. The search warrants specifically targeted smartphones, tablets and high-tech internet equipment. However, it is believed to be stored inside the two safe deposit boxes.

The court noted that the male applicant received about $20,000 in cryptocurrency in 2021. It was directly linked to the fraudulent platforms, with a further $3 million passing through his account. He and his family were said to control a trust which was built to accumulate property.

“This evidence reasonably gives rise to a suspicion that the applicant participated in the overall scheme,” the court said. It noted that digital assets obtained from the fraudulent websites ended up in his account. The Supreme Court concluded that the material before the lower court was sufficient to establish reasonable suspicion and upheld the warrants.

Europol seizes cash and crypto in EU probe

The crucial fraud case forms part of a broader European crackdown. Europol said in a recent report that final actions in a sweeping international operation dismantled a large-scale crypto fraud. The probe was began with a single began with a single fraudulent crypto platform but expanded into a major investigation.

Authorities described it as a complex and far-reaching network spanning Europe and beyond. The group allegedly operated multiple fake investment platforms. They even relied on call centres to pressure victims into sending additional funds after being shown inflated returns.

On Oct 27, 2025, coordinated raids were carried out in Cyprus, Germany, and Spain. It was done at the request of the French and Belgian authorities. Later, nine individuals were arrested on suspicion of laundering proceeds from the fraudulent platforms.

Authorities managed to seize €800,000 from bank accounts, €415,000 in cryptocurrencies, €300,000 in cash, digital devices and high-value watches. Europol and Eurojust supported the operation. This involves national authorities from France, Belgium, Germany, Spain, Malta and Cyprus.

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X is down as part of a wider tech outage wave, with users reporting service disruptions overnight across several major platforms.

Reports show Discord issues started around 1:20 AM EST, followed by Brawl Stars at 3:25 AM EST, and Overwatch 2 at 4:31 AM EST, according to Downdetector data.

Users say they cannot log in, send messages, or keep stable connections, with many describing sudden drops and repeated loading failures.

Harvard University’s endowment has adjusted its cryptocurrency strategy during the fourth quarter of fiscal year 2025, reducing Bitcoin exposure and placing a sizable investment in Ethereum spot exchange-traded funds. 

As seen in regulatory filings submitted to the US Securities and Exchange Commission last Friday, the university’s $50 billion endowment comptroller Harvard Management Company purchased 3.87 million shares of BlackRock’s iShares Ethereum Trust during the quarter. 

The acquisition is the HMC’s first Ether exposure, coming at the expense of a trimmed-down stake in BlackRock’s iShares Bitcoin Trust to 5.35 million shares valued at $265.8 million, as of December 31. 

The figure is about 1.48 million shares less from the prior quarter, when the endowment held 6.81 million IBIT shares worth $442.8 million. Harvard’s combined indirect Bitcoin and Ethereum holdings totaled $352.6 million at the end of the reporting period.

Harvard shifts to Ethereum dip after 44% BTC loss from ATH

The HMC’s portfolio rebalancing comes against the backdrop of a volatile stretch for crypto markets. Bitcoin had surged to an all-time high near $126,000 in October, before a purported crypto winter began and cooled its price down to $88,429 by year-end. Ethereum has also lost over 55% of its value since it clocked an all-time high of $4,900 on August 24, 2025.

As reported by Cryptopolitan in December, the Ivy League school’s position in Bitcoin-linked funds had fallen about $40 million below its purchase value. Despite the reduction, Bitcoin remains Harvard’s largest publicly disclosed equity holding. The $265.8 million position exceeded the endowment’s reported stakes in technology companies Alphabet, Microsoft, and Amazon.

The portfolio adjustment also came alongside changes in other allocations, in which Harvard increased its position in gold exchange-traded funds during the same period, according to Bitwise CIO Matt Hougan confirmed late last year.

Looking at institutional investment flows in the crypto sector, digital asset funds recorded four consecutive weeks of withdrawals, with Bitcoin-focused funds experiencing the largest redemptions of $677 million in the past month. 

The iShares Bitcoin Trust itself has experienced about $2.8 billion in net outflows in the last 90 trading days. Spot Bitcoin ETF net outflows totaled about $5.8 billion in the period, while still maintaining $14.2 billion in positive flows over a one-year horizon.

Harvard’s continued investment in cryptos raised eyebrows among some academic finance experts, who argue that such assets are too speculative for institutional portfolios. Andrew F. Siegel, emeritus professor of finance at the University of Washington, deems Bitcoin exposure as “risky.” 

“It is down 22.8% year-to-date,” Siegel wrote. “It can be argued that the risk of bitcoin is partly due to its lack of intrinsic value.”

Another finance professor from UCLA, Avanidhar Subrahmanyam, believes concentrated positions in digital assets could introduce unnecessary volatility into a long-term endowment portfolio.

“In my view, any underdiversified position in something as speculative as crypto (an asset of unproven true value) does not make sense for HMC,” he said. “If I were to ask them how they value BTC or Ethereum, I doubt I would get a cogent and precise answer. I questioned their investment in BTC, and it proved prophetic. I again question the wisdom of their investment in Ethereum.”

Is it the right time to buy? Coinbase CEO and a16z chief say yes

While academics see crypto investments as doom and gloom, industry executives from Coinbase and a16z say financial organizations should join the digital assets accumulation bandwagon before prices go back up. 

According to Coinbase’s lead, Brian Armstrong, there has been an increase in retail buying activity on crypto exchanges in recent weeks, as investors buy the dip.

“Retail users on Coinbase have been very resilient during these market conditions, according to our data: Vast majority of customers had native unit balances in Feb equal to or greater than their balances in December,” Armstrong wrote on X.

Speaking in a panel discussion at the World Crypto Forum in Korea last week, venture capital firm a16z CEO Anthony Albanese said:

“Financial services are moving money around, but Crypto is so good because it costs less than a penny and takes less than a second. Whether it’s a company or a financial institution, it’s a great time to enter crypto now.”

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Richard Teng, co-CEO of Binance, on Monday denied allegations that the exchange dismissed compliance investigators after discovering over $1 billion in USDT transactions connected to Iranian businesses. 

The conflict began after Fortune reported on February 13 that Binance had dismissed at least five investigators who had found transactions worth almost $1 billion linked to Iranian entities.

Fortune, citing multiple sources and internal documents, revealed that the Tether (USDT) stablecoin on the Tron network (TRX) was used to carry out the transactions. The platform also noted that the transactions took place between March 2024 and August 2025.

Cryptopolitan, citing reports, also noted that at least four senior compliance staff members have departed or been compelled to quit in the last three months.

Binance CEO denies sanctions violations, defends compliance record

The record must be clear.

No sanctions violations were found, no investigators were fired for raising concerns, and Binance continues to meet its regulatory commitments.

We’ve asked for corrections to recent reporting. pic.twitter.com/glA9bdGaw1

— Richard Teng (@_RichardTeng) February 16, 2026

Richard Teng disputed the claims reported by Fortune in a public statement on Monday, stating that “The record must be clear. No sanctions violations were found, no investigators were fired for raising concerns, and Binance continues to meet its regulatory commitments. We’ve asked for corrections to recent reporting.”

Teng explained that Binance has strict guidelines for employee behavior, with no room for infractions, including improper behavior, policy violations, or illegal data access. He emphasized that the exchange is subject to strict international regulations, including oversight in Abu Dhabi and compliance with laws in 21 other jurisdictions.

Teng also noted that Binance complies with employment regulations intended to safeguard workers who voice concerns and maintains strong internal whistleblower policies.

Teng questioned the rationale behind claims of unjust dismissals and emphasized that all staff terminations are carried out for valid reasons and are protected by internal and legal procedures.

Regarding the claims of sanctions breaches, Teng explained that a thorough internal investigation conducted with the assistance of knowledgeable legal counsel found no evidence of any infractions related to the transactions Fortune had cited. He affirmed the integrity of the company’s compliance system and criticized the notion that violations were “suppressed” as being untrue.

On February 14, Teng had criticized the claims cited by Fortune, calling them “irresponsible and misleading press articles based on anonymous sources.” He argued that such coverage is a disservice to the more than 1,300 compliance employees who put in countless hours to enforce international standards.

Teng described the procedures and instruments the company employs to monitor transactions and stop illegal activity, including collaborations with leading third-party services such as Elliptic, Chainalysis, and TRM. These solutions help Binance anticipate and prevent such infractions by enabling real-time transaction monitoring, sanctions screening, and blockchain analysis, he explained.

Teng further responded to claims that Binance had violated its monitorship and regulatory duties. He called these allegations untrue and reaffirmed that Binance is still adhering to its regulatory obligations, having strengthened its compliance, anti-money laundering, staffing, and monitoring systems following a 2023 deal with U.S. authorities. 

OFAC sanctions trigger scrutiny on stablecoins globally

Regulators continued to focus on stablecoins and cross-border transactions globally. Earlier last month, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two cryptocurrency exchanges situated in the United Kingdom, Zedcex and Zedxion for processing almost $1 billion in transactions related to the Islamic Revolutionary Guard Corps (IRGC). 

Blockchain analytics from companies like TRM Labs, Chainalysis, and Elliptic revealed that a significant percentage of these transfers used Tether (USDT) on the Tron network (TRX).

The Central Bank of Iran purchased more than $500 million in USDT to maintain liquidity in hard currency amid pressure on the Iranian rial that month. The step is part of a plan to keep a parallel dollar reserve outside of traditional banking systems.

Binance has not confirmed any violations in connection with these transactions.

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Crypto funds experienced outflows of $173 million during the week ending February 13, 2026, the fourth consecutive week of institutional withdrawals.

According to CoinShares data, the four-week cumulative outflows reached $3.74 billion. The week began with $575 million in inflows before reversing to $853 million in outflows mid-week, likely driven by price weakness.

Sentiment improved Friday following weaker-than-expected CPI data, bringing $105 million in inflows. ETP trading volumes fell to $27 billion from a record $63 billion the prior week.

US leads outflows at $403 million as Europe attracts capital

Regional flows showed differences in sentiment between the US and other markets. US-based crypto funds recorded $403.2 million in outflows during the week, accounting for more than double the global net outflow figure. European and Canadian products attracted $230 million in combined inflows.

Germany led European inflows with $114.8 million, the largest regional gain during the week. Canada recorded $46.3 million in positive flows, while Switzerland added $36.8 million. Brazil attracted $14 million, and Australia saw $9.8 million enter crypto investment products.

Sweden experienced $2.8 million in outflows during the week, the only European market with negative flows. Other regions, including Hong Kong ($1.7 million), Italy ($0.4 million), and the Netherlands ($0.9 million), recorded modest inflows.

Crypto funds flow by exchange. Source: CoinShares

iShares products experienced $276 million in weekly outflows, the largest among providers. Fidelity recorded $142 million in withdrawals, while Grayscale added $52 million across its product suite. Bitwise saw $38 million exit, and ProFunds Group recorded $49 million in outflows.

ARK 21Shares experienced $22 million in withdrawals during the week. CoinShares products attracted $34 million in inflows, while 21Shares AG added $21 million. Other providers combined for $248 million in positive flows.

Bitcoin and Ethereum lead asset-level outflows

Bitcoin investment products recorded $133.3 million in outflows during the week, leading asset-level withdrawals. Short Bitcoin products also experienced outflows totaling $15.4 million over the past two weeks.

Ethereum products saw $85.1 million in withdrawals during the week. Multi-asset products recorded $14.6 million in outflows. The combined Bitcoin and Ethereum outflows of $218.4 million accounted for more than the total net weekly outflow.

Hyperliquid products experienced $1 million in outflows during the week. Sui recorded minimal outflows of $0.04 million. Other assets combined for $0.5 million in withdrawals.

Bitcoin products hold $105.575 billion in assets under management, while Ethereum products manage $15.798 billion. Multi-asset products have $5.653 billion in AUM.

XRP and Solana attract $64 million in combined inflows

XRP investment products attracted $33.4 million in inflows during the week, bucking the overall outflow trend. Solana products recorded $31 million in positive flows. Chainlink added $1.1 million in inflows. The three assets combined for $65.5 million in institutional buying.

XRP products now hold $2.549 billion in assets under management, up from prior weeks. Solana products manage $2.145 billion in AUM. Litecoin products recorded minimal inflows of $0.4 million during the week. Zcash, Sui, and other smaller assets saw limited activity.

The week ending February 13 was the fourth consecutive week of negative flows. Total assets under management across all products reached $132.960 billion.

Bitcoin and Ethereum ETF weekly flows extend selling pressure

Bitcoin ETFs recorded $359.91 million in outflows for the week ending February 13, 2026, according to SoSoValue data. The negative weekly flows followed the prior week’s $318.07 million in withdrawals through February 6. Total value traded reached $18.91 billion during the week.

The cumulative total net inflows for Bitcoin ETFs reduced to $54.33 billion from $54.69 billion the preceding week. Total net assets reduced to $87.04 billion from $89.43 billion.

Bitcoin ETF weekly data. Source: SoSo Value

Ethereum ETFs faced $161.15 million in outflows during the week that ended February 13. This came after the preceding week’s $165.82 million negative flows that ended February 6. Total value traded for Ethereum ETFs stood at $5.14 billion.

The cumulative total net inflows for Ethereum ETFs reduced to $11.65 billion from $11.81 billion the preceding week. Total net assets reduced to $11.72 billion from $11.97 billion.

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