CoinPhoton

SparkKitty Malware Steals Crypto Seed Phrases From Phone Photos
Security researchers at Check Point have uncovered SparkKitty, a cross-platform malware family that scans photos on Android and iOS devices for cryptocurrency wallet seed phrases.
The malware uses optical character recognition to extract text from screenshots and images, including recovery phrases, passwords and QR codes. The stolen data is then sent to attacker-controlled servers.
SparkKitty was distributed through Apple’s App Store, Google Play and third-party Android channels. One infected Android app, called SOEX, exceeded 10,000 downloads before being removed. Other versions were hidden inside fake crypto services, messaging platforms, modified TikTok apps and gambling applications.
On infected devices, the apps request access to the photo library and continuously scan both existing and newly added images. Users who store wallet recovery phrases as screenshots face the highest risk, because anyone who obtains the phrase can take full control of the associated wallet.
Check Point advised crypto users to avoid photographing seed phrases, restrict app access to photo libraries and store recovery information offline, such as on paper or with a dedicated hardware-wallet backup.

Kraken Parent Payward Acquires Magic Labs’ Embedded Wallet Business
Payward, the parent company of Kraken, has agreed to acquire Magic Labs’ embedded wallet business through an asset sale.
Magic Labs has created more than 60 million wallets since 2018 and supports over 200,000 developers. Its wallet customers will move to Payward Services, while the two companies will remain legally independent after the transaction closes.
Following the sale, Magic Labs will rebrand as Newton Labs and focus entirely on Newton Protocol, an authorization layer designed to enforce compliance, security and risk policies before transactions settle onchain.
Newton Protocol entered mainnet beta in June 2026. Its first product, VaultKit, allows institutional vaults to embed identity, compliance and risk controls directly into transactions. Newton Labs also plans to apply the technology to stablecoins, tokenized real-world assets and agent-driven financial services.
The acquisition extends Payward’s expansion beyond crypto trading and into broader financial infrastructure. The company previously agreed to acquire derivatives exchange Bitnomial for up to $550 million and stablecoin payments firm Reap Technologies for $600 million.

STORJ Drops 20% After Storj Labs Files for Chapter 11
$STORJ
fell around 20% in 24 hours to approximately $0.06 after Storj Labs filed for voluntary Chapter 11 bankruptcy protection on July 26.
The decentralized storage provider said the restructuring is intended to resolve legacy liabilities linked to previous acquisitions and non-core operations. Storj expects its storage network, customer services and daily operations to continue during the process, subject to court approval.
The company described the filing as a way to reduce financial burdens, refocus on its core decentralized storage business and better align ownership among management, token holders, investors and the Storj community.
The bankruptcy adds Storj to a growing list of crypto companies facing financial difficulties in July. BitMEX announced it would permanently shut down in September, while Movement Labs and former bitcoin miner Poolin filed for Chapter 11. BitMart also began winding down its trading platform.
Despite assurances that operations will continue, STORJ’s sharp decline shows that investors remain concerned about potential dilution, restructuring risks and the token’s future role following the bankruptcy process.

Benchmark Sees 522% Upside for Strategy Despite Bitcoin Buying Pause
Benchmark Equity Research reiterated its Buy rating and $570 price target on Strategy, arguing that the company’s five-week pause in bitcoin purchases reflects disciplined capital management rather than a change in its long-term strategy.
The target represents about 522% upside from Strategy’s Friday closing price of $91.67.
Strategy recently increased its U.S. dollar reserve to $3.75 billion after selling approximately 5.4 million MSTR shares for $544.5 million. Analyst Mark Palmer said the larger cash reserve gives the company greater flexibility to meet preferred-stock dividend obligations and resume bitcoin purchases when market conditions become more favorable.
Benchmark also highlighted Strategy’s Digital Credit Capital Framework, which allows management to allocate capital among bitcoin acquisitions, cash reserves and securities repurchases. The company recently repurchased $25 million of STRC preferred shares under the program.
Strategy currently holds 843,775 BTC, acquired at an average price of $75,476 per coin. The position is valued at roughly $54 billion and represents more than 4% of bitcoin’s maximum supply.
Although Strategy has not purchased bitcoin since June 22, CEO Phong Le said the company remains committed to expanding its bitcoin holdings over the long term.
$BTC

Strategy Goes Five Weeks Without Buying Bitcoin, Builds $3.75B Cash Reserve
Strategy made no bitcoin purchases for a fifth consecutive week, leaving its holdings unchanged at 843,775 BTC as of July 26.
Instead, the company continued prioritizing liquidity. Strategy sold around 5.4 million $MSTRB
shares for $544.5 million during the week and increased its US dollar reserve by $525 million to $3.75 billion. The cash reserve is intended to fund preferred-stock dividends and debt interest and currently covers approximately 2.1 years of dividend obligations.
Strategy’s bitcoin holdings were acquired for about $63.69 billion at an average cost of $75,476 per BTC. At current market prices, the position is worth roughly $54 billion, leaving the company with several billion dollars in unrealized losses.
The company also repurchased 288,930 STRC preferred shares for $25 million under its recently launched digital credit securities repurchase program.
Despite the purchasing pause, CEO Phong Le said Strategy remains committed to accumulating bitcoin over the long term. He added that the company would only become seriously concerned about its debt exposure if bitcoin fell toward the $8,000–$10,000 range.
The latest figures suggest Strategy is temporarily shifting away from aggressive bitcoin accumulation and toward strengthening its balance sheet through share sales and larger cash reserves.
$BTC

Binance Tests Employees With Simulated Phishing Attacks
Binance conducts monthly simulated phishing attacks against its employees and may dismiss staff who repeatedly fail the tests, according to chief security officer Jimmy Su.
The exercises are run by the exchange’s internal red team, which poses as recruiters, conference organizers or potential business partners to test whether employees disclose information or install malicious software.
Workers who fail must complete additional security training, while repeated failures can affect performance ratings and, in severe cases, lead to termination.
Binance has conducted the program for three to four years as social engineering becomes a leading source of crypto security breaches. AMLBot estimated that such tactics were involved in 65% of industry security incidents in 2025.
The exchange says the tests have significantly improved employee security awareness and reduced vulnerability to attacks involving fake job offers, malicious meeting software and fraudulent partnership proposals.

Wise to Reapply for U.S. Trust Charter Under GENIUS Act
Wise plans to revise its U.S. licensing strategy after the Office of the Comptroller of the Currency rejected its application for a national trust bank charter.
The OCC cited weaknesses in Wise’s anti-money laundering and counter-terrorist financing controls, along with broader illicit-finance risks.
Wise said it will submit a new application under the GENIUS Act framework, which establishes rules for payment stablecoin providers in the United States. Analysts at William Blair said the move is unlikely to change Wise’s broader position on stablecoins, as the company remains focused on reducing cross-border payment costs regardless of the technology used.
The rejection comes despite the OCC approving similar trust charters for several digital asset companies, including Circle, Ripple, Crypto.com and Coinbase.

Dango to Shut Down as Crypto Platform Closures Accelerate
Layer-1 blockchain Dango will halt trading on its perpetual DEX on Wednesday and shut down its network entirely on Aug. 13.
The project said it could no longer see a viable path to sustainable commercial success. Founder Larry Liu cited cash shortages, legal challenges, team departures and difficult market conditions.
Dango launched its mainnet in January after raising $3.6 million in 2024. Its perpetual exchange went live in April but suffered a roughly $410,000 exploit only days later. The funds were eventually returned in exchange for a bug bounty.
The platform also struggled to compete with larger rivals. Dango held less than $391,000 in perpetual open interest, compared with more than $11 billion on Hyperliquid.
Dango joins BitMEX, Odos Protocol and Satori Finance in a recent wave of crypto shutdowns, highlighting growing pressure on smaller platforms as liquidity concentrates among market leaders and operating costs rise.

Fidelity Urges Senate to Pass CLARITY Act
Fidelity has called on the U.S. Senate to approve the CLARITY Act, arguing that clearer digital asset rules would strengthen investor confidence, give market participants greater certainty and reinforce U.S. leadership in global crypto markets.
The asset management giant joins Coinbase and several major industry groups pushing lawmakers to bring the bill to a full Senate vote.
The CLARITY Act would establish a federal market structure framework for digital assets. It requires 60 Senate votes to pass, while Republicans currently hold 52 seats.
Although Republicans released updated bill text this week, some Democrats said its ethics provisions remain insufficient to address potential conflicts of interest and corruption concerns.
Fidelity reported $7.1 trillion in managed assets in its 2025 annual report, making its support a significant endorsement from the traditional financial sector.

North Korea Reportedly Arrests Former State Hackers
North Korean authorities have reportedly arrested former state cyber operators and IT specialists accused of hacking the country’s own financial institutions.
According to South Korean outlet Daily NK, the group allegedly breached the internal systems of North Korea’s central bank and Foreign Trade Bank, converted stolen state funds into cryptocurrency and laundered the assets through brokers based in China.
The report has not been independently verified. Information from North Korea is difficult to confirm because of the country’s strict controls on access and communication.
The case would be highly unusual if confirmed, as North Korea is widely accused of using state-backed hackers to steal cryptocurrency from foreign companies, rather than targeting its own banks.

BitMart to Shut Down After BMX Token Plunges 70%
Crypto exchange BitMart will close its trading platform after its native BMX token collapsed and users reported withdrawal delays.
The exchange has stopped accepting new registrations and deposits. Futures trading is now reduce-only, while spot markets no longer allow new orders. All trading services will end on Aug. 26, with the platform scheduled to cease operations entirely on Jan. 31, 2027.
BMX fell nearly 70% from about $0.31 to below $0.10. At the same time, several users reported that USDT withdrawals had remained pending for hours.
Arkham data showed BitMart-linked wallets holding around $71 million in assets, down from roughly $102 million on July 6. A large portion consisted of WFI tokens, while tracked USDT holdings were only about $91,000.
BitMart said some withdrawals may take longer because of additional compliance and security reviews. The shutdown follows similar closure announcements from BitMEX and Dango, adding to signs of consolidation across the crypto exchange industry.

Ether ETFs Outpace Bitcoin Funds as BTC Trading Volume Hits 2024 Low
U.S. spot bitcoin ETFs recorded about $8.05 billion in trading volume during the week ending Friday, their lowest total for a full five-session week since October 2024.
The funds attracted just $33.8 million in net inflows. Nearly $500 million of inflows recorded during the first three sessions was largely erased by $465.3 million in withdrawals on Thursday and Friday.
BlackRock’s IBIT posted approximately $95.5 million in weekly outflows, while Grayscale’s Bitcoin Mini Trust and the ARK 21Shares Bitcoin ETF attracted $85.8 million and $78.1 million, respectively.
Meanwhile, U.S. spot ether ETFs drew $103.9 million, more than three times the bitcoin funds’ total, outperforming them for a second consecutive week. BlackRock’s ETHA accounted for roughly $96.3 million of the inflows.
Over the past three weeks, ether ETFs have attracted $293.8 million, nearly matching bitcoin ETFs’ $306.9 million despite holding only about one-eighth as much in net assets.
Both categories remain in net outflows for 2026, with bitcoin ETFs down approximately $5.23 billion and ether ETFs down $1.15 billion.

Robinhood Eyes Crypto.com Prediction Markets Integration
Robinhood is reportedly in talks to add Crypto.com’s event contracts to its prediction markets hub, potentially increasing competition with existing partner Kalshi.
The proposed deal would allow Robinhood users to trade Crypto.com’s yes-or-no contracts directly within the brokerage app. However, discussions are still ongoing and may not result in an agreement.
Robinhood currently sources prediction contracts from Kalshi, ForecastEx and Rothera, a regulated exchange in which it invested in 2025. Adding Crypto.com would support a hybrid strategy that combines Robinhood-affiliated infrastructure with products from external venues.
Crypto.com launched its standalone U.S. prediction market platform, OG, in February through its CFTC-registered derivatives business. The company said weekly activity had increased roughly 40-fold over the previous six months.
The potential partnership comes as major financial and crypto platforms compete to control more of the fast-growing prediction market sector, including exchange and clearing infrastructure.

Why BitMEX Is Shutting Down — and Which Exchanges Could Be Next
BitMEX will close permanently on September 23, 2026, after 11 years in operation. The shutdown appears to be the result of three long-term pressures rather than a sudden financial collapse.
First, BitMEX lost the derivatives market it helped create. Once the dominant platform for leveraged crypto trading, its market share reportedly fell below 0.01%, with daily volume dropping to roughly $400,000 as traders moved to larger and more liquid competitors.
Second, years of regulatory and legal problems made the business harder to operate or sell. BitMEX and its founders faced major US enforcement actions over anti-money laundering failures, resulting in hundreds of millions of dollars in settlements and fines. Reports also suggest the company had searched for a buyer since 2025 without completing a deal.
Third, its large insurance fund may have complicated any potential sale. The fund still holds about 3,694 BTC and $30.8 million in USDT, worth nearly $270 million, despite the exchange’s sharply reduced trading activity. Questions remain over who ultimately controls those assets and how they will be distributed after closure.
BitMEX’s exit could be a warning for smaller exchanges that rely heavily on high-leverage derivatives but lack sufficient liquidity, diversified revenue and regulatory clarity. Platforms with declining volumes, unresolved legal exposure, limited cash reserves or no realistic acquisition path may face the greatest pressure.
The next closures are therefore more likely to involve small offshore derivatives exchanges rather than major platforms such as Binance, Coinbase or Kraken. These operators are increasingly being squeezed by dominant centralized exchanges, regulated competitors and fast-growing onchain platforms such as Hyperliquid.

US Flash PMIs Expected to Signal Continued Expansion
S&P Global’s July flash PMI surveys are expected to show continued growth across the US private sector, with manufacturing forecast to rise to 54.5 and services remaining slightly above the 50-point expansion threshold.
Investors will focus closely on input-cost commentary after a sharp increase in oil prices renewed concerns about inflation and potential Federal Reserve rate hikes. Signs that businesses are passing higher costs to consumers could strengthen the US dollar and place further pressure on EUR/USD.
The currency pair remains technically bearish in the near term, with initial support around 1.1370–1.1350 and resistance near its 20-day moving average at 1.1420.

Circle Executive Proposes EU Equivalence Framework for Foreign Stablecoins
Circle’s EU policy chief Patrick Hansen has proposed an “equivalence” framework that could allow stablecoins issued outside Europe to operate under MiCA without creating a separate EU-regulated token.
Under the current system, foreign issuers must establish a licensed European entity to serve EU customers. Hansen argues this excludes much of the market because about 99% of stablecoins are issued outside the bloc.
The proposal could theoretically create a path for Tether’s USDT to return to European exchanges after the company declined to comply with MiCA’s reserve requirements. However, a rapid return appears unlikely because Tether is based in El Salvador and USDT has not been adapted to the new US regulatory framework.
Introducing equivalence would require amendments to MiCA, potentially through the regulatory review launched in May 2026.

Nvidia CEO Defends Open AI Models Against Early Restrictions
Nvidia CEO Jensen Huang used his first post on X to support open-weight AI models and warn US policymakers against imposing premature restrictions that could weaken competition and push innovation overseas.
Huang shared a letter signed by 25 organizations, including Microsoft, Meta and Hugging Face, arguing that downloadable and reusable models are essential to US technological leadership. The signatories also said openness improves safety by allowing more researchers to inspect models, identify vulnerabilities and develop fixes.
The debate has intensified following the release of Moonshot AI’s Kimi K3 and concerns in Washington about advanced Chinese models. OpenAI and Anthropic did not sign the letter and have taken a more cautious position on the national-security risks posed by powerful open models.

CLARITY Act Faces Senate Delay as Ethics Dispute Deepens
The CLARITY Act is unlikely to pass before the Senate’s August recess despite growing support from crypto industry groups and law-enforcement organizations.
The bill previously passed the House with support from 78 Democrats, but it still needs 60 votes in the Senate, where Republicans hold 53 seats. Democratic negotiators say the latest ethics provisions are too weak to address President Donald Trump’s reported crypto profits and potential conflicts of interest.
Critics argue that enforcement would remain largely under Trump’s Justice Department, state authorities would have limited power, and assets launched before an official takes office could be exempt. The proposed restrictions would also expire in 2029.
Senate Majority Leader John Thune said lawmakers may begin considering the bill but are unlikely to complete a final vote before the recess. Galaxy Research has cut its estimated probability of passage in 2026 to 30%, while prediction-market odds have fallen to around 37%.

Intel and AMD Slide Despite Strong AI Developments
Intel shares fell about 11% despite reporting $16.1 billion in quarterly revenue, beating analyst expectations by roughly $1.7 billion and recording its strongest growth in more than 15 years. Its data center and AI division grew 59% to $6.3 billion.
AMD also declined 5.5% after announcing a major Anthropic partnership involving 2 gigawatts of chip capacity and a $5 billion investment.
The simultaneous selloff suggests broader weakness across the semiconductor sector rather than company-specific disappointment. The SOXX chip ETF remains nearly 16% below its June peak, while rising Treasury yields and geopolitical concerns have added pressure to technology stocks.
Social media linked Intel’s decline to Jim Cramer’s bullish comments, but historical research suggests his recommendations typically influence far smaller amounts than the tens of billions of dollars erased from Intel’s market value.

Coinbase Chief People Officer to Leave After Major Layoffs
Coinbase Chief People Officer Lawrence Brock will leave the company on August 17, just 11 weeks after his team oversaw the dismissal of roughly 700 employees, representing about 14% of the workforce.
The May restructuring reduced Coinbase’s headcount from approximately 5,000 to 4,300 and is expected to cost between $50 million and $60 million, primarily in severance payments. Coinbase said the cuts were intended to lower expenses and prepare the company for the “AI era.”
Brock will remain an adviser until November 30 and receive $182,500 for the three-month period. Dominique Baillet is expected to succeed him. Coinbase did not disclose a reason for his departure or connect it to the layoffs.
His exit follows several other senior leadership changes as Coinbase expands beyond crypto into stocks, derivatives and regulated prediction markets.