hodler

3 Feb 2026, 16:58

Will China Rugpull Gold?

Gold has returned to $5,000 with this editorial arguing its rise is due to China's debt and economic troubles that echo 2008.

3 Feb 2026, 05:30

Fenwick Reaches Proposed Deal With FTX Users in Fraud Lawsuit

The lawsuit stems from allegations that Fenwick & West helped facilitate fraud at FTX. At the same time, US crypto regulation is facing renewed scrutiny after New York prosecutors warned that the recently enacted GENIUS Act could weaken protections for fraud victims by giving major stablecoin issuers like Tether and Circle too much discretion over whether to freeze or recover illicit funds. FTX Users Near Settlement With Fenwick FTX users and law firm Fenwick & West have reached a proposed settlement in a class-action lawsuit that accused the firm of helping facilitate the fraud that led to the crypto exchange’s collapse. This is according to a joint court filing made on Friday. Lawyers for Fenwick & West and attorneys representing FTX users told a Florida federal court that they plan to formally submit the settlement for approval on Feb. 27. While the filing did not reveal the financial or legal terms of the agreement, both sides requested that the court pause all existing deadlines and pending motions in the case while the settlement is finalized. Joint filing from Fenwick & West and FTX users (Source: CourtListener ) The lawsuit against Fenwick & West was filed in 2023 and later amended in August as part of a multidistrict litigation that followed the dramatic collapse of FTX in late 2022. That litigation includes claims against former executives, celebrity promoters, and professional service firms that worked with the exchange. In their complaint, FTX users alleged that Fenwick played “a key and crucial role” in enabling the fraud, and argued that the exchange’s misconduct would not have been possible without the firm’s legal guidance. The lawsuit claimed Fenwick provided “substantial assistance” by designing and approving corporate structures that allegedly allowed improper conduct to continue unchecked. According to the plaintiffs, Fenwick advised FTX on how to structure its business in ways that avoided money transmitter registration requirements and had insight into the commingling of customer funds. The complaint further alleged that the firm had visibility into the blurred operational boundaries between FTX and its affiliated trading firm, Alameda Research. Fenwick denied the allegations and fought to have the case dismissed by arguing that it was not liable for aiding and abetting a fraud it claimed to have no knowledge of. The firm maintained that it provided routine, lawful legal services and was not involved in or aware of any fraudulent activity at the exchange. In November, however, the court allowed the amended complaint to proceed, rejecting Fenwick’s motion to dismiss and keeping the case alive. That ruling increased pressure on the parties to explore a negotiated resolution. If approved, the Fenwick settlement will remove another major professional services defendant from the sprawling FTX litigation. Prosecutors Raise Alarm Over Stablecoin Law In other legal news, Several New York prosecutors raised concerns that a new US federal stablecoin law could weaken protections for fraud victims, and warned that it may give major issuers legal cover to avoid accountability. According to a CNN report that was published Monday, New York Attorney General Letitia James and four New York district attorneys signed a letter criticizing the GENIUS Act, arguing that the legislation fails to adequately address fraud in stablecoin markets. The prosecutors said the law could allow stablecoin issuers to continue practices that make it difficult for victims to recover stolen funds, effectively shielding companies from responsibility. (Source: Tokeny) The letter specifically mentioned Tether and Circle, alleging that both firms have profited from criminal activity involving stablecoins. Prosecutors accused Tether of freezing only some suspicious USDT transactions and retaining broad discretion over whether to assist law enforcement. As a result, they argued, funds stolen and converted into USDT are often never frozen, seized, or returned to victims. The letter also criticized Circle by saying that while the company portrays itself as a partner in fighting financial crime, its policies were “significantly worse than those of Tether” when it comes to helping fraud victims recover funds. Circle responded by defending its compliance record and regulatory posture. Chief strategy officer Dante Disparte said the company consistently prioritized financial integrity and adherence to US and global regulatory standards, and added that the GENIUS Act reinforces requirements for stablecoin issuers to comply with financial integrity rules while strengthening consumer protections. He said Circle has followed applicable rules as a US-regulated financial institution and intends to continue doing so. Tether also rejected the criticism by stating that it takes fraud, consumer harm, and the misuse of USDT seriously and maintains a zero-tolerance policy toward illicit activity. However, the company explained that it does not have a blanket legal obligation to comply with state-level civil or criminal processes in the same way a US-regulated financial institution would. Tether is headquartered in El Salvador, outside US regulatory jurisdiction.

3 Feb 2026, 03:05

Step Finance Hack: Devastating $40M Breach Exposes Executive Vulnerability in Solana Ecosystem

BitcoinWorld Step Finance Hack: Devastating $40M Breach Exposes Executive Vulnerability in Solana Ecosystem In a devastating blow to the Solana DeFi ecosystem, Step Finance confirmed a massive security breach resulting in approximately $40 million in losses on January 31, 2025. The Step Finance hack represents one of the most significant cryptocurrency security incidents of the year, originating from a compromised executive device rather than a protocol vulnerability. This breach has sent shockwaves through the blockchain community and raised urgent questions about operational security practices. Step Finance Hack Timeline and Immediate Response The Step Finance team first detected unusual transaction patterns during routine monitoring on Thursday morning. Within hours, investigators confirmed a security breach affecting the platform’s treasury and user funds. The team immediately initiated emergency protocols, including pausing certain contract functions and notifying major exchanges about the compromised assets. According to official statements, the breach occurred through a sophisticated social engineering attack targeting a senior executive’s personal device. The attackers gained access to critical authentication credentials, enabling them to bypass multiple security layers. Step Finance reported the incident to law enforcement agencies within six hours of discovery, demonstrating their commitment to regulatory compliance. The investigation revealed that the attackers moved funds across multiple blockchain networks in an attempt to obscure the transaction trail. Security analysts have identified several wallet addresses associated with the stolen assets, though recovery efforts face significant challenges due to the decentralized nature of the transactions. Technical Analysis of the Security Breach Unlike traditional smart contract exploits, the Step Finance hack exploited human operational vulnerabilities rather than code weaknesses. Security experts note this represents a troubling trend in cryptocurrency security—where sophisticated attackers target personnel rather than protocols. The breach methodology involved several distinct phases that security analysts have reconstructed. First, attackers conducted extensive reconnaissance on Step Finance team members through professional networks and social media. They then deployed targeted phishing campaigns disguised as legitimate business communications. Once they compromised the executive’s device, they extracted authentication tokens and gained access to administrative controls. The technical execution demonstrated advanced understanding of both blockchain technology and corporate security protocols. Attackers timed their actions during a period of reduced monitoring activity and executed transactions across multiple wallets simultaneously to maximize extraction before detection. Comparative Analysis with Previous DeFi Incidents Security researchers have drawn comparisons between the Step Finance hack and previous major DeFi breaches. The 2023 Multichain incident involved $126 million in losses through compromised administrator controls, while the 2024 Orbit Bridge attack resulted in $81 million stolen via private key compromise. These incidents collectively highlight a shift from smart contract exploits to infrastructure and personnel targeting. A comparative table illustrates key differences: Incident Year Amount Lost Attack Vector Recovery Status Step Finance Hack 2025 $40M Executive Device Compromise Under Investigation Orbit Bridge Attack 2024 $81M Private Key Theft Partial Recovery Multichain Breach 2023 $126M Administrator Control Minimal Recovery This pattern suggests that as smart contract security improves, attackers increasingly focus on human and operational vulnerabilities. The Step Finance incident particularly highlights the risks associated with single points of failure in administrative access controls. Impact on Solana Ecosystem and STEP Token The Step Finance hack has immediately affected the broader Solana DeFi ecosystem, causing temporary disruptions across several integrated platforms. The STEP token experienced significant volatility following the announcement, with trading volumes spiking as investors reacted to the security news. Major decentralized exchanges temporarily suspended STEP token trading pairs as a precautionary measure. Several key impacts have emerged across the ecosystem: Liquidity Reduction: Total value locked (TVL) in Step Finance protocols dropped approximately 65% within 24 hours of the announcement Partner Platform Effects: Integrated Solana projects implemented additional security reviews and temporarily limited cross-protocol functionality Regulatory Attention: Financial authorities in multiple jurisdictions have initiated preliminary inquiries into the breach and its implications Community Response: The Solana developer community has organized security working groups to address similar vulnerabilities across other projects The Step Finance team has explicitly advised users to refrain from interacting with STEP tokens until the investigation concludes and security measures receive comprehensive reinforcement. This recommendation aims to prevent secondary exploitation attempts that often follow major security incidents. Security Implications and Industry Response The Step Finance hack has triggered widespread reevaluation of security practices across the cryptocurrency industry. Security experts emphasize that device-level compromises represent an escalating threat vector requiring new defensive approaches. Several industry organizations have announced collaborative initiatives to address these emerging challenges. Notably, the Blockchain Security Alliance has established a new working group focused specifically on executive and operational security protocols. This group will develop standardized guidelines for device management, access controls, and incident response procedures tailored to cryptocurrency organizations. Simultaneously, hardware security manufacturers report increased demand for specialized devices designed specifically for cryptocurrency management. These devices typically incorporate multiple authentication factors, transaction verification requirements, and physical security features that significantly reduce vulnerability to remote compromise. Expert Recommendations for Enhanced Security Cybersecurity professionals specializing in blockchain technology have issued specific recommendations following the Step Finance incident. These recommendations focus on mitigating similar vulnerabilities across the industry through procedural and technical improvements. First, experts advocate for mandatory implementation of multi-party computation (MPC) for all administrative functions. This approach distributes control across multiple parties, eliminating single points of failure. Second, they recommend regular security audits that specifically evaluate personnel and operational vulnerabilities rather than focusing exclusively on code. Additionally, security specialists emphasize the importance of comprehensive employee training programs addressing social engineering threats. They note that cryptocurrency organizations often prioritize technical security while underestimating human factor vulnerabilities. Finally, experts recommend establishing clear incident response protocols that include immediate communication strategies and predefined recovery procedures. Investigation Progress and Recovery Efforts Law enforcement agencies in multiple jurisdictions have coordinated their investigation into the Step Finance hack. The international nature of blockchain transactions requires cross-border cooperation, which authorities have established through existing cryptocurrency crime task forces. Investigators are currently tracking the movement of stolen assets across various blockchain networks and centralized exchanges. The Step Finance team has engaged blockchain forensic specialists to assist with asset tracing and recovery efforts. These specialists employ advanced analytics tools to identify transaction patterns and potential points of intervention. While complete recovery remains challenging, previous incidents demonstrate that coordinated efforts can sometimes reclaim significant portions of stolen funds. Simultaneously, the team is conducting a comprehensive internal security review. This review examines all aspects of their operational security, from device management policies to access control procedures. The findings will inform a complete security overhaul before the platform resumes full operations. Conclusion The Step Finance hack represents a significant security incident with far-reaching implications for the cryptocurrency industry. This $40 million breach highlights critical vulnerabilities in operational security practices, particularly regarding executive device management and access controls. The incident underscores the evolving nature of cryptocurrency threats, where attackers increasingly target human factors rather than technical vulnerabilities. As the investigation continues, the broader industry must absorb crucial lessons about comprehensive security approaches. The Step Finance hack serves as a stark reminder that technological sophistication alone cannot guarantee security—robust procedures, continuous education, and layered defenses remain equally essential. The platform’s recovery and security reinforcement efforts will likely establish important precedents for how cryptocurrency organizations respond to and prevent similar incidents in the future. FAQs Q1: What exactly happened in the Step Finance hack? The Step Finance hack involved attackers compromising an executive’s personal device to gain unauthorized access to platform controls, resulting in approximately $40 million in stolen cryptocurrency assets from the Solana-based DeFi project. Q2: How does this hack differ from typical smart contract exploits? Unlike most DeFi hacks that exploit code vulnerabilities, this breach targeted human operational security through device compromise and social engineering, representing a shift in attacker strategies toward personnel rather than protocols. Q3: What should STEP token holders do following this security breach? Step Finance has advised users to refrain from interacting with STEP tokens until the investigation concludes and enhanced security measures are implemented. Token holders should monitor official communications for updates on recovery efforts and platform restoration. Q4: How might this incident affect other Solana ecosystem projects? The breach has prompted security reviews across the Solana ecosystem, with many projects implementing additional safeguards and reviewing their operational security practices to prevent similar incidents. Q5: What are the chances of recovering the stolen $40 million? While cryptocurrency recovery remains challenging, coordinated efforts between law enforcement, blockchain forensic specialists, and exchanges have successfully recovered portions of stolen funds in previous incidents. The international investigation continues to trace asset movements. This post Step Finance Hack: Devastating $40M Breach Exposes Executive Vulnerability in Solana Ecosystem first appeared on BitcoinWorld .

2 Feb 2026, 14:45

Linq’s Revolutionary $20M Funding Enables AI Assistants to Thrive Within Messaging Apps

BitcoinWorld Linq’s Revolutionary $20M Funding Enables AI Assistants to Thrive Within Messaging Apps BIRMINGHAM, Ala., February 2025 – In a significant development for business communication technology, Linq has secured $20 million in Series A funding to transform how companies interact with customers through AI assistants living directly within popular messaging platforms. This strategic investment, led by TQ Ventures with participation from Mucker Capital and angel investors, validates Linq’s pivot from digital business cards to becoming the essential infrastructure layer for programmatic messaging across iMessage, RCS, and SMS channels. Linq’s Evolution From Business Cards to Messaging Infrastructure Founded by former Shipt executives Elliott Potter, Patrick Sullivan, and Jared Mattsson, Linq initially launched as a digital business card solution for sales teams. The company gradually evolved its technology stack, discovering through customer feedback that businesses sought more authentic communication channels. Specifically, companies wanted to send messages that appeared as regular blue-bubble iMessages rather than the distinct gray business messages that signal commercial interactions. This insight prompted Linq’s crucial pivot in early 2024. The company developed an API that enables businesses to message customers natively within iMessage, leveraging all the platform’s capabilities including group chats, emojis, threaded replies, images, and voice notes. Within eight months of launching this API in February 2025, Linq doubled the annual recurring revenue it had built over four previous years, demonstrating remarkable product-market fit. The AI Assistant Catalyst That Transformed Linq’s Trajectory The company’s trajectory shifted dramatically when an AI assistant called Poke approached Linq in spring 2024. Developed by the Interaction Company of California, Poke demonstrated how AI could handle tasks, answer questions, and manage calendars directly within iMessage without requiring a separate application. This interaction revealed a much larger market opportunity beyond traditional business messaging. “Poke went viral at launch last September, which led to our team being inundated with requests for tapping our messaging API,” explained CEO Elliott Potter. “Suddenly, numerous AI companies wanted to offer their chatbots and assistants directly through iMessage, RCS, and SMS.” This demand surge presented Linq with a strategic decision: continue serving B2B clients or pivot to become infrastructure for the emerging AI agent market. Strategic Pivot to AI Messaging Infrastructure Linq chose the latter path, recognizing that consumers increasingly suffer from app fatigue while developers seek simpler implementation methods. The company’s technology allows AI assistants to operate within existing messaging apps, eliminating the need for separate applications. This approach benefits both end-users and developers, creating a more seamless experience while reducing development complexity. The results have been substantial. Linq’s customer base expanded by 132% from the previous quarter, with average customer accounts growing by 34%. The platform now facilitates more than 30 million messages monthly, reaching 134,000 monthly active users through customer AI agents. Remarkably, the company achieved 295% net revenue retention with zero churn, indicating strong customer satisfaction and expansion. Technical Architecture and Competitive Landscape Linq operates within a competitive ecosystem dominated by established players. Apple’s Messages for Business service already enables commercial communication through iMessage, while Twilio has built an $18.26 billion business facilitating customer texting. However, Linq differentiates by enabling authentic-looking communications that blend seamlessly with personal messages. Messaging Platform Comparison Platform Message Appearance AI Integration Business Identification Traditional SMS Green bubbles Limited Obvious Apple Business Gray bubbles Basic Clear branding Linq iMessage Blue bubbles Advanced AI agents Authentic appearance RCS Business Enhanced features Growing Varied implementation The company’s technical approach focuses on several key advantages: Native integration with existing messaging platforms No additional apps required for end-users Full feature access to platform capabilities Scalable infrastructure supporting millions of messages Developer-friendly APIs reducing implementation time Market Context and Future Expansion Plans Despite impressive growth, Linq faces several challenges. The company currently builds on Apple’s platform, creating potential vulnerability if Apple restricts third-party AI chatbots similar to Meta’s platform restrictions. Additionally, iMessage dominates primarily in the United States, while global markets favor WhatsApp, WeChat, Telegram, and Signal. Potter acknowledges these considerations while outlining an ambitious expansion strategy. “Our vision for the platform is everything you need to build conversational technology,” he stated. “That’s not limited to a few channels. Right now, we have programmatic voice, iMessage, RCS, and SMS. That’s just the beginning.” The $20 million funding will support several strategic initiatives: Team expansion across engineering and sales departments Development of new go-to-market strategies Technology enhancement for additional messaging platforms International expansion planning Partnership development with AI companies Investor Perspective on Linq’s Potential Andrew Marks, co-founding Partner of lead investor TQ Ventures, expressed strong confidence in Linq’s direction. “By making AI-to-human communication as frictionless as texting a friend, Linq is enabling an entirely new category of companies,” Marks noted. “Linq’s founding team is extraordinary, and we have no doubt in their ability to execute on this massive opportunity.” This investment arrives during a period of significant transformation in business communication. The global business messaging market continues expanding rapidly, driven by consumer preference for messaging over traditional channels. Simultaneously, AI assistant capabilities have advanced sufficiently to handle complex tasks without dedicated applications, creating perfect conditions for Linq’s infrastructure approach. Conclusion Linq’s $20 million Series A funding represents more than just financial validation—it signals a fundamental shift in how businesses will communicate with customers through AI assistants. By enabling authentic, native messaging experiences across popular platforms, Linq addresses both consumer app fatigue and developer implementation challenges. The company’s remarkable growth metrics, including 295% net revenue retention and zero churn, demonstrate strong market demand for their infrastructure approach. As Linq expands beyond iMessage to additional platforms, their technology could fundamentally reshape business communication, making AI assistants as accessible and natural as texting a friend. FAQs Q1: What exactly does Linq’s technology enable businesses to do? Linq’s technology allows businesses to send messages that appear as regular iMessage conversations (blue bubbles) rather than obvious business communications. Their API enables native integration with iMessage features including group chats, emojis, threaded replies, images, and voice notes, creating more authentic customer interactions. Q2: How does Linq differ from Apple’s existing Messages for Business service? While Apple’s service enables business communication through iMessage, messages appear in distinct gray bubbles with clear business branding. Linq’s approach makes business messages appear identical to personal messages (blue bubbles), creating more authentic-seeming conversations that customers may prefer. Q3: What prompted Linq’s pivot from digital business cards to messaging infrastructure? Customer feedback revealed that businesses wanted more authentic communication channels with customers. The pivotal moment came when AI assistant company Poke demonstrated how AI could operate within iMessage, revealing a much larger market opportunity for messaging infrastructure supporting AI agents. Q4: What are the main challenges Linq faces despite its recent funding? Linq currently depends on Apple’s platform, creating potential vulnerability if Apple restricts third-party AI chatbots. Additionally, iMessage has limited global penetration compared to WhatsApp and WeChat, requiring platform expansion for international growth. Q5: How will Linq use the $20 million in Series A funding? The funding will support team expansion, development of new go-to-market strategies, technology enhancement for additional messaging platforms, international expansion planning, and partnership development with AI companies to broaden their infrastructure capabilities. This post Linq’s Revolutionary $20M Funding Enables AI Assistants to Thrive Within Messaging Apps first appeared on BitcoinWorld .

2 Feb 2026, 14:31

Epstein files spark false claims linking disgraced financier to Bitcoin control

Since the Department of Justice released another batch of the Jeffrey Epstein files to the public, many people have been interpreting some of the correspondence between the disgraced financier and his associates, among other things. One of the interpretations concerns Bitcoin, with an X user with the name Patric L Riley writing a post that implied that Epstein had a lot of influence on Bitcoin’s development. Riley wrote , “At the time this letter was written, there were around 12,000 commits to Bitcoin’s code. Today, there are 47,583 commits to Bitcoin’s code. That means that 74.79% of the Bitcoin core development and code was committed after Jeffrey Epstein took over the defacto senior management role as benefactor. He may not have been ‘Satoshi’, but he was absolutely running the executive direction of Bitcoin on behalf of Mossad. What are the odds that there are backdoors built into Bitcoin’s code at this point? Probably about 100%.” Riley made these assertions while sharing a screenshot of an email correspondence between the former head of the Massachusetts Institute of Technology (MIT) Media Lab, Joi Ito, and Epstein. He also tried to link the event to the FBI recovery of the Bitcoin ransom for the 2021 Continental Pipeline hack, writing, “P.S. Ever wonder how the Bitcoin ransome for the 2021 Continental Pipeline hack was ‘Recovered’ by the FBI? I didn’t.” However, the assertions seem to conflate indirect academic funding with operational control and highlight a misunderstanding in both Bitcoin’s governance structure and how open-source software development operates. What is the MIT connection? The newly released Epstein files reveal that the late financier donated $850,000 to MIT between 2002 and 2017, with $525,000 directed to the MIT Media Lab’s Digital Currency Initiative. In 2015, when the Bitcoin Foundation faced bankruptcy, MIT’s DCI became the institutional home for several Bitcoin Core developers, including Wladimir van der Laan, Gavin Andresen, and Cory Fields. Ito resigned in September 2019 after The New Yorker published an investigation into his attempts to conceal financial contributions from Epstein. The scandal exposed how Epstein’s donations helped fund developer salaries during a major funding gap, though the money flowed indirectly through MIT’s institutional mechanisms. Documents released last month show Ito thanking Epstein in a 2017 email titled “Digital Currency Initiative,” writing that gift funds “allowed us to move quickly and win this round” in recruiting Bitcoin developers. However, the notion that these constituted Epstein holding a senior management position in Bitcoin or its foundation is false because Bitcoin’s governance is decentralized, designed to resist influence from any single funding source. The three developers who joined MIT reportedly had no knowledge of the source of the funds and were paid by MIT. Multiple organizations now fund Bitcoin development transparently, including the Human Rights Foundation’s Bitcoin Development Fund and non-profit organizations like Brink. Is the Bitcoin backdoor allegation true? Riley’s claim that backdoors exist in Bitcoin’s code with “about 100%” probability rests on a misunderstanding of how the FBI recovered the Bitcoin stolen in the Colonial Pipeline ransomware attack that occurred in 2021. Although the FBI didn’t share a full breakdown of how it recovered the funds, it mentioned that it tracked the transactions until it got to a specific address for which the FBI had its private keys, enabling them to retrieve the funds. There was no mention of a vulnerability in Bitcoin’s code that was exploited. Bitcoin’s open-source nature means thousands of developers worldwide can review every line of code. X users have repeatedly called out Riley on this point, with one stating , “Bitcoin Core is fully open-source with thousands of independent contributors, rigorous peer review, reproducible builds, PGP-signed merges since late 2015, constant auditing by global developers, and no credible evidence of undetected malicious changes despite a decade of intense scrutiny.” The user also threw shade at Riley, asking him to channel his focus on the people abusing children. A networker, not a controller The newly unsealed Epstein files show that he was more embedded in Bitcoin’s early circles than previously reported, funding infrastructure projects and engaging with people now considered industry architects. One of the files showed that in 2014, Epstein invested in Blockstream , one of Bitcoin’s most important infrastructure firms, through an oversubscribed $18 million funding round. However, Blockstream’s CEO, Adam Back, has denied that Epstein invested in the company, writing on X, “In 2014, during Blockstream’s seed-round investor roadshow, the company was introduced to then MIT Media Lab director Joi Ito. Subsequently, Blockstream met with Jeffrey Epstein, who was described at the time as a limited partner in Ito’s fund. That fund later invested a minority stake in Blockstream. A few months later, Ito’s fund divested its Blockstream shares due to a potential conflict of interest and other concerns. Blockstream has no direct nor indirect financial connection with Jeffrey Epstein, or his estate.” In 2011, correspondence shows attempts to introduce Epstein to Bitcoin developers Gavin Andresen and Amir Taaki, though Taaki later wrote that he declined Epstein’s investment interest. In 2016, Epstein pitched a plan to a Saudi royal advisor involving the creation of two digital currencies, writing, “I have spoken to some of the founders of Bitcoin who are very excited”. Epstein also reportedly discussed Bitcoin with Peter Thiel in 2014. However, no crypto wallets, blockchain transactions, or crypto-enabled crimes have emerged in Epstein’s records. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

2 Feb 2026, 14:15

Ethereum's Price Halves Again

Ethereum has had its worst cycle ever. Worse than after the Slockit DAO hack when some thought it might die completely.