CoinPhoton

ETHZilla launches jet engine–backed token targeting 11% yield
Crypto treasury firm ETHZilla has launched Eurus Aero Token I, a tokenized offering backed by two commercial jet engines leased to a major U.S. air carrier. The tokens are priced at $100 each with a minimum purchase of 10, and the company targets an 11% return if held through the lease term ending in 2028.
The product is issued via its new subsidiary, ETHZilla Aerospace, as part of the firm’s broader shift from a pure crypto treasury model to real-world asset tokenization. ETHZilla, formerly biotech company 180 Life Sciences Corp, said it plans to expand tokenization to other asset classes, including home and auto loans, as on-chain RWA adoption continues to grow.

Crypto flows to suspected human trafficking networks rose 85% year over year in 2025, with total transaction volumes reaching hundreds of millions of dollars, according to a report by Chainalysis. Most activity is linked to networks in Southeast Asia and is closely connected to scam compounds, online casinos, and Chinese-language money-laundering groups.
The tracked activity includes Telegram-based escort services, forced labor recruitment tied to scam centers, prostitution rings, and vendors of child exploitation material. Stablecoins are the dominant payment method, especially for escort and prostitution services.
Chainalysis says blockchain transparency can help law enforcement detect and disrupt these operations by analyzing transaction patterns, wallet clusters, and exchange chokepoints. The firm highlighted several successful enforcement actions last year, including the takedown of a child exploitation platform supported by blockchain analysis.

U.S. spot bitcoin ETFs see $410 million outflows in second straight session
The 12 U.S.-listed spot bitcoin ETFs recorded a second consecutive day of net outflows on Thursday, with investors pulling $410.37 million as bitcoin slid to around $65,266 following stronger-than-expected U.S. payroll data.
According to SoSoValue, total outflows over the past two sessions reached $686.27 million. All funds posted zero or negative flows, while products from WisdomTree and Hashdex were flat on the day.
BlackRock’s IBIT led redemptions with $157.56 million in outflows, followed by Fidelity’s FBTC at $104.13 million. Funds from Grayscale and Bitwise together lost about $65 million.
Despite the pullback, cumulative net inflows into U.S. spot bitcoin ETFs since launch still stand at $54.31 billion, representing about 6.34% of total bitcoin market capitalization.
The move followed fresh labor data from the Bureau of Labor Statistics showing January payrolls rose 130,000, well above the 55,000 estimate tracked by Dow Jones. Forecast updates from Standard Chartered and JPMorgan also pointed to near-term caution but maintained higher long-term bitcoin targets.

Israel charges two over Polymarket bets on military secrets

Israeli authorities have arrested and indicted two individuals — a military reservist in the Israel Defense Forces and a civilian — for allegedly using classified military information to place bets on the U.S.-based prediction market Polymarket regarding potential military operations.

According to a joint statement by the Israel Ministry of Defense, the domestic security service Shin Bet, and the Israel Police, the reservist accessed secret operational information through his military role and shared it with the civilian, who then used the information to inform wagers. Prosecutors have filed charges including severe security offenses, bribery, and obstruction of justice.

The alleged bets reportedly involved prediction markets tied to Israel’s military actions and timeline, including forecasts about operations related to Iran, with winnings estimated around $150,000 according to local reporting. Officials have warned that exploiting classified data for financial gain poses a significant security risk and undermines operational integrity.

The case highlights growing concern about insider trading risks in prediction markets, especially when tied to confidential national security information. Legal proceedings are ongoing, and authorities say they will pursue anyone who illegally uses secret information for betting or profit.

PGI CEO gets 20 years for $200M bitcoin ponzi scheme
Ramil Ventura Palafox, CEO of Praetorian Group International, has been sentenced to 20 years in prison for running a $200 million bitcoin Ponzi scheme that defrauded more than 90,000 investors worldwide.
From late 2019 to 2021, he promised daily returns of 0.5%–3% from large-scale bitcoin trading, but instead used new investor funds to pay earlier participants. Authorities said over $201 million was deposited into the platform, with investor losses of at least $62.7 million.
According to the United States Department of Justice, he spent millions on luxury cars, real estate, hotels, and designer goods, and transferred cash and BTC to a family member. Under his plea deal, victims may seek restitution through the Federal Bureau of Investigation.

Seoul Gangnam Police Station confirmed that 22 BTC seized in a 2021 investigation were unknowingly drained from a USB-based cold wallet, with the loss only discovered during a recent internal audit. The physical device was not stolen, but the funds were siphoned out while the case was suspended, delaying detection.
Gyeonggi Bukbu Provincial Police Agency has opened an internal probe to determine how the breach occurred and whether any insider involvement played a role.
The discovery came amid a nationwide inspection triggered by a separate incident at the Gwangju District Prosecutors' Office, where investigators reportedly lost access to 320 BTC after falling victim to a phishing site.

Cardano has announced an integration with LayerZero to significantly expand cross-chain interoperability and potentially grow its DeFi ecosystem over the next 12–18 months.
Through LayerZero’s messaging infrastructure and OFT (Omnichain Fungible Token) standard, Cardano could gain technical access to over 160 blockchains and a pool of 400+ omnichain tokens representing more than $80 billion in market value. The approach avoids changing Cardano’s UTXO-based architecture and instead enables interoperability via cross-chain endpoints and messaging.
The move aims to reduce long-standing friction that limited Cardano’s access to cross-chain liquidity. Developers would be able to build omnichain apps from Cardano, while users could more easily move stablecoins and other assets across networks.
However, liquidity is not automatic. Real impact will depend on whether token issuers deploy on Cardano, stablecoin balances grow, and DeFi usage rises beyond its currently modest TVL and trading volumes. Interoperability creates the pathway — adoption must follow.

Coinbase reported a net loss of $667 million in Q4 2025 as weaker crypto market conditions reduced trading activity and revenue. Quarterly revenue fell 5% to $1.8 billion, with transaction revenue down 6% and subscription and services revenue down 3%. The loss was mainly driven by investment-related write-downs in its crypto asset and strategic investment portfolio.
Retail trading revenue dropped sharply, while institutional spot volumes declined, though derivatives trading helped lift institutional transaction revenue. Stablecoin revenue remained a bright spot, rising 3% as USDC balances on the platform reached new highs.
After the earnings release, Coinbase shares briefly fell to a two-year low in after-hours trading before rebounding amid volatility. Despite market pressure and recent insider share sales by the CEO, the company continues expanding into stocks, ETFs, derivatives, payments, and stablecoin infrastructure under its “Everything Exchange” strategy, and has already generated about $420 million in transaction revenue early in the current quarter, while warning that volatility remains high.

JPMorgan says Bitcoin’s estimated production cost — often viewed as a soft price floor — has fallen to about $77,000 from $90,000 at the start of the year due to declines in network hashrate and mining difficulty. The drop was driven by unprofitable high-cost miners shutting down and severe winter storms in parts of the U.S. that disrupted mining operations.
Analysts expect this trend to reverse as hashrate is already rebounding, which could push mining difficulty and production costs higher at the next adjustment. They note that recent difficulty declines resemble past miner capitulation phases, where higher-cost miners exit and sell holdings to cover expenses, but believe this washout is now stabilizing.
Looking ahead, JPMorgan remains positive on crypto markets in 2026, forecasting stronger institutional inflows supported by clearer regulation. The bank also reiterates a long-term Bitcoin price target of $266,000 based on volatility-adjusted comparisons with gold once market sentiment improves.

Crypto-backed PACs launch major midterm primary spending push
Crypto-aligned political groups have begun deploying significant funds in competitive US midterm primary races, aiming to shape House membership around digital asset policy.
Super PAC Protect Progress, affiliated with crypto political group Fairshake, said it will spend $1.5 million to oppose Rep. Al Green in an upcoming Democratic primary in Texas. The effort will fund advertising and voter outreach, citing his repeated votes against crypto market structure and stablecoin legislation and his support for SEC accounting guidance SAB 121 on digital asset custody.
Green, a longtime member of the House Financial Services Committee, has been openly skeptical of crypto’s economic and regulatory impact. He is facing Democratic challenger Christian Menefee, who has received favorable ratings from crypto advocacy groups.
Fairshake and affiliated committees previously reported about $193 million in cash on hand, with major backing from firms including Coinbase, Ripple, and Andreessen Horowitz, signaling an aggressive industry strategy ahead of the 2026 midterms.

DraftKings to scale Predictions platform across US states
DraftKings plans to expand its event-based wagering product DraftKings Predictions over the next year after launching it last December in 38 states, including California, Florida, Georgia, and Texas, where traditional sports betting is not legal.
CEO Jason Robins said the company sees a large incremental opportunity in the Predictions segment and will deploy growth capital to improve customer experience and attract millions of users, according to the latest quarterly report.
The standalone predictions app operates under oversight of the Commodity Futures Trading Commission and allows users to wager on real-world event outcomes, mainly sports-related. The rollout was supported through a partnership with Crypto.com.
DraftKings issued 2026 revenue guidance of $6.5–$6.9 billion, partly reflecting increased investment in Predictions, which contributed to a roughly 15% after-hours drop in its share price. Prediction markets have grown quickly since the 2024 US election cycle, led by platforms such as Kalshi and Polymarket.

Aave Labs has proposed sending 100% of revenue from Aave-branded products to the treasury of Aave DAO under a new “Aave Will Win Framework,” aiming to resolve governance tensions and better align the protocol with token holder interests.
The plan would route all swap fees, frontend income, and future product revenues (such as Aave Card and a potential ETF) to the DAO, and create a new foundation to hold trademarks and intellectual property. It also centers on launching Aave v4, which is expected to unlock new revenue streams and expand the protocol through a modular hub-and-spoke model, while gradually winding down v3.
In exchange, Aave Labs is requesting a large funding package from the DAO — including stablecoins, AAVE tokens, and targeted grants — to cover operations, product development, and marketing. The proposal has drawn criticism from influential DAO member Marc Zeller, who argues the ask is excessive and risks undermining governance norms. CEO Stani Kulechov has opened discussions with the community as debate over control, funding, and long-term structure continues.

Connecticut man charged with 21 counts in alleged crypto fraud scheme
Elmin Redzepagic has been charged in a 21-count indictment tied to an alleged crypto fraud scheme, according to the U.S. Department of Justice.
Prosecutors say he posed as a cryptocurrency investor delivering high returns, but instead directed investor funds to offshore gambling platform Stake.com, losing nearly $1 million between May 2021 and March 2025.
The charges include three counts of making false statements to IRS Criminal Investigation agents, seven counts of wire fraud, and 11 counts of international money laundering. Authorities allege he also fabricated additional “gas fees” to extract more money from victims.
Redzepagic pleaded not guilty and was released on a $500,000 bond.

US crypto market structure bill stalled over stablecoin yield and Trump ethics concerns
Crypto industry sources say US digital asset market structure legislation is currently stuck on two key issues: how to regulate stablecoin yield products and how to address conflict-of-interest concerns tied to President Donald Trump’s crypto activities.
Ron Hammond of Wintermute estimates the odds of sweeping crypto legislation passing in 2026 at around 25%, while other industry participants put the probability between 50% and 60%. Disagreements between banks and crypto firms over whether stablecoins should be allowed to offer rewards or yield remain the main sticking point, with banks warning of deposit outflows.
Banking and crypto representatives have recently held meetings at the White House, but negotiations remain tense. Anchorage Digital policy head Kevin Wysocki said a compromise is likely, noting banks may ultimately need a market structure bill as much as crypto firms.
Ethics questions linked to Donald Trump’s crypto ventures are adding further friction. An upcoming hearing by the Senate Banking Committee with SEC Chair Paul Atkins is expected to signal how Democrats will approach the issue.
The bill’s path forward remains uncertain after Coinbase previously withdrew support for a draft version, while the Blockchain Association said it continues working with lawmakers from both parties to advance a framework.

Hyperlane launches bridge to move WBTC between Ethereum and Solana
Hyperlane said its Nexus Bridge will enable users to transfer Wrapped Bitcoin (WBTC) between Ethereum and Solana, creating a canonical route for the tokenized Bitcoin asset to enter the Solana ecosystem.
WBTC is the first ERC-20 token backed 1:1 by Bitcoin and remains the largest tokenized BTC product, with a market cap around $8 billion. The asset is backed by Bitcoin reserves held in custody by BitGo and BiT Global.
WBTC drew scrutiny in 2024 after BitGo adopted a multi-jurisdictional, multi-institutional custody model with BiT Global, a firm linked to Justin Sun, prompting some projects to distance themselves from the token. Hyperlane said the new bridge is designed to provide secure, permissionless cross-chain access to Bitcoin-backed liquidity.

Standard Chartered cuts crypto price targets, warns of more downside ahead
Standard Chartered expects crypto prices to decline further in the coming months before recovering later this year, and has lowered its price targets for multiple major digital assets.
According to digital assets research head Geoffrey Kendrick, the market may see a final capitulation phase, with Bitcoin potentially falling toward $50,000 and Ether toward $1,400 before rebounding. The bank reduced its year-end targets to $100,000 for Bitcoin and $4,000 for Ether, down from prior forecasts.
The bank also cut end-2026 targets for Solana, XRP, BNB, and Avalanche, citing the need to realign altcoin projections with expected moves in Bitcoin and Ether.
Standard Chartered pointed to weakening ETF demand and macro uncertainty as key pressures, noting investors are less likely to buy dips while many ETF holders sit on unrealized losses. Kendrick added that limited policy support is expected until a potential leadership transition at the Federal Reserve involving Kevin Warsh.
Despite the bearish near-term outlook, the bank said the longer-term recovery trend for digital assets remains intact.

Coincheck returns to profit in Q3, CEO to step down March 31
Coincheck reported Q3 revenue of $915 million, up 17% year over year, and posted net income of $2.6 million, reversing a $98.5 million net loss in the same period last year.
Adjusted EBITDA fell 38% to $9.1 million as marketplace trading volume dropped 25% to $559 million. Customer assets stood at $6 billion, down 17% from a year earlier and 20% from the prior quarter, mainly due to price declines in Bitcoin, Ether, and XRP. Revenue was partly boosted by Aplo, a Paris-based institutional prime brokerage acquired last October, which contributed $83 million.
CEO Gary Simanson will resign effective March 31. He will be succeeded by Pascal St-Jean, CEO of 3iQ Corp., starting April 1.
The company also moved to increase its ownership in 3iQ through a stock purchase agreement with majority shareholder Monex Group, valuing 3iQ at about $111.8 million, with deal completion expected in Q2 2026 pending approvals.

Lighter partners with Circle to share revenue from $920M in USDC deposits
Lighter (LIT) has partnered with Circle to share revenue generated from roughly $920 million in USDC deposited on its platform, according to Velo.
Lighter is a zero-fee perpetual trading protocol, reporting about $112 billion in monthly perpetual trading volume and $922 million in total value locked. The project previously raised $68 million in funding backed by Ribbit Capital, Founders Fund, Robinhood, and Haun Ventures.
$LIT is currently trading at $1.47, with a fully diluted valuation of about $1.47 billion.

A Bitcoin wallet referenced in ransom notes tied to the disappearance of Nancy Guthrie has recorded new on-chain activity, adding another twist to the high-profile case. According to TMZ, a small transaction worth less than a few hundred dollars was sent this week to the address mentioned in earlier extortion letters.
Guthrie, 84, is the mother of NBC “Today” co-host Savannah Guthrie and has been missing from her Tucson, Arizona home since January 31. Since her disappearance, multiple ransom notes have been sent to media outlets demanding payment in Bitcoin in exchange for information about her whereabouts.
On Wednesday, a third letter reportedly surfaced, escalating the demand to 1 BTC—currently valued at around $67,500—promising to reveal the identities of those responsible. Authorities have not confirmed who initiated the recent wallet transaction or whether it is directly connected to the alleged kidnappers. It remains unclear if the transfer was a test payment or unrelated activity.
Meanwhile, law enforcement released surveillance footage showing a masked individual tampering with a Google Nest camera at Guthrie’s front door on the morning she vanished. FBI Director Kash Patel said newly recovered images show an armed person appearing to interfere with the device.
Investigators say the Bitcoin address could provide a valuable lead, as blockchain transactions can be traced in real time. However, experts caution that crypto tracing alone is not enough and must be combined with traditional investigative methods, particularly if the suspect attempts to cash out funds through a regulated exchange.
While no arrests have been directly tied to Guthrie’s disappearance, one man was briefly detained and released for questioning, and another individual has been charged separately for sending Bitcoin extortion texts to the family. The investigation remains ongoing, and Savannah Guthrie has publicly stated that she and her siblings are willing to pay a ransom for their mother’s safe return.

Bank of America expects the Bank of Japan to raise its policy rate from 0.75% to 1.0% at the April 27–28 meeting, with markets already pricing in roughly 80% odds. While a 25-basis-point hike seems modest, investors are focused on whether it could trigger a global yen carry trade unwind and forced deleveraging across risk assets, including Bitcoin.
History shows this risk is real. In August 2024, a sharp yen rally tied to carry trade unwinding sent Bitcoin and Ethereum down as much as 20% within hours, as margin calls and volatility-driven selling cascaded across markets. The BIS later described the episode as a case of forced deleveraging amplified by leverage in crypto derivatives.
However, today’s backdrop differs from 1995. The Federal Reserve still maintains rates far above Japan’s, preserving the structural appeal of borrowing yen to invest in higher-yielding assets. A move to 1% would not eliminate that gap, but it could shift expectations about the future rate path — and expectations drive currency volatility.
The key risk is not the hike itself, but a hawkish surprise combined with crowded positioning and thin liquidity. A sharp yen rally could trigger volatility-control selling, widen cross-currency basis spreads, and pressure leveraged positions, with Bitcoin likely behaving as a high-beta risk asset.
Another channel to watch is Japanese repatriation of U.S. Treasuries. As yield differentials narrow, Japanese institutions may gradually shift funds back home, potentially pushing U.S. yields higher and tightening global financial conditions — indirectly weighing on Bitcoin.
Three scenarios stand out:
A well-telegraphed, gradual hike: limited market impact, muted Bitcoin reaction.
A hawkish surprise: sharp yen rally, deleveraging, and a possible 10–20% Bitcoin drop.
No hike: weaker yen, carry trades rebuild, and Bitcoin benefits alongside other risk assets.