Researchers say broad HTX tainting could freeze legitimate users and make compliance tools less useful for tracing illicit funds. Blockchain researchers have raised concerns about the United Kingdom's sanctions against crypto exchange HTX, arguing that the move may have created broad collateral damage across the industry's compliance system. In an X post, Galaxy Digital's head of research, Alex Thorn, said the UK adding “all of HTX” to its sanctions was “problematic” because the exchange has many legitimate users. Thorn pointed to differences in how stablecoin issuers decide when to freeze tokens, saying there’s a big divergence in enforcement practices. Security researcher Taylor Monahan said in an X post that the HTX sanctions undermined years of work to encourage decentralized finance (DeFi) protocols to screen and block stolen funds. She argued that most HTX users are legitimate. Read more
StarkWare and Sui roll out confidential transfer systems as Zama boosts compliance efforts and Zcash’s Orchard bug highlights risks in shielded privacy models. StarkWare and Sui launched new privacy features this week that allow users to conceal transaction data without fully sacrificing auditability or regulatory oversight. StarkWare said Tuesday that it launched STRK20, a privacy framework for ERC-20 tokens on Starknet that allows users to shield balances and transaction data while providing mechanisms for disclosure under certain circumstances. Eli Ben-Sasson, co-founder and CEO of StarkWare, told Cointelegraph that "compliance-ready" does not mean STRK20 itself determines legal compliance or guarantees regulatory approval. He said the framework is built around a risk-based model in which privacy is conditional rather than absolute, with screening applied at entry into the shielded pool and viewing-key-based disclosure available under lawful request. Read more
One of MiCA's architects said he sees no need to regulate DeFi as the European Commission gathers feedback on the framework's future. The European Union should focus on a broader digital asset framework covering real-world assets and tokenization instead of regulating decentralized finance through a second version of the Markets in Crypto-Assets Regulation (MiCA), an adviser at the European Commission said. The European Commission launched a public consultation on MiCA in May, seeking feedback through Aug. 31. "I do not believe that [MiCA] is outdated now. That’s my personal opinion, but it does not matter. That’s why we have this consultation,” Peter Kerstens told Cointelegraph during a fireside chat at WAIB Summit Monaco 2026. Read more
Bitcoin trader said that BTC price was approaching its cycle bottom "window" with the $53,000 cycle midpoint a potential buy-in level. Bitcoin (BTC) should see new all-time highs in 2028, a trader says as $53,000 becomes an important buy-in level. Key points: Read more
Humanity Protocol's Terence Kwok said some multisig keys may have been accidentally backed up to a compromised device during setup. Humanity Protocol said an employee's laptop compromise allowed attackers to seize bridge controls, upgrade contracts and steal over $36 million in H tokens. In an incident update on Tuesday, the protocol said the Monday attack affected the H token across Ethereum and BNB Chain. The team said three of six Gnosis Safe owner keys were compromised, allowing attackers to take control of bridge administration on both networks. Once they had control, the attackers changed the bridge contracts into different malicious versions, Humanity said. On Ethereum, they drained around 141.2 million tokens. On BSC, they added a function that let them create unlimited tokens, then minted 200 million tokens directly to their own wallet. Read more