Coinkite, the company behind Coldcard, the hardware wallet affected by a vulnerability in its seed generation code, might face legal action from victims who have lost over $88 million in BTC over the last two days.

Bitcoin’s late-July rally collapsed into a $3,000 flash drop to $62,236 on July 31, erasing $40 billion in market capitalization. Total crypto market capitalization fell from $2.33 trillion to $2.22 trillion, while total altcoin market cap dropped to $964 billion.

Conflicting statements from Washington and Tehran have cast fresh uncertainty over the Strait of Hormuz, leaving global markets and governments watching to see whether diplomacy can prevent another escalation in one of the world’s most strategically important waterways.

The company, which is facing issues with its Coldcard wallet, sent security notices to customers to warn them about the high risk of losing their bitcoin. Nonetheless, Rodolfo Novak, co-founder and CEO of Coinkite, had assured that the company retained customer data for just 90 days after a purchase.

Michael Saylor’s latest tracker post has revived expectations that Strategy could announce another bitcoin purchase on Monday. The signal follows recent treasury sales that reduced the company’s holdings to 843,775 BTC.

This editorial is from this week’s edition of the newsletter Week in Review, se

This week’s stories mixed Bitcoin history, U.S. regulation, new financial markets, DeFi consolidation, and geopolitical pressure. Satoshi Nakamoto’s famous “I don’t have time to try to convince you” line turned 16, while Scott Bessent demanded an immediate Senate vote on the CLARITY Act. CME Group unveiled sports index futures, Aave moved to exit six low-use networks, and a Russian lawmaker warned citizens against Gram and Telegram transactions as Pavel Durov faced new charges.

On Jan. 10, 2026, a bitcoin and litecoin holder handed over their 12-word recovery phrase to someone posing as Trezor support and watched $282 million vanish in minutes, not because any encryption was broken, but because those 12 words are the entire wallet, and whoever holds them holds the funds.

The government of Russia has included the city of Moscow and other regions in a 2024 decree banning cryptocurrency mining activities from August 15 to December 31, 2032. The amendment also includes the Moscow region and some territories of the Kursk region.

New York Attorney General Letitia James urged Congress to strengthen cryptocurrency regulation as the FBI reported more than $11 billion in crypto-related losses. Her Senate testimony argued the pending CLARITY Act would weaken state enforcement against digital asset scams.

Fraudsters are mailing counterfeit IRS notices that direct cryptocurrency holders toward a fabricated compliance portal designed to capture sensitive financial information. The campaign targets wallet access, exchange credentials, identities, and digital assets through official-looking correspondence.

A standard six-sided die produces about 2.6 bits of unpredictable information with every roll. That may not sound like much, but repeated enough times, those rolls can create the raw randomness needed to secure a bitcoin wallet without relying on software or an electronic component.

South Korean police arrested three suspects accused of stealing 12.3 billion won, or about $9 million, from 71 XRP investors. Investigators traced 27.3 billion won through related wallets, indicating that total losses could rise.

Grayscale urged Senate leaders to schedule a CLARITY Act vote before the August recess, warning that delay threatens U.S. competitiveness. The bill would divide crypto oversight between federal regulators and establish nationwide market rules.

Elon Musk rejected a Wall Street Journal report claiming Tesla explored separating or selling its China business ahead of a potential SpaceX merger. The public dispute centers on one of Tesla’s largest operations and a report linking it to a broader corporate restructuring.