Crypto Weekly Market Wrap August 10 – BIP-110 Fallout, Security Breaches, Regulations and Institutional Moves

The crypto market saw a dense week of regulation, security incidents, institutional moves, and corporate treasury changes. Exchanges adjusted operations, governments tightened supervision, and several firms increased digital asset portfolios.

Meanwhile, major security cases allowed enforcement and infrastructure risks to draw the focus. Other key policy issues surrounding the week’s broader crypto agenda included Bitcoin policy, stablecoin rules, custody transitions, and institutional adoption. In the sections below, we will discuss major developments that made headlines last week.

Strategy Builds Cash Reserve After Bitcoin Sale

Strategy sold 1,638 BTC between July 27 and August 2. The sale generated about $104.7 million. Holdings fell to 842,138 BTC afterward. Notably, Strategy received an average of $63,957 per coin. Meanwhile, Strategy sold 3.01 million MSTR shares for $290.6 million. It placed $250 million into its dollar reserve. That reserve reached $4 billion. Strategy also repurchased 912,143 STRC shares for $81.2 million. It maintained STRC’s 12% annual dividend.

BitMine Expands Ethereum Holdings and Share Buybacks

BitMine added 10,399 ETH during the week ending August 2. Its total Ethereum holdings reached 5,797,800 ETH. That amount represented about 4.8% of Ethereum’s supply. Additionally, BitMine had staked 4,917,200 ETH. Current yields implied roughly $247 million in annualized staking revenue. The company also repurchased 4.5 million common shares. Total buybacks since July reached 16.1 million shares after the latest purchases.

Bitget Starts Phased Exit From Japanese Market

On August 3, crypto exchange Bitget stopped accepting new registrations from Japanese residents as it began leaving the market. Meanwhile, Bitget set November 1 for account restrictions.

WSX News 🇯🇵: Bitget is reportedly preparing to withdraw from the Japanese market, with restrictions on accounts held by Japanese residents set to take effect from November 1.

The move marks a significant shift for @bitget as regulatory requirements continue to shape how global… pic.twitter.com/M8FKxohf1K

— WallStreetX (@WallStreetXHQ) August 3, 2026

After November 1, affected users can only reduce or close positions. Bitget will disable new trading activity for those accounts. Remaining positions will close automatically after December 31. The exchange also urged users to withdraw assets before that deadline.

South Africa Drafts Cross-Border Crypto Rules

South Africa proposed new reporting rules for crypto transfers involving offshore providers and private wallets on August 3. FinSurv would receive reports on qualifying cross-border flows. Under the proposal, domestic transfers between authorized local providers generally avoid cross-border reporting. Individuals could move crypto abroad within existing allowances. Companies would face tighter limits. Transfers from offshore providers to domestic platforms would count as capital imports.

Crypto Group Defends CLARITY Act Enforcement Powers

The Blockchain Association rejected claims that the CLARITY Act would weaken anti-money laundering enforcement. Its August 3 letter answered concerns from the National Sheriffs’ Association. The group said regulated intermediaries would still face Bank Secrecy Act duties. It also argued that DeFi developers without control over user funds would not automatically face financial regulation. The bill would authorize billions for digital asset investigations, training, analytics, and related enforcement resources.

Coldcard Exploit Losses Exceed $100 Million

Galaxy Research stated that confirmed Coldcard exploit losses exceeded $100 million by August 4. Notably, researchers linked 1,596 BTC to 7,300 addresses. They identified three confirmed attack waves and fourteen smaller incidents. Meanwhile, suspected losses could approach 2,000 BTC, or nearly $130 million, if unconfirmed cases prove connected. Researchers linked the incident to weak randomness in some firmware versions. That weakness may have allowed attackers to predict recovery phrases and access Bitcoin.

Former FBI Supervisor Faces Crypto Theft Charges

Federal prosecutors charged former FBI supervisor Patrick Steven Yaroch over alleged cryptocurrency theft on August 4. Meanwhile, authorities accused Yaroch of moving $1 million from wallets tied to investigations.

Former FBI Supervisor Charged Over Nearly $1 Million Crypto Theft

Former FBI supervisory agent Patrick Steven Yaroch has been charged after allegedly using internal bureau systems to obtain access credentials for cryptocurrency wallets linked to an adversarial country and… pic.twitter.com/NQe78fjn69

— Wu Blockchain (@WuBlockchain) August 4, 2026

Investigators recovered about $925,426 in cryptocurrency and $165,582 from a Kraken account. Court records also described seed phrases, a Trezor wallet, and electronic searches. Yaroch allegedly accessed investigation-linked wallets using recovery information found through FBI work.

Nigeria Sets New Crypto Tax Reporting Rules

Nigeria’s Revenue Service introduced tax guidelines for exchanges and peer-to-peer marketplaces on August 4. Platforms must report customers and remit taxes on eligible digital asset activity. Taxable disposals generally face a 1% withholding requirement. Notably, stablecoin sales avoid that 1% charge. Platforms must also withhold 10% from staking, mining, airdrops, and DeFi earnings. Recordkeeping rules cover customer identities, transaction values, dates, costs, and counterparties.

Coinbase Sets September Deribit Migration Date

On August 4, Coinbase plans to move institutional International Exchange accounts to Deribit on September 9. The transfer covers balances, accounts, and overseas derivatives positions. Meanwhile, trading should pause for 30 minutes during the cutover. Coinbase will cancel orders, settle balances, and rebuild open positions. Institutions must replace API credentials. They also need to close margin loans before the migration begins.

Arthur Hayes Links AI Credit Risk to Bitcoin

Arthur Hayes argued that heavy AI infrastructure spending could create a future credit crisis on August 5. Slower construction growth could pressure weaker borrowers and lenders. Hayes expects government support or new liquidity if financial stress expands. Under his scenario, Bitcoin could benefit from that liquidity. He said Bitcoin might trade between $60,000 and $70,000 before a stronger recovery. His longer-term forecast reaches $1 million.

Bitwise Says Crypto Growth Can Outlast Delay

Bitwise CIO Matt Hougan said crypto can keep growing without an immediate CLARITY Act vote. On August 5, he stressed that increasing uncertainty might cause some institutions to remain cautious. Despite that, he believes that regulatory and financial uptake will continue.

JUST IN: Bitwise CIO says the crypto industry will keep moving whether CLARITY passes this week or not, as SEC rulemaking could fill gaps—though future administrations could shift policy. $BTC $ETH pic.twitter.com/oxt68WbH5l

— Bpay News (@bpaynews) August 5, 2026

Hougan referenced a likely SEC rulemaking and growing Wall Street blockchain participation. He also added that a missed deadline in August would not officially end the bill.

Taiwan Expands Travel Rule for Crypto Transfers

Taiwan announced on August 5 that it plans to apply the crypto travel rule to domestic platform transfers in October. Registered providers must exchange sender and recipient information for every transfer. Transfers above NT$30,000 require additional identity information. Individuals must provide birth dates and residential addresses. Companies must provide identification numbers and registered addresses. Receiving platforms must compare transmitted beneficiary details with existing customer records.

Japan Creates Dedicated Crypto and Stablecoin Division

On August 5, Japan’s Financial Services Agency created a Crypto Assets and Stablecoins Division, which took effect on August 7. The unit brings crypto, blockchain, digital payments, and monitoring functions together. It sits under a newly formed supervisory bureau. The restructuring does not introduce new cryptocurrency laws or licensing requirements. Instead, it reorganizes existing responsibilities. The current crypto monitoring office and innovation functions move under the new division alongside digital payments planning.

Binance Affiliates Seek Damages From RedotPay

On August 5, Binance-linked companies stated that they are seeking about $472.8 million from RedotPay-related defendants in Hong Kong. The claim alleges more than 470,000 Binance Card users were diverted. The filing also alleges roughly $304 million moved from Binance Pay into the competing card ecosystem. RedotPay rejected the claims and said operations would continue. A related case in Singapore adds another legal track.

Russia Establishes Broad National Crypto Framework

President Vladimir Putin signed Russia’s first comprehensive cryptocurrency framework on August 6. The law applies to exchanges, custodians, brokers, miners, investors, and digital assets. Most provisions take effect September 1.

Putin Signs Landmark Law Legalizing Crypto Trading In Russia

Russian President Vladimir Putin has signed a law creating the first legal framework for crypto trading in the country.

The law covers exchanges, brokers, custodians and clearing houses.

Retail investors can buy… pic.twitter.com/BpLfFVvq90

— BSCN (@BSCNews) August 6, 2026

Authorized intermediaries also impose an annual limit on retail investors’ purchases. Once investors pass suitability checks, they will be able to access a broader allocation. Domestic crypto payments are still illegal. However, the law permits certain digital asset settlements, limited foreign trade settlements, mining-related transactions, and system fees.

MiCA Transition Triggers New Crypto Scam Warnings

On August 6, European regulators warned that fraudsters were exploiting MiCA licensing changes to impersonate exchanges and watchdogs. Criminals targeted users moving assets from unlicensed firms. Therefore, regulators urged users to verify websites and official license registers before transferring crypto. More than 1,700 unlicensed firms could leave the European market. Authorities said urgent transfer requests can make genuine instructions harder to identify.

Bitcoin Red Team Flags Thousands of Issues

Bitcoin Red Team identified 4,962 potential security issues across 390 open-source projects on August 6. It flagged 85 potential critical vulnerabilities and 635 high-severity findings. Researchers combined AI-assisted tools with manual testing. They reproduced 21.4% of reported issues during early verification. Critical findings went privately to affected developers. The campaign expanded after the Coldcard wallet flaw drew greater attention to Bitcoin software security.

Coinbase Adds Weekday US Stock Trading in UK

Coinbase started rolling out 24/5 access to nearly 4,000 U.S. stocks for eligible UK users on August 6. Customers can trade equities alongside crypto and cash within the mobile application. Fractional purchases start from £1.

We’re accelerating the Everything Exchange in the UK.

Every Coinbase UK user can now trade US stocks, and crypto in one single app.

Zero commission, 24/5 access, with as little as £1. pic.twitter.com/vti6jfEmhd

— Coinbase 🛡️ (@coinbase) August 6, 2026

The service charges no trading commission on stock trades. Users can fund purchases with pounds or USDC held in the app. Trading runs throughout weekdays, including outside standard U.S. market hours, but stops on weekends.

StrongBlock Loses Funds After Governance Takeover

An attacker drained about $72,000 in STRONG and STRNGR tokens from StrongBlock. On August 6, Defimon Alerts said the attacker gained majority voting power cheaply. Moreover, the malicious proposal passed through the protocol’s normal governance process.

After securing administrator rights, the attacker upgraded the Governor proxy with a new contract. That contract allowed arbitrary calls from the attacker’s account. The attacker then removed 32,695 STRONG and 383,447 STRNGR tokens from the pool.

Bybit Sues North Korea And Lazarus Group

On August 6, Bybit filed civil litigation against North Korea, its intelligence directorate, and the Lazarus Group. It concerns the theft last February. The exchange seeks stolen funds, about $1.5 billion in compensation, punitive damages, and treble damages. Authorities already froze or recovered about $75.5 million. By filing time, 90.2% of the stolen haul had become untraceable.

Moscow Exchange Plans Standalone Crypto Custody Platform

Moscow Exchange is planning an independent digital asset custody platform. On August 6, Russian media cited brokerage sources placing the launch in late 2026 or early 2027. The service would operate separately from existing trading systems.

The planned digital depository also stays separate from Russia’s National Settlement Depository. New legal requirements for digital depositories take effect September 1. Russia’s future regulated crypto market could therefore develop several separate liquidity and custody hubs.

Dunamu Wins Police Crypto Custody Contract

South Korea’s National Police Agency selected Dunamu to custody seized cryptocurrency through Upbit Custody on August 7. The one-year deal covers assets recovered across police investigations. The earlier procurement value was 267 million won.

Tender terms require round-the-clock monitoring, rapid asset acceptance, and full compensation for lost custodial assets. Dunamu led the final evaluation against seven competitors. The custody system uses cold wallets, distributed controls, and additional security measures.

IMF Flags Dollarization Risk From Local Stablecoins

On August 7, the IMF warned that local-currency stablecoins could increase demand for dollar-linked stablecoins in emerging markets. On-chain swaps can make switching between the two easier. That process may reduce reliance on banks and foreign exchange dealers.

JUST IN: IMF warns that domestic stablecoins could boost demand for USD stablecoins as on-chain swaps lower conversion costs and shift FX activity online. $USDSTABLE or relevant tickers depend on context. pic.twitter.com/etZ1IkzzeB

— Bpay News (@bpaynews) August 8, 2026

First Deputy Managing Director Dan Katz said stablecoins can improve payment access. However, they may also make capital flows harder to monitor. The IMF called for better regulation, stronger data, and more international cooperation.

CLARITY Act Moves Toward September Senate Vote

On August 8, Senate Majority Leader John Thune filed cloture on the motion to proceed with the CLARITY Act. The move puts the bill up for its first procedural hearing when senators are back September 14. Cloture needs 60 votes, but the Republicans have 53 seats in the Senate. Ethics caps, provisions on illicit financing, and stablecoin rewards are still under discussion. The House already approved H.R. 3633 by 294 votes to 134.

BTCPay Patches Critical Lightning Node Vulnerability

BTCPay Server confirmed on August 8 that the attackers exploited a critical flaw affecting LND-based Lightning nodes. The vulnerability exposed LND macaroon files and allowed unauthorized access. Developers released version 2.4.2 to close the gap. The update also regenerates exposed LND macaroons. Operators were urged to upgrade LND and replace credentials. Developers advised affected users to review peers, payments, and channel closures. Total losses and compromised server counts remain undisclosed.

Bitwise Sees Institutional Capital Driving Bitcoin Higher

On August 8, Bitwise CIO Matt Hougan said institutional investors could bring trillions of dollars into Bitcoin over the next decade. He cited advisers, pensions, insurers, family offices, and sovereign wealth funds as potential sources. Bitwise’s long-term model places Bitcoin near $1.3 million by 2035. Hougan said institutions control between $100 trillion and $200 trillion. A 1% allocation would represent roughly $1 trillion to $2 trillion in possible capital.

Grayscale Sees Crypto Progress Beyond Legislation

Grayscale said on Sunday that crypto development can continue even without passage of the CLARITY Act this year. The firm expects existing regulators to keep issuing guidance for different digital asset activities. 

🚨GRAYSCALE: CRYPTO KEEPS MOVING WITHOUT CLARITY ACT!

Odds of the market structure bill passing this year now look low, per @Grayscale Head of Research @LowBeta.

But no CLARITY won’t stop major blockchains, Bitcoin demand, or stablecoin growth, the industry has advanced nearly… pic.twitter.com/oFvBkeSpY5

— Crypto Banter (@crypto_banter) August 9, 2026

Meanwhile, Grayscale highlighted stablecoin payments, tokenized securities, and SEC rulemaking as areas that can progress under current authority. Still, the firm said comprehensive legislation could provide companies with stronger long-term regulatory certainty.

Saylor Says BIP-110 Miner Support Has Failed

On August 9, Michael Saylor said about 99.85% of Bitcoin mining power stayed on the main network. The BIP-110 branch held roughly 0.15% hashpower. The branch mined only two blocks and fell more than 80 blocks behind. Saylor estimated its first difficulty adjustment could take decades at that pace. BIP-110 requires 55% miner signaling and temporarily limits several non-payment data methods.

Digital Asset Investment Products Market Overview

According to data from Sosovalue, U.S. spot Bitcoin ETFs attracted $853.54 million last week, their strongest total since mid-April. The funds posted inflows across all five sessions. Wednesday led with $244.4 million, while Tuesday added $211.5 million. BlackRock’s IBIT captured $693.7 million, while Fidelity’s FBTC drew $116.4 million.

Spot Ether ETFs added $244.9 million, extending their positive run to five consecutive weeks. Combined Bitcoin and Ether inflows reached roughly $1.1 billion. Bloomberg analyst Eric Balchunas linked part of the demand to concerns following the Coldcard wallet exploit.

The bitcoin ETFs just clocked their best week in flows (about $1b) since April and the 3rd best week since the good ole days were ruined by the Silent IPO last Oct. IBIT, FBTC and few others saw inflows every single day since Coldcard hack, making it hard not to see causation in… pic.twitter.com/5GnmkvD5g4

— Eric Balchunas (@EricBalchunas) August 8, 2026

Meanwhile, Hyperliquid ETFs gained $2.84 million after three weeks of outflows. XRP ETFs added $1.01 million, lifting cumulative inflows above $15 billion. Solana ETFs gained $144,930, while Dogecoin ETFs recorded $82,640.

Bitcoin Price Performance

Bitcoin recorded an impressive performance last week, surging by more than 3%. The asset surged from lows of $62K and tested the $65K region before facing a minor pullback. As of this publication, BTC was exchanging hands around $65,145, with a market capitalization of $1.30 trillion.

On the technical front, BTC has extended its bullish reversal from the key support zone around $57,490. The price is approaching the immediate resistance at $67,290 as the bullish momentum gears up. Should the current trend hold further, BTC could rally toward the key resistance mark at $82,788.

Indicators such as the Relative Strength Index and Moving Average Convergence Divergence indicate a further upward journey. The 14-day RSI has recovered to 41 levels, indicating easing selling pressure. Moreover, the MACD line has formed a crossover above the signal line, indicating robust bullish momentum in the market.