Polygon (MATIC)’s new Agent CLI gives AI agents complete blockchain infrastructure including wallets, swaps, and ERC-8004 identity support, all settling in stablecoins.
Polygon (MATIC) Labs has released the Polygon Agent CLI, a comprehensive toolkit enabling AI agents to autonomously manage wallets, execute swaps, bridge assets, and build verifiable onchain identities. The launch comes one day after the Lisovo hardfork activated a $1 million gas subsidy specifically for AI agent payments on the network.
What the CLI Actually Does
The toolkit bundles what would typically require five or six different integrations into a single npm install. AI agents get access to session-scoped smart contract wallets with configurable spending limits, built-in swap and bridge functionality via Polygon’s Trails routing system, and native support for the ERC-8004 identity standard.
That identity piece matters. ERC-8004—co-authored by MetaMask, the Ethereum Foundation, Google, and Coinbase—creates a framework for agents to accumulate portable reputation scores. Other agents and services can verify who they’re dealing with before transacting.
Everything settles in stablecoins. Agents pay for all onchain actions in USDC without needing to hold POL, ETH, or any native gas token. The abstraction layer handles conversion under the hood.
Security Architecture Worth Noting
The wallet infrastructure keeps private keys encrypted at rest and entirely outside the agent’s context window. This isn’t trivial—prompt injection attacks have become a real concern as agents gain access to financial operations. If the LLM never sees the keys, it can’t be manipulated into leaking them.
Session wallets expire after 24 hours by default, with per-token spending limits and contract whitelists configurable at creation. Every transaction runs as a dry run first, showing exactly what will execute before anything touches the chain.
The x402 Micropayments Play
Built-in support for the x402 protocol lets agents pay for API calls and data feeds per-request as part of normal HTTP flows. No API keys, no subscriptions—the agent just pays stablecoins for what it uses. As more services adopt x402, this becomes the native payment rail for agent-to-agent commerce.
Market Context
POL currently trades at $0.107, down about 2% over 24 hours with a market cap of $288.7 million. The timing of this release alongside the Lisovo hardfork’s gas subsidies suggests Polygon is making a coordinated push to capture the emerging AI agent infrastructure market.
The CLI integrates with LangChain, CrewAI, and Claude out of the box. Developers can install it as a skill via Openclaw or clone directly from GitHub. Documentation lives at docs.polygon.technology/payment-services/agentic-payments/polygon-agent-cli.
Whether AI agents become meaningful onchain participants remains an open question. But Polygon just made the infrastructure barrier significantly lower for teams building in that direction.
Federal authorities in North Carolina seized more than $61 million in USDT, revealing how pig-butchering schemes combine emotional manipulation with fraudulent crypto investment platforms to defraud victims at scale.
Investigators leveraged the public, immutable nature of blockchain records to trace victim deposits across multiple wallets. Despite attempts to obscure the trail, every transfer remained permanently visible and reconstructable.
Using blockchain analytics, authorities clustered related addresses based on transaction flows, timing patterns and consolidation points, allowing them to connect dispersed wallets back to the broader scam network.
Because the stolen funds were held in USDT, Tether’s ability to freeze tokens at specific addresses upon legal request played a decisive role in preventing the funds from disappearing permanently.
Federal authorities in North Carolina seized more than $61 million in Tether’s USDt (USDT) in February 2026, uncovering the inner workings of a massive cryptocurrency fraud.
The investigation targeted a romance-driven scam, also known as a pig-butchering scam, a deceptive practice in which criminals build romantic trust with victims to lure them into using fraudulent investment apps. While the amount of money recovered was significant, the case stands out for the technical skill investigators displayed. By tracking digital footprints across multiple accounts and decoding complex money laundering tactics, investigators successfully froze the funds before they could disappear.
This article explores how US federal investigators traced and seized funds linked to a romance-driven pig-butchering crypto scam. It details how blockchain forensics, wallet clustering and stablecoin cooperation helped unravel a complex laundering network.
The anatomy of a romance crypto scam
Romance crypto scams begin by grooming victims.
Scammers may pretend to be romantic partners or friendly contacts on social media, dating sites or messaging apps. They spend weeks or months cultivating trust with their victims. They then pitch a unique crypto investment opportunity, often touting insider knowledge or a proprietary trading platform.
Victims are guided to visually appealing but entirely fake crypto websites featuring bogus trading dashboards, phony inflated returns and real-time charts mimicking real exchanges.
Visible “gains” prompt victims to pour in more money. However, when they try to withdraw funds, new demands are made for taxes, fees or additional deposits. Eventually, the accounts are locked completely.
By that point, the money disappears.
Did you know? Blockchain analysis firms can map millions of wallet addresses into clusters using behavioral fingerprints even when criminals try to obscure ownership through rapid transfers.
The $61-million seizure in North Carolina
According to the US Attorney’s Office for the Eastern District of North Carolina, federal authorities seized more than $61 million in USDT connected to a romance-fueled crypto fraud ring.
Homeland Security Investigations (HSI) agents traced victim funds through an intricate network of digital wallets. Scammers had tried to hide the trail by shuffling assets across a number of addresses, a standard crypto laundering technique. However, blockchain’s public, immutable ledger records every transaction permanently.
That transparency ultimately enabled the breakthrough.
How investigators traced the funds
A systematic digital footprint recorded on the blockchain resulted in the $61-million seizure. Law enforcement reconstructed wallet transactions step-by-step, converting publicly available ledger information into solid proof.
Tracing transactions on the blockchain
When victims transferred money to fraudulent accounts, these transactions appeared transparently on the blockchain. Investigators could:
Pinpoint the addresses where victims made deposits
Monitor follow-up transfers between wallets
Map transfer patterns across clusters of interconnected addresses.
While the scammers quickly shifted funds across wallets, the full transaction record remained intact on the blockchain.
Blockchain analytics tools enabled investigators to group wallets based on behavioral patterns such as shared transaction flows, fund consolidation points and timing correlations.
Eventually, investigators were able to zero in on multiple addresses holding significant USDT amounts.
Such tactics aim to create confusion and delay detection, yet they fail to erase the verifiable record.
Through reconstruction of the funds’ path, investigators linked several wallets to the broader fraudulent scheme.
With critical storage addresses confirmed, officials acted swiftly.
Did you know? The US Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) receives thousands of crypto-related fraud complaints annually, with romance-investment scams ranking among the fastest-growing categories.
Tether’s key role in freezing the assets
Since the stolen funds were held in USDT, a centralized stablecoin, active cooperation from the issuer became essential.
The Department of Justice (DOJ) publicly recognized Tether’s support in transferring and freezing the seized assets. Stablecoin issuers possess the technical capability to immobilize tokens at designated addresses when served with legitimate legal orders.
Tether’s CEO emphasized that the inherent transparency of blockchain allows law enforcement to respond swiftly and decisively to illicit activity.
This case highlights that although cryptocurrency transactions operate on decentralized networks, many stablecoins maintain centralized control features that authorities can invoke during investigations.
Cooperation by the issuer can play a major role in whether victims are able to recover their funds.
Did you know? Some pig-butchering operations are run from large overseas compounds where victims of human trafficking are forced to carry out online scams under coercion.
The escalating wave of crypto fraud
The $61-million seizure is far from an isolated incident.
Crypto scams have exploded in both volume and complexity. According to industry analyses, total losses from cryptocurrency fraud approached about $17 billion in 2025, with AI-enhanced impersonation schemes showing especially sharp year-on-year growth.
Pig-butchering operations stand out as particularly destructive due to their combination of:
Psychological manipulation and trust-building
Extended grooming periods
Aggressive, high-stakes investment pressure
Sophisticated, professionally designed fraudulent platforms.
In many instances, perpetrators have begun using AI-generated images and deepfake videos to bolster their credibility and deceive victims more effectively.
Judicial responses have grown markedly tougher. In early 2026, a central participant in a pig-butchering-related money laundering network tied to more than $73 million in illicit funds received a 20-year federal prison sentence. This signaled the heightened priority authorities now place on dismantling these schemes.
Why blockchain transparency is a game-changer
This investigation challenges a widespread myth that cryptocurrency transactions are impossible to trace.
While privacy-focused coins and mixing services do exist, the vast majority of widely used cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), run on fully public blockchains. Every transaction is permanently recorded on an open, immutable ledger.
For law enforcement and investigators, this transparency delivers powerful advantages:
Complete, permanent visibility into historical transaction flows
Advanced wallet clustering to link related addresses
The ability to cross-reference blockchain data with Know Your Customer (KYC) records from regulated exchanges
Detection of behavioral patterns that span multiple networks.
The moment illicit funds interact with compliant exchanges, custodial services or other identifiable entities, the odds of connecting anonymous wallets to real individuals rise dramatically.
A related myth holds that perpetrators can simply “wait out” authorities by parking stolen funds in volatile assets until scrutiny fades.
In this seizure, however, the funds were held in a dollar-pegged stablecoin, USDT. That price stability protects the value of the stolen assets, but it also keeps them firmly within the traceable realm.
Because blockchain records are permanent and publicly queryable, investigators can patiently reconstruct cases over months or even years. The digital trail typically remains available indefinitely, allowing authorities to return and execute seizures long after the initial crime occurred.
Once funds reach self-custodied wallets under the scammers’ control, successful recovery hinges on several critical factors:
Prompt reporting by victims as soon as the fraud is suspected
Strong coordination among law enforcement agencies across countries
Active participation from cryptocurrency exchanges
The ability of stablecoin issuers to freeze assets on short notice.
The $61-million seizure in North Carolina shows that significant recoveries are achievable. However, they demand tight collaboration between victims, federal investigators, blockchain forensic specialists and compliant crypto companies.
The shifting landscape of crypto enforcement
This high-profile seizure reflects a clear evolution in how authorities handle cryptocurrency crime:
Law enforcement teams are steadily improving their expertise in blockchain tracing techniques.
Major stablecoin issuers are showing greater willingness to assist in active criminal probes.
Judges and prosecutors are handing down substantially longer prison terms to participants in large-scale fraud and money laundering networks.
While pig-butchering schemes continue to grow more advanced and deceptive, investigative tools and international partnerships are advancing at a comparable pace.
The main question is no longer whether cryptocurrency transactions can be traced. The real challenge now is speed. The question is how fast authorities and their partners can freeze and seize assets before the funds are scattered across unreachable wallets or jurisdictions.
Bitcoin (BTC) has “annihilated” short sellers with its latest trip to monthly highs as crypto liquidations pass $500 million.
Key points:
Bitcoin bears suffer as BTC price action hits $74,000.
Analysis sees more liquidations to come, including longs, with possible market dips below $70,000 to test support.
Bitcoin inflows begin to copy a broad ETF rebound in place through 2026.
BTC price analysis: “Bulls just took back control”
New analysis from CryptoReviewing, the pseudonymous cofounder of trading community Wealth Capital, says that the “entire market scenario” for Bitcoin has changed.
The past few days have seen BTC price swings take out both long and short positions worth hundreds of millions of dollars, but the trip to $74,000 ultimately cost bears more.
“Bears just got annihilated,” CryptoReviewing summarized.
Accompanying exchange order-book data from monitoring resource CoinGlass shows price slicing through walls of liquidations.
Wednesday’s liquidation total for Bitcoin and altcoins neared $600 million, with more shorts erased than on any day since Feb. 25.
Crypto liquidation history (screenshot). Source: CoinGlass
“And now the entire market scenario has changed… At $73,000 – $75,000 we have a large liquidity zone which could be swept, potentially leading to even higher levels,” CryptoReviewing continued.
“However, $65,000 – $71,000 below has roughly 4x more liquidity built up, making it the ‘more likely’ zone from a liquidity perspective to be visited next. Bulls just took back control.”
Such a support test is also on the radar for Keith Alan, cofounder of trading platform Material Indicators.
As part of a new market analysis published on Wednesday, Alan argued that a consolidation phase should form part of a reliable trend change.
“A support test, sooner than later, would be healthy, but I’m not sure that the market is going to make it that easy on us. However this develops, IMO, the longer it takes to grind up, the more durable the rally will likely be,” he wrote.
Alan nonetheless warned that long-term bearish signals remained in place, expecting Bitcoin’s “next leg down” to result from the current setup.
Bitcoin ETFs in focus amid “historic acceleration”
As Cointelegraph reported, price upside has accompanied renewed interest in Bitcoin from institutional sources.
The US spot Bitcoin exchange-traded funds (ETFs) saw net inflows of nearly $500 million on Wednesday.
Data from UK-based investment company Farside Investors confirms that inflows have been net positive on all but one trading day since Feb. 24. Even then, outflows were modest at just $27.5 million.
So far in March, the ETFs have taken in over $1.1 billion in capital.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
Commenting, trading resource The Kobeissi Letter noted that ETF interest has broadly spiked this year, making the US Bitcoin and Ethereum offerings relative laggards after months of outflows.
“Investors are pouring money into US funds at a record pace: US-listed ETFs have pulled in +$380 billion so far in 2026, on track for the best year on record. This marks a +80% increase compared to the first two months of 2025,” it revealed on X.
Kobeissi described the US ETF industry as “experiencing a historic acceleration in investor demand.”
US ETF flow data. Source: The Kobeissi Letter/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
The United Arab Emirates’ banking system remains fully operational despite escalating regional conflict between the US, Israel and Iran, the country’s central bank said, as authorities moved to reassure markets following missile and drone attacks on the country this week.
In a statement, Central Bank of the UAE Governor Khaled Mohamed Balama said banks, financial institutions and insurers “continue to operate with full efficiency and stability,” adding that the sector is showing “the highest levels of resilience and stability.”
The statement comes as the UAE’s role as a regional financial center and a growing hub for digital asset companies draws added attention to operational continuity during periods of geopolitical stress.
Central bank cites strong liquidity and capital buffers
Regional tensions escalated after Iranian drone and missile attacks targeted the UAE and neighboring countries last weekend, according to an Associated Press report published on Monday.
Debris from intercepted projectiles reportedly caused fires and damage near several sites in Dubai, including infrastructure around Jebel Ali Port and Dubai International Airport.
Despite these developments, the central bank said the country’s financial sector maintains strong balance sheet indicators.
According to the statement, the UAE banking system’s capital adequacy ratio stands at about 17%, while the liquidity coverage ratio exceeds 146.6%, both above international regulatory thresholds.
Balama said total assets in the UAE banking and financial sector exceed 5.42 trillion dirhams ($1.48 trillion). The regulator said it continues to coordinate with financial institutions and authorities to monitor developments and ensure operational readiness.
It added that UAE banks implement advanced risk management and business continuity frameworks aligned with international standards.
Crypto companies activate contingency plans
The UAE has emerged as one of the fastest-growing hubs for digital asset firms.
More than 1,800 crypto companies employ over 8,600 people and operate across the UAE, with Dubai’s DMCC free zone alone hosting more than 600 Web3 businesses.
Some digital asset companies operating in the region have also taken precautionary steps amid the geopolitical developments.
On Monday, crypto exchange Bybit began reviewing the safety of its employees in the UAE and activating cross-regional support systems to maintain operations, according to a report from Wu Blockchain.
In an internal letter seen by Cointelegraph, Bitget CEO Gracy Chen told staff that the exchange had activated emergency protocols while monitoring the security situation in the Middle East.
“We have activated emergency protocols and will accompany and support every colleague during this special period,” Chen wrote.
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Bitcoin’s strong recovery above $74,000, backed by solid inflows into the US spot Bitcoin ETFs, suggests the formation of a short-term bottom.
Several major altcoins are attempting to take part in the recovery by rising above their overhead resistance levels.
Bitcoin (BTC) bulls made a strong comeback on Wednesday by pushing the price to $73,800. A positive sign in favor of the bulls is that the recovery attempt is backed by buying in US spot BTC exchange-traded funds, which have seen $683.3 million in inflows this week per SoSoValue data.
Some analysts believe that BTC could be bottoming out. VanEck CEO Jan van Eck said on CNBC that BTC is in the fourth year of its four-year cycle, where it rises for three years and then plunges in the fourth year. He said that his firm believes BTC is close to a bottom and is expected to gradually start rising this year.
Crypto market data daily view. Source: TradingView
In a separate market update, 10x Research said that BTC did not plunge on risk-off headlines, indicating that the downside pressure might be reducing. However, the analysts said that BTC remains in a bear market, calling the bullish exposure “tactical rather than structural.”
Could BTC and select major altcoins build upon their recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC’s symmetrical triangle pattern resolved to the upside with a break above the resistance line, indicating solid buying by the bulls.
The BTC/USDT pair may reach the $74,508 level, where the sellers are expected to pose a substantial challenge. If the Bitcoin price turns down from $74,508 but rebounds off the 20-day exponential moving average ($68,871), it signals a positive sentiment. That increases the possibility of a rally to $84,000.
On the contrary, if the price turns down sharply from $74,508, it suggests that the bears are attempting to flip the level into resistance. A close below the 20-day EMA will tilt the advantage back in favor of the bears.
Ether price prediction
Ether (ETH) is attempting to break above the stiff overhead resistance of $2,111, indicating aggressive buying by the bulls.
A close above the $2,111 level clears the path for a rally to the 50-day simple moving average ($2,381). Sellers will again strive to halt the recovery at the 50-day SMA, as a break above it suggests that the corrective phase may be over.
This bullish view will be invalidated in the short term if the Ether price turns down sharply from $2,111 and nosedives below the $1,907 level. That indicates the ETH/USDT pair may extend its consolidation between $2,111 and $1,750 for a few more days.
BNB price prediction
BNB (BNB) surged above the 20-day EMA ($636) on Wednesday, indicating that the bulls have overpowered the bears.
Buyers will attempt to build upon the momentum and clear the $670 obstacle. If they can pull it off, the BNB/USDT pair may rally to $730. Sellers are expected to defend the $730 level, as a close above it suggests the pair may have bottomed out in the near term. The BNB price may then march toward $790.
Contrarily, if the price turns down sharply from $670, it signals that the rallies are being sold into. That may retain the pair inside the $570 to $670 range for some more time.
XRP price prediction
XRP (XRP) has been trading near the 20-day EMA ($1.42) for several days, indicating that the bulls have kept up the pressure.
If the price closes above the 20-day EMA, the XRP/USDT pair may ascend toward the downtrend line. Buyers will have to achieve a close above the downtrend line to signal a potential trend change.
Instead, if the XRP price turns down from the 50-day SMA ($1.60) or the downtrend line, it suggests that the bears remain sellers on rallies. That may retain the pair inside the channel for a few more days.
Solana price prediction
Solana (SOL) has been consolidating between $76 and $95 for the past several days, indicating demand at lower levels.
The flattening 20-day EMA ($86) and the RSI just above the midpoint suggest the selling pressure is reducing. Buyers will attempt to strengthen their position by pushing the Solana price above the $95 level. If they manage to do that, the SOL/USDT pair may surge toward $117.
Sellers are likely to have other plans. They will attempt to defend the $95 level and keep the price inside the range for a while longer.
Dogecoin price prediction
The failure of the bulls to push Dogecoin (DOGE) above the 20-day EMA ($0.10) suggests that the bears continue to exert pressure.
That increases the risk of a drop below the $0.09 support. If that happens, the DOGE/USDT pair may plunge to the Feb. 6 low of $0.08. This is a crucial level to watch out for, as a close below $0.08 may sink the pair to $0.06.
The first sign of strength will be a close above the 20-day EMA. The Dogecoin price may then march to the 50-day SMA ($0.11) and later to the stiff overhead resistance at $0.12.
Cardano price prediction
Cardano (ADA) turned down from the 20-day EMA ($0.27) on Tuesday, indicating that the bears continue to defend the level.
A minor positive in favor of the bulls is that they have not given up much ground to the bears. That signals buying on every minor dip, increasing the likelihood of a break above the 20-day EMA. The ADA/USDT pair may then rise to the downtrend line of the descending channel pattern.
Buyers will have to push and maintain the Cardano price above the downtrend line to signal a potential short-term trend change. The pair may then climb to $0.43.
The bulls are attempting to start a relief rally, which is likely to face selling at the 20-day EMA ($495). If the Bitcoin Cash price turns down sharply from the 20-day EMA, it increases the risk of a break below the $443 support. If that happens, the BCH/USDT pair will complete a bearish head-and-shoulders pattern, starting a downward move to $375.
Buyers will have to achieve a close above the 50-day SMA ($539) to get back into the game. The pair may then climb to $600.
Hyperliquid price prediction
Hyperliquid (HYPE) bounced off the 20-day EMA ($30.16) on Wednesday, indicating that the bulls are buying on dips.
The bulls will attempt to push the Hyperliquid price to the $36.77 resistance, where the bears are expected to mount a strong defense. If the price turns down sharply from the overhead resistance, it suggests that the HYPE/USDT pair may range between $20.82 and $36.77 for some time.
Contrary to this assumption, if the bulls pierce the $36.77 resistance, it signals the start of a new up move. The pair may then rally to $43.50 and subsequently to $50.
Chainlink price prediction
Chainlink (LINK) has been clinging to the 20-day EMA ($8.96) for the past few days, indicating a tough battle between the bulls and the bears.
The flattening 20-day EMA and the RSI near the midpoint suggest that the selling pressure is reducing. That improves the prospects of a rally to the 50-day SMA ($10.10) and then to the breakdown level of $10.94. Buyers are expected to face significant selling pressure in the $10.94 to $11.61 zone.
This positive view will be negated in the near term if the Chainlink price turns down and breaks below the $8 level. The LINK/USDT pair may then retest the Feb. 6 low of $7.15.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Founders Fund fully exited ETHZilla after previously holding a 7.5% stake. SEC filings show that Peter Thiel-linked entities had reduced their ownership to zero by the end of 2025, signaling a decisive retreat from an Ether-focused public treasury strategy.
ETHZilla’s pivot from biotech to an Ether treasury strategy was aggressive. After raising $425 million and later seeking $350 million through convertible bonds, the company accumulated over 100,000 ETH, positioning itself as a leveraged equity proxy for Ether exposure.
Debt-driven models can force crypto sales at unfavorable times. ETHZilla’s sale of 24,291 ETH in December 2025 to meet debt obligations highlighted a structural weakness. Leverage combined with crypto volatility can trigger asset liquidation during downturns.
Ether treasury strategies carry more operational complexity than Bitcoin treasuries. Ether-focused models often pursue staking and DeFi yields, introducing smart contract, liquidity and counterparty risks that Bitcoin “hold-only” treasury models typically avoid.
Peter Thiel, the renowned contrarian billionaire investor and co-founder of PayPal and Palantir, has a long history of bold, unconventional bets. A US Securities and Exchange Commission (SEC) filing revealed that Thiel-linked Founders Fund entities exited ETHZilla after disclosing a 7.5% stake in 2025. ETHZilla is an Ether-focused digital asset treasury company.
The sale underscores broader market pressures on Ether treasury models, as ETHZilla’s stock has fallen sharply from its summer 2025 highs amid falling Ether (ETH) prices. This comes at a time when investor enthusiasm for leveraged or equity-wrapped crypto exposure appears to be waning.
This article examines why Thiel’s Founders Fund exited ETHZilla and analyzes the risks of leveraged Ether treasury models, debt-driven balance sheets and forced asset sales. It explores what the move signals about volatility, capital discipline and the sustainability of public crypto treasury strategies.
ETHZilla: From biotech to Ether treasury
In July 2025, biotech company 180 Life Sciences made a bold shift, raising $425 million to launch an Ether-focused treasury strategy and rebranding as ETHZilla. It positioned itself as a publicly traded vehicle for gaining exposure to Ether, with plans to build up its Ether holdings and deploy them in decentralized finance (DeFi) protocols and tokenized asset initiatives.
Just two months later, ETHZilla sought to secure an additional $350 million through convertible bonds to expand its reserves and support further projects. Reports indicated that the company held over 100,000 ETH on its balance sheet at one stage.
The idea behind the endeavor was straightforward: Secure funding, buy and hold Ether, generate potential returns through staking or DeFi activities and offer public shareholders leveraged exposure to Ether’s growth.
However, the strategy faced significant challenges as market conditions deteriorated.
Did you know? In September 2022, Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS) in an event known as “the Merge,” reducing its energy consumption by more than 99%. It is one of the most ambitious upgrades ever attempted on a live blockchain.
ETHZilla’s pivotal sale and Peter Thiel’s exit
As crypto markets retreated from their earlier highs, ETHZilla began reducing its Ether position.
In December 2025, ETHZilla sold 24,291 ETH, generating roughly $74.5 million at an average price of about $3,068 per coin. The stated purpose of the sale was to meet debt repayments. Following the transaction, its Ether holdings reportedly fell to around 69,800 ETH.
The sale of ETH marked a pivotal turning point for the company.
For a company built around an Ether treasury, being forced to offload ETH to cover debt highlighted a fundamental vulnerability. Combining leverage with crypto’s volatility can trigger the sale of holdings at any time. A strategy originally designed for patient, long-term accumulation can quickly transform into a scramble to stabilize the balance sheet.
Not long afterward, Thiel’s Founders Fund reduced its ownership in ETHZilla to zero, fully exiting its position by the end of 2025, according to SEC filings.
What a schedule 13G exit signals and what it doesn’t
A Schedule 13G filing signals passive investment. An amendment reporting zero shares simply means the filer no longer holds enough to meet the disclosure threshold.
These filings, however, do not reveal the reasons behind the change. They offer no insight into whether the sale stemmed from routine portfolio adjustments, risk reduction, valuation concerns or broader doubts about the Ether treasury approach itself.
Timing also matters in this case. Founders Fund’s complete exit came shortly after ETHZilla’s partial Ether liquidation amid mounting pressure on similar Ether-centric balance sheet strategies.
Did you know? Before becoming synonymous with contrarian macro bets, Peter Thiel invested $500,000 in Facebook in 2004 for a 10.2% stake, a deal that later became one of Silicon Valley’s largest venture returns.
Bitcoin vs. Ether treasuries: Store of value vs. layers of hidden complexity
While comparisons to Bitcoin (BTC) treasury strategies are inevitable, Ether introduces layers of complexity that Bitcoin treasuries typically avoid.
Heightened volatility amplified by leverage
Ether tends to experience greater price volatility driven by underlying sentiment compared to Bitcoin. This behavior stems from Ether’s role as both a digital asset and the fuel for a programmable blockchain platform. When treasury companies rely on convertible debt or other forms of leverage, drawdowns may trigger forced selling.
Yield pursuit introduces new risks
Bitcoin treasury companies typically follow a straightforward hold-and-appreciate model. Ether-focused companies, on the other hand, often emphasize staking rewards or DeFi yields to enhance returns. However, this approach comes with trade-offs:
What promises higher returns can also increase operational complexity and systemic vulnerabilities.
Greater narrative and perception challenges
Bitcoin treasury players benefit from a “digital gold” narrative rooted in scarcity and store of value appeal. Ether, however, represents a dynamic, evolving ecosystem shaped by network upgrades, gas fee dynamics, shifting regulatory views and competition from other blockchains. This added complexity heightens uncertainty and makes it harder for markets to price the strategy.
Ether accumulators following diverse paths
Not all companies that opted for Ether treasuries reacted similarly to the downturn in crypto markets.
Some of these companies continued to accumulate ETH, trusting that Ether’s long-term network expansion and utility would outweigh near-term price turbulence. Others took the opposite path, liquidating all or a significant portion of their holdings and realizing substantial losses.
This divergence in approaches suggests that the Ether treasury model is not inherently flawed or doomed across the board. Its sustainability depends on factors such as leverage levels, risk controls and resilience to market cycles.
Did you know? Unlike Bitcoin’s simple transaction fee model, Ether uses “gas” to measure computational work. During peak non-fungible token (NFT) booms, users at times paid hundreds of dollars in gas fees just to mint digital collectibles.
Capital structure risks in volatile asset classes
Convertible debt structures can amplify potential gains in bull markets by providing relatively low-cost leverage to acquire additional assets such as Bitcoin, effectively magnifying returns as prices rise.
When companies trade at premiums to their net asset value (NAV), they can issue equity or convertible instruments to raise capital, which boosts holdings and may further enhance upside.
However, in downturns, when equity discounts widen and crypto prices fall, the feedback loop can reverse:
In this kind of bearish environment, even long-term investors with large Ether portfolios may decide to trim or exit positions to limit downside risk.
Opportunity cost and cleaner exposure
Today’s institutional investors have far more direct avenues for gaining Ether exposure than in earlier market cycles. Options include secure direct custody solutions, regulated spot exchange-traded funds (ETFs), staking-enabled products and sophisticated derivatives. These structures can reduce exposure to company-specific operational, execution or governance risks.
By contrast, investing through an equity wrapper around a leveraged crypto treasury strategy adds an extra layer of complexity and uncertainty. This includes exposure to management’s discretionary decisions, funding and refinancing strategies, governance structures and capital allocation priorities, which may diverge from pure asset performance.
Founders Fund is a venture firm historically focused on backing high-growth operating companies with scalable, technology-driven business models. A vehicle centered on a leveraged crypto balance sheet may not align seamlessly with its long-term portfolio strategy or risk preferences. Recent developments, including its complete exit from Ether treasury plays such as ETHZilla amid market pressures, underscore this selective approach to crypto exposure.
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Oracle provider RedStone has launched its price feed infrastructure on the Stellar network, introducing a new data layer for decentralized finance (DeFi) applications on a blockchain historically focused on payments and stablecoin transfers.
The deployment makes price feeds for major crypto assets and stablecoins available on the Stellar mainnet, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC) and PayPal USD (PYUSD). The rollout also includes pricing data for the Franklin Templeton BENJI tokenized money market fund.
RedStone said the feeds are designed to support financial applications like lending markets, decentralized exchanges (DEXs) and tokenized real-world asset (RWA) platforms building on Stellar.
The launch adds a new infrastructure provider to Stellar’s emerging DeFi stack as developers experiment with lending, tokenized assets and onchain financial services.
Stellar expands DeFi infrastructure
RedStone said the price feeds rely on a deviation-based update system and freshness checks intended to ensure data accuracy for financial applications.
“Stellar has long demonstrated its strength as a blockchain for real-world financial activity, particularly in payments and stablecoins,” RedStone co-founder Marcin Kazmierczak said in a statement.
He added that an enterprise-level oracle infrastructure was “what has been missing” for the network to unlock more advanced financial applications.
RedStone operates in a competitive oracle market dominated by Chainlink. Data from DeFiLlama shows Chainlink secures about 64% of the market by value, followed by Chronicle with 11%.
Internal protocol oracles account for about 6%, while Pyth and RedStone hold about 5.8% and 5.5%, respectively.
The launch comes weeks after a DeFi exploit on Stellar highlighted risks tied to price feeds and collateral valuation in lending protocols.
On Feb. 21, attackers drained roughly $10 million from a YieldBlox DAO-managed lending pool built on the Blend protocol after manipulating the price of the USTRY token used as collateral.
A security analysis by blockchain security firm BlockSec found the lending protocol relied on a price path linked to the shallow USTRY/USDC market on Stellar’s decentralized exchange. The manipulated price inflated the token’s collateral value, allowing the attacker to borrow assets beyond its real worth.
A Redstone spokesperson told Cointelegraph that relying on thin onchain markets for price discovery can expose lending pools to manipulation risks.
“The February exploit was only possible because an oracle was deriving a price from a market with less than one dollar in hourly trading volume,” the spokesperson said.
RedStone said its price feeds instead use deviation-based updates, typically around 0.5% to 1% for stablecoins, along with minimum daily refreshes to ensure data remains current.
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Crypto markets became the first outlet for investor reaction after US and Israeli strikes on Iran rattled global sentiment over the weekend.
At around 7:30 am (UTC) on Saturday, or in the wee hours of Wall Street, US President Donald Trump posted a video to announce that the US and Israel had launched attacks against Iran. Bitcoin (BTC) immediately reacted and dropped to around $63,000.
Meanwhile, traders rushed to crypto-native platforms to trade commodities futures while traditional markets remained closed.
Bitcoin’s rollercoaster weekend foreshadowed major indexes opening lower on Monday. Source: TradingView
Including the latest war breaking out, major geopolitical events have frequently occurred over the weekend or late Friday evenings. As crypto is increasingly tied to macro settings, Bitcoin’s 24/7 trading is evolving as a gauge of stock markets while they’re closed.
“The initial [weekend] move to the downside was sharp but contained, [and] Bitcoin never broke its broader market structure. When confirmation came that [Supreme Leader Ayatollah Ali Khamenei] had been killed and the immediate escalation risk appeared limited, price retraced quickly, and Bitcoin held its footing,” Jonatan Randin, senior market analyst at PrimeXBT, told Cointelegraph.
“By Monday morning, traditional market participants who had been watching crypto through the weekend already had a clear read on sentiment: This was a significant geopolitical event, but not a systemic one,” he added.
Bitcoin absorbing geopolitical shocks in real time
Though not always the case, governments and public companies often consider releasing important announcements before or after markets close. A guideline from New Zealand on dealing with financial products is among those that directly state this:
“Unless compelling reasons exist to release the announcement or media release while the affected market is open, it should be made when the market is closed to give investors time to consider the information before the market opens.”
Due to the nonstop trading cycle, crypto investors often don’t have time to assess the information and must react in real time, as observed during the war escalation over the weekend.
“While liquidity can be thinner during these periods, occasionally amplifying short-term volatility, the uninterrupted market ultimately enhances real-time price discovery and accelerates the adjustment process,” Iliya Kalchev, analyst at Nexo Dispatch, told Cointelegraph.
It certainly felt that way on Oct. 10, 2025, when the crypto market experienced its largest liquidation event on record. Trump threatened steep tariffs against China, which was enough to tank markets.
This occurred before the US closing bell, so Bitcoin sank along with major stock market indexes. However, crypto markets continued to operate afterward, and liquidations continued, totaling around $19 billion.
The mass liquidation event known as 10/10 showed investor sentiment evolving through Bitcoin’s price before markets opened. Source: TradingView
For macro traders, this makes crypto a real-time sentiment gauge during geopolitical shocks. When events occur outside traditional trading hours, investors increasingly turn to digital asset markets to express their views on risk, liquidity or inflation expectations before equity, bond or commodity markets reopen.
Crypto’s 24/7 market does not stop at Bitcoin or other spot assets. Much of the activity now flows through perpetual futures across centralized and decentralized exchanges, while institutions are also experimenting with tokenized real-world assets (RWAs) that bring traditional financial instruments onto blockchain rails.
24/7 trading open beyond spot crypto
As Bloomberg reported, perpetual futures decentralized exchange Hyperliquid became a popular trading platform for commodities and traditional assets, like oil and precious metals.
Hyperliquid’s volume also usually drops on weekends, DefiLlama data shows. But in the past weekend of geopolitical unrest, its volume remained high and matched that of business days.
Hyperliquid’s trading volume did not have its usual weekend drop. Source: DefiLlama
Weekend trading demand is increasingly reflected in traditional finance through surging institutional interest in RWAs. Tokenized assets inherit some of crypto’s market features, including cross-border accessibility and trading outside conventional market hours.
McKinsey and Standard Chartered estimate tokenized assets could reach around $2 trillion by 2030, while Boston Consulting Group projects the market could grow to between $16 trillion and $30 trillion over the same period.
Traditional markets are also moving to extend their trading hours. In December, Nasdaq sought approval for a 23-hour trading system, split into day and night sessions with a maintenance hour in between, which wasn’t well received by financial services firm Wells Fargo.
“I cannot think of an action that single-handedly gamifies the stock market even more than it has already become. This is the epitome of making trading even more like gambling,” Wells Fargo’s trading desk said in a note to clients, as reported by CNBC.
In January, the New York Stock Exchange said it is developing a 24/7 blockchain platform for stocks and exchange-traded funds.
Crypto markets absorbing global shocks in real time
Weekend geopolitical shocks are increasingly testing the structure of global markets. While traditional financial systems pause between trading sessions, crypto continues to absorb information and reflect investor sentiment in real time.
“Bitcoin has evolved into a highly sensitive macro asset, reacting not only to technology-sector dynamics but also to shifts in liquidity conditions, monetary policy expectations and geopolitical tensions,” Kalchev said.
Bitwise’s Hougan said the weekend trading activity made traditional stock exchanges look “archaic.”
While more traditional finance venues are exploring extended or uninterrupted trading systems, Hougan said the blockchain markets’ performance during the past weekend’s military escalation suggested the blockchain transition may happen faster than he previously expected. He claimed he previously expected traditional finance to move onchain within 10 years.
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The United Kingdom House of Lords grilled Coinbase’s top international policy executive on Wednesday over whether stablecoins would drain bank deposits and add new risks to the UK financial system, pressing him on everything from Silicon Valley Bank‑style runs to illicit finance and Know Your Customer (KYC) rules.
During the Lords’ stablecoins inquiry, Tom Duff Gordon, Coinbase’s vice president for international policy, insisted that fully reserved, regulated stablecoins were “safer than uninsured bank deposits” because they are backed one‑to‑one by cash and high‑quality government securities and can be redeemed at par.
He argued that stablecoins could materially reduce payment costs, speed up cross‑border payments, and underpin new artificial intelligence driven “agentic” payment flows.
Duff Gordon pushed back on suggestions that Coinbase was seeking to dodge KYC obligations and warned that overly tight Bank of England and Financial Conduct Authority (FCA) proposals on capital, holding limits and rewards risk would choke off competition. That, he said, would leave the UK lagging the United States’ Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act regime and Europe’s Markets in Crypto Assets Regulation (MiCA) framework in the global race to attract stablecoin innovation.
Lords probe deposit drain and crime concerns
The Lords repeatedly challenged Duff Gordon on who actually bears redemption risk in a crisis, whether current arrangements merely shift risk from banks to non‑bank issuers, and whether allowing rewards on stablecoins would trigger a “deposit drain” from UK banks.
Coinbase’sTom Duff Gordon gives evidence. Source: Parliament TV
Duff Gordon countered that fears over disintermediation and credit creation were “wildly exaggerated,” and that stablecoins were already used by major corporates and card plans to cut payment costs.
Committee members also raised concerns about the role of stablecoins in crime, prompting Duff Gordon to emphasize Coinbase’s KYC, Anti-Money Laundering (AML) and sanctions screening of customers. He argued that onchain transparency and exchange-level controls could make it easier, not harder, to police illicit flows compared with traditional cash.
UK could fall behind in stablecoin race
Adam Jackson, chief strategy officer at Innovate Finance, an independent industry body for the UK financial technology sector, argued that the UK risked establishing a regime that was “more prescriptive and less competitive” than the EU’s MiCA rules. “We risk being second movers but second movers who are less competitive than the first movers,” he warned.
The hearing came as a sharp contrast to the committee’s previous session, where critics including Financial Times commentator Chris Giles and US law professor Arthur E. Wilmarth Jr expressed their doubts about whether stablecoins were likely to become a mainstream form of money in the UK and backed a tougher Bank of England approach.
Wilmarth Jr went so far as to brand the US’s GENIUS Act as a “disastrous mistake” for letting non‑banks into “the money business.”
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
