Autor Cointelegraph by Zoltan Vardai

A newly unsealed court filing in the Terraform Labs bankruptcy case alleges Jane Street used a private Telegram channel with former Terraform intern Bryce Pratt to obtain nonpublic information before the collapse of TerraUSD. Pratt is currently a systems developer at Jane Street. The channel, called “Bryce’s Secret,” allegedly gave the quantitative trading firm a backchannel to Terraform insiders as Jane Street unwound exposure to TerraUSD (UST) shortly before the algorithmic stablecoin lost its dollar peg in May 2022, according to the filing. “Jane Street used Bryce’s Secret chat group and other backchannel sources of non-public information to front-run trading that hastened the collapse of Terraform,” the filing states.The claims renew scrutiny of who profited from Terra’s $40 billion collapse, one of the crypto industry’s largest failures, and could test how traditional insider trading and market manipulation theories apply to decentralized finance markets.On Feb. 23, Todd Snyder, Terraform’s court-appointed administrator, sued Jane Street, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang in Manhattan federal court, accusing them of “misappropriating confidential information and manipulating market prices.” Two months later, Jane Street filed a motion to dismiss the lawsuit, arguing that Terraform attempted to “extract cash from Jane Street to foot the bill for a fraud that Terraform itself perpetrated on the market,” Cointelegraph reported on April 23.A spokesperson for Jane Street told Cointelegraph that the lawsuit was a transparent attempt to “extract money when it is well-established that the losses suffered by Terra and Luna holders were the result of a multi-billion dollar fraud perpetrated by the management of Terraform Labs.”Terraform Labs court filing in the lawsuit against Jane Street. Source: cloudfront.netCurve trade raises new UST concernsThe timing of a particular UST trade has raised more concerns, suggesting potential access to insider information by an unknown entity.On May 7, 2022, Terraform quietly withdrew about $150 million in UST from the Curve 3pool liquidity pool.Less than 10 minutes after Terraform’s withdrawal, Curve 3pool saw its largest single swap of $85 million, precipitating a steep sell-off in UST, which the filing said “ultimately led to the collapse of the Terra ecosystem.”Related: Analysts reject Jane Street ‘10 a.m. dump’ claims, say Bitcoin isn’t easily manipulatedThe heavily redacted filing does not identify the entity behind the swap.Terraform Labs court filing in the lawsuit against Jane Street. Source: cloudfront.netSnyder seeks to recover alleged wrongful gains from Jane Street, plus compensation for additional damages to distribute to Terraform creditors and investors who lost funds in the 2022 collapse.Jane Street is the world’s leading quantitative trading firm by net trading revenue, with $39.6 billion generated in 2025, reported Reuters.Cointelegraph reached out to Terraform’s court-appointed administrator for comment but had not received a response by publication.Magazine: How to fix suspected insider trading on Polymarket and Kalshi

Nearly 10% of the total Bitcoin supply is considered “structurally unsafe” due to a quantum computing breakthrough, as their output type reveals the public key by design, regardless of address management practices, according to data analytics platform Glassnode.Totaling about 1.92 million Bitcoin (BTC), the group includes BTC from early Satoshi-era Pay-to-Public-Key (P2PK) outputs, legacy multi-sig structures such as Pay-to-Multisig (P2MS) and modern Pay-to-Taproot (P2TR) outputs, which reveal the public key or public key-equivalent by design, wrote Glassnode in a Wednesday X post.Bitcoin creator Satoshi Nakamoto’s coins represent about 1.1 million or 5.5% of the vulnerable supply, following another 620,000 Satoshi-era coins or 3.1% of the supply and about 200,000 coins or 1% of the supply in Taproot addresses.Choosing how to implement PQC [post-quantum cryptography] and deploy it on-chain should remain decoupled from the question of what to do about coins that remain quantum vulnerable. Yet the two matters often are conflated, the controversy around the latter often clouding discussions of the former – ARK InvestThe findings underscore the need to implement a quantum-proof path for Bitcoin, such as the adoption of BIP-360’s proposed Pay-to-Merkle-Root (P2MR) output type, which seeks to remove Taproot’s quantum-vulnerable key path spend, though it does not itself add post-quantum digital signatures. While 9.6% of the total supply remains structurally exposed, a significant part of this exposure “could be reduced if wallet infrastructure, address standards, and user behavior evolve,” added Glassnode.However, this supply would only be vulnerable to quantum theft if quantum computers can break Bitcoin’s elliptic curve cryptography (ECC), which would require about 2,330 logical qubits and tens of millions to billions of quantum gates, according to a March white paper published by US investment manager Ark Invest.Source: GlassnodeNearly 70% of Bitcoin’s supply is safe from quantum computing threatGlassnode estimates that about 13.99 million Bitcoin, representing 69.8% of the total supply, remain unexposed to a quantum computing threat, which is largely in line with Ark Invest’s figures, which show that 65% of the supply was safe, Cointelegraph reported in March.Still, the analytics provider notes that about 4.12 million BTC, or 20.6% of the total supply, are “operationally unsafe,” meaning that these coins are exposed due to a key or address management issue.Source: GlassnodeEntity-level data shows that the holdings of some large corporate entities are exposed. This includes 100% of BTC held by Franklin Templeton, WisdomTree and Robinhood, 99% of neobank Revolut’s Bitcoin, 52% of Grayscale’s holdings and just 2% of Fidelity’s Bitcoin stash.Related: Bernstein says Bitcoin market already priced in quantum riskLooking at the exposed tokens of cryptocurrency exchanges, only about 5% of BTC held on Coinbase is exposed, compared to 85% of Binance’s BTC and about 100% of the holdings on Bitfinex exchange.To reduce exposure, exchanges and custodians are advised to reduce key reuse, improve address hygiene and plan a migration into a quantum-proof format to position for a future quantum breakthrough, wrote Glassnode.Magazine: Bitcoin vs. the quantum computer threat — Timeline and solutions (2025–2035)

South Korean funeral service company Bumo Sarang is sitting on roughly 49.3 billion won ($32.7 million) in unrealized losses after investing about $40 million in customer funds into leveraged crypto exchange-traded funds (ETFs).Bumo Sarang invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU), which doubles the daily returns of Ether (ETH) treasury company Bitmine, according to the company’s audit report for 2025.Another funeral service company, Christian Funeral Family of Faith, recorded a $331,700 net loss last year, according to Korea Economic Daily.The findings renewed scrutiny over South Korea’s funeral mutual aid industry, which is supervised by the Fair Trade Commission (FTC) instead of financial regulators, despite managing large pools of customer prepaid funds.Korea Economic Daily reported that about 43% of local funeral service providers held fewer assets than customer advance payments, raising concerns about whether some of them could repay customers in the event of mass cancellations.Bumo Sarang audit report for 2025. Source: FTCA spokesperson for Bumo Sarang told the local outlet that the company is only facing a “short-term unrealized loss due to global market volatility,” which remains “sufficiently controllable within the company’s financial buffer.”Cointelegraph reached out to Bumo Sarang and Family of Faith for comment but did not receive a response before publication.Related: South Korea’s Shinhan Card taps Solana to test real-world stablecoin paymentsSouth Korean capital piled into Ether-linked stocks in 2025A large chunk of South Korean retail capital rotated out of tech stocks and into Ethereum treasury companies last year.“There’s around $6 billion of Korean retail capital propping up the Ethereum treasury companies,” wrote Samson Mow, the CEO of Bitcoin tech company JAN3, in an Oct. 6 X post. He added that some of those retail buyers didn’t understand the risks of investing in Ether.ETH, BMNR, year-to-date chart. Source: Cointelegraph/TradingViewEther’s price fell over 28% year to date in 2026 and was trading above $2,118 at the time of writing. Bitmine’s stock price fell nearly 40% during the same period to $18.7, TradingView data shows.Bitmine chairman Tom Lee described Ether’s drop below $2,200 as an “attractive opportunity” after the treasury company bought another 71,672 Ether, according to Cointelegraph reporting earlier Tuesday.Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO

Blockchain data platform Bubblemaps said it identified a cluster of Polymarket wallets that collectively earned $2.4 million with a 98% win rate on contracts tied to US military operations.Nine wallets placed all their major bets just before major military developments, including the Feb. 28 attack on Iran, the killing of Iranian Supreme Leader Ayatollah Ali Khamenei and the US-Iran ceasefire agreement, Bubblemaps wrote in a Monday X post.The accounts were all funded through centralized cryptocurrency exchanges in a tight timeframe and made some minor losing bets on Feb. 20, which likely served to “avoid attention,” according to Bubblemaps. Four of them each made around $400,000 in profit on their bets that the US would strike Iran on Feb. 28.The investigation highlights the growing insider trading concerns tied to decentralized prediction markets such as Polymarket and Kalshi. It aimed at curbing insider trading on prediction markets.Source: BubblemapsWhile the data platform doesn’t have definitive proof that the accounts belonged to insiders, the onchain trail is “symptomatic of someone with an unfair informational advantage,” Nicolas Vaiman, the CEO of Bubblemaps, told Cointelegraph. He added:“We cannot say with certainty that this was an attempt to hide, but it is suspicious that funds were routed through CEXs and third-party services before funding new Polymarket accounts, effectively covering their tracks.”US lawmakers seek stricter regulations on war-related prediction market contractsUS lawmakers have previously proposed new laws to fight the growing insider trading concerns tied to military contracts on prediction markets.On March 10, US Democratic Party Senator Adam Schiff introduced the DEATH BETS Act, which seeks to ban federally regulated prediction markets from listing contracts tied to war, terrorism, assassination and individual deaths.DEATH BETS Act. Source: Schiff.senate.govThe bill came shortly after six Polymarket traders netted $1 million by betting on the US strike against Iran.Separately, in late March, California Governor Gavin Newsom signed an executive order to curb public servants from insider trading on prediction markets tied to political or economic events they can influence.Related: CFTC no-action letter eases event contract reporting rulesPolymarket, Kalshi, notional volume per category, weekly. Source: Dune Politics-related contracts are currently the third-largest category on Polymarket, accounting for 12% of notional trading volume, and the fifth-largest on Kalshi, where they account for 0.7% of weekly trading volume, according to Dune data.Magazine: Inside a 30,000 phone bot farm stealing crypto airdrops from real users 

France-listed Bitcoin treasury company Capital B announced Monday that it acquired 192 BTC for 13 million euros ($15.2 million), bringing its total holdings to 3,135 BTC.Capital B purchased its latest tranche at an average price of about $78,948 per Bitcoin, Alexandre Laizet, Bitcoin strategy director at Capital B, said on X.The acquisition comes a week after the company announced a $17.8 million raise from strategic investors, including Blockstream CEO Adam Back and Paris-based asset manager TOBAM. Capital B also raised $1.28 million from Back on May 4.Capital B is one of four crypto treasury companies to publicly disclose Bitcoin purchases in May so far. Strategy, the largest publicly traded Bitcoin holder, announced it acquired $43 million last Monday, while Strive added $33 million in BTC on May 4 and The Smarter Web Company purchased $4.9 million in BTC.The purchase reflects continued interest in Bitcoin treasury strategies by a handful of public companies, even as Bitcoin remains well below its October 2025 all-time high.Capital B acquired 192 BTC. Source: Capital BCapital B shares fall after Bitcoin acquisition announcementCapital B shares fell around 2.4% after the announcement Monday and traded at about 0.62 euros at the time of writing.The company’s shares are down 17% year-to-date and more than 68% over the past year, according to data from Yahoo Finance. Capital B shares price in euros, 1-year chart. Source: Yahoo Finance.Capital B ranks as the 25th-largest Bitcoin treasury firm by holdings and as Europe’s second-largest following Germany’s Bitcoin Group SE, which holds 3,605 BTC, currently worth about $277 million, according to BitcoinTreasuries data. Related: Strategy’s Bitcoin engine faces $28B STRC ceiling: Delphi DigitalSome Bitcoin treasury firms turn defensive amid downturnOther Bitcoin treasury companies are seeking to reduce the balance sheet risks associated with Bitcoin, which is currently down 39% from its $126,198 all-time high.On April 24, Nasdaq-listed Bitcoin treasury company Nakamoto announced an actively managed Bitcoin derivatives program aimed at generating recurring income from volatility and hedging part of its corporate BTC holdings against downside exposure. The company reported it sold 284 Bitcoin (worth about $20 million at the time) in a March 30 filing. In February, Genius Group reported the sale of its remaining treasury holdings of 84 BTC for about $5.7 million to repay an $8.5 million debt obligation.Magazine: Bitcoin vs. the quantum computer threat — Timeline and solutions (2025–2035)