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ZachXBT revealed he infiltrated a Chinese organized crime syndicate

Blockchain investigator ZachXBT published a detailed account on October 5 2026 describing how he posed as a client to gather information on a Chinese organized crime syndicate that he says has laundered more than one billion dollars across multiple cryptocurrency exploits on behalf of North Koreas Lazarus Group. The work focused in particular on funds stolen during the February 2025 Bybit incident in which roughly 1.5 billion dollars in ether and related tokens were taken from the exchange. United States authorities later attributed that theft to the TraderTraitor cluster associated with Lazarus Group.

Shortly after the Bybit breach ZachXBT observed more than fifteen accounts in public Telegram and Discord channels requesting assistance with orders tied directly to the stolen assets. He contacted one operator using the alias Jimmy Green whose Telegram handle was long 991. To establish credibility ZachXBT funded a new Ethereum address on March 6 2025 with 349700 USDC and completed a series of swaps into USDT on the Tron network. He accepted an approximate five percent loss on each transaction and noted there was no guarantee the counterparty would not simply disappear with the funds. On chain records showed that gas for one of Jimmy Greens receiving addresses came from a wallet already labeled on Bybits public exploit blacklist.

As the conversations continued Jimmy Green described an operation based in Hong Kong and mainland China and stated that his team had processed most of the 1.5 billion dollars taken from Bybit. He also predicted certain fund movements in advance including a transfer to Solana that occurred the following day. Screenshots of bridging activity shared during the chats matched the timing and amounts of orders visible on the THORChain explorer. Jimmy Green later provided three Solana addresses that allowed ZachXBT to map a cluster holding more than 12 million dollars in Bybit linked assets moving across Bitcoin Ethereum Solana and Tron. Tether subsequently froze 442000 USDT connected to that cluster. The same review identified a novel laundering technique that used Uniswap liquidity pools with illiquid tokens.

Additional details from the exchanges pointed to a prior freeze of roughly 332000 USDC originating from the 2024 Poloniex exploit and to approximately three million dollars in fraud proceeds that traced to a hot wallet associated with Huione Guarantee an entity later sanctioned by authorities. ZachXBT shared the findings with private sector investigators and law enforcement assigned to the case and delayed public release because of the sensitivity of the ongoing investigation. He has previously stated that work since 2022 contributed to freezes totaling more than 75 million dollars related to incidents attributed to North Korean actors. Similar patterns of public support requests appeared after the September 2026 Bitget exploit involving roughly 387 million dollars which multiple tracing firms have also linked to North Korean activity.

The account illustrates both the visibility of certain laundering intermediaries in open chat channels and the practical risks independent researchers accept when they commit personal capital to obtain actionable intelligence. ZachXBT noted that the information helped support freezes and on chain attribution even though much of the broader investigation remained confidential at the time of publication. The episode adds to the public record of how proceeds from large exchange compromises continue to move through cross chain bridges mixers and regional networks long after the initial theft.

OKX files to launch a US stock tokenization platform

OKX has submitted a filing with the United States Securities and Exchange Commission to launch a tokenized stock trading platform in the American market. The application was made through OKXICE LLC, a joint venture between the cryptocurrency exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange. The filing positions OKX among the first major crypto platforms seeking to offer digital versions of publicly listed company shares under newly established regulatory pathways.

The proposed platform plans to begin with tokenized shares of an initial group of 63 companies listed on the New York Stock Exchange. Under the framework governing the application, the relevant issuers receive advance notice and hold a 30 day period during which they may choose to opt out before any trading activity can commence. The actual launch timeline depends on the completion of this opt out window along with the satisfaction of additional regulatory requirements.

This development follows the introduction of the Innovation Exemption by the Securities and Exchange Commission in September 2026. The exemption provides a temporary five year period during which qualified Tokenized Securities Venues may facilitate trading of tokenized National Market System stocks on blockchain infrastructure. These venues can operate automated market makers and liquidity pools without registering as full national securities exchanges, subject to specific conditions designed to protect investors and maintain market integrity. A core requirement is that the tokenized shares must carry the same shareholder rights as traditional equities, including the ability to receive dividends and exercise voting rights. Synthetic products that merely track price movements without conveying these rights fall outside the scope of the exemption.

OKXICE was established in June 2026 as a 50 50 joint venture. It is co chaired by former New York Governor Andrew Cuomo, who has advised OKX since 2023, and Trabue Bland, a senior vice president at Intercontinental Exchange responsible for futures markets. The venture aims to create infrastructure that places New York Stock Exchange listed equities on blockchain rails while pursuing the necessary broker dealer and futures commission merchant licenses from the Securities and Exchange Commission and the Commodity Futures Trading Commission. Those licensing applications remain under review. The partnership builds on an earlier investment by Intercontinental Exchange in OKX during March 2026 that valued the exchange at approximately 25 billion dollars and included collaboration on data licensing and regulated digital asset products.

The new US focused initiative differs from the tokenized stock products OKX already offers in certain international markets. Those existing offerings, known as Unified Tokenized Stocks, allow trading of more than 40 US stocks and exchange traded funds against the USDT stablecoin on a continuous basis in regions such as Southeast Asia, Northeast Asia, the Middle East, and Turkey. However, they are structured as synthetic instruments backed by custodied assets and do not currently convey full shareholder rights. They are also unavailable to customers in the United States and Europe. Simply extending those products to American users would not meet the conditions of the Innovation Exemption, which is why the OKXICE structure is being pursued separately.

The Securities and Exchange Commission introduced the Innovation Exemption shortly after legislative efforts to establish broader cryptocurrency market structure rules stalled in the Senate. Officials described the measure as a bridge that allows controlled experimentation with on chain trading of tokenized stocks while the agency gathers data and considers permanent rulemaking. Platforms relying on the exemption must notify issuers, publish transaction data, maintain records, and comply with sanctions screening and access standards. Issuers retain the ability to prevent tokenization of their shares if they object within the designated period.

Market observers note that the combination of a major cryptocurrency exchange and the owner of the New York Stock Exchange represents a significant institutional step toward integrating traditional equities with blockchain settlement. Faster transfer of ownership and the potential for continuous trading hours are among the operational features under discussion, though both remain subject to final regulatory approvals and the outcome of the issuer opt out process. The filing itself had not yet appeared in public Securities and Exchange Commission records in the days immediately following the announcement reported by Bloomberg.

As the 30 day opt out period and pending license reviews proceed, the OKXICE application will serve as an early test of how the Innovation Exemption functions in practice for tokenized versions of New York Stock Exchange listed companies. Success would expand the range of assets available for on chain trading inside the United States while requiring structures that preserve conventional shareholder protections.

Ethereum L2 Blast is shutting down

Ethereum layer 2 network Blast is shutting down after concluding that the cost of operating the chain now exceeds the revenue it generates. The team announced the decision on October 2, 2026, stating that it sees no credible path to making the network economically sustainable. Users have been asked to move their assets back to Ethereum mainnet, with a clear withdrawal window ending on October 26, 2026.

Blast launched in late 2023 under Tieshun Roquerre, known as Pacman and the founder of the NFT marketplace Blur. The project raised 20 million dollars in a seed round led by Paradigm and Standard Crypto. Its main selling point was native yield on ether and stablecoins, generated largely through staking and automatically distributed to users. Before the mainnet went live in February 2024, more than 1.1 billion dollars had already been deposited, driven heavily by expectations of a future token airdrop and a points program. Total value locked later peaked above 2.2 billion dollars around mid 2024, briefly placing Blast among the larger Ethereum layer 2 networks by assets.

That growth did not last. Activity faded once speculative capital moved elsewhere. According to data tracked by DeFiLlama, total value locked on Blast has fallen to roughly 32 million dollars, a decline of about 98 percent from the peak. Network revenue tells a similar story. The chain generated only about 1793 dollars from usage in the most recent full month, down from a peak near 3.5 million dollars in June 2024. Daily chain revenue has recently sat near 110 dollars. The native BLAST token fell an additional 17 to 19 percent after the shutdown announcement and is now down roughly 98 percent from its earlier highs, with a market capitalization in the range of 17 to 23 million dollars.

The official shutdown process includes several steps. Blast will first withdraw its assets from Lido, a process expected to take about one week. User withdrawals will be temporarily unavailable during this period. Once the Lido exit is complete, the withdrawal delay will be reduced to 24 hours and withdrawals will resume. Users can withdraw through the normal Blast interface, including balances held in the progressive web app, until October 26, 2026. After that date, assets remain withdrawable, but users will need to interact directly with Blast bridge contracts on Ethereum mainnet. The team has said it will publish detailed instructions before the deadline.

The closure fits a broader pattern among smaller Ethereum layer 2 networks in 2026. Several other chains, including Zero Network, Kinto, zkLend, and Loopring, have also wound down or sharply reduced operations as activity concentrates on a handful of larger networks. Running a layer 2 requires ongoing spending on infrastructure, development, and security even after user activity declines. When transaction fees no longer cover those costs, the economics become difficult to sustain. Blast had drawn early criticism for its launch approach, which accepted deposits into a bridge before the full network existed and relied heavily on airdrop expectations. Paradigm researchers publicly stated at the time that parts of the messaging and execution crossed lines and set a poor precedent, even while acknowledging the technical ability of the founding team.

Early security incidents also marked the network. In March 2024, shortly after mainnet launch, the Munchables project on Blast lost roughly 62 million dollars in an exploit linked to a malicious upgrade inserted by a developer, with investigators pointing to North Korean actors. A separate token incident around the same period added further losses. These events did not drain the canonical bridge, but they damaged confidence during the period when deposits were still elevated.

For users still holding assets on Blast, the practical priority is the October 26 deadline for ordinary interface withdrawals. Funds left after that date are not described as lost, yet recovering them will require direct interaction with bridge contracts on Ethereum, which is more technical. The shutdown of Blast illustrates how quickly incentive driven growth can reverse when a layer 2 fails to build durable fee revenue, and it adds another data point to the ongoing consolidation of Ethereum scaling networks.

Bitget has just resumed BTC withdrawals following the incident on September 24

Bitget has begun a phased return of withdrawals after a security incident on September 24 2026 that moved about 387.5 million dollars from parts of the exchange hot and warm wallet infrastructure. Bitcoin withdrawals on the Bitcoin network started at 08:00 UTC on September 28 as scheduled and the exchange later said Bitcoin withdrawals on BNB Smart Chain were also open.

The exchange said its monitoring systems detected unauthorized transfers at 18:31 UTC on September 24. An early estimate put the affected amount at 351.6 million dollars. A later accounting added assets on Zcash and Tron and raised the confirmed figure to about 387.5 million dollars. Bitget said the higher total reflected a fuller review of transfers that happened during the original window and did not mean new unauthorized movement after the incident was contained.

According to Bitget the attacker exploited a vulnerability in a third party security product used by the firm and obtained high level internal credentials. Those credentials were then used to send fraudulent withdrawal commands into the wallet system so that abnormal transfers were executed and some risk controls were bypassed. The company said private keys were not compromised and cold wallets were not affected. Bitget Wallet the separate self custodial product was also reported as unaffected.

User account balances remain unchanged according to official statements. Trading and deposits stayed open throughout the withdrawal pause. Bitget said losses from the platform wide incident fall within its User Protection Fund which held more than 464 million dollars at the time of the first notices.

The confirmed assets involved included XRP ETH USDT ZEC USDC USDT0 XAUt BNB AVAX and TRX across Ethereum and several EVM networks the XRP Ledger Zcash and Tron. Bitget published primary attacker controlled addresses and launched a public tracing dashboard to support industry cooperation. The firm also started a recovery bounty program that offers 5 percent of funds successfully frozen and 5 percent of funds successfully recovered to eligible parties whose voluntary work leads to those results.

Independent cybersecurity firms Mandiant and SlowMist are supporting the investigation and on chain tracing. Bitget said it has identified the attack path remediated the vulnerability and contained the incident with no further unauthorized transfers identified after containment. Chief executive Gracy Chen hosted a live AMA on September 28 to address community questions. The company said it expects to complete an internal security report this week.

Withdrawals are returning in stages so each network can pass extra security checks. Ether withdrawals on Ethereum BNB Smart Chain Arbitrum Base and Optimism are scheduled for 08:00 UTC on September 29. USDT withdrawals on Ethereum BNB Smart Chain Solana and Tron are scheduled for 08:00 UTC on September 30. Remaining tokens fiat withdrawals and peer to peer services are scheduled for 08:00 UTC on October 2. Users do not need to take action in advance. Availability will appear on the Bitget platform when each phase goes live.

The September 24 incident is described by Bitget as the first security event of this nature in eight years of exchange operations. It is also among the largest reported centralized exchange thefts of 2026 by value. Bitget has asked users to follow only official channels for verified updates on withdrawals asset recovery and the investigation.

FomoPeek iOS app contains malware that can steal crypto wallets

FomoPeek, an iOS app marketed as a read only whale tracker for Solana, Ethereum, and TRON, is at the center of a serious wallet theft warning issued on September 19 2026. SlowMist and the OKX security team said versions 1.1 and 1.2 contained malicious code capable of exposing private keys, seed phrases, login credentials, chat records, and other files stored on an infected iPhone. The app was promoted as safe because it did not ask users to connect a wallet. That claim is why many people installed it for market alerts or small signup rewards, and why the compromise is so damaging.

Investigators said the affected cases involved private key leakage, and some victims had previously installed FomoPeek 1.1 or 1.2. Joint analysis found two modules unrelated to the stated product. One of those modules contained an iOS kernel exploitation framework with eight attack methods that could automatically choose a path based on device model and system version. Affected systems cited in the alert include iOS 12.0 through 18.7 and iOS 26.0 through 26.1. Older iOS builds were described as higher risk.

If the exploit succeeds, the app can escape the iOS sandbox, read and decrypt Keychain data, and access files belonging to other applications on the same phone. That is the core danger. A whale tracker should never need kernel access or Keychain decryption. SlowMist later published a deeper technical note stating that static analysis and dynamic testing confirmed two embedded frameworks, apptrace and libapptracecore, with capabilities that include remote configuration, kernel exploitation, sandbox escape, Keychain decryption, and cross app data collection. After the malicious functions were triggered in an isolated environment, the sample obtained a collection list aimed at 19 wallet and note taking apps from a command server and uploaded packaged Apple Notes data.

The same analysis said those modules were absent in version 1.0, first appeared in version 1.1, remained in version 1.2, and were removed in version 1.3. The confirmed risk window runs from September 9 to September 17 2026. Version 1.0 was released around August 29. Version 1.1 arrived on September 9. Version 1.2 followed on September 12. Version 1.3, released on September 17, stripped the exploit binaries. Uninstalling or updating after using 1.1 or 1.2 does not prove that keys were never stolen. Traffic captured during analysis showed the attack functions were enabled and running on a schedule, and the app connected to hidden servers that could receive remote commands.

On chain tracking by MistTrack focused on a primary attacker address, 0x6d37f2C5e8F8546b648D317295565dA95975f4BB. That address received about 579984 USDT and became active from September 15. Funds moved across Ethereum compatible chains and TRON. One related TRON address, TF2hm96RC2Aqon9FeQjGidofoC2J1zM8v1, was reported to have received more than 2.12 million USDT before the money was split and sent toward suspected over the counter platforms. Those totals can include mixed flows, so they should be read as investigator snapshots rather than a final victim loss number. Individual users have already reported drained wallets, including losses of several thousand dollars.

FomoPeek advertised itself as a monitoring tool only, with no custody and no private key handling. That marketing lowered suspicion. Users treated an App Store listing as a security guarantee. The incident shows that a trusted store listing does not stop a later update from shipping hostile code. For anyone who installed version 1.1 or 1.2, the practical response is to treat every seed phrase and private key stored on that phone as compromised. Check wallets for unauthorized transfers. On a device that never had FomoPeek installed, create a new wallet and generate a new seed phrase. Move remaining assets immediately. Update iOS to the latest available version. Do not reinstall FomoPeek. If funds already left the account, contact official support for the relevant exchange or wallet and keep the old phone as evidence.

The broader lesson is device hygiene. A read only crypto app sitting beside a hot wallet can still reach Keychain data if it breaks sandbox rules. High value keys belong on hardware wallets or on a phone that is not used for airdrop tools, experimental trackers, or reward apps. FomoPeek version 1.3 removing the exploit does not rehabilitate phones that already ran 1.1 or 1.2. Those keys should be retired, not monitored and hoped for.

Layer 1 Linera is shutting down after failed ICO sale

Linera, a Layer 1 blockchain project backed by a16z Crypto, announced on September 19, 2026 that it is ceasing operations immediately after its community token sale failed to meet the minimum funding threshold. The team said the shutdown is the result of insufficient capital and that emergency fundraising after the sale also fell short.

The project was founded by Mathieu Baudet, a former Meta researcher who previously worked on Libra and Novi. Linera positioned itself as a low latency Layer 1 built around a microchain architecture designed for real time applications. It raised about 12 million dollars across two seed rounds. In June 2022 it closed a 6 million dollar round led by a16z. In August 2023 it raised another 6 million dollars led by Borderless Capital, with a16z and other investors including GSR, Tribe Capital, Flow Traders and Laser Digital also participating.

Linera later launched a community round for its LNRA token on the Sonar platform from September 1 to September 8, 2026. The sale attracted roughly 848,000 to 900,000 dollars in commitments. The minimum target was 1.5 million dollars. Because the round did not close, all contributions were refunded. The team then tried to secure emergency funding to continue development through mainnet but was unable to raise enough capital.

In a Discord statement, the team said Linera would stop operating immediately and would not resume in the foreseeable future. The decision, it said, does not reflect on the technology, the team or the community. The project is winding down its application and Discord server. User points balances will remain on record, but the team said it cannot promise any future consideration for those points. The team still hopes to finish the protocol and launch applications later, but it offered no timeline.

The news has drawn attention because Linera had strong venture backing, years of development, testnets and an active points program. Many community participants farmed the project for a long period in expectation of a token generation event that will not take place under the current plan. The case highlights a broader pattern in crypto infrastructure: early venture funding and a public sale do not guarantee a path to mainnet if later capital markets remain weak.

Anyone who committed funds to the Sonar sale should look only at official channels for refund status. There is no confirmed LNRA claim process and no guaranteed airdrop attached to existing points. Linera joins a growing list of pre mainnet chains that raised significant capital and still could not convert that support into a lasting public network.

American Create a Strategic Bitcoin Reserve

The United States House Financial Services Committee voted on September 16 2026 to advance H.R. 8957, the American Reserve Modernization Act of 2026. The recorded vote was 28 to 21. The bill would place federally held Bitcoin into a Strategic Bitcoin Reserve managed by the Treasury Department and set long term rules for how those coins can be stored, reported, and used.

The measure is one of the most concrete legislative steps yet toward making Bitcoin a permanent part of the federal balance sheet. It would convert an existing presidential policy into statute rather than leave the reserve dependent on an executive order that a future administration could reverse.

What the American Reserve Modernization Act Would Do

The bill would consolidate Bitcoin acquired by the federal government through criminal and civil forfeiture into a single Treasury controlled reserve. Other digital assets seized by the government would sit in a separate Digital Asset Stockpile. The most important rule is a minimum 20 year holding period. Bitcoin placed in the reserve generally could not be sold, swapped, auctioned, or pledged during that time.

The legislation also requires quarterly public proof of reserve reports and independent third party audits. Supporters say this would give markets and taxpayers a clearer view of what the government actually holds. The bill further directs a study of budget neutral ways to add more Bitcoin over time and would allow states to store their own Bitcoin in segregated federal accounts. It also states that the government may not impair lawful private ownership or self custody of Bitcoin.

The bill does not require the Treasury to buy Bitcoin on the open market with new tax revenue. Its core function is to lock in coins the government already owns and to create a formal custody and disclosure system around them.

How Much Bitcoin the US Government Holds

On chain estimates put US government holdings near 324000 to 328000 Bitcoin. The coins came mainly from major forfeiture cases, including Silk Road related seizures, the Bitfinex hack recovery, and later enforcement actions. Those figures are market estimates based on wallet attribution, not an official audited disclosure. That gap in official reporting is one reason lawmakers added proof of reserve language to the bill.

President Donald Trump signed an executive order on March 6 2025 that directed agencies to retain forfeited Bitcoin instead of selling it at auction. The American Reserve Modernization Act is designed to write that policy into law and add custody, audit, and reporting standards around it.

Why the Timing Matters

The committee vote came one day after the Senate failed to advance the Clarity Act, a broader crypto market structure bill. That procedural vote fell short of the 60 votes needed to move forward. The contrast has shaped the political conversation. One major crypto bill stalled in the Senate while a narrower Bitcoin reserve bill moved through a House committee.

H.R. 8957 was introduced on May 21 2026 by Representative Nick Begich of Alaska and co led by Representative Jared Golden of Maine. Most original cosponsors are Republicans. Some Democrats on the committee raised concerns about Bitcoin volatility and whether a highly price sensitive asset belongs in a strategic reserve. An amendment offered by Representative Maxine Waters was rejected 21 to 28.

What Happens Next

Committee approval is not final passage. The bill still needs a vote on the House floor, then Senate consideration, then a presidential signature. No House floor vote has been scheduled. Even if the House passes the bill, the Senate remains a harder path after the Clarity Act defeat.

If enacted, the law would reduce the chance that a future president could quietly resume auctioning seized Bitcoin. It would also make government holdings harder to sell during market stress, which some investors see as a reduction in potential supply overhang. Critics argue that a 20 year lockup could leave taxpayers exposed to large paper losses if Bitcoin falls and that a volatile digital asset is a poor fit for official reserves.

Market and Policy Implications

The news is significant because it moves Bitcoin policy from campaign language and executive action into the regular legislative process. A statutory reserve would be harder to unwind than an executive order. At the same time, the bill is narrower than proposals that would force the government to buy hundreds of thousands of additional coins. Its immediate effect, if passed, would be legal permanence and disclosure, not a sudden wave of new purchases.

For readers following US crypto policy, the story is best understood as a split screen. Market structure legislation remains blocked in the Senate. Reserve legislation has cleared its first major House hurdle. Both tracks will now depend on votes in a Congress that has shown it can move one crypto bill and stop another in the same week.

The American Reserve Modernization Act is therefore not a finished policy. It is a committee stage bill with a defined custody model, a long holding period, and a live political fight still ahead.

Deutsche Bank launches institutional crypto custody

Deutsche Bank has announced the launch of a crypto custody service for institutional clients, marking a significant step by one of Europe's largest banks into regulated digital asset services. The German lender, which holds approximately 1.7 trillion dollars in total assets, said institutional clients will be able to hold and transfer Bitcoin, Ether and selected stablecoins through the bank once remaining regulatory approvals are completed later in 2026.

The service will initially be available to clients in Germany. Deutsche Bank said it is targeting portfolio managers, hedge funds, custodians, brokers and asset funds, groups that already operate within the bank's existing compliance and operational framework. The bank also noted interest from corporate clients exploring blockchain technology and from a smaller number of digital asset firms.

Gerald Podobnik, co-head of Deutsche Bank's Corporate Bank, described digital assets as a complement rather than a replacement for the traditional financial system. He said the bank sees crypto as new rails that can coexist with existing market infrastructure while benefiting from the trust, security and investor protections that regulated financial institutions provide.

The announcement follows years of preparation. Deutsche Bank first outlined digital asset custody plans in 2022 and applied for a German custody license. In 2023 the bank invested in Swiss digital asset firm Taurus and partnered with it on custody and tokenization technology. In 2025 reports indicated Deutsche Bank would also work with Bitpanda Technology Solutions to help build the offering. The rollout comes as the European Union's Markets in Crypto Assets regulation has given banks clearer legal grounds to offer custody and related services.

Deutsche Bank said it plans to expand the range of supported assets over time and may include tokenized financial instruments. The move places the bank among a growing number of large European institutions that have begun offering or preparing institutional-grade crypto custody in 2026.

For institutional investors, bank custody reduces reliance on specialist crypto firms and allows digital assets to sit alongside traditional holdings under familiar banking relationships. The development is likely to be watched closely across Europe as more traditional banks integrate crypto into their core securities services.

US Senate fails to advance the Crypto Clarity Act

The United States Senate on September 15 2026 rejected a motion to proceed on the Digital Asset Market Clarity Act also known as the Clarity Act or H.R. 3633. The vote ended 49 in favor and 50 against falling 11 votes short of the 60 vote threshold required to advance most legislation in the chamber. The outcome represents a significant setback for the cryptocurrency industry which had made passage of comprehensive market structure legislation its top policy priority in Washington.

The Clarity Act aims to create the first nationwide regulatory framework for digital assets in the United States. It would classify certain tokens whose value is tied to a decentralized blockchain as digital commodities under the primary jurisdiction of the Commodity Futures Trading Commission. Other assets more closely resembling investment contracts would remain under Securities and Exchange Commission oversight. The bill also sets registration requirements for exchanges brokers and dealers imposes anti money laundering rules and includes limited exemptions for token offerings on mature blockchains. A version of the legislation passed the House of Representatives in 2025 by a wide margin.

Senate Republicans released a revised draft of the bill shortly before the vote incorporating 126 changes requested during months of negotiations. Those changes included new ethics language and a role for state attorneys general in enforcement. Supporters argued the updates addressed concerns from Democrats and the banking sector particularly around stablecoin rewards that could compete with traditional bank deposits. The effort was not enough to secure bipartisan support.

All voting Democrats opposed the motion. Four Republican senators also voted no Susan Collins of Maine Josh Hawley of Missouri Jerry Moran of Kansas and Thom Tillis of North Carolina. Tillis later explained that his no vote was procedural so he could file a motion to reconsider and keep the option of bringing the measure back later. Senator Chris Coons of Delaware did not vote. No Democrat or independent supported advancing the bill.

The central point of disagreement was ethics provisions covering public officials crypto holdings. Democrats cited President Donald Trumps reported 1.4 billion dollars in crypto related income in 2025 from ventures including World Liberty Financial and a memecoin. They argued the bill did not require sufficient divestment or impose strong enough restrictions on family members and past proceeds. Several Democrats who had previously engaged in negotiations including Kirsten Gillibrand Mark Warner and Raphael Warnock ultimately voted against the measure. Republican opponents raised separate concerns about the impact on community banks.

Bitcoin declined about 1.3 percent in the hours after the vote falling below 76000 dollars. Shares of crypto related companies fell more sharply with Coinbase dropping more than 8 percent and Robinhood more than 3 percent. Industry groups that had spent more than 100 million dollars on advocacy expressed disappointment. Prediction markets lowered the odds of the bill becoming law in 2026 to roughly 6.5 percent.

Congress is scheduled to leave Washington for recess ahead of the November 2026 midterm elections. That timeline leaves little room for further negotiation in the current session. Some Republican aides have described the legislation as effectively stalled for now though the motion to reconsider filed by Senator Tillis technically keeps a narrow path open. In the absence of new statute the industry will continue to operate under existing guidance and enforcement actions from the SEC and CFTC.

The failed vote does not end debate over digital asset regulation. Both parties have acknowledged the need for clearer rules after years of uncertainty and high profile failures such as the collapse of FTX. Future progress will likely depend on the outcome of the midterms and whether lawmakers can resolve remaining differences over ethics standards and the treatment of stablecoins. Until then market participants face continued regulatory ambiguity in the United States.

CoinEx is shutting down after nearly 9 years

CoinEx has announced that it will cease exchange operations and begin an orderly wind down after nearly nine years in the market. The notice was published on September 14, 2026 and takes effect from September 15, 2026. The Seychelles based platform said the decision followed a prolonged downturn in cryptocurrency markets, a sharp drop in industry trading volume and liquidity, and rising regulatory requirements and compliance costs across major jurisdictions.

The announcement has been widely reported after WatcherGuru and other market accounts shared the news on X. Reuters, The Block and several crypto publications later confirmed the details against CoinEx official notice titled Important Notice on CoinEx Orderly Cessation of Operations.

Why CoinEx Is Closing

CoinEx said management reached the decision after a prudent review of market conditions and operating risk. According to the exchange, overall industry activity has contracted significantly while the cost of meeting rules in major markets has moved beyond what the company considers a reasonable boundary.

Founder and chief executive Haipo Yang added a more personal explanation. He said CoinEx operated for nine years but did not become one of the leading exchanges in the industry. Yang wrote that security and compliance risks attached to running a centralized crypto exchange have become increasingly difficult to contain. Revenue can fall, he said, but responsibility does not. Carrying unlimited risk for limited revenue is no longer a rational choice.

Yang also said he seriously considered selling the platform and rejected that option. In his view, users entrusted assets to CoinEx based on trust in the platform and, in many cases, in him personally. Transferring that trust to a new owner was not the right way to end the journey. He said the goal is a clean ending in which users can withdraw in full and employees can leave with dignity.

Wind Down Timeline

The closure is staged rather than immediate. From September 15, 2026 CoinEx will stop new user registrations and stop paying referral rebates and campaign rewards. Futures markets will enter reduce only mode, meaning traders can close existing positions but cannot open or increase them. The platform will also stop accepting new subscriptions or orders for fiat services, margin trading, loans, Earn, staking and strategic trading.

On September 22, 2026 all non spot services will end. On chain deposits will stop except for CET deposits, which remain available until September 29. Remaining futures positions that are still open on September 22 are scheduled for forced settlement at the index price. Earn and staking products will be redeemed by the platform, and unpaid loans will be processed under existing liquidation rules.

On September 29, 2026 spot trading will stop and unfilled spot orders will be canceled. CoinEx Smart Chain and OneSwap will also cease operations. From 02:00 UTC on that date the platform will begin processing non USDT assets that have not been withdrawn in original form.

Withdrawal services remain open until 02:00 UTC on December 22, 2026. After that deadline the exchange says it will stop operating.

What Happens to User Assets

CoinEx stated that its asset reserve ratio exceeds 100 percent and that user balances are fully backed and available for withdrawal during the wind down window. The company pointed users to its published proof of reserves.

Users who want to withdraw assets in their original token form are told to complete those withdrawals before 02:00 UTC on September 29, 2026. After that time, assets with external market liquidity may be sold and converted into USDT, with net proceeds credited to spot accounts. Assets with little or no external liquidity may be delisted, and CoinEx said it will no longer take responsibility for custody or redemption of those tokens after the cutoff.

Any USDT that remains on the platform after December 22, 2026 will be moved into independent custody. CoinEx said a monthly custody fee of 5 percent of the original balance will apply. Users may later submit claims through support at coinex.com, and identity checks may be required. The claim window described in the notice runs until August 22, 2028.

CET Buyback and Related Products

CoinEx Token, or CET, will be repurchased at a fixed price of 0.005 USDT per CET. From September 15 to September 29 the platform said it will keep buy orders on the CET USDT pair at that price, with no quantity cap and with trading fees waived on that pair. From September 29 any CET still left in user accounts will be bought back automatically at the same price and converted into USDT. CoinEx said no further CET redemption channel will be offered after that.

CoinEx Wallet and CoinEx Vault are described as separate businesses and are not included in the exchange shutdown. ViaBTC, the mining pool associated with the same founder, has also said it operates independently and is not part of the exchange closure.

Security Warning

CoinEx called the September notice its final official announcement. The company warned that any later message issued in its name, including so called new rules or policy updates, should be treated as fraudulent. It said it will never ask for private keys, passwords or verification codes, and will never ask users to send funds to unlock accounts, claim compensation or receive airdrops.

Industry Context

CoinEx launched in December 2017 and grew as a mid sized global exchange linked to the ViaBTC group. Over the years it faced the same pressures seen across centralized venues, including tighter regulation in Europe under MiCA, periodic token delistings, and earlier operational shocks such as a 2023 security breach. Several other exchanges have also wound down in 2026, and CoinEx exit adds to a broader consolidation among platforms that can no longer justify the cost and liability of remaining open.

What Users Should Do

Anyone with balances on CoinEx should treat the calendar as firm. Withdraw as early as possible, allow extra time for network congestion and confirmation delays, and complete original asset withdrawals before the September 29 cutoff if that matters. CET holders can sell into the advertised 0.005 USDT buyback window or wait for the automatic conversion. Users should avoid new deposits and ignore unofficial messages that claim to speak for CoinEx after this notice.