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Top Stories of The Week
South Korea’s tax office leaks wallet seed and loses $4.8M in seized tokens
South Korea’s National Tax Service accidentally exposed a crypto wallet seed phrase in an official press release on Thursday, leading to a loss of 4 million Pre‑Retogeum (PRTG) tokens worth about $4.8 million from the address, according to local media reports.
According to multiple Korean media reports on local sites Naver, Chosun and others, the press release related to the National Tax Service’s enforcement campaign against tax delinquents and seizures that the authorities had carried out. The release reportedly included an image of a Ledger cold wallet and a sheet of paper showing the wallet’s full mnemonic phrase without any blur or masking.
Blockchain researchers later identified an Ether address linked to the leaked phrase that briefly held the 4 million PRTG tokens before the entire balance was transferred out.
OpenAI wins defense contract hours after government ditches Anthropic
OpenAI has reached an agreement with the United States Department of Defense to deploy its artificial intelligence models on classified military networks just hours after the White House ordered federal agencies to stop using technology from rival firm Anthropic.
In a late Friday post on X, OpenAI CEO Sam Altman announced the deal, saying the company would provide its models inside the Pentagon’s “classified network.” He wrote that the department showed “deep respect for safety” and a willingness to work within the company’s operating limits.
The announcement came amid a turbulent week for the AI sector. Earlier the same day, Defense Secretary Pete Hegseth labeled Anthropic a “Supply-Chain Risk to National Security,” a designation typically applied to foreign adversaries. The ruling requires defense contractors to certify they are not using the company’s models.
Morgan Stanley applies for OCC bank charter to custody crypto
Morgan Stanley has applied for a de novo national trust bank charter, allowing the bank to hold digital assets on behalf of its clients — a move in rhythm with its recent crypto expansion.
A public filing with the Office of the Comptroller of the Currency shows the application for a bank trust charter was received on Feb. 18 under the name “Morgan Stanley Digital Trust, National Association.”
More details of the business plan were released on Friday, according to reports from Bloomberg and Forbes, revealing that the Morgan Stanley subsidiary will custody certain digital assets and execute purchases, sales, swaps and transfers to support client investment activities, along with crypto staking.
PayPal, MoonPay and M0 launch PYUSDx to let devs issue app-specific stablecoins
Payment giant PayPal is expanding access to its stablecoin through a new platform it says will allow developers to create their own US dollar-pegged tokens backed by PayPal USD.
PayPal, MoonPay and stablecoin platform M0 on Friday announced PYUSDx, a product aimed at helping developers launch PayPal USD
PYUSD-backed stablecoins for use within applications, or tokens designed for use inside a particular app, platform or ecosystem, according to a joint announcement shared with Cointelegraph.
The companies said the rollout is planned for next month.
“The next phase of stablecoin adoption is happening at the application layer. Developers want to build differentiated experiences, but they shouldn’t have to rebuild trusted monetary infrastructure from scratch,” said May Zabaneh, PayPal’s head of crypto.
Traders may rotate into Bitcoin if UBS’ bearish US stocks view comes true
Bitcoin price plunged below $65,500 on Friday, effectively erasing gains established on Wednesday. This correction closely tracked intraday S&P 500 movements after wholesale inflation data in the US triggered increased risk aversion. A report from investment bank UBS downgrading US stocks to neutral likely accelerated the surge in demand for the safety of fixed-income assets.
Investors fear that a potential doomsday scenario for the US equities market could drive Bitcoin to new yearly lows. While increased spending on artificial intelligence infrastructure remains a primary concern for some, Bitcoin’s long-term trajectory is unlikely to remain dependent on the technology sector.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $67,494 Ether (ETH) at $2,014 and XRP at $1.41. The total market cap is at $2.33 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin winners of the week are Kite (KITE) at 25.48%, Stable (STABLE) at 21.15% and pippin (PIPPIN) at 20.42%
The top three altcoin losers of the week are Bitcoin Cash (BCH) at 19.09%, Cosmos (ATOM) at 18.15% and Pepe (PEPE) at 10.11%. For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most Memorable Quotations
“If you consolidate with another player, sometimes two plus two equals six or more, you can win faster, because everybody in this market trading below net asset value is struggling.”
Wojciech Kaszycki, strategy advisor at BTCS
“This may be ‘Ethereum’s last hash function,’ so it’s important to choose wisely.”
Vitalik Buterin, co-founder of Ethereum
“Trust in Bitcoin has grown faster than that of any asset in history.”
River, financial services company
“I think the crypto community will be the first to perceive the threat, and to react to the threat, and they’ll be leading the way.”
Michael Saylor, executive chairman of Strategy
“[Transactions per second] is the metric that gets engineers excited, but is that what drives capital to the blockchain?”
Kevin Lepsoe, founder of ETHGas
“50% drawdowns are walk in the park for long-time BTC investors.”
Nate Geraci, ETF analyst and president of NovaDius Wealth Management
Top Prediction of The Week
Bitcoin bottom fractal calls for 130% rally, but is the model valid in 2026?
A Bitcoin bottom signal that appeared in 2023, ahead of a 130% rally in 2024, has flashed again this week, raising the possibility that the price is nearing another bullish inflection point.
At the same time, the broader data of liquidity, exchange-traded fund flows, and macroeconomic data changes the environment from two years ago, suggesting that the path forward may not mirror the previous cycle’s.
Data aggregator Swissblock noted that Bitcoin has now logged 25 consecutive days in its “extreme high risk” zone, the longest stretch on record and above the 23-day peak seen in 2023. Historically, an extended stay in this zone has aligned with late-stage drawdowns or a bottom signal.
Top FUD of The Week
Anthropic CEO responds to Pentagon order prohibiting military use
The CEO of AI company Anthropic, Dario Amodei, has responded to the United States Department of Defense and the White House, ordering military defense contractors that do business with the Department of Defense to stop using Anthropic’s products.
Anthropic objected to the use of its AI models for mass domestic surveillance and fully autonomous weapons that can fire without any human input, Amodei told CBS News on Saturday.
He added that Anthropic was fine with all of the US government’s proposed use cases for its AI models, except for surveillance and fully autonomous weapons platforms.
11 US senators request federal probe into Binance’s sanctions compliance
A group of 11 US senators has asked federal authorities to investigate whether crypto exchange Binance is complying with US sanctions and Anti-Money Laundering requirements, citing recent reports.
In a letter on Friday to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers urged a “prompt, comprehensive review” of the exchange’s compliance controls and its adherence to settlement agreements reached in 2023.
The senators pointed to allegations that approximately $1.7 billion in digital assets flowed through Binance to Iranian entities linked to terrorism, including groups connected to the Houthis and the Islamic Revolutionary Guard Corps. Investigators also reportedly identified more than 1,500 accounts accessed by users in Iran and potential activity connected to Russian sanctions evasion.
Tether froze $4.2B in tokens tied to illicit activity in 3 years: Report
Stablecoin issuer Tether has reportedly frozen roughly $4.2 billion worth of its USDt tokens connected to suspected criminal activity over the past three years.
Most of the blocked funds were restricted since 2023, as regulators and law enforcement agencies intensified scrutiny of crypto-related fraud and sanctions evasion, the El Salvador-based firm reportedly told Reuters on Friday.
Tether’s dollar-pegged USDt token is the largest stablecoin in circulation, with more than $180 billion outstanding, up sharply from about $70 billion three years ago.
Tether can freeze tokens directly on the blockchain by blacklisting wallet addresses when requested by authorities.
Top Magazine Stories of The Week
Would Bitcoin really be at $200K if not for Jane Street? Trade Secrets
Quant trading firm Jane Street probably has some impact on Bitcoin, but would the price really be at ATHs without its influence?
AI won’t make you rich but crypto games might, Axie founder steps down: Web3 Gamer
Here’s why you shouldn’t pivot to AI from Web3 Games, according to Pixels founder Luke Barwikowski.
Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns
Crypto lawyer Yuriy Brisov warns that the Clarity Act could repeat MiCA’s mistakes, particularly in how DeFi is treated.
Editorial Staff
Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame
Thomas Fahrer says multiple “low-probability” events could push Bitcoin into a “strong bull market.”
Read more
Crypto pioneer Joel Dietz is a true Renaissance man
“It was, in the end, a failed romance, but the poetry reflects the free-spirited nature of my paramour. I think poetry is a way to delve into the details of feelings.”
Read moreBitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author