Daily digests
Crypto News Digest: August 12, 2026
The stories that moved crypto on August 12, 2026.
40 stories
All crypto news
Morgan Stanley's infrastructure partner Zerohash rebuffed in pitch to be U.S. trust bank
Morgan Stanley's infrastructure partner Zerohash is being rebuffed in its pitch to become a U.S. trust bank, despite handling crypto plumbing for Morgan Stanley's E*Trade. Zerohash plans to re-file and hopes for a swift resolution, which could impact its ability to expand its services and potentially affect the growth of Morgan Stanley's crypto offerings in the U.S. market.
Securitize falls 20% after earnings miss as tokenization revenue falls short
Securitize is plummeting 20% after releasing its first earnings report as a public company, missing expectations with revenue falling short despite a record in tokenized assets and a surge in trading activity, with tokenized assets reaching an all-time high and trading activity increasing significantly, weighing heavily on investor sentiment in the digital securities market.
Hyperliquid treasury Hyperion triples quarterly profits as HYPE holdings rise in value
Hyperliquid treasury Hyperion is experiencing a significant surge in quarterly profits, with HYPE holdings tripling in value to $133 million during the second quarter, up from $71 million at the end of Q1.
Hawaii crypto ATM ban to take effect on Oct. 1
Hawaii is set to ban cryptocurrency ATMs and kiosks on October 1, joining Minnesota, Tennessee, and Indiana as the fourth US state to restrict their use. This move aims to prevent scams, but critics argue it may limit access to cryptocurrency for legitimate users. The ban could impact Hawaii's growing crypto adoption rate.
The AI-Generated Pattern Hides You From Surveillance Cameras—Including Flock
A Kansas City security researcher is using AI to evade surveillance cameras by teaching a model to generate camouflage patterns, running 31 million tests to perfect the technique. This AI-generated pattern, including Flock's, can potentially hide individuals from detection, raising concerns about privacy and security in an increasingly AI-driven world.
NYC council announces probe into ‘predatory marketing practices’ on prediction markets
The NYC council is investigating "predatory marketing practices" on prediction markets, with Council Speaker Julie Menin sending letters to four companies offering these services to New Yorkers. The probe aims to assess the firms' marketing tactics, potentially impacting the industry's growth in the city. This investigation may set a precedent for regulating prediction markets nationwide.
'Inner Thoughts' of Every Major AI Model Exposed in Massive Exploit
Researchers have exposed the inner workings of every major AI model by exploiting a global key used to encrypt reasoning tokens. They decoded 315,320 hidden thinking blocks from public logs, recovering sensitive information like passwords and live API keys in the process.
Goldman Sachs to acquire ETF manager NEOS in $2.25B deal
Goldman Sachs is acquiring ETF manager NEOS in a $2.25 billion deal, expanding its asset management arm. The acquisition adds NEOS' $30 billion ETF business, including Bitcoin- and Ether-linked income funds, to Goldman Sachs Asset Management. This deal strengthens Goldman Sachs' presence in the digital assets market, potentially boosting its cryptocurrency offerings and client base.
SEC clears Franklin Templeton funds to use onchain BENJI system for cash management
Franklin Templeton's traditional registered funds are cleared by the SEC to invest in its BENJI/FOBXX fund, allowing for onchain cash management. This decision enables the use of blockchain technology for cash management, marking a significant milestone in the adoption of digital assets in traditional finance.
China’s DeepSeek Upgrades V4 Pro: Claude Fable Is Only 5% Better at 4,500% the Price
DeepSeek is upgrading its V4 Pro model, Claude Fable, which was previously benchmarked 18 points behind Anthropic's flagship in April. However, DeepSeek's own numbers indicate Claude Fable is only 5% better, yet it comes at a staggering 4,500% price increase. This significant price gap raises questions about the model's value proposition in the AI market.
Trump sued over Truth Social’s early-access feed as firm explores licensing data to prediction markets
Trump is being sued over Truth Social's early-access feed, alleging it unconstitutionally restricts access to official posts. The lawsuit claims Trump's paid feed gives users an unfair advantage. Truth Social is also exploring licensing data to prediction markets, which could further monetize user engagement. This move may impact social media regulation and the future of influencer marketing.
Kraken adds S&P 500 to funded trading program, commodities to follow
Kraken's funded trading program is expanding to include round-the-clock exposure to the US S&P 500 equity benchmark, providing participants with opportunities to trade the index at any time. Commodities are also set to be added, further diversifying the program's offerings. This move aims to increase the program's appeal to institutional investors and traders.
Goldman Sachs' $2.25B NEOS Deal Hands It Ready-Made Bitcoin Income ETF Business
Goldman Sachs is acquiring NEOS for $2.25 billion, gaining a ready-made Bitcoin income ETF business. The deal includes NEOS's approximately $1 billion Bitcoin covered-call fund, instantly scaling Goldman's presence in the niche. This acquisition hands Goldman a significant foothold in the crypto ETF market, expanding its offerings and potentially drawing more institutional investors to the space.
Ethereum staking climbs to 34% as proposal targets validator rewards and ETH treasury firm yields
Researchers have filed EIP-8361, proposing a "tapered issuance burn" that destroys a growing share of validator rewards as Ethereum staking climbs to 34%. The proposal aims to target validator rewards and ETH treasury firm yields.
SpaceXAI Wants Grok Bot to Do Your Job—But It Needs Access to Your Accounts
SpaceXAI's Grok Bot is being developed to automate tasks, but its access to workplace software raises security concerns. The AI agent can navigate and coordinate with other bots, potentially compromising sensitive information. As Grok Bot gains capabilities, it needs access to users' accounts, sparking debates about data protection and control in the workplace, highlighting the need for strict security measures.
Goldman Sachs leaps into bitcoin income ETFs with $2.25 billion NEOS buyout
Goldman Sachs is acquiring NEOS for $2.25 billion, expanding its derivative platform to $130 billion in total ETF assets. This move positions Goldman to directly challenge BlackRock's BITA fund, as an analyst notes, in a bid to increase its market share in the rapidly growing bitcoin income ETF space, intensifying competition among financial giants.
Zoomsday: AI Used to Build Critical Zoom Exploit in One Day
Researchers have successfully built a critical Zoom exploit using AI in just one day, exploiting vulnerabilities that could allow an attacker to seize control of another participant's device without their knowledge or consent, potentially compromising sensitive information. This alarming development highlights the need for robust security measures in Zoom and other video conferencing platforms.
Polymarket taps ex-Uber and Bird exec Travis VanderZanden to boost growth
Polymarket is tapping ex-Uber and Bird exec Travis VanderZanden to boost growth as its new chief growth officer. VanderZanden, a veteran of blitzscaling companies, joins Polymarket with a proven track record of driving rapid expansion. His hiring signals Polymarket's intent to aggressively scale its decentralized prediction market platform, potentially increasing its user base and market share in the crypto space.
Bitwise cuts 14% of staff while still expecting growth
Bitwise is cutting 14% of its staff, joining a string of crypto companies including Coinbase, BitGo, Robinhood, Polygon, and Pump.fun, who have announced workforce reductions this year, driven by shifting market forces and the need to adapt to emerging technologies like AI, as the industry navigates a period of consolidation and growth.
After Coldcard Was Hacked, $15 Billion in Bitcoin Moved to Safety
Casa CEO Nick Neuman asserts that a massive $15 billion Bitcoin migration to safer wallets after the $130 million Coldcard exploit demonstrates distributed self-custody as Bitcoin's immune system, not its weakness. This movement showcases the resilience of decentralized finance, as users prioritize security by transferring their assets to more secure storage solutions.
Solana platform taps prediction market Kalshi for Wall Street-style high-speed data feed
Solana-based DoubleZero is integrating Kalshi's prediction market order book into its low-latency market data feed, catering to institutional demands for high-speed data. This move enables DoubleZero to provide Wall Street-style data to its customers. Kalshi's order book will be integrated into DoubleZero's platform, enhancing its market data capabilities and increasing its appeal to institutional investors and traders.
Wintermute plans $1 billion AI push beyond crypto: Bloomberg
Wintermute is planning a $1 billion push into AI, expanding its focus beyond the crypto market. The firm aims for non-crypto markets to drive over 50% of revenue by 2027, up from 10% currently. This diversification strategy is expected to reduce the company's reliance on crypto volatility and capitalize on emerging AI opportunities.
Bank of England tests stablecoin, digital pound interoperability in cross-border payments
The Bank of England is actively testing a cross-border trade finance flow combining stablecoin payments with simulated digital pound settlement through its Digital Pound Lab. The test involves a stablecoin payment and a digital pound settlement, aiming to enhance cross-border payment efficiency. This move could significantly boost the UK's digital currency adoption and global trade finance.
FlightAware drops Kalshi lawsuit one day after filing
FlightAware drops its lawsuit against Kalshi, a decentralized derivatives exchange, just one day after filing, following a reported change to at least one of Kalshi's event contracts. The contract now lists "Primary Source Agency" as the entity verifying flight cancellation data, potentially mitigating the dispute's impact on Kalshi's operations and market reputation.
Goldman Sachs to gain bitcoin and ETH income ETFs in up to $2.25 billion Neos acquisition
Goldman Sachs is set to acquire Neos Investments in a deal potentially worth up to $2.25 billion, gaining exposure to cryptocurrency income through Neos' Bitcoin High Income ETF, Boosted Bitcoin High Income ETF, and Ethereum High Income ETF offerings. This acquisition marks a significant expansion of Goldman Sachs' crypto presence, further legitimizing the space.
Fidelity Files to Let Its Ethereum ETF Stake and Pay Investors
Fidelity files a proposal to let its Ethereum ETF, FETH, stake up to 100% of its ETH holdings and distribute the rewards as quarterly cash to investors, pending SEC approval. This move aims to capitalize on Ethereum's staking rewards, potentially generating additional income for FETH investors. The SEC's review will determine the ETF's viability.
BIP-110 failure shows Bitcoin would be ‘almost impossible to reproduce,’ Plan B Network director says
Giacomo Zucco, Plan B Network director, emphasizes that Bitcoin's early development challenges make it almost impossible to reproduce, citing BIP-110's failure as a prime example. This event highlights the complexities of recreating Bitcoin's original code and development process, underscoring the uniqueness of Bitcoin's early days and its potential as a pioneering cryptocurrency. Market implications remain uncertain.
Crypto-Backed Loans, Explained: How to Unlock Cash Without Selling Your Bitcoin
Crypto-backed loans are now available, allowing users to borrow against their BTC, ETH, or SOL holdings while retaining ownership of their coins. These loans typically offer fixed interest rates and repayment terms, with amounts borrowed ranging from $1,000 to $1 million. This development enables users to unlock cash without selling their assets, potentially mitigating market volatility risks.
SKALE launches Agent Pit to let builders train AI agents before taking them live on Polymarket
SKALE Labs launches Agent Pit, a Polymarket-inspired prediction market sandbox on its zero-gas blockchain, allowing builders to train AI agents in a simulated environment before deploying them live on Polymarket. This move aims to reduce risks associated with live market interactions, enabling more efficient development and deployment of AI-driven prediction tools.
XRP Bridge Drained After Software Treats Fake Deposits as Real
A flaw in the XRP bridge's software has been exploited, allowing an attacker to create unbacked balances and withdraw XRP from the bridge's reserves, with the exact amount drained still unknown. This undetected vulnerability raises concerns about the security of cross-chain bridges, potentially compromising user trust and stability in the broader crypto market.
HashKey begins beta distribution of Hong Kong-regulated HKDAP stablecoin
HashKey begins beta distribution of Hong Kong-regulated HKDAP stablecoin, expanding institutional access as the city's stablecoin market develops. Authorized by Anchorpoint, HashKey now offers HKDAP, a regulated stablecoin pegged to the Hong Kong dollar, to institutional clients. This move supports Hong Kong's growing stablecoin ecosystem, potentially increasing adoption and usage of digital assets in the region's financial markets.
Crypto Long & Short:
Markets are breaking down due to capital being stuck in the wrong place, trapped by settlement cycles as risk reprices rapidly. LMAX Group's Jenna Wright argues that stablecoins and tokenization are becoming essential plumbing, allowing money to move as fast as the risk it supports, potentially resolving liquidity issues and stabilizing the market.
Miden bets on privacy stablecoins with introduction of USDCx
Miden introduces USDCx, a privacy-focused stablecoin, allowing users to transact without publicly exposing balances, counterparties, or transaction histories. Selective disclosure is enabled for compliance purposes. This move aims to strengthen user anonymity and security. As a result, USDCx is poised to gain traction in the market, potentially increasing adoption of private stablecoins and challenging traditional stablecoin offerings.
Bitcoin eyes $63K as US CPI relief sends September Fed rate pause odds to 60%
Bitcoin price action remains cautious despite US CPI inflation numbers matching expectations, sending September Fed rate pause odds to 60%. The relief in inflation data has not yet reflected in Bitcoin's price, with the cryptocurrency hovering around $59,500. Bitcoin's failure to hold above $63,000 has raised concerns over its support level, potentially impacting market sentiment and investor confidence.
Why Bitcoin Barely Moved Even as US Inflation Cools to 3.4%
Bitcoin remains largely unaffected by the US inflation rate cooling to 3.4%, a significant drop from previous months. The tame inflation print failed to spark a notable reaction in crypto markets, with Bitcoin's price barely budging. This muted response may be attributed to investors' growing skepticism towards inflation data and its impact on monetary policy, leaving the market relatively flat.
New York City Council opens probe into prediction market platforms
The New York City Council is currently investigating prediction market platforms for allegedly using "false, deceptive, or abusive marketing tactics." This probe aims to scrutinize the platforms' business practices, potentially impacting their operations and user base. The investigation's outcome may lead to regulatory changes affecting the prediction market industry and its participants.
Attackers keep hitting the wrong house in rural France after crypto millionaire moved: report
Attackers continue to target the wrong house in rural France, with a French couple in the Somme being hit in three separate home invasions after purchasing a former crypto millionaire's residence. The couple remains unaware of the reason behind the repeated break-ins, sparking concern and confusion in the local community, underscoring the challenges of dealing with unwanted attention.
America doesn’t need a second-class payments system
Rachel Anderika of Anchorage Digital argues that institutions qualifying for America's banking system should have a clear path to the country's payment system, eliminating the need for a second-class system. This would promote financial inclusion and efficiency, aligning with the US's goal of fostering a competitive and innovative payment landscape, benefiting consumers and businesses alike.
Standard Chartered-led Anchorpoint launches Hong Kong dollar stablecoin
Anchorpoint, a Standard Chartered-led platform, launches the Hong Kong dollar stablecoin HKDAP, allowing institutional and professional investors to mint and redeem tokens through authorized distributors HashKey Exchange and OSL Group. This move aims to increase adoption of stablecoins in Hong Kong's financial markets, potentially boosting institutional investment and liquidity, as Asian markets continue to drive global crypto growth.
Smart contract blockchain Solana nearly froze Wednesday, Marinade Finance says
Solana's smart contract blockchain is experiencing a near freeze, according to Marinade Finance, citing a 99.8% decrease in transaction processing and a significant backlog of unconfirmed transactions, with over 1,000 blocks pending validation. This has resulted in slow network performance and high fees, causing disruptions to users and applications reliant on the Solana network, impacting the broader decentralized finance ecosystem.