Crypto markets experienced a sharp rally as Bitcoin hit $85,000, driven by a massive short squeeze and nearly $1 billion in daily spot ETF inflows. However, security and legal troubles hit the sector as Bitget suffered a $351.6 million hack and New York sued Polymarket over sports contracts. Meanwhile, institutions continued pushing into tokenized real-world assets, highlighted by major private credit initiatives from RockawayX and Hashed.
exchange Bitget suffered a $351.6 million security breach on Thursday, prompting the platform to temporarily suspend withdrawals while it completes a security review. CEO Gracy Chen announced that unauthorized transfers affected a portion of the exchange's hot and warm wallet layers, though cold wallets and user funds remain secure. The compromised were consolidated into a single address across multiple blockchains, including ETH, BNB, AVAX, and USDT0. Bitget maintains a user protection fund holding over $464 million to cover the affected amount. and trading continue to operate normally during the investigation. Arkham Intelligence analyst Emmett Gallic initially flagged unusual wallet movements involving three hot wallets and one cold wallet. The company promised to publish a full incident report within 24 hours. Bitget's native token, BGB, fell 2.9% following the news, while and ether dropped 0.29% and 0.2% respectively over a 24-hour period. The incident follows a $320 million hack of the Liquid Network earlier in the month.
Token Price Changes (%)
BGB fell 2.9% following the hack, while bitcoin and ether dropped slightly.
RockawayX Commits $150 Million to Crypto Yield Products
investment firm RockawayX is committing $150 million to launch Catapult, a program designed to bring private credit, trade finance, and other -generating onchain. The initiative reflects the firm's bet that lending linked to the broader economy will become one of crypto's largest markets beyond trading. Catapult targets tokenized credit products such as trade and supply-chain finance, specialty asset-backed securities, collateralized loan obligations, and real-estate-backed credit. The program aims to provide yields above 12% from uncorrelated, less-liquid assets made more tradable by onchain solutions and market makers. RockawayX manages approximately $2 billion in digital assets, with roughly $300 million already deployed across its vault business. Tokenized real-world assets have grown rapidly to about $38 billion, though more than half of that market consists of tokenized money-market funds according to RWA.xyz. RockawayX forecasts that the broader tokenized real-world asset market will reach between $10 trillion and $20 trillion by 2030, outpacing Citi's base-case projection of $5.5 trillion. To scale operations, the firm is hiring traditional finance professionals for origination and alongside crypto-native operators for structuring and distribution.
2030 Tokenized Asset Projections ($T)
RockawayX targets up to $20 trillion by 2030, exceeding Citi's forecast.
Bitcoin Reaches $85,000 as Short Squeeze Triggers $648 Million Liquidations
reached $85,000 as a triggered $648 million in liquidations. U.S.-listed spot Bitcoin exchange-traded funds recorded a net inflow of $998.95 million on Monday, marking their largest daily intake since October 6, 2025. BlackRock's IBIT led the inflows with a significant amount, followed by Ark's ARKB and Fidelity's FBTC. Total net across U.S. spot Bitcoin reached roughly $111 billion on Tuesday, up 56% from their 2026 low of $71 billion on June 30. The intake lifted the month-to-date tally to a strong figure following August's inflows, though spot Bitcoin ETFs remained down $450 million on a year-to-date basis. Total volume and open interest shifted over the period.
Bitcoin ETF Inflows ($M)
Monday inflows reached a 2026 high of nearly $1 billion.
MoonPay to Acquire North Capital in $60 Million All-Stock Deal
payments company MoonPay has agreed to acquire North in an all-stock transaction valued at more than $60 million. The deal, announced on Wednesday, will fold the Utah-based private-markets investment platform into MoonPay as a wholly owned subsidiary pending U.S. regulatory approval. North Capital operates SEC-registered broker-dealers, an alternative trading system, a transfer agent, and an investment adviser, having previously supported roughly $9 billion in primary and secondary transaction volume. MoonPay chief executive Ivan Soto-Wright stated that the aims to build a regulatory foundation for the mass adoption of tokenized real-world . The purchase extends an acquisition spree that has included DFlow, Sodot, and Entendre as the company expands beyond crypto payments into tokenized securities, , and . North Capital last raised outside capital in an October 2021 seed round totaling $2.18 million. MoonPay itself carries a of $3.4 billion. The transaction remains subject to customary closing conditions and regulatory clearances.
New York State Sues Prediction Market Platform Polymarket Over Gambling Laws
New York State sued prediction market provider Polymarket on Thursday, alleging the platform is operating an unlicensed gambling business. Attorney General Letitia James and Governor Kathy Hochul filed the lawsuit against QCX LLC, doing business as Polymarket US, asking a court to halt operations and seek restitution, forfeiture of illegal gains, and penalties equal to three times those gains alongside $100,000 for each attempt or offer of sports wagering. Polymarket launched its U.S. platform in December 2025, offering contracts on sporting events to users between the ages of 18 and 20, while New York law requires users to be at least 21 for mobile sports betting. The state argues the event contracts constitute illegal gambling that bypasses taxes funding public schools and problem gambling programs. The lawsuit follows similar state actions against rival prediction platforms including Kalshi, which New York sued in July while seeking up to $36 billion in penalties. Prediction markets argue their products are financial under the exclusive jurisdiction of the Trading Commission, setting up an ongoing conflict between state gambling regulators and federal oversight. Polymarket chief legal officer Neal Kumar said the company intends to fight the lawsuit.
Fed requests public comment on payment stablecoin regulatory proposals under GENIUS Act
The proposed two wide-ranging rules on Thursday to implement its obligations under the GENIUS Act, establishing a formal oversight framework for payment issuers. The first proposal mandates that issuers fully back their tokens with high-quality liquid like short-term bills while imposing standardized requirements, including an operational-risk capital charge of 2% on the first $20 billion in stablecoins outstanding, 1.5% on the next $30 billion, and 1% on amounts above $50 billion. Issuers face a two-day window to process redemptions and must publish monthly disclosures examined by registered public accounting firms. A second proposal establishes an application process for Fed-supervised banks seeking to issue stablecoins through subsidiaries, requiring detailed business plans and financial information. Both proposals are now open for a 60-day public comment period.
Hashed Anchors $300 Million Digital Asset Private Credit Fund
venture firm Hashed has anchored a new private credit fund targeting $300 million, turning away from token rounds to back credit infrastructure for digital firms [1]. Managed by Thoro Management and founded by Mohamed Hamdy, the fund will lend U.S. dollars settled in directly to institutional borrowers [1]. Thoro will underwrite these companies as operating businesses using covenants rather than lending purely against crypto [1]. The strategy aims to bridge traditional private credit, a market exceeding $3 trillion, with tokenized private credit that sits at more than $14 billion in total onchain loans [1]. Traditional banks remain sidelined by regulatory capital rules, while existing crypto lenders continue to demand asset-backed collateral [1]. The fund launch follows Hashed securing a financial services permission from the Abu Dhabi Global Market [1].
Surging institutional inflows and rapid expansion into tokenized private credit show strong capital commitment despite severe security breaches and regulatory crackdowns. Whether tightening Federal Reserve rules for stablecoins will curb this momentum is the key question for investors tomorrow.
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