The Polylog Crypto Intelligence Brief

Morning Edition · Tuesday, August 11, 2026

Crypto

SEC Sets August 14 Vote to Propose "Regulation Crypto," Its First Formal Rulebook for Token Issuance

The three-member commission would open the proposal to public comment for two to three months, putting agency rulemaking ahead of a stalled Senate bill that one bank now gives a one-in-four chance this autumn.

4 sources
Corroborated

Crypto

BTCPay Server Pledges Up to 3 Bitcoin to Recover Funds Drained From Merchant Lightning Nodes

The theft follows Boltz suspending its swap service on August 3, citing automated probing assisted by artificial intelligence (AI), a shutdown that left several wallets without swaps until Blockstream announced a second implementation.

3 sources
Corroborated

Crypto

Aztec Discloses a Critical Flaw in the Proving System Behind Its Live Privacy Network

Core contributors found through internal AI-assisted auditing that an attacker might construct a proof passing verification for a transaction the network should reject, the second critical proving-system bug the project has disclosed this year.

3 sources
Corroborated

Crypto

Buterin Rewrites Ethereum's Roadmap Around Quantum Safety, Native Privacy and Native Rollups

Verifiable delay functions and a set of virtual-machine improvements drop down the list, while keyed nonces, lean privacy pools and AI-assisted formal verification move up.

3 sources
Corroborated

Crypto

Bitcoin's BIP-110 Fork Stalled After Two Blocks and Now Trails the Main Chain by More Than 300

Signaling support reached about 2.6% against a 55% threshold, and with almost no hashrate the minority chain would need roughly six years to reach the difficulty adjustment that would make it usable.

2 sources
Corroborated

Crypto

A Rounding Bug and a Trusted Price Feed: This Week's Exploits Hit Code That Worked as Written

Researchers published a working proof-of-concept for a rounding flaw in the USM stablecoin's withdrawal function, while the pattern behind the largest recent losses remains authorized inputs rather than broken contracts.

5 sources
Plausible

Crypto

Strategy Sold 1,690 Bitcoin Below Its Average Cost to Fund a Preferred-Share Buyback

The company raised $108.6 million at an average of $64,262 per coin, roughly $11,000 below what it paid on average, and is holding $4.75 billion in cash after learning that bitcoin reserves do not substitute for dollars in investors' eyes.

4 sources
Corroborated

Crypto

Crypto Treasury Companies Post Billion-Dollar Losses as One Ethereum Holder Says Conversion Would Take 90 Days

SharpLink reported a $1 billion six-month loss against a $1.7 billion staked ether position, Trump Media booked $190.4 million of markdowns, and Keel left United States bitcoin mining entirely to build artificial-intelligence data centers.

5 sources

Crypto

Grayscale's Staking Funds Must Sell Their Rewards at Least Quarterly, Turning $1.1 Billion of Stake Into Recurring Supply

The same week, the asset manager abandoned its planned Cardano, Polkadot and Hedera exchange-traded funds, none of which ever became effective.

2 sources
Corroborated

Crypto

South Korea Would Give Exchanges Seven Days to Freeze and Sell a Debtor's Crypto Under Proposed Seizure Rules

Civil creditors, not just prosecutors, could compel custodians to disclose, transfer, swap and liquidate holdings, extending court enforcement into assets that were designed to sit outside it.

3 sources
Corroborated

Crypto

Pump.fun Collected $10 Million in Weekly Fees and Passed Hyperliquid as On-Chain Capital Keeps Concentrating

Ethereum now holds $41.54 billion of the $75.46 billion locked across decentralized finance, while Binance strips margin support from two smaller tokens and Robinhood's chain grew 20.3% in a week.

2 sources

Crypto

Bitcoin Stays Below $65,000 for a Fourth Day While the Largest Wallets Add Coins

XRP and ether led the declines as an oil rally revived inflation concerns before Wednesday's United States consumer price data, and the count of wallets holding more than 10,000 bitcoin rose to 90.

4 sources