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Cryptoccino — Tuesday 13 October 2026

☕ 7 min read

Today's Roast

Single shot · top move 3.7% (SOL)

The Pour. Liquidations cleared $770 million, a whale surfaced after six years, and someone was selling tampered hardware wallets the whole time.

Today. Tampered Ledger devices traced to Malaysian reseller CryptoBilis, $93M tracked, OneKey cuts ties Security Desk · Bitcoin swings between $82K and $83K as $770M in liquidations sweep levered longs Markets · Evernorth lists on Nasdaq with 473M XRP but 80% of SPAC investors already cashed out Projects & Money.

Prices

  • BTC$83,299−0.4%
  • ETH$2,509−1.5%
  • BNB$744−1.0%
  • SOL$108−3.7%
  • XRP$1.37−2.9%
  • DOGE$0.0844−3.0%

SECURITY DESK

Tampered Hardware Wallets Sold Through Malaysian Reseller CryptoBilis Have Drained Up to $93 Million

bloomberg_crypto coindesk coindesk decrypt

Fear & Greed57/100Greed −16 / 7d

What happened. Ledger has confirmed that at least one device sold through Malaysian reseller CryptoBilis contained an unauthorised hardware implant. Investigators have traced up to $93 million in suspected losses to victims who bought through the channel, with $10 million frozen so far. CryptoBilis has stopped selling hardware wallets, and competitor OneKey has now revoked the firm’s reseller authorisation entirely.

Why it matters. This is the first publicly confirmed case of a physical supply-chain implant in a major hardware wallet line, and it shifts the threat model for anyone who did not buy direct from the manufacturer. Ledger says its own systems and direct-sale channels are unaffected, but that framing does little for the victims, and the $93 million exposure figure is still growing as investigators trace wallets.

The catch. Ledger is describing confirmed cases as “limited”, which is doing a lot of work given the scale of funds traced. The $10 million frozen versus $93 million tracked ratio suggests most of the money is already in motion through mixers or OTC desks. Anyone who acquired a Ledger or OneKey device through a third-party reseller, particularly in Southeast Asia, should treat it as compromised until verified.

Markets

Over $770 million in liquidations swept the book as Bitcoin broke below $82,000. Long positions accounted for roughly $686 million of the flush, the bulk of it unwound in a single 24-hour window as dollar strength and Treasury yields at multi-decade highs kept risk appetite capped. Bitcoin has since clawed back above $83,000, partly decoupling from a simultaneous slide in Korean equities and Nasdaq futures. theblock cryptobriefing coindesk

A dormant whale moved $378 million in BTC after six years offline. The wallet received 4,582 BTC in March 2020 when those coins were worth roughly $41 million. The coins are now worth nearly ten times that, and the move landed right in the middle of the liquidation event, adding to onchain noise traders were already watching. theblock

Bearish options dominated Bitcoin flow, making up 53.5% of the week’s volume. October rate-hike odds have softened, but put-heavy positioning signals that the options market is hedging against further downside rather than chasing a recovery. US CPI data later this week is the next macro catalyst traders are anchoring around. cryptobriefing decrypt

Spot Bitcoin ETFs bled over $600 million last week. The outflow streak underscores the macro headwinds even as Bitcoin held the $83,000 handle. The Fear and Greed Index sits at 57 but is down 16 points over seven days, a divergence worth watching given how quickly sentiment shifted from August’s peak of 82. coindesk decrypt

Projects & Money

Evernorth listed on Nasdaq with 473 million XRP, but 80% of SPAC investors redeemed before the open. Shares ticked up 5% at the opening print, though the XRP treasury is already worth roughly 40% less than when the SPAC deal was signed. The company has hired a former Coinbase investment executive to manage the stash through lending, liquidity provision, and yield strategies. decrypt theblock cointelegraph_defi

Bitmine’s Ethereum treasury crossed 6.03 million ETH, with 84% staked. The firm added 12,532 ETH last week at a cost of around $32 million, with Tom Lee flagging that accumulation is nearly complete and suggesting conditions for what he describes as the largest crypto bull cycle on record. At 4.9% of circulating supply, Bitmine is becoming a meaningful factor in ETH’s available float. theblock decrypt

SWI raised $894 million to convert former FTX miner Genesis Digital into an AI compute operation. The capital will fund the transformation of Genesis Digital Assets’ data centre infrastructure from proof-of-work mining to GPU-dense AI workloads. It is the latest in a string of deals where distressed crypto mining capacity is being repurposed for AI inference and training demand. coindesk

Security Desk

CryptoBilis hardware wallet supply-chain compromise: full story in the Lead above. Up to $93 million traced, $10 million frozen, physical implants confirmed in at least one device. OneKey has revoked CryptoBilis reseller status. bloomberg_crypto

A dormant integer-overflow bug on the XRP Ledger could have allowed unlimited XRP minting. The flaw, sitting in the payment engine since 2015, was an integer overflow that under specific conditions could have produced spendable XRP beyond the 100-billion supply cap. It has been patched, and there is no evidence of exploitation, but the disclosure raises questions about how long critical bugs can hide in live financial infrastructure. decrypt coindesk

SEAL’s Q3 2026 threat intel summary maps the top ten attack vectors from the quarter. The report covers the dominant exploit patterns across bridges, lending protocols, and MEV-adjacent vectors from July through September. Worth pulling for security and risk teams before planning Q4 audits. seal_radar

A UK crypto trader was robbed of roughly $800,000 in a violent home invasion. The incident is part of a pattern of physical attacks targeting known or suspected crypto holders in Europe. Operational security around public wallet disclosures and social media activity is increasingly a first-order concern for anyone with material holdings. cryptobriefing

On the Hill

Crypto PACs have deployed $2.7 million on House races with 22 days to the midterms. The latest ad spend targets competitive districts where pro-crypto candidates are polling within margin. The pattern is consistent with the PAC’s stated goal of building a durable legislative bloc regardless of which party holds the majority. cointelegraph_regulation

The FSB flagged cross-border stablecoin risk and AI-driven cybersecurity threats ahead of the G20 finance meeting. The watchdog is calling for coordinated information sharing and contingency planning for a stablecoin crisis scenario, framing AI as both a systemic risk amplifier and a direct threat vector for financial infrastructure. The timing, just before G20, suggests these themes will shape the next round of international regulatory coordination. cointelegraph_regulation coindesk

Australia’s ASIC proposed leverage caps and negative-balance protections for crypto-settled derivatives. The draft rules would bring CFDs settled in digital assets in line with the leverage limits already applied to fiat-settled retail derivatives. Firms offering these products to Australian retail clients will need to review their margin and liquidation frameworks if the proposal is adopted. cointelegraph_regulation

France’s lower house backed a reporting requirement for crypto wallets holding over $112,000. Holders who fail to declare qualifying balances could face fines of up to 10,000 euros under the proposal. The measure still needs to clear the Senate, but it signals that European jurisdictions are tightening self-custody disclosure rules independent of MiCA. cointelegraph_regulation

What else is grinding?

  • Blur is shutting down its NFT marketplace frontend next month while leaving the protocol onchain, and the BLUR token dropped more than 20% on the news. theblock
  • Binance is also closing Binance Pool and all related mining services on 10 November, shrinking its product surface further as it focuses on core exchange and AI trading tools. cryptobriefing
  • Morgan Stanley says it expects to support tokenised equities for clients in Q1 2027, with infrastructure already in build. theblock
  • Kraken’s parent Payward has received full market approval from Dubai’s VARA, clearing the final hurdle for UAE dirham trading services. cointelegraph_regulation
  • Vitalik Buterin said public-key cryptography may need one or two further upgrades to remain secure against AI-accelerated threats, nodding toward lattice-based schemes. cryptobriefing
  • South Korea blocked 27 overseas crypto exchange domains for operating without local registration, the latest enforcement action under its tightening digital asset rules. cryptobriefing

Last sip. Fourteen million dollars frozen against ninety-three million traced, and the reseller is offline, but the implants are already in the wild.