Daily Crypto Briefing – December 31, 2025

As 2025 draws to a close, the crypto market shows mixed signals with institutional adoption continuing alongside growing security concerns and regulatory developments.

Top Stories

Trump Media Plans Blockchain Token Rewards for Shareholders

Trump Media announced plans to distribute one crypto token per share to DJT shareholders on Crypto.com's Cronos blockchain. The tokens do not represent shares or rights in the company but mark another crypto venture for the Trump-linked entity.

JPMorgan Launches Tokenized Fund on Ethereum

JPMorgan's new tokenized money market fund on Ethereum signals growing institutional interest in onchain settlement and collateral workflows. This development highlights how traditional finance is increasingly integrating with blockchain infrastructure.

AI-Powered Romance Scams Target Bitcoin Holdings

A devastating case study reveals how scammers used AI technology and emotional manipulation to drain a Bitcoin retirement fund. The incident underscores the billion-dollar threat posed by increasingly sophisticated crypto scams.

Crypto Security Incidents Rise in 2025

SEAL, a crypto exploit triage group, reports an uptick in security incidents, including more private key leaks and a concerning increase in physical attacks against crypto holders.

Regulation

South Korea Sanctions Korbit Exchange

The Financial Intelligence Unit fined Korbit $1.9 million for anti-money laundering and customer verification failures, highlighting the critical need for robust compliance in crypto exchanges.

US Crypto Policy Criticism

Rep. Warren Davidson criticized US crypto regulations, arguing they threaten Bitcoin's core principles by increasing surveillance and stifling innovation.

CFTC Leadership Changes

CFTC Chair Selig appointed Amir Zaidi as chief of staff, citing his experience in approving Bitcoin futures as the agency prepares for expanded crypto oversight responsibilities.

Markets

Bitcoin ETFs End Outflow Streak

US spot Bitcoin ETFs attracted $355 million in net inflows, ending a seven-day negative streak and signaling resilient institutional demand during the holiday period.

Bitwise Files for 11 New Crypto ETFs

Bitwise submitted applications for 11 crypto strategy ETFs covering assets like Bittensor (TAO), Tron (TRX), Uniswap (UNI), and Zcash (ZEC) with mixed direct and indirect exposure strategies.

Holiday Trading Slump

Crypto markets hit yearly lows in trading activity as holiday liquidity dried up, with Bitcoin remaining range-bound between $86,500-$90,000.

China's Digital Yuan Interest Payments

China's decision to pay interest on digital yuan holdings starting in 2026 has sparked debate about US stablecoin policy, with Coinbase warning that restricting rewards could give China a strategic advantage.

DeFi

Lighter Surpasses Hyperliquid in Trading Volume

Lighter achieved $200 billion in 30-day trading volume, overtaking Hyperliquid amid its LIT token launch, though the platform saw $250 million withdrawn within 24 hours of the airdrop.

Protocol Exploits Continue

Unleash Protocol was drained of 1,337 ETH through a compromised multisig governance system, with stolen funds moved through Tornado Cash to obscure transaction trails.

Technology

Privacy Coins Outperform

Zcash emerged as the top-performing large-cap crypto of 2025, far outperforming Bitcoin and Ethereum as interest in confidential transactions surged.

Base Network Faces Builder Backlash

Developers on Coinbase's Base network are pushing back against the platform's focus on creator coins, arguing the narrative sidelines established projects and shows favoritism toward Zora.

Quick Hits

• Pi Network suspended wallet payment requests after large-scale scams drained millions from users
• David Beckham-backed Prenetics abandoned its Bitcoin strategy to focus on core health business after recent volatility
• Crypto billionaires were among 2025's biggest losers, with CZ and the Winklevoss twins seeing net worth declines
• Ethereum lost over $100 million in fees this year to corporate MEV extraction
• Binance user base reached 300 million with $34 trillion in trading volume
• Arthur Hayes dumped ETH for $6 million