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Coldcard Exploit Drains $114M, Circle's Arc Mainnet Set, Ethereum Staking Reward Burn Proposal

A hardware wallet vulnerability hits thousands of Bitcoin holders, Circle confirms September mainnet for its enterprise L1, and Ethereum researchers float a controversial burn mechanism. Here's what mattered.

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The Big Story

Coldcard losses near $114M as fourth attack wave hits: A fourth wave of coordinated sweeps against Coldcard-generated Bitcoin addresses struck Monday, pushing total losses near $114 million as Galaxy Research flagged roughly 449 BTC drained in the latest assault.

Coldcard maker Coinkite has issued a high-priority security alert, urging all users to immediately migrate their Bitcoin holdings to newly generated addresses, while network activity surged to multi-month highs with active BTC addresses climbing to 712,000 and whale transactions spiking as holders scrambled to secure funds. The exploit has rattled confidence in self-custody solutions, with Binance co-founder CZ calling for a more balanced approach to Bitcoin custody in the wake of the breach.

Breaking News

Circle's Arc Mainnet Date Is Set: Circle has confirmed September 16 as the mainnet launch date for Arc, its enterprise-grade Layer-1 blockchain, following the company's Q2 financial report.

Western Union Brings Remittances On-Chain: Western Union has officially launched its Stablecard on Solana, letting cross-border funds arrive as on-chain stablecoins and be spent immediately through the Visa network.

BlackRock Sets October Date for ETHA Reverse Split: BlackRock will carry out a one-for-three reverse share split on its iShares Ethereum Trust ETF (ETHA) on October 6, a structural adjustment rather than a change in investment mandate.

Uniswap Prepares to Launch pools.trade on Robinhood Chain: Uniswap is moving closer to activating its dedicated launchpad on Robinhood Chain, with pools.trade flagged as "coming soon" on its official site.

Top Stories

Ethereum researchers propose a kill switch for staking rewards: A draft Ethereum Improvement Proposal published on August 4 could fundamentally reshape how the network rewards its validators, with researchers including Justin Drake proposing a mechanism that would gradually burn validator rewards as the amount of staked ETH grows. The draft, provisionally labeled EIP-8361 and titled "Tapered Issuance," introduces a system that begins reducing or eliminating staking rewards once total staked ETH crosses a defined threshold. The proposal has reignited one of the most contentious debates in the Ethereum community over monetary policy and the risks of unchecked staking growth.

CLARITY Act Delay May Not Stop Crypto After All: The Digital Asset Market Clarity Act does not have the time to clear the Senate floor before the August 8 recess, and even if it does, it may be confined to the last possible moment, but Bitwise Chief Investment Officer Matt Hougan argues that a stall is not necessarily the end of the road. Hougan maintains that the SEC's shift in posture under Chair Paul Atkins matters more than the bill itself, suggesting the agency can deliver meaningful regulatory clarity even without congressional action. Senator Bill Hagerty continues to push for a vote before recess, calling the legislation a non-negotiable priority for American competitiveness in digital assets.

BitGo Selects Chainlink CCIP To Secure $7.7B WBTC Treasury: BitGo has named Chainlink CCIP as the exclusive cross-chain infrastructure for its Wrapped Bitcoin (WBTC) operations, representing over $7.7 billion in tokenized Bitcoin across multiple blockchains. The migration gives Chainlink a decisive win in institutional cross-chain infrastructure, validating co-founder Sergey Nazarov's argument that security, reliability, and connectivity set the protocol apart.

Deep Dive of the Week

Why Is Ethereum Proposing To Burn Staking Rewards?: Six Ethereum researchers and developers have formally submitted a draft EIP that would gradually burn validator rewards as staked ETH grows, with the burn ramping up once staking crosses certain thresholds. The proposal aims to address concerns about excessive staking concentration while potentially creating deflationary pressure on ETH supply, but it's sparked fierce debate over whether the network should fundamentally alter its economic model.

By the Numbers

$26.1 trillion: Base has recorded this much in stablecoin volume across the first seven months of 2026, representing a 49% increase over the $17.5 trillion processed in all of 2025.

712,000: Active Bitcoin addresses climbed to this level in the seven days ending August 4, a three-month high, as holders moved funds in response to the Coldcard exploit.

19,610 BTC: Wallets holding between 10 and 10,000 BTC added this much Bitcoin from July 29 onward, a 0.14% increase in holdings, as whales absorbed retail panic selling.

54%: This percentage of Russians admitted they know little or nothing about how cryptocurrencies work in a Rambler&Co survey, highlighting limited public understanding despite the country's push toward crypto legalization.

$29 billion: Ethereum's native DEX spot trading volume fell to this level in July 2026, marking a 76% decline from the all-time high of $122 billion set in August 2025.

349,600 shares: Intesa Sanpaolo, Italy's largest banking group, reported holding this many shares of BlackRock's iShares Staked Ethereum Trust ETF (ETHB) in Q2 2026, nearly tripling its exposure.

On Our Radar

BNB Chain AI Agent Hackathon: BNB Chain has launched "Build the Era," a strategic hackathon with one clear objective: create the definitive marketplace for its rapidly expanding network of on-chain AI agents.

Russia Legalizes Crypto Trading: President Vladimir Putin has signed into law Russia's first comprehensive cryptocurrency framework, legalizing crypto trading from September 1, 2026, though cryptocurrencies remain prohibited as a means of payment inside Russia.

Jay Clayton Now Runs US Intelligence: Jay Clayton, the former SEC chairman who signed off on the agency's landmark lawsuit against Ripple Labs, was sworn in as the nation's ninth Director of National Intelligence on August 3, 2026, following Senate confirmation.

Solana's 10x Burn Proposal Advances: A governance package that would dramatically increase the amount of SOL burned each day has cleared its first formal milestone, crossing the 15% support threshold required to advance on Solana's on-chain governance system.

Until Friday.