Naiw Nakamoto
September 25, 2026
Newsletters
Bitget Halts Payouts ⚠️, Alloc Init Hides TXs 🔐, Bitwise Backs Bitcoin 💰
A new metaprotocol pairs encrypted notes with zero-knowledge proofs checked by indexers, while its peg design is unreleased.
Proof of Press
September 25, 2026 • Reading Time: 7 minutes
In partnership with
Greetings Bitcoiner,
Welcome to Issue #660 of Bitcoin Breakdown, where we’re bringing you your end-of-week Bitcoin Digest featuring all the need-to-know Quick Bits snippets and Quick Media. But first, today’s Top Stories:
Bitget lost about $351.6M from its hot and warm wallets, and its CEO points to a North Korea-linked group. Alloc Init proposed Shielded Bitcoin, private base-layer transfers without a soft fork. Bitwise found every crypto-holding institution it interviewed owns bitcoin, and none cut allocations during a roughly 50% drawdown.
The Global Platform for Quantitative Discovery
Looking to put your quantitative thinking into practice? We provide the tools and the platform.
With over 700,000 users from around the world, WorldQuant BRAIN enables students and researchers to explore ideas, develop quantitative skills and engage with a global community driven by curiosity.
⚠️ Bitget Loses $351.6M, CEO Points at North Korea
Bitget detected unauthorized transfers of approximately $351.6M from its hot and warm wallets on September 24, 2026. CEO Gracy Chen said cold wallets remain fully secure and Bitget's User Protection Fund, which holds over $464M, covers the full loss. Chen said IP addresses matching a DPRK group's VPN choices point to a North Korea-linked group.
Why it matters: Withdrawals were suspended while deposits and trading continued, which shows who controls exchange-held bitcoin during a breach. Self-custody means no wallet-service backend like the one attackers compromised at Bitget. Read more→
🔐 Shielded Bitcoin Hides Amounts With No Soft Fork
Alloc Init researchers Clara Shikhelman, Mikhail Komarov, and Aleksei Moskvin proposed Shielded Bitcoin, a privacy metaprotocol on the Bitcoin base layer. Shielded Bitcoin would conceal amounts, senders, and receivers using encrypted notes and zero-knowledge proofs that independent indexers verify, without a soft fork. A companion paper covering peg-in and peg-out via PIPEs is still unreleased.
Why it matters: Bitcoin leaves amounts and counterparties visible, and Shielded Bitcoin allows private transfers where only private spending keys control funds. Developer Vadim Zavodil flags the tiny early anonymity set, because a new shielded pool starts without what Zcash has accumulated. Read more→
💰 Bitwise: Every Crypto Institution It Met Owns BTC
Bitwise head of research Ryan Rasmussen said every institution Bitwise interviewed that owns crypto owns bitcoin, usually as its first, largest, and longest-held position. None of the 15 institutions cut crypto allocations during a roughly 50% market drawdown, while several bought more. Institutions that own Ethereum and Solana treat them as venture-stage bets with explicit exit conditions.
Why it matters: Most of these institutions hold bitcoin and gold as a pair against currency debasement, which signals allocators see bitcoin as money rather than a trade. Typical allocations of 1% to 2% leave ample room to grow. Read more→
Block, parent company of Square, Bitkey, and Cash App, joins the x402 Foundation to integrate lightning into HTTP 402 protocols, aiming to enable native microtransactions for autonomous agents.
Blink Wallet fully reimburses affected users following a software flaw that allowed an attacker to drain dozens of custodial accounts and access data of 3,400 customers.
NiceHash confirms that an individual user using its EasyMining service mined two Bitcoin blocks in one day without owning hardware, earning over 6 BTC worth more than $500K.
Samourai Wallet co-founder Keonne Rodriguez, serving five years under the charges of operating an unlicensed bitcoin money-transmitting business, faces another federal prison transfer following a grueling 30-day relocation ordeal.
Tether CEO Paolo Ardoino signals the return of USDT to the Bitcoin network, potentially through the RGB protocol with the help of a company called Utexo.
Brazil's central bank mandates licensed exchanges to report all self-custodial bitcoin transfers worth $10K or more, raising privacy concerns over state-level tracking.
StarkWare cuts the estimated GPU cost of preparing an experimental quantum-resistant Bitcoin transaction from $320 to under $67 after a weeklong optimization challenge.
Donald Trump's managed accounts bought Strategy shares near 2026 lows while the company paused its own bitcoin accumulation, federal ethics filings show.
US SEC Commissioner Mark Uyeda confirms that the regulator dropped major crypto enforcement lawsuits to protect its court credibility while preparing a sharp policy reversal for the industry.
Bitcoin holds near-zero correlation with rising yields long term, though sudden Treasury volatility spikes can still dampen short-term risk appetite, according to CoinDesk.
Deribit, a derivatives platform, sees $15B in bitcoin options expire Friday, with a 0.70 put-to-call ratio and calls stacked at $85,000 to $100,000 showing that traders favor higher prices.
River, a Bitcoin financial services firm, says bitcoin's near rally from its June low reflects scarce supply, not demand, with exchange volume still down 30% year to date.
Dave Weisberger, co-founder of crypto firm CoinRoutes, argues that punitive Basel banking rules requiring 100% capital reserves on bitcoin prevent regulated lenders from adopting bitcoin as collateral.
Rustin of Simply Bitcoin highlights how Donald Trump’s Strategy stock purchases and accelerating institutional adoption strengthen the long-term case for a $1M bitcoin price, illustrating why accumulating even 0.3 BTC could transform retirement planning (Sep 24 | 13:18 min watch).
Jeff Booth of Ego Death Capital, in an appearance on Bitcoin Magazine TV, argues that a $1M BTC price target 'thinks too small' because Bitcoin can act as humanity's first true free market protocol, absorbing exponential technological deflation while an insolvent debt-based fiat system faces inevitable debasement (Sep 24 | 16:27 min watch).
Luke Gromen & Lyn Alden, macro analysts, in an appearance on BTC Sessions' podcast, discuss how unsustainable US deficits and fiscal dominance will trigger disorderly market shutdowns and devaluations once balance sheets rush to exit debt into scarce assets like gold and bitcoin (Sep 22 | 16:38 min watch).
Giovanni Santostasi, director of the Scientific Bitcoin Institute, speaking at BTC Prague 2026, argues that Bitcoin behaves like a sustainable city rather than a bubble, using a testable power-law model to project that Bitcoin will reach $1M within eight years and $10M within twenty years (Sep 22 | 19:37 min watch).
Umbrel, a personal home cloud server platform, introduces umbrelOS 2.0 to turn spare hardware into private clouds with automated photo backups, multi-user accounts, virtual machines, and MCP AI agent integration so users reclaim total control over data (Sep 22 | 10:56 min watch).
Ben of Sovereign Sessions, a self-custody and privacy educator, explains how users can eliminate on-chain tracking and protect their financial privacy by combining Wasabi Wallet CoinJoin mixing, self-hosted nodes, and automated transfers directly to secure hardware storage (Sep 22 | 53:41 min watch).
Thank you for reading!
