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Anthropic Flags Unauthorized Tokenized Shares

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Anthropic Flags Unauthorized Tokenized Shares

The developer of Claude has updated its terms of service, warning against the third-party sale or transfer of its private equity.

Anthropic has updated the privacy and legal section of its support documentation today, May 12, with a direct warning against unauthorized sales of its private stock.

In its updated terms, the AI developer, known for creating the LLM Claude, states that any third-party offering of Anthropic shares, whether in the form of tokenized securities, special purpose vehicles (SPVs), or forward contracts, should be considered void and will not be recognized by the company. Anthropic also noted that all share transfers require explicit Board of Directors approval.

The updated policy explicitly lists eight firms it says are not authorized to buy or sell Anthropic shares: Open Door Partners, Unicorns Exchange, Pachamama, Lionheart Ventures, Hiive, Forge, Sydecar, and Upmarket.

That covers both on-chain and traditional secondary market venues. Jupiter’s PreStocks and Ventuals are not named, but presumably also fall under the broader SPV and tokenized securities prohibition.

RedStone co-founder Marcin Kazmierczak put numbers to the valuation disconnect in an X post this morning, noting that on PreStocks, tokenized Anthropic shares implied a $1.5 trillion valuation. “Anthropic’s last priced round in February closed at $380B post-money. The on-chain mark was effectively 4x the most recent negotiated price, on a venue holding 0.0015% of the market cap it was implying,” Kazmierczak wrote.

RedStone’s co-founder concluded that pricing private equity needs a different approach than pricing assets like Bitcoin or Ethereum: “illiquid assets need a different methodology. Primary sources. Last verified funding round. Authorized secondary trades.”

Meanwhile, Securitize recently partnered with Computershare to enable Issuer-Sponsored Tokens representing direct equity ownership — authorized by the issuer, with no SPV intermediary.

“Tokenization of equities is happening,” Kazmierczak wrote on X. “The question is whether it gets built on authorized rails with proper pricing infrastructure.”

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

Nokia Launches Agentic AI for Networks

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Nokia Launches Agentic AI for Networks

Nokia on Tuesday unveiled new agentic AI capabilities for its home and broadband networks, which it says will improve user experience, productivity and operational efficiency.

Under its agentic push, the company said it will embed AI agents and natural language interfaces across its x` to streamline planning and operations.

According to Nokia, the capabilities can improve first-contact helpdesk resolution rates to more than 50%, qualify network incidents within five minutes and reduce repeat visits to homes and construction sites by 50%.

Conversational AI assistants will provide technicians and support teams with instant access to product and troubleshooting knowledge, while AI-powered voice, text and image guidance will assist field engineers during fiber surveys and installations.

Sandy Motley, president of fixed networks at Nokia, said the company’s AI strategy is focused on improving both operational efficiency and customer experience.

Related:Prompt: AI Agents Are Becoming Operational Infrastructure

“AI makes your end-users less likely to churn, your engineering and helpdesk teams more productive, and your field teams connect more homes more quickly,” Motley said in a release. 

The Finnish telecommunications conglomerate is also using computer vision technology to validate installation quality and create digital twins of fiber-to-the-home networks.

Additional capabilities include automated diagnostics that detect network degradation before outages occur, and AI troubleshooting agents that perform root-cause analysis in home and access networks.

The launch comes as the telecom sector ramps up investment in autonomous AI systems, with Nokia predicting that spending on agentic AI in telecom will reach $6.2 billion by 2030.

 

 

Ripple-linked ETFs attract biggest inflows since January

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Ripple-linked ETFs attract biggest inflows since January

XRP exchange-traded funds (ETF) drummed up their biggest inflows since January amid a slew of developments at related company Ripple and favorable price action for the world’s fourth-largest token by market capitalization.

The five U.S.-listed spot XRP exchange-traded funds reported a combined $25.8 million in net inflows on Monday, the largest single-day haul since Jan. 5, when they drew $46 million in their first week of trading, according to SoSoValue data.

Franklin Templeton’s XRPZ led with $13.6 million, followed by Bitwise’s XRP at $7.6 million and Grayscale’s GXRP at $4.6 million. Canary’s XRPC and 21Shares’ TOXR reported no flows for the day.

Cumulative net inflows across all XRP spot ETFs now sit at $1.35 billion, with total net assets at $1.18 billion, representing about 1.3% of XRP’s market cap. Every XRP fund rose more than 4% on Monday alongside the underlying token, which climbed 1.2% over 24 hours to $1.47.

The flows come as Ripple announced the successful closing of a $200 million debt facility from funds managed by Neuberger Specialty Finance, the dedicated asset-based investment team within Neuberger, a global investment management firm.

The facility will support the continued growth of Ripple’s multi-asset prime brokerage platform, Ripple Prime, amid rising client demand for institutional-grade prime services and margin financing solutions.

Last week, Ripple said it completed a pilot tokenized U.S. Treasury settlement on the XRP Ledger with JPMorgan, Mastercard, and Ondo Finance, processing the redemption in under five seconds and bridging public blockchain rails with traditional interbank settlement infrastructure.

Separately, Ripple unveiled a four-phase plan to make the XRP Ledger quantum-resistant by 2028, positioning it for a potential “Q-day” when quantum computers can break current cryptography.

The roadmap included an emergency “Q-day readiness” phase that would force a migration to quantum-safe accounts and enable fund recovery using zero-knowledge proofs if quantum threats arrive sooner than expected.

Such institutional use cases may boost sentiment among ETF buyers, because they give XRP a function beyond speculative trading.

Meanwhile, spot bitcoin ETFs are on track for their seventh consecutive week of net inflows, with over $3.4 billion absorbed during the streak. The pattern of bitcoin leading, altcoin ETFs catching the spillover, and ether lagging behind has held through most of the year.

XRP remains down 39% over the past six months despite the ETF interest, with the token still well off its July 2025 all-time high near $3.65.

AI Is Making Fake Diplomas Easier. This Barcelona School Is Using Blockchain to Push Back

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AI Is Making Fake Diplomas Easier. This Barcelona School Is Using Blockchain to Push Back

St. Peter’s School Barcelona is deploying blockchain-verified academic records across its full student body, as schools face rising pressure to protect transcripts, diplomas and certificates from AI-assisted forgery.

The system will cryptographically certify grade reports, official certificates and parental consent forms.

It is being implemented through CertiEDUCA, a trust infrastructure product from BLOOCK, using Billions Network’s privacy-preserving identity technology, according to the announcement.

The rollout follows a limited pilot in 2023 and began school-wide at the start of the 2025–2026 academic year. St. Peter’s expects to issue more than 2,500 certified academic reports to over 600 student families this year.

St. Peter’s claims itself as the only international school in Barcelona offering the full International Baccalaureate Continuum in English, from nursery through the Diploma Programme.

The move comes as credential fraud is becoming easier to scale.

Credentialing experts have warned that AI tools can generate fake diplomas, certificates and even fake credential-issuing websites, making conventional document checks harder for schools, employers and universities.

Under St. Peter’s system, each document is digitally signed by the institution, timestamped and linked to a blockchain-based integrity proof.

Parents, universities or authorized third parties can verify a document through a validation page without contacting the school.

The school says no student personal data is published onchain. The blockchain is used as an evidence layer, while sensitive information remains inside the school’s controlled systems.

Dr. Teresa Ferrer, curriculum coordinator at St. Peter’s School, said the school believes “it’s essential that the certifications students receive can be verified and validated while safeguarding their privacy.”

“This system allows students to demonstrate their academic achievements without any risk of their personal data being traceable,” Ferrer said. “What surprised us was just how important certified, verifiable academic records are for students applying to the world’s most reputable universities.”

She said the system gives graduates “a real advantage” and gives the school “a more reliable and efficient way to manage trust at scale.”

Billions Network, formerly Polygon ID, positions itself around privacy-preserving verification for humans and AI agents. The company says its technology is based on zero-knowledge and identity infrastructure used across Web3 identity projects.

Evin McMullen, CEO and co-founder of Billions Network, said academic credentials remain among the most important documents a person carries, but the systems behind them have not kept pace with the digital world.

“St. Peter’s has built a secure credential system where the school retains full control, parents gain confidence, and students’ data is never exposed,” McMullen said. “You own your records, you decide what to share, and no one stores what they don’t need.”

The initiative reflects a broader shift in education technology: moving verification from manual confirmation to cryptographic proof.

MIT began issuing blockchain-based digital diplomas in 2017, allowing graduates to receive recipient-owned virtual credentials and allowing verifiers to authenticate diplomas written to the blockchain.

Blockcerts, an open standard for blockchain credentials, has also been used for academic, professional, workforce and civic records. Its model allows institutions to issue tamper-resistant credentials that can be verified independently.

In Europe, the trend is being reinforced by public-sector credential frameworks.

The European Digital Credentials for Learning framework defines digital credentials as verifiable versions of diplomas, certificates, micro-credentials and other learning records, issued by organizations and signed with an electronic seal.

DC4EU, a European digital credentials project, is testing education and professional qualification credentials under the EU’s eIDAS trust framework.

The European Blockchain Services Infrastructure, established by EU member states, Norway, Liechtenstein and the European Commission, is designed to support cross-border trusted services for public administrations, citizens and businesses.

The practical benefit for schools is speed. A university, parent or employer can check whether a document was issued by the school and whether it has been altered, without sending emails to administrators or waiting for a manual confirmation.

For students, the value is portability. A verified record can be shared with admissions offices or other third parties while reducing the need to expose underlying personal data.

That privacy distinction is central to the St. Peter’s deployment. The blockchain does not store student data, documents or personally identifiable information. Instead, it stores an integrity reference that allows a verifier to confirm authenticity without seeing more information than needed.

BLOOCK said the same CertiEDUCA model can support diplomas, course certificates, professional accreditations, micro-credentials and modular learning records.

Lluís Llibre, CEO of BLOOCK, said education is one of the sectors where “the gap between digital distribution and digital trust is widest.”

“Schools issue thousands of documents every year, and until now there has been no scalable way for parents or institutions to independently verify their authenticity,” Llibre said. “The architecture follows the same principle we apply across all our deployments: blockchain should be used to certify truth.”

The St. Peter’s deployment is not Billions Network’s only privacy-focused institutional project in Spain.

Earlier this year, the Spanish Red Cross worked with Billions Network and BLOOCK on RedChain, a blockchain-based aid platform designed to provide donor transparency while protecting recipient identities.

The education rollout shows a different use case for the same underlying logic.

Rather than using blockchain to store personal information, the system uses cryptography to verify that a trusted institution issued a document and that the document has not been modified.

That distinction may matter as schools try to adopt digital trust tools without weakening privacy protections under European data rules.

St. Peter’s is the flagship deployment for CertiEDUCA. The broader test is whether verified academic records can move beyond pilots and become standard infrastructure for schools that increasingly operate across borders, digital platforms and AI-driven fraud risks.

The article “AI Is Making Fake Diplomas Easier. This Barcelona School Is Using Blockchain to Push Back” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/st-peters-school-barcelona-rolls-out-blockchain-verified-academic-records/

Read Also: MoneyGram, Pairpoint and eToro Back Midnight’s Privacy Blockchain Before Mainnet

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

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Here’s Why Bitcoin Analysts Say BTC’s ‘Full’ Bullish Momentum is Back

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Here’s Why Bitcoin Analysts Say BTC’s ‘Full’ Bullish Momentum is Back

Market analysts said Bitcoin’s (BTC) upside remained intact despite the 2.5% correction from its multi-month high of $82,800 reached on May 6.

Key takeaways:

  • Bitcoin has successfully re-entered expansion territory as the Bull Market Support Band turned to support.
  • Bitcoin’s Stablecoin Supply Ratio has recovered from historic lows, indicating fresh liquidity is returning.
  • Bitcoin’s spot taker CVD flips positive, suggesting real spot demand is back

Bitcoin’s price momentum is expanding

Private wealth manager Swissblock stated that Bitcoin is “still at full momentum,” despite the slight correction from recent highs.

Swissblock said that the latest rally saw the Bitcoin price momentum “successfully reignited and pushed back into full expansion territory.”

Related: Bitcoin funding rates turn positive: Is BTC rally to $85K next?

Bitcoin is now consolidating inside the cost-basis battlefield, with the true market mean and the short-term holder cost basis around $80,000 acting as support and the active realized price at $85,000 as resistance. 

Meanwhile, “momentum remains structurally strong,” the wealth manager said, adding:

“As long as momentum stays above the transition area, bulls retain control.”

Bitcoin price momentum. Swissblock

Echoing this observation, analyst The Great Mattsby pointed out that Bitcoin’s Bull Market Support Band has now turned into support, while the 21-week exponential moving average has crossed back above the 20-week simple moving average.

“The trend has officially flipped back to bullish.” 

BTC/USD weekly chart. Source: X/The Great Mattsby

Bitcoin liquidity signals “strong recovery”

The Stablecoin Supply Ratio (SSR) has recovered from its lower historical range below 10, the same zone that marked market bottoms in mid-2021, 2022 and mid-2023. 

Each time the SSR recovered from these lows, Bitcoin broke out of range and staged a strong rebound, as shown in the chart below.

Bitcoin Stablecoin Supply Ratio: Source: CryptoQuant

The recovering SSR suggests that stablecoin liquidity is returning to exchanges again, potentially setting the stage for another bull run for BTC price.

The Binance Stablecoin Supply Ratio Oscillator tells the same story. The chart below shows that Bitcoin’s 90D Stablecoin Supply Ratio Oscillator has moved back into positive territory, reaching 12-month highs at 2.8.

“This reflects a strong recovery from the negative zone, with stablecoin purchasing demand becoming more active during the current rebound,” CryptoQuant analyst Zizcrypto said in a Tuesday QuickTake note, adding:

“For context, the oscillator previously reached 2.43 in May 2025 and 4.00 in November 2024 — both during stronger market phases.”

Stablecoin supply ratio oscillator. Source: CryptoQuant

Bitcoin’s transaction activity is at 20-month highs

The strength in BTC price is reflected in Bitcoin’s network activity, with daily transaction count rising by 116% in May to 831,450 on May 9.

This metric was last at similar levels in September 2024, before Bitcoin later rallied above $100,000 during the broader market surge following the US presidential election.

Bitcoin’s network activity is “more active than when it was at $100K,” analyst CW8900 said in an X post on Saturday, adding:

“The network is already showing signals of a bull market.”

Bitcoin daily transaction count. Source: CryptoQuant

Bitcoin’s daily active address count has also climbed, increasing by 7.1% over the last week to 707,719, while total fee volume surged 37% to $279,300 over the same period, according to Glassnode’s latest Market Pulse report.

“Such a significant increase suggests heightened onchain activity, potentially signaling bullish market conditions.”

Bitcoin daily active address count. Source: Glassnode

Increasing transaction count, daily active addresses and fees means more users are interacting with the network. It suggests high network activity, often correlating with increased interest and market confidence.

Bitcoin’s “real demand” is back

Bitcoin’s 90-day spot taker cumulative volume delta (CVD), a measure of the difference between buy and sell volume over three months, shows a “significant shift in capital flow structure,” according to CryptoQuant analyst Rei Researcher. 

The metric flipped positive (green bars in the chart below) in early May as the price broke above the $78,000 resistance and has remained positive since. 

“Taker Buy Dominance in the spot market indicates buying pressure from ‘major players’ (Whales/Institutions) looking to hold $BTC rather than just speculating via derivatives,” the Rei Researcher said in a recent Quicktake note, adding: 

“Real demand has prevailed. When bulls are willing to pay higher prices to own $BTC, a sustainable uptrend usually follows.”

Bitcoin spot taker CVD. Source: CryptoQuant

If the CVD remains green, it could set the stage for another rally as seen in the past. A similar occurrence in May 2025 accompanied 65% BTC price gains. 

Meanwhile, Bitcoin’s spot demand is also accelerating, with spot CVD rising 47% to $62 million from $42 million a week ago, additional data from Glassnode shows.

“This increase indicates a significant uptick in buying aggression among market participants,” the onchain data provider said, adding:

“This behavior implies heightened conviction, with aggressive traders actively setting higher market prices, potentially signaling continued bullish momentum.”

Bitcoin: Spot CVD. Source: Glassnode

As Cointelegraph reported, Bitcoin’s market value to realized value (MVRV) ratio suggests BTC’s market structure is strengthening, which may be an early sign of a new bull market.

The Weaponization of AI and the Rise of Deepfake Fraud

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The Weaponization of AI and the Rise of Deepfake Fraud

At the Money20/20 Asia event in Bangkok, the primary trend identified in the financial sector was the alarming “weaponization” of Artificial Intelligence for the purposes of fraud. Louis Michelet, Chief Operating Officer at OZ Forensics, noted that while this is a global issue, the APAC region is particularly exposed due to its exceptionally high level of digitization. Financial institutions are now facing massive scale and highly sophisticated attack vectors that are increasing at an exponential rate. Specifically, Michelet highlighted the increasing prevalence of deepfake attacks on biometrics within the region, posing a significant threat to traditional security protocols.

To counter these evolving threats, OZ Forensics provides a solution designed to secure the biometric flow for institutions within the financial and public sectors, as well as other critical business processes. The platform is built to distinguish between genuine users and sophisticated AI-generated fraud, ensuring that the identity verification process remains robust against modern attack methods. By focusing on the biometric entry point, the company helps organizations build a defensive layer that specifically targets the most advanced tools currently utilized by digital fraudsters.

For banks and fintechs adopting this solution over the next 12 months, the results are twofold: total security and improved user experience. The immediate impact is the prevention of fraudulent access, effectively reducing fraud on the biometric flow to zero. Crucially, this high level of security does not come at the expense of the user journey. Because the product is designed to be frictionless, it ensures that genuine users are not blocked by overly aggressive security measures. Consequently, clients can expect an increase in conversion rates, allowing them to grow their business and expand their operations in a more secure environment.

Key Highlights from Louis Michelet:

  • Weaponized AI: Michelet discusses how AI is being used to create massive, exponential increases in fraud sophistication across the APAC region.

  • The Deepfake Threat: A specific look at the rise of deepfake attacks on biometric systems and the risk they pose to digital-first financial markets.

  • Zero-Fraud Biometric Flow: How the OZ Forensics solution aims to eliminate biometric fraud entirely without impeding legitimate customer access.

  • Balancing Conversion and Security: Why a frictionless approach is essential for increasing business growth while maintaining a hardened security posture.

Hot inflation data pours cold water on Federal Reserve rate cut hopes

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Hot inflation data pours cold water on Federal Reserve rate cut hopes

U.S. inflation data came in hotter than expected on Wednesday, reinforcing expectations that the Federal Reserve will keep interest rates steady at 350-375bps not only at its June 17 meeting, but also likely through the end of the year.

The Consumer Price Index (CPI) year-over-year rose 3.8% in April, according to a report from the Bureau of Labor Statistics. Economists’ forecasts had been for a rise of 3.7% following March’s 3.3% increase.

On a month-over-month basis, CPI rose 0.6%, above expectations of 0.3% and up from March’s 0.2%.

Core CPI, which excludes food and energy costs, rose 0.4% in April versus forecasts of 0.2% and March’s 0.3%. Year-over-year core CPI was higher by 2.8% versus forecasts of 2.7% and March’s 2.6%.

Under pressure this morning, bitcoin BTC$80,860.65 traded at $80,700 following the report, down 1.2% over the past 24 hours.

U.S. stock index futures were down across the board, and the 10-year treasury yield came in higher at 4.44%. WTI crude oil is posing a threat to the markets, and is higher by 3% on the day at $101.

Ahead of the CPI data, markets were pricing in a 98% probability that the Federal Reserve would leave interest rates unchanged at its March meeting, according to the CME Fed Watch tool.

Kevin Warsh is set to be confirmed as the next Federal Reserve Chair this week, as he is expected to take over from Jerome Powell on May 15.

Decentralized Rails and the Revolution of Data Efficiency

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Decentralized Rails and the Revolution of Data Efficiency

At the Money20/20 Asia event in Bangkok, the primary shift identified in the financial landscape was the significant transition from traditional finance rails to decentralized finance (DeFi) rails. Mario Bernardi, Head of Ecosystem at Pyth, noted that institutions traditionally limited to legacy systems—such as those involved in borrowing, lending, and perpetual decentralized exchanges (DEXs)—are now expanding into the Web3 ecosystem. This shift represents a move toward integrating financial rails within the DeFi space, allowing traditional institutions to tap into the unique capabilities of blockchain-based infrastructure.

Pyth is facilitating this transition by addressing the long-standing challenges of high costs and fragmentation in financial data distribution. Historically, institutions have relied on major data distributors, which often require expensive subscriptions and multiple API integrations to cover different asset classes. By offering a decentralized alternative, Pyth allows companies to move away from these restrictive legacy models and toward a more agile, blockchain-native approach to data consumption that is better suited for the modern DeFi landscape.

For banks and fintechs adopting this solution over the next 12 months, the primary results will be substantial cost reduction and a massive increase in data efficiency. Traditional data subscriptions can cost thousands, or even hundreds of thousands of dollars, for a single API. In contrast, Pyth allows users to access all necessary assets through a single subscription and a single API integration. This streamlined approach eliminates the need to plug into multiple vendors, significantly reducing technical overhead while providing comprehensive market coverage, allowing institutions to operate more effectively within both traditional and decentralized financial markets.

Key Highlights from Mario Bernardi:

  • The Shift to DeFi Rails: Bernardi identifies the movement of traditional borrowing, lending, and DEX institutions toward decentralized Web3 rails as the year’s biggest shift.

  • Drastic Cost Reduction: How moving away from expensive legacy distributors like Bloomberg or Refinitiv can save institutions tens or hundreds of thousands of dollars.

  • Unified Data Efficiency: The advantage of using a single API through Pyth to cover all required asset classes instead of managing multiple vendor integrations.

  • Expanding Financial Infrastructure: A look at how institutions are leveraging decentralized rails to modernize their traditional financial operations.

Trump Crypto Investigation Is Out – What The Numbers Reveal Is Hard To Ignore

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Trump Crypto Investigation Is Out – What The Numbers Reveal Is Hard To Ignore

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A Bloomberg investigation published May 12 has revealed that members of the Trump family made approximately $1.55 billion from sales of the crypto World Liberty Financial (WLFI), lifting their total fortune by roughly $660 million after accounting for previously undisclosed transactions — while early retail investors remain locked out of 80% of their holdings as the token trades near all-time lows.

The investigation, based on analysis conducted by intelligence platform Tokenomist.ai at Bloomberg’s request, found that World Liberty Financial sold an additional 5.9 billion tokens to accredited private investors after its two public fundraising rounds closed — transactions worth hundreds of millions of dollars that had not been publicly disclosed or explained to the project’s broader investor base. The sales came on top of the more than $550 million already raised through public rounds, according to Bloomberg’s reporting.

Who Received The Crypto Proceeds

Under World Liberty Financial’s own governance disclosures, DT Marks DEFI LLC — a Trump-affiliated entity — is entitled to receive 75% of all WLFI token sale proceeds after agreed reserves and expenses, per the Bloomberg report.

Trump-affiliated parties also hold 22.5 billion WLFI tokens directly. World Liberty confirmed the private sales to Bloomberg, describing them as “white glove” transactions with private purchasers, but declined to identify the buyers or disclose where the proceeds were directed.

The project was co-founded by members of the Trump and Witkoff families, with Zach Witkoff serving as chief executive. Both Donald Trump and Steve Witkoff — who serves as the president’s special envoy to the Middle East — were listed as co-founder emeritus on the project’s website, though the page listing co-founders was subsequently removed. A spokesperson said the company regularly updates its site, per Bloomberg’s account.

Investors Left Holding The Loss

The contrast between insider outcomes and retail investor experience is stark. Early buyers who participated in the public fundraising rounds remain locked out of 80% of their token holdings, with no mechanism to exit into a market that has moved sharply against them. WLFI traded below six cents this week, representing an approximately 85% decline from its all-time high of $0.46, according to BanklessTimes.

Eswar Prasad, a professor at Cornell University, told Bloomberg directly: the Trump family is profiting from a financial venture with glaring conflicts of interest in a way that blocks other investors from sharing in the gains.

The project’s highest-profile external backer has also turned adversarial. Justin Sun, founder of the Tron blockchain and a major WLFI investor, filed suit against the venture in April in San Francisco federal court alleging extortion and an illegal scheme to seize his tokens — claims the project’s co-founders deny, per Bloomberg’s reporting.

World Liberty has also deposited 5 billion of its own WLFI tokens into Dolomite, a decentralized lending protocol whose co-founder holds a role at World Liberty, and borrowed roughly $75 million in stablecoins against them. Critics cited by Bloomberg have argued the structure may allow insiders to convert holdings to cash without waiting for unlock periods that could extend years into the future.

WLFI Crypto Trump WLFIUSDT.P_2026-05-12_13-24-55

WLFI's price trends to the downside on the daily chart. Source: WLFIUSD chart on Tradingview 

The investigation marks a critical and uncomfortable moment for the nascent sector’s relationship with political legitimacy. A crypto project backed by a sitting president, generating billions for founder-affiliated entities while retail investors absorb near-total losses, is precisely the kind of outcome that regulatory critics have long warned the industry invites without meaningful disclosure standards and investor protections.

Cover image from Grok, BTCUSD chart from Tradingview

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Why the crypto wallet is cashing out to fund a payments empire

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Why the crypto wallet is cashing out to fund a payments empire

Exodus Movement (EXOD) cut its bitcoin holdings by 1,076 BTC in the first quarter, while adding 5,068 SOL, as it moved more of its balance sheet into cash as the crypto wallet provider prepared to close its W3C payments deal.

The company held 628 BTC at the end of March, down from 1,704 BTC on Dec. 31, according to its latest quarterly filing. The value of those holdings fell to $42.8 million from $149.2 million.

Revenue fell 36.8% to $22.7 million in Q1 from $36 million a year earlier, according to Exodus’ earnings release. Net loss widened to $32.1 million from $12.9 million, driven in part by a $36.4 million loss on crypto.

Exodus’ solana holdings rose to 17,541 SOL from 12,473 SOL over the same period. Their fair value still fell to $1.5 million from $1.6 million over the crypto sell-off seen over the period.

In total, Exodus said it sold $73.2 million of cryptocurrency held during the quarter, and bought $962,000. The company said the increase in net sales for cash was tied to proceeds that will be used to fund the W3C acquisition.

“During Q1 2026, the Company has continued to sell digital assets to prepare for the next disbursement related to the W3C closing, and has set aside over $70 million in US dollar reserves for these obligations,” the filing reads.

Cash, cash equivalents and stablecoins rose to $74.4 million from $5.2 million at year-end. Total crypto and liquid assets held fell to $122.6 million from $161.6 million.

The filing does not break out sales by token. The balance sheet move was concentrated in bitcoin, with BTC down 63% and SOL up 41%. Bitcoin lost around 23% of its value in Q1, while SOL dropped more than 34% over the period.

Exodus closed its acquisition of Monavate and Baanx on May 1, adding card issuing and payments infrastructure to its self-custody business. The deal followed its $175 million agreement to buy W3C’s payments units and its push into stablecoin payments.

EXOD is down 3.1% in pre-market trading at $7.47.

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