Daily Cryptocurrency Digest – Key Market Updates and Trends

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The world of cryptocurrency continues to evolve at a rapid pace, shaped by regulatory developments, market movements, technological innovation, and growing institutional interest. This comprehensive digest captures the most impactful events and trends from late 2024, offering clarity on what’s driving the digital asset landscape forward.

Do Kwon’s Extradition Appeal Rejected by Montenegro

In a significant legal development, Montenegro’s Constitutional Court has unanimously rejected Do Kwon’s appeal against his extradition. As the co-founder of Terraform Labs, Kwon is wanted by both South Korean and U.S. authorities over the 2022 collapse of TerraUSD and Luna—two stablecoins that lost over $40 billion in market value within days.

Kwon was arrested in Montenegro in March 2023 for using forged travel documents. With the constitutional appeal dismissed, the final decision now rests with Montenegro’s Ministry of Justice. Given previous statements, the likelihood of extradition to the United States appears high.

This case underscores the global reach of crypto-related legal enforcement and signals increasing cooperation between international judicial systems in holding key figures accountable.

👉 Discover how regulatory actions shape crypto markets today.

Cyberattacks Surge: Over $2.3 Billion Stolen in 2024

Cybersecurity threats remain one of the biggest risks in the digital asset space. According to a report by chain security firm Cyvers, hackers stole more than **$2.3 billion** in cryptocurrency through **165 separate incidents** in 2024—an alarming **40% increase** compared to $1.69 billion lost in 2023.

The rise reflects increasingly sophisticated attack vectors, including phishing, smart contract exploits, and insider threats. As decentralized finance (DeFi) and cross-chain bridges grow in popularity, they also become prime targets for malicious actors.

Notable Breach: DMM Exchange Attack Linked to North Korean Hackers

U.S. federal authorities have disclosed details of a major cyberattack on Japan’s DMM Bitcoin exchange in May 2024, which resulted in the theft of over $300 million in BTC.

The FBI identified a North Korean hacker who used LinkedIn to pose as a recruiter and targeted an employee at Ginco, a wallet provider used by DMM. The attacker sent a malicious link disguised as a GitHub coding test. Once the employee executed the code, the hacker gained access to internal systems.

By impersonating the employee, the group—believed to be part of the TraderTraitor collective—manipulated legitimate transaction requests and siphoned funds into wallets under their control.

This incident highlights the critical importance of cybersecurity awareness and multi-layered defense mechanisms in protecting digital assets.

U.S. Spot Bitcoin ETFs See Largest Outflow Since Election

After a surge in inflows following Donald Trump’s election win in November, U.S. spot Bitcoin ETFs are now experiencing a reversal. Data from SoSoValue shows $1.18 billion in outflows over the past three trading days—the longest streak of outflows since the election.

From December 18 to December 23, the total value held by these ETFs dropped by $10.7 billion, driven by both fund redemptions and declining BTC prices. While short-term volatility may reflect investor sentiment shifts, long-term adoption trends remain strong.

Market analysts suggest this pullback could be temporary, especially if macroeconomic conditions stabilize and institutional demand resumes.

Coinbase CEO’s Holdings Surge Amid Market Optimism

Coinbase CEO Brian Armstrong has seen a dramatic increase in the value of his stock holdings since November 5. Despite selling approximately $437 million** worth of COIN shares post-election, his remaining stake—over **24 million shares**, representing more than 10% of the company—is now valued at around **$6.4 billion, up nearly $2 billion from pre-election levels.

This surge reflects renewed investor confidence in U.S. crypto policy direction under a potentially pro-digital asset administration. Armstrong’s strategic sales appear timed to capitalize on elevated valuations while maintaining substantial influence over the exchange.

MicroStrategy Plans Massive Stock Split

MicroStrategy, one of the largest corporate holders of Bitcoin, has proposed increasing its authorized common stock from 330 million to 10.3 billion shares. The move, announced by CEO Michael Saylor on X (formerly Twitter), is subject to shareholder approval.

While not directly tied to Bitcoin holdings, such a split could enhance financial flexibility, support future fundraising, or facilitate acquisitions. It also aligns with MicroStrategy’s long-standing strategy of leveraging equity to fund BTC purchases.

Bitcoin Supply Nears Cap: Over 19.8 Million BTC in Circulation

Bitcoin’s scarcity narrative strengthens as its circulating supply surpasses 19.8 million BTC, leaving fewer than 1.2 million coins left to mine. Current data from CloverPool shows:

With halving events reducing new supply every four years, this dwindling availability reinforces Bitcoin’s deflationary nature—a key factor behind its appeal as "digital gold."

Russia Imposes Six-Year Mining Ban in 10 Regions

Starting January 1, 2025, ten Russian regions—including Dagestan, Chechnya, and several contested territories—will face a six-year ban on cryptocurrency mining. The restriction aims to prevent power shortages during peak demand periods.

The Russian government also plans seasonal limits on mining operations in energy-intensive areas. Some miners are shifting toward renewable energy sources or relocating entirely.

This policy reflects growing global scrutiny of crypto mining's environmental and infrastructural impact—especially as AI data centers compete for similar power resources.

AI and Crypto Mining Drive Record Energy Demand in North America

According to the North American Electric Reliability Corporation (NERC), both cryptocurrency mining and AI data centers are fueling unprecedented electricity demand across North America.

In Texas alone, summer peak load growth is projected to rise by 4.6% annually through 2029—four times faster than earlier estimates. While crypto mining consumption fluctuates with market prices, AI infrastructure requires constant cooling and computing power.

To manage grid stability, Texas has introduced energy response programs and passed HB 3390 to improve distributed energy management. Some mining firms, like MARA, are transitioning to solar and wind power to align with sustainability goals.

Coinbase International Hits Record Weekly Volume

Coinbase International reported a record-breaking week with over $119 billion in trading volume**, marking a **124% increase** from the prior week. Daily averages jumped by **164%**, reaching nearly **$10 billion per day in December—up from just $2.5 billion in November.

Top trading pairs include perpetual futures for:

This surge indicates rising global appetite for crypto derivatives and positions Coinbase as a major player in international markets.

👉 See how top exchanges are shaping global crypto liquidity.

Argentina Orders Freeze on 3.5 Million USDT Linked to Pyramid Scheme

Argentine authorities have directed Tether to freeze 3.5 million USDT linked to Rainbowex, a platform accused of operating a large-scale Ponzi scheme affecting thousands of investors.

Law enforcement executed 22 search warrants and detained 22 individuals involved in the operation. Investigations revealed that Rainbowex used fake promises of high crypto returns while blocking withdrawals—a hallmark of fraudulent schemes.

Shockingly, actors were hired to impersonate company executives at promotional events, further deceiving participants.

This case serves as a stark reminder: always verify project legitimacy before investing.

Trump’s Potential Return Sparks Regulatory Shift Predictions

A recent report by Citic Securities suggests that if Donald Trump assumes office in 2025, it could usher in a new era for U.S. crypto regulation. His administration may prioritize clarifying regulatory jurisdiction—potentially reviving stalled legislation like the Financial Innovation and Technology for the 21st Century Act.

Three key sectors could benefit:

  1. Crypto exchanges – Increased trading activity due to regulatory clarity
  2. Mining hardware providers – Rising demand amid favorable policies
  3. Utility companies – Greater energy demand from mining operations

While uncertainty remains, market sentiment is clearly shifting toward optimism.

Frequently Asked Questions (FAQ)

Q: Why are Bitcoin ETF outflows significant?

A: Sustained outflows can signal reduced institutional confidence or profit-taking after price rallies. However, they don’t necessarily indicate long-term bearishness—market cycles often include such corrections.

Q: How does a stock split affect MicroStrategy’s Bitcoin strategy?

A: The proposed split doesn’t change MicroStrategy’s BTC holdings but may improve capital flexibility for future acquisitions or financing without diluting existing shareholders excessively.

Q: Is crypto mining really threatening power grids?

A: In regions with limited infrastructure or high demand (e.g., Texas), unregulated mining can strain grids. But many miners are adopting renewables or participating in demand-response programs to mitigate risks.

Q: What makes TraderTraitor attacks dangerous?

A: These attacks exploit human trust via social engineering—like fake job offers—making them hard to detect with traditional cybersecurity tools. Education and strict access controls are essential defenses.

Q: Can governments effectively ban crypto mining?

A: While bans can disrupt local operations, miners often relocate to more favorable jurisdictions. Complete suppression is difficult due to decentralization and mobile infrastructure (e.g., containerized rigs).

Q: How can investors avoid scams like Rainbowex?

A: Look for transparent teams, audited smart contracts, withdrawal functionality during testing phases, and independent reviews. Avoid platforms promising guaranteed high returns with no clear revenue model.

👉 Stay ahead of market shifts with real-time data and secure trading tools.

The cryptocurrency ecosystem remains dynamic and complex—but understanding these core developments empowers smarter decisions. Whether you're an investor, miner, or observer, staying informed is your strongest asset.