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Brazil Bans Algorithmic Stablecoins, Fuels Bitcoin Hyper’s $31M Presale

Brazil is advancing landmark legislation to ban algorithmic stablecoins, mandating strict 1:1 reserve backing in a move that protects consumers and strategically clears the path for its central bank digital currency, Drex. This regulatory squeeze is accelerating a capital rotation from experimental DeFi toward fundamental infrastructure, with Bitcoin Hyper ($HYPER) raising over $31 million by bringing Solana’s speed to Bitcoin via a novel Layer 2 solution. Whale activity confirms growing institutional interest in scalable utility projects as the market seeks tangible technological moats over financial engineering.

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Stablecoin Supply Drops $7B as Crypto Liquidity Thins

The Ethereum network has witnessed a historic $7 billion weekly contraction in stablecoin supply, plunging from $162 billion to $155 billion. This marks the first sharp weekly decline in ERC-20 stablecoins during the current market cycle, signaling a significant thinning of liquidity across cryptocurrency markets as capital shifts away and prices correct. Analysts warn this pattern mirrors behavior seen before previous downturns, raising a bearish flag for digital asset markets.

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Binance Adds 5 New Trading Pairs, Boosts ADA & ASTER

In a strategic move aligning with current market trends, Binance, the world’s largest cryptocurrency exchange, has announced the addition of five new spot trading pairs, set to launch on December 24. The listings for ADA/USD1, ASTER/USD1, LUNA/USDC, LUNC/USDC, and ZEC/USD1 have already catalyzed positive price action for the involved assets, underscoring the powerful ‘Binance effect.’ However, the new services will not be available to users in several restricted jurisdictions, including the United States and Canada.

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Fed Rate Cut Boosts Crypto: Bitcoin Holds $90K, ZEC Surges 18%

The U.S. Federal Reserve’s third consecutive interest rate cut in 2025 sent ripples through financial markets, with cryptocurrencies experiencing heightened volatility. Bitcoin demonstrated resilience by stabilizing above the $90,000 threshold after significant swings, while Zcash (ZEC) stole the spotlight with an explosive 18% weekly rally. This movement unfolded against a backdrop of major industry developments, from landmark legal rulings to significant platform integrations, painting a complex picture for the digital asset sector.

about Fed Rate Cut Boosts Crypto: Bitcoin Holds $90K, ZEC Surges 18%

DOJ Seeks 12-Year Prison Sentence for Terra Founder Do Kwon

Federal prosecutors are urging a judge to impose the maximum 12-year prison sentence on Terra founder Do Kwon for his role in the $40 billion collapse of the UST and LUNA cryptocurrencies. The Department of Justice argues that a lighter sentence would create unfair disparities compared to the 25-year term given to FTX’s Sam Bankman-Fried. Kwon’s sentencing is scheduled for December 11 in Manhattan.

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Interpol Declares Crypto Fraud Global Criminal Threat

The International Criminal Police Organization has officially classified crypto-enabled fraud as a global criminal threat, revealing how transnational criminal networks are exploiting human trafficking victims to operate sophisticated scam centers across more than 60 countries. This coordinated international response, adopted through a new General Assembly resolution, aims to dismantle criminal operations that lure victims with fake job offers before forcing them into compounds where they conduct cryptocurrency fraud, voice phishing, and investment schemes under brutal conditions.

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S&P Downgrades USDT Rating, Warns of Peg Risk

S&P Global Ratings has delivered a stark warning about Tether’s USDT stablecoin, downgrading its ability to maintain its crucial 1:1 dollar peg to a “weak” rating. The credit agency cited exposure to volatile assets like Bitcoin and insufficient transparency around reserve management as primary concerns, raising fears that the world’s most-traded cryptocurrency could become undercollateralized. Tether has vehemently rejected the assessment, pointing to its decade-long track record of weathering financial storms and maintaining redemptions.

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Ex-CFO Convicted for $35M Crypto Fraud After Terra Collapse

A former software company CFO faces up to 20 years in prison after being convicted of wire fraud for secretly transferring $35 million in corporate funds to his personal crypto platform. Nevin Shetty invested the stolen money in risky DeFi protocols just weeks before learning he would be fired, only to see the funds wiped out during the Terra collapse. The Seattle jury delivered its verdict after 10 hours of deliberation.

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Terra Relaunches as LUNA 2.0 with Major Airdrop Distribution

Terra has officially relaunched with a new blockchain and LUNA 2.0 token following its spectacular collapse, marking one of the most ambitious recovery attempts in cryptocurrency history. The revival includes a massive airdrop distribution to previous token holders and major exchange listings, though the project faces significant skepticism from investors burned by the original ecosystem’s failure.

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Ethereum’s $11B Staking Withdrawal Delays Spark Systemic Risk Fears

Ethereum’s staking network is facing unprecedented strain as validator withdrawal queues hit record levels, creating 42-day delays for $10.5 billion in locked ETH. The growing backlog has sparked concerns about systemic vulnerabilities across DeFi ecosystems where liquid staking tokens serve as critical collateral. Analysts warn the situation could trigger a ‘vicious unwinding loop’ during market stress, testing the delicate balance between network security and liquidity.

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Credit Saison Launches $50M Blockchain Fund for Asia-US Bridge

Japan’s financial giant Credit Saison is making a bold move into blockchain infrastructure with a new $50 million venture fund designed to connect US startups with Asia’s rapidly expanding digital asset markets. Despite a global cooling in crypto venture funding, the company’s Onigiri Capital initiative represents a significant bet on the institutional adoption of real-world asset tokenization, stablecoins, and DeFi products across key Asian economies.

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