Regulatory Scrutiny Intensifies Over Corporate Crypto Investments
U.S. regulators, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), have initiated investigations into unusual stock price movements preceding corporate announcements of cryptocurrency-related treasury strategies. This probe aims to uncover potential insider trading and violations concerning the selective disclosure of material nonpublic information. Over 200 companies that declared plans to invest in cryptocurrencies in 2025 have been contacted as part of this extensive inquiry. The SEC has also issued warnings to firms about possible breaches of disclosure rules. This heightened regulatory attention reflects the growing trend of publicly traded companies integrating cryptocurrencies into their financial strategies, following the precedent set by early adopters like MicroStrategy, which began purchasing Bitcoin in 2020.
Morgan Stanley Ventures into Cryptocurrency Trading
In a significant move towards mainstream adoption of digital assets, Morgan Stanley has announced plans to offer cryptocurrency trading on its E*Trade platform. This service, set to launch in the first half of 2026, will be facilitated through a partnership with Zerohash, a digital asset infrastructure provider. At inception, E*Trade clients will have access to trading in Bitcoin, Ethereum, and Solana. This development underscores the evolution of cryptocurrencies from niche investments to a market valued at approximately $3.9 trillion. Morgan Stanley’s expansion into crypto trading aligns with favorable regulatory conditions and mirrors similar initiatives by competitors such as Robinhood and Charles Schwab. Additionally, Zerohash has achieved unicorn status after securing $104 million in a funding round led by Interactive Brokers, with participation from Morgan Stanley and SoFi.
Trump Media and Crypto.com Collaborate on Crypto Treasury Firm
Trump Media & Technology Group and Crypto.com have announced the formation of a new company, Trump Media Group CRO Strategy, aimed at investing in the cryptocurrency Cronos. The venture will go public through a Special Purpose Acquisition Company (SPAC) merger with Yorkville Acquisition Corp and be listed on the Nasdaq under the symbol “MCGA.” This move strengthens President Donald Trump’s connection to the crypto sector, bolstered by favorable industry regulations under his administration. Following the announcement, the Cronos token surged nearly 30%, Trump Media’s stock rose by 5.2%, while Yorkville’s shares experienced a slight decline. The new firm will be funded with $1 billion in Cronos tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line from a Yorkville affiliate. This partnership advances previous collaborations, including exchange-traded funds under the Truth.Fi brand, and reflects a broader trend of crypto-focused companies leveraging SPACs to capitalize on the soaring valuations of digital assets.
Montenegro Extradites Do Kwon to the United States
Montenegro has extradited Do Kwon, the South Korean founder of Terraform Labs, to the United States. This decision follows Montenegro’s justice ministry denying South Korea’s extradition request. Do Kwon was handed over to FBI agents at Podgorica Airport, concluding a protracted legal battle with both South Korea and the U.S. seeking his extradition. Kwon had been arrested in Montenegro in March 2023 for attempting to travel to Dubai using fake passports. He faces fraud charges in the U.S. related to the $40 billion collapse of Terraform Labs’ cryptocurrency, which severely impacted retail investors globally. The crash involved TerraUSD, a stablecoin that drastically devalued from its $1 peg, and its associated currency, Luna.
Arizona Establishes Cryptocurrency Reserve Fund
On May 7, 2025, Arizona Governor Katie Hobbs signed legislation establishing the Bitcoin and Digital Assets Reserve Fund, making Arizona the second U.S. state to create a cryptocurrency reserve fund, following New Hampshire. The new law also updates Arizona’s unclaimed property laws to address virtual currency, aiming to prevent residents from losing out on increased crypto value when abandoned assets are sold. Representative Jeff Weninger, the bill’s sponsor, highlighted the dramatic rise in Bitcoin’s value—from $16,000 two years ago to more than $100,000—underscoring the importance of maximizing returns for asset holders. While Governor Hobbs approved this law, she previously vetoed more aggressive crypto legislation, including proposals for a strategic Bitcoin reserve and allowing the state to invest up to 10% of its funds in cryptocurrencies. Weninger is now advocating additional legislation to deposit a portion of cryptocurrency obtained through criminal asset forfeiture into the reserve fund. This move reflects a broader effort to integrate digital assets into state financial practices and modernize laws in line with the evolving financial landscape.
Bybit Suffers $1.5 Billion Hack Linked to North Korean Hackers
Bybit, a major cryptocurrency exchange, announced that it fell victim to a sophisticated hack resulting in the theft of approximately $1.5 billion worth of Ethereum. The hack, which interfered with a routine transfer between digital wallets, marks one of the largest online thefts to date. Despite the incident, Bybit assured customers that their holdings are safe but warned of potential delays in processing withdrawals due to increased requests. The FBI has accused North Korean hackers, known as the Lazarus Group, of orchestrating the theft. The stolen assets have been partially converted to Bitcoin and other virtual currencies and are being laundered across multiple blockchains. North Korea, which has not acknowledged the theft, is said to use such funds to support its economy and nuclear program under U.N. sanctions. Bybit’s CEO has offered a bounty to track and freeze the stolen assets. This incident has led to a drop in crypto prices and fears of increased regulatory scrutiny.
Kraken Expands Sports Sponsorships
Kraken, a prominent cryptocurrency exchange, has expanded its presence in the sports world through strategic sponsorships. Beginning in March 2023, Kraken became the Official Crypto and Web3 Partner of the Williams Racing Formula 1 team. In October 2024, this partnership was extended through the 2025 Formula 1 season, featuring enhanced branding on the FW47 car’s halo, as well as on drivers’ race suits, helmets, and team apparel. Kraken has also strengthened fan engagement initiatives, including the Grid Pass digital collectible program and the Rear Wing Takeover contests, which allow fans to design the car’s rear wing. Additionally, in July 2024, Kraken announced sleeve sponsorships for English Premier League football club Tottenham Hotspur and Spanish La Liga club Atlético Madrid. In August, Kraken became the sleeve sponsor for German Bundesliga club RB Leipzig. These partnerships reflect Kraken’s commitment to increasing cryptocurrency adoption and visibility through mainstream sports collaborations.
Argentina’s $LIBRA Cryptocurrency Scandal Unfolds
The $LIBRA cryptocurrency scandal emerged on February 14, 2025, when Argentine President Javier Milei promoted a cryptocurrency project called $LIBRA. The price of the meme coin spiked following Milei’s promotion but then suffered a severe price drop, leading to allegations of a rug pull scam and $251 million in losses for investors. Dubbed “Cryptogate,” this scandal has been described as the “first big scandal” of Milei’s presidency. The incident has raised questions about the intersection of political influence and cryptocurrency markets, highlighting the potential risks for investors when political figures endorse digital assets without adequate oversight.
Metaplanet’s Significant Bitcoin Acquisition
Metaplanet, a Japanese bitcoin treasury firm, has made its largest bitcoin acquisition to date, spending approximately $632.5 million to purchase 5,419 BTC. The company confirmed the purchase, stating the average price was close to $116,724 per coin. With this move, Metaplanet now holds a total of 25,555 BTC, worth roughly $2.71 billion, at an average cost of $106,065 per bitcoin. This acquisition positions Metaplanet as the fifth-largest public corporate holder of bitcoin, surpassing Bullish and placing it behind Strategy, Mara, XXI, and Bitcoin Standard Treasury Company. Strategy, led by Michael Saylor, remains the largest holder with 638,985 BTC. Metaplanet’s purchase follows the company’s announcement to raise $1.4 billion by issuing 385 million new shares, with the funds aimed at building its bitcoin treasury strategy. Additionally, the board approved a U.S. subsidiary, Metaplanet Income Corp., which will focus on bitcoin income generation through derivatives and related businesses.
Current Cryptocurrency Market Overview
As of September 26, 2025, the cryptocurrency market has experienced notable fluctuations. Bitcoin (BTC) is currently priced at $109,275, reflecting a decrease of $2,513 (-2.25%) from the previous close. The intraday high reached $112,167, with a low of $108,783. Ethereum (ETH) stands at $3,934.69, down $74.87 (-1.87%) from the previous close, with an intraday high of $4,051.34 and a low of $3,830.66. Binance Coin (BNB) is trading at $949.97, a decline of $42.54 (-4.29%) from the previous close, with an intraday high of $999.95 and a low of $937.17. These movements underscore the market’s volatility, influenced by recent regulatory developments, security incidents, and corporate activities within the cryptocurrency space.
