Bithumb's $132 Million Bitcoin Distribution Error
South Korean cryptocurrency exchange Bithumb experienced an operational error, accidentally distributing 2,000 $BTC, valued at approximately $132 million, to its users. The incident, which occurred on a Friday, stemmed from a system glitch where the exchange's internal ledger mistakenly processed the distribution as Bitcoin instead of 2,000 Korean Won (KRW), a substantial value difference as 2,000 KRW is only about $1.3.
The core issue was an internal accounting discrepancy: the 2,000 distributed $BTC reportedly never existed on the blockchain.
The incident drew criticism, with South Korean lawmakers publicly characterizing the operational lapse as a "structural issue" within Bithumb's system, signaling increased regulatory scrutiny over the exchange's internal controls.
US Strategic Reserve Suffers $20M Bitcoin Contractor Theft
The United States government's Strategic Reserve suffered a theft resulting in the loss of $20 million in $BTC, attributed to an outsourced contractor. This marks a security breach within a government-managed entity.
Following the disclosure, crypto expert Pierre Rochard condemned the incident as a "national humiliation," comparing the loss to a hypothetical scenario of losing nuclear codes. No immediate details on timelines or the contractor's identity were released.
Heart's ProveX Raises $410M; $400M Tied to Tornado Cash
A fundraising round for ProveX, a new protocol founded by Richard Heart (founder of the $HEX token and PulseChain network), faced scrutiny this week. ProveX concluded a 'Sacrifice' round, securing over $410 million.
Arkham analyst Emmett Gallic reported that approximately $400 million of the funds contributed allegedly originated from Richard Heart's personal assets, previously processed through the sanctioned mixer Tornado Cash ($TORN).
The event generated bearish sentiment within the crypto community, impacting perceptions around $HEX and Heart's broader ecosystem.
Ethereum Developments: Buterin's Sale and Scaling Pivot
Buterin's $6.7M ETH Sale Triggers Price Drop
Ethereum co-founder Vitalik Buterin was central to two developments impacting the $ETH ecosystem this week. Buterin sold $6.7 million worth of Ethereum ($ETH), immediately preceding a notable price drop that pushed $ETH below the $2,000 threshold. On-chain data showed no substantial whale buying activity, contributing to a downward movement that saw $ETH reach as low as $1,736.
The market reacted with rapid price decline, triggering nearly $87 million in $ETH liquidations across exchanges. Binance recorded unusual volatility and increased trading volume on the 1-minute $ETH/USDT chart.
Following the initial decline, $ETH price recovered, reclaiming the $2,100 level. While $ETH registered a 5.7% increase in 24 hours, it remained down 7.7% over the past seven days.
Vitalik Signals Ethereum Scaling Roadmap Pivot
In a separate development, Buterin signaled a pivot in Ethereum's future development roadmap, departing from the previously emphasized 'rollup-centric' scaling strategy. This re-evaluation implies the core network may no longer require 'branded shards' for scalability, potentially altering the long-term architectural significance and development priorities of Layer 2 (L2) solutions.
This re-evaluation coincides with recent ecosystem project developments, such as ENS Labs scrapping its Namechain L2 project to shift ENSv2 fully back to the $ETH mainnet.