In early January 2026, Bitfinex margin whales began trimming long Bitcoin positions while U.S. spot ETF flows showed sharp swings between inflows and outflows. Longs on Bitfinex recently peaked around 72,700 BTC before starting to roll over, as ETF data revealed a +$471 million net inflow on 2 January followed by about -$1.1 billion in outflows from 5 to 7 January. Analysts are weighing whether this combination signals a constructive reset for Bitcoin or the onset of a deeper correction over the next six weeks.

In its latest 2026 Crypto Crime Report, Chainalysis reports that illicit cryptocurrency transactions surged 162% in 2025 to at least $154 billion, driven by sanctioned states and organised criminal networks. The study highlights Iran's IRGC, Russia's ruble-linked A7A5 token, North Korean hackers and Chinese money laundering networks as key actors in this ecosystem. It also notes a sharp rise in physical attacks and kidnappings targeting crypto users, underscoring mounting security risks for the industry.

On January 8, 2026, Cyvers alerted to a suspicious on‑chain transfer tied to Truebit Protocol, citing an estimated exposure of about $26 million. The flagged movement involved 8,535 ETH and carried the on‑chain label "Truebit Protocol: Purchase." Truebit's team has not issued an official statement or confirmed any loss at the time of writing.

Singapore is undergoing a deliberate strategic reset, tightening crypto regulation while its luxury sector is forecast to expand 7‑9% in 2025 to S$13.9 billion. The city-state has doubled assets under management to USD 4 trillion since 2019, is reducing new foreign millionaire admissions and raising property taxes, while resident millionaires now drive most prime real estate transactions.

On January 5, 2026, a phishing campaign impersonating MetaMask support pushed a fake two‑factor authentication process to harvest recovery phrases. SlowMist's CSO described the operation as highly polished, with look‑alike domains and branded emails. Although 2025's phishing losses fell from nearly $494 million to about $84 million, attackers are reappearing with refined tactics.

On 2 January 2026, Ilya Lichtenstein, who admitted to stealing nearly 120,000 Bitcoin from Bitfinex in 2016, was released early from a U.S. federal prison under the First Step Act. He had received a five-year sentence in November 2024 but served roughly one year, reigniting arguments over how the American justice system handles large-scale crypto crimes. His release, along with clemency for figures like Ross Ulbricht and Changpeng Zhao, has sharpened divisions between critics and supporters of sentencing reform.

Turkmenistan will legalise cryptocurrency mining and trading platforms starting 1 January 2026 under a strict licensing regime overseen by the Central Bank. The reform, signed by President Serdar Berdimuhamedow, aims to monetise excess gas-fired power capacity and diversify an economy heavily reliant on natural gas exports. While mining and exchanges gain legal status, using cryptocurrencies to pay for goods and services remains prohibited, and questions persist over how extensive internet censorship will align with large-scale blockchain operations.

On 1 January 2026, China's digital yuan began accruing interest at sight deposit rates, marking a break with the non‑interest CBDC model. The People's Bank of China's plan applies to verified wallets for individuals and firms, with payouts on the 20th day of the last month of each quarter. Anonymous category 4 wallets are excluded, signaling a shift from M0‑like "digital cash" toward M1‑style demand deposits.

According to an investigation by TRM Labs, a coordinated group of Russian cybercriminals allegedly laundered more than $35 million in cryptocurrency stolen from LastPass users after the 2022 breach. The funds were moved through instant exchanges, Bitcoin mixers and Russian platforms including Audi6 and the OFAC-sanctioned Cryptex, with investigators using behavioral continuity analysis to trace the flow. The report indicates that wallet activity tied to the mixers showed operational links to Russia before and after the laundering process.