Bitcoin briefly fell below $60,000 on Friday, "extending its weekly loss to nearly 20% and threatening to fall below $59,000," reports CoinDesk. Crypto was also hit by a 40%-plus plunge in Zcash after Shielded Labs disclosed a years-old bug that could have allowed undetected counterfeit ZEC creation. From the report: Now, with stocks in plunge mode -- the Nasdaq down nearly 4% on Friday -- bitcoin finds itself perfectly correlated. "Short term, Bitcoin feels like swallowing broken glass," wrote Jeff Swanson Friday. "The chart goes up. It goes down. It makes grown men cry into their Robinhood accounts and CNBC anchors smugly declare the funeral, for the eleventh time." "Here's what uncomfortable people don't understand: the discomfort is the yield. Every paper-handed panic seller is handing their future to someone with a longer time horizon and a colder storage device." [...] Earlier, Shielded Labs, a nonprofit developer on the privacy token system, disclosed a critical vulnerability in Zcash's (ZEC) Orchard privacy pool that could have threatened the integrity of the token's supply. The vulnerability, if exploited, could have allowed an attacker to create an unlimited number of counterfeit ZEC tokens, completely undetected. "Think of it as someone secretly gaining access to the Federal Reserve's dollar printing press, except in this case, even the Fed wouldn't be able to tell these extra dollars were printed," wrote Omkar Godbole. Importantly, the vulnerability was discovered with help from Anthropic's recently released Opus 4.8 AI model, raising difficult questions for the entire crypto industry. More to come on that. ZEC is now down 42% over the past 24 hours. On Wednesday, the Zcash Foundation said: "The vulnerability was caught before any known exploitation occurred. There is no evidence of unauthorized value creation. Zcash's turnstile mechanism (which tracks the total ZEC balance across all value pools) confirmed that the total supply remained intact throughout. User privacy was not affected. Sapling and transparent transactions continued operating normally throughout the incident."

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Morgan Stanley is adding crypto trading to E*Trade, with a pilot now underway and a broader rollout planned for the platform's 8.6 million customers later this year. The bank is reportedly undercutting rivals with a 50-basis-point trading fee as it bets traditional finance and DeFi will converge. "By contrast, Robinhood Markets' (HOOD) fees start at 95 bps, Coinbase Global's (COIN) begins at 60 bps, and Charles Schwab (SCHW) will charge 75 bps," notes Seeking Alpha. Morgan Stanley's head of wealth management, Jed Finn, told Bloomberg: "This is much bigger than trading crypto at a cheaper rate. In a way, the strategy is disintermediating the disintermediators."

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Ancient Slashdot reader Alain Williams shares a report from the BBC: The Trump family's World Liberty crypto venture is being sued by one of its billionaire backers over allegations of extortion. Justin Sun has accused World Liberty of an "illegal scheme" to seize his WLFI tokens, a cryptocurrency issued by the company. Sun alleges the firm, co-founded by U.S. President Donald Trump and his son Eric Trump, has "frozen" all of his tokens and stripped him of his right to vote on governance issues. [...] Sun alleged that those running World Liberty, including another co-founder, Chase Herro, are using it as a "golden opportunity to leverage the Trump brand to profit through fraud." In his complaint, filed on Tuesday in a San Francisco federal court, Sun argues that initial promises to give token-holders the option to trade the currency in future "were false and misleading." While the tokens at large became tradeable, Sun said World Liberty has blocked him from being able to sell a single one, and is now threatening to "burn" his - deleting them entirely. WLFI said in a post on X: "Does anyone still believe @justinsuntron? Justin's favorite move is playing the victim while making baseless allegations to cover up his own misconduct. Same playbook, different target. WLFI isn't the first. We have the contracts. We have the evidence. We have the truth. See you in court pal."

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A New York Times investigation by John Carreyrou claims a British cryptographer named Adam Back is the strongest circumstantial candidate yet for being Satoshi Nakamoto. The report citing overlaps in writing style, ideology, technical background, and old posts that outlined key parts of Bitcoin years before its launch. Carreyrou is a renowned investigative journalist and author, best known for exposing the massive fraud at Theranos while at the Wall Street Journal. Here's an excerpt from the report: ... As anyone steeped in Bitcoin lore will tell you, Satoshi was a master at the art of maintaining anonymity on the internet, leaving few, if any, digital footprints behind. But Satoshi did leave behind a corpus of texts, including a nine-page white paper (PDF) outlining his invention and his many posts on the Bitcointalk forum, an online message board where users gathered to discuss the digital currency's software, economics and philosophy. And that corpus, it turned out, had expanded significantly during the impostor's civil trial when Martti Malmi, a Finnish programmer who collaborated with Satoshi in Bitcoin's early days, released a trove of hundreds of emails he had exchanged with him. Emails Satoshi sent to other early Bitcoin adopters had surfaced before, but none came close in volume to the Malmi dump. If Satoshi was ever going to be found, I was convinced the key lay somewhere in these texts. Then again, others must have gone down this road before me. Journalists, academics and internet sleuths had been trying to identify Satoshi for 16 years. During that span, more than 100 names had been put forward, including those of an Irish cryptography student, an unemployed Japanese American engineer, a South African criminal mastermind and the mathematician portrayed in the movie "A Beautiful Mind." The most alluring theories had focused on coincidences that aligned with what little was known about Satoshi: a particular code-writing style, a mysterious work history, an expertise in Bitcoin's key technical concepts, an anti-government worldview. But they had run aground under the weight of an alibi or some other piece of inconsistent or contrary evidence. Each failure had been met with glee by many members of the Bitcoin community. As they liked to point out, only Satoshi could definitively prove his identity by moving some of his coins. Any evidence short of that would be circumstantial. It seemed foolish to think that I could somehow crack a case that had confounded so many others. But I craved the thrill of a big, challenging story. So I decided to try once more to unmask Bitcoin's mysterious creator. Back, for his part, denies being Satoshi, writing in a post on X: "i'm not satoshi, but I was early in laser focus on the positive societal implications of cryptography, online privacy and electronic cash, hence my ~1992 onwards active interest in applied research on ecash, privacy tech on cypherpunks list which led to hashcash and other ideas."

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An anonymous reader quotes a report from the Financial Times: Iran will demand that shipping companies pay tolls in cryptocurrency for laden oil tankers passing through the Strait of Hormuz (source paywalled; alternative source), as it seeks to retain control over passage through the key waterway during the two-week ceasefire. Hamid Hosseini, a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union, told the FT on Wednesday that Iran wanted to collect tolling fees from any tanker passing and to assess each ship. "Iran needs to monitor what goes in and out of the strait to ensure these two weeks aren't used for transferring weapons," said Hosseini, whose industry association works closely with the state. "Everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush," he added. [...] Hosseini said that each tanker must email authorities about its cargo, after which Iran will inform them of the toll to be paid in digital currencies. He said that the tariff is $1 per barrel of oil, adding that empty tankers can pass freely. "Once the email arrives and Iran completes its assessment, vessels are given a few seconds to pay in Bitcoin, ensuring they can't be traced or confiscated due to sanctions," Hosseini added.

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