An Attacker Prints a Quarter of Harmony’s Supply, the SEC Moves Without Congress, and Brazil’s Biggest Bank Joins the Tokenization Race

An attacker minted roughly four billion Harmony tokens overnight, about a quarter of everything in existence, and the network’s own supply endpoint did not register the change.

Meanwhile, the SEC scheduled a vote for Friday on the crypto rulemaking Congress spent two years failing to deliver.

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Market-Moving News

Three things worth your attention. A layer-one network discovered overnight that someone had been quietly minting its token out of thin air, and the mechanism used to do so made the theft nearly invisible in real time.

The SEC set a vote for Friday on its own crypto framework, which is the regulator explicitly giving up on waiting for the Senate. And Latin America’s largest bank joined a tokenization pilot that has real regulatory backing behind it.

Bitcoin has been holding near $64,000 with the July inflation print landing this morning, and XRP is sitting almost exactly on a dollar, a level its buyers have defended all year.

Security

Harmony Mulls Rollback After 4B ONE Tokens Are Minted

Harmony has confirmed an exploit after an attacker apparently created roughly 4 billion ONE tokens, equivalent to more than a quarter of the token’s previous supply. ONE fell about 40% as the scale of the unauthorized mint became clear. 

Harmony told validators to install an emergency software update designed to stop additional tokens from being created. The project also paused its bridge, identified four attacker-linked addresses, and asked centralized exchanges to freeze associated funds.

A Supply Attack Hits the Blockchain

The reported 4 billion ONE figure comes from onchain analysis and has not yet been independently confirmed by Harmony. About 15 billion ONE existed before the incident, meaning the alleged mint would have expanded supply by roughly 26%.

Unlike a wallet theft, the attacker appears to have created new assets rather than taking coins already held by another user. Harmony has not yet disclosed the technical weakness that allowed the mint.

Rollback Puts Finality on the Table

Stopping further issuance solves only part of the problem. Harmony still has to address tokens already created and potentially moved to exchanges.

The team says it is evaluating rollback options, which could reverse part of the blockchain’s history to contain the damage. Such a move risks undoing legitimate transactions alongside attacker activity.

Take: Emergency patches can stop new damage, but the harder choice begins once corrupted tokens enter a live market. Whether Harmony protects you without rewriting legitimate activity will test how much blockchain finality survives a crisis.

Mining

Bitcoin Miners Unload $1.78B as Fee Revenue Dries Up

Public Bitcoin miners have reduced their combined holdings by roughly 28,000 BTC this year, adding about $1.78 billion of selling pressure to an already weak market.

Their collective reserves have fallen from around 127,000 BTC at the start of 2026 to roughly 99,000 BTC today. The selling comes as transaction fees contribute just 0.69% of miner revenue, near levels not seen in about a decade.

Treasuries Become the Pressure Valve

Low fee income leaves miners increasingly dependent on block rewards while operating costs continue regardless of Bitcoin’s price. Selling treasury BTC gives companies another source of cash for electricity, debt, equipment, and new infrastructure. 

The effect extends beyond individual balance sheets because thousands of coins are gradually returning to the market. Bitcoin’s network hash rate has also fallen from roughly 1.3 ZH/s last October to around 861 EH/s.

AI Pulls Power Away From Mining

Some operators are redirecting electricity and data-center capacity toward AI and high-performance computing, where long-term contracts can offer more predictable returns. Falling competition has helped miners that remain. Mining difficulty is down roughly 18% from its November peak, allowing surviving operators to earn more BTC for the same computing power.

Take: Miner selling becomes harder to ignore when fee income, hash rate, and treasury holdings are falling together. The number worth tracking next is how much BTC reaches the market before stronger economics give you a reason to expect miners to hold again.

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TradFi

Hong Kong’s Regulated HKDAP Stablecoin Goes Live

Anchorpoint Financial has begun the first live institutional rollout of HKDAP, moving its regulated Hong Kong dollar stablecoin from testing into commercial use.

Authorized distributors and professional investors can now mint, redeem, and transfer HKDAP through the Beta Access program. HashKey Exchange has already completed its first mint-and-redemption transaction, while OSL is supporting distribution and liquidity.

Anchorpoint was one of Hong Kong’s first two licensed stablecoin issuers after receiving approval from the Hong Kong Monetary Authority in April.

Bank-Backed Money Enters Circulation

HKDAP is issued by Anchorpoint, a joint venture backed by Standard Chartered Hong Kong, Animoca Brands, and HKT. The first phase targets cross-border payments, settlement, and tokenized real-world assets.

Businesses can convert between Hong Kong dollars and HKDAP through authorized distributors while using blockchain rails for 24/7 transfers. Standard Chartered does not directly issue the token, but its involvement gives the project traditional banking infrastructure alongside regulated crypto distribution.

Institutions Come Before Retail

Anchorpoint is deliberately starting with professional investors and corporate users rather than opening HKDAP immediately to the public. Retail access could follow as early as the end of 2026, but no firm launch date has been guaranteed.

The immediate test is whether institutions use HKDAP for recurring payments and tokenized-asset settlement rather than treating it as another stablecoin experiment.

Take: Hong Kong now has a regulated local-currency stablecoin moving through real institutional channels instead of remaining inside a sandbox. Watch the payment and settlement volumes that follow, because only then will you know whether HKDAP is becoming financial infrastructure or simply another licensed token.

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Future Forward

A regulatory vote Friday, then the calendar moves to Asia. Token flows tend to front-run conference announcements rather than follow them.

What Matters Next:

🏛️ SEC open meeting Friday on whether to publish Regulation Crypto for comment

📊 Whether Harmony rolls back its chain, and what exchanges do with the frozen funds

Coming Up:

📅 Coinfest Asia next week in Bali, with tokenization and stablecoins headlining

📅 Latam Digital Assets Conference next week in Buenos Aires, institutional focus

📅 Bitcoin Asia in Hong Kong later this month

Crypto Know-How: What a Blockchain Rollback Actually Costs

Harmony is weighing a rollback. Ravencoin considered one a day earlier. The word gets thrown around like a reset button, and understanding why it is not one explains a lot about how these networks actually work.

A blockchain is a chain of blocks where each one contains a cryptographic fingerprint of the block before it. Change anything in an old block and its fingerprint changes, which breaks the link to every block after it. That is the property that makes the history tamper-evident, and it is the entire point of the design.

A rollback means the network collectively agrees to abandon the chain from a certain block onward and rebuild from that point. The theft disappears because the transactions that created and moved those tokens are simply gone from the accepted history.

Here is the cost. Every other transaction in that same window disappears too. Someone who bought tokens, someone who repaid a loan, someone who received a payment for work, someone who moved funds to an exchange and withdrew cash. All of it reverses, and none of those people did anything wrong. If any of those transactions touched a bridge to another chain, the state on the two chains no longer matches, which creates its own mess.

There is also the part that has nothing to do with code. A network that reverses its own history once has demonstrated it can do so again. Every future user has to price in that possibility.

That is why chains agonize over this. It is not a technical question with a clean answer. It is a choice between eating the loss and undermining the one property that made the ledger worth trusting.

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• Strategy chief executive Phong Le said the company will resume buying Bitcoin before the end of the year, after a pause that stretched several weeks and drew attention to the balance sheet strain behind its accumulation model. 

• XRP open interest jumped by more than $170 million in a single day as traders positioned ahead of this morning’s inflation reading, with futures bets reaching their highest level since October and the token sitting almost exactly on the $1.00 level its buyers have defended all year.