GM. Adam Back and Nic Carter clashed over Bitcoin’s quantum security, reigniting debate on whether quantum computing poses an imminent threat or remains decades away.

Meanwhile, Terraform’s administrator sued Jump Trading for $4 billion, while Bybit relaunched in the UK, and a Brooklyn man was charged in a $16 million Coinbase phishing scheme.

Starting off a fresh week of crypto news. 👇

Adam Back Slams Bitcoin Quantum Computing Fears

Blockstream CEO Adam Back publicly attacked Castle Island Ventures partner Nic Carter on X, accusing him of spreading uninformed noise about quantum computing risks to Bitcoin, igniting a visible dispute among influential Bitcoin figures over emerging cryptographic threats.

The clash centers on Carter’s promotion of Project Eleven, a startup he invested in to defend blockchains from quantum attacks, which Back claims amplifies market fear, while insisting Bitcoin developers are already researching quantum resistance quietly and methodically.

Carter rejected that view, saying many developers remain in total denial, explaining he was “quantum pilled” by Project Eleven CEO Alex Pruden, and warning Bitcoin represents a bug bounty as governments and investors accelerate post-quantum preparations.

The debate unfolds as timelines diverge, with Capriole’s Charles Edwards warning quantum threats could materialize within two to nine years without upgrades, while Back and Kevin O’Leary argue practical quantum attacks remain decades away and economically irrational.

Terraform Admin Sues Jump Trading Over Terra Collapse

Terraform Labs’ court appointed administrator sued Jump Trading in New York, alleging manipulation worsened the 2022 Terra collapse. Todd Snyder claims Jump Trading secretly supported TerraUSD’s peg, then exited positions profitably, accelerating losses across global crypto markets. The lawsuit seeks $4 billion, naming Jump executives and accusing coordinated trading that allegedly distorted prices and investor expectations.

The Terra collapse erased $40 billion after TerraUSD depegged, triggering cascading failures across decentralized finance and centralized exchanges. Terraform later filed bankruptcy in Singapore, while founder Do Kwon pleaded guilty to criminal charges and received a 15-year prison sentence. Snyder argues the lawsuit aims to recover value for creditors by exposing alleged misconduct tied directly to Terra’s destabilization.

Brooklyn Man Charged in Coinbase Phishing Scheme

Brooklyn prosecutors charged Ronald Spektor with stealing $16 million through phishing scams targeting approximately one hundred Coinbase users. Authorities allege Spektor impersonated Coinbase staff, convincing victims their accounts were compromised and directing funds to controlled wallets. Investigators say he later attempted laundering using mixers, gambling platforms, and crypto swaps to obscure transaction trails.

The yearlong investigation seized cash and digital assets, while blockchain data linked Spektor to Telegram channels discussing stolen funds. Coinbase assisted investigators by sharing onchain analysis, identifying victims, and helping trace suspicious wallet movements. Prosecutors said Spektor faces multiple felony charges, with bail set at $500,000.

Bybit Restarts UK Operations Under FCA Framework

Crypto exchange Bybit relaunched services in the United Kingdom, offering spot trading and peer-to-peer crypto transactions. The platform supports one hundred trading pairs, operating under compliance arrangements approved by FCA authorised firm Archax. Bybit said the relaunch responds to rising UK crypto adoption and demand for regulated access points.

Bybit exited the UK in 2023 after stricter financial promotion rules complicated marketing and onboarding processes. Over the past year, the exchange restructured operations to meet advertising, disclosure, and consumer protection requirements. Executives described the return as a fresh chapter focused on transparency, compliance, and long-term user trust.

Data of the day

A crypto user lost nearly $50 million in USDt after copying a poisoned address from transaction history. Investigators said attackers inserted a look alike address via small transfers, exploiting habitual copying behavior rather than protocol vulnerabilities. Onchain data shows the victim first sent a test transaction, then mistakenly transferred the full amount minutes later.

Security researchers noted the addresses shared identical starting and ending characters, making visual detection extremely difficult even for experienced users. The stolen funds were quickly swapped into Ether, fragmented across wallets, and partially routed through Tornado Cash. Analysts said the incident highlights growing human-targeted attack vectors amid rising crypto transaction volumes.

More breaking news

• The Marshall Islands tested digital universal basic income using Stellar’s USDM1 token, aiming to replace cash and expand financial inclusion nationwide.

• Senator Cynthia Lummis, a leading crypto advocate in Congress, announced she will not seek reelection in 2026, ending her pro-Bitcoin tenure.

• The SEC proposed settlements barring key FTX and Alameda executives from corporate leadership roles for up to ten years following their cooperation.

• Galaxy Research predicted stablecoins will surpass ACH transaction volume in 2026 as adoption grows under new US regulatory clarity from the GENIUS Act.

• VanEck updated its Avalanche ETF filing to include staking rewards through Coinbase, allowing up to 70% of AVAX holdings to generate yield.

• TRON integrated with Coinbase’s Base network, enabling TRX to bridge onto Layer 2 and expanding cross-chain access across major decentralized applications.

• Crypto trading in Brazil surged 43% in 2025, with average user investment exceeding $1,000 and stablecoins driving record participation growth.

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