A U.S. District Judge in the District of Connecticut has reinstated common law fraud charges brought by investors against Digital Currency Group founder Barry Silbert, DCG, and other defendants in the Genesis Yield lawsuit, while allowing federal securities law charges in the case to proceed. This ruling amends an earlier court decision from February of this year. The plaintiffs had previously argued that the court had jurisdiction to hear their state law claims under the Fair Class Action Act. Judge Stefan Underhill accepted this argument and reinstated the relevant state law claims. The case revolves around the failed Genesis Yield lending program, which allowed users to deposit crypto assets and earn interest. Investors allege that Silbert, DCG, and other defendants knowingly misled customers before Genesis suspended withdrawals and filed for bankruptcy in early 2023, despite knowing the company's financial health and risk control issues. However, not all state law charges were reinstated. The court dismissed consumer protection claims in four states and suspended claims in three other states. Overall, the ruling brings the dispute over DCG and Silbert's liability for fraud back into focus. (The Block)

Odaily Planet Daily reports that Bonk Inu's official X account stated that BonkDAO suffered a malicious governance proposal attack, resulting in the theft of approximately $20 million worth of BONK tokens from its DAO vault. It is alleged that the attackers transferred assets from the BonkDAO vault through a questionable governance proposal. The stolen BONK subsequently began flowing to exchanges, putting downward pressure on the BONK price. Data from The Block shows that the BONK price has fallen by more than 9%. South Korean exchange Upbit subsequently issued a notice stating that it has temporarily suspended BONK deposits and withdrawals in response to the incident and to prevent potential risks. (The Block)

Odaily Planet Daily reports that M1X Global, a startup specializing in tokenized sovereign debt, has completed a $5.5 million seed funding round led by Paradigm, with participation from Breed VC and others. M1X Global previously partnered with the Republic of the Marshall Islands to assist in the issuance of USDM1, an on-chain sovereign debt instrument. This product is a USD-denominated, 1:1-backed sovereign debt instrument natively issued by the sovereign nation on a public blockchain. USDM1 was initially issued on Stellar and is currently also available on Canton and Solana. Jordan Goldman, President and COO of M1X, stated that sovereign debt is one of the largest asset classes globally, but prior to USDM1, it did not exist in a native on-chain form. The company aims to establish USDM1 as on-chain sovereign collateral and expand its use in regulated financial markets. The initial application scenario for USDM1 is the disbursement of domestic government aid. Marshall Islands citizens can receive funds through the Lomalo wallet, enabling payments to be completed within seconds without relying on traditional correspondent banking networks. M1X also stated that its recent integration with Bank of Guam, an insurance bank under the U.S. FDIC, further connects USDM1 to regulated banking infrastructure. (The Block)

According to Bloomberg, President Trump's proposed strategic Bitcoin reserve is facing legal and jurisdictional issues, with the core controversy revolving around whether the U.S. Treasury Department has the legal right to manage the reserve. Early in his presidency, Trump proposed establishing a strategic Bitcoin reserve, primarily funded by U.S. government-held Bitcoin through criminal or civil seizures, and a separate digital asset inventory. Related executive orders also required the Treasury and Commerce Departments to develop a "budget-neutral" Bitcoin acquisition strategy, meaning it should not increase taxpayer costs. However, sources say the discussion has now shifted to whether the reserve should be placed under the Commerce Department, rather than the Treasury. Another point of contention is whether the U.S. government can hold BTC "indefinitely," given its price volatility. White House spokeswoman Liz Huston stated that the Trump administration is still evaluating the best structure for the strategic Bitcoin reserve and the U.S. digital asset inventory to realize its vision of making the U.S. a global hub for cryptocurrency and cutting-edge technology. (The Block)

In the past hour, total liquidations across the network reached $79.85 million, with $5.12 million from long positions, with $74.73 million from short positions. BTC liquidation $84,332.05, ETH liquidation $70,520.43.