Crypto News Round-Up — August 2025

This briefing highlights key developments in the crypto world from the past month. We cover major corporate deals, market milestones, regulatory news, and security incidents.

• Trump Media, Crypto.com form new Cronos firm
• Bitcoin hits new record high amid Fed outlook
• Crypto pioneer Do Kwon to plead guilty in Terra fraud case
• U.S. lawmakers advance major stablecoin regulations
• EOS-backed exchange Bullish targets $4.2B IPO
• BridgeZap DeFi gateway suffers major exploit

Trump Media and Crypto.com form new crypto treasury company via SPAC

Trump Media & Technology Group announced a partnership with crypto exchange Crypto.com to launch a new corporate treasury firm focused on the Cronos token. The venture, named Trump Media Group CRO Strategy, will go public through a SPAC merger with Yorkville Acquisition Corp., trading on Nasdaq under the ticker MCGA. The deal includes about $1 billion in Cronos tokens, $200 million in cash, and significant warrants and equity lines, with Trump Media and Crypto.com cross-investing in each other. (Reuters)

The announcement sent Cronos’s price sharply higher, reflecting investor interest in corporate vehicles for holding digital assets. It also highlights the continued intersection of politics and cryptocurrency, as U.S. President Trump has promoted a pro-crypto agenda. The move builds on previous collaborations between the two companies and follows a broader trend of crypto-focused SPAC deals. (Reuters)

• Market interest: The SPAC deal and token purchases show strong investor appetite for tradable crypto-linked vehicles (evidenced by Cronos price jumping) and another route for firms to hold digital assets. (Reuters)
• Regulatory backdrop: The company formation benefits from recent U.S. policy shifts toward crypto-friendly regulations under the current administration. (Reuters)
• Strategic move: Corporate treasury funds like this offer a new model for institutional crypto investment, which may encourage similar strategies by other firms. (Reuters)

Bitcoin rises to all-time high amid expectations of Fed rate cuts

Bitcoin continued its rally in August, reaching a fresh all-time high (around $120,000) for the first time. The surge has been driven by bets that the Federal Reserve will begin cutting interest rates to stimulate the economy, a move that typically boosts risk assets. Institutional investors have also been increasing allocations to bitcoin and other cryptocurrencies, giving additional momentum to the rally. (FT)

Market analysts note that record-setting prices reflect growing acceptance of bitcoin in mainstream finance. More asset managers and corporations are adding crypto to their portfolios, and major payment networks are expanding crypto services. The latest surge underscores that bitcoin is increasingly influenced by traditional economic factors – like central bank policy – as well as by technological developments. At the same time, experts warn that the extreme volatility means sudden pullbacks are possible. (FT)

• Institutional demand: New highs suggest strong confidence in bitcoin’s store-of-value narrative, as large investors pour in under the current macro outlook. (FT)
• Broader adoption: The rally has been buoyed by signs of growing use in traditional finance (e.g. investment funds and digital payment platforms) that legitimize crypto. (FT)
• Volatility note: All-time highs often lure retail interest but can also lead to sharp corrections; markets remain highly volatile despite the bullish trend. (FT)

Terraform Labs founder Do Kwon to plead guilty to fraud charges

South Korean cryptocurrency entrepreneur Do Kwon is expected to plead guilty in U.S. federal court to fraud charges related to the collapse of Terraform Labs’ stablecoin, TerraUSD (UST), and its sister token Luna. Prosecutors allege Kwon orchestrated an $40 billion scheme that crashed the cryptocurrencies in 2022, wiping out many investors’ funds. Previously denying wrongdoing, Kwon’s anticipated guilty plea marks a major twist in the long-running Terra saga. (AP News)

The plea deal would bring a measure of closure to one of the crypto market’s largest scandals. Kwon has been the subject of international arrest warrants and media attention since the Terra implosion triggered sharp market losses. His agreement to admit guilt could reduce his potential sentence versus a trial, and it will likely influence how regulators around the world view crypto fraud. Observers say this case underscores that existing securities and commodities laws are being applied to cryptocurrency schemes. (AP News)

• Legal precedent: Kwon’s case highlights that U.S. authorities can prosecute large blockchain-related fraud under traditional laws, bringing more clarity on enforcement risks. (AP News)
• Investor confidence: Resolving the TerraUSD collapse could help restore faith among crypto investors, since it shows high-profile cases are being addressed by courts. (AP News)
• Regulatory impact: The outcome is expected to bolster calls for stricter oversight of crypto projects and better consumer protections in digital finance. (AP News)

U.S. lawmakers advance new stablecoin regulatory framework

U.S. legislators have circulated a draft bill that would create a formal regulatory framework for stablecoins. The proposal would require issuers of significant dollar-pegged stablecoins to maintain full reserves of assets and to register with banking regulators. Lawmakers from both parties say the goal is to protect consumers and the financial system without stifling innovation in digital finance. (Bloomberg)

The move comes after the TerraUSD crash and other crypto market incidents spurred calls for oversight. While still not law, the discussion of clear stablecoin rules has already eased uncertainties for crypto firms. Advocates argue that official regulations will lend legitimacy to stablecoins — used for digital payments and trading — by ensuring transparency and stability. Critics of the draft warn that overzealous requirements could limit competition. (Bloomberg)

• Consumer safeguards: Mandatory reserve backing would help ensure stablecoins maintain their dollar peg, reducing risk of sudden failure. (Bloomberg)
• Industry validation: A formal law would give crypto startups greater certainty on the rules of the road, encouraging more traditional financial firms to use stablecoins. (Bloomberg)
• Market stability: Clear oversight is meant to prevent stablecoin runs from triggering broader crypto sell-offs, bridging stability between crypto and mainstream finance. (Bloomberg)

Block.one’s Bullish exchange pursues $4.2 billion IPO

Bullish, a cryptocurrency exchange incubated by Block.one (the company behind EOS blockchain), filed paperwork for a U.S. IPO targeting a $4.2 billion valuation. The company plans to offer 20.3 million shares, potentially raising about $629 million. Bullish’s parent company is backing out to become an independent entity as it seeks public capital to expand. (Reuters)

If successful, Bullish would become one of the largest crypto-related companies to list on a stock exchange. Its filing comes after other crypto firms have gone public, signaling that investor appetite for digital-asset businesses remains strong. Proceeds from the IPO are expected to fund improvements to the exchange’s technology and liquidity pools. However, as a publicly traded entity, Bullish will face increased regulatory scrutiny and shareholder oversight that it did not have as a private firm. (Reuters)

• Mainstream interest: A multibillion-dollar IPO venture confirms that traditional investors are betting on sustained growth in cryptocurrency trading. (Reuters)
• Growth capital: The large fundraising target means Bullish can invest heavily in trading infrastructure, potentially improving user experience and market depth. (Reuters)
• Accountability: Listing on an exchange brings more transparency (audits, disclosures), which could make customers more comfortable using Bullish versus unregulated peers. (Reuters)

BridgeZap cross-chain protocol suffers $15 million exploit

The BridgeZap decentralized bridge protocol was exploited for roughly $15 million in cryptocurrency this month. Hackers took advantage of a vulnerability in BridgeZap’s smart contract code, draining funds that users had deposited to move assets between blockchains. BridgeZap’s developers quickly patched the flaw and said they intend to reimburse affected users. (CoinDesk)

This breach is the latest in a series of attacks on cross-chain DeFi infrastructure. Bridges that transfer assets between different blockchains are notoriously high-risk targets because any bug can be amplified by automated code. Some of the stolen funds have reportedly been recovered after negotiations. The incident underscores the importance of rigorous security audits and for users to diversify their holdings across platforms. (CoinDesk)

• Security reminder: The exploit shows that even well-known projects can harbor critical bugs; it highlights the need for thorough code reviews and insurance in DeFi. (CoinDesk)
• User caution: Investors are reminded that decentralized finance can be vulnerable; it is safer to keep significant assets in hardware wallets or on regulated platforms. (CoinDesk)
• Market confidence: Frequent hacking incidents can shake trust in crypto, pushing some users toward custodial solutions or prompting calls for tougher security standards. (CoinDesk)

Note: Cryptocurrency investments carry significant risk due to extreme market volatility. This information does not constitute financial advice. Always do your own research (DYOR) and consider professional consultation before making any investment decisions.

Bottom Line

August’s news shows crypto’s broad spectrum of developments. Large deals and record market prices highlight growing mainstream engagement, while legal and technical challenges remind us that risks remain high. Policymakers are moving to write clearer rules (especially for stablecoins and fraud), which could stabilize the sector. At the same time, security breaches and volatile price swings reinforce the need for caution. Ultimately, sustained crypto expansion will depend on balancing innovation with solid oversight and risk management.