Crypto News Round-Up — February 2026

Crypto markets saw a busy week with high-profile incidents and policy developments. Security breaches, regulatory moves and volatile trading underscored the fast-changing landscape. This round-up highlights the key stories and explains why each matters for investors and industry participants.

• DeFi Platform Breached: $40 Million Stolen from Step Finance
• North Korean Hackers Deploy AI-Generated Malware Videos
• SEC Filing Would Lift Crypto Listing Restrictions
• Basel Crypto Capital Rules Take Effect in 2026
• Crypto Sell-Off Triggers Liquidations, Spurs ETF Interest
• Report: Global Crypto Adoption Reaches New Highs

DeFi Platform Breached: $40 Million Stolen from Step Finance

This week saw a major exploit that drained $40 million from Step Finance, a decentralized finance dashboard. According to a report by Tom’s Hardware, attackers compromised the wallets of key executives to steal assets across popular blockchains. The incident is already the largest DeFi hack in 2026, underscoring that even mature crypto projects remain vulnerable (Tom's Hardware).

Step Finance’s developers are scrambling to assess the damage and contain fallout. Many funds were transferred through privacy techniques, hampering immediate recovery. The breach raises fresh questions about custodial security and has reignited debate over how to secure decentralized platforms against insider or device-based attacks.

• Highlights the importance of rigorous security practices at crypto firms.
• Underscores risks facing DeFi investors if platforms are compromised.
• May slow some institutional adoption as security remains a concern.

North Korean Hackers Deploy AI-Generated Malware Videos

Security researchers reported that North Korean threat actors have been leveraging AI-generated video avatars to spread malware. In the scheme, hackers created a realistic deepfake persona to lure victims into remote support calls, ultimately installing trojan software on Mac and Windows machines (TechRadar). This novel tactic is linked to North Korea’s effort to raise funds through cybertheft amid international sanctions.

The campaign specifically targeted unsuspecting users with fake software installers. Analysts warn that victims of these social engineering attacks could have personal data or crypto wallet keys stolen. The use of AI avatars marks a dangerous evolution in cyberattacks against individuals, particularly those holding digital assets.

• Demonstrates how advanced tools are enabling more convincing scams.
• Heightens the threat to individual security in crypto (malware can steal keys).
• Recommends extra vigilance when downloading apps or taking unsolicited tech support calls.

SEC Filing Would Lift Crypto Listing Restrictions

The U.S. Securities and Exchange Commission (SEC) recently filed rule changes proposed by Nasdaq-affiliated exchanges to remove restrictions on listing certain crypto assets. The Jan. 26 filings seek to allow broader crypto-related products to trade on national markets, reversing prior limitations that had kept many digital assets off exchange books (SEC.gov). If approved, this move could open major stock exchanges to more token-linked securities.

Market analysts say the adjustments reflect regulators’ cautious shift toward accommodating cryptocurrencies. By easing listing rules, U.S. exchanges could start offering new crypto funds or derivatives. However, the petitions must clear public comment and full SEC approval before taking effect.

• Enables more mainstream investment products like crypto ETFs or trusts.
• Signals increased regulatory comfort with cryptocurrencies in capital markets.
• Could boost trading volume and liquidity for vetted crypto assets.

Basel Crypto Capital Rules Take Effect in 2026

Global banking regulators implemented new Basel Committee standards on Jan. 1, 2026, dramatically increasing capital requirements for crypto exposures. Under the new framework, banks must allocate up to 1,250% risk weight to certain digital-asset holdings, a sharp upward adjustment reported by industry analysts (Make Crypto Make Sense). The stringent rules effectively force banks to treat crypto assets as extremely risky on their balance sheets.

Authorities say the higher capital charges are designed to protect the banking system from crypto-market shocks. The requirements cover both stablecoins and other digital assets, and apply worldwide to internationally active banks. Financial institutions now face a much higher cost of doing crypto-related business, which could slow the rollout of crypto services in traditional finance.

• Drastically increases cost for banks to service crypto clients.
• Reflects regulators’ caution and view of crypto as high-risk assets.
• May dampen the pace of institutional crypto offerings from banks.

Crypto Sell-Off Triggers Liquidations, Spurs ETF Interest

A recent weekly market report noted intense selling pressure in crypto markets, driven by leveraged long liquidations. According to Coin360’s Feb. 7 dispatch, bitcoin prices tumbled by roughly 20% at one point, amid a cascade of automated sell orders, dragging altcoins lower. The downturn coincided with rising global bond yields, which bolstered caution among crypto investors (Coin360 Weekly Dispatch).

Interestingly, even as prices fell, demand for regulated crypto products remained strong. The report highlighted substantial inflows into Bitcoin and Ethereum ETFs, suggesting that long-term investors were buying the dip. Analysts say the contrast between swift sell-offs and steady institutional fund flows illustrates crypto’s dual nature: fiercely volatile yet still attracting mainstream capital.

• Emphasizes crypto’s high volatility: rapid pumps and dumps are common.
• Liquidations amplify price swings, hurting over-leveraged traders.
• Steady ETF flows imply growing trust from institutional investors.

Report: Global Crypto Adoption Reaches New Highs

A newly published index shows that worldwide crypto adoption is accelerating. According to a report summarized by Cointelegraph, the “2026 Global Digital Asset Adoption Index” ranks countries by public and private crypto usage indicators. The data indicate that emerging markets continue to lead in adoption rates, while advanced economies show steady institutional involvement (Cointelegraph).

The report highlights a broadening user base and growing engagement from businesses. From peer-to-peer transactions to blockchain banking pilots, the metrics reflect growing comfort with digital assets globally. Policymakers and businesses will likely use these insights to craft strategies, whether to capitalize on or regulate rising crypto interest.

• Shows that crypto use is spreading internationally and not confined to a few markets.
• Helps firms and regulators gauge where to focus crypto services or oversight.
• Reinforces the narrative that digital assets are maturing as a global phenomenon.

Reminder: Cryptocurrency markets remain highly volatile and speculative. The incidents and trends above demonstrate that prices can swing dramatically on security breaches or policy news. Investors and readers should remain cautious and conduct thorough research (DYOR) before committing funds. Only allocate what you can afford to lose.

Bottom Line

This week’s events underscore crypto’s rapidly evolving landscape: from major security breaches to sweeping regulatory changes and market swings. Hackers are becoming more sophisticated just as regulators and institutions continue to take digital assets seriously. In such an environment, cryptocurrency remains a high-risk but increasingly mainstream class of assets.

As always, volatility will remain the norm. Investors should stay informed and exercise judgment as new developments unfold, balancing opportunity with risk in the unpredictable crypto space.