Crypto News Round-Up — January 2026

This month’s roundup covers recent developments in the crypto world, from new regulations in Asia and Europe to a major wallet security breach and an exchange update. We also look at a notable token launch event and a web3 game studio closure. Read on for details and analysis of each story.

• Trust Wallet Browser Extension Breach
• Asia Tightens Crypto Rules (Hong Kong, Vietnam)
• European Crackdown on Crypto Firms
• Binance Removes FDUSD Margin Pairs
• Lighter Project’s Token Launch
• ChronoForge Game Studio Shuts Down

Trust Wallet Browser Extension Breach

On December 24, 2025, attackers published a malicious version (v2.68) of the Trust Wallet browser extension to the Chrome Web Store (trustwallet.com). The compromised update contained code that siphoned private keys and drained funds. Investigators have confirmed that 2,520 wallet addresses were affected, with roughly $8.5 million in cryptocurrency stolen and moved to attacker-controlled addresses (trustwallet.com). Trust Wallet has issued an emergency update (v2.69) and is assisting victims. Affected users are advised to transfer any remaining funds to new wallets and submit reimbursement claims via the official support channels (trustwallet.com).

• Why it matters: This incident highlights the danger of supply-chain attacks in crypto. Even trusted software updates can be compromised, underscoring the need for rigorous code auditing and security reviews.
• Why it matters: The breach affected thousands of users and millions in assets, demonstrating that no crypto platform is immune. It may prompt calls for stronger security standards and liability measures in wallet software.

Asia Tightens Crypto Rules (Hong Kong, Vietnam)

In Asia, regulators are moving to formalize crypto markets. Hong Kong’s Monetary Authority announced it will apply Basel-aligned capital requirements to crypto assets starting January 1, 2026 (www.odaily.news). This change may make banks more cautious about providing services for stablecoins and tokenized assets. Meanwhile, Vietnam’s legislature has passed a new Law on Digital Technology Industry that formally legalizes cryptocurrencies; its provisions take effect on January 1, 2026 (www.odaily.news). Vietnam is one of the first countries in the region to explicitly legalize crypto and set a clear regulatory framework.

• Why it matters: Hong Kong’s Basel crypto rules signal tighter risk management for banks, which could limit institutional crypto activity in the short term.
• Why it matters: Vietnam’s legalization brings regulatory certainty to crypto businesses and holders. Clear laws can encourage investment and innovation now that operations will be lawful under Vietnamese regulation.

European Crackdown on Crypto Firms

European authorities are enforcing stricter crypto licensing rules before year-end. The Bank of Lithuania warned that any crypto service provider operating without a license by December 31, 2025, will be considered illegal (www.weex.com). Similarly, Italy’s securities regulator (CONSOB) requires all virtual-asset firms to apply by December 30, 2025 for registration as regulated Crypto Asset Service Providers (CASPs) if they wish to keep operating (www.odaily.news). These deadlines stem from new EU-wide rules (like MiCA) and aim to bring all market players under official oversight.

• Why it matters: Regulators are moving quickly to enforce compliance. Firms that fail to register or license by the deadline will have to cease operations, reducing “gray market” risks but causing short-term disruption for some businesses.
• Why it matters: The push aligns with wider European regulatory efforts. By enforcing these rules, Europe aims to increase market integrity and protect consumers, though it may also concentrate activity among larger, established firms.

Binance Removes FDUSD Margin Pairs

Binance announced it will delist several margin-trading pairs involving its stablecoin FDUSD on December 30, 2025 (www.odaily.news). Affected pairs include EIGEN/FDUSD, ARB/FDUSD, TRUMP/FDUSD and others. Isolated margin trading for these pairs will be suspended on December 24 and all open positions will be forcibly closed at 06:00 UTC on Dec 30 (www.odaily.news). Traders are instructed to close or transfer their positions before the deadline. The company’s notice suggests a shift in focus away from these FDUSD markets.

• Why it matters: Removing FDUSD pairs may signal lower confidence or demand for that particular stablecoin. It could reduce liquidity and lead to volatility in the affected altcoin markets in the short term.
• Why it matters: Exchanges often adjust trading offerings as market conditions change. This move reminds traders to stay alert to platform announcements that can suddenly alter risk profiles (e.g. forced position closures).

Lighter Project’s Token Launch

The Lighter (LIT) project has confirmed details of its upcoming token launch. On-chain analytics and project announcements indicate that Lighter’s token generation event (TGE) is scheduled for December 29, 2025, via the MEXC exchange Launchpad (www.odaily.news). The team announced that 25% of the total LIT supply will be airdropped to users (with no lock-up restriction) and that 50% of the tokens are allocated to the community (e.g. for staking, rewards, etc.) (www.odaily.news). Exchange listings are already planned — Coinbase and Bybit have reportedly added LIT to their listing roadmaps (www.odaily.news) — indicating strong ecosystem support.

• Why it matters: Token launch events can generate significant market hype and trading volume. Investors should watch for price volatility around the TGE, especially given the large airdrop share.
• Why it matters: A major airdrop (25% of supply) with no lock-up means many tokens could enter circulation immediately, potentially pressuring the price unless demand is very high.
• Why it matters: Listings on big exchanges like Coinbase suggest confidence in the project’s visibility. However, as with any new token, fundamentals and project execution will determine long-term success.

ChronoForge Game Studio Shuts Down

ChronoForge, a blockchain game studio behind a planned action RPG, announced it will shut down operations on December 30, 2025 (www.odaily.news). The firm cited an inability to secure additional funding or a buyer as the reason for winding down. ChronoForge had been developing its game on ImmutableX and RAID but ultimately shelved the project due to resource constraints (www.odaily.news). This closure follows a period of market tightening for crypto and NFT gaming ventures.

• Why it matters: The shutdown illustrates that even well-backed Web3 projects can fail if market conditions sour. Investors and developers should note that funding in blockchain gaming remains highly speculative.
• Why it matters: This news serves as a cautionary tale about crypto startups: crypto-related projects still face traditional business risks (funding, development delays). Web3 hype does not guarantee sustainability.

Reminder: Cryptocurrency projects and markets can be extremely volatile. The information above is for general awareness and does not constitute investment advice. Always do your own research and consider the risks before making any financial decisions.

Bottom Line

This past week’s news highlights a mix of expanding official support and cautionary signals in crypto. Asian regulators are formalizing new rules, which should improve legal clarity but may temper short-term enthusiasm. European authorities are enforcing licensing deadlines, tightening oversight on crypto firms. At the same time, the Trust Wallet breach underscores persistent security risks in the space, reminding users to stay vigilant. Overall, these developments reinforce a theme: the crypto landscape is maturing and subject to faster change than ever. As always, readers should stay informed, be mindful of volatility, and proceed carefully with any investments in this dynamic market.