U.S. Treasury targets MEXC over $16B in alleged illicit flows

Treasury moves to cut MEXC off from the U.S. financial system. Plus: the Gnosis Pay data breach, and why crypto’s new businesses haven’t shielded Coinbase, Robinhood and Circle. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SPONSORED BY Saturday, November 7, 2026 U.S. Treasury moves to cut off crypto exchange MEXC over $16 billion in alleged illicit flows The U.S. Treasury’s Financial Crimes Enforcement Network is moving to cut crypto exchange MEXC off from the U.S. financial system, alleging it handled at least $16 billion tied to Iranian, North Korean and Russian sanctions evasion, cybercrime and other illicit activity over five years. Issued Friday under a Russia-focused anti-money-laundering law, the order would bar U.S. financial institutions from sending funds to or receiving funds from MEXC, including crypto transfers, 30 days after it’s published in the Federal Register. MEXC is the largest exchange targeted under the law, which has previously been used against much smaller crypto firms. FinCEN alleges nearly $1.5 billion in Russian sanctions-evasion flows, about $1 billion in transfers to more than 40 Iranian exchanges and $22 million linked to Iran’s central bank and the Revolutionary Guard. MEXC says it’s operating normally and has launched an independent review of its anti-money-laundering and sanctions controls. Read more → Finance Gnosis Pay breach exposes card numbers, home addresses and linked crypto wallets Crypto debit card provider Gnosis Pay disclosed a data breach that exposed customers’ names, home addresses, card numbers and linked crypto wallet addresses — information that could let attackers tie real-world identities to crypto holdings and target users with scams. The company says it detected the intrusion Nov. 3, began containing it within two hours, and fixed the flaw. It says customer funds and its separate enterprise platform weren’t affected, but didn’t say how many users were hit; it emailed each affected customer. Rotki founder Lefteris Karapetsas shared the notice he received. The breach comes weeks before Gnosis Pay shuts down its legacy consumer cards on Dec. 20, and after a roughly $1.5 million exploit in June that the company covered. 2-minute read → A message from Grayscale Your digital asset holdings could be working harder for you. With in-kind transfers available across 10 Grayscale products, eligible investors can exchange their crypto tokens for shares of the corresponding product — without first selling for cash. Three core features of in-kind investing: Put holdings to work. Shares may be eligible for use as margin or collateral. Where listed options are available, they may also help hedge exposure or generate income. Bring investments together. Incorporate crypto exposure into portfolio management and estate planning, including beneficiary designations. Simplify safekeeping. Underlying assets are held by institutional cusodians, reducing the burden of storing crypto and managing private keys. LEARN MORE Grayscale Exchange Traded Products (the “ETPs”) are not registered under the Investment Company Act of 1940 (40 Act) and therefore are not subject to the same regulations and protections as 40 Act registered ETFs and mutual funds. The ETPs are subject to significant risk, heightened volatility, and are not suitable for all investors. An investment in the ETPs is not a direct investment in any cryptocurrency. Extreme volatility of trading prices that many digital assets have experienced in recent periods, and may continue to experience, could have a material adverse effect on the value of the Fund and the shares could lose all or substantially all of their value. Digital assets represent a new and rapidly evolving industry. The value of the ETPs depends on the acceptance of digital assets, the capabilities and development of blockchain technologies and the fundamental investment characteristics of the digital asset. Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset. Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets. Converting tokens in kind into Grayscale’s spot crypto ETPs may require selling or swapping tokens into the underlying asset, creating exposure to market impact, slippage, and timing risk. The ETP shares received may trade at a premium or discount to NAV. Tax treatment is uncertain and may trigger taxable events, particularly when contributing assets other than the ETP’s underlying crypto. Foreside Fund Services, LLC is the Marketing Agent and Grayscale Investments Sponsors, LLC is the sponsor of the ETPs. Markets The crypto industry has found new ways to grow. Making money from them is another story Coinbase, Robinhood and Circle have expanded into stablecoins, payments and prediction markets, but their latest earnings show how hard it is to escape crypto’s boom-and-bust cycles. Coinbase’s third-quarter transaction revenue fell 23% from a year earlier to $590 million, though lower costs and newer products helped it hold total revenue near $1.22 billion; prediction markets now generate more than $200 million in annualized revenue. Circle’s reserve income dropped 8% to $658 million as interest rates fell, and its 17% revenue gain relied on $182 million of token presales for its Arc blockchain. USDC supply was little changed from a year earlier at $73.9 billion. Analysts are split: Barclays cut its Coinbase price target to $120 from $149, while Oppenheimer raised its to $207. 4-minute read → Know someone who should be reading this? Share this newsletter See all of CoinDesk’s newsletters    CoinDesk, Inc., 61 9th Avenue, 5th Floor, New York,NY,10011,USA, Unsubscribe Manage Preferences   Copyright © 2026 CoinDesk, All rights reserved.

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Bitcoin’s post-midterm bounce is fading

Bitcoin’s post-midterm bounce is fading as an AI-led selloff hits crypto and more than $1.2 billion in leveraged positions are liquidated. Plus: a blowout jobs report, Hyperliquid Strategies seeks U.S. approval, and World Liberty plans a token buyback. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Friday, November 6, 2026   Bitcoin’s post-midterm bounce is fading. Earlier this morning the cryptocurrency was down about 5.2% over 24 hours, trading around $76,100, and the broader CoinDesk 20 index was down 6.17% as pressure from the AI trade weighed on prices. The Nasdaq fell 5.5% on Thursday, its worst session since April 2025, and the selling carried into Asia, where South Korea’s Kospi dropped as much as 8.8%, triggering a 20-minute trading halt. With Democrats now controlling both chambers of Congress, investors worry that stronger opposition to data-center construction could slow the AI buildout, which weighs on bitcoin miners, many of which have pivoted to AI computing. Leverage deepened the decline, with more than $1.27 billion in crypto derivatives positions liquidated over the past 24 hours, more than $1.1 billion of them bullish bets, and institutional demand isn’t filling the gap, with spot bitcoin ETFs recording $430.2 million in net outflows on Thursday. Attention then turned to the October jobs report, which showed 165,000 new jobs against the 59,000 to 65,000 economists expected, a strong number that puts a December Fed hike, which markets were pricing at roughly 70%, back in play. Wintermute OTC trader Jasper De Maere sees $73,000 and $68,000 as potential downside targets and says bitcoin would need to reclaim and hold $80,000 to signal renewed strength. Stay alert. Read today’s full report → Market snapshot As of 9:30am ET Asset Price 24h BTC $75,744 −3.15% ETH $2,236 −4.53% SOL $90.85 −2.24% XRP $1.19 −7.30% Prices approximate. Visit coindesk.com/price for live data. What matters today Markets   Story 1 of 3 U.S. added 165,000 jobs in October, blowing past 65,000 estimate The U.S. labor market bounced back in a big way in October after a soft showing in September. The government’s Nonfarm Payrolls Report showed 165,000 jobs added, far past estimates of 65,000, and September’s originally reported gain of 29,000 was revised higher to 60,000. The unemployment rate fell to 4.1%, versus forecasts for 4.2% and September’s 4.2%, and average hourly earnings rose 0.4% on the month, ahead of the 0.3% forecast, and 3.1% from a year earlier, versus 2.9% expected. Bitcoin was down a hair after the news, trading around $75,800, Nasdaq 100 futures held a 1.5% gain, and the 10-year Treasury yield rose 6.4 basis points to 4.894%. Because of the stock market rout, traders had been rapidly trimming bets that the Fed would raise rates at its final meeting of the year next month, with the odds falling to about 70% from roughly 95% just weeks ago. CoinDesk notes that the report is likely to have traders betting on a December hike again, but that next week’s CPI and PPI reports, and whether the equity market stabilizes, will likely matter more to the Fed’s decision. Read more → Policy   Story 2 of 3 Hyperliquid treasury firm seeking U.S. regulatory nod as a domestic futures platform Hyperliquid Strategies, a publicly traded company that buys and holds HYPE tokens, is formally seeking to move some trading activity into the U.S. with a pending application to be regulated as a futures commission merchant, according to a Thursday statement released with its quarterly results. The company said setting up the FCM is how it intends to help bring markets deployed on Hyperliquid onshore. The Hyperliquid platform, an overseas giant in trading perpetual futures, remains closed to U.S. customers, and Hyperliquid Strategies is a separate public entity focused on buying, holding and staking the network’s token. It applied in August, through the National Futures Association, for FCM status for a subsidiary, HypeStrat Markets, and the application is still pending, according to NFA records. Subject to approval, the FCM would carry U.S. client accounts for permissioned markets deployed on Hyperliquid under its HIP-3 framework. CoinDesk notes that in August President Donald Trump said his administration was working with the CFTC to bring Hyperliquid into the U.S. in a compliant and legal way, an effort that has run into some legal objections from the U.S. derivatives industry. The company cautioned that there can be no assurance about the timing or outcome of the application. Read more → Finance   Story 3 of 3 Trump-backed World Liberty Financial plans token buyback after 66% year-to-date slide World Liberty Financial, the crypto venture backed by the Trump family, plans to buy back more of its WLFI token after a steep price drop that followed the U.S. midterm elections. WLFI has lost about 10% of its value since Tuesday and more than 66% this year, and CoinDesk reports that the TRUMP memecoin and Trump Media shares also hit record lows. The company said on X that it may fund the purchases with fees earned from the reserves backing its USD1 stablecoin, along with other sources, with the aim of encouraging more active participation in the project’s governance and putting more voting power in the hands of committed long-term holders, and that it intends buybacks to be an ongoing part of its long-term strategy. It is not the first such effort: in April the company disclosed $65.6 million in open-market buybacks over the prior six months. Separately, Tron founder Justin Sun said on Election Day that he had asked a federal court to sanction World Liberty in his lawsuit over roughly 4 billion frozen WLFI tokens. Read more → CoinDesk Disclosure: The information contained in this newsletter, and any information linked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. You should seek additional information regarding the merits and risks of investing in any cryptocurrency or digital assets. L1.co Disclosure: This material is for informational purposes only, and the content contained herein should not be considered investment advice or a solicitation, offer, or recommendation to sell or buy any asset, strategy, or product. Investing in digital assets involves a high degree of risk, including the loss of principal. Crypto Daybook Americas: A newsletter from CoinDesk Were you forwarded this newsletter? 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