Wallet security and staking dynamics dominated markets on July 31, 2026, after a high-profile hardware-wallet vulnerability led to large Bitcoin losses, police arrested suspects in a major fake staking scheme, and on-chain staking and lending activity continued to shape DeFi developments.
Coldcard hardware vulnerability and Bitcoin losses
Galaxy Research reported that nearly 1,200 addresses were emptied of more than 1,000 Bitcoin on July 30, 2026, in a vulnerability linked to Coldcard hardware wallets. Maker Coinkite, the device maker, warned that seed material from Coldcard Mk3 units with older firmware was at risk and expanded that advisory to Mk4, Mk5 and Coldcard Q devices. CEO Rodolfo Novak publicly apologised and accepted responsibility while the company issued emergency firmware updates to mitigate the problem.
Fake XRP staking scheme leads to arrests
Seoul police announced the arrest of three suspects on July 30, 2026, in connection with a fake XRP staking fraud that defrauded 71 investors of roughly $19 million. The scheme, which began in October 2025, used the name of the FXRP network and promised monthly returns of 1.5% to 1.8%. Victims transferred about 3.4 million XRP — reported as worth $8.6 million — and authorities said they had frozen $12.1 million overseas while issuing an Interpol red notice.
Tether posts higher quarterly earnings and growing reserves
Tether reported net operating income of $1.5 billion for the second quarter, an increase of nearly 50% year-on-year. As of June 30, Tether held $187.75 billion in assets against $183.64 billion in liabilities, leaving a reported surplus of $4.11 billion. USDT circulation reached $184.6 billion, representing over 60% market share, and the company added 14 tonnes of gold during the quarter, bringing its total reported holdings to 146 tonnes.
Ethereum staking queue expands after Pectra upgrade
Data from Beaconcha.in showed the Ethereum validator input queue swelled to about 2.5 million ETH on July 31, 2026, with new stakers facing an activation delay of roughly 43 days. Sygnum Bank’s Thomas Brunner said the queue reflects the mechanics of the Pectra upgrade as much as new demand for staking. Approximately 41.2 million ETH, or 33.8% of the supply, was staked at that time, while TD Cowen lowered its price forecast for ETH to $2,371.
Uniswap integrates Morpho for on-chain lending vaults
Uniswap launched 'Earn' on July 31, 2026 in partnership with the Morpho lending protocol. The product allows deposits of USDC, USDT and ether into three Gauntlet vaults that earn returns while remaining withdrawable at any time. The launch follows commentary from SEC Commissioner Hester Peirce that on-chain lending vaults could be subject to securities laws.
Quantum computing and crypto security on the radar
IBM CEO Arvind Krishna told CNBC that he expects quantum computing to begin contributing to IBM’s revenue in 2028–2029 and projected a market value of $1 trillion by 2030, naming competitors such as Alphabet, IonQ and Rigetti. The crypto sector continues to monitor quantum advances because, in theory, sufficiently powerful quantum machines could threaten current public-key cryptography used in Bitcoin wallets.
Taken together, the day’s headlines spanned immediate operational risks — from exploited hardware wallets and fraud arrests — to broader structural themes such as staking mechanics, DeFi product launches and the long-term implications of quantum computing for cryptographic security.