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Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. BlockFills Freezes Withdrawals: BlockFills paused deposits and withdrawals after Bitcoin fell nearly 47% from its $126K peak, triggering a liquidity crunch.

2. Coinbase Launches AI Wallets: Coinbase introduced “Agentic Wallets,” enabling AI agents to autonomously trade and manage crypto on Base.

3. Paxful Hit With $4M Fine: Paxful was fined $4 million for AML violations tied to illicit transactions between 2017–2019.

4. 💡Feature of the Day - Russia Blocks WhatsApp: Russia banned WhatsApp for over 100 million users, pushing adoption of its state-backed messaging app “Max.”

   
   All this and more in today’s headlines!

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📰 News Highlights:

BlockFills Withdrawal Freeze [Source]

BlockFills has suspended customer deposits and withdrawals in an effort to restore liquidity after Bitcoin plunged 46.6% from its October 2025 all-time high of $126,000. The market downturn, partly triggered by renewed tariff tensions, wiped out nearly $20 billion in positions and dragged BTC down to a $60,008 low.

While withdrawals are paused, the platform’s 2,000 institutional clients can still trade spot and derivatives products to manage exposure. The firm described the halt as a precautionary move to stabilize reserves and secure fresh funding.

Backed by major players like Susquehanna and CME Group, BlockFills processed over $60 billion in trades in 2025 alone. CEO Nick Hammer promised a swift resolution as the platform works through the liquidity crunch.

The suspension marks the first major institutional-focused platform disruption during the 2026 correction. With Bitcoin still nearly 50% below peak levels, institutional resilience is becoming the market’s key health indicator.

Coinbase Agentic Wallets [Source][Source][Source]

Coinbase launched “Agentic Wallets,” enabling AI agents to autonomously trade, earn yield, and spend crypto without human signatures. Built on Ethereum Layer-2 Base, the wallets allow agents to pay for compute, manage DeFi strategies, and rebalance portfolios around the clock.

At the same time, Lightning Labs introduced tools enabling AI transactions on the Bitcoin Lightning Network via the L402 protocol. Together, these developments signal the rise of AI-native financial infrastructure.

New systems like Coinbase’s x402 protocol — already supporting 50 million autonomous transactions — allow AI agents to operate as self-sustaining economic actors. Industry leaders such as Circle CEO Jeremy Allaire and former Binance CEO CZ argue crypto is the natural currency for AI.

The vision is clear: AI agents not only make decisions but also execute payments independently. The shift moves finance toward a machine-driven economy operating 24/7 without human bottlenecks.

Paxful AML Fine [Source]

Peer-to-peer exchange Paxful was ordered to pay $4 million after admitting to AML violations and conspiring to facilitate illegal activity. While prosecutors initially sought $112.5 million, the reduced penalty reflects the company’s limited financial capacity.

Investigators found Paxful knowingly promoted lax KYC standards between 2017 and 2019, benefiting from illicit flows tied to the now-shuttered site Backpage. The DOJ said the company effectively marketed itself as a workaround for compliance rules.

At its peak, Paxful processed 26 million trades worth nearly $3 billion, much of it tied to fraud, extortion, and trafficking proceeds. The platform shut down in November 2025 under mounting legal pressure.

Former CTO Artur Schaback awaits sentencing in 2026, while founder Ray Youssef disputes responsibility for the collapse. The case underscores how early “wild west” crypto practices are colliding with modern regulatory enforcement.

💡 Feature of the Day: 

Russia Blocks WhatsApp [Source][Source][Source][Source]

Russia has blocked WhatsApp, cutting off more than 100 million users and escalating its push toward the state-owned messaging app “Max.” The move follows months of tension between the Kremlin and Meta, with officials demanding data-sharing compliance.

Since September 2025, Max has been required to be pre-installed on all new smartphones sold in Russia. The government frames the shift as a security measure, while critics see it as tightening digital control.

The ban reflects a broader global trend of governments restricting communication platforms during political tension. Similar crackdowns have occurred in countries like Uganda, Madagascar, and Nepal.

As VPN usage surges, Russia’s decision accelerates the rise of a fragmented “splinternet.” The battle over private messaging is increasingly becoming a fight over digital sovereignty and state oversight.

😂 Crypto Meme of the Day: 

Meme of the day provided by @web3.career

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com