Good Morning Crypto Enthusiasts!

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

1. Step Finance Treasury Breach: Step Finance confirmed a $27.2M treasury wallet hack that drained over 261K SOL, sending the STEP token down more than 90%.

2. SBF Courts Trump Pardon: Sam Bankman-Fried has pivoted politically, praising Donald Trump while slamming the Biden administration’s crypto policies.

3. US Sanctions Iran Crypto Exchanges: The US Treasury sanctioned Iranian-linked exchanges Zedcex and Zedxion for allegedly supporting the IRGC through crypto transactions.

4. 💡Feature of the Day - Bitcoin Tests $77K Support: Bitcoin fell 7% to around $77,000, triggering over $2B in liquidations and reviving fear across the market.

   
   All this and more in today’s headlines!

📰 News Highlights:

Step Finance Breach Fallout [Source][Source][Source]

Step Finance confirmed a major treasury wallet breach that drained roughly 261,854 SOL, worth about $27.2 million, during APAC trading hours. The disclosure sent shockwaves across the Solana ecosystem, given Step’s role as a core DeFi dashboard and media hub.

The impact was immediate and brutal, with the STEP token crashing over 90% to around $0.0016. Several connected entities, including SolanaFloor and Remora Markets, were also affected by the breach.

Beyond the price collapse, the bigger issue is trust. Step Finance acknowledged the attack used a “well-known vector,” raising questions around key management and internal security controls.

While the team says remediation is underway, the treasury drain leaves the project’s roadmap in limbo. Without a clear recovery plan and transparent audit, confidence in STEP’s long-term utility remains severely damaged.

SBF Courts Trump [Source]

Sam Bankman-Fried has taken a sharp political turn, publicly praising Donald Trump while criticizing the Biden administration’s crypto stance. The shift comes shortly after Caroline Ellison’s release from prison, fueling speculation that SBF is angling for a presidential pardon. Once a major Democratic donor, the former FTX CEO now appears to be rewriting his political identity from behind bars.

Markets aren’t convinced. Prediction platforms like Polymarket place just a 17% chance of a Trump-issued pardon before 2027, reflecting skepticism around both the optics and legality.

While SBF blames the crypto downturn on former SEC Chair Gary Gensler, his appeal remains stuck in the courts. For now, the pivot looks more like a legal Hail Mary than a realistic escape plan.

US Sanctions Iran Exchanges [Source][Source]

The US Treasury has sanctioned Zedcex and Zedxion, marking the first time crypto exchanges have been targeted under Iran-related sanctions. Officials allege the platforms played a key role in supporting Iran’s Islamic Revolutionary Guard Corps by facilitating massive transaction flows. Zedcex alone reportedly processed more than $94 billion since 2022, highlighting the scale of activity involved.

The move also sheds light on Iran’s increasing reliance on crypto rails. Blockchain data suggests Iran’s central bank accumulated over $500 million in USDT to stabilize the collapsing rial, mimicking traditional monetary interventions on-chain.

By sanctioning these exchanges, the US aims to dismantle the digital infrastructure enabling sanctioned states to bypass global financial controls.

💡 Feature of the Day: 

Bitcoin Tests $77K [Source][Source][Source]

Bitcoin slid 7% to around $77,000, triggering more than $2 billion in liquidations and pushing market sentiment into fear territory.

The drop marks a 38% pullback from the October 2025 high of $126,100 and has reignited debate over where this cycle is headed. While the move rattled traders, some analysts see it as a typical late-cycle correction rather than a breakdown.

Bullish voices like PlanC argue this is the deepest pullback of the bull run and potentially a capitulation zone. Others are more cautious, with veterans like Peter Brandt warning of a possible dip toward $60,000 later in 2026.

With fear rising and support levels being tested, investors are now stuck between betting on a bottom or bracing for further downside.

😂 Crypto Meme of the Day: 

Meme of the day provided by @cryptomemebot

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com