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Good Morning Crypto Enthusiasts!

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

1. Bhutan Adopts Ethereum ID: Bhutan has migrated its national digital ID system, covering 800,000 citizens, from Polygon to Ethereum, citing stronger decentralization and zero-knowledge privacy.

2. Tether Settles Celsius Dispute: Tether will pay $299.5M to the Celsius bankruptcy estate over 2022 collateral disputes. The deal, a fraction of Celsius’s $4B claim, signals growing accountability for stablecoin issuers.

3. Binance Launches $400M Relief: Binance unveiled a $400M relief fund to aid users hit by $19B in leveraged losses during the latest market crash.

4. 💡Feature of the Day - Paxos Burns $300T PYUSD: Paxos accidentally minted 300 trillion PYUSD tokens before burning them 22 minutes later due to an internal error. The glitch briefly froze Aave’s PYUSD trades but caused no losses.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Bhutan Adopts Ethereum ID [Source][Source][Source][Source]

Bhutan has officially migrated its national digital identity system, covering nearly 800,000 citizens, from Polygon to the Ethereum blockchain. The decision marks a major leap in blockchain adoption for national infrastructure, emphasizing Ethereum’s immutability, decentralization, and privacy via zero-knowledge proofs.

This is Bhutan’s third upgrade, having previously used Hyperledger Indy and Polygon. The integration was hailed by Ethereum Foundation President Aya Miyaguchi as a “world-first,” proving how smaller nations can lead in technological innovation.

Beyond identity modernization, Bhutan is also emerging as a crypto powerhouse. The country is now the fifth-largest government Bitcoin holder, amassing over 11,000 BTC worth $1.3 billion through sustainable mining powered by hydropower.

The national ID transition cements Bhutan’s reputation as a blockchain-forward nation, combining clean energy, crypto investment, and decentralized infrastructure to drive a more transparent digital future.

Tether Settles Celsius Case [Source][Source][Source][Source]

Tether has agreed to pay $299.5 million to the Celsius Network bankruptcy estate, resolving a dispute over Bitcoin collateral liquidations from Celsius’s 2022 collapse. The settlement, facilitated by the Blockchain Recovery Investment Consortium (BRIC), represents a fraction of Celsius’s original $4 billion claim but stands as a landmark legal moment.

Celsius accused Tether of prematurely selling nearly 40,000 BTC used as collateral, worsening its insolvency. The recovery will go toward compensating Celsius’s creditors, marking a win for BRIC’s ongoing recovery mission.

The case redefines the legal perception of stablecoin issuer liability. By paying such a large sum, Tether indirectly acknowledges accountability within distressed lending markets, something stablecoin firms have long avoided.

Analysts suggest this precedent could reshape future crypto bankruptcies and regulatory frameworks governing stablecoin operations. The settlement also closes one of the darkest chapters of the 2022 crypto crash that toppled Celsius, BlockFi, Voyager, and FTX.

Binance Unveils $400M Relief [Source][Source][Source][Source]

Binance has launched a $400 million relief program to support traders hit hard by the recent market crash, which wiped out over $19 billion in leveraged positions in a single day.

The initiative includes $300 million in token vouchers and a $100 million loan fund for users whose forced liquidations exceeded 30% of their holdings between October 10–11, 2025. Binance said the program aims to “rebuild confidence,” though it denies liability for user losses tied to technical glitches during the sell-off.

The relief effort extends Binance’s total market recovery support to $728 million, including a $45 million BNB Chain airdrop for memecoin traders. While praised by some for quick action, others view it as an attempt to deflect accountability.

Still, this massive voluntary payout reinforces Binance’s role as the industry’s de facto stabilizer, setting new expectations for centralized exchanges to assist users during volatile downturns.

💡 Feature of the Day: 

Paxos Burns 300T PYUSD [Source][Source][Source][Source]

Stablecoin issuer Paxos accidentally minted a staggering 300 trillion PayPal USD (PYUSD) tokens, worth over $300 trillion, before burning them 22 minutes later.

The incident, caused by an internal technical error, briefly alarmed the crypto community and triggered a temporary freeze on PYUSD trades by DeFi protocol Aave. Paxos quickly confirmed there was “no security breach” and that user funds were safe, noting that the issue stemmed from an internal transfer mistake.

Despite the astronomical scale of the error, PYUSD maintained its 1:1 peg to the dollar, reflecting strong system stability and a swift crisis response.

The episode, though short-lived, highlights the sensitivity of blockchain ecosystems to automated minting errors and the importance of robust internal checks. Paxos’s transparency helped restore confidence within hours, avoiding potential contagion across DeFi markets.

😂 Crypto Meme of the Day: 

Meme of the day provided by @kairo8080

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com