Network News
LEDGER FACES CUSTOMER DATA BREACH: Hardware wallet giant Ledger is dealing with a data exposure incident, this time linked to its third-party payment processor, Global-e. An email notification sent to clients by Global-e and initially shared by pseudonymous blockchain sleuth ZachXBT on X said the breach involved unauthorized access to Ledger users’ personal data, such as names and contact information, from Global-e’s cloud system. The email did not reveal the number of customers affected or specify when the exploit occurred. In 2020, Ledger experienced a data breach that exposed information on 270,000 customers through its e-commerce partner Shopify. In 2023, Ledger was hacked for nearly $500,000, affecting several decentralized finance applications. Global-e said it detected unusual activity and quickly implemented controls while launching an investigation, which verified inappropriate access. “We engaged independent forensic experts to conduct an investigation into the incident and were able to determine that some personal data, including name and contact information, was improperly accessed,” he said in the email. — Omkar Godbole Read more.
STARKNET IS DOWN FOR A FEW HOURS: Starknet said service was fully restored after a four-hour outage, adding that some transactions sent during a limited period may not have been processed correctly. “Starknet is back online and fully operational,” the team behind the layer 2 Ethereum network posted on Downtime can have knock-on effects on decentralized finance and other on-chain applications, including stalled exchanges, delayed withdrawals, and difficulties updating positions. It may also disrupt sequencer-based networks, where transaction ordering and block production depend on a smaller set of operators than Ethereum itself. — Margaux Nijkerk Read more.
VITALIK BUTERIN’S TWO GOALS FOR ETHEREUM: Ethereum co-founder Vitalik Buterin used a New Year’s message on Thursday to reflect on a year of significant technical advances and to argue that the network’s true test lies in fulfilling its original mission, not chasing the latest crypto narratives. In his New Year’s post on He pointed to improvements that allow the network to process more activity, reduce bottlenecks and make it easier for people to run the software that keeps Ethereum operational. Taken together, he said, those changes bring the blockchain closer to becoming a new type of shared computing platform rather than just another blockchain. But Buterin made it clear that technical milestones alone are not the end goal. “Ethereum needs to do more to achieve its own stated goals,” he wrote, warning against what he described as efforts to “win the next meta,” whether through tokenized dollars, political memecoins, or attempts to artificially boost use of the network for economic signaling. Instead, Buterin returned to a long-held vision of Ethereum as a “world computer”: a neutral, shared platform for applications that can operate without relying on centralized intermediaries. That vision, he writes, focuses on apps designed to work without fraud, censorship or third-party control, even if their original developers disappear. Buterin pointed to the “retirement test” — the idea that systems should continue to function regardless of who maintains them — as a critical benchmark. He also emphasized resilience, arguing that users should not notice if major infrastructure providers go offline or are compromised. — Siamak Masnavi Read more.
ETH BET QUEUES CLEAN UP: Ethereum staking queues have emptied and the network can now absorb new validators and exits in near real-time. This means that the rush to lock up ETH has faded for now and bets are settling into a steady state rather than a scarcity trade. Queues are simply the time spent starting or stopping staking on the Ethereum network, and act as a sentiment indicator and measure of liquidity. In a sense, the lack of queues is a feature, not a bug, as they are proof that Ethereum can handle staking flows without locking up liquidity for weeks. At the same time, staking rewards have compressed towards 3% as total ETH staked grew faster than issuance and fee revenue, limiting incentives for further increases in either direction and leaving tails close to zero even as overall staking participation remains high. Lower performance may reflect crowding, but also a higher “trust premium”: more and more ETH are choosing to participate in staking rather than trading order books. What this means is that the “pressure to gamble” is no longer a daily narrative. When queues are long, the ETH supply is effectively blocked faster than the network can onboard validators, and that can create a feeling of scarcity. When the queues approach zero, the system is closer to being neutral. People can bet or undo without waiting weeks, making betting feel less like a one-way door and more like a liquid allocation. This changes the psychology around ether trading. — Shaurya Malwa and Sam Reynolds Read more.
In other news
- Morgan Stanley (MS) delved deeper into cryptocurrencies and filed a registration statement for an Ethereum trust with the US Securities and Exchange Commission (SEC). The move follows filings for bitcoin and solana exchange-traded funds (ETFs), which followed a rapid expansion of crypto ETFs in the US over the past two years. Morgan Stanley’s expanding path into cryptocurrencies demonstrates a broader trend among traditional financial institutions (TradFi), which are increasingly looking to offer digital asset products through familiar and regulated vehicles. — Oliver Caballero Read more.
- Strategy (MSTR) shares rose nearly 6% in post-market trading Tuesday after MSCI said it would not move forward, for now, with plans to exclude digital asset treasury companies from its indices. The move relieves immediate pressure on companies like Strategy, which hold large amounts of bitcoin on their balance sheets but do not operate directly in the blockchain sector. A formal exclusion from MSCI indices could have pushed institutional investors to divest, reducing demand for shares. Still, analysts say this development may not be the end of the story. “Consistent with what we have written previously, we are surprised by this clearly positive development,” wrote TD Cowen’s Lance Vitanza. “What remains to be seen is whether this represents a victory for the defense or simply a stay of execution.” Vitanza rates MSTR stock a Buy with a $500 price target, according to FactSet data. — Helene Braun and Will Canny Read more.
Regulation and policy
- The US Senate Banking Committee is getting closer to reaching an agreement on a bipartisan bill on crypto market structure, with a vote next week, its chairman said, as industry experts prepare for an attack on the Senate offices on Thursday. Republicans on the committee are showing confidence that the finish line is near for lengthy negotiations over a bill to establish regulated crypto markets in the U.S. However, Democratic negotiators have generally not weighed in on the rapid timeline that committee Chairman Tim Scott said will conclude with a margin hearing on Jan. 15. A document that emerged from the meeting, first reported by Politico, shows that while major sticking points still remain between the parties, numerous Democratic requests have been incorporated. Many of the key issues Democrats had with the market structure bill as early as last spring, when lawmakers were negotiating stablecoin legislation, still appear to be under discussion, including ethics, how performance is treated, how money transmitters are addressed, the U.S. Treasury Department’s role in policing cryptocurrencies, and protecting developers. jesse hamilton Read more.
- Mindex, the export hub of Iran’s Defense Ministry, accepts cryptocurrency payments for advanced weapons systems as a means of circumventing international sanctions facing the country. Potential customers can purchase weapons such as missiles, tanks and drones using cryptocurrency, among other accepted payment methods, including Iranian rials or barter, according to the center’s website. Mindex is responsible for Iran’s defense sales abroad and claims to have customers in 35 countries. Prices are not shown for available items. The offer is one of the first known cases of a country accepting cryptocurrency as a means of payment for military equipment, according to the Financial Times, which reported the news earlier. — Jamie Crawley Read more.
Calendar
- February 10-12, 2026: Consensus, Hong Kong
- February 17-21, 2026: EthDenver, Denver
- From March 30 to April 30. 2, 2026: EthCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami
- November 3-6, 2026: Devcon, Mumbai
