Pavel Durov faces terrorism charges in Russia while Coldcard wallet thefts lead to $89 million losses.
Pavel Durov, the founder of Telegram, faces serious allegations in Russia as authorities accuse him of aiding terrorism. In a separate incident, users of Coldcard wallets reported significant Bitcoin theft, with losses estimated at $89 million.
Bitcoin Experiences Decline
Bitcoin started the week on a positive note, briefly surpassing $65,000, but ended up falling below $63,000 due to ongoing geopolitical uncertainties and weak demand. The U.S. Federal Reserve's decision to maintain interest rates at 3.5-3.75% had little effect on Bitcoin's price, which settled around $64,000 following the announcement.
By week's end, Bitcoin's value had decreased by 2.2%, while the total cryptocurrency market cap shrank from $2.21 trillion to $2.17 trillion. Bitcoin's dominance remained steady at 58.5% amid a bearish environment for most altcoins. Spot Bitcoin ETFs saw outflows of $61.5 million, marking a significant shift in investor sentiment.
Durov Under Investigation for Terrorism
The Russian Federal Security Service (FSB) has charged Durov with aiding terrorism, alleging that Telegram did not comply with requests to remove channels linked to Ukrainian special services. The charges, which fall under Article 205.1 of the Russian Criminal Code, could lead to a prison sentence of 8 to 15 years or even life imprisonment. Shortly after the charges were announced, Durov was added to Russia's list of terrorists and extremists.
Durov, who left Russia in 2014, holds multiple passports and has faced scrutiny over alleged support for terrorist activities involving Telegram.
Coldcard Wallet Theft Reported
On July 31, around 500 Coldcard wallet owners reported the theft of 594.48 BTC, valued at approximately $38.2 million. Further investigations revealed that the total losses from these attacks amounted to 1,367 BTC, or about $89 million. Coinkite, the company behind Coldcard, acknowledged vulnerabilities in the wallet's firmware and urged users to update their devices.
The CEO of Coinkite, Rodolfo Novak, took responsibility for the firmware error and suggested that the attack may have involved AI exploitation.
Stablecoin Market Sees First Decline in Four Years
The stablecoin market experienced its first significant decline in four years, with total market capitalization dropping by over $10 billion to around $310 billion as of July 28. This decline is attributed to regulatory changes that have restricted issuers from offering interest on payment stablecoins, leading investors to seek alternative yield-bearing products.
Despite the shrinking market cap, transaction volumes for June 2026 reached a historic high, indicating a complex relationship between market capitalization and trading activity.
Quantum Threat Mitigation for Crypto Wallets Proposed
AmericanFortress introduced a new cryptographic scheme, ZKPoSP, designed to protect crypto wallets against potential quantum attacks. This innovative approach aims to maintain existing address formats while implementing quantum-resistant signatures, reflecting the ongoing evolution in cryptocurrency security.
