Wallet Drains, Flow Fallout, DC Shake-Up, Token Drop

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Here’s what’s moving in crypto this Friday, January 2, 2026... A live wallet drain campaign quietly siphoning funds from hundreds of EVM wallets. Fallout from the Flow blockchain exploit that’s left NFT borrowers in limbo. A consequential personnel move in Washington as the new CFTC chair taps a bitcoin futures veteran as chief of staff. The Financial Times reports Iran is offering to accept crypto for ballistic missiles and drones — a major sanctions evasion twist. And Trump Media says it will airdrop a new token to DJT shareholders in partnership with Crypto.com. Let’s get into it.

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Story one — a coordinated wallet drain operation is hitting users across multiple EVM chains. On chain investigator ZachXBT flagged hundreds of wallets losing relatively small amounts — typically under two thousand dollars per victim — with total losses around one hundred seven thousand dollars and rising as of early today. He also highlighted a suspicious hub address that funds appear to be routing through. The root cause hasn’t been confirmed, which is why this one’s unnerving — it’s not tied to a single protocol exploit. If you’ve been active on Ethereum, BNB Chain, Base, Arbitrum, or other EVMs over the holidays, this is the moment to rotate keys and prune token approvals. Source: The Block.

Drilling down, early tallies showed roughly fifty four thousand dollars siphoned on Ethereum and about twenty five thousand on BNB Chain, with smaller amounts on Base, Polygon, Arbitrum, Optimism, and Avalanche. Investigators stress the attacker’s low noise tactic — skimming many small balances — helps avoid automated alerts. Again, causality isn’t pinned down... some watchers note the timing after last week’s Trust Wallet browser extension incident, but that link remains speculative. Stay vigilant, use hardware wallets where possible, and revoke dormant approvals. Source: Gate News.

Story two — the Flow exploit’s ripple effects are hammering NFT lending. After a December 27 security incident that prompted Flow to pause its Cadence execution environment until the morning of December 29, NFT backed loans on the Flowty platform started maturing while users couldn’t transact. Out of eleven loans that came due during the pause, eight defaulted, and two couldn’t settle due to account restrictions tied to the exploit. With token swaps still impaired across the ecosystem, Flowty suspended all settlements on December 30 at 2:15 p.m. Eastern — loans won’t repay or default... they’re effectively in limbo until functionality normalizes. It’s a textbook example of second order risk when a base chain pauses. Source: The Block.

There is progress: the Flow Foundation says it’s moved into phase two of recovery for what it pegs as a three point nine million dollar exploit, with developers restoring EVM functionality while continuing Cadence fixes and executing audited cleanup transactions under validator approved limits. But the episode shows how — even without direct user balance losses — a network halt can force unintended outcomes for borrowers and lenders, and may take days to unwind. Source: Cryptopolitan.

Story three heads to D.C., where personnel is policy. New CFTC Chair Michael S. Selig has appointed Amir Zaidi as his chief of staff. If that name rings a bell, Zaidi previously ran the CFTC’s Division of Market Oversight and oversaw the certification and launch of the first U.S. CFTC regulated bitcoin futures during the prior Trump administration. With Congress poised to advance digital asset market structure legislation that could expand the CFTC’s role beyond derivatives into spot oversight, slotting in a futures market veteran signals an intent to move fast on rulemaking and supervision. Source: CFTC.

Selig was sworn in on December 22, and has framed this era as one where the agency will craft commonsense rules of the road for new financial markets. For crypto, that could mean clearer paths for exchanges and token markets operating under CFTC oversight, more explicit guardrails for retail access to derivatives, and a tighter handshake with the SEC on jurisdictional lines. Watch this space — titles and org charts matter when the rulebook is evolving. Source: CFTC.

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Story four is geopolitical — and consequential. The Financial Times reports that Iran’s Ministry of Defence Export Center, known as Mindex, is openly offering to accept cryptocurrency — alongside barter or rials — for exports of advanced weapons, including ballistic missiles, drones, warships, and short range air defense systems. The FT says documentation and payment terms reviewed by its reporters confirm the crypto option, and notes the site hosting the program is on sanctioned Iranian infrastructure. This appears to be one of the first public, nation state level invitations to settle strategic arms in digital assets. Source: Financial Times.

The program reportedly touts relationships with thirty five countries and assurances that sanctions won’t impede delivery. Beyond the obvious foreign policy implications, the crypto angle matters: chain analytics make flows traceable, but mixers, cross chain hops, and nested accounts can slow attribution. Expect renewed pressure on global compliance controls — travel rule implementation, exchange KYC, and sanctions screening — for addresses tied to state sponsored procurement. U.S. and EU authorities will likely scrutinize any facilitators that touch these flows. Source: The Block.

And story five — Trump Media and Technology Group, the parent of Truth Social, plans to distribute a new digital token to DJT shareholders via a partnership with Crypto.com, with issuance expected on the Cronos blockchain. The company says eligible investors will receive one token per whole share, and that tokens are intended to function as utility or rewards instruments tied to Trump Media products. More program details will come this year. Shares rose around four to five percent on the announcement. Source: GlobeNewswire.

A few fine print items: the company signaled that tokens may not be transferable or exchangeable for cash, and won’t themselves represent ownership interests — language clearly designed to thread securities law needles as federal agencies roll out new frameworks in 2026. The move deepens ties between Trump Media and Crypto.com, following a prior deal that saw DJT acquire hundreds of millions of CRO tokens for staking and rewards integrations. Source: GlobeNewswire.

Quick recap... A stealthy wallet drain campaign is picking off small balances across EVM chains — check your approvals and rotate keys. The Flow exploit’s second order damage shows why chain halts can break DeFi contracts, even without direct balance losses. A crypto savvy chief of staff at the CFTC hints at faster policy moves. Iran’s willingness to accept crypto for weapons sales raises the stakes for sanctions compliance. And Trump Media’s planned token drop with Crypto.com adds a very twenty twenty six twist to shareholder perks. We’ll keep tracking these threads as they develop.

Thanks for listening and see you tommorow!