"It's just complete balance sheet mismanagement"
Jeff Dorman on why Strategy is being forced to sell Bitcoin
"The market was worried they weren't gonna be able to satisfy the dividend. So they raised about $2 billion and said now you don't have to worry for a year and a half because we have this $2 billion sitting on the balance sheet solely to pay dividends. Everyone breathes a sigh of relief"
"Then a month later he takes 1.4 billion of that cash cushion and buys back some of his convertible debt at 92 cents on the dollar, completely the opposite of what he said the cash was for. He retired 2029 maturity debt, which doesn't come due for three more years"
"Now that one and a half year cash cushion suddenly fell to four months. He comes out on Monday and says we're actually gonna sell some Bitcoin. It's teasing the market that that's the only choice he has now. That's why Bitcoin's imploding, that's why the stock is imploding"
.@CryptoHayes on why Zcash is his second biggest bag:
"Big tech, big government, AI, they will know everything about us. Cryptographic privacy with money is super needed. That's why Zcash is my second biggest bag."
Surveillance is the default. Zcash is the exit.
JUST IN: FOX NEWS JUST SAID THE UNITED STATES COULD SEIZE AND HOLD IRAN'S #BITCOIN
TRUMP URGED TO "SEIZE THE AYATOLLAH'S CRYPTO"
BTC WOULD FUND THE STRATEGIC RESERVE
GAME THEORY IS PLAYING OUT ๐
This morning, THORChain was drained of roughly $10.8m
Node operators have freezed the network for nearly 13 hours. The full analysis isn't out yet, but according to @jpthor, this could be a MPC exploit.
ECDSA and TSS is hard. THORChain's vaults rely on TSS, a flavor of MPC where a quorum of nodes jointly produces a signature without ever reconstructing the private key. Clean for Schnorr or EdDSA; painful for ECDSA, which Bitcoin and Ethereum require. That's why we saw plenty of protocol attempts (Lindell17, GG18, GG20, CMP, CGGMP21, DKLS, KU23...), each patching flaws in the previous one.
GG20 has a track record. THORChain's TSS uses GG20, on a fork of Binance's tss-lib. GG20 has shipped two well-publicized critical bugs: CVE-2023-33241 and TSSHOCK. CGGMP21, now cggmp24, are the latest protocols, but GG20 is still widely deployed.
I often hear a misconception when I hear about MPC setup: "The key is split across many nodes, so any single co-signer doesn't really matter".
In every published GG18/GG20 attack, one malicious or compromised co-signer is enough to extract everyone else's shard and reconstruct the full key.
AI changes the threat model. Compromising a full software node, complex Go stack, exposed P2P, custom signing daemons, a churn protocol that admits new participants on a schedule, has always been difficult and acted as a barrier. With LLM-driven vulnerability discovery and exploit synthesis, the bar to compromise one of N validators is dropping fast.
Here, it's a plausible TSSHOCK-style playbook:
- compromise one operator
- wait for it to churn into an active Asgard vault
- send malformed proofs during keygen or signing
- reconstruct the key offline
- sweep in a single transaction
It's unclear yet if the attacker used a known-unpatched GG20 weakness, or a fresh cryptographic flaw.
But, in all cases, MPC and TSS are not a substitute for hardening every co-signer. They sit on top of co-signers that must each be treated as critical infrastructure, hardware-isolated enclaves, minimally exposed, continuously audited, and running protocol with security proofs.
While the investigation progresses, be careful in your interactions onchain. These TSS setup are used in various protocols.
I have BAD NEWS for the perma bulls.
BTC is still strengthening its bear trend.
Volatility is a key metric used by quants to detect trends.
BTC entered its bear market when vol spiked upwards quickly. Vol then continues to climb, meaning the bear trend is strengthening. Then vol finds a peak in the mid to late phase bear market... that's when the bear trend starts to weaken.
We usually see a second or third smaller peak at the macro bottom, these peaks reflect capitulation.
17 years after the white paper, the Bitcoin network is still operational and more resilient than ever. Bitcoin never shuts down.
@SenateDems could learn something from that.
Hey @nayibbukele, as one of many fathers of a ''special needs" child, maybe you should consider someone else to represent Bitcoin in El Salvador. We are behind you, but this guy is off his meds and will end up diminishing your legacy.