DLT LAW

Hey crypto crew!

Nik’s Crypto Corner is live! Sanctions smackdown on exchanges, India’s tax driving volume offshore, a Solana treasury heist, BTC ETF bleed pushing prices under $80K, and one firm staring down a $6B+ ETH paper loss. Quick hits below — let’s roll…

🇺🇸 U.S. Treasury Targets Crypto Exchanges in Iran Sanctions Push

→ In a landmark move, the U.S. Treasury's OFAC sanctioned UK-registered exchanges Zedcex and Zedxion for the first time, citing their role in processing billions in transactions linked to Iran's financial sector and IRGC networks (this, just days after the EU designates the IRGC as a terrorist organization...finally!). This escalation underscores regulators' growing focus on crypto as a potential sanctions-evasion vector - take note: compliance tooling just got more essential.

🇮🇳 India's Tax Squeeze Sends Crypto Volume Offshore

→ With a 30% flat tax on gains, no loss offsets, and the 1% TDS still in place, India’s crypto scene reports that roughly three-quarters of trading has migrated to offshore platforms. As the Union Budget approaches, industry voices are pressing for tweaks to revive domestic liquidity and bring activity back under local oversight.

🔓 Step Finance Treasury Hit Hard in Solana DeFi Breach

→ Solana DeFi dashboard Step Finance revealed a treasury compromise, with attackers moving around $27 million in SOL from compromised wallets - now under investigation. The governance token STEP plunged over 80% in a day, serving as a stark reminder of the persistent vulnerabilities in protocol treasury management.

📉 Bitcoin Dips Below $80K Amid Heavy ETF Outflows

→ U.S. spot Bitcoin ETFs saw about $1.6 billion in net outflows during January, capped by a major single-day redemption. Institutional risk-off moves contributed to BTC breaking below $80,000 for the first time since April 2025, amid ongoing broader market turbulence.

💸 BitMine's ETH Treasury Takes a $6B+ Paper Hit

→ Publicly traded BitMine Immersion Technologies now faces over $6 billion in unrealized losses on its 4.24 million ETH holdings following Ether's recent drop. Fresh purchases just before the slide have intensified debate on the wisdom of large-scale corporate crypto treasuries in volatile, deleveraging conditions - staking yields help, but only so much.

Buckle up — busy weeks ahead across regulation, flows, and protocol defenses.

Got questions, want to dive into the implications, or just grab a virtual coffee? Ping the DLT Law team anytime!

*** As always, crypto moves at warp speed while regulators move at their own pace. These updates reflect publicly available information as of Februray 01, 2026 and do not constitute legal or financial advice.

Congratulations to our client WonderFi on its acquisition by Robinhood!

This is a major milestone for one of Canada’s leading digital asset platforms.

We’re proud to be part of the journey.

https://www.tradingview.com/news/financemagnates:d0870a88b094b:0-robinhood-to-acquire-canada-s-wonderfi-for-c-250-million-in-all-cash-deal/

&A

Tomorrow (May 8), DLT Law brings CryptoConnect Limassol to life — and you won’t want to miss it! 🚀 Our powerhouse panel, moderated by our very own Yitzy Hammer, will dive into the hottest topics in crypto regulation and innovation:

🔜 Stavros "Stav" Psyllos, CCO at Cryptopay and Founder of Cyprus Fintech Society;
🔜Lior Aizik, Co-founder & COO of XBO.com;
🔜Yiannos Ashiotis, Managing Partner, GRC Partners
Board Chairman, Revolut Digital Assets;
🔜George Agathangelou, COO at IPMB;

Join us for an evening of sharp insights, great conversations, and valuable connections.

See you there! 🔗 https://lu.ma/7xezb99l (we're waaaay oversubscribed, but you can join the waitlist).

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