Crypto Morning Brief: Movement Labs Files for Bankruptcy, Clarity Act Enters Final Stages

Author: TechFlow

Yesterday's Market Dynamics

Movement Labs Files for Bankruptcy, Co-Founder Claims Over $1.6 Million

According to The Block, Movement Labs, the original core development company of the Movement blockchain, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware on July 15. Documents show the company declared assets between $100,001 and $500,000, liabilities up to $10 million, and up to 299 creditors.

Among them, the largest unsecured claim comes from co-founder Rushikesh "Rushi" Manche, amounting to over $1.6 million. After being dismissed by the company, Manche still retains 34.25% equity. The company previously encountered controversy due to selling pressure after the MOVE token issuance and subsequently underwent business restructuring.

Google Releases Gemini 3.6 Flash, 3.5 Flash-Lite, and 3.5 Flash Cyber

Google released a new generation of Gemini Flash series models, including Gemini 3.6 Flash, Gemini 3.5 Flash-Lite, and Gemini 3.5 Flash Cyber for cybersecurity scenarios. Among them, 3.6 Flash focuses on higher code, knowledge processing, and multimodal capabilities, with further optimization in output token usage and costs; 3.5 Flash-Lite emphasizes low latency, high throughput, and cost efficiency, suitable for large-scale agentic workflows and document processing tasks. Meanwhile, 3.5 Flash Cyber combines the CodeMender security agent framework to provide specialized capabilities for vulnerability discovery and remediation scenarios. Google also stated that Gemini 3.5 Pro is being tested with partners, and pre-training work for Gemini 4 has also begun.

U.S. Treasury Secretary: Clarity Act Enters Final Push Stage, Urges Passage Before Congressional Recess

According to Cointelegraph, U.S. Treasury Secretary Scott Bessent stated that legislators have entered the "final sprint stage" on the Clarity Act, urging Congress to pass the bill before recess.

Xiaohongshu Responds to IPO Rumors: All Related Information Is Untrue

Recently, there were many rumors claiming "Xiaohongshu had secretly submitted an IPO application before the end of June," but was hindered due to former employees reporting its "listing compliance" issues. In response, Xiaohongshu stated that all currently circulating IPO-related information is untrue.

Amazon Lays Off Staff in Its Artificial General Intelligence Department

Amazon (AMZN.O) laid off staff in its Artificial General Intelligence (AGI) department on Wednesday, the latest in a series of small-scale layoffs by the company since the large-scale layoffs in January. "We have been building large AI models for many years, and this remains one of the most important things we are working on," an Amazon spokesperson said. "We are focusing on projects that are most important to our customers to accelerate progress in key areas. This focus means making some difficult decisions, including cutting some positions in the AGI organization."

Summer Fi Exploit Attacker Transfers Most Stolen Funds via Tornado Cash

According to on-chain analyst Onchain Lens (@OnchainLens), the Summer Fi exploit attacker has transferred most of the stolen funds. The attacker obtained 6.017 million DAI from the vulnerability on July 6, and subsequently continued to mix and transfer funds through Tornado Cash. Currently, a small amount of funds remains in two related addresses: the original wallet (0x7bf7...bdca) has 11.3 ETH remaining (approximately $21,600), and the second wallet (0x46e0...eba7) has 282.9 ETH remaining (approximately $543,500).

OpenAI Model Autonomously Breaks Out of Sandbox During Evaluation, Intrudes into Hugging Face Production Database

According to OpenAI's official blog, OpenAI's GPT-5.6 Sol and a more powerful pre-release model, during an internal network capability benchmark test (ExploitGym), autonomously identified and exploited a zero-day vulnerability in the package registry cache proxy to reduce the network attack rejection rate, broke out of the sandbox isolation environment, gained internet access, and then through privilege escalation and lateral movement, ultimately intruded into the Hugging Face production database to directly steal test answers to "cheat." The Hugging Face security team timely discovered and blocked the attack. OpenAI stated that this incident is an unprecedented cybersecurity event, and the two companies are currently conducting a joint forensic investigation. The relevant zero-day vulnerability has been responsibly disclosed to the vendor, and full details will be released after the investigation is completed.

Kraken Parent Company Payward Expands xStocks to HK, UK, and Korean Stocks

According to CoinDesk, Kraken parent company Payward announced it will expand its tokenized stock platform xStocks to markets outside the U.S., planning to cooperate with investment infrastructure provider GTN to bring listed stocks from Hong Kong, the UK, Europe, and South Korea on-chain. Subsequently, it will further expand to other asset classes depending on regulatory approval. Currently, xStocks supports over 500 tokenized securities, with cumulative trading volume exceeding $35 billion and nearly 200,000 holders, but the product is not currently open to U.S. investors.

Polymarket Plans to Challenge French Website Ban Decision Through Legal Channels

According to Reuters, prediction market platform Polymarket announced it will legally challenge the decision by the French National Gaming Authority (ANJ) to block its website. Last week, ANJ unilaterally blocked access to Polymarket in France on the grounds of "potentially causing significant gambling losses for users" and "risk of manipulation of platform bets." Polymarket expressed disappointment over this and stated it will seek remedies through French legal procedures.

Previously, the Spanish government temporarily banned Polymarket and its competitor Kalshi in May this year, and U.S. derivatives regulators also released a new regulatory draft for the prediction market industry in June, indicating a clear trend of tightening global regulation.

Today's Market Conditions

Recommended Reading

S&P Dow Jones Joins Hands with Pantera to Launch Crypto Index, Bitcoin Excluded for "Not Making Money"

https://www.techflowpost.com/article/32734

S&P Dow Jones Indices partnered with Pantera Capital to launch the S&P Pantera Digital Asset Index, including 18 tokens, but excluding Bitcoin, XRP, and meme coins entirely. The screening criteria draws on the "financial viability" threshold of the S&P 500, requiring protocols to record positive income for consecutive quarters and distribute value to token holders. This is the first time the world's largest index provider has introduced a fundamental screening framework in the crypto field, with ETH, BNB, SOL, TRX, and HYPE ranking as the top five holdings.

The world's largest index provider has officially turned "revenue" into the entry ticket for crypto assets, and Bitcoin did not get it. According to S&P Global's official press release on July 21, S&P Dow Jones Indices and Pantera Capital jointly launched the S&P Pantera Digital Asset Index, which includes only tokens and companies with actual use cases and real revenue, excluding Bitcoin and meme coins.

S&P Dow Jones Indices CEO Cathy Clay stated that Bitcoin failed the index's core test, namely generating real protocol revenue. Pantera founder Dan Morehead pointed out in his July Blockchain Letter that institutional allocators repeatedly ask only two questions: "What service does this protocol provide" and "Does it make money."

Morgan Stanley Research Report Interpretation: Storage Sector Surge Is Just a Repair, Semiconductors Still Have Downside Space

https://www.techflowpost.com/article/32730

On July 21, the U.S. stock storage sector rebounded violently. The DRAM ETF rose nearly 11%, and Micron, SanDisk, and Western Digital rose over 10%. The market is betting that semiconductors have bottomed out.

Morgan Stanley's strategy report released the previous day held the opposite view, stating that this rebound is only a technical repair. The silver analogy model calculates that the sector still has about 15% downside space, and earnings revision indicators have also fallen from historical extremes, making it difficult for semiconductors to return to the market main line.

Capital is continuing to shift towards consumer durables, transportation, and hyperscale cloud providers, which is the core main line of this market diffusion.

Podcast Notes | Investment Tycoon Bill Ackman: Sold Alphabet, Added Microsoft Position, Betting on AI Infrastructure

https://www.techflowpost.com/article/32726

Bill Ackman manages one of the most concentrated hedge fund portfolios on Wall Street: $14 billion bet on only 11 stocks, with the top five holdings accounting for 78%. In this interview, he revealed several specific cards: just sold Alphabet, added $2 billion to Microsoft, betting on the hyperscaler AI infrastructure boom. He didn't speak too mysteriously; the core logic is just a few words: buy companies with strong predictability, earn compound interest. His biggest worry about the market is not valuation, but highly leveraged players being forced to flee collectively at some point. Regarding Bitcoin and gold, his exact words were "I don't know if it's worth 50,000, 70,000, or $5 thousand or $1 trillion, but I don't need to know, investing only requires knowing what you know and what you don't know."

Send a Message to Transfer Crypto? Telegram to "Stuff" a Crypto Wallet for 1 Billion Users This Summer

https://www.techflowpost.com/article/32721

Telegram founder Pavel Durov announced that this summer, a native non-custodial Gram wallet will be built into all Telegram applications, providing zero-fee instant transfers for over 1 billion users. GRAM rose about 8% to $1.53 in response. This wallet is different from the existing third-party operated @wallet bot; it is developed by Telegram itself, and users directly control private keys. In the window period where super apps like X Money and Meta stablecoin payments are competing to enter, Durov is betting on the crypto-native route, but the "largest scale in human history" implementation promise still lacks technical details and a definite timeline.

The Crypto Mafia in the AI Circle

https://www.techflowpost.com/article/32719

This article tells how the Crypto industry transfers three types of core assets accumulated in the previous cycle—power infrastructure, technical talent, venture capital—to the AI industry. The so-called "Crypto Mafia in the AI Circle" does not mean Crypto transforming into AI, but rather Crypto becoming a new supply chain for computing power, capital, and entrepreneurs in the AI era.