Here’s what happened in crypto today

Today in crypto, Bitcoin surged above $86,000 as oil prices retreated and US stocks rallied, the European Central Bank launched a system for settling tokenized assets in central bank money and authorities linked North Korean hackers to a fake-recruiter campaign that stole at least $10.7 million in crypto.

Bitcoin surges to eight-month high in post-CLARITY rally

Bitcoin surged above $86,000 on Monday for the first time since late January, extending a rally that accelerated after last week’s failed CLARITY Act vote as falling oil prices and rising US stocks added momentum.

Bitcoin reached a 33-week high above $86,500 on Bitstamp, gaining more than 6% on the day after closing the previous week at $81,120, its highest weekly close since early May. The rally also triggered nearly $800 million in crypto short liquidations over 24 hours.

The move came as WTI crude fell below $92 per barrel. Signals from Qatar’s Foreign Ministry and US President Donald Trump that negotiations to end the US-Iran war could resume helped send oil as low as $91.59 on Monday. Middle East oil flows have also remained stronger than expected despite disruptions to Saudi Arabia’s East-West pipeline.

Risk assets rose alongside Bitcoin. The S&P 500 gained 1.6%, while the Nasdaq Composite climbed 2.4%. Markets also reacted positively to a New York Times report that the US could extend its trade deal with China by six months ahead of Chinese President Xi Jinping’s visit this week.

ECB launches Pontes to settle tokenized assets without stablecoins

The ECB launched Pontes, a system that allows financial institutions to settle wholesale tokenized asset transactions in central bank money, providing an alternative to private settlement assets such as stablecoins.

The ECB announced Pontes’ launch on Monday as part of the Eurosystem’s strategy for tokenized finance. The system initially offers a core set of services, with full implementation expected by 2028.

Tokenization represents assets as digital tokens, typically on distributed ledger technology (DLT) networks. The ECB said it could make wholesale transactions faster and more efficient by combining issuance, trading, settlement, custody and servicing on a single platform while enabling automation through smart contracts.

“Pontes brings the stability and trust of central bank money to the European tokenised finance ecosystem,” ECB Executive Board member Piero Cipollone said. “It will give an important advantage to help it scale.”

Pontes builds on the Eurosystem’s 2024 tests of settling DLT-based transactions in central bank money. The ECB said participants identified access to a risk-free settlement asset as crucial for wider adoption of tokenized finance.

North Korean fake recruiters infect 30K devices, steal $10.7M in crypto

North Korean hacking group WaterPlum stole at least $10.7 million by posing as recruiters for legitimate crypto and AI companies, attacking unsuspecting job seekers with malware. 

The group, also known as Contagious Interview, targets software developers and IT professionals worldwide, according to a joint advisory from Japan, Germany, Australia and the US. Authorities said the fake recruiters impersonated legitimate AI, cryptocurrency or non-fungible token (NFT) companies and also used recruiting services.

“The primary targets were individual web designers, engineers, and specialists in cryptocurrency, blockchain, and Web3 technologies,” they added. 

The advisory also links WaterPlum to North Korea’s broader campaign of placing IT workers inside foreign companies, with Japanese and US authorities assessing that WaterPlum actors and some North Korean IT workers operate under North Korea’s Munitions Industry Department. 

According to the advisory, WaterPlum lured job seekers through social media platforms, online job platforms, gig work platforms or freelance marketplaces. During the recruitment process, victims were instructed to download and execute malicious files disguised as coding assignments or fixes for video-conferencing errors.