Digital asset market update — 8 September 2026
Reporting the 24 hours to 06:00 Europe/London · 314 words · Prepared by 01 Capital
The Liquid Network, a bitcoin sidechain used by exchanges, experienced a significant security exploit that initially led to the loss of $320 million worth of bitcoin (CoinDesk, Bloomberg). Whitehat hackers later returned 3,400 BTC, but approximately $47 million (nearly 600 BTC) remains outstanding, with talks underway for its recovery (CoinDesk, The Block). This incident highlights persistent security risks within digital asset infrastructure. Simultaneously, another cold storage exploit saw $7.7 million in BTC moved by an attacker targeting Coldcard vaults, representing 45% of funds stolen in the third wave of these attacks (CoinDesk, The Block).
In banking innovation, DBS and Citi completed the first weekend cross-border USD settlement between Singapore and the U.S. using tokenized deposits. This transaction, utilizing Swift's Digital Ledger, marks a live use case for blockchain in traditional finance and signals an ongoing push to modernize payment rails that traditionally close on weekends (The Block, CoinDesk). Separately, South Korea’s Hanwha is developing a tokenized securities platform on Avalanche, aligning with upcoming regulatory changes in the country that integrate tokenized securities into the existing financial system (The Block).
Ethereum announced plans for its Hegotá upgrade to achieve full post-quantum security by 2029, starting with account abstraction and censorship resistance (The Block). A key feature, Frame Transactions, will also allow users to pay gas fees without holding ETH, addressing a significant user experience barrier (CoinDesk). On the market front, spot bitcoin ETFs saw substantial inflows, pulling in $987 million last week and $3.52 billion in August, marking their largest monthly positive flows since September 2025, indicating recovering institutional demand (The Block). However, Bitcoin price action showed volatility, dipping below $79,000 as Fed rate hike odds climbed to 60% following the latest jobs report, while some analysts noted a disconnect between market reaction and actual Fed hike probabilities (CoinDesk, The Block).
Institutional participants will closely monitor ongoing recovery efforts for the remaining Liquid Network funds.
How 01 Capital reads this
01 Capital is a research and intelligence firm specialising in the structures, behaviours and economics unique to digital assets. We provide valuation intelligence, tokenisation, transaction support and strategic and board advisory to institutions, asset managers, corporate treasuries and advisers.
Sources
- CoinDesk — Bitcoin network used by exchanges hit by $320 million exploit. Hackers claim they're the 'good guys'
- Bloomberg — Bitcoin Hack Drains $320 Million From Crypto Network
- CoinDesk — Liquid Network gets back 3,400 bitcoin from whitehat hackers; talks underway for the rest
- The Block — Liquid Network attacker returns 3,400 BTC after bug fix, retains nearly 600 BTC
- CoinDesk — Coldcard hacker moves $7.7 million in BTC, 45% of bitcoin stolen in third attack wave
- The Block — Coldcard exploiter moves 45% of funds stolen from ‘Wave 3’ attacks, Galaxy says
- The Block — DBS, Citi say they completed first weekend USD payment between Singapore and US via tokenized deposits
- CoinDesk — DBS and Citi complete weekend USD payment via Swift’s Digital Ledger using tokenized deposits
- The Block — South Korea’s Hanwha develops tokenized securities platform on Avalanche as local regulation takes shape: report
- The Block — Ethereum aims for quantum-safe L1 by 2029 as Hegotá upgrade takes form
- CoinDesk — Ethereum commits to letting users pay gas fees without having to hold ETH
- The Block — Spot bitcoin ETFs pull in $987 million last week as institutional demand recovers
- CoinDesk — Bitcoin slips under $79,000, Zcash leads losses as Fed hike odds hold near 60%
- The Block — Bitcoin holds near $80,000 despite renewed Fed rate hike fears as CPI test looms
- CoinDesk — No, Friday's jobs report hasn't materially boosted Fed rate hike odds
Recent market updates
This market update is provided for information only. It is not investment, legal or regulatory advice. 01 Capital is not authorised or regulated by the Financial Conduct Authority.