Together with
Greetings Bitcoiner,
Welcome to Issue #693 of Bitcoin Breakdown, where every Tuesday and Thursday, we bring you the latest must-read Bitcoin thought leadership articles and the newest tools and projects you should know about. But first, today’s Top Stories:
Mercado Bitcoin, one of Brazil's largest exchanges, suspended withdrawals as analysts flagged more than $40M in suspicious transfers, China's Communist Party called for a crackdown on virtual currency graft, and the Financial Action Task Force opened a targeted review of major virtual asset hubs. Every intermediary is a target or a tool, so take self-custody now.
When Mercado Bitcoin suspended withdrawals this week, its customers could only wait. Coins held on someone else's platform can be paused by someone else.
Free multisig is back in the Blockstream app. Pair it with Jade Plus and your key stays on the device, off your phone. Add a backup key you keep offline and you can always spend without Blockstream. A thief with your phone or your recovery phrase still needs your 2FA code.
Our link takes 10% off Jade Plus automatically at checkout.
🇧🇷 Mercado Bitcoin Halts Withdrawals After $40M Alert
Mercado Bitcoin, one of Brazil's largest exchanges, kept deposits and withdrawals suspended after a security incident in one of its systems. Blockchain security firm Hypernative estimates suspicious transfers above $40M across several blockchains, a figure the exchange has not confirmed. Mercado Bitcoin has not said which system was breached, how much was taken or when it will reopen.
Why it matters: Mercado Bitcoin's freeze lands days after the $6.3B Binance hack, so treat every custodian holding significant funds as vulnerable. Customers now wait for permission to exit because an intermediary holds the keys, so take self-custody now. Read more→
From a Brazilian exchange freeze to Beijing's graft hunt...
🇨🇳 China's Party Targets Graft Hidden in Virtual Currency
China's Communist Party called for a crackdown on corruption involving the internet, virtual currency, cross-border funds and blockchain technology, in a decision from its Fifth Plenary Session. The order changes no law, because Bitcoin and crypto trading is already banned on the mainland. The Communist Party text gives crypto one sentence and does not name bitcoin, while setting no deadline or penalties.
Why it matters: A binding party resolution turns every inspector, regulator and court against officials and fixers parking hidden wealth in Bitcoin and crypto. Chinese savers still need permission to use money the party already banned, which is why self-custody is their only exit. Read more→
From Beijing's party decision to Paris's global watchdog...
🌐 Global Watchdog Reviews Virtual Asset Hubs
The Financial Action Task Force (FATF), the Paris-based body behind the global anti-money laundering (AML) rulebook, will review jurisdictions with materially important virtual asset activity. Initial results are due in June 2027, and the watchdog has not named the jurisdictions. Its July 2026 report found 55 of 91 jurisdictions with Travel Rule laws had taken no supervisory or enforcement action.
Why it matters: The Paris watchdog has no police power, but listing severs correspondent banking, so more than 200 jurisdictions committed to its Standards. Every enforced rule adds an intermediary watching your money, which is why Bitcoin in self-custody is the privacy exit. Read more→
Handre van Heerden, in a part of an article series on foundational libertarian texts, argues that Hayek's 'The Road to Serfdom' remains vital because economic and political freedom are inseparable, central planning elevates the worst, and every regulation moves society further down the road (Nov 2 | 9 min read).
Michael Tanguma, CEO of Onramp, writes that 18 years after Satoshi published the Bitcoin white paper, small businesses still pay for bank bailouts through inflation and closures, and that they can protect their surplus by holding part of it in bitcoin (Oct 31 | 4 min read).
Yohan Yun of Cointelegraph recaps the record $6.3B Binance hack, tracing how the alleged North Korea-linked TraderTraitor group drained hot wallets, EIP-7702’s contested role, $3B in frozen assets and the exchange’s full reimbursement pledge (Oct 30 | 3 min read).
Jason Shubnell of The Block details how North Korean-linked hackers stole $6.3B by compromising Binance's hot-wallet signing infrastructure, tracing the attack's mechanics, laundering tactics and the custody risks it exposes across centralized exchanges (Oct 30 | 4 min read).
Christina Comben of Cointelegraph assesses whether Utexo's private, Lightning-fast RGB version of USDT can bring dollar liquidity back to Bitcoin and compete with Ethereum and Tron stablecoins, as the Tether-backed Dubai startup targets $1B in bridged supply within 12 months (Oct 29 | 5 min read).
Vincenzo Palazzo of Sonar, the Bluetooth mesh app that finds nearby people over bitchat, explains how they made sure their iPhone and Android apps can chat with the original bitchat apps (Oct 29 | 8 min read).
BitArt, a generative artist, in an interview with Dennis Koch of The Bitcoin Museum & Art Gallery, explains how Mosaic, an artwork built with Bitcoin Art Society, turns the numbers behind bitcoin transactions into shared colors and music, showing how many people can create art together and how Bitcoin could keep it preserved forever (Oct 29 | 10 min read).
River, a bitcoin-focused financial services firm, warns that AI-powered scams, hardware wallet hacks, and data breaches increasingly target investors, urging clients to enable 2FA, ForceField withdrawal limits, and strict privacy habits to protect their bitcoin (Oct 29 | 3 min read).
Allard Peng, an analyst writing for Bitcoin For Corporations, breaks down various Bitcoin Per Share Metrics including raw Bitcoin per share, Bitcoin per assumed diluted share, and Net Bitcoin per share, arguing that the latter best measures residual value for common shareholders and genuine accretion at constant bitcoin prices (Oct 29 | 7 min read).
Rockstar Developer, a BTCPay Server contributor, reflects on the recent hacks, arguing that frontier AI models now outpace human developers, and urges FOSS communities to adopt AI-driven development and defense while building trusted networks of ethical creators who protect what they build (Oct 29 | 2 min read).
Geyser releases their first Circular Grants Impact Report covering 11 merchant projects and three Field Partners, with the community providing 59% of funding for completed Q3 grants.
Jordan Walker, founder of UK Bitcoin community group The Bitcoin Collective, launches a free discount marketplace where users unlock exclusive deals from hand-picked brands, paying in Bitcoin or pounds.
Shroud, a Bitcoin wallet from developer Anmol Sharma launched at open-source community Bitshala's FOSS Stage, uses Silent Payments so one reusable address creates unique, unlinkable destinations.
Developer m0wer launches a dashboard for JoinMarket, a Bitcoin coinjoin privacy tool, tracking monthly transaction volume, orderbook size, and optimal fidelity bond fees with automated GitHub Action updates.
Bitkit, Synonym's self-custodial wallet, integrates Paykit, an open payment protocol, and Tether's USDT stablecoin, enabling payments via Pubky identities, payment requests, subscriptions, and digital dollar holdings alongside bitcoin.
Timechain Art Magazine, a print publication dedicated to Bitcoin art, opens pre-orders for Edition One, a 150-page issue featuring 30 artists and time-limited launch discounts.
Adam Gibson, JoinMarket creator, proposes Lichen, a Bitcoin layer 2 using zero-knowledge proofs and two-party contracts where the hub must disprove user exit claims or lose the funds.
Node-tracker, an open-source Go tool, pings Bitcoin node operators on Telegram when a node silently stalls behind public chain references, since stalled nodes often still look healthy.
Liquid Network restores its 1:1 peg, refilling reserves to 100% and erasing September's 600 BTC exploit shortfall.
