Trump Media demands probe into short sellers

Trump Media demands SEC probe over short selling

Donald Trump’s media company has urged the U.S. Securities and Exchange Commission to investigate alleged illegal short selling of its DJT stock.

In a public letter on Thursday, Trump Media & Technology Group (TMTG) accused UK-based firm Qube of building a $105 million short position without notifying U.S. regulators. The company cited third-party data suggesting the position may now be as high as $200 million.

"We urge you to immediately investigate this suspicious trading," a Trump Media representative wrote.

TMTG shares have fallen 35% this year as the firm faces ongoing scrutiny, including a federal investigation into alleged money laundering and ties to Russian actors through its Truth Social platform. Its financial disclosures revealed just $4 million in 2023 revenue and $400 million in operating losses.

The letter also comes amid efforts to court the crypto industry. TMTG recently partnered with Crypto.com on a series of upcoming crypto ETFs.

Bitcoin bounty tests quantum threat

A new challenge is offering 1 BTC – worth nearly $85,000 – to any team able to break a simplified version of Bitcoin’s cryptography using a quantum computer.

The contest, launched Wednesday by Project 11, aims to assess how close quantum computers are to compromising elliptic curve cryptography (ECC), which underpins Bitcoin’s security.

“Bitcoin’s security relies on ECC. Quantum computers running Shor’s algorithm will eventually break it,” the group posted on X. The bounty runs through April 2026.

While the current challenge uses keys far smaller than Bitcoin’s real 256-bit encryption, organizers say any successful crack of even a 5-bit key would be a landmark.

Ethereum and Solana developers have already begun deploying quantum-resistant solutions, but the broader crypto industry remains divided over how and when to prepare.

Kraken cuts staff amid IPO prep

Crypto exchange Kraken has laid off hundreds of staffers since late last year, according to people familiar with the matter.

This follows an initial 15% headcount reduction announced in October, and reflects what one source described as a “rolling program of firings” aimed at improving EBITDA ahead of a potential IPO.

Kraken’s co-CEOs Arjun Sethi and David Ripley previously said they would restructure to reduce organizational layers and streamline operations.

Despite the layoffs, Kraken says business is strong. A company spokesperson pointed to revenue growth and product expansion, including its acquisition of NinjaTrader and plans for stock trading.

Still, the scale of ongoing cuts highlights the challenges even established crypto firms face as they seek public listings.

Solana jumps after ETF launch and Coinbase upgrade

Solana (SOL) climbed to nearly $136 on Thursday – its highest level in weeks – after the launch of Canada’s first spot Solana ETFs with staking and a major infrastructure upgrade by Coinbase.

The ETFs, issued by 3iQ, Evolve, CI, and Purpose, offer investors staking rewards and easier access to Solana through traditional brokerage accounts. U.S. approval remains pending, with firms like VanEck and 21Shares awaiting decisions from the SEC.

Meanwhile, Coinbase announced improvements including 5x faster block processing and 4x better RPC performance, addressing long-standing complaints over Solana delays on its platform.

SOL is up 6% on the day and 23% over the week, outperforming other top assets.

LayerZero token climbs as a16z ups bet

LayerZero’s native token ZRO rose 10% Thursday after a16z crypto revealed a new $55 million investment locked up for three years.

LayerZero enables interoperability across 125 blockchains and supports over $75 billion in cross-chain transfers. Its infrastructure powers PayPal’s stablecoin and Wyoming’s new state-backed digital dollar.

The fresh capital will help the protocol expand beyond messaging into token issuance, governance, and data infrastructure.

ZRO was recently trading around $2.56, outperforming major indices and most top cryptocurrencies.

The bigger picture

Trump Media’s letter to the SEC highlights the blurred lines between politics, finance, and crypto as the company seeks to deflect from mounting losses. Meanwhile, the 1 BTC quantum challenge reflects deeper structural risks to crypto security that the industry must confront proactively.

Kraken’s staff cuts suggest that despite bullish headlines, leaner operations remain key for long-term sustainability. In contrast, Solana’s price action shows that real-world improvements – from ETF exposure to faster transaction speeds – still move markets.

LayerZero’s surge following a16z’s commitment reinforces that strategic backing and real utility are still rewarded, even in a cautious environment.