The Daily: US government bitcoin holdings surge to $36 billion, crypto ETFs see $755M in outflows after market wipeout, and more

The following article is adapted from The Block’s newsletter,  The Daily , which comes out on weekday afternoons.

Happy Tuesday! Bitcoin dropped back below $113,000 this morning as the multi-day price slide continues to throttle bullish sentiment.

In today's newsletter, the U.S. government's bitcoin holdings balloon to $36 billion following a record-breaking DOJ seizure, crypto ETFs see $755 million in outflows after the weekend wipeout, Monad opens its MON airdrop portal amid huge claim demand, and more.

Meanwhile, a new GOP bill aims to codify President Trump's executive order on crypto and private equity in 401(k) retirement plans. Plus, Binance launches a $400 million initiative to refund users and instill market confidence following the crypto flash crash.

Let's get started!

P.S. CryptoIQ is now available to everyone. Take the test for a chance to win $20,000!

US government bitcoin holdings balloon to $36 billion

U.S. government bitcoin reserves surged to around 325,000 BTC ($36 billion) after announcing it had seized 127,271 BTC ($14 billion) — the largest forfeiture in Department of Justice history.

• Prosecutors charged former Chinese national Chen Zhi with running a Cambodia-based crypto scam empire that used forced labor and defrauded victims of billions of dollars in bitcoin.
• The forfeiture stemmed from a civil complaint filed by the U.S. Attorney's Office for the Eastern District of New York and the DOJ's National Security Division.
• OFAC and FinCEN coordinated with the UK's FCDO to sanction 146 members of the so-called Prince Group Transnational Criminal Organization, allegedly led by Zhi.
• U.S. officials accused Zhi of orchestrating wire fraud, money laundering, human trafficking, torture, and extortion across at least 10 scam compounds in Cambodia.
• Treasury Secretary Scott Bessent said the coordinated crackdown aims to protect Americans from foreign scammers after the crypto-related fraud wiped out victims' life savings.

Crypto ETFs see $755M in outflows as traders turn cautious after weekend wipeout

U.S. spot Bitcoin and Ethereum ETFs saw $755 million in combined outflows on Monday as investors turned defensive after the weekend's historic crypto wipeout.

• Bitcoin ETFs recorded $326.5 million in net outflows, led by Grayscale's GBTC and Bitwise's BITB, while BlackRock's IBIT stood as the only outlier, adding $60 million worth of inflows.
• Ethereum ETFs faced steeper pressure with $428.5 million in net outflows overall, including $310 million from BlackRock's ETHA — its second-worst day since launch.
• Analysts said the withdrawals reflect post-liquidation caution and short-term risk management as traders await clearer macro signals amid the renewed U.S.-China trade tensions.

Monad kicks off MON airdrop claims as mainnet launch edges closer

Monad has opened its long-awaited MON airdrop claims portal , allocating tokens to over 230,000 users across five categories, including community members, onchain power users, broader crypto participants, contributors, and builders.

• Eligible users include participants in major DeFi protocols such as Aave, Curve, Uniswap, Pendle, PancakeSwap, Hyperliquid, and Pump.fun, as well as DAO voters and holders of NFTs like Pudgy Penguins, Mad Lads, and Milady Maker.
• The three-week claim window covers only the eligibility phase, with MON distribution to follow the token generation event and mainnet launch expected later in the year.
• The portal uses Privy for authentication, enabling users to verify wallet and social account ownership, which briefly caused a partial outage under heavy load on Tuesday before service was restored.

Metaplanet's enterprise value dips below bitcoin holdings for first time

Metaplanet's mNAV fell to 0.99 on Tuesday — marking the first time its enterprise value has dropped below the value of its bitcoin holdings.

• The Tokyo-listed bitcoin treasury firm holds 30,823 BTC worth around $3.5 billion, making it the world's fourth-largest public bitcoin holder.
• Metaplanet's shares are down 12.4% on the day, 18.4% over the past month, and 74.5% from their all-time high, though the stock remains up 38.5% year-to-date.
• Analysts say the mNAV dip reflects short-term market pressures rather than a structural weakness, with Benchmark maintaining a 2,400 yen price target by the end of 2026.

Bhutan to anchor its national digital identity system on Ethereum

Bhutan is migrating its National Digital Identity system from Polygon to Ethereum to "further strengthen the security" of its nationwide digital infrastructure.

• The transition, expected to be completed by early 2026, will make Bhutan the first country to anchor a national digital ID system on Ethereum.
• Ethereum Foundation President Aya Miyaguchi and Ethereum co-founder Vitalik Buterin attended the launch, highlighting Bhutan's growing role in blockchain innovation alongside its status as the world's sixth-largest known nation state bitcoin holder.

In the next 24 hours

• U.S. FOMC member Raphael Bostic is scheduled to speak at 12:10 p.m. ET on Wednesday.
• Starknet and Sei are set for token unlocks .
• The Digital Asset Summit concludes in London. The European Blockchain Convention gets underway in Barcelona.

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