Peter Thiel Has Fully Exited Ethereum Treasury Firm ETHZilla After Selling His Entire Stake
Billionaire investor Peter Thiel and his venture firm Founders Fund have completely divested from Ethereum treasury firm ETHZilla Corp., according to a Schedule 13G/A filing with the U.S. Securities and Exchange Commission. The move marks a dramatic reversal from last year, when Thiel’s entry into the company propelled its valuation and sparked broad optimism about Ethereum‑centric corporate treasury strategies. Key Takeaways From Institutional Endorsement to Total Exit In August 2025, Founders Fund disclosed a 7.5% stake in what was then 180 Life Sciences Corp., a biotech firm that had pivoted into crypto and rebranded as ETHZilla with a plan to accumulate and actively manage Ethereum (ETH) on its balance sheet. Thiel’s backing provided a strong signal of confidence and helped send ETHZilla’s stock sharply higher. Fast forward to 17 February 2026, the amended filing shows Founders Fund now owns zero shares and reports no voting or dispositive power in the company. That clean exit underscores how dramatically sentiment toward this particular play has shifted in less than a year. Market participants reacted quickly. ETHZilla’s shares slid in both pre‑market and extended trading, extending a longer downturn that has seen the stock collapse from its peak. A Brutal Market Story ETHZilla’s journey since its pivot has been turbulent. At its height, the firm held more than 100,000 ETH following a large fundraising round in mid‑2025 that raised hundreds of millions of dollars to support its treasury strategy. However, volatile market conditions and sustained weakness in ETH prices forced the company to liquidate a substantial portion of its holdings to manage debt and buy back shares. According to recent market data: Those sales and macro pressure on crypto prices have weighed heavily on the company’s valuation. After peaking above $100 per share last year, ETHZilla’s stock now trades just above $3, a staggering decline of nearly 97%. What Thiel’s Exit Signals Thiel’s complete pull‑out is significant not just because of the size of his original position, but because it highlights how quickly investor sentiment toward certain crypto business models can shift. Institutional support for Ethereum treasury vehicles—built on the idea that firms can hold ETH as a reserve asset and generate returns via staking and DeFi strategies—was once considered a major narrative in crypto finance. ETHZilla’s early backers saw parallels with corporate Bitcoin treasury strategies popularized by companies like MicroStrategy. But the recent exit is less about outright skepticism toward Ethereum itself and more about a reassessment of risk, execution, and return profiles in a tougher market environment. Founders Fund has reportedly maintained exposure to other blockchain infrastructure names even as it trims specific holdings like ETHZilla. Market observers also interpret the timing as a broader signal that crypto treasury business models are under pressure, especially those disproportionately exposed to single asset price movements without clear, diversified revenue streams. Pivot to Real‑World Assets ETHZilla is attempting to redefine its business model away from pure ETH accumulation. The company has launched a subsidiary called ETHZilla Aerospace, focused on tokenizing real‑world assets (RWAs) such as leased aircraft engines and consumer financing portfolios (like manufactured home loans). This pivot reflects a strategic shift that many crypto‑native businesses are now pursuing: finding recurring revenue and utility through tokenized exposure to physical economy cash flows rather than relying solely on appreciation of reserve assets. Whether this approach will stabilize ETHZilla’s future remains to be seen. Consequences for ETH Treasury Plays Thiel’s exit comes amid wider scrutiny of the broader ETH treasury space. Other companies with similar strategies have also adjusted their holdings or pursuit of yield as market conditions cooled. Some firms are holding through volatility, while others are changing tack or unwinding positions entirely. The sudden drop in ETHZilla’s shares and the disappearance of a marquee backer like Thiel could influence sentiment among other institutional investors. Some analysts believe it may slow capital inflows into highly concentrated crypto balance sheet strategies, at least until clearer evidence of profitability and risk management emerges. Final Take Peter Thiel’s full exit from ETHZilla is more than a headline move—it is a notable moment in the evolution of institutional crypto investment. It highlights how quickly high‑profile bets can turn in dynamic markets, especially when tied to speculative treasury strategies. For ETHZilla, the next chapter will hinge on whether its pivot into tokenized real‑world assets can deliver tangible results and restore investor confidence after a dramatic drawdown.
OpenAI and Paradigm Launched EVMbench, a Test for AI Finding and Exploiting Smart Contract Bugs
In a major development for blockchain security, OpenAI and crypto investment firm Paradigm have unveiled EVMbench, a new benchmarking system designed to assess how well artificial intelligence can identify, exploit, and repair vulnerabilities in smart contracts that power decentralized finance (DeFi) and other applications on Ethereum‑like blockchains. Smart contracts are autonomous programs that manage and move funds without intermediaries. They currently secure over $100 billion in open‑source crypto assets worldwide. Once deployed, many of these contracts cannot be changed—meaning bugs left unchecked can be devastating. EVMbench is built to quantify how capable machine learning agents are at understanding these complex systems and mitigating emerging security risks. Key Takeaways Purpose and Design of EVMbench EVMbench is not a toy or a set of toy puzzles. Instead, it is a task suite grounded in real‑world vulnerabilities curated from professional code audits, public competitions, and private security reviews. The benchmark includes 120 high‑severity vulnerability instances sourced from 40 distinct audit reports, most coming from open‑code audit competitions such as Code4rena and internal audit data from Paradigm’s blockchain projects. Each test environment is containerized so that AI agents interact with code in conditions that mirror real development and deployment workflows. EVMbench evaluates models across three capability modes: This multi‑step cycle mirrors how professional security researchers actually operate — first finding a bug, then understanding and fixing it, and finally testing whether the fix holds up under adversarial pressure. What the Early Results Show The initial results reveal a striking trend: AI models have improved rapidly, but performance varies widely by task. In early internal tests, OpenAI’s GPT‑5.3‑Codex achieved over 70% success in exploit mode, compared to less than 20% on similar vulnerabilities during earlier stages of development. This means today’s models are increasingly capable of finding and chaining subtle logic errors into financially serious exploits. However, the same systems lag in the detect and patch modes. Agents often detect a single glaring issue and fail to complete a comprehensive audit, while patching remains difficult because preserving the original functionality in complex code requires nuanced reasoning—something AI is still learning to do robustly. Dual‑Use Risks and Defensive Focus EVMbench underscores a dual‑use dilemma facing the crypto industry. On one hand, if AI can rapidly find and test exploits, that capability could be misused by malicious actors to plan attacks before teams finish audits. On the other hand, the same capability could vastly accelerate defensive audits and continuous security reviews by teams that lack the budget for expensive manual audits. OpenAI and Paradigm are positioning the benchmark as a tool for defensive adoption — a way for developers, security researchers, and even smaller DeFi teams to evaluate the security posture of their smart contracts more thoroughly and more often than traditional audit cycles allow. To encourage adoption and defensive research, OpenAI has also committed substantial API credits (reported to be around $10 million) toward accelerating security efforts with its most advanced models, especially in open‑source and critical infrastructure contexts. A New Standard for Crypto Security The launch of EVMbench could mark the beginning of a new era in blockchain safety. By setting a clear standard for how AI agents are evaluated—not just on whether they write code, but on whether they understand, test, and harden that code—the benchmark aims to elevate both the practice and education of smart contract security. As decentralized finance continues to attract institutional interest and billions of dollars in assets, tools like EVMbench offer a measurable, repeatable way to track progress in securing the foundations of on‑chain finance. The release also opens the door to future benchmarks that could simulate even more complex environments, such as multi‑chain dependencies and live mainnet conditions. For now, EVMbench gives the community a clearer window into what AI can—and can’t—do in the fight to protect decentralized economies.
TON Foundation Has Partnered With Banxa to Expand Stablecoin Payment Processing for Asia-Pacific Merchants
The TON Foundation has announced a strategic partnership with Banxa to roll out regulated stablecoin payment infrastructure for small and medium-sized enterprises (SMEs) across the Asia-Pacific (APAC) region. The collaboration is designed to position TON as a practical settlement layer for real-world business payments, extending beyond consumer crypto use cases into enterprise-grade financial operations. The initiative integrates Banxa’s licensed fiat on- and off-ramp network with the TON blockchain, enabling businesses to conduct B2B settlements, cross-border transfers, and consumer-to-merchant (C2B) transactions using stablecoins such as USDT and USDC. Key Takeaways Bringing Stablecoins Into Everyday Business Workflows Under the agreement, Banxa will provide compliant payment infrastructure across key APAC jurisdictions, including Singapore, Hong Kong, and Australia. The company handles conversions between local fiat currencies and digital assets, ensuring adherence to AML and KYC requirements. For SMEs, the process is straightforward. A business can convert local currency into stablecoins through Banxa’s gateway, settle invoices on-chain via TON within seconds, and allow recipients to either hold the digital dollars or convert them back into local currency. The model significantly reduces reliance on traditional correspondent banking networks. The timing is notable. The global stablecoin market capitalization surpassed $150 billion in late 2025, reflecting growing demand for blockchain-based settlement tools. In APAC, cross-border e-commerce is projected to exceed $2 trillion by 2030, according to industry estimates. SMEs account for a large share of that activity, yet many still face slow and costly international payment rails. Traditional bank wires can take between two to five business days to settle, often costing 3–5% plus fixed fees. By contrast, blockchain-based transfers settle in seconds, with projected costs under 1% depending on corridor and liquidity conditions. The TON blockchain’s high throughput — capable of processing thousands of transactions per second — supports this scale. From Consumer Crypto to Enterprise Infrastructure TON’s peer-to-peer infrastructure has already seen significant adoption in parts of Asia through Telegram-linked applications. This partnership expands its reach into structured business environments. The announcement follows the recent launch of TON Pay, signaling a broader strategy to transform TON into a dedicated payments network for commercial use rather than primarily app-based activity. Industry observers view the move as a shift from speculative crypto narratives to practical financial infrastructure. The APAC region hosts more than 70 million SMEs, many of which encounter high foreign exchange costs, opaque fees, and liquidity delays when dealing with international suppliers. A stablecoin network offers price stability while preserving the speed advantages of blockchain settlement. Regulatory Structure at the Core of the Rollout Compliance remains central to the framework. Banxa, a subsidiary of OSL Group, operates under multiple regulatory licenses, including Money Services Business (MSB) registrations and digital asset exchange authorizations in jurisdictions such as Australia, the European Union, and the United Kingdom, with ongoing expansion in Asia. By anchoring fiat endpoints within licensed infrastructure, the partnership aims to reduce regulatory friction that has slowed other crypto payment initiatives. On-chain transparency also provides an immutable transaction record, which can assist with auditing and reporting requirements. Operational Model and Market Impact The proposed system functions as a closed-loop payment corridor: This structure reduces dependency on intermediaries and correspondent banking chains that typically add cost and delay. However, adoption will depend on execution. Seamless user experience, sufficient liquidity across supported corridors, and continued regulatory clarity will determine how quickly merchants integrate the system. Education also remains essential, particularly for businesses unfamiliar with digital asset custody and wallet management. Competition is another factor. Traditional financial institutions and payment providers may respond by lowering fees or accelerating settlement speeds to maintain market share. Still, the cost differential is significant enough to attract attention. For SMEs operating on thin margins, even a 2–3% reduction in transaction costs can materially improve profitability. A Broader Push for Web3 Commerce in APAC The partnership underscores a growing focus on Asia-Pacific as a primary growth market for blockchain-based financial infrastructure. Digital payments are projected to account for more than 50% of total transactions in the region by 2028, reflecting rapid mobile and e-commerce adoption. By targeting SMEs rather than retail traders, TON and Banxa are aligning with sectors that drive regional economic output. If successful, the network could onboard thousands of merchants, embedding stablecoins into daily trade flows rather than isolated crypto transactions. The collaboration signals a clear strategic direction: positioning TON not merely as a blockchain for decentralized applications, but as a settlement layer for real business payments. Whether it achieves scale will depend on merchant adoption, corridor liquidity, and regulatory developments in key APAC markets. For now, the announcement marks one of the more concrete attempts to bridge regulated fiat gateways with high-throughput blockchain infrastructure for mainstream commercial use.
El Salvador Continues to Buy Bitcoin, Holdings Rise to 7,565.37
El Salvador has added more Bitcoin to its national reserves, bringing its total holdings to 7,565.37 BTC, reinforcing its long-standing commitment to the digital asset. The latest accumulation confirms that the Central American nation remains firmly aligned with its Bitcoin-first policy, even as global markets continue to experience volatility. Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador has steadily expanded its position. Rather than executing massive single-day purchases, the government has maintained a measured buying strategy, gradually increasing its reserves over time. The updated total reflects this disciplined approach. Key Takeaways A Long-Term Bet on Bitcoin Under President Nayib Bukele, El Salvador has positioned Bitcoin as a strategic reserve asset. The administration has consistently framed its holdings not as short-term speculation, but as a long-term financial hedge and a pillar of economic sovereignty. Bitcoin’s price has moved through sharp rallies and corrections over the past few years. Despite these swings, the government has not signaled any retreat from its strategy. Instead, the continued accumulation suggests confidence in Bitcoin’s long-term valuation and its potential role in reshaping sovereign finance. El Salvador remains one of the largest known sovereign holders of Bitcoin globally. While exact rankings fluctuate depending on disclosures from other governments, the country’s public and transparent accumulation policy sets it apart from more discreet state-level holdings elsewhere. Beyond Reserves: A Broader Economic Vision The country’s Bitcoin policy extends beyond treasury reserves. Since granting legal tender status to Bitcoin, El Salvador has sought to attract foreign investment, boost tourism, and promote financial inclusion for citizens without access to traditional banking services. Government-backed Bitcoin initiatives have included infrastructure development, regulatory frameworks, and incentives aimed at encouraging crypto-based businesses to establish operations locally. The steady rise in national holdings signals that authorities still view Bitcoin as central to this broader economic plan. Global Attention Remains Fixed El Salvador’s approach continues to divide opinion internationally. Supporters argue that early sovereign adoption could yield substantial upside if Bitcoin’s value appreciates significantly over time. Critics, however, caution against the risks tied to price volatility and fiscal exposure. With holdings now at 7,565.37 BTC, the country is making a clear statement: it is not abandoning its digital asset experiment. Whether this strategy ultimately delivers sustained financial returns will depend largely on Bitcoin’s long-term performance and broader global adoption trends. For now, El Salvador’s message is straightforward — the buying continues, and the national Bitcoin reserve keeps growing.