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An unpublished Anthropic AI model, Claude Mythos Preview, broke the post-quantum signature scheme HAWK-256 in about 60 hours at a cost of roughly $100,000. The AI uncovered a previously unknown symmetry in HAWK's design, reducing its security effectiveness by 50% and slashing the required work from ~2^64 to ~2^38 operations. The algorithm, a candidate in NIST's post-quantum cryptography evaluation, was subsequently withdrawn by its creators. This event does not pose an immediate threat to Bitcoin, as Bitcoin never used HAWK-256. Bitcoin currently relies on ECDSA and Schnorr signatures on the secp256k1 elliptic curve, which are unrelated. However, the incident significantly changes a key assumption in Bitcoin's post-quantum roadmap: AI is making the testing and potential breaking of complex cryptographic systems faster and more affordable. The development intensifies the debate on when Bitcoin should begin its transition to quantum-resistant cryptography. Proposals like BIP-360 (introducing P2QRH outputs using NIST-approved ML-DSA/SLH-DSA) and BIP-361 (phasing out ECDSA) are already in motion, having bypassed HAWK. The core challenge is whether AI-assisted cryptanalysis could compromise these intended replacement algorithms before the network completes its migration. Analysts warn that AI is accelerating cryptanalysis, compressing security timelines. Combined with quantum computing advances, this underscores the urgency for Bitcoin's transition. Reports estimate roughly 6.7 million BTC (worth nearly $600 billion) could be vulnerable to a sufficiently advanced quantum computer, with a non-trivial probability of such a machine existing by 2035. The primary issue is no longer solely hardware development but whether the network can execute a successful protocol upgrade in time.

The U.S. Treasury Department's OFAC has imposed sanctions on two Iranian marine insurance companies, Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, for using cryptocurrency to evade sanctions. The Treasury alleges the firms are controlled by Iran's Islamic Revolutionary Guard Corps (IRGC) and force commercial vessels to purchase mandatory insurance for passage through the Strait of Hormuz, while Iran itself creates the primary risks. HormuzSafe notably accepts payment in Bitcoin and other digital assets. U.S. Treasury Secretary Scott Bessent stated the measures aim to prevent Iran from taking global trade hostage or using shipping to finance terrorism and repression. The sanctions also target eight vessels in Iran's "shadow fleet" transporting oil and petrochemicals. These actions are part of broader U.S. efforts, under an existing executive order, to pressure Iran's oil sector and its economy, which is suffering from high inflation.

Hedge fund Situational Awareness, founded by ex-OpenAI researcher Leopold Aschenbrenner, is seeking new capital after heavy losses from an AI stock sell-off in July. The fund, which reportedly managed around $20 billion in assets, saw gains of 439% through June, but leveraged bets led to significant losses when AI stocks fell. Aschenbrenner argued the sell-off created new investment opportunities. The fund holds major positions in Bitcoin miners pivoting to AI, with a March SEC filing showing about $1.11 billion across stocks like IREN, Core Scientific, Riot Platforms, and CleanSpark. The fund was launched alongside Aschenbrenner's essays predicting artificial general intelligence surpassing college graduates by 2030.

Spanish banking giant Banco Santander disclosed in regulatory filings that it holds approximately $4.3 million in US spot Bitcoin ETFs. While this amount is small relative to the bank's over $1 trillion in assets under management, it signifies a growing trend of traditional financial institutions increasing Bitcoin exposure through regulated channels. Santander, scoring around 35% on a 2026 Bitcoin Adoption Index for banks, is categorized at a "medium level" of integration, similar to Société Générale but behind more crypto-focused firms. The bank's interest in cryptocurrencies is not new; CEO Ana Botín has discussed Bitcoin-related products since 2021. Santander has been developing crypto custody and digital asset services across Europe for years, with its digital arm, Openbank, beginning to offer crypto trading in Germany in September 2025, with plans to expand to Spain. This investment comes as institutional crypto adoption accelerates in Europe. Santander is actively involved in crypto custody initiatives across the continent and appears to be positioning itself to strengthen its role in the sector, especially as regulations like MiCA become clearer. The industry is watching whether the bank's medium integration level reflects caution or structural limitations, as banks with higher adoption may gain an edge in attracting crypto-interested wealthy clients.

Scammers are impersonating the Chinese newspaper China Business Journal to extort Bitcoin ransoms from companies. According to the publication, the criminals contacted businesses via the encrypted Swiss email service Proton Mail, threatening to publish allegedly compromising information obtained through "secret investigations" unless a Bitcoin ransom was paid. The exact ransom amount was not disclosed. China Business Journal has stated it has no connection to these emails and denounces the senders as fraudsters. The newspaper did not provide screenshots of the emails, name the targeted companies, or reveal the Bitcoin address for the ransom. The total financial losses to businesses are also unknown. The publication is now gathering evidence and plans to file civil and criminal lawsuits against the scheme's organizers. In a related development this year, Malaysian police arrested 22 Chinese nationals operating a fraudulent call center that promoted cryptocurrency investments, primarily targeting European victims, especially Italians.