Crypto spent years demanding legitimacy.

Well, congratulations. Now we have a big

four audit, index methodology reviews,

public company earnings, and exactly the

same third party data breaches that

plague other industries. We're going to

talk about all of that and more right

now on the Daily Wolf. Let's go.

What is up party people? Welcome to the

Daily Wolf on Yahoo Finance. I am your

host, Scott Melker, also known as the

Wolf of all streets. We've got 15

minutes to talk about everything that is

driving crypto markets, although it's

hard to tell where they're driving at

the moment as Bitcoin just flatlines.

But

there will be brighter days ahead and a

lot of the things that are happening now

will be looked back upon as obvious

catalysts for the next bull market. But

it's not all unicorns, puppies, apple

pie, and roses. The hits continue to

come, especially in the world of

self-custody. Here's a story I wish I

was not reporting. Treasure warns 14,000

customers after fulfillment partner

suffers data breach. The incident marks

the first time Treasure customers

shipping addresses were exposed. So,

first I'll dive into what happened, then

we'll talk about what it means. So, this

is a breach at Treasure shipping

partner, Shipmunk. Cute. It's like

Chipmunk, but they get you killed.

Exposed information belonging to

approximately 13,689

customers. For 11,742

of them, the compromised information

included names, addresses, phone

numbers, and emails. Another 1947 had

just their names, cities, and emails

exposed. So, Treasure made it clear that

there was no violation of private keys.

uh the devices are safe, customer funds

are safu, not compromised.

That distinction matters technically,

but criminals now potentially have a hit

list of people who have bought hardware

wallets and know where they live. So,

let's talk about this. The first risk

obviously immediately is fishing. We saw

this with the Ledger X uh the Ledger

data breach many many years ago. uh I

can't remember the number but tens of

thousands of customers there their data

was given and every single one of them

started getting emails and fishing

attempts and attempts to steal all of

their money. Okay, great. The bigger

problem right now is wrench attacks,

which means physical attacks to try to

steal people's Bitcoin and crypto. And

if you think I'm being hyperbolic, you

should take a look at what's been

happening in France over the past couple

years. So in in case you missed the

story, basically wrench attacks started

increasing in France from 2024 to 2025

2026. There's now been, I believe, over

70 attacks just this year. Uh four or 5x

since 2024 when they started came out

that uh basically because of reporting

rules to the French equivalent of the

IRS. Everybody transparently gave the

government all the information on the

crypto that they held and somebody at

the government then sold that to

criminals at €800 a pop and those people

became targets. The uh founder of Ledger

lost a finger literally they cut his

finger off in a€ 10 million euro ransom

attempt. People's uh wives and children

have been kidnapped and this is

happening multiple times a month in

France. Well, now Treasure has sent, you

know, uh, a letter to all these 14,000

people saying you could be next, right?

Criminals now definitely will know

exactly where you live and that you

bought a hardware device. Now, some

people have said to me, "It's no big

deal. They don't know how much you hold,

but they know that you hold enough that

you care about buying a hardware device.

you care enough about your self-custody

and it's probably a meaningful part of

your wealth and they know exactly where

you live, what your email address is,

what your phone number is and how to

find you. This is an absolute disaster.

I'm prone to hyperbole, but when you put

this, you know, in conjunction with the

cold card hack that I told you about

from just last week that was an ongoing

exploit, it really is damning for the

self-custody

industry. Right? We were told and

telling people not your keys, not your

coins, be your own bank. But I didn't

know that being your own bank also meant

in 2026 being your own bank security,

which means having the uh weaponry and

knowhow to protect yourself physically

from violence when somebody tries to rob

your bank. We also told keep your keys

to yourself. Don't trust exchanges.

There's too much counterparty risk. But

nobody talked about the counterparty

risk of a data leak from the person you

buy the hardware wallet from or the

counterparty risk of cold card having an

exploit where you didn't roll enough

magic Dungeons and Dragons dice to

generate a seed phrase. We're at the

point where now the debate is if all

these treasure people should have sent

it to a PO box to an anonymous address

and not use their name and blah blah

blah blah blah blah. Nobody wants to do

this. I do in theory believe in self

custody. Now, you have to believe in

multi- signature self-custody, which is

something that I have done. Uh, and

geographically setting yourself on a

scavenger hunt for a hundred days around

the world just to be able to access $5

worth of your Bitcoin. But let's be

honest, for 95% of people at this point,

nobody is going to go far enough down

the rabbit hole to have the proper

OPSACE to actually protect themselves. I

don't know what the answer is. I'm

struggling with it. I'm not the guy

who's going to say just go buy an ETF

because the issuers of the ETF are the

very institutions that we got into

Bitcoin to rage against in the first

place. But we have a very very very big

problem right now. I mean the hardware

wallet works perfectly.

The shipping spreadsheet is the attack

surface. Like you really could not have

uh predicted that. Now in more positive

news,

we can put aside to death finally one of

the largest pieces of FUD, fear,

uncertainty, and doubt against the

crypto industry for over a decade.

Crypto firm Tether says KPMG completes

long promised audit. There are people on

the internet whose entire identities

have been questioning whether Tether was

actually backed by the assets that they

said they had. Well, now one of the big

four firms has audited them and

confirmed the backing of all of their

assets. This was a deep audit. Some are

calling it the largest audit in the

history of financial markets for a first

audit because they checked the

transactions. They checked the actual

holdings. They literally went to the

vault and checked every single

individual bar of gold that Tether owned

to make sure that they were real and

that they had them. So, this story is

probably nuanced, right? I'm assuming

when Tether launched years ago that they

were not backed solely by short-term

treasuries and that maybe they were

backed by riskier instruments, but with

time as they became leg more legitimate

and the industry did, that became a

problem that should not have even been

discussed. It's being put to bed now and

hopefully we will never ever ever have

to hear about it again. You may remember

that literally Howard Lutneck who's the

commerce secretary said we're Caner

Fitzgerald and we're holding the assets

that back it. It's fine. But now we have

the audit that people have been begging

for, begging for for years. I think that

this is uh actually really really big

news. At least it kills one more of the

negative narratives that we've had

around crypto even uh in recent days. I

know Jason Calcanis from the All-In

podcast has been very skeptical and

critical of Tether saying that they're

not fully backed because he read

something on the internet somewhere,

right? Well, now all of the fudsters and

all the doubters can now change their

opinion with superior information. And I

listen, if they had reason to doubt it,

okay, fine. Like I am a firm believer in

strong opinions loosely held. But if we

still see this nonsense after it's now

been proven, you know that somebody is

just emotionally attached to their

position against Tether. The next story

right here, strategy Metanet could face

MSCI index removal under new proposal.

They've been having deja vu all over

again. This is something that we

discussed just months ago, but MSCI is

changing the qualifications of the test

for what can be included in the index. a

new methodology that would exclude

nonoperating

companies from its global investable

market indexes. So this is not

explicitly aimed at crypto. It targets

companies whose value comes from

primarily from accumulating assets

rather than a operating a conventional

business. It comes to to to three

companies, right? It's uh strategy,

metaplanet, and uranium holder yellow

cake. What a name. You guys definitely

remember the uh Yellow Cake, Uranium,

George Bush uh days of memes before

memes. But yeah, so there's other

companies, Ethereum Treasury companies

that could come up uh in this as well.

Sharply named in the future on a watch

list, but they're going to have to

basically pass uh some certain tests and

criteria, which they probably won't or

they're going to be removed from the

MSCI. So why does this actually matter?

So the index exclusion could force

passive funds that track MSEI benchmarks

to sell effective shares. If it's in the

index and is removed and they're

tracking the index, they need to sell

strategy meta planet.

Sell yellow cake. Got to sell the yellow

cake, right? So strategyy's always

argued that it's more than a spot

bitcoin rapper, but MCI is asking them

to really prove it through operating

operating assets, expenses, and cash

flow. But I guess the deeper threat here

would be precedent. If uh these rules

are adopted and strategy and metaplanet

are removed from this index, other

indexes may follow and adopt the same

rules. So it's a really interesting time

right now for uh strategy obviously

MetaPlanet and for the Bitcoin treasury

company industry at large. I mean, I

tweeted something to the effect

yesterday that there's literally guys at

making like a million dollars a year at

treasury companies who all they did was

buy a bunch of Bitcoin 16 months ago and

since then they've just sat in a room

and watch their stock go down. That's

like their job. They they don't do

anything else. Don't buy anything else,

don't earn cash flow. Maybe they talk to

the accountant every once in a while.

Maybe they cry to their wife in their

money bags of jars. But I don't know.

It's a completely completely broken

industry. uh outside of these very

serious players that we're talking about

here. So, we would hate to see them uh

discluded from these indexes. Now, the

next story is interesting because we

have bullish I told you about securitiz

losing money. Bullish Q2 earnings and

revenues tops estimates they did well.

They reported second quarter adjusted

revenue of 92.6 million up approximately

62% from 57 million a year earlier.

Their subscription services other

revenue nearly doubled to $62.7 million.

That's good. adjusted rose to 29.5

million from 8.1. Net income improved to

14.3 million from a 6 million loss.

These guys did exceptionally well. And

the real story is that they're not just

focusing specifically on

being a crypto exchange anymore. They're

building out a very robust business

including the $4.2 to billion dollar

acquisition of Aquinity uh which should

go through in 2027 which will connect

tokenization transfer agent records

trading settlement market data and of

course they own Coindesk so bullish

stock actually went up on this news

we've seen a trend of crypto stocks

getting slaughtered uh at earnings and

going down and bullish once again is

another example of exchanges pivoting to

become the everything apps so that they

don't just have to rely on crypto

trading for revenue now Gemini didn't do

so

Gemini share slide after 100 million

loss as WVAS says still have work to do.

So listen, it's not all roses here

either, but we knew that already before

we even shared this story. I think

bullish is the outlier here. And listen,

they'd had a rough run until now, but

maybe they're an indication that things

could potentially maybe sort of at some

point if we actually get a bull market

reverse. Once again, I will make the

point all of these will do well when

prices simply go up,

right? I mean, a lot of these losses

we're seeing are because they're marking

to market their crypto holdings which

have gone down and they have to report

that as part of earnings and blah blah

blah blah blah blah. So, it's going to

be fine. Just wait for prices to go up

probably the minute the summer ends. I

don't know. It's what seems to happen in

the past. And we have one final story.

SEC delays crypto regulation meeting and

latest industry setback. So, I reported

earlier this week that we are getting a

meeting today, Friday, today, where they

were going to talk about safe harbor and

how people can launch tokens in the

United States and what would make you

des sufficiently decentralized so that

you were no longer a security and all

those amazing things. And then, yeah,

last night they canceled the meeting.

We should be talking about the meeting

that just happened. Instead, we're

talking about the fact that the meeting

is not happening. But the good news is

that they definitely checks notes uh

rescheduled. Right now it's canled.

There was they said it was cancelled for

unforeseen scheduling issues but no

replacement date has been announced. I'm

not going to read too deeply into this.

We do know that this SEC CFTC the

regulatory regime is very bullish crypto

and very very bullish on creating rules

for the industry. I'm assuming that this

is just some some red tape or somebody

got COVID or something. Uh cuz otherwise

I I can't even take it if they are

literally just cancelling this and never

going to talk about regulation crypto

again.

Listen, Bitcoin prices have remained

steady regardless of the news, good or

bad. I think it's generally a symbol

that we're bottoming in a bare market

when that bad news doesn't affect it.

But we do have real questions to answer

and real issues with accountability from

self-custody from Bitcoiners fighting

over BIP 110 all the other nonsense that

seems to be happening. I do not have an

answer anymore to the custody question

because you know what I fundamentally

believe and being your own bank only

works if you can actually trust the

providers that are sending you your

hardware wallets. That's all I've got

for you this week. Be back on Monday

with the next Daily Wolf. Peace.