As the old adage goes, 'a tall poppy gets its head chopped off' – but in the wild world of crypto, it's more like big trees drawing the gale. Here we are at the dawn of 2026, and the market's already stirring up a storm. Bitcoin's hovering around the £70,000 mark, with social feeds buzzing with unbridled optimism, yet beneath the surface, tensions are brewing: wallet heists on a massive scale, seismic shifts in regulation, tightening tax nets, and long-dormant treasures unearthed. This past week, from 28 December 2025 to 3 January 2026, the crypto scene seemed deceptively calm on the outside, but it's riddled with hidden pitfalls. Isn't this market just screaming fragility?

Let's kick off with the most alarming incident: widespread EVM wallet drains

A phishing email depicted as an invisible hand stealthily siphoning assets from a digital wallet

Dozens of wallets across EVM-compatible chains were mysteriously emptied overnight, with individual losses typically under £1,500, but the total haul exceeding £75,000. Digging into it, the culprits appear to be a barrage of phishing emails masquerading as official MetaMask alerts, echoing the Trust Wallet breach from last December. Imagine clicking what looks like a legit update, only for your private keys to slip away and your funds to vanish in a flash. With 2026 just getting underway, hackers are flexing hard – it's a stark reminder to steer clear of dodgy links, no matter how hectic life gets. Wallet security should always top your list. Have you got your backups sorted? And what about multi-sig setups – are they in play?

SEC's top brass overhaul signals a crypto regulation earthquake

Power handover at the SEC emblem, tipping the scales from strict oversight to potential deregulation

Caroline Crenshaw has stepped down for good, leaving the SEC firmly in Republican hands. She'd long been a fierce opponent of easing crypto rules, and her exit coincides perfectly with vacancies at both the SEC and CFTC, alongside a noticeable dial-back in enforcement. The Democrats' influence on the commission has evaporated, widening the partisan chasm on digital assets. Do you reckon this spells good news or trouble for the crypto crowd? Big players might pile in with less fear, but what about everyday punters? Looser reins could invite more nasty surprises, couldn't they – especially if you're in the UK watching the FCA's moves with bated breath?

Trump Media's fresh twist: token rewards for DJT shareholders

Teaming up with Crypto.com, Trump Media is set to distribute tokens to DJT shareholders – one per share. These can unlock platform perks, but they come without ownership stakes, voting power, or dividend rights. It's a novel gimmick on the surface, though really just a fancy loyalty perk. Innovation or hype-chasing? Either way, the Trump clan is keeping their footprint loud in crypto circles.

Global tax dragnet tightens, with 2027 reporting on the horizon

A golden web of latitude and longitude ensnaring digital cubes symbolising crypto trades across the globe

Forty-eight nations are now gathering crypto transaction intel to gear up for the OECD framework kicking in come 2027. Cross-border deals will be far harder to keep under wraps, ramping up the challenge for tax dodgers and money launderers alike. Regulators are keen to track holdings and volumes precisely. Still banking on wallet anonymity for peace of mind? In 2026, staying on top of your tax declarations is non-negotiable – play by the rules to stick around for the long haul, particularly with HMRC's eagle eyes in the UK.

Vitalik Buterin chimes in: DApps as the web's bulwark against outages

The massive Cloudflare and AWS blackouts of 2025 left crypto platforms in the lurch, prompting Vitalik to highlight how decentralised apps cut reliance on centralised giants. DApps bring scalability, resistance to censorship, and robust privacy – they're pivotal for crafting a more bulletproof internet. How many genuine DApps have you actually tinkered with? Centralised services are a breeze until they crumble, leaving you high and dry – does that hit home, especially after those frustrating UK broadband wobbles?

Bithumb unearths £150m in forgotten crypto stashes, revealing retail dormancy

The Korean exchange Bithumb has dusted off 2.6 million inactive accounts, unearthing over £150m in crypto that's been gathering dust – some untouched for 12 years. Early buys have ballooned by more than 60,000 times, outpacing even Bitcoin's gains. What does this tell us? Plenty of retail holders scooped up coins and promptly forgot about them, riding out volatility without a flinch. Got any 'lost gems' lurking in your wallet? One day, they might just turn your fortunes around.

A packed week: upbeat vibes mask lurking risks

Bitcoin's clawed back to near £68,000, eyeing that £69,000 leverage threshold, sparking fresh FOMO fever. Yet geopolitical jitters, debt clouds, and cyber threats loom large, ready to detonate. Will 2026 deliver stability in crypto, or another rollercoaster ride? Prioritising security, compliance, and diversification feels more crucial than ever this year.

Crypto's never short on tales, but it's the survivors who reap the rewards. With 2026 underway, chances and traps abound. How are you navigating it? Stay informed, think twice before leaping, and you'll be positioned for the next bull run. Mates, stay sharp and keep watching!

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