Crypto Morning Brief: Flow protocol attacked; major token unlocks expected this week for HYPE, SUI, EIGEN, and others

Author: TechFlow

Yesterday's Market Dynamics

Bank of Japan Meeting Summary: Stable Rate Hikes Every Few Months Needed Going Forward

Summary of Bank of Japan meeting comments: One member stated that the BOJ must maintain an interest rate hike roughly every few months for some time. Even if the policy rate is raised to 0.75%, Japan’s real interest rate will remain deeply negative.

Lighter AMA: 50% of Token Supply Allocated to Community, Token Buyback Mechanism Confirmed

@Pilla_eth, Market Lead at Lighter, shared details about their TGE during an AMA titled "Lighter TGE" today. Key points include:

1. TGE and airdrop will occur in 2025. The airdrop will account for 25% of total supply with no lock-up restrictions. It requires no claim and will be directly deposited into积分 holders’ Lightner wallets.

2. 50% of token supply will go to the community. More tokenomics details will be released gradually. There will be a buyback mechanism, though the exact amount has not been finalized. “Thus, value will flow to the token.”

3. LIT tokens will initially only be tradable on the Lighter platform. Coinbase and Bybit have added LIT to their roadmaps. They will not pay for listings.

4. There will be no official Lighter NFTs, but certain community NFTs like Fuego are recognized. Meme coin airdrops are just rumors.

In addition, @Pilla.eth revealed that Lighter is developing “a mobile app capable of rivaling CEX applications.”

Trust Wallet: Over 2,630 Claims Received, Amounting Between $1.05M and $3.5M

Eowync.eth, CEO of Trust Wallet, provided an update on the security incident: Trust Wallet has received over 2,630 support tickets related to claims, with amounts ranging from $1.05 million to $3.5 million. The customer support team is working hard to process these as quickly as possible.

Flow: Hacker Did Not Access Existing User Balances, All Deposits Secure

Flow announced on X that on December 27, 2025, an attacker exploited a vulnerability in Flow’s execution layer to transfer approximately $3.9 million worth of assets before network downtime. The attack did not access existing user balances—user deposits remain secure.

The $3.9 million was primarily moved via bridges such as Celer, Debridge, Relay, and Stargate. The attacker’s wallet has been identified and flagged, and laundering attempts through Thorchain and Chainflip are being tracked in real-time.

The Flow Foundation has submitted freeze requests to Circle, Tether, and major exchanges. The network has been halted to cut off all exit paths, and the fix is undergoing final verification. Confirmed outflows are under control and do not threaten network solvency or user fund safety.

The target restart window is within 4 to 6 hours, depending on testnet validation results. FindLabs is releasing forensic data including transaction hashes and the attacker’s Ethereum wallet address.

Uniswap Treasury Burns 100 Million UNI, Worth $596 Million

According to on-chain analyst Yujin, after Uniswap’s fee burning proposal passed two days ago, 100 million $UNI ($596 million) were burned from the Uniswap treasury at 4:30 AM today.

Under this proposal, future fees collected by Uniswap will also be used for UNI token burns.

Huma Responds to Some Users Losing Vanguard Badge: Proposes Extending Staking Requirement Grace Period to January 5

PayFi protocol Huma Finance announced on X that some users reported losing their Vanguard badge after Season 2 airdrop launched. In fact, holders must continuously meet staking requirements to retain the badge—either holding 10,000 HUMA tokens or staking 100% of their airdropped tokens. Some users were unaware of this ongoing requirement. Huma Finance has temporarily restored the Vanguard badges and set a grace period ending at 00:00 UTC on January 5, 2026.

Bit.com Announces Orderly Wind-Down of Current Operations and Launches “User Asset Migration Program”

According to an official announcement, due to business adjustments, cryptocurrency exchange Bit.com will orderly wind down its current operations and simultaneously launch a “User Asset Migration Program.”

Bit.com commits to completing all transparent and traceable user asset migrations within a defined timeframe.

As of today, new user registrations on Bit.com are suspended. Existing users can still log in, view assets, and participate in the migration process.

All spot assets will remain queryable. Spot trading will cease on January 31, 2026.

All users holding futures account balances, positions, or unsettled PnL on Bit.com will immediately cease opening new positions and are allowed only to close existing ones.

Former Alameda CEO Caroline Ellison to Be Released Next Month, About 10 Months Early

According to The Block, records from the Federal Bureau of Prisons show that former Alameda Research co-CEO Caroline Ellison will be released from federal custody on January 21, 2026.

The 31-year-old Ellison was transferred from a federal prison in Connecticut to a community confinement facility in October 2025. She pleaded guilty in December 2022 to fraud and conspiracy charges related to the collapse of crypto exchange FTX, which resulted in billions of dollars in customer losses.

Ellison was sentenced in September 2024 to two years in prison and forfeiture of $11 billion. However, due to good behavior and cooperation during the FTX investigation, she will be released approximately 10 months earlier than scheduled. Earlier this month, she also agreed to a 10-year ban from serving as an executive at public companies or crypto exchanges.

Meanwhile, FTX founder Sam Bankman-Fried is actively seeking a presidential pardon and is expected to be released in September 2044.

Academic Journal Under Supreme People’s Court Publishes Article: Commercial Law Reform for Digital Transactions, Electronic Money, and Virtual Property

The official WeChat account of the Supreme People’s Court published an article titled “Commercial Law Reform for Digital Transactions, Electronic Money, and Virtual Property” in its academic journal *Digital Rule of Law*. The article notes that the revised Uniform Commercial Code (UCC), jointly updated by the Uniform Law Commission and the American Law Institute, was formally adopted in 2022 and widely enacted by U.S. state legislatures. The revision embraces diverse transaction forms including electronic formats, clarifies the relationships among physical currency, central bank digital currencies, and other virtual currencies, creates a new property category called “Controlled Electronic Records,” and establishes clear rules for control and transfer of such assets.

China’s civil and commercial legal framework should also evolve with developments in digital transactions, electronic money, and virtual property, pursuing practice-oriented legal improvements to stimulate economic and technological growth and gain advantage in international institutional competition.

Michael Saylor Posts Bitcoin Tracker Again, May Accumulate BTC Next Week

Michael Saylor posted updated Bitcoin Tracker information on X, stating “Back to Orange.”

Based on past patterns, Strategy typically discloses Bitcoin accumulation the day after such messages are posted.

This Week, Tokens Including HYPE, SUI, EIGEN Face Large Unlock Events

According to Token Unlocks data, major unlocks are expected this week for tokens such as HYPE, SUI, and EIGEN:

HYPE will unlock 9.92 million tokens at 3:30 PM on December 29, valued at ~$251 million, representing 2.87% of circulating supply;

SUI will unlock 43.69 million tokens at 8:00 AM on January 1, valued at ~$63.36 million, representing 1.17% of circulating supply;

EIGEN will unlock 36.82 million tokens at 12:00 PM on January 1, valued at ~$14.44 million, representing 9.74% of circulating supply;

KMNO will unlock 229 million tokens at 8:00 PM on December 30, valued at ~$11.71 million, representing 5.35% of circulating supply;

OP will unlock 31.34 million tokens at 8:00 AM on December 31, valued at ~$8.6 million, representing 1.65% of circulating supply;

ENA will unlock 40.63 million tokens at 3:00 PM on January 2, valued at ~$8.6 million, representing 0.56% of circulating supply;

SVL will unlock 234 million tokens at 8:00 AM on December 30, valued at ~$6.8 million, representing 2.96% of circulating supply;

ZORA will unlock 166 million tokens at 8:00 AM on December 30, valued at ~$6.7 million, representing 4.17% of circulating supply.

Market Update

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