Crypto Morning News: Zcash Development Team Resigns En Masse; Trump Says He's Not Considering Pardoning SBF

Author: TechFlow

Yesterday's Market Developments

U.S. Initial Jobless Claims for the Week Ending January 3: 208,000, vs. Expected 210,000

Initial jobless claims in the U.S. for the week ending January 3 came in at 208,000, below the expected 210,000. The prior week’s figure was revised upward from 199,000 to 200,000.

Trump: I Won’t Consider Pardoning SBF

According to The New York Times, former U.S. President Donald Trump stated in an interview that he would not consider pardoning FTX founder Sam Bankman-Fried (SBF).

The report also revealed that music artist Sean Combs (Diddy) had written to Trump requesting a pardon but was similarly rejected. In contrast, Trump has previously exercised his pardon power in favor of certain political allies or individuals supporting his narrative of a "politicized justice system," but SBF is not among those under consideration.

Earlier reports indicated that SBF was convicted in 2023 on multiple charges including misappropriation of customer funds and financial fraud.

Trump: I Don't Need International Law; My Power Is Limited Only by My Own Morality

According to Lianhe Zaobao, former U.S. President Donald Trump claimed that his “own moral compass” is the sole constraint on ordering military actions globally.

This statement came days after Trump reportedly launched a swift operation to overthrow Venezuelan President Maduro, while threatening similar actions against numerous other countries, including Greenland.

In a Wednesday (January 7) interview with The New York Times, Trump was asked whether there were limits to his global authority. He responded, “Yes, one limit—my own moral judgment, my own thinking. That’s the only thing that constrains me.”

He added, “I don’t need international law. I have no intention of harming others.”

The Republican president went on to say that he “does” need to follow international law, but “it depends on how you define it.”

AFP reported that the United States is not a member of the International Criminal Court (ICC), which prosecutes war crimes, and has repeatedly rejected rulings from the UN’s top court, the International Court of Justice (ICJ).

Foreign Media: Wall Street and Crypto Industry Hold Private Talks on Crypto Bill, Achieve 'Progress'

According to Decrypt, the Wall Street trade group SIFMA held private meetings on Thursday with representatives from the decentralized finance (DeFi) crypto sector, aiming to resolve key disagreements ahead of a critical Senate vote on the crypto market structure bill next week.

Sources said the talks made “progress” on DeFi-related issues. SIFMA has recently opposed regulatory exemptions in the bill for certain DeFi services and developers. Additionally, SIFMA and banking lobbying groups are pushing to ban yield-bearing dollar stablecoins, despite such stablecoins being implicitly permitted under the GENIUS Act signed by President Trump last year.

Senate Banking Committee Chairman Tim Scott plans to hold a pivotal review of the bill next Thursday. Most stakeholders believe the bill must secure bipartisan support during the committee stage to stand a chance of passing in a full Senate vote.

Grayscale BNB ETF Registered in Delaware, USA

Early this morning, it was disclosed that the Grayscale BNB ETF has been registered in Delaware, USA, as of January 8, 2026.

Lookonchain: Truebit Possibly Hacked, Losing ~$26.44M in ETH

According to blockchain analytics platform Lookonchain (@lookonchain), the Truebit protocol may have been hacked, with approximately 8,535 ETH (worth about $26.44 million) stolen.

Optimism Foundation Proposes Using 50% of Superchain Revenue to Buy Back OP Tokens

Per an official announcement, the Optimism Foundation proposed a new plan on January 8, 2026, to allocate 50% of Superchain revenue toward buying back OP tokens. The proposal aims to transform OP from a pure governance token into an asset directly tied to the growth of the Superchain ecosystem. Over the past 12 months, the Superchain has generated 5,868 ETH in revenue for the foundation. If approved in the January 22 vote, the buyback program will officially launch in February. Repurchased tokens will go into a treasury for potential future burning or staking rewards.

Zcash Core Development Team Exits En Masse; CEO Announces New Company

Josh Swihart, CEO of Electric Coin Company (ECC), the core development team behind Zcash, announced on Twitter that the entire ECC team has resigned. The reason cited was a clear misalignment between the majority of Bootstrap’s board members—an organization supporting Zcash responsible for managing ECC—and the mission of Zcash. Swihart stated that Bootstrap board members Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai altered the team’s employment terms, rendering them unable to function effectively. The ECC team will form a new company but remain committed to the same mission: building unstoppable private currency. Swihart emphasized that the Zcash protocol itself is unaffected by this event, and the decision was made to protect the team’s work from malicious governance interference.

AC’s New Project Flying Tulip Announces Intent Whitelist Now Live

Flying Tulip officially announced that its Intent Whitelist is now live, accessible only to users who scored 7/10 or higher on the Flying Tulip Accredited Investor Quiz. The team emphasized that no fund transfers are involved at this stage, and whitelist allocations for previous supporters remain adjustable. Future instructions will be released exclusively through official Flying Tulip channels.

Prior news: Andre Cronje’s new project Flying Tulip secured $200 million in funding, with participation from DWF Labs, FalconX, and others.

Coinbase CEO Conducted 88 Stock Sales Under 10b5-1 Plan, Never Purchased

According to CEO Watcher, Brian Armstrong, CEO of cryptocurrency exchange Coinbase, has never purchased $COIN stock under his 10b5-1 trading plan. Data shows Armstrong executed 88 stock sales but zero purchases.

Previously, Coinbase CEO responded to criticism over selling COIN shares: “It’s impossible to keep 99.999% of your assets in a single stock forever.”

Shanghai No.2 Intermediate Court Symposium: Holding or Trading Cryptocurrencies Personally Generally Not Classified as Illegal Business Operations

The Shanghai No.2 Intermediate People’s Court recently held a symposium titled “Legal Consistency in Cases Involving Cryptocurrency Crimes,” analyzing three key topics:

1. Determining “subjective knowledge” in cryptocurrency-related money laundering crimes should involve comprehensive assessment to avoid objective attribution of guilt.

2. Regarding types of conduct and criteria for completion in crypto-related money laundering: First, accurately grasp the essence of the crime—“concealing or disguising the source and nature of criminal proceeds and their gains”; second, committing acts defined in the elements of money laundering constitutes completed offense; third, strictly enforce anti-money laundering laws to safeguard national financial security.

3. On identifying illegal business operations involving cryptocurrency: Activities lacking characteristics of commercial operation, such as personal holding or trading of crypto assets, generally do not constitute illegal business operations. However, if someone knowingly assists others in illegal foreign exchange trading or disguised forex transactions via cryptocurrency conversion, and the circumstances are serious, they may be deemed accomplices to illegal business operations.

Caixin Reveals Chen Zhi’s Domestic Asset Details: Holds 17.78% Stake in Xiamen Jueshi Wushen Interactive Technology, Former Controlling Shareholder of Medical Device Firm

Caixin disclosed details of Chen Zhi’s assets within China. He holds a 17.78% stake in Xiamen Jueshi Wushen Interactive Technology Co., Ltd., a mobile game development company, and a 70% stake in Chongqing Qusoo Infinite Equity Investment Fund Management Co., Ltd., which has invested in several interactive entertainment tech firms. Chen was also the controlling shareholder of Jiangmen Dacheng Medical Devices Co., Ltd., a medical equipment company, holding over 56% of its shares.

Additionally, Chen is the controlling shareholder of two listed companies in Hong Kong, along with multiple insurance brokerage firms, securities firms, wealth management companies, and shell companies with unclear operations. Chen took control of Zhihaoda in December 2018, directly serving as chairman and executive director after acquiring 54.79% of its equity, until resigning all positions in July 2025. In 2023, Chen acquired all shares previously held by the original major shareholder of Kun Group, securing absolute control with a 55% stake, though he did not assume an executive director role. Currently, neither of these listed companies has suspended trading and both issued statements saying sanctions will not materially impact their business operations.

Market Movements

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