AI’s next trade could be altcoins

July 22, 2026

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Reading time: 5 minutes

HTX wallet churn tests the UK’s sanctions playbook

Key points:

  • TRM Labs said HTX rotated wallets across TRON, Ethereum, BNB Smart Chain, and Solana after the UK sanctioned Huobi Global S.A.

  • HTX called the activity routine and security-driven, while the lack of U.S. or EU sanctions meant the designation’s formal freeze obligations applied only to UK-regulated firms.

News - HTX remained operational after the UK’s May 26 designation of Huobi Global S.A., but its on-chain infrastructure became harder to track, according to TRM Labs.

The blockchain intelligence firm said HTX retired hot wallets and funding addresses within hours, shifting activity to fresh infrastructure before static compliance lists could catch up. TRM described the pattern as a “continuous moving target” for screening teams.

A blacklist that ages in hours - Traditional sanctions controls often depend on known wallet addresses. TRM argued that this model weakens when an exchange repeatedly retires addresses across several blockchains, because newly activated wallets may process activity before being attributed.

The firm said behavior-based monitoring, which links wallets through transaction patterns, is better suited to identifying fresh infrastructure.

HTX disputes the interpretation - HTX said the wallet changes reflected routine security practices common across the industry and rejected TRM’s characterization of the activity. The exchange also argued that Huobi Global S.A. is legally distinct from the online HTX platform, while UK authorities said HTX remained covered because of ownership links.

The jurisdiction gap remains - TRM noted that neither OFAC nor the European Union had designated HTX at publication. That left formal freeze obligations concentrated among UK-regulated firms, even as TRM urged compliance teams elsewhere to treat HTX as an elevated sanctions-evasion risk.

Franklin Templeton folds altcoins into the AI trade

Key points:

  • Sandy Kaul said autonomous AI agents could use blockchains for micropayments, creating new fee demand for native tokens.

  • The thesis broadens AI investing beyond stocks, although greater network activity does not guarantee altcoin price appreciation.

News - Franklin Templeton is reframing the agentic AI trade around the infrastructure autonomous software may need to transact, not just the companies building models, chips, and data centers.

Sandy Kaul, the firm’s Head of Digital Assets and Innovation, cited estimates that agentic commerce could reach $3 trillion to $5 trillion by 2030. As agents pay for computing, APIs, data, and digital services, the networks settling those transactions could capture part of that growth.

The overlooked layer in AI portfolios - Investors seeking AI exposure have largely focused on publicly traded technology companies. Kaul’s thesis adds another route: altcoins powering the blockchains on which agents transact.

An agent using Solana, for example, would need SOL to pay network fees. Rising machine activity could therefore increase demand for native assets.

Micropayments set the technical test - Card rails carry fixed charges, percentage fees, and delayed settlement that can make sub-cent transactions impractical. Kaul highlighted Aptos, Solana, and BNB Chain as faster alternatives for programmable payments.

Early infrastructure is emerging. Coinbase’s x402 protocol processed $15 million in adjusted volume across more than 109 million adjusted transactions after launching in May 2025, according to Visa and Artemis.

Altcoin demand still needs value capture - More transactions do not automatically reward token holders. Supply, fee-burning mechanisms, competition, reliability, and revenue distribution will determine whether agentic activity creates lasting value. The thesis depends on winning networks converting AI usage into sustained demand for their native tokens.

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U.S. targets $25M crypto scam pipeline

Key points:

  • Federal prosecutors filed five civil forfeiture complaints seeking more than $25 million in crypto tied to romance, investment, and recovery scams.

  • Secret Service investigators traced funds through hundreds of intermediary wallets, with suspected laundering activity linked largely to Southeast Asia.

News - U.S. prosecutors are seeking the forfeiture of more than $25 million in cryptocurrency allegedly connected to international scams targeting victims across the United States and Canada.

The five complaints, filed in the U.S. District Court for the District of Columbia, stemmed from separate Secret Service investigations into fake investment platforms, online romance schemes, and a fraud that promised to recover money stolen in an earlier scam.

Two cases account for most of the claim - The largest complaint sought roughly $12.1 million tied to romance scams affecting more than 200 victims. Another targeted about $10.4 million connected to more than 270 suspected victim transactions flagged by Canadian authorities.

The remaining complaints sought approximately $2.39 million, $1.23 million, and $285,000.

The money trail crossed hundreds of wallets - Investigators said stolen funds moved through intermediary addresses and were commingled with proceeds from other victims. Prosecutors linked much of the laundering activity to Southeast Asia, citing related IP addresses in China, Malaysia, and Cambodia.

One loss opened the door to another - In the recovery scam, fraudsters approached someone who had already lost money and offered to retrieve it for a fee. The tactic extended the scheme beyond the original theft by exploiting the victim’s attempt to recover funds.

The cases form part of the Scam Center Strike Force, launched in November 2025. Authorities said its recoveries now exceed $800 million, while the five underlying investigations remain open.

Zilliqa’s Ledger flaw turns past signatures into lasting risk

Key points:

  • Zilliqa suspended native transactions after confirming that a Ledger app flaw could expose private keys from roughly five affected signatures.

  • Upbit placed ZIL under cautionary status, suspended deposits and withdrawals, and warned that trading support could be terminated.

News - A critical vulnerability in every Zilliqa Ledger app version since 2019 has made some private keys recoverable from transaction signatures recorded on-chain.

Zilliqa observed activity consistent with exploitation on July 19 and isolated the cause on July 21. The flaw weakened the temporary nonces used in native Schnorr signatures, allowing attackers to reconstruct a signer’s private key using publicly available data.

A patch cannot erase the evidence - A corrected app is being prepared with Ledger, but it cannot protect keys already exposed through historical signatures. Accounts that broadcast approximately five or more native transactions through the affected app should be treated as compromised.

Users were told to await the coordinated recovery process, since an attacker with the reconstructed key could act first. Affected keys must ultimately be retired.

The blast radius is limited - The vulnerability sits in the app’s native Zilliqa signing path, not Ledger’s core hardware or Zilliqa’s blockchain. EVM-compatible transactions, software wallets, and Zilliqa development kits were reported as unaffected.

Upbit adds delisting pressure - Upbit designated ZIL as a cautionary asset across its KRW and BTC markets and kept deposits and withdrawals suspended. The exchange could end trading support if Zilliqa’s remediation does not satisfy its review.

That turns the recovery plan into more than a security fix. Zilliqa must migrate affected balances safely while addressing the exchange risk created by keys that can no longer be trusted.

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Did you know?

  • The FBI built a crypto token to catch its own market manipulators: In 2024, U.S. law enforcement created NexFundAI as part of an undercover investigation, then approached firms accused of offering to inflate the token’s trading activity through wash trades. The operation contributed to charges against 18 individuals and entities in what the Justice Department called its first criminal prosecution of crypto financial services firms for market manipulation.

  • UNICEF lets some crypto donations stay crypto: UNICEF launched the first cryptocurrency fund within the United Nations system in 2019, allowing it to receive, hold, and disburse Bitcoin and Ether. Contributions were designed to remain in the cryptocurrency received and be granted to technology projects in that same form.

  • Wall Street was mining Bitcoin before most clients could buy it: Fidelity says it began mining Bitcoin in 2014, four years before establishing Fidelity Digital Assets. The experiment gave one of the world’s largest traditional asset managers direct crypto experience long before regulated spot products reached mainstream investors.

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Top 3 coins of the day

Aave (AAVE)

Key points:

  • AAVE rebounded from roughly $88 and held above both moving averages, but the 20 SMA at $92.58 remained just below the 50 SMA at $93.

  • The Awesome Oscillator climbed to 4.76 as momentum improved. Support sits at $94 to $95, while $98 to $100 remains the next major test.

What you should know:

AAVE repaired much of its short-term damage without fully confirming a trend reversal. Price recovered from roughly $88, reclaimed the $92.50 to $93 moving average cluster, and consolidated near $96 as the Awesome Oscillator advanced to 4.76. The 20 SMA had turned sharply higher but remained slightly below the 50 SMA, leaving the bullish crossover incomplete. The recovery coincided with Aave V4 deposits crossing $300 million and the rollout of Aavenomics 3.0’s automated, protocol-fee-funded AAVE buyback mechanism. Holding $94 to $95 keeps the rebound structure intact, while a move through $98 to $100 would clear the nearest resistance zone and strengthen continuation toward $102.

Uniswap (UNI)

Key points:

  • UNI turned its dip toward $3.44 into a return to the $3.80 to $3.85 ceiling, while the 20 SMA at $3.621 crossed above the 50 SMA at $3.606.

  • Squeeze Momentum expanded to 0.184 as buying pressure strengthened. Support sits at $3.70 to $3.72, followed by the $3.60 to $3.62 MA cluster.

What you should know:

UNI arrived at the top of its July range with both technical and governance momentum behind it. Price climbed from $3.44 toward $3.80, while the 20 SMA crossed above the 50 SMA and Squeeze Momentum expanded to 0.184. The advance coincided with a July 19 to July 26 governance vote on activating protocol fees across several Uniswap deployments, alongside a proposed UNI buyback-and-burn mechanism. Protocol activity added another layer, with weekly trading volume exceeding $15 billion and Robinhood Chain contributing roughly $6 billion. A close above $3.85 strengthens the breakout case toward $3.90, while losing $3.70 to $3.72 risks a retest of the $3.60 to $3.62 MA cluster.

Hedera (HBAR)

Key points:

  • HBAR accelerated from its $0.0655 to $0.066 base and reclaimed $0.070 before the latest candle paused beneath $0.0715 to $0.072 resistance.

  • Squeeze Momentum reached 0.00269 as the rebound intensified. Support sits at $0.070 to $0.0705, followed by $0.0685 to $0.069.

What you should know:

The latest red candle interrupted HBAR’s advance without yet undoing it. Price had climbed from the $0.066 floor, cleared $0.070, and reached $0.0715 as Squeeze Momentum expanded to 0.00269. The active candle carried 7.53 million in volume, while its pullback remained above the immediate breakout area. Sentiment also drew support from Canary’s spot HBAR ETF recording a reported $540,000 net inflow on July 20 and Hedera partnering with Utila on MPC-based institutional custody infrastructure. Holding $0.070 to $0.0705 keeps the rebound intact, while a break above $0.072 opens the next resistance zone at $0.073 to $0.074.

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