CZ Identifies Privacy Gap As Barrier To Crypto Adoption

GM. Changpeng Zhao flagged the lack of onchain privacy as the top barrier to crypto payroll, noting that transparent ledgers create security risks for businesses.

Meanwhile, Nexo returned to the USA via Bakkt, Vitalik Buterin proposed AI hedging for prediction markets, and Kevin O'Leary won a $2.8 million lawsuit.

Here are the details on privacy, market pivots, and legal wins. 👇

CZ Identifies Privacy Gap As Barrier To Crypto Adoption

Pardoned visionary Changpeng Zhao identified the stark absence of transactional privacy as the primary barrier preventing the wholesale adoption of digital assets. He argued that current transparent ledgers expose users to extreme security risks and corporate espionage.

The critique surfaced on 15 February 2026 across global social networks following Zhao's appearance on a major technology podcast. This timely intervention targets the underlying software transparency that currently prevents businesses from utilizing onchain payroll.

Leadership maintains that Bitcoin’s pseudo-anonymous architecture remains insufficient because centralized exchanges with KYC allow third parties to track physical movements. Consequently, the industry requires a massive shift toward privacy-preserving infrastructure to mirror traditional cash protections.

Engineers must evolve cryptographic features beyond niche privacy coins to satisfy both regulatory compliance and fundamental human safety requirements. Zhao urged the community to prioritize these advancements immediately to ensure that DeFi eventually captures mainstream markets.

Nexo Partners With Bakkt For United States Return

Digital asset platform Nexo announced its official return to the United States market this Monday morning. The firm is relaunching its flagship credit lines and yield products by utilizing trading infrastructure provided by Bakkt. This specific move provides a compliant framework for Nexo to serve domestic customers following its $45 million settlement with regulators in 2023.

The company previously phased out its American services after facing intense scrutiny over its retail lending interest product. Nexo currently manages over $11 billion in assets and aims to operate within the evolving federal regulatory landscape. This relaunch is structured through various partnerships with licensed service providers to ensure all offerings meet current legal standards.

Vitalik Buterin Proposes Pivot For Prediction Markets

Ethereum co-founder Vitalik Buterin urged prediction market platforms this Friday to move away from speculative gambling. He argued that the sector should prioritize AI-powered hedging tools that help users offset real-world costs like food. This proposal suggests that decentralized markets can provide major societal value by tracking regional price indices instead of short-term token movements.

Buterin expressed concerns that current platforms depend too heavily on retail traders losing money to informed participants. He believes that denominating shares in interest-bearing instruments could eventually eliminate the need for traditional fiat-pegged stablecoins. This critique arrives as the industry processed over $44 billion in volume during the record-breaking 2025 calendar year.

Kevin O'Leary Wins Defamation Suit Against BitBoy

A Florida federal judge entered a $2.8 million default judgment against content creator Ben Armstrong this Thursday afternoon. The ruling follows a defamation lawsuit filed by investor Kevin O'Leary regarding false claims made on social media in 2025. This award includes $2 million in punitive damages because Armstrong failed to provide a substantive response throughout the legal proceeding.

The case centered on various posts where Armstrong accused the television personality of concealing involvement in a fatal accident. These specific allegations reached over 156,000 views and led to a temporary suspension of Armstrong’s account on the X platform. While the judgment is substantial, investigators suggest that collecting the funds may be difficult due to the defendant's insolvency.

Data of the Day

Digital asset investment products logged a fourth consecutive week of net outflows totaling $173 million this Monday. CoinShares reported that over $3.74 billion has been withdrawn from global funds like BlackRock and Fidelity during the past month. This specific trend indicates that while selling pressure is currently moderating, institutional investors remain cautious amid the recent period of price weakness.

Bitcoin ETF products absorbed the largest share of these redemptions while United States funds accounted for the majority of regional exits. In contrast, certain altcoins like XRP and Solana managed to draw a combined $64.4 million in fresh capital last week. Trading activity also cooled notably as total exchange-traded volumes fell to $27 billion from the previous record highs.

Global Crypto Products Record Fourth Week Of Outflows

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Written by 

Jed Barker

Editor-in-Chief

Jed, a digital asset analyst since 2015, founded Datawallet to simplify crypto and decentralized finance. His background includes research roles in leading publications and a venture firm, reflecting his commitment to making complex financial concepts accessible.