Custodial risk stories

Oct 28, 2026

Datavault AI stock crashes 50% after failing to withdraw Bitcoin from Biconomy

Nasdaq-listed Datavault AI shares plunged nearly 50% after the company disclosed it has been unable to withdraw Bitcoin from exchange Biconomy since June and would need to restate financial statements, with the withdrawal tied to a $150 million deal with Scilex.

Oct 28, 20265 sources

Aug 17, 2026

BitMart employees hijack exchange's Chinese account demanding answers on frozen funds

People claiming to be BitMart employees took control of the exchange's Chinese X account, demanding the CEO provide answers by August 19 about frozen user funds and unpaid wages after the exchange shut down.

Aug 17, 20265 sources

Top claims

▪Between September 2025 and January 2026, Datavault AI sold 491.431 Bitcoin from its Biconomy balance back to Scilex Holding Company for $40.5 million in cash
▪Datavault AI is reclassifying the Bitcoin tied to the $150 million Scilex Holding Company stock purchase as a subscription receivable, which presents as a reduction of stockholders' equity rather than a cryptocurrency asset
▪Datavault AI disclosed that it intends to restate the financial statements affected by the Scilex Bitcoin accounting error but has not yet determined the timing of those filings

People involved

Jameson Lopp

Subtopics

Crypto exchanges2 Exchange & custodial failures2 Bitcoin1 Centralized exchanges (CEXs)1 Crypto Accounting1 Crypto custody1 Crypto custody regulation1 Crypto exchange regulation1 Crypto hacks1 Crypto investments1 Crypto investor protection1

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