A federal court sentenced Marlon Ferro, 20, of Santa Ana, California, to 78 months in prison for his role in a crypto theft conspiracy that stole more than $250 million from victims across the United States. Strategy said on its first-quarter earnings call that it would probably sell some Bitcoin to help fund dividend payments, a shift from its longstanding approach of holding the asset while raising capital through stock and preferred securities. Coinbase is cutting about 700 jobs, or roughly 14% of its global workforce, as it reorganises around AI, with expected restructuring charges of $50 million to $60 million. Ondo Finance, Ripple, Mastercard, and JPMorgan’s Kinexys unit completed a cross-border, cross-bank redemption pilot for a tokenised U.S. Treasury fund on the XRP Ledger, with settlement completed in under 5 seconds outside traditional banking hours. Ethereum traded near $2,325 as U.S.-listed spot Ether ETFs recorded more than $250 million in net inflows over the past three sessions, putting focus on whether price can clear nearby resistance at $2,347.

Today’s stories all sit on the same axis: crypto is being forced to prove itself through operational discipline rather than narrative alone. The Ferro sentencing shows how law enforcement is responding to theft schemes that now span both digital compromise and real-world targeting. Strategy’s dividend discussion turns Bitcoin from a pure treasury conviction into a funding instrument with liabilities attached, while Coinbase’s cuts show a major exchange redesigning its cost base around automation. The XRP Ledger pilot matters because it tested whether tokenised assets can actually redeem into bank money across institutions, and Ethereum’s ETF-driven setup shows that even market momentum is increasingly being mediated by regulated capital flows.

California man sentenced in $250 million crypto theft conspiracy

A federal court has sentenced Marlon Ferro, 20, of Santa Ana, California, to 78 months in prison for his role in a crypto theft conspiracy that stole more than $250 million from victims across the United States. The case covered a coordinated operation rather than a single isolated breach, and Ferro pleaded guilty to racketeering conspiracy.

According to the case, the scheme used hacks, stolen data, fake phone calls, and other social-engineering tactics to gain access to accounts or persuade victims to surrender credentials. When those methods failed, Ferro was sent to steal hardware wallets directly, extending the operation from online compromise into physical targeting.

The conspiracy ran from late 2023 into early 2025. In addition to the prison term, Ferro will serve supervised release and pay restitution, reflecting the scale and duration of the operation.

The case stands out because it illustrates how crypto theft tactics have evolved beyond phishing links and account takeovers. With stolen personal information potentially leading directly to a person, a device, and the assets held on it, the boundary between cybercrime and physical threat has narrowed.

Strategy signals Bitcoin sales to help fund dividends

Strategy, the company with the largest corporate Bitcoin position, indicated on its first-quarter earnings call that it would probably sell some Bitcoin to fund dividend payments. Executive chairman Michael Saylor’s remarks marked a notable change in tone from the company’s longstanding approach of holding Bitcoin indefinitely while raising funds through stock and preferred securities.

At the end of the quarter, Strategy held 818,334 Bitcoin acquired at an average price of $75,537 per coin. Against that, the company faces roughly $1.5 billion in annual dividend obligations, creating a practical funding question over whether those commitments can be met in cash without using part of its Bitcoin holdings.

Saylor’s comments suggested Bitcoin sales could sit alongside borrowing and capital raising as part of the company’s toolkit for meeting those obligations. Executives described a model in which the holdings can support digital credit and digital equity, and potentially selective sales if required.

The shift does not amount to a retreat from Strategy’s pro-Bitcoin position. It does, however, show that once a Bitcoin treasury is paired with fixed shareholder payouts, the asset may need to function not only as a long-term reserve but also as a source of liquidity.

Coinbase cuts about 700 jobs in AI restructuring

Coinbase is cutting about 700 jobs, or roughly 14% of its global workforce, as it reorganises around AI. Chief executive Brian Armstrong told staff that AI is changing how the company operates and that smaller teams can now do work that previously required much larger groups.

The restructuring is also intended to flatten the organisation by removing management layers, as Coinbase pushes for faster execution. The company expects $50 million to $60 million in restructuring charges, most of them in the second quarter.

The move is not framed only as a cost-cutting exercise. Coinbase is signalling that it believes a large crypto company can automate more work, rely on fewer people, and operate with a leaner structure than before.

That makes the announcement more than a headcount update. It is an operational bet that AI can reshape how a major exchange allocates labour, compresses decision-making, and pursues efficiency at scale.

XRP Ledger pilot completes tokenised Treasury redemption across borders

Ondo Finance, Ripple, Mastercard, and JPMorgan’s Kinexys unit have completed a cross-border, cross-bank redemption pilot involving a tokenised U.S. Treasury fund on the XRP Ledger. In the test, Ripple redeemed part of its holdings in Ondo’s OUSG fund, a tokenised short-term U.S. Treasury product issued on the XRP Ledger.

Mastercard’s Multi-Token Network carried the payment instruction across networks, while JPMorgan’s Kinexys platform delivered dollars through bank rails to Ripple’s bank account in Singapore. The transaction settled in under 5 seconds and took place outside traditional banking hours.

The importance of the pilot lies in the mechanics rather than the branding. Instead of keeping the transaction entirely within a crypto-native system, the test linked a tokenised Treasury on a public blockchain with conventional cross-border bank settlement.

That matters because redemption is the harder operational step in tokenised finance: turning a blockchain-based claim on a Treasury fund back into bank money that can move between institutions. The pilot showed how that handoff could work across blockchain and banking layers, with each participant handling a separate function.

Ethereum approaches breakout area as ETF inflows recover

Ethereum was trading near $2,325, with attention shifting to ETF flows as U.S.-listed spot Ether ETFs recorded more than $250 million in net inflows over the past three sessions. The latest session accounted for nearly $98 million, reversing the pattern seen at the end of April, when four straight sessions of outflows totalled $184 million.

The immediate market setup is centred on whether renewed inflows can support price at nearby technical levels. Traders are watching to see whether the return of positive flows produces a corresponding move in Ethereum itself.

Ethereum is holding just above $2,330, with support at $2,331 and resistance at $2,347. Price is hovering at the upper boundary of recent support, leaving the market close to a level that could define short-term direction.

The inflows are helping to limit downside pressure at support, but the next signal is not simply more fund data. The key test is whether Ethereum can clear $2,347 and turn that resistance level into momentum.

The takeaway

The Ferro case shows crypto crime spilling from digital compromise into physical targeting. Strategy is treating Bitcoin as a potential liquidity source for dividend obligations. Coinbase is shrinking its workforce as it rebuilds around AI. The XRP Ledger pilot tested whether tokenised Treasuries can redeem into bank money across borders. Ethereum is leaning on renewed ETF inflows as it presses against nearby resistance.

The strongest signal is that crypto’s next phase is being shaped by execution constraints: legal enforcement, balance-sheet discipline, operating efficiency, settlement mechanics, and regulated capital flows. The firms and networks that can function across those constraints are the ones setting the pace.