THE BLOCK: Crypto longs lost $404 million in four hours as bitcoin briefly dipped below $80,000, with ether liquidations close to bitcoin's despite having only 18% of its market cap. Spot bitcoin ETFs shed $773 million over two days, and Arthur Hayes says he "dumped it all."

THE BLOCK: A judge dismissed the LIBRA case against Argentine President Javier Milei, Hayden Davis and nine others, finding no “criminally relevant deception.” Milei's opposition alleges a cover-up while investors removed from the case pursue a path to appeal the ruling.

THE BLOCK: Sen. Richard Blumenthal is demanding answers from Tether following a report from The Wall Street Journal that found the company paid millions of dollars to a consulting firm co-founded by former White House digital asset advisor Bo Hines. Hines is now the CEO of Tether U.S. "Tether’s alleged multimillion-dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anticorruption, and lobbying laws," Blumenthal said.

NEW: Israeli Prime Minister Benjamin Netanyahu said he has requested a plan to explore blockchain as one way to help Israel counter possible economic sanctions, including banking restrictions, during an interview with Channel 10. Netanyahu did not provide details on how the proposed system would work. He also said U.S. military aid to Israel would eventually end, without giving a timeline.

ICYMI: Over 70% of Robinhood's stock-token volume trades outside US exchange hours, per Robinhood SVP and GM of International & Crypto @JohannKerbrat. "The world doesn't stop turning on Friday night." Although still in their infancy, tokenized equities could prove orders of magnitude faster than traditional markets.

THE BLOCK: Initia has halted its Layer 1 and rollups following a security incident. Early reports claim an attacker minted tokens without limit, while onchain data shows a 1,135 ETH transfer worth roughly $2.7 million. Initia said it is still investigating the full impact.