The Daily: Trezor shipping provider breach exposes data of nearly 14,000 customers, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Thursday! Bitcoin remains below $64,000 despite softer inflation data, with analysts pointing to the quietest spot trading since 2019 and warning about increasingly crowded leveraged longs.

In today's newsletter, a breach at Trezor's shipping partner exposes customer data, Delio CEO Jeong Sang-ho is sentenced to 15 years on crypto fraud charges, BitGo sees revenue jump 80% in Q2, and more.

Meanwhile, Goldman Sachs is set to gain bitcoin and ether income ETFs through its acquisition of Neos, in a deal worth up to $2.25 billion.

P.S. Don't forget to check out today's reader poll on self-custody later in the newsletter.

Reminder: We'll be on the ground at SALT's Blockchain Symposium in Jackson Hole Aug. 17-20, with exclusive interviews and coverage of the biggest stories shaping crypto and global finance.

Trezor shipping provider breach exposes personal data of nearly 14,000 customers

A breach at Trezor's shipping provider ShipMonk exposed the personal data of nearly 14,000 customers, including names, phone numbers, and home addresses.

• ShipMonk told the hardware wallet maker on Monday that an unauthorized party had accessed systems holding customer order data, affecting people across the U.S., UK, Sweden, Colombia, Brazil, Italy, and Portugal.
• Trezor said the data breach does not affect its internal systems and that its hardware wallet devices remain secure.
  "This is the first time since Trezor was founded in 2013 that we have experienced a breach that exposed customer phone numbers and shipping addresses," it said.
• Exposed customers now face a higher risk of phishing attempts, the company warned, with attackers likely to impersonate Trezor, banks, or exchanges to try to trick them into providing more sensitive information.
• However, there is also physical danger, with leaked home addresses increasingly helping criminals pick targets for kidnappings and home invasions aimed at forcing victims to hand over crypto holdings.
• The breach echoes rival Ledger's data leaks, including a 2020 incident exposing more than 270,000 customers that continues to fuel scam calls and letters years later.

South Korea sentences Delio CEO to 15 years in prison for $50 million crypto fraud

A Seoul court sentenced Delio CEO Jeong Sang-ho to 15 years in prison, finding him guilty on most charges of defrauding customers of roughly 70 billion won ($49.2 million) in crypto, according to local reports.

• The court convicted Jeong of embezzlement and using false documents to register as a virtual asset service provider, and ordered him to be detained, citing flight risk.
• The sentence fell short of the 20 years prosecutors sought after the judge acquitted him on the main fraud charge, ruling key evidence obtained through a search and seizure of a server operator was collected illegally.
• Delio, which billed itself as a digital asset bank offering high returns on crypto deposits, abruptly froze withdrawals in June 2023 and was declared bankrupt in November 2024.

BitGo sees revenue jump 80% to $4.3 billion in Q2 but posts net loss

Crypto custodian BitGo posted Q2 revenue of $4.33 billion, up 80% year over year, driven by higher digital asset sales and growth in its stablecoin-as-a-service business.

• The firm still swung to a $19 million net loss, down from a $38.3 million profit a year earlier, which it said primarily reflected an $18.8 million unrealized loss on its digital assets.
• BitGo's client count rose 26%, normalized assets on its platform climbed 31% to $65.2 billion, and it also recently authorized a $50 million share buyback program.
• CEO Mike Belshe said the company "streamlined" its costs in Q2, following June's 15% staff cut, while leaning harder into AI across engineering and operations.

Bitwise CIO sees market repricing as crypto embraces 'revenue fever'

Bitwise CIO Matt Hougan argued crypto assets outside bitcoin look underpriced, with valuations potentially doubling or more as investors catch up to the market's shift toward a revenue-driven model.

• Hougan said protocols like Hyperliquid are increasingly using fees to buy back or burn their tokens, with the project burning $1.3 billion of HYPE since November 2024 using about 99% of its fee revenue.
• He said the same "revenue fever" has spread across Uniswap, Aave, Pump.fun, and Lighter, as well as to Layer 1s like Solana and Aptos.
• Hougan suggested a friendlier regulatory backdrop is fueling the shift, citing the resolved Ripple case and Paul Atkins replacing Gary Gensler as SEC chair.

Blockchain Association backs Custodia's Supreme Court bid over Fed master account access

The Blockchain Association filed an amicus brief in support of Custodia Bank's Supreme Court petition against the Fed's denial of master account access, urging the court to review whether regional Fed banks can reject eligible state-chartered banks.

• The group warned that the lower courts' rulings hand federal regulators "a blueprint" to debank disfavored industries without interference from state regulators.
• The Wyoming-based crypto bank was founded by Wall Street veteran Caitlin Long and has fought since 2020 for an account, losing in district court and an appeals decision before petitioning the Supreme Court last month.

Reader poll

After Trezor, Coldcard, and the wrench-attack surge, is self-custody still worth the risk?

YES, STILL WORTH IT

NO, TOO RISKY NOW

One click records your pick. We'll share the answer in a later edition.

Congratulations to the 57% of you in last Thursday's poll who correctly guessed U.S. spot bitcoin ETFs would see net weekly inflows!

In the next 24 hours

• It's quiet on the economic calendar front.

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