Crypto Chronicle Weekly Round-Up
The digital frontier is under pressure. Regulatory crackdowns and high-profile hacks this week underscore a stark reality for crypto investors and developers: risk, strategy, and compliance are more critical than ever.
France Targets Cryptocurrency in Wealth Tax Expansion
France is taking decisive action to include digital assets in its wealth tax (Impôt sur la fortune). The National Assembly recently adopted an amendment expanding the tax to cover cryptocurrencies, luxury goods, and select real estate.
Key details:
- Assets exceeding €2 million are taxed at a flat rate of 1%.
- Tax applies to crypto holdings, yachts, vintage cars, art, and collectibles.
- The amendment received support from centrist, socialist, and far-right lawmakers.
Crypto advocates react:
Éric Larchevêque, co-founder of Ledger, warns this could force liquidation of digital assets, undermining crypto as a store of value. France classifies non-fiat holdings as “unproductive wealth,” sparking concerns over ideological bias against decentralized assets.
The message is clear: the digital world cannot operate as usual — vigilance is required.
Balancer Suffers $116 Million Hack
Balancer, a major decentralized exchange (DEX) and automated market maker (AMM), fell victim to a sophisticated exploit, losing approximately $116 million.
Investigation highlights:
- Funds were funneled through Tornado Cash to obscure origins.
- Likely months of planning by a professional operator.
- Scaler issued a 20% white-hat bounty for recovery.
Cybersecurity experts call this one of the most advanced crypto attacks of 2025. The breach exploited operational governance weaknesses, bypassing access controls rather than code flaws alone.
Expert insight:
Deddy Lavid, a cybersecurity specialist, emphasizes:
“Static audits aren’t enough. Real-time monitoring and threat detection are now critical.”
The attack shares hallmarks with state-sponsored hacks, reminiscent of Lazarus Group operations in North Korea, focusing on patience, stealth, and precision.
Weekly Lessons — Risk Meets Regulation
This week’s events illustrate a harsh reality for the crypto ecosystem:
- Governments are intensifying scrutiny of crypto wealth.
- Hackers employ advanced strategies that can bypass even seasoned developers.
- Effective risk management is essential for portfolio protection and secure protocol design.
Crypto is no longer merely a tool for innovation or speculation. It has become a digital battlefield, where security, compliance, and wealth converge in a global struggle for supremacy.
