Here’s what happened in crypto today

Today in crypto, Strategy sold 3,588 Bitcoin to fund dividend payments, a newly revealed wallet exploit raised fresh security concerns and Binance saw $1.23 billion leave the exchange in a week as Ethereum withdrawals hit a three-year high.

Strategy sells 3,588 Bitcoin for $216M to fund dividends, keeps $2.55B reserve intact

Strategy sold 3,588 Bitcoin (BTC) to fund preferred stock dividend payments and replenish its cash reserves.

Strategy sold the Bitcoin for $216 million, reducing its total holdings to 843,775 Bitcoin, according to a Monday 8-K filing with the US Securities and Exchange Commission.

This included 1,363 Bitcoin sold at an average price of $59,256 between last Monday and Tuesday, and 2,225 Bitcoin sold at an average price of $60,773 between Wednesday and Sunday.

Strategy disclosed the sale of 32 Bitcoin in early June, as its first reported Bitcoin sale since the 2022 tax-loss transaction.

On its June 29 8-K filing, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, increased the annual dividend rate on its STRC preferred stock to 12%, and disclosed that its US dollar reserve had grown to $2.55 billion. Monday's filing showed the dollar reserve remained unchanged.

Form 8-K filing with the US Securities and Exchange Commission. Source: Strategy

Thousands of crypto wallets at risk from ‘Ill Bloom’ vulnerability: Coinspect

Thousands of crypto wallets are at risk of being drained due to the use of weaker-than-intended recovery phrases, an exploit that Blockchain security research firm Coinspect has dubbed “Ill Bloom.”

The wallets at risk span Bitcoin, Ethereum, Polygon, Rootstock, Tron and Solana, Coinspect said in a disclosure on Sunday, with the issue related to weak randomness — an insecure pseudorandom number generator — used during recovery phrase generation on certain software wallets. 

“If funds recently moved without your permission, this vulnerability may be why,” Coinspect said. 

The vulnerability has impacted wallets generated as early as 2018 and more often occurs in lesser-known mobile software wallets. At least $5 million has been drained from exposed wallets since May 27, though there could have been exploits on additional networks and addresses, meaning the number of wallets at risk may be much higher. 

Binance outflows triple to $1.2B as ETH withdrawals hit 3-year high

Binance, the world’s largest crypto exchange by trading volume, recorded a sharp surge in weekly outflows as Ethereum withdrawal activity climbed to a multi-year high.

According to DefiLlama data viewed by Cointelegraph on Sunday, Binance saw $1.23 billion in net outflows during the week beginning June 29, a 207% increase from roughly $400 million the week prior, while monthly net outflows totaled about $3.2 billion.

Source: DefiLlama

Separately, CryptoQuant community analyst Darkfost reported Friday that Binance’s Ethereum withdrawal transactions hit their highest level in more than three years, with over 166,000 withdrawal transactions in a single day.

While some of the movement may reflect accumulation behavior, Darkfost pointed to regulatory uncertainty stemming from the European Union’s Markets in Crypto-Assets Regulation (MiCA) and short-term market positioning as possible drivers.