Today in crypto, Authorities in the US, UK and Canada launched “Operation Atlantic” aimed at disrupting fraudulent schemes related to crypto, Bernstein analysts say ETF inflows and continued corporate buying are gradually reshaping Bitcoin’s ownership structure, and BlockFills files for bankruptcy in the US.

US, UK, Canada launch joint operation to disrupt crypto fraud

The US Secret Service, UK National Crime Agency, and Canadian authorities are collaborating to disrupt fraudulent schemes related to crypto, raise awareness of scams, and recover stolen funds.

In a Monday notice, law enforcement agencies from the three countries — including Canada’s Ontario Provincial Police and the Ontario Securities Commission — said that they had launched “Operation Atlantic,” focusing on identifying people at risk of losing or those who had already lost crypto through “approval phishing” schemes.

“Approval phishing and investment scams cost victims millions in financial loss each year,” said Brent Daniels, deputy assistant director for the US Secret Service’s Office of Field Operations. The agencies said they hope to identify and disrupt these scams in near real-time.

Bernstein says Bitcoin rebound reflects more resilient long-term holder base

Bitcoin’s recent rebound reflects a strengthening base of long-term holders as ETF inflows and corporate treasury buying reshape the asset’s ownership structure, Bernstein said in a Monday research note shared with Cointelegraph.

Bernstein said Bitcoin outperformed gold and major equity indexes over the past week despite heightened conflict in the Middle East, with Bitcoin (BTC) up around 7% and Ether (ETH) up about 9% over the period.

Analysts attributed the shift partly to continued US spot Bitcoin exchange-traded fund (ETF) inflows and the steady accumulation of corporate buyers such as Strategy, which they say are gradually strengthening Bitcoin’s long-term holder base, contributing to a more stable market structure.

“Maybe it takes a physical conflict to realise Bitcoin remains the most portable (cross-border), digital and liquid asset with no counterparty risks,” Bernstein said.

Bernstein’s broader point is that ownership is changing. As roughly 60% of Bitcoin supply has been inactive for more than a year, the market is increasingly dominated by longer-term holders rather than fast-money flows. As more Bitcoin moves into ETFs, corporate treasuries and wallets that rarely transact, short-term sell pressure may matter less, potentially giving the market a more stable base during periods of stress.

BlockFills files for bankruptcy in the US

Crypto lending platform BlockFills filed for bankruptcy in the US on Sunday after the company halted customer deposits and withdrawals last month.

BlockFills’ operating company, Reliz LTD, and three other related companies filed for Chapter 11 bankruptcy in a Delaware bankruptcy court, reporting the company had estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million.

BlockFills said in a statement that the bankruptcy would “preserve the value of the business and maximize recoveries for stakeholders,” adding the Chapter 11 restructuring would “provide the necessary time and structure to stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions.”

The bankruptcy came after BlockFills suspended customer deposits withdrawals last month, citing a need to restore liquidity to the platform amid a crypto market downturn.

Earlier in March, a US court temporarily froze 70.6 Bitcoin (BTC) tied to the company after one of its clients, Dominion Capital, accused BlockFills in a lawsuit of misappropriating customer assets and commingling funds.

Vitalik Buterin promotes update simplifying Ethereum node software

Ethereum co-founder Vitalik Buterin posted a proposal, or a pull request, on Saturday that would merge the backend programs used by nodes to interact with Ethereum’s Beacon Chain, which handles consensus and staking, and the protocol’s execution layer into one unified code structure to simplify node setup.

Ethereum node runners, also called validators, currently have to run two separate programs, which each require setup and synchronization to coordinate and communicate the data produced by Ethereum’s consensus and execution layers.

This raises the technical complexity of running a node or providing validation services for the Ethereum network, preventing ordinary users from running their own infrastructure and forcing reliance on third-party service providers.

The Ethereum network and other smart contract blockchains have faced criticism for the technical complexity and hardware requirements to run a node, which has also raised centralization concerns about those networks.