
Good morning and welcome to the Hodl Report
Turns out, the Feds don’t just chase rug pulls—they’re coming for full-blown crypto pig farms now. This Friday, we’re unpacking the $225M Tether laundering scheme that sounds more like a Narcos plot than a DOJ press release. Plus, for those tired of chasing moonshots and ready to roll up their sleeves, we’re diving into the gritty, unsexy truth of what it really takes to make it in crypto investing. No shortcuts, no LARPing—just trenches.
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Where to Invest $100,000 According to Experts
Investors face a dilemma. Headlines everywhere say tariffs and AI hype are distorting public markets.
Now, the S&P is trading at over 30x earnings—a level historically linked to crashes.
And the Fed is lowering rates, potentially adding fuel to the fire.
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Why?
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Editors Corner
Trenches 101: How to Actually Do the Work in Crypto Investing
Everyone loves to talk about being “early” in crypto. Nobody wants to talk about the part where you’re cross-eyed at 2 a.m. digging through whitepapers and Discord threads written by people who clearly failed English.
That’s the trenches.
It’s not glamorous. It’s not “alpha.” It’s the boring, unsexy grind that separates the survivors from the exit liquidity.
Here’s what doing the actual work looks like.
1. Research That Doesn’t Stop at the Logo
If your entire thesis is “the community seems strong,” you’re not investing — you’re gambling with enthusiasm.
Real research means reading the docs, understanding token unlocks, checking who’s actually building, and verifying that “partnership” with Google isn’t just a Google Sheets integration.
Find the code, the commits, the treasury, and the roadmap — then decide if it’s worth your money.
2. Risk Management: The Unsexy Superpower
You’ll never survive this market if you size positions like a psychopath. “All in” works in movies, not portfolios.
In the trenches, risk management means never putting yourself in a position where one bad trade ruins your month. Size down. Use stop losses. Don’t farm with rent money. Crypto rewards the disciplined, not the desperate.
3. Wallet Hygiene Is a Real Thing
Yes, your MetaMask is gross. Clean it.
Label your wallets. Revoke sketchy token approvals. Use a hardware wallet for anything worth more than your phone bill. If you can’t explain where your assets are at 3 a.m. half-asleep, you’ve already lost them — you just don’t know it yet.
4. Stay Curious, Stay Skeptical
Every project looks brilliant when you’re scrolling Twitter at midnight. Slow down. Ask dumb questions. “Where does the yield come from?” should be tattooed on every degen’s wrist.
The people who make it in crypto aren’t the smartest — they’re the ones who keep asking “why?” long after everyone else stopped pretending to care.
5. Build Systems, Not Just Bags
If you want to survive multiple cycles, you need systems — a repeatable process for research, entry, risk, and exit. Otherwise, every bull run will make you money and every bear market will take it right back.
Crypto rewards curiosity, discipline, and paranoia — in that order. Being “in the trenches” isn’t about grinding harder than everyone else; it’s about taking the time to do the things no one else bothers with.
Because at the end of the day, hype fades. Projects die. But good habits? Those keep you alive long enough to see the next bull run.
Trivia: The Billion-Dollar Bug That Wasn’t
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Past performance does not guarantee future results. Investing involves risk including possible loss of principal.
Today’s Report
Feds Target Pig-Butchering Ring in $225M Tether Bust

Our Report
The U.S. Department of Justice is making a bold play — filing a civil action to seize $225 million in crypto tied to a complex pig-butchering fraud network. The scheme allegedly used Tether (and accounts flagged by OKX) to launder money stolen from over 400 victims. Before long, this fight may become a test case for how aggressively regulators can claw back crypto across borders.
Key Points
The DOJ filed to seize approximately $225.3 million in crypto assets linked to investment scams.
The complaint maps out a “sophisticated blockchain-based money laundering network” that funneled stolen funds via multiple accounts.
This is tied to pig-butchering — the long con where victims are seduced by romance or friendship and convinced to invest in fake crypto ventures.
Tether and the exchange OKX reportedly alerted law enforcement in 2023 about suspicious accounts possibly laundering illicit funds.
Among the victims is a former bank president who’d been convicted of embezzlement and lost money in one of these scams.
A 2024 FBI report cited in the filing claims crypto investment frauds caused $5.8 billion in reported losses.
The DOJ says any recovered funds will go toward repaying known victims. Leftovers might be used for a “U.S. cryptocurrency reserve.”
Relevance
We’re watching a potential turning point. This isn’t just a seizure — it’s a signal: law enforcement is increasingly ready to follow crypto rails across jurisdictions and target not just shady wallets but the rails that facilitate laundering.
For traders and observers, a few takeaways:
Stablecoins are no longer off limits. Even tokens billed as “safe bridges” get exploited or implicated. Holding USDT or using platforms with loose due diligence may invite scrutiny.
Exchanges and issuers can’t stay passive. Tether and OKX flagging accounts might be a glimpse of how compliance roles will evolve: from optional to expected to enforced.
Victim recovery might matter more than we thought. This is a rare case where the DOJ is explicitly aiming to give funds back — which could pressure courts to further recognize crypto assets as enforceable or seizure-eligible property.
Narrative risk is real. Stories like this feed into anti-crypto regulators’ momentum. The more visible “crypto victims,” the more public appetite for heavy regulation increases.
In short: keep one eye on the chain activity, the other on legal precedent. The next big seizure might not be far off, and the rules of the game are still being written.
Today’s Top News
HEADLINES
Global crypto ETFs attract record $5.95B as bitcoin scales new highs — A record $5.95 billion flowed into crypto ETFs in a single week, mostly driven by $5 billion in U.S. investments. This coincides with Bitcoin reaching new highs. Analysts link the surge to increased institutional adoption and renewed investor confidence.
Unusual rally across gold, crypto & AI: FOMO or greed? — A simultaneous surge in gold, crypto, and AI stocks is being attributed more to investor psychology than fundamentals. Kotak Institutional Equities points to FOMO and speculative momentum. Such cross-sector rallies may suggest overheating in global markets.
Bitcoin price slips amid recent high and dollar strength — After peaking above $125,000, Bitcoin fell 1.4% in 24 hours due to a stronger dollar and profit-taking. The rally may be pausing as macroeconomic pressures build. Analysts warn of short-term volatility ahead.
Binance Coin outpaces Bitcoin, Ethereum in 2025 rally — BNB is leading the crypto market with a 129% year-to-date gain, outperforming Bitcoin and Ethereum. The rise is tied to growing network activity and renewed interest in the Binance ecosystem. Despite past regulatory concerns, investor sentiment remains bullish.
Market Trendline
PRICE ACTION
The crypto market is inching higher overall (+0.1% in market cap), but the tone feels fragile. Spot volumes are elevated and call options are crowded—this rally has legs, but they’re wobbly.
Bitcoin tapped fresh highs above $125K before retreating to the $122K–$123K zone—a quick 2–3% pullback that hints at overheated conditions. Meanwhile, only 40 of the top 100 tokens are green in the last 24 hours. Beneath the surface, the internals aren’t as bullish as the headlines suggest.
Notable Movers
BNB (Binance Coin): Quiet outperformance. Up nearly 29% this month and handily outpacing BTC and ETH. It’s momentum-led, not narrative-driven—but in this tape, that’s enough.
Speculative pumps: Fluid, Zcash, and a few other fringe plays are ripping double-digit gains. No news, just vibes and leverage.
Altcoin fade: XRP, ADA, and DOGE are bleeding off recent highs—down 3–5% on the day. The rotation trade is losing steam, and profits are getting booked.
Macro View
Bitcoin’s breakout is still fueled by the debasement trade: fiat skepticism and inflation hedging.
ETF inflows are strong—nearly $6B last week—showing institutions are still buying the top.
Tokenization is the new buzzword, but regulators are already circling. Stock-token hybrids are drawing heat.
Market structure is top-heavy. Options markets are skewed long. One exogenous shock and this house of leverage could wobble fast.
Bottom Line
BTC still wants higher, but the path is no longer clean. BNB is the standout, while most alts are struggling to hold gains. Macro tailwinds remain, but positioning is crowded. This is late-cycle behavior—momentum’s still king, but the throne is getting shaky.
Today’s Top Tweet
TWITTER NEVER SLEEPS
I've been pitching crypto as an investable asset class for almost 10 years, and the below explanation has by far the best success rate in terms of helping new investors understand this asset class.
If you want more money invested in this industry, this is how you get it
— #Jeff Dorman (#@jdorman81)
4:14 PM • Oct 7, 2025
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.