Crypto

Markets occasionally dump a bucket of icy water on everyone at once, and on Oct. 10, it was the cryptocurrency sector’s turn. In the late afternoon, President Donald Trump threatened to hike tariffs on China, and then a total panic exploded in crypto. For a few terrifying minutes, prices looked like trapdoors into oblivion, wiping hundreds of billions of dollars off the sector’s market cap.

Flash crashes like these are obviously extremely uncomfortable for investors, but they’re clarifying because they expose weak financial plumbing, miscalibrated risk-taking habits, and shaky narratives. They also give long-term investors a checklist for what to do next. Here’s what you need to know, and what you need to do.

Image source: Getty Images.

What just happened

The catalyst for the flash crash had little to do with crypto itself, as the sector is largely unrelated to the flow of trade with China, which the newly threatened tariffs would affect. As the weekend unfolded, Trump and his advisors subsequently softened their tone, which helped markets to stabilize. But the damage was already done.

Prices fell shockingly fast. Bitcoin (BTC -3.26%) dropped by more than 12% from the prior week’s peak before rebounding somewhat. Ethereum (ETH -4.06%) slid by even more at the worst point.

Meme coins and altcoins were utterly shellacked. Dogecoin (DOGE -4.80%) briefly cratered by about 50% before stabilizing. Tokens outside the very largest cohort fell even harder. The crypto publication CoinDesk cited a 33% drop across the board for non-BTC, non-ETH assets, with many losing 80% or more, and a small handful losing close to 99.9% of their value in the same very short period.

The scale of this crash was historic. But why did it cascade so badly? Start with leverage.

The market was primed for a massive unwinding by a recent boom in the leveraged trading of perpetual futures in a handful of new decentralized exchanges (DEXes), and highly leveraged activity across the existing set of centralized exchanges (CEXes). Roughly $19 billion of forced liquidations of leveraged positions across DEX and CEX venues have been reported so far, which is the largest on record by a very large margin. The mechanism here was that the initial price shock caused by the tariff announcement caused a huge number of leveraged positions to blow up and get roughly simultaneously liquidated by the exchanges.

Then came problems with liquidity. Reports indicate that as exchanges were in the process of liquidating those leveraged positions, their own collateral used for borrowing was becoming worthless quite rapidly. This in turn caused some market makers to step back from providing their services to altcoins as volatility exploded amid the liquidations, leaving thin order books and allowing absurd air-pockets in pricing.

That’s likely why the downward price action became so intense so quickly. Without any liquidity available on tap for exchanges or market makers, and without any buyers at most of the prevailing prices, even a small amount of selling activity can create large price moves — and there was a lot of selling. There’s also some evidence that some of the crypto exchanges’ data oracles responsible for being authoritative sources of pricing information seized up or failed in the midst of this process. This heightened fear across both centralized and decentralized venues.

Separately, there is a significant amount of chatter alleging that an insider had advance knowledge of Trump’s new tariff policy announcement and took out a very large short position on Bitcoin in advance, pocketing around $200 million in the resulting crash. These allegations are not proven, though they rhyme with previous instances suspiciously perfectly timed trading in advance of tariff-related crypto market dumps. 

However, it’s important to recognize that Bitcoin was actually the least affected asset during this event, and that its price activity was not really a major contributor to the cascade downward in and of itself.

What long-term investors should do next

The big lessons from the flash crash are simple, and they will age well.

First, do not use leverage to own crypto. Leverage turns both routine and exceptional volatility events into portfolio-destroying liquidations. Blue-chip cryptos like Solana, XRP, Chainlink, and Dogecoin can gap down hard in minutes when liquidity thins. Many traders (or short-term investors) using conservative amounts of leverage — less than 2X — were liquidated right alongside the gamblers levered to 100X.

Second, keep the bulk of your exposure restricted to crypto majors like Bitcoin, Ethereum, Solana, XRP, and Chainlink. Bitcoin held up well, and large chains reported a swift rebound as the tariff rhetoric cooled. The fact that they have a real investment thesis that exists independent of market phenomena helps significantly, too.

Finally, stick to the long game. The flash crash revealed what was fragile. What it did not change is the multi-year thesis for the majors, which depends on adoption, infrastructure, and policy clarity. If you build your allocations around that reality, you will be positioned to survive and benefit.

SEOUL, Oct. 8 (UPI) — North Korea-backed hackers have stolen more than $2 billion in cryptoassets so far this year, according to blockchain analytics firm Elliptic.

In a report published on the company’s website Tuesday, researchers said that the sum was the result of more than 30 hacks and represented “the largest annual total on record, with three months still to go.”

This year’s record haul was driven by the theft of nearly $1.5 billion in virtual assets from cryptocurrency exchange Bybit by the North’s state-sponsored Lazarus Group, in what has been described as the biggest heist in history.

Other attacks publicly attributed to North Korea in 2025 include $14 million stolen from nine users on crypto exchange WOO X in July and $1.2 million in tokens stolen from blockchain funding platform Seedify in September.

While North Korea remains under heavy international sanctions, it has increasingly turned to hacking and cybertheft in recent years to bankroll its missile and nuclear programs.

Pyongyang funds 40% of its weapons programs through “illicit cybermeans,” the U.N. Security Council’s now-disbanded Panel of Experts estimated in an annual report released last year.

The cumulative known value of cryptoassets stolen by North Korea since 2017 is more than $6 billion, Elliptic said, adding that the actual figure may be higher.

“We are aware of many other thefts that share some of the hallmarks of North Korea-linked activity but lack sufficient evidence to be definitively attributed,” the report said. “Other thefts are likely unreported and remain unknown.”

Elliptic noted that the tactics used by North Korean hackers are evolving. While earlier attacks focused on exploiting vulnerabilities in crypto infrastructure, the majority of the hacks in 2025 have been perpetrated through “social engineering” — deceiving or manipulating individuals to gain access to their digital assets.

“This shift highlights that the weak point in cryptocurrency security is increasingly human, rather than technical,” the report said.

Lakers star Luka Doncic will not play in the team’s two preseason games this weekend, the team announced after its shoot-around Friday.

Doncic will sit out against the Phoenix Suns on Friday night at Acrisure Arena in Palm Desert and against the Golden State Warriors on Sunday night in San Francisco.

The Lakers said it was a collaborative decision made with L.A.’s performance team because of his time playing for the Slovenian national team in the EuroBasket tournament this summer.

The Lakers said the plan is to be smart with Doncic in the long term as he ramps up for the regular season that opens Oct. 21 against the Warriors at Crypto.com Arena.

LeBron James, Marcus Smart (achilles tendinopathy), Maxi Kleber (quad) and rookie Aduo Thiero (knee) also won’t play against the Suns.

Doncic played in his last game with Slovenia about a month ago, a game in which he scored 39 points but his squad was eliminated by Germany in the EuroBasket quarterfinals.

After practice Thursday, Doncic talked about easing his way into training camp while getting ready for the regular season after playing at peak level for Slovenia.

“Yeah, obviously probably take it a little bit slower than the usual,” Doncic said. “ I had a busy summer. I think month, month-and-a-half I was with national team. So, it was kind of a lot. But that got me ready for the preseason and obviously regular season. So, for me, I think it really helps.”

Bitcoin (BTC 2.64%) soared past $117,000 on Oct. 1, erasing September’s losses. Meanwhile, the U.S. government shut down for the first time in seven years, after lawmakers failed to agree on a temporary spending bill. Both gold and the S&P 500 set new record highs, though only time will tell whether the surge comes in spite of the government shutdown or because of it.

Some commentators say this supports Bitcoin’s safe-haven status, but that isn’t necessarily what happened here. The fact that stocks also rose could suggest other factors are at play. For example, there’s optimism around traditional gains in so-called “Uptober” as well as potential rate cuts. Plus, the Internal Revenue Service eased crypto treasury rules, which could reduce corporate crypto tax bills.

Image source: Getty Images.

How the shutdown could affect crypto investors

Previous government shutdowns have not had a huge effect on financial markets, particularly for long-term investors. As a cryptocurrency investor, here are a few potential shutdown consequences to have on your radar.

1. A longer shutdown could reduce investor appetite for risk

There are two ways that the current shutdown could affect consumer sentiment. The first is if it drags on for a long time. The last shutdown, which began in December 2018, extended 35 days and was the longest the U.S. has ever seen. A repeat could put even more pressure on the economy and reduce confidence in U.S. markets.

The second is if the shutdown leads to federal job layoffs, rather than the furloughs we’ve seen before. Vice President JD Vance told reporters that this possibility becomes more likely the longer the shutdown continues.

For crypto investors, there are two opposing forces at play. Faltering confidence in the dollar might push people toward alternative assets. However, people are less likely to buy Bitcoin or other risky assets when they are worried about how to cover the essentials.

2. A shutdown could delay spot crypto ETF approvals

Anticipation about approval from the Security and Exchange Commission for a flurry of crypto ETFs has been building for months — even more so since mid-September, when the SEC said it would follow a streamlined generic listings process rather than approving each one individually. However, the SEC is unlikely to be able to approve new crypto ETFs when it’s operating with a skeleton staff, no matter how simple the process.

3. It may test Bitcoin’s digital gold narrative

Crypto enthusiasts have long touted Bitcoin’s potential as a form of digital gold — a safe haven during times of crisis. As a decentralized, independent asset, it does have a lot in common with gold. However, it is still a relatively new asset, and its price can be extremely volatile. Bear in mind that Bitcoin fell by over 64% in 2022 on the back of Fed rate increases that triggered exchange failures.

Bitcoin has matured a lot in recent years, particularly since the approval of spot Bitcoin ETFs attracted huge inflows of institutional funds. The gridlock in Washington could put pressure on the dollar and increase economic uncertainty. That makes it a good time to see whether it can live up to its safe-haven potential.

Rate cut optimism could be behind Bitcoin’s initial shutdown surge

Investors were already hopeful that the Fed would cut rates at its October meeting. Following the shutdown, they are almost certain. The CME FedWatch tracker now puts the likelihood of a cut this month at 99%. Rate cuts have historically been positive for cryptocurrency prices, as they add liquidity to the market and make riskier assets more appealing.

The difficulty here is that the shutdown could delay the publication of the key economic data that the Fed relies on to make its decisions. The lack of jobs and inflation data could make it harder for officials to get a clear picture. This can also add to volatility, as markets can’t use public data to prepare for potential Fed moves.

How Bitcoin behaved in previous shutdowns

There have only been three government shutdowns since Bitcoin’s launch in 2009. Bitcoin’s price fell during the shutdowns of 2018 and 2019. However, it would be misleading to read too much into the data, given how much the industry has matured in the past seven, or even 12, years.

Data source: CoinGecko.

It is important to look at the government shutdown in a wider economic context. Right now, the prospect of rate cuts and IRS rules that favor crypto treasury companies may have had a bigger effect on crypto prices. But if the shutdown continues, this could dent confidence and drive investors away from risky assets.

SEOUL, Oct. 2 (UPI) — The share price of Naver surged some 10% over the past week after reports that the leading internet company of South Korea may merge with Dunamu, a major player in the country’s cryptocurrency industry.

Naver’s affiliate, Naver Financial, is reportedly in talks with Dunamu, which operates the world’s No. 4 crypto exchange Upbit, for a stock-for-stock merger. If finalized, Dunamu would become one of Naver’s subsidiaries.

Both companies confirmed Thursday that such negotiations were underway, but they declined to provide details.

“Beyond discussions on stablecoins and an unlisted stock trading platform, Dunamu and Naver Pay are exploring a range of additional collaborations. No further details or specific agreements have been finalized at this time,” Dunamu’s chief spokesman Juan Kim told UPI.

Naver Pay, the digital payments service of Naver Financial, boasts a customer base of more than 30 million. Naver holds about 70% of the firm, with Mirae Asset Group holding the remaining 30%. Dunamu remains privately held, with its founding Chairman Song Chi-hyung having a 25.5% stake.

Even if a deal is reached, it would require approval from the shareholders of both sides. At least two-thirds of participants at each company’s shareholder meeting must vote in favor.

Market sentiment suggests that approval is likely, in consideration of the recent sharp rise in Naver’s share price on the Seoul bourse. That of Dunamu has also soared in the over-the-counter trading.

Creating new digital finance ecosystems

Observers point out that amalgamation between Naver Financial and Dunamu could reshape South Korea’s financial landscape, enabling them to compete more effectively with large-sized global rivals.

One major synergy could come from the introduction of a stablecoin, a cryptocurrency pegged to a stable asset like the U.S. dollar. This compares to most other cryptocurrencies, which fluctuate greatly in value.

Daishin Securities analyst Lee Ji-eun said in a recent report that the combined entity could link its stablecoin to Naver Pay, boosting mainstream adoption.

“In the long term, they could seek to dominate the Korean currency-based stablecoin market and provide services such as investment returns and lending by utilizing deposits as collateral,” she said.

Mirae Asset Securities projects that such a business model would provide roughly $210 million in annual revenue by the end of this decade.

Sogang University Professor Yoon Seok-bin described the potential deal as “the marriage of Web 2.0 and Web 3.0 businesses.” The former represents interactive, platform-based services, while the latter focuses on decentralized technologies.

“Both Naver Financial and Dunamu are already profitable. Together, I think they can bring about various new services such as a stablecoin and an all-in-one mobile application called a ‘super app,'” Yoon said in a phone interview.

“In addition, Naver Financial will be able to help Dunamu’s Upbit go abroad. Upbit is the primary crypto exchange in the country, but has yet to establish a notable global footprint. Based on Dunamu’s strong cash flow, Naver Financial will also have a chance to challenge bigger competitors, including PayPal and Stripe,” he added.

Naver Financial recorded $1.18 billion in sales last year for an operating profit of $74 million. Dunamu logged $1.24 billion in revenue, with an operating income of $847 million. Dunamu’s operating margin amounted to 68.5%.

Some watchers say that lucrative Dunamu opted to become a Naver affiliate to achieve its long-standing goal of going public in the United States based on the global brand power of Naver, which listed its U.S. unit Webtoon Entertainment on Nasdaq last year.

Expecting the merger will be structured as an equity swap, Eugene Investment & Securities analyst Jo Tae-na said that Dunamu chairman Song would be the largest shareholder of the new company.

Her rationale: Because the value of Dunamu is about three times bigger than that of Naver Financial, such an outcome is plausible through an equity swap.

“Following the merger, a global listing is expected to lead to at least 1.5 to 2 times higher valuation compared to Dunamu’s standalone listing,” she said in a report. “If the new company goes public, its corporate value could reach $29 billion to $36 billion.”

Sept. 30 (UPI) — A 47-year-old Chinese national has pleaded guilty in Britain to a multi-billion-dollar Bitcoin scheme, according to Metropolitan Police, which said it has made what is possibly the “world’s largest” cryptocurrency seizure, worth more than $7.3 billion

Metropolitan Police said Zhimin Qian of no fixed address pleaded guilty Monday to charges of acquiring criminal property and possessing criminal property, with the property in both offenses being cryptocurrency.

The charges stem from allegations that Qian, also known as Yadi Zhang, orchestrated a massive fraud scheme in her native China, defrauding more than 128,000 victims between 2014 and 2017.

Authorities said she stored the illegally obtained funds in Bitcoin assets. She fled to Britain in September 2018 with the use of false documents and attempted to launder the proceeds by purchasing property.

wHer guilty plea on Monday follows seven years of investigation by the Metropolitan Police, authorities said.

“Today’s guilty plea marks the culmination of years of dedicated investigation by the Met’s Economic Crime teams and our partners,” Will Lyne, Metropolitan Police’s head of Economic and Cybercrime Command, said in a statement.

“This is one of the largest money laundering cases in U.K. history and among the highest-value cryptocurrency cases globally.

“I am extremely proud of the team.”

Authorities said that Qian had worked with Jian Wen, who was sentenced to more than 6 1/2 years in prison for her role in the scheme in January.

Wen, a 44-year-old former restaurant worker, had purchased two properties worth more than $672,000 in Dubai for Qian in 2019.

Authorities said that Wen was in possession of a cryptocurrency wallet with more than $403.3 million. She told police that she had worked for a Chinese national who had asked her to buy the Dubai properties and that she was unaware that the Bitcoins in her possession were the product of crime.

Metropolitan Police said it had seized more than 61,000 Bitcoin from Qian.

Specifics of how Qian defrauded victims of so much money in China were not initially clear.

“Bitcoin and other cryptocurrencies are increasingly being used by organized criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct,” Robin Weyell, deputy chief crown prosecutor for the Crown Prosecution Service, said.

“This case, involving the largest cryptocurrency seizure in the U.K., illustrates the scale of criminal proceeds available to those fraudsters.”

The cryptocurrency market has had an extraordinary year, with top cryptos like Bitcoin (BTC -4.23%) and Ethereum (ETH -8.20%) setting new all-time highs. That upward trend has stalled recently. As I write this (September 25), Bitcoin has fallen 5% in the last week, Ethereum is down 13% and XRP (XRP -6.93%) has shed over 9% over the same time period.

What’s behind this lackluster performance? And will so-called Uptober — a term based on data that shows prices often go up in October — turn the crypto tides? Let’s dive in to learn more about three headwinds facing cryptocurrencies right now.

1. Money is flowing out of crypto ETFs

Crypto often suffers from a ‘buy the rumor, sell the news’ syndrome. Speculation drives prices up in anticipation of a big event, and then they fall because investors sell once it actually happens. In the run-up to the Fed rate cut on September 17, crypto prices rallied, and spot Bitcoin ETFs saw solid inflows.

But as investors digested Federal Reserve Chair Jerome Powell’s words, they became more cautious. Particularly after a speech this week where Powell spoke of a “challenging situation” in trying to manage employment risks against inflation pressures. Lower rates often make riskier assets more attractive, but not if the benefits are offset by other economic concerns.

Sentiment is important in crypto, and right now, the fear and greed index is firmly in fear territory. That’s reflected in steep outflows from spot crypto ETFs. Per the Block data, there were over $360 million in outflows from spot Bitcoin ETFs on September 22. Fidelity Wise Origin Bitcoin Fund (FBTC -4.10%) alone reported $277 million in outflows. That’s one of the biggest single-day outflows we’ve seen this year.

2. Over $1.6 billion liquidated in one day

CoinGlass data shows over $1.6 billion was liquidated on September 21 — the largest amount so far in 2025. Over $500 million in Ethereum positions and around $300 million in Bitcoin positions were wiped out. The liquidation highlights how leveraged positions can quickly cascade as falling prices trigger liquidations and push prices even lower.

The use of margin and leverage in cryptocurrencies can amplify price volatility. And leverage levels in crypto are increasing. Investors can use their crypto as collateral and essentially borrow money to take a bigger position. If the market moves in their favor, it can translate into higher returns. However, if prices go the other way and there isn’t enough collateral to back up the loan, the broker may liquidate and forcibly close the position.

3. Crypto treasury companies are faltering

This year has seen a surge in companies adding cryptocurrencies — predominantly Bitcoin and Ethereum — to their balance sheets. Public companies now own about 5% of the total Bitcoin in circulation, per data from BitcoinTreasuries. Their steady accumulation is one of the drivers behind Bitcoin’s incredible price rally.

Pioneered by Strategy (MSTR -8.78%), around 200 companies now hold crypto. Many of them have raised money with the sole purpose of buying more. It can act as a hedge against inflation, and any gains from price appreciation will help their bottom line. However, if Bitcoin’s price falls, so will the value of those holdings. There’s a risk that companies may have to sell their crypto to cover their debt.

Currently, the corporate treasury model is under scrutiny. Companies are buying fewer Bitcoins. And a quarter of Bitcoin treasury companies now have a market cap that’s lower than their crypto holdings, per K33. Some are borrowing money to finance share buybacks, raising questions about the model’s long-term viability.

Image source: Getty Images.

Further volatility ahead

There’s been a lot of talk in the cryptocurrency news about the potential for sentiment to shift in Uptober. That’s because data shows that Bitcoin prices often fall in September and rise in October.

But the factors that are dragging crypto prices down won’t change just because we’re in a different month. Pay attention to jobs and inflation data. Not only will those figures influence Fed decisions about further rate cuts, but they also give us a better idea of whether the economy is slowing.

For all the headwinds, Bitcoin is holding its head above $111,000, and we may see some positive drivers before the end of the year. More rate cuts are likely, as well as SEC approval of a flurry of crypto ETFs. Plus, the government may make further progress with crypto legislation.

Whether or not the bulls can regain momentum, the recent price swings are a reminder of Bitcoin’s volatility. This remains a risky and unpredictable asset, making it important to limit your crypto exposure to only a small percentage of your wider portfolio.

Cryptocurrency prices slumped Sept. 22 with Ethereum (ETH 0.01%) losing 9% in the early hours of Monday morning. The second-biggest cryptocurrency fell from almost $4,500 to $4,075, before finishing the day at $4,200. Bitcoin (BTC 1.56%) dropped 3% and the total crypto market cap slipped back below $4 trillion.

Crypto positions saw more than $1.6 billion in liquidations in 24 hours — the biggest liquidation this year, according to CoinGlass data. Ethereum was hardest hit with more than $500 million wiped out. It’s a reminder of the way excessive leverage in crypto can quickly snowball. The market moved against investors who had borrowed to fund bullish positions. As it did, their positions were forcibly closed, which added to the broader downward pressure.

Let’s dive in to find out what the rocky start to the week means for crypto investors.

What investors need to know about the sell-off

When cryptocurrency prices are rising, it’s often easy to forget about the risk involved. Dramatic shifts and liquidations remind us that this is still a relatively new and evolving asset class.

1. Cryptocurrency volatility hasn’t gone away

Bitcoin is still a volatile asset. That volatility has lessened as it has gained traction as a store of value and attracted institutional investment, particularly through exchange-traded funds (ETFs). According to Fidelity, Bitcoin was less volatile than shares of Netflix in the two years running up to March 2024. However, the volatility is still there.

This is even more so for Ethereum, which serves a different purpose than Bitcoin and has not yet benefited from the same inflows of corporate and institutional capital. Ethereum is starting to be viewed as the smart contract workhorse of crypto, supporting a wealth of stablecoin and decentralized finance applications. However, it is still more volatile than Bitcoin as this week’s dramatic price swing demonstrates.

2. Keep an eye on crypto leverage

Investing using margin and leverage involves using borrowed funds to take a larger position in an investment. It can work in different ways, but for many crypto investors, it involves depositing assets as collateral to increase purchasing power. As an investor, it can be risky because you could lose your collateral — known as liquidation — if the market doesn’t rise or falls.

On a broader level, leverage amplifies market activity. That’s why it’s concerning that the levels of crypto leverage are coming close to those of Q4 2021 and Q1 2022. An August Galaxy report showed that total crypto-collateralized lending increased to more than $53 billion in the second quarter of 2025. That’s a 27% increase from on the quarter before.

In 2022, we saw the way that excessive leverage can quickly spiral and exacerbate market volatility. Markets are cyclical by nature, and history shows us that cryptocurrency bull runs don’t last forever. When prices start to fall, as they did at the start of the week, those declines are magnified by the various forms of buying crypto using borrowed money.

There’s also growing concern about crypto corporate treasury companies, some of which are using debt to fund their Bitcoin and Ethereum purchases. Adding crypto to company balance sheets using borrowed money has become popular this year. The danger is that when prices fall, they may need to sell their crypto to service debts, causing prices to fall further.

Image source: Getty Images.

3. Bitcoin and Ethereum are still trending upward

Dramatic price swings are always unsettling, but it’s important to keep them in context. Bear in mind that both Bitcoin and Ethereum are still outperforming the S&P 500 — in spite of the recent sell off. As of Sept. 24, the S&P 500 has gained about 16% year over year. Bitcoin is up almost 77% and Ethereum increased 57% in the same time period.

Prepare for further turbulence

Crypto prices seem to have stabilized today, with Bitcoin holding its head over the $113,000 mark and Ethereum at almost $4,200. However, Bloomberg warns that the market is braced for further volatility. It says Bitcoin options traders are betting on two extremes — a slide to $95,000 or a rally to over $140,000, showing that we may yet see more dramatic price swings.

Bitcoin and Ethereum have rallied this year, buoyed by a crypto-friendly administration, changes in regulation, and — most recently — hopes for Federal Reserve interest rate cuts. Potential Securities and Exchange Commission approvals of spot altcoin ETFs may also give the industry a boost in the coming months. Even so, economic doubts and inflation concerns continue to weigh on prices. If further rate cuts do not materialize as anticipated, crypto prices may not be able to sustain recent gains.

As a long-term investor, one way to manage volatility is to use dollar-cost averaging, buying a set amount of crypto at regular intervals rather than in a lump sum. It’s also important that crypto only make up a small amount of your portfolio, and that you set clear goals to avoid making panic investment decisions.

He’s never held public office or donned a judge’s robes, but an arch-conservative Los Angeles County attorney is racing toward confirmation on the 9th Circuit Court of Appeals, accelerating the once-liberal court’s sharp rightward turn under President Trump.

A competitive target shooter with a background in a cryptocurrency, Eric Tung was approached by the White House Counsel’s Office on March 28 to replace Judge Sandra Segal Ikuta, a Bush appointee and one of the court’s most prominent conservatives, who is taking senior status.

A new father and still a relative unknown in national legal circles, Tung found an ally in pal Mike Davis, a reputed “judge whisperer” in Trump’s orbit. Speaking to the New York Post in mid-March, Davis touted Tung as Ikuta’s likely successor.

The Pasadena lawyer appeared on a Federalist Society panel at the Reagan Library this year, debating legal efforts to restrain “ ‘agents’ of the left.”

“Eric is a Tough Patriot, who will uphold the Rule of Law in the most RADICAL, Leftist States like California, Oregon, and Washington,” Trump wrote on Truth Social when the nomination was announced in July.

The response from California senators was apoplectic.

“Mr. Tung believes in a conception of the Constitution that rejects equality and liberty, and that would turn back the clock and continue to exclude vast sections of the American public from enjoying equal justice under the law,” said Sen. Alex Padilla.

In the past, senators from a potential judge’s home state could block a nomination — a custom Trump exploded when he steamrolled Washington senators to install Eric D. Miller to the 9th Circuit in 2019.

Tung has been tight-lipped about his ascent to the country’s busiest circuit. He did not respond to inquiries from The Times.

A Woodland Hills native and conservative Catholic convert, Tung made a name for himself as a champion of the crypto industry and elegant legal writer, frequently lecturing at California law schools and headlining Federalist Society events.

After graduating from Yale and the University of Chicago Law School, he clerked for Supreme Court Justices Antonin Scalia and Neil Gorsuch before joining the white-shoe law firm Jones Day, a feeder to the Trump Justice Department.

Many lauded the nomination when it was first announced, including the National Asian Pacific American Bar Assn.

“Eric is a highly regarded originalist who would follow in the footsteps of Justice Scalia, for whom he clerked,” said Carrie Campbell Severino, president of the Judicial Crisis Network, a conservative legal advocacy group.

Groups on the left, including Alliance for Justice, Demand Justice and the National Council of Jewish Women, have lobbied against putting Tung on the appellate court.

If confirmed, Tung will be Trump’s 11th appointment to the 9th Circuit, a court the president vowed to remake when he first took office in 2017.

During Trump’s first term, Judge Ikuta was part of a tiny conservative minority on the famously lopsided bench, a legacy of President Jimmy Carter’s decision to double the size of the circuit and pack it with liberal appointees.

Many Trump judges ruffled feathers at first, and most have shown themselves to be “pretty conservative and pretty hard nosed,” said Carl Tobias, a professor at the University of Richmond School of Law.

Their ranks include the former Hawaii Atty. Gen. Judge Mark J. Bennett, as well as the circuit’s first openly gay member, Judge Patrick J. Bumatay.

Trump’s appellate appointees helped deliver him several controversial recent decisions, including the finding in June that Trump had broad discretion to deploy the military on American streets. Another 9th Circuit ruling this month found that the administration could all-but eliminate the country’s refugee program via an indefinite “pause.”

But they’ve also clashed sharply with the Justice Department’s attorneys, even in cases where the appellate panel ultimately sided with the administration.

That’s what the president is trying to avoid this time around — particularly with his picks headed in the west, experts said.

“People on the far right are pushing [Trump] to have people who will be ‘courageous’ judges — in other words, do things that are really unpopular that Trump likes,” Tobias said.

Tung may fit the bill. In addition to his crypto chops and avowed support for constitutional originalism, he has been an ardent defender of religious liberty and an opponent of affirmative action. He shoots competitively as part of the International Defensive Pistol Assn.

Both Tung and his wife Emily Lataif have close ties to the anti-abortion movement. Tung worked extensively with the architect of Texas’ heartbeat bill; Lataif interned for the Susan B. Anthony List, an anti-abortion policy group that seeks to make IUDs and emergency contraception illegal and opposes many forms of in-vitro fertilization.

“Emily is the epitome of grace under pressure, as was evidenced … when she and Eric had to evacuate their home during the California wildfires, only days after welcoming their first child,” Severino said. “She’s worked at the highest levels, from the White House to the executive team at Walmart, and her talent is matched only by her kindness and love for her family.”

When asked by Sen. Chris Coons of Delaware whether he believed IVF was protected by the Constitution, Tung declined to answer.

It wasn’t the only question the nominee ducked. Democratic members of the Senate Judiciary Committee accused Tung of giving only “sham answers” to their inquiries, both in chambers and through written follow-ups.

After pressing him repeatedly for his position on landmark cases including Obergefell vs. Hodges and Lawrence vs. Texas — privacy right precedents Justice Clarence Thomas wrote should be reconsidered after the fall of Roe vs. Wade — Sen. Adam Schiff pushed the nominee for his opinion on Loving vs. Virginia, the 1967 case affirming interracial marriage.

“Was that wrongly decided?” the California lawmaker asked the aspiring judge.

“Senator, my wife and I are an interracial couple, so if that case were wrongly decided I would be in big trouble,” Tung said.

“You’re willing to tell us you believe Loving was correctly decided, but you’re not willing to say the other decisions were correctly decided,” Schiff said. “That seems less originalist and more situational.”