Daily Crypto Briefs 
PHILADELPHIA, Oct. 28, 2026
Datavault AI shares fell nearly 50% on October 27 after the company disclosed an unresolved Bitcoin withdrawal at Biconomy and financial corrections that could reduce its reported year-end 2025 assets by $92.2 million, exposing a gap between a crypto balance and usable corporate funding.
The Philadelphia company said a withdrawal requested in June remained incomplete as of its October 26 filing. It plans to restate four financial periods after concluding that Bitcoin credited through an investment by Scilex should have been recorded as money owed for shares.
DVLT closed at $0.067, down 49.55%, with roughly 244 million shares traded, according to CoinDesk’s October 28 report. Bitcoin itself gained 0.98% in the completed October 27 UTC session to $80,795.08, ChartExchange data showed. The different moves underline that the disclosure concerns company funding and custody access, rather than a Bitcoin network interruption.
In its October 26 Form 8-K, Datavault said its audit committee and management reached the non-reliance decision on October 20. The company also withdrew reliance on related earnings releases and presentations to the extent they reflect the affected accounts.
Bitcoin
BTCDatavault’s Bitcoin withdrawal follows a $150M share deal
The transaction began with a September 25, 2025 agreement under which Scilex would buy 15 million Datavault shares and a prefunded warrant for another 263.9 million shares. Consideration was $150 million in Bitcoin, valued at an agreed $112,915.52 per coin, or approximately 1,328.43 BTC.
Scilex’s original investment announcement presented the funding as capital for Datavault’s computing infrastructure and data exchanges. The new filing changes how that funding should have appeared in the accounts.
Datavault says Scilex credited 1,309.04 BTC to its Biconomy wallet in September and November 2025 through off-chain transfers. The difference from the agreed coin amount reflected 19.39 BTC deducted for cash advances.
Off-chain credits change a platform’s internal records. They do not, by themselves, demonstrate a transaction to an external Bitcoin address controlled by the recipient. Datavault’s subsequent inability to withdraw makes that distinction consequential for liquidity.
The company also sold 491.431 BTC credited to the account back to Scilex between September 2025 and January 2026, receiving approximately $40.5 million in cash. The original $150 million deal value therefore cannot be presented as a verified current frozen balance.
The distinction complements the questions raised by BNY’s institutional custody expansion: a service announcement, an account credit and an asset that can actually be transferred are separate facts requiring separate evidence.
Four Datavault financial periods need restating
The affected accounts cover the September 2025 quarter, the full 2025 year and the first two quarters of 2026. Datavault expects respective reductions in total assets of $8.1 million, $92.2 million, $57.1 million and $49 million at those reporting dates.
These are corrections to separate balance sheets, not four losses to add together. The $92.2 million figure is the largest preliminary historical adjustment, rather than a newly measured theft or a current market valuation of inaccessible coins.
Datavault says the investment should instead create a subscription receivable from Scilex, presented as a reduction of shareholders’ equity. In plain terms, the accounts should show an outstanding obligation for issued shares rather than a digital asset available to the business. Cash received from the later Bitcoin sales would reduce that obligation.
The company also expects to reverse associated crypto gains and losses. It says the assessment is preliminary and unaudited, with exact income-statement, cash-flow and disclosure effects still being determined.
The funding consequences extend beyond accounting labels. Management had included Bitcoin balances as a source of liquidity when assessing its ability to continue operating. It is reassessing those evaluations for year-end 2025 and March 2026 because the coins will no longer appear as assets and collection from Scilex is uncertain.
That remains an assessment in progress. The filing does not announce bankruptcy or a completed finding of a material weakness in financial controls; management says its controls review is continuing.
Biconomy access and Scilex repayments remain unresolved
A separate June 29 filing described a June 24 binding term sheet for Scilex to buy 837 BTC from Datavault’s Biconomy wallet for $50 million. That older proposal is not a verified current withdrawal amount.
It contemplated an initial $30 million payment and $20 million in quarterly installments through December 2028. Scilex could pay with cash, its shares or publicly traded subsidiary securities. Completion still depended on a definitive agreement and closing conditions; the October disclosure does not establish that this proposed purchase closed.
Corporate treasury decisions have recently included Strategy’s expansion of preferred-stock buybacks. Datavault’s immediate issue is more basic: whether a reported crypto balance supplies accessible financing at all.
As of this article’s October 28, 09:08 UTC review, the cited disclosures provided no explanation for the withdrawal delay, verified theft total, attacker transaction hashes or affected-wallet count. CoinDesk reported receiving no response from Biconomy by its publication. An unresolved withdrawal and an accounting correction do not establish that coins were stolen.
Broader sentiment was neutral. Alternative.me’s Crypto Fear and Greed Index read 51 on October 28, up from 48 a day earlier; it measures market mood rather than Datavault’s creditworthiness.
Fear & Greed Index
Oct. 28, 2026Datavault has not set a timetable for the restated filings. The next evidence to watch is a completed withdrawal, documented collection from Scilex and revised liquidity disclosures. Its ongoing review could identify further errors or delay subsequent financial reports.
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Primary sources and further reading
| Source | Title |
|---|---|
| | Datavault AI: October 26 Form 8-K non-reliance and Bitcoin withdrawal disclosure |
| | Datavault AI: June 29 Form 8-K on proposed Bitcoin sale to Scilex |
| | Scilex: Original $150 million strategic Bitcoin investment announcement |
| | ChartExchange: Bitcoin historical prices |
| | Alternative.me: Crypto Fear and Greed Index |
Fact-checked by: Daily Crypto Briefs Fact-Check Desk
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Frequently Asked Questions
Why did Datavault AI stock fall nearly 50%?
The October 27 decline followed an October 26 filing disclosing an unresolved Bitcoin withdrawal and plans to restate four financial periods. The disclosure does not establish a single cause for every trade.
Is $150 million of Datavault Bitcoin confirmed stolen?
No. That figure is the original Scilex investment consideration. The filing reports a failed withdrawal, not a confirmed hack or theft total, and does not specify the current amount requested for withdrawal.
How much will Datavault's reported assets fall?
Preliminary reductions are $8.1 million at September 30, 2025, $92.2 million at December 31, 2025, $57.1 million at March 31, 2026, and $49 million at June 30, 2026. These are separate dated balance-sheet corrections, not amounts to add together.
What is a subscription receivable in the Datavault filing?
It is an amount owed by Scilex for issued shares. Datavault says it should reduce shareholders' equity rather than be recorded as a digital asset, with cash already received reducing the receivable.
When will Datavault file restated accounts?
The October 26 filing gives no timetable and says the review could identify additional errors or delay periodic reports.