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North Korea-linked hackers drive 76% of 2026 crypto thefts

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Crypto fear index increases as traders dump XRP, Solana and DeFi bets

TRM Labs says North Korea-linked hackers have stolen about $577m in 2026 so far—76% of all crypto hack losses—driven by massive hits on KelpDAO and Drift Protocol.

Summary

  • TRM Labs reports that North Korea-linked actors account for roughly 76% of global crypto hack losses in the first four months of 2026, or about $577 million.
  • Pyongyang’s share of global crypto theft has surged from 22% in 2022 to 76% in 2026, with total illicit takings since 2017 now above $6 billion.
  • Two April exploits on KelpDAO and Drift Protocol alone accounted for nearly all 2026 losses so far, underscoring protocol-level risk for DeFi and markets.

A new report from blockchain intelligence firm TRM Labs finds that organizations linked to North Korea were responsible for roughly 76% of all global cryptocurrency hacking losses in the first four months of 2026, stealing an estimated $577 million. The report, cited by The Block, warns that North Korean operations have become the dominant source of on-chain theft as state-aligned groups refine their tactics against exchanges, DeFi protocols, and cross-chain infrastructure.

According to the analysis, North Korea’s share of global crypto theft has climbed relentlessly over the past five years: 22% in 2022, 37% in 2023, 39% in 2024, 64% in 2025, and 76% so far in 2026, pushing cumulative illicit profits since 2017 above $6 billion. TRM Labs ties this growth to increasingly sophisticated tooling, better laundering pipelines, and a clear state incentive to bypass traditional sanctions via digital assets.

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The report highlights two April incidents as the primary drivers of 2026 losses to date: a roughly $292 million exploit targeting KelpDAO and a separate $285 million theft from Drift Protocol. Together, these two attacks alone account for nearly the entire $577 million total so far this year and about 3% of all recorded hacking incidents in the same period, suggesting that a small number of high-impact exploits continue to dominate loss statistics.

For crypto markets, the concentration of large-scale thefts in DeFi and restaking protocols underscores the structural risk in smart contract and bridge design. Each $200 million–plus drain not only hits token prices for the affected projects, but also tightens liquidity across interconnected ecosystems as market makers, lenders, and LPs de-risk exposure.

This trend also feeds into regulatory and institutional responses. As more of the loss profile is attributed to a single sanctioned state, global authorities will likely intensify pressure on centralized exchanges, OTC desks, and mixers to block known laundering channels, raising compliance costs for the entire industry. For traders in Bitcoin, Ethereum, and other majors, repeated headlines of nine-figure hacks tied to North Korea translate into higher perceived tail risk, wider risk premia, and occasional systemic bouts of deleveraging when large exploits force on-chain liquidations.

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Overall, TRM Labs’ findings paint a picture of a crypto market where protocol innovation and capital inflows continue, but where the “crypto war chest” of a sanctioned state is now a central macro variable, not a side story—one that will increasingly shape both policy and risk pricing across digital assets.

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Using intelligent strategies to profit more easily every day

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OpenAI buys tech talk show TBPN as it builds out communication strategy

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

AI trading adoption grows in 2026 as BsStrategy offers simplified access to automated crypto strategies.

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Summary

  • BsStrategy offers free AI trading automation, helping users execute strategies efficiently with minimal manual effort.
  • AI-driven BsStrategy improves trading discipline by reducing emotional decisions and enabling 24/7 automated execution.
  • BsStrategy lowers entry barriers with free access while delivering secure, optimized AI crypto trading workflows.

As the crypto asset market continues to grow, more users are looking for smarter, more efficient, and lower-barrier ways to trade. Traditional manual trading often requires long hours of market monitoring and can be affected by emotions, experience, and time limitations. In a digital asset market that operates 24/7, AI quantitative trading is becoming a new choice.

BsStrategy is a platform focused on AI quantitative trading and automated strategy execution. Powered by AI-driven optimization models, it aims to help users participate in the crypto market more easily. With security, efficiency, simplicity, and free access as its core features, BsStrategy allows users to experience intelligent trading without complicated configuration.

Register to receive a real reward worth $10

To lower the entry barrier for new users, BsStrategy provides a registration reward. Users only need to visit the official website and complete registration to receive a real reward worth $10, which can be used to start exploring the platform.

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This mechanism allows users to understand the platform’s features, experience the AI strategy operation process, and further explore the practical value of intelligent trading without complex upfront costs.

One-click activation, no configuration required

Many users believe quantitative trading is complicated, requires professional knowledge, and involves setting many parameters. BsStrategy simplifies complex strategy logic and system configuration.

After registration, users can quickly activate AI quantitative strategies through the platform’s one-click activation feature. No programming, manual setup, or professional quantitative trading experience is required.

This means users can:

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1. Avoid long hours of market monitoring

2. Avoid manual order placement

3. Avoid complicated setup

4. Start AI strategy experience with one click

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BsStrategy aims to help more users enter the era of AI quantitative trading through a simpler operating process.

AI-driven optimization for unattended trading

The core highlight of BsStrategy lies in its AI-driven strategy optimization capability. Through AI models, market data analysis, and automated execution mechanisms, the platform helps users continuously run trading strategies within defined rules.

Compared with manual trading, AI quantitative trading can reduce emotional decision-making, improve execution efficiency, and keep strategies running in the 24/7 market. Users do not need to stay in front of the screen for long periods; the system can automatically process trading workflows according to strategy logic.

This unattended trading model is especially suitable for users who want to save time, reduce operational pressure, and improve trading discipline.

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Completely free to use, lowering the participation barrier

BsStrategy supports completely free access. Users do not need to pay high software fees or purchase complicated trading tools to start experiencing AI quantitative trading features.

For new users, free access helps reduce trial costs. For users who want to learn more about AI automated trading over the long term, it also makes it easier to enter the platform ecosystem and continuously experience the efficiency improvements brought by intelligent strategies.

Balancing security and efficiency

For AI quantitative trading platforms, security is always a key concern for users. BsStrategy emphasizes secure operation, stable user experience, and clear processes in its product design, helping users participate in platform features with greater confidence.

At the same time, through automated strategy execution and AI optimization mechanisms, the platform improves trading workflow efficiency, freeing users from tedious manual operations and allowing them to focus more on strategy understanding, capital planning, and long-term participation.

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Mobile and web app support

To meet different user habits, BsStrategy supports both mobile and web applications. Whether users want to check strategy status on a computer or access the platform anytime via mobile phone, they can enjoy a flexible and convenient experience.

Users can view account and strategy status at any time, manage platform operations more conveniently, and continuously follow trading progress across different devices.

Conclusion

In 2026, AI quantitative trading is becoming an important trend in the crypto asset market. For users who want to lower the entry barrier, reduce market-monitoring pressure, and experience automated trading and intelligent strategies, BsStrategy offers a platform worth exploring.

Register now to receive a real reward worth $10, activate strategies with one click, use the platform completely free of charge, and access it through both mobile and web applications.

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BsStrategy makes AI quantitative trading safer, more efficient, and simpler.

For more information, visit the official website.

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.

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Two Data Points Explain Why Dogecoin Is Outperforming the Crypto Market

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Dogecoin (DOGE) Price Performance

Dogecoin (DOGE) has emerged as a standout performer among the top 100 largest crypto assets, posting double-digit gains while the majority is flashing red. 

The meme coin has surged over 11% in the past week, even as the broader crypto market slipped 0.7% in the same period. The rally pushed Dogecoin to a 10-week high on Wednesday. 

Dogecoin Whales Hit Record DOGE Holdings as Price Climbs 11%

According to BeInCrypto Markets data, the token was trading at $0.109 at press time, up 2.4% over the past day. Notably, on-chain activity suggests the rally may have more behind it than retail-driven hype.

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Dogecoin (DOGE) Price Performance
Dogecoin (DOGE) Price Performance. Source: BeInCrypto Markets

In a post on X (formerly Twitter), on-chain analytics firm Santiment reported that DOGE whales have ramped up activity to a six-month peak. The firm recorded 739 transfers of $100,000 or more in a single day. 

At the same time, the 149 wallets holding 100 million DOGE or more now hold a record 108.52 billion meme coins, worth approximately $11.6 billion.

“The meme coin’s +14% price rise over the past 10 days is very likely not just a coincidence,” the firm said.

Dogecoin Whale Activity
Dogecoin Whale Activity. Source: X/Santiment

The combination of record-concentrated holdings and surging large-transfer volume frames the rally as more structured than a sentiment spike. If whales continue accumulating at this pace, DOGE may find further support in the weeks ahead, especially if broader market sentiment stabilizes.

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The post Two Data Points Explain Why Dogecoin Is Outperforming the Crypto Market appeared first on BeInCrypto.

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Bitcoin Stalls Below $77K As Spot Volumes, Leverage Decline

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Bitcoin Stalls Below $77K As Spot Volumes, Leverage Decline

Bitcoin’s (BTC) attempt to trade above $77,000 have failed multiple times over the past week, despite traders managing a one-day breakout to $79,500. Data show short-term holders taking profits as the rally peaked, sending 150,000 BTC to exchanges since April 15. 

Crypto analyst Darkfost noted the continued fragility among short-term holders (STHs), or wallets holding BTC for less than 155 days. As the price rose over the past two weeks, BTC transfers from these wallets to exchanges increased.

Three consecutive sessions saw 65,000 BTC, 54,600 BTC and 39,000 BTC sent to exchanges and these flows may have prevented Bitcoin from overtaking the resistance level at $80,000.

BTC short-term holder supply to exchanges. Source: CryptoQuant

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Spot volumes also declined sharply. BTC activity has dropped to levels last seen in September 2023, near the end of the previous bear phase. Binance recorded a monthly decline of about $25 billion in volume. Gate.io also saw a $13 billion drop, while OKX volumes fell by roughly $6 billion.

This indicates weaker investor conviction to build spot exposure at current price levels. Darkfost explained, 

“This contraction in volumes therefore reflects a temporary loss of interest in Bitcoin. While declining spot volumes can suggest negative short-term momentum, these phases of apathy are also often where new opportunities begin to emerge.”

BTC spot trading volume. Source: CryptoQuant

Related: Bitcoin Coinbase Premium threatens bear flag repeat with BTC price at $76K

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Bitcoin needs fresh demand from leveraged traders

Bitcoin researcher Axel Adler Jr. highlighted a shift in liquidation pressure, with the seven-day oscillator turning positive and reaching +28.7 by April 30. Both the long and short positions have been squeezed more frequently, with total crypto liquidations reaching $604 million over the past 24 hours.  

Bitcoin futures long-short liquidations dominance. Source: CryptoQuant

The shift supports the price in the near term. The 30-day average remains slightly negative, keeping the broader bias tied to prior long liquidations.

Open interest shows where traders’ urgency may be lacking. The seven-day average dropped to about 292,000 BTC from above 300,000 BTC. Around 8,000–9,000 BTC in leverage has been removed over the past 10 days, with daily changes still negative.

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The price continues to press against $77,000, with no rise in participation. A stronger move higher would likely require open interest to increase and spot volumes to expand, signaling new capital entering the market rather than futures positions being forced to close.

Related: Bitcoin analysts explain why BTC price can’t take out $80K

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

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US Senate Forbids Senators From Betting on Prediction Markets

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Crypto Breaking News

The US Senate moved to bar members of Congress and their staff from participating in prediction markets, after a swift, unanimous vote to rewrite the chamber’s standing rules. The measure, approved by unanimous consent, immediately prohibits Senate officials from placing bets on markets that could hinge on information gained through their official duties.

Introduced by Republican Senator Bernie Moreno, the resolution frames the ban as a matter of public trust: “Engaging in any way in a prediction market or trying to place bets where we might have inside information deteriorates the confidence that our constituents have in us.” He added that “By changing the standing rules of the Senate, what we’re doing is allowing our constituents to know, once and for all, that no member of the United States Senate, no member of the staff of the United States Senate, can ever use that inside information as a way to monetize this job whatsoever.”

The decision comes as lawmakers weigh accusations of insider trading tied to public-affairs betting markets. In a related development, a special forces soldier connected to a plot to capture former Venezuelan President Nicolás Maduro was charged April 23 with using classified information to place bets on Polymarket; he has pleaded not guilty. soldier charged.

Senate Democratic leader Chuck Schumer underscored the moral dimension on the floor, saying that “of all the issues we debate in Washington, this falls clearly in the category of a ‘no-brainer.’” He warned that “We must never allow Congress to turn into a casino where members representing the public can gamble on wars, or economic crises, or elections.”

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Republican Representative Ashley Hinson followed with a pledge to pursue a similar ban in the House, posting on X that she would introduce a comparable measure. posted on X.

Industry responses soon followed. Polymarket posted on X that it fully supported the Senate resolution and noted that its terms of service “already prohibit such conduct, but codifying this into law is a step forward for the industry.” Kalshi co-founder and CEO Tarek Mansour welcomed the development in a post on X, highlighting that Kalshi “already proactively blocks members of Congress and enforces against insider trading.” post.

For readers tracking the regulatory arc, Cointelegraph’s reporting has highlighted ongoing scrutiny of prediction markets and insider trading concerns. The current congressional move adds a formal, enforceable layer to the debate as lawmakers weigh the balance between free-market mechanisms and safeguarding public trust. Related coverage notes that industry players have faced renewed calls for stronger surveillance and governance frameworks.

Key takeaways

  • The Senate unanimously approved a resolution changing its rules to ban members and staff from using prediction markets, effective immediately.
  • The measure, introduced by Senator Bernie Moreno, frames the rule as vital to public trust and to prevent the monetization of inside information.
  • The move follows concerns raised by recent cases, including a special forces soldier charged with using classified information to place bets on Polymarket; the defendant has pleaded not guilty.
  • lawmakers signaled a broader push, with House Republicans indicating a similar ban could be pursued, signaling potential cross-chamber alignment on this issue.

Context and implications for the prediction-market ecosystem

Beyond the procedural shift, the resolution sits at the intersection of governance, insider-trading norms, and the evolving regulatory appetite toward prediction markets. The case involving a service member accused of leveraging classified information to bet on geopolitical outcomes has amplified concerns that some users could exploit public positions for financial gain. The Senate’s move effectively sets a floor for ethical conduct within federal offices and clarifies that participation in markets tied to policy outcomes will not be tolerated when sensitive information is at play.

Schumer’s remarks frame the issue as part of a broader stewardship challenge for Washington: the administration of credible, non-transparent gambling-like activity within institutions that wield real-world influence. His call to extend similar safeguards to the executive branch underscores a potential appetite for harmonized standards across government, a development that could influence how contractors, consultants, and civil servants engage with digital markets in the future.

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From a market-structure perspective, the unanimous Senate action could reshape how participants approach political and macro-event bets. If other branches of government adopt comparable restrictions, prediction-market platforms may need to accelerate compliance tooling, enhance insider-trading detection, and tighten user vetting for public-sector users. Kalshi and Polymarket have already positioned themselves as enforcing stronger governance under existing terms of service; the newly codified rules could reduce the risk of regulatory backlash driven by perceived conflicts of interest.

Industry observers will also be watching the House’s response. If Ashley Hinson’s anticipated resolution gains traction, the United States could see a cross-chamber consensus on limiting official participation in prediction markets. This momentum could steer platform operators toward more transparent policies, stricter access controls, and more robust surveillance capabilities—aligning with broader efforts in the crypto and fintech sectors to separate governance from speculative activity tied to inside information.

Looking ahead, the practical questions center on enforcement mechanics and scope. How will the Senate translate the new rule into daily operations for staffers who rely on predictive tools for research and public-interest analysis? Will the House or administration push parallel standards, and how will platforms interpret and implement any new mandates without stifling legitimate hedging and research use? For investors and users, the development signals a continuing trend toward tighter governance in on-chain and off-chain prediction markets, with public trust as the decisive currency in the evolving regulatory landscape.

The next weeks will reveal whether Congress broadens the ban to the executive branch and how platforms adapt their compliance frameworks to meet any new statutory expectations. In the meantime, the core takeaway is clear: the line between informed governance and financial speculation is being drawn tighter, with Congress signaling that the integrity of official duties must remain insulated from market-based monetization.

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Readers should watch for updates on whether the House formalizes a comparable prohibition, how platforms adjust their risk controls, and whether any new investigations or enforcement actions arise from the surge in interest around prediction-market governance. As the debate unfolds, the balance between innovation, user access, and public trust will remain at the heart of the discourse.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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South Korea Seeks 20-Year Sentence for Delio CEO Over $169M Crypto Fraud

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South Korean prosecutors have requested a 20-year prison sentence for the CEO of crypto deposit service Delio, calling the scale of alleged fraud against thousands of investors “massive.”

During closing arguments at the Seoul Southern District Court on Thursday, prosecutors asked the court to sentence Jeong Sang-ho under the Act on Aggravated Punishment of Specific Economic Crimes, citing what they described as deliberate deception and false promotion that left nearly 2,800 victims without access to their funds, according to the Korean news agency Yonhap.

“The defendant’s active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive,” prosecutors reportedly said, adding that Jeong was “exacerbating their suffering by evading responsibility and maintaining an uncooperative attitude.”

Delio operated a crypto deposit service that promised investors high-interest returns on coins deposited for a fixed period. On June 14, 2023, the platform abruptly suspended withdrawals, freezing customer assets worth 250 billion Korean won ($169 million). A Seoul court declared the company bankrupt in November 2024.

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Related: Dunamu, Hana Financial take blockchain remittance system live with POSCO

Delio CEO acknowledges harm done to investors

Jeong’s legal team acknowledged the harm caused. “We are aware of the victim’s suffering and feel a deep sense of responsibility,” his attorney reportedly said, adding that Jeong would seek to compensate victims if acquitted.

Jeong was indicted in April 2025 on charges of embezzling $169 million in crypto assets from victims over roughly two years, between August 2021 and June 2023.

The first-instance verdict is scheduled for July 16.

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Related: Kbank teams with Ripple on overseas blockchain remittance trial

South Korea launches crackdown on exchanges

The news comes amid South Korea’s launch of a regulatory crackdown on crypto exchanges. Earlier this month, the country fined Coinone, the country’s third-largest exchange, and ordered a partial business suspension over Anti-Money Laundering failures.

The action marks the second such crackdown in a few months, following a $24 million fine and six-month partial suspension handed to Bithumb in March for similar Anti-Money Laundering failures. The pressure on exchanges intensified after Bithumb mistakenly sent customers 620,000 Bitcoin, worth around $42 billion at the time, instead of 620,000 Korean won.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

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KelpDAO commits 2,000 ETH to DeFi united recovery fund for rsETH restoration

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KelpDAO commits 2,000 ETH to DeFi united recovery fund for rsETH restoration

ECB held rates at April 30 meeting but Lagarde stressed rising inflation and growth risks from Iran war, signaling June hike possibility.

Summary

  • KelpDAO contributed 2,000 ETH from treasury to Aave-led DeFi United recovery plan
  • Funding aims to restore rsETH peg support following April 18 bridge exploit
  • DeFi United has raised over $300 million from ecosystem participants to close backing shortfall

KelpDAO announced April 30 it has completed its committed contribution to the recovery fund, providing 2,000 ETH in treasury funds to the DeFi United recovery plan led by Aave, aimed at restoring peg support for rsETH and promoting the system’s return to normal operation. The funding represents a one-time investment intended to restore rsETH to its nominal exchange rate following the $292 million exploit that struck on April 18.

“As part of that commitment, we are contributing 2,000 ETH from our treasury directly to DeFi United,” KelpDAO stated. The protocol emphasized that its internal commitment before any public statement was that “rsETH holders will not be abandoned,” noting the contribution is a direct manifestation of that pledge.

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Multi-Protocol Recovery Effort

DeFi United, in collaboration with multiple ecosystem participants including Mantle, Consensys, Arbitrum, Lido Finance, and LayerZero, has formulated a recovery path that includes re-capitalization of the bridging treasury, restoration of oracle functionality, and addressing funding gaps in affected markets. The coalition has tentatively raised more than $302 million to date, much of it from DAOs and crypto businesses within the ecosystem.

Major contributors include Consensys and Joseph Lubin with 30,000 ETH (approximately $69 million), Mantle with 30,000 ETH as a low-interest loan, Aave DAO with a pending vote for 25,000 ETH (approximately $57.5 million), and LayerZero with 10,000 ETH (approximately $23 million). The Arbitrum Security Council also froze 30,766 ETH (approximately $71 million) in attacker funds pending a governance vote.

The April 18 exploit drained 116,500 rsETH—worth about $290 million to $293 million—from KelpDAO’s LayerZero-powered bridge, representing roughly 18% of rsETH’s total supply. The attacker used the tokens as collateral across Aave, Compound v3, and Euler to borrow an estimated $236 million in ETH and WETH, leaving protocols with significant bad debt.

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KelpDAO stated its investment helps accelerate the overall repair process, noting that as funds from various parties gradually come into place, collateral support for rsETH will gradually return to normal. The company committed to continue updating the community on progress as the recovery advances.

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Polymarket Targets Insider Trading With New On-Chain System

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Another European Country Bans Polymarket, Threatens $1M Fine

Polymarket has tapped blockchain analytics firm Chainalysis to deploy an on-chain solution that monitors trading activity and enforces its Market Integrity Rules across the prediction market platform.

The system centers on a detection model built on Chainalysis Data Solutions. It is calibrated to identify patterns that suggest non-public information on the platform.

How the On-Chain Detection Model Works

According to the press release, the agreement combines Chainalysis’ investigative tools, threat prevention capabilities, and professional services for the deployment and training of Polymarket’s staff. The framework builds on a multi-layered monitoring system already operating across the venue.

“This sends a clear signal: insider trading, in addition to all types of fraud and market manipulation, is not welcome on Polymarket, and those who attempt it will be identified,” the press release read.

Every trade, position, and settlement on Polymarket is recorded on a public blockchain. That structure allows live anomaly detection.

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Polymarket CEO Shayne Coplan tied the deal to the platform’s transparency-first design.

“Polymarket was built on-chain because transparency matters, and our platform shows what markets can look like when trades are open, traceable, and accountable by design,” he said.

Why Polymarket Is Tightening Insider Trading Surveillance Now

Suspected insider trading on prediction market platforms has become a growing concern, drawing scrutiny from both the crypto community and lawmakers

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Platforms have stepped up efforts to counter this. In addition to the new initiative, Polymarket published updated Market Integrity Rules in March covering three prohibited categories of insider trading conduct. 

Rival platform Kalshi has similarly bolstered its internal capabilities and policies to address insider trading and market manipulation.

Regulators and law enforcement have moved in parallel. Authorities recently charged a US Army soldier for allegedly using confidential government information to profit from bets on markets tied to the capture of Venezuelan leader Nicolás Maduro. The defendant has pleaded not guilty to the fraud charges.

In a parallel move, the US Senate unanimously approved a resolution barring sitting senators from trading on prediction markets. Together, these developments signal a sector-wide push to clamp down on insider trading as prediction markets scale into the mainstream.

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Syndicate Labs suffers $380k SYND bridge exploit, pledges full user compensation

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Is Bitcoin quantum-safe? What crypto investors need to know in 2026

Syndicate Labs has confirmed that a leaked upgrade key let an attacker hijack its Commons cross-chain bridge, drain about 18.5 million SYND tokens worth roughly $330,000 plus user funds, and trigger a sharp price crash before the team pledged full compensation and sweeping security fixes.

Summary

  • Syndicate Labs’ cross-chain bridge was compromised after a private key leak, with roughly 18.5 million SYND drained and sold.
  • The attack, described as highly sophisticated, exploited weak key storage and lack of multisig or hardware signing on upgrade paths.
  • Syndicate Labs has pledged to fully compensate all affected users and client chains while rolling out stricter key management and upgrade safeguards.

Syndicate Labs has confirmed that a private key leak allowed an attacker to maliciously upgrade its cross-chain bridge contracts on two networks and siphon approximately 18.5 million SYND, worth about $330,000, alongside roughly $50,000 in user tokens. The team stressed that the incident was contained to specific chains and did not impact the broader Syndicate infrastructure.

In an official statement, Syndicate Labs said the breach followed “multi-stage reconnaissance, infrastructure mapping, and careful execution,” calling it an attack that “demonstrated a high level of technical complexity” while explicitly ruling out insider involvement. The attacker acquired around 18.5 million SYND and rapidly sold the tokens, with external security firms like CertiK tracing proceeds into Ethereum after bridging.

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Root cause: weak key storage and upgrade controls

Syndicate Labs identified the root cause as poor operational security around the bridge upgrade keys, admitting that “the private key was stored in a password management tool without an additional layer of encryption.” The team also acknowledged that the upgrade process did not use multi-signature or hardware signatures and lacked “early warning and circuit breaker measures for contract upgrades,” leaving a single compromised key enough to push a malicious implementation.

Following the exploit, SYND’s price fell by more than 30% on some venues as the sell-off hit liquidity, echoing previous bridge hacks that sparked sharp token drawdowns. Similar cross-chain bridge incidents, such as earlier exploits on third-party infrastructure covered in this crypto.news story, have repeatedly underscored the dangers of centralized upgrade keys.

Syndicate Labs has pledged to “fully compensate all affected users,” including returning the 18.5 million SYND drained and providing “additional compensation,” while also “fully compensating affected application chain clients.” The company says it has sufficient reserves to cover losses, mirroring commitments seen in prior DeFi recovery efforts reported in another crypto.news story.

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To prevent a repeat, Syndicate Labs has begun hardening its key management by strengthening private key encryption, tightening access controls, and planning to introduce hardware or multi-signature mechanisms alongside real-time monitoring of upgrade paths. The team’s roadmap follows broader industry calls for multisig-controlled bridges and automated circuit breakers, themes highlighted in a separate crypto.news story.

Syndicate’s SYND token remains under pressure as markets digest the attack and await concrete timelines for compensation and security upgrades.

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Hassett says Powell’s reappointment could delay Fed rate cuts, with crypto watching closely

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Arizona advances bill to hold Bitcoin and XRP in state reserve

Kevin Hassett warns that reappointing Jerome Powell to the Fed Board could delay or dilute Trump-era rate cuts, keeping crypto traders fixated on personnel-driven monetary policy.

Summary

  • White House NEC Director Kevin Hassett warned that Jerome Powell’s reappointment to the Fed Board could sway the timing and depth of interest rate cuts.
  • The Fed has held its benchmark rate at 3.5%-3.75% in Powell’s final meetings as chair, with markets split over how quickly incoming leadership will ease policy.
  • Crypto traders now see Fed personnel politics as a key variable for Bitcoin, Ethereum, and broader digital asset liquidity.

White House National Economic Council Director Kevin Hassett said that Federal Reserve Chair Jerome Powell’s reappointment as a governor “may affect interest rate cut decisions,” injecting new uncertainty into the path of U.S. monetary easing. His comments land just as the Fed keeps its target rate in a 3.5%-3.75% band and as Powell chairs his final policy meetings before stepping down in mid-May.

In recent remarks relayed by U.S. media, Hassett has repeatedly argued that “there is ample opportunity to reduce rates in the upcoming months,” while also acknowledging that the composition of the Fed Board will shape how aggressively cuts are delivered. At Powell’s last meeting as chair, officials again voted to hold rates steady, with four members dissenting—the highest level of disagreement since 1992—underscoring a deeply divided Federal Open Market Committee (FOMC).

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Why Powell’s seat matters for crypto

The friction is not just academic: Powell’s reappointment as a governor would keep a seasoned moderate on the Board at the same time President Donald Trump is set to install Kevin Warsh as the next Fed chair, a figure seen as more open to faster easing but constrained by inflation and politics. As Axios reported, Trump officials have recently “softened” their public pressure for immediate cuts, signaling they may “wait for new chairman Warsh and let him lead the next cycle,” a stance Hassett has echoed.

For crypto markets, this tug-of-war over the pace of cuts directly feeds into liquidity, risk appetite, and dollar strength. When the Fed cut rates in late 2025, Bitcoin (BTC) and Ethereum (ETH) both saw renewed inflows as lower real yields pushed investors out the risk curve, a pattern tracked across multiple crypto.news stories. With the federal funds rate still anchored at 3.5%-3.75% and no cuts yet in 2026, major tokens have traded in tighter ranges despite sporadic rallies in Bitcoin and Ethereum.

If Powell’s continued presence tilts the Board toward a slower easing path, that could cap near-term upside for high-beta assets like altcoins even as long-term crypto adoption remains intact. Prior crypto.news coverage of Fed transition risks in this story and of macro-driven sell-offs in another story has shown how quickly Bitcoin and DeFi tokens can reprice when rate expectations shift.

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Traders are now closely watching communications from Hassett, Warsh, and Powell for clues on the first cut’s timing, with futures markets still pricing only modest reductions in 2026 despite Trump’s preference for “substantially lower” rates. Any surprise acceleration or delay in cuts—driven by Powell’s reappointment dynamics—will likely move not just Treasurys and equities, but also the entire digital asset complex.

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Kast Appoints Former Senior SEC Advisor as US Policy Lead

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Kast Appoints Former Senior SEC Advisor as US Policy Lead

Stablecoin payments company Kast Kast has hired former US Securities and Exchange Commission (SEC) communications official Stephanie Allen as head of corporate and policy communications, as the company builds out its licensing and policy operation following an $80 million funding round last month.

Kast said Thursday that Allen will work with senior leadership on policy and communications as the company prepares to launch Kast Business and expand further across North America, Latin America and the Middle East. The company said the hire is tied to its next phase of growth and regulatory engagement.

Allen previously served as acting director of the SEC’s Office of Public Affairs and earlier held senior media relations and speechwriting roles at the agency. Kast said she also advised the SEC’s Crypto Task Force, though that role does not appear in the SEC’s public biography of Allen.

The hire reflects how stablecoin companies are adding policy and communications talent as they move closer to regulated financial services and try to expand across multiple jurisdictions. For Kast, the appointment comes as it pushes deeper into business accounts, cross-border payments and compliance-heavy growth markets.

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“We’re excited to welcome Stephanie to the Kast team,” said KAST’s chief corporate affairs officer, Brad Jaffe. “Her knowledge of the policy and regulatory landscape stemming from her leadership position at the SEC and deep U.S. public and private sector experience will help drive KAST’s momentum.”

The hire comes over a month after Kast raised $80 million to fund the expansion of its payment infrastructure platform, reaching a $600 million valuation.

KAST stablecoin payment firm, homepage. Source: Kast.xyz

Kast offers payment cards and US dollar-denominated accounts to users in over 150 countries, with plans to launch savings and remittance products under its neobank interface. 

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Related: Fireblocks launches tool for institutions to earn yield on stablecoins

Stablecoin momentum cools

Stablecoin transfer volume dropped 19% to $8.31 trillion over the past month, while stablecoin market capitalization rose 2.06% to $305.29 billion over the same period, Cointelegraph reported Tuesday, citing data from RWA.xyz.

The data suggests that the growing value held in dollar-denominated stablecoins does not translate to growing onchain activity, as fewer dollars are being moved across blockchains despite the growing stablecoin supply.

30-day stablecoin net flows as of April 28, 2026. Source: RWA.xyz

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Still, asset manager Fidelity’s Q2 Signals Report showed that Ethereum’s stablecoin transfer values had recently exceeded historical averages, with transfer value over the past 12 months surpassing $18 trillion. 

Fidelity said that the network activity signals that stablecoins are increasingly being used for payments, settlement and onchain access to US dollars, despite the broader crypto market sentiment.

Stablecoin transfer volume reached a record $1.8 trillion in February, according to data provider Allium. 

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