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Paul Ryan’s American Idea Foundation, Digital Asset Plan Canton Benefits Pilot

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Paul Ryan’s American Idea Foundation, Digital Asset Plan Canton Benefits Pilot

Digital Asset, the creator of the Canton Network, and former US House Speaker Paul Ryan’s American Idea Foundation plan to pilot a blockchain-based system for distributing state-administered benefits across three US states using the Canton Network.

The RISE program is expected to launch in the first quarter of 2027 and would combine multiple benefits into monthly or twice-monthly payments, with spending rules applied to categories including food, child care and cash.

According to Friday’s announcement, the system would automatically adjust benefit levels as household income changes and allow participating agencies to track payments, balances, spending and compliance data through Canton. Digital Asset said Canton would coordinate the rules, permissions and transactions used to distribute benefits while limiting access to sensitive information.

Ryan said the pilot is intended to reduce penalties that can occur as benefit recipients’ incomes rise:

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By combining fragmented benefits, reducing penalties as families earn more, and rigorously measuring results, these pilots can help show what a modern safety net should look like.

The companies did not name the participating states or specify which benefit programs would be included, and said the pilots remain subject to federal approval.

Related: FalconX, Interstice Connect Canton to Ethereum, Solana and Robinhood Chain

Canton expands government-linked use cases

The RISE program could add a public-benefits use case to Canton, whose recent growth has largely centered on institutional finance, including projects involving government securities.

In April, Japan Securities Clearing Corporation, Mizuho, Nomura and Digital Asset launched a proof of concept using Canton to test Japanese government bonds as digital collateral, including for real-time, cross-border transactions. The project was selected for support under Japan’s Financial Services Agency Payment Innovation Project.

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Canton was also used in July to settle a tokenized US Treasury trade between Franklin Templeton and Virtu Financial, with Tradeweb handling execution and price discovery. The Treasury changed hands against USDCx in real time, which Tradeweb described as an industry first.

Canton’s native Canton Coin (CC), which is used to pay fees for transactions through the network’s Global Synchronizer, has a market capitalization of about $4.1 billion and ranks 23rd among cryptocurrencies, according to CoinGecko data. CC is up around 10% over the past week.

Source: CoinGecko

Magazine: MiCA cracks down on USDT in Europe… but no one else cares

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Kalshi traders say bitcoin rally won’t go much higher by end of 2026

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Kalshi traders say bitcoin rally won’t go much higher by end of 2026

A view of a Bitcoin ATM at Northgate Mall on Feb. 5, 2026, in San Rafael, California.

Justin Sullivan | Getty Images

Bitcoin’s more than 20% rally this week has sent the cryptocurrency to heights it hasn’t seen since May, but traders on prediction market platform Kalshi see it ending 2026 near current levels.

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Speculators estimate that bitcoin’s price at the end of 2026 will be around $75,000, based on an average of contracts on the platform. 

The contracts on Kalshi ask traders to place “yes” and “no” trades on whether the cryptocurrency will trade within various $5,000 ranges at midnight on Jan. 1, 2027. Contracts are resolved using bitcoin price data from CF Benchmarks.

Bitcoin’s surge this week has been powered by two key catalysts: an intervention by the U.S. Treasury to ease a sell-off in the bond market — in turn, relieving pressure on risk assets — and an event at the White House where President Donald Trump, crypto executives and regulators pushed for Congress to approve the market structure Clarity Act proposal.

The outlook for where bitcoin will end the year has improved since the flagship crypto’s rally. Before Wednesday, Kalshi traders saw it most likely that bitcoin would end the year around $66,000. 

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However, speculators’ latest forecast would represent a slight decline from the cryptocurrency’s current trading levels. Bitcoin was last trading above $77,000. 

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.

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Trump pushes for the CLARITY Act; XRP price surges, with holders earning up to $10,000 daily

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Trump pushes for the CLARITY Act; XRP price surges, with holders earning up to $10,000 daily - 3

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

EX DeFi is attracting XRP holders seeking alternative income as regulatory optimism boosts interest in the digital asset.

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Summary

  • Trump urges Congress to advance the CLARITY Act as Bitcoin tops $79,000 and XRP surges more than 40% amid regulatory optimism.
  • EX DeFi promotes XRP cloud mining with automated computing power contracts, aiming to help holders generate passive income.
  • EX DeFi says its platform combines cloud mining with multi-layer security, compliance measures, and support for major digital assets.

Significant progress has been made regarding cryptocurrency regulation in the United States.

Trump pushes for the CLARITY Act; XRP price surges, with holders earning up to $10,000 daily - 3

On August 19, U.S. President Trump met with representatives from the cryptocurrency and financial sectors at the White House and publicly urged Congress to accelerate the stalled “CLARITY Act.” Trump stated that the U.S. needs clearer, fairer regulatory rules for digital assets to maintain its competitiveness in cryptocurrency and financial innovation.

The meeting brought together representatives from the crypto industry — including Ripple, Coinbase, Robinhood, and Kraken — as well as heads of the SEC and CFTC, drawing further market attention to the future direction of U.S. digital asset regulation. This move has further boosted investor interest.

Driven by positive regulatory news, the cryptocurrency market has seen a significant rebound. As of today, Bitcoin has surpassed $79,000, while XRP surged more than 40% in a short period, emerging as one of the standout mainstream digital assets in this rally.

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As the regulatory landscape potentially becomes clearer, more investors are refocusing on XRP’s long-term value. For XRP holders, beyond simply waiting for price appreciation, the question arises: how can one participate in XRP’s long-term gains in a more efficient and sustainable way? The EX DeFi cloud mining platform has emerged as a noteworthy option.

Positive regulatory factors boost XRP market sentiment

Renewed market attention on the CLARITY Act serves as a key policy backdrop for the recent rebound in XRP prices.

The CLARITY Act aims to establish a clearer regulatory framework for the digital asset market and further define the respective regulatory responsibilities of the SEC and CFTC in this space. If the bill is ultimately approved, regulatory boundaries in the U.S. digital asset market are expected to become more distinct, thereby reducing some of the regulatory uncertainty faced by institutional investors entering the market.

This shift holds potential significance for XRP. A clearer regulatory environment could boost institutional investors’ willingness to allocate capital to digital assets and further drive the development of applications such as trading, payments, and asset tokenization.

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Whale activity also a key indicator to watch for XRP’s rise

Beyond regulatory policy, on-chain activity is another crucial component of current XRP price analysis. Recent on-chain data indicates that large XRP holders have been consistently increasing their positions over a short period; this accumulation by “whale” addresses has drawn significant market attention.

While the simultaneous occurrence of accumulation by large holders and a price rebound is a positive signal, it does not guarantee a sustained rise in XRP’s price. However, if the regulatory environment improves and institutional capital alongside on-chain demand continues to grow, XRP could attract even greater market interest in the future.

EX DeFi cloud mining platform: A new option for XRP investors

To provide investors with a more convenient way to participate in the XRP ecosystem, EX DeFi has launched a cloud mining service powered by sustainable energy. Users do not need to purchase mining hardware or possess technical mining expertise; by simply selecting a computing power contract that suits their needs, they can generate stable daily returns and earn passive income.

In terms of operations, EX DeFi integrates hosting services, computing power management, and earnings settlement, utilizing automated systems to handle daily operations and profit distribution. For users who hold XRP long-term and wish to maximize the utility of their digital assets, this cloud mining model offers the potential for long-term compound growth while effectively mitigating the impact of short-term market volatility on returns.

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About EX DeFi

Headquartered in the UK, EX DeFi operates in compliance with European regulatory frameworks such as MiCA and MiFID II, while continuously enhancing platform transparency, operational standards, and user protection mechanisms.

The platform employs a multi-layered security architecture, featuring:

  • Annual financial and security compliance audits by PwC
  • Digital asset custody insurance from Lloyd’s of London
  • Cloudflare enterprise-grade network protection and McAfee® security systems
  • Multi-layer encryption, AI-driven risk management, and 2FA verification

EX DeFi currently supports a wide range of mainstream digital assets — including XRP, BTC, ETH, USDT, USDC, DOGE, LTC, and SOL — offering users a flexible and convenient service experience.

Affiliate program

EX DeFi offers an affiliate program that allows users to earn commissions of 3% + 2% (up to a maximum of $50,000) by inviting friends, enabling them to generate stable passive income without requiring an initial investment. 

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Get started with cloud mining in just four steps

1. Register an account

Sign up for a free account using an email address on the official EX DeFi platform to receive a $17 trial bonus.

2. Deposit cryptocurrency

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Deposit XRP or other cryptocurrencies into the account (minimum deposit: $100).

3. Select a mining package

Choose a cloud mining contract that fits a particular budget and timeframe, then start automated mining with a single click.

4. Start earning returns

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Once the contract is activated, earnings are settled automatically every 24 hours. Users can choose to withdraw their earnings at any time or reinvest them for compound returns.

Popular mining contracts

BTC (Beginner Trial Contract): Investment $100, Duration: 2 days, Daily Return: $4, Total Profit: $100 + $8

DOGE (Gold Shell Mini-Doge Pro): Investment $500, Duration: 6 days, Daily Return: $6.5, Total Profit: $500 + $39

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BTC (Canaan-Avalon-A1466): Investment $1,000, Duration: 10 days, Daily Return: $13.4, Total Profit: $1,000 + $134

LTC (Bitmain Antminer L7): Investment $5,000, Duration: 20 days, Daily Return: $73.5, Total Profit: $5,000 + $1,470

BTC (Bitmain S19K-Pro): Investment $10,000, Duration: 30 days, Daily Return: $161, Total Profit: $10,000 + $4,830

Click here to visit the official EX DeFi website and view more mining contracts.

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Conclusion

Trump’s public urging of Congress from the White House to advance the CLARITY Act has sent a new policy signal regarding US cryptocurrency regulation and reignited investor interest in mainstream digital assets like XRP. XRP’s recent strong rebound indicates that investors are reassessing the potential long-term impact of regulatory clarity.

For long-term XRP holders, exploring additional digital asset profit models via the EX DeFi cloud mining platform — while keeping an eye on policy and price fluctuations — can lay a solid foundation for long-term wealth accumulation.

XRP is already surging; join EX DeFi now to earn up to $10,000 in daily passive income using XRP holdings.

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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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Crypto.com Deleted User Account With Funds, Gave No Reason For Weeks

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Crypto.com Deleted User Account With Funds, Gave No Reason For Weeks

The crypto exchange you trust with your hard-earned money can suddenly delete your account and freeze all the funds without any warning. That’s what happened to a user on Crypto.com last week. Alarmingly, its customer support initially denied that the user account even existed.

On August 13, the user “Bradley Peak” received a reassuring email with the subject line: “Crypto.com Exchange – Successful Login.” His credentials had been accepted. Similar to what anyone would receive when trying to access their account. 

While the email claimed a successful login, he couldn’t actually access the exchange. Peak was pushed back toward Crypto.com’s main app or its UK login flow. When he inspected the browser traffic, he said a request to an Exchange endpoint returned “401 Unauthorized.” 

So, basically, Crypto.com was showing that the user doesn’t have an account. Yet his money was locked inside. 

Note: It has been 8-days since the incident, and Crypto.com are yet to resolve the issue. After BeInCrypto’s probe, the exchange did ask the user for an external wallet address to send his funds. However, that hasn’t happened yet, at the time of writing. Peak is a journalist at BeInCrypto. He took no part in reporting or writing this article. BeInCrypto independently reviewed the screenshots and correspondence he supplied, then gave Crypto.com a detailed right of reply.

A Successful Login to Nowhere

Peak says he had used the Crypto.com Exchange account normally for several years. He sent funds to the same established deposit setup he had used before. Access disappeared afterwards.

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There was no suspension email. The login page showed no account-status warning and didn’t request any documents. 

Customer support was a bigger problem. Crypto.com could not give Peak a consistent description of his account.

In one chat, a support specialist told him, “After checking, I can see that your exchange account is rejected.” The agent did not define “rejected” or say when that status had been applied. The case was escalated, followed by a familiar line: “I can’t give you an exact timeframe.”

Crypto.com support called Peak’s Exchange account “rejected,” escalated the case and gave no resolution timeframe. Screenshot supplied by Bradley Peak.

“Rejected” Became “There Is No Account”

A different support agent gave a weirder answer. After asking Peak for the email address he used to log in, the specialist replied: “Apologies, but there’s no Exchange account under that specific email.”

A second support specialist said there was no Exchange account under Peak’s email. BeInCrypto redacted the address before publication. Screenshot supplied by Bradley Peak.

Peak responded with Crypto.com Exchange messages tied to that address, including successful login notifications and an earlier email stating that he already had an Exchange account. The screenshots reviewed by BeInCrypto show no explanation for the contradiction.

The exchanges then settled into a loop. Support said the case was “still in progress,” that another team had it, and that no timeframe was available. 

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Peak asked for updates across two chats for weeks. His funds remained inaccessible.

After escalation, support said it was waiting for another team and could provide no timeframe. Screenshot supplied by Bradley Peak.

Crypto.com Answered With a Vague Compliance Statement

BeInCrypto sent Crypto.com 12 questions. They covered the account’s status, the meaning of “rejected,” the location of the funds, and the steps required to withdraw them. 

Crypto.com asked for extra time and then issued a very vague on-record statement:

“Crypto.com follows strict regulatory protocols and as such we do not comment on individual customer accounts. As a registered MLR firm, we are required to comply with applicable legal and regulatory obligations, including the monitoring and review of customer activity. We may place restrictions on accounts while such reviews are ongoing. Crypto.com Customer Support will continue to engage with the user in question as appropriate.”

The statement identifies a reason why the exchange may restrict an account during review. It does not confirm that Peak’s account is under such a review or state whether it currently exists. 

The company gave no status for the funds and no route or deadline for release.

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Crypto.com’s reference to its regulatory status also needs context. Foris DAX UK is registered by the Financial Conduct Authority for certain cryptoasset activities. The current registration sits under the UK’s money-laundering rules. 

The FCA says the wider authorization regime is expected to begin in October 2027 and MLR registration does not guarantee authorization under it

An FCA notice naming Foris DAX UK also says customers do not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme for these services.

Cases involving inaccessible exchange accounts therefore raise a practical custody issue.

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Other Users Found the Same Maze

Peak’s complaint is not the only 2026 account-access claim visible in Crypto.com’s public forum. The accounts below are anonymous and BeInCrypto could not independently verify them. Their details echo parts of his experience.

Earlier this year, a Canadian user said withdrawals and Exchange access were blocked after a “routine review”. The user later reported that a formal complaint led to access being restored within days, without an explanation for the original restriction.

Reddit User Complaining About a Similar Issue in 2026

Another long-time customer reported an account lock, an unauthorized error, and repeated referrals to a support queue. A Crypto.com community representative offered to escalate the case manually. In a separate thread, a user said a phone-number change triggered a four-day lockout; other commenters described similar loops.

The anecdotes do not establish how common the problem is. They show the same failure mode: access stops, the chat escalates the case, and a public complaint opens another escalation route.

Earlier in March, Crypto.com also cut about 12% of its workforce, roughly 180 roles, as it integrated AI across the business. The company has not said customer support was affected. The evidence reviewed by BeInCrypto does not link the cuts to Peak’s case.

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The Account Still Has No Name

Centralized exchanges can have legal reasons to pause transactions, and financial-crime reviews can limit what they disclose. That power makes an accurate account status and a working escalation path essential.

Peak is one of the several users who remain caught between Crypto.com’s systems. One accepted his login, while another denied authorization. Support called the account “rejected” and later said it did not exist. The press office described restrictions that may occur during reviews, while declining to say whether that explanation applied here.

As of August 21, Peak still had no access to the funds, no deadline, and no account-specific explanation. Crypto.com says support will continue to engage with him. For now, that engagement ends where the story began: in a chat window asking him to wait.

The post Crypto.com Deleted User Account With Funds, Gave No Reason For Weeks appeared first on BeInCrypto.

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Ripple (XRP) Hits $1.42 After Breaking Crucial Resistance Zone: Is the ATH Now Back in Sight?

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XRP has emerged as one of the best-performing crypto assets this week after surging by over 35%. In the past 24 hours alone, it rose by almost 20%.

The latest push has revived talks of all-time highs.

Bulls Find Fresh Fuel

The token broke through several major levels before reaching $1.42 on Friday, including the previously identified $1.293-$1.302 range. Despite attempts from sellers to push the price a little lower, XRP held on. According to Diana’s findings, this may represent a “confirmed breakout” which could bring the previous all-time-high zone back into focus.

However, the 4H RSI remains around 83, indicating extremely overbought conditions. A failure to hold $1.30 could cool momentum and make $1.20 the key support to defend.

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Meanwhile, analyst Crypto Patel said that a move toward $10 for XRP should not be dismissed, while pointing to the token’s past price action as evidence of its potential for sharp gains. The crypto asset traded around $0.006 in 2017, when a move to $3 was considered impossible, before eventually reaching more than $3 in 2018. XRP was also being described as “dead” in 2023 before surging from $0.50 to $2.60 in November 2024.

Taking factors such as fast transactions, low fees, and real-world payment adoption into account, the analyst therefore said that “$10-$20 is absolutely on the table.”

Adding to the bullish backdrop, XRP whales have also continued accumulating. Data cited by analyst Ali Martinez revealed that large holders acquired more than 300 million tokens since the start of the current business week.

Long Bets Surge on Binance

Activity in the XRP derivatives market on Binance is also picking up. CryptoQuant revealed that the funding rate reached 0.0101, its highest level since October 2025. The current funding rate is also well above its 30-day moving average, demonstrating how much stronger the demand for long positions is compared with the recent average.

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However, as more traders build long positions, the cost of maintaining those positions rises. This leaves the market more exposed if XRP suddenly moves lower. A sharp decline could trigger liquidations among leveraged traders and add pressure to the price. For that reason, the funding rate could become an important gauge of whether the crypto asset’s current momentum is sustainable.

If funding stays elevated while XRP remains stable or continues moving higher, it would point to steady demand in the derivatives market. On the other hand, a decline in funding could signal that speculative interest and bullish momentum are starting to weaken.

The post Ripple (XRP) Hits $1.42 After Breaking Crucial Resistance Zone: Is the ATH Now Back in Sight? appeared first on CryptoPotato.

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UAE detentions revive question about Binance bank accounts

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UAE detentions revive question about Binance bank accounts

The recent police detention of Binance employees in the United Arab Emirates (UAE) bears a resemblance to a 2023 incident when US regulators probed Binance after a close associate of then-CEO Changpeng Zhao (‘CZ’) personally controlled corporate bank accounts and customer funds.

According to the New York Times, UAE law enforcement detained Binance employees at airports this summer and held one overnight in a Sharjah police station. Police found their names on a corporate bank account that Binance used to process customer deposits and withdrawals.

Binance Dubai launched direct fiat (AED) deposits and withdrawals on June 2, 2026. The exchange’s own support documentation shows deposits moving by ADCB bank transfer into Binance FZE via virtual IBANs. 

Certainly, any consequence of this year’s incident differs by orders of magnitude relative to three years ago.

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In 2023, Binance ended up paying a $4.3 billion settlement over US anti-money laundering and sanctions allegations, whereas this month’s incident has so far cost Binance workers only two airport detentions and one night in police custody.

Indeed, Binance has emphatically stated that these employees were “promptly cleared and released” this month after “inquiries relating to third-party fund flows.” The exchange claims that other matters were the subject of “routine” questions, saying these employees were “never the targets or subjects of these inquiries.”

Read more: Binance commingled funds at Silvergate: Reuters

Binance repeat performance, or separate UAE incident?

In 2023, Reuters reported that Guangying ‘Heina’ Chen controlled five Silvergate accounts for the supposedly independent Binance.US in prior years. According to Reuters, Binance.US asked Chen’s team to process payments and even cover a few payroll disbursements.

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Binance.US insisted it ran its own accounts. The US Securities and Exchange Commission disagreed.

Binance holds a full Virtual Asset Service Provider regulatory licence from Dubai’s VARA, issued in April 2024. 

In December, the Abu Dhabi Global Market’s Financial Services Regulatory Authority also granted Binance.com full authorization in their emirate. That authorization took effect January 5, 2026. 

Police detention of Binance employees this month in the UAE involve a similarity with conduct in 2023, although no UAE regulator has publicly accused the exchange of misconduct in relation to this month’s detentions.

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In early 2025, Abu Dhabi state-backed MGX invested $2 billion into Binance via USD1, a stablecoin of Donald Trump family’s World Liberty Financial. A few months later, Trump pardoned Binance’s CZ in October 2025.

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on XBluesky, and Google News, or subscribe to our YouTube channel.

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Travere Therapeutics, Stock Of The Day, Tests Another Breakout. Can It Get Any ‘Sweeter?’

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Travere Therapeutics, Stock Of The Day, Tests Another Breakout. Can It Get Any 'Sweeter?'

Travere Therapeutics Travere Therapeutics TVTX $ 66.18 $1.72 2.67% 37% IBD Stock Analysis Stock trying to clear shelf buy point at 66.24 above recent base TVTX Relative Strength line at highs Poised for profitability IBD Composite Rating 80/99 Industry Group Ranking 8/197 Emerging Pattern Consolidation Consolidation A sideways pattern that doesn’t fit traditional base definitions. Sometimes will have a handle.…

Copyright ©2026 Investor’s Business Daily, LLC. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Can AI Predict DeFi Exploits?

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Can AI Predict DeFi Exploits?

Decentralized finance has always promised a financial system that operates without traditional intermediaries. Smart contracts automate lending, trading, borrowing, staking, and liquidity provision. But the same automation that makes DeFi powerful also creates a dangerous reality: when the code fails, the money can move at machine speed.

That raises an increasingly important question: Can artificial intelligence predict a DeFi exploit before an attacker executes it?

The short answer is yes—but not with certainty.

AI is becoming increasingly capable of identifying suspicious smart-contract behavior, unusual transaction patterns, vulnerable code, and attack signals before they turn into catastrophic losses. At the same time, attackers are gaining access to increasingly sophisticated AI capabilities of their own. The future of DeFi security may therefore become an ongoing contest between AI-powered defense and AI-powered exploitation.

The Growing Need for Predictive DeFi Security

Crypto security remains a major challenge. Chainalysis reported that more than $3.4 billion in cryptocurrency was stolen during 2025, although the distribution of losses shifted significantly across centralized services, personal wallets, and DeFi. Interestingly, Chainalysis also observed that DeFi hack losses remained relatively suppressed during 2024–2025 even as DeFi’s total value locked recovered—suggesting that improved security practices may be having an effect.

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Historically, many security systems operated reactively.

An exploit happened.

A monitoring system detected it.

The protocol paused.

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Developers investigated.

Users tried to determine what happened.

By then, millions of dollars could already be gone.

AI changes the potential timeline from reaction to prediction.

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Instead of asking, “Has this transaction stolen funds?”, an AI-powered security system can ask:

“Does this behavior look like the beginning of an attack?”

That distinction could be enormously valuable in DeFi.

How Could AI Detect an Exploit?

AI does not need to magically “know” that an exploit is coming. Instead, it can analyze enormous amounts of data and identify patterns that humans might miss.

Several layers of information can be combined.

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1. Smart Contract Code Analysis

AI models can examine smart-contract code for patterns associated with known vulnerabilities.

These can include:

  • Reentrancy risks
  • Improper access controls
  • Oracle manipulation vulnerabilities
  • Unsafe external calls
  • Integer and arithmetic issues
  • Flash-loan attack surfaces
  • Logic flaws
  • Suspicious upgrade mechanisms
  • Incorrect permission configurations

Traditional security tools already perform static and dynamic analysis. AI can complement these approaches by learning from large collections of vulnerable and secure contracts.

Research published in 2026 has explored transformer-based anomaly detection for smart contracts, demonstrating how machine-learning architectures can analyze contract opcode sequences to identify suspicious patterns.

The important development is not that AI replaces auditing.

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It is that AI can potentially make continuous security analysis possible.

2. Transaction Behavior Analysis

A smart contract may look safe when examined in isolation but behave dangerously when interacting with other protocols.

This is where transaction-level AI becomes particularly interesting.

Imagine a lending protocol normally receiving relatively predictable transactions. Suddenly, an address:

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  1. Obtains a huge flash loan.
  2. Interacts with an unfamiliar contract.
  3. Manipulates an oracle-related asset.
  4. Moves liquidity between several pools.
  5. Initiates an unusually large withdrawal.

Each individual action might appear legitimate.

Together, however, they could form an attack pattern.

AI can analyze these sequences as behavioral signals rather than looking at transactions independently.

This is essentially on-chain behavioral intelligence.

3. Real-Time Anomaly Detection

One of the strongest applications for AI may be detecting deviations from normal protocol behavior.

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Every DeFi protocol develops a kind of behavioral fingerprint.

AI systems can monitor variables such as:

  • Transaction frequency
  • Wallet interactions
  • Liquidity movements
  • Token approvals
  • Borrowing patterns
  • Liquidations
  • Oracle updates
  • Governance activity
  • Contract deployments
  • Cross-chain transfers
  • Large withdrawals

When behavior suddenly deviates from historical patterns, the system can generate a risk score.

For example:

Normal behavior → Low risk

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Unusual behavior → Medium risk

Multiple correlated anomalies → High risk

Known exploit pattern + abnormal transaction → Critical risk

This approach is already moving beyond theory. Chainalysis has described the use of pattern recognition and machine learning to flag risky assets associated with malicious DeFi activity in real time. Its Hexagate security platform reportedly flagged more than $402.1 million in risky assets tied to malicious DeFi activity during Q1 2025.

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4. AI Can Learn From Previous Exploits

One of AI’s biggest advantages is its ability to learn from historical data.

The DeFi ecosystem has experienced countless attacks involving different combinations of:

  • Smart-contract vulnerabilities
  • Flash loans
  • Price manipulation
  • Governance attacks
  • Bridge exploits
  • Privileged-access compromises
  • Oracle failures
  • Liquidity manipulation

These incidents create a massive dataset of attacker behavior.

An AI security system can use historical exploits to identify similarities between past attacks and current activity.

For example, if an attacker begins reproducing a transaction sequence resembling a previous exploit, the system could raise an alert before the final extraction transaction occurs.

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That is where predictive security becomes much more powerful than traditional monitoring.

The AI Arms Race Has Already Started

There is an uncomfortable side to this story.

AI does not belong exclusively to defenders.

Attackers can use it too.

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Recent research from Anthropic demonstrated just how significant this development could become. In simulated testing using a benchmark containing 405 historically exploited smart contracts, AI agents were able to reproduce exploits associated with approximately $4.6 million in simulated value. Researchers also tested agents against 2,849 recently deployed contracts and reported two novel vulnerabilities in simulation. The experiments were conducted in blockchain simulators rather than on live networks.

This creates a fundamental shift.

The traditional security battle was:

Human attacker vs. human security team

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The emerging battle could become:

AI attacker vs. AI defender

That could make DeFi security significantly faster—and significantly more competitive.

Can AI Actually Predict a Zero-Day Exploit?

This is where expectations need to be realistic.

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AI can identify risk signals.

It can discover suspicious patterns.

It can analyze code.

It can simulate potential attack paths.

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It can compare current behavior with historical exploits.

But predicting an unknown exploit with 100% accuracy is extremely difficult.

A zero-day vulnerability may involve a combination of protocol assumptions that has never appeared in the training data.

There is also a fundamental problem with DeFi: the environment changes constantly.

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Protocols upgrade.

Liquidity moves.

New tokens appear.

Governance changes parameters.

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Oracles update.

New chains launch.

Protocols integrate with other protocols.

An AI model trained yesterday may encounter an attack pattern tomorrow that has never existed before.

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Therefore, the goal should not be to build an AI system that claims:

“I know an exploit will happen.”

A better goal is:

“I detect that the probability of an exploit has increased significantly.”

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That distinction matters.

From AI Prediction to Automated Defense

The most powerful DeFi security systems may eventually combine AI prediction with automated response mechanisms.

Imagine a protocol detecting the following:

Risk detected → AI analyzes behavior → threat confidence rises → protocol activates defensive controls

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Depending on the protocol’s architecture, the response could include:

  • Temporarily pausing specific functions
  • Restricting unusually large withdrawals
  • Increasing confirmation requirements
  • Freezing suspicious addresses
  • Switching to a safer oracle
  • Alerting governance participants
  • Notifying security teams
  • Limiting bridge exposure
  • Triggering emergency procedures

This creates a security architecture that resembles an immune system.

The protocol doesn’t wait until the attacker has completely drained the treasury.

It detects the abnormal behavior and attempts to contain it.

A real-world example illustrates the potential. Chainalysis reported that Venus Protocol’s security monitoring detected suspicious activity 18 hours before a 2025 attack, followed by another alert when the malicious transaction occurred. The protocol was able to pause operations and subsequently recover the affected funds.

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The lesson is important:

Detection speed can matter as much as detection accuracy.

AI Will Not Replace Smart-Contract Auditors

It would be a mistake to assume AI makes traditional security professionals obsolete.

DeFi security is multidimensional.

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An AI system may identify a suspicious code pattern, but a human security researcher still needs to understand:

  • Economic incentives
  • Governance structures
  • Protocol assumptions
  • Business logic
  • Cross-protocol dependencies
  • Attack profitability
  • Real-world operational risks

Some vulnerabilities are not obvious bugs.

They are economic vulnerabilities.

A protocol may function exactly as programmed while still allowing an attacker to manipulate incentives or market conditions.

That requires more than pattern recognition.

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It requires understanding the system.

The strongest security architecture will therefore likely combine:

AI + formal verification + automated testing + human researchers + real-time monitoring + incident response.

The Biggest Challenge: False Positives

Predictive security has another problem.

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If an AI system generates too many false alarms, developers may eventually stop paying attention.

Imagine a protocol receiving 500 “critical” alerts every day.

Eventually, someone will ignore alert number 501.

This is why AI security systems need sophisticated risk scoring rather than simple binary decisions.

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Instead of saying:

“This transaction is malicious.”

A better system might say:

“This transaction has a 92% probability of matching behaviors associated with a high-risk exploit pattern.”

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That allows security teams to prioritize threats.

Privacy and Data Quality Matter Too

AI security is only as good as the data it receives.

Incomplete blockchain data can produce misleading conclusions.

Cross-chain activity can be difficult to correlate.

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Private transactions can obscure behavioral signals.

New protocols may lack sufficient historical data.

And attackers can deliberately attempt to generate noise.

There is also a deeper issue: attackers can study defensive models and attempt to manipulate them.

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If hackers learn what triggers an AI warning, they can potentially design transactions that stay just below the detection threshold.

That means AI security systems must continuously adapt.

The Future: Self-Defending DeFi

The most exciting possibility is not simply AI that tells developers an exploit might happen.

It is self-defending DeFi infrastructure.

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Imagine protocols with security layers that continuously:

Monitor → Analyze → Predict → Simulate → Respond → Learn

The AI observes protocol behavior.

It identifies anomalies.

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It estimates potential attack paths.

It simulates possible consequences.

The protocol applies defensive measures.

The system then learns from the incident.

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That creates a feedback loop.

Over time, the protocol becomes increasingly capable of recognizing threats.

This could fundamentally change how DeFi is secured.

The Bottom Line

So, can AI predict DeFi exploits?

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To a degree, yes.

But AI should not be viewed as a crystal ball.

Its real strength is combining huge amounts of blockchain data, smart-contract information, historical exploit patterns, and real-time behavioral signals to identify threats before they become obvious to humans.

And the urgency is increasing.

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Attackers are already experimenting with AI-assisted exploitation capabilities, while defenders are developing machine-learning systems for proactive monitoring and anomaly detection.

The future of DeFi security may therefore depend on who can build the better intelligence system first.

The winning protocols may not simply be the ones with the best audits.

They may be the ones capable of seeing an attack coming—and reacting before the attacker can turn code into cash.

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Final Thought

DeFi was built around the idea that financial infrastructure could become programmable.

The next evolution may be making that infrastructure intelligent enough to defend itself.

AI will not make DeFi exploits disappear.

But it could make the window between “something looks wrong” and “millions have been stolen” dramatically smaller.

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And in decentralized finance, those few seconds—or even milliseconds—can be worth everything.

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YZi Labs-backed BounceBit Chain shuts down after $3M exploit

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YZi Labs-backed BounceBit Chain shuts down after $3M exploit

The YZi-backed bitcoin restaking firm BounceBit announced today that it is shutting down its blockchain after hackers exploited an authorization vulnerability and stole over $3.1 million of its BB token. 

BounceBit claims that between August 19 and August 20, attackers were able to move 286 million BB tokens out of nine of BounceBit Chain’s wallets without authorization. 

Evmos stack caused exploit

An authorization flaw in the vesting and lockup account module hosted by Evmos, and utilized by BounceBit Chain, seemingly led to the exploit. 

BounceBit says the attacker sent an estimated 254 million BB tokens to one “major” crypto exchange, almost 10 million BB tokens to another exchange, and 18.5 million BB tokens remain sitting in a consolidated address.

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BounceBit flagging the exploit one day before the firm sunsets.

Read more: Aave TVL still down 43% since KelpDAO hack

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BounceBit rules out network upgrade

BounceBit claims that it is sunsetting its blockchain after a technical review and will not be able to implement a network upgrade since it is built on the already discontinued Evmos infrastructure. 

It said, “Moving our fork onto a successor codebase would therefore not be a conventional upgrade, but a substantial re-platform requiring a full rebuild, re-audit, and revalidation before it could safely carry user assets again.”

BB tokens will now turn into BEP-20 tokens

Every other BB token, bar the attackers, will be reissued as a BEP-20 token on BNB Chain. A snapshot of the block before the exploit will be used to determine the sum of BEP-20 tokens a user will receive.

BounceBit also claims it has asked crypto exchanges to freeze specific addresses that won’t affect the funds of innocent users.   

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Read more: Tone Vays says his PC looks ‘OK’ after giving hackers access

BB token holders were told that they won’t need to do anything and that they should be cautious of scammers offering help. 

BounceBit raised $6 million in 2024 as part of a seed funding round co-led by Blockchain Capital and Breyer Capital. According to the Binance Square moderator “Tang Hua,” YZi Labs invested later in April 2024. 

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on XBluesky, and Google News, or subscribe to our YouTube channel.

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Bitcoin Surge Lifts Crypto Stocks as Miners, Treasury Firms Soar

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Crypto Breaking News

Crypto stocks finished the week on a strong upswing as Bitcoin reclaimed the upper end of its recent trading range. The latest leg of the rally coincided with a broader improvement in risk sentiment following an announcement from the US Treasury about doubling certain long-dated bond buybacks—an action intended to support liquidity in the Treasury market.

That macro tailwind fed directly into shares linked to digital-asset demand and balance-sheet exposure. According to market data cited by Cointelegraph, Bitcoin rose above $79,000 during Friday’s trading, while major crypto-related equities posted double-digit gains.

Key takeaways

  • Bitcoin’s move above $79,000 helped lift publicly traded miners and crypto treasury companies, including Canaan, Strive and Metaplanet.
  • US Treasury’s decision to double select long-dated bond buybacks was framed as liquidity support, boosting overall risk appetite.
  • Crypto exchange and brokerage stocks such as Coinbase and Robinhood also advanced sharply, reflecting spillover from BTC strength.
  • US regulatory optimism resurfaced after Donald Trump renewed calls for the CLARITY Act, which remains stalled after lawmakers missed progress before the August recess.

Miners and treasury plays catch the rally

Miner and treasury-focused equities led the momentum toward the end of the week, mirroring the strength in the underlying crypto complex. Cointelegraph reported that Canaan was among the top movers, rising more than 25% on Friday. MARA Holdings gained roughly 16% after climbing nearly that amount in Thursday’s session, underscoring how quickly equity sentiment shifted as Bitcoin strengthened.

Balance-sheet exposure proved especially influential. Strive, which holds more than 20,000 Bitcoin (BTC) as described in the report, jumped more than 16% on Friday. Japan-listed Metaplanet, which Cointelegraph noted recently expanded its Bitcoin treasury strategy by acquiring Nasdaq-listed Super League Enterprise, also added more than 16%—a clear reminder that corporate treasury decisions can amplify market reactions when BTC prices move decisively.

These moves also highlight a recurring dynamic in crypto equities: when Bitcoin’s direction stabilizes, investors often rotate from pure crypto proxies to listed companies that either mine BTC or hold it directly. The result is typically synchronized performance across segments with different business models but shared price exposure to BTC.

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Exchanges and brokers move with Bitcoin

Beyond miners and treasuries, companies with more direct access to retail and institutional crypto activity joined the climb. Cointelegraph cited double-digit gains in Coinbase and Robinhood, suggesting that stronger BTC price action can quickly translate into improved sentiment for platforms that benefit from trading volume and user engagement.

In this episode, the linkage was reinforced by the broader market move: CoinMarketCap data referenced in the coverage showed Bitcoin’s weekly gain extending to more than 23% by Friday, briefly surpassing $79,000. Ether (ETH) was also firm, with gains of nearly 30% over the same period and a move above $2,400, according to the report. With both major assets advancing, risk appetite broadened across the publicly traded crypto value chain.

For investors, this matters because listed digital-asset firms often face a mix of idiosyncratic fundamentals (regulatory positioning, custody, cost structures, and product focus) alongside market-driven demand signals. When the underlying coins move together, it can mask—or temporarily override—company-specific concerns as traders reposition around the “beta” of the sector.

Macro liquidity and US policy optimism add fuel

The equity rally didn’t rely on crypto-specific news alone. According to Cointelegraph, stocks rose in tandem with a broader improvement in sentiment after the US Treasury announced it would double certain long-dated bond buybacks. The stated goal was to support liquidity in the Treasury market, which can influence funding conditions across asset classes and strengthen the case for taking risk.

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On the policy side, comments by US President Donald Trump renewed attention on regulatory progress. Cointelegraph reported that Trump again urged Congress to advance the CLARITY Act. The bill is still stalled after lawmakers failed to push it forward before the August recess.

As described in the coverage, CLARITY is widely seen as a step toward a clearer framework for digital assets in the United States, including clarifying the respective oversight roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Even when legislation is not immediately enacted, expectations of a cleaner regulatory boundary can influence how investors price compliance risk and market access for exchanges, custody providers, and other intermediaries.

Trump also revived the possibility of the US government acquiring Bitcoin at a “sizable” scale following meetings with leaders in the crypto industry this week, according to the report. While such statements are not the same as formal policy or procurement authorization, they can still affect near-term sentiment by shaping expectations about long-term demand and government posture.

What to watch next for crypto equities

With Bitcoin’s recovery translating into sharp gains for miners, treasuries, exchanges and brokers, the next key question for market participants is whether the rally can hold if macro liquidity conditions or US regulatory momentum changes. Investors should monitor follow-through in BTC price action above recent resistance levels and keep an eye on any new movement around the CLARITY Act after the recess—since clearer regulatory timelines can matter as much as spot-market direction for listed crypto stocks.

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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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Illuvium Team Cuts Wages To Extend Runway

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Illuvium Team Cuts Wages To Extend Runway


Illuvium's team has agreed to reduce its wages again to preserve the studio's runway, which co-founder Kieran Warwick now puts at more than 12 months, he said Friday. The cut buys Illuvium past August 2027 on Warwick's own numbers, at a point when crypto gaming studios are closing. Proof of Play… Read the full story at The Defiant

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