Cosmos Hub validators halted block production on Tuesday, following a governance attack on Neutron which initially led to losses of $9.5 million.

Of that sum, the attacker was only able to extract around 20%, with the remainder stuck on halted networks.

With block production having resumed since 12:00 UTC on Wednesday, Cosmos Hub was ultimately offline for over 24 hours after halting at block height 33086740.

This latest incident marks the third security scare in recent months for the wider Cosmos ecosystem.

Read more: Cosmos Labs under fire over disclosure of bug affecting four blockchains

The governance attack

A malicious “AI Agent Takeover” governance proposal was passed on Neutron, a Cosmos-ecosystem chain which entered its “long-term maintenance phase” earlier this year.

The proposal allowed the attacker to take control of two Neutron-based applications, Astroport and Drop, and drain contracts of assets worth $4.9 million and $4.4 million, respectively.

The attacker reportedly spent just $20,199 to acquire the NTRN tokens needed to pass the vote.

The response

In response to the attack, Neutron was paused, trapping an estimated $5 million worth of assets.

In turn, Cosmos Hub validators also decided to halt, securing a further 1.2 million ATOM (over $2.2 million) held in the attacker’s address. The scheduled restart is set to include a queued refund of the trapped ATOM balance.

The hacker’s Ethereum address holds $1.8 million, with a further transaction worth over $300,000 pending on THORChain, though this is set to be refunded to the Cosmos Hub address upon restart.

Read more: Osmosis took 74 days to discover 40-BTC Nomic exploit

Chaos in the Cosmos ecosystem

In late August, a bug in Cosmos Labs’ Cosmos EVM module led to protocol-level exploits on four blockchains.

The disclosure procedure was heavily criticised by one of the affected projects, KiiChain, which dubbed the loss of $9 million worth of its KII tokens “avoidable.”

Earlier this month, Cosmos-based exchange Osmosis revealed that a June 25 exploit of Nomic’s bridge had minted 40 nBTC (worth $3.6 million at the time) out of thin air, which left Osmosis’ allBTC partially (36%) unbacked.

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What areas are affected?

Open interest distribution

The $70,000 strike has more open contracts than any other, and the calls there are now deep in the money.

Strijers said 55% of the $9.4 billion in call bets due for expiry are in the money. Puts, meanwhile, are mostly worthless right now. Put it together, and about a third of the entire $15.9 billion book is currently in the money.

Being in the money means being in profit – an option has intrinsic value because the market price is on the favorable side of its strike. For a call, the underlying trades above the strike; for a put, it trades below the strike.

Deribit’s Chief Commercial Officer Jean-David Péquignot said the distribution of open interest across strike prices suggests a price floor around $75,000.

“Open interest is heavily concentrated at the $85k, $90k, $95k, and $100k call strikes, underscoring the ongoing influence of large 85k/90k/95k/100k call condor blocks that are now coming directly into play as spot trades near $86k,” Péquignot said. “On the put side, defensive structures are firmly anchored at $60k, $70k, and $75k, creating a multi-layered support floor.”

What happens on the expiry day?

Friday’s expiry could breed some market turbulence, eventually resetting the trading range for BTC’s spot price.

That’s because, as per Strijers, the expiry will clear out dealer-related hedging.

• Nexo says 67% of affluent investors own crypto, but integration stays low.
• Security, fees and platform complexity emerge as key barriers to adoption.
• US investors show deepest crypto integration despite lower ownership rates.

High-net-worth investors are increasingly buying crypto, but many are still reluctant to make it a major part of their long-term wealth plans, according to a new Nexo survey.

The report found that 67% of affluent investors across the US, UK and Argentina already own crypto. However, security concerns, high fees and complicated platforms are stopping many from using digital assets for retirement planning or replacing traditional investments.

Nexo published its “Future of Digital Wealth 2026” report on September 23 after surveying 1,000 affluent investors. Its new Crypto Integration Index, which measures how deeply crypto is incorporated into investors’ finances, produced an average score of 4.83 out of 10.

Ownership outpaces deeper integration

Nexo said a score near the survey average of 4.83 represents a small, short-horizon crypto position outside retirement planning.

Only 4.7% of surveyed investors scored seven or higher, a level Nexo describes as structurally integrated, where crypto has replaced a traditional asset and forms part of longer-term financial planning.

The report found that just under 20% of respondents expect crypto to become their number-one personal wealth driver over the next decade, ahead of salary, equities and real estate.

More than 40% are already invested in crypto without yet building wealth with it.

“Once an investor gets past the risk perception stage, what’s left is security, fees, and platform user-friendliness and capabilities – the same things we’ve spent years building Nexo to solve,” said Neil Steinhardt, COO, Nexo US.

That’s the gap between owning crypto and actually building wealth with it, and it’s exactly where our platform is designed to meet investors.

Integration also varies by market. Argentina had the highest ownership rate at 74%, but a CII score of 4.62. The US had the lowest ownership at 62%, but the deepest integration with a score of 5.07.

The UK recorded 65% ownership and a CII score of 4.75.

Platform trust becomes the next hurdle

The report said crypto integration peaks among investors aged 35 to 44, with 28% treating digital assets as a core retirement asset.

Investors aged 18 to 25 reported the highest ownership and conviction, with more than 90% holding crypto, but only 2% maintaining a horizon of 10 years or longer.

Among structurally integrated investors with CII scores of seven or more, reported frictions shift towards platform trust. Security concerns were cited by 36%, high fees by 34%, and platform complexity by 28%.

“Risk perception used to be the story in every crypto adoption survey. It isn’t anymore,” said Iliya Kalchev, analyst at Nexo.

In our data, risk perception barely separates investors who’ve built real wealth with crypto from those who haven’t — what actually divides them is whether they’ve substituted crypto for a traditional asset and folded it into retirement planning. For affluent investors it’s the planning and the smoothness of operating with that crypto that remains to be resolved.

The survey was fielded in February and March 2026 through Attest. Respondents needed at least $100,000 in liquid assets in the US and UK, or $40,000 in Argentina, thresholds calibrated to capture the top 25% to 30% of each market by investable wealth.

Nearly 67% of affluent investors across the United States, United Kingdom and Argentina have owned crypto, but only 4.7% have integrated digital assets deeply into long term financial planning, according to new research from Nexo.

According to Nexo’s “The Future of Digital Wealth 2026” report, operational issues such as security, fees and platform complexity remain among the main obstacles for wealthy investors who already have exposure to digital assets.

The survey covered 1,000 affluent investors and was conducted through research platform Attest in February and March 2026. Participants needed at least $100,000 in liquid assets in the U.S. and U.K. or $40,000 in Argentina, thresholds Nexo said were designed to capture the top 25% to 30% of investors by investable wealth in each market.

Ownership was relatively common across the surveyed group, with roughly two thirds holding digital assets. Their average score on Nexo’s new Crypto Integration Index, however, stood at 4.83 out of 10.

High net worth investors own crypto but integration remains limited

Nexo created the Crypto Integration Index to measure how digital assets fit into an investor’s finances beyond simply owning them. Five factors receive equal weight: allocation size, holding period, retirement integration, replacement of traditional assets and perceived risk.

An investor near the 4.83 survey average typically held a relatively small crypto position over a shorter period and had not incorporated it into retirement planning, according to the report.

Only 4.7% of respondents scored 7 or higher. Nexo classified investors above that threshold as “Structurally Integrated,” meaning their crypto positions had generally been held for longer, had replaced part of a traditional asset allocation and had become part of long term financial planning.

Conviction appeared stronger than the integration figures suggested. Just under 20% of surveyed investors expected crypto to become their biggest source of personal wealth creation over the coming decade, ahead of salary, equities and real estate.

Nexo analyst Iliya Kalchev said perceived risk showed little difference between investors who had deeply incorporated crypto into their finances and those who had not.

“What actually divides them is whether they’ve substituted crypto for a traditional asset and folded it into retirement planning,” Kalchev said.

Interest in incorporating crypto into managed portfolios has appeared elsewhere in the wealth industry. A September poll shared by Bitwise found that 60% of participating wealth managers planned to allocate to crypto within a year, even though 67% said they were not currently allocating client portfolios to digital assets.

Security and fees remain hurdles for deeper crypto use

Operational concerns became more prominent among investors who had already reached higher levels of crypto integration.

Among respondents with Crypto Integration Index scores of 7 or above, 36% cited security concerns as a source of friction. High fees were identified by 34%, while 28% pointed to platform complexity.

Neil Steinhardt, chief operating officer of Nexo US, said investors who had moved beyond concerns about crypto risk were left dealing with security, fees and the usability and capabilities of platforms.

“That’s the gap between owning crypto and actually building wealth with it,” Steinhardt said.

Nexo has a commercial interest in digital asset adoption and acknowledged that relationship in disclosures accompanying the research. The company said its index is intended as a descriptive measure of reported investor behavior and that a higher score should not be interpreted as representing a better investment strategy.

The findings come after Nexo returned to the U.S. market in February 2026 with investment, trading and crypto backed credit products. As crypto.news previously reported, the relaunch followed the company’s earlier withdrawal from the country and a $45 million settlement with U.S. regulators over its Earn Interest Product.

Nexo said at the time that its U.S. services would operate through a compliance focused framework. CryptoQuant data cited around the relaunch showed the platform had issued approximately $863 million in loans during the preceding year.

Crypto integration differs across the U.S., U.K. and Argentina

Nexo’s survey found a gap between the number of people holding crypto in each market and the extent to which those holdings had become part of their financial planning.

Argentina recorded the highest ownership rate at 74%, but its average Crypto Integration Index score was 4.62, the lowest of the three markets surveyed.

The United States produced the opposite pattern. Crypto ownership among U.S. respondents stood at 62%, below Argentina and the U.K., while its average integration score of 5.07 was the highest.

U.K. respondents sat between the two markets, with 65% reporting crypto ownership and an average index score of 4.75.

Argentina has become a growing market for Nexo itself. The company launched a crypto card in the country in July, allowing eligible clients to make purchases in Argentine pesos and U.S. dollars while using digital assets through the platform. Nexo appointed Andres Ondarra as general manager for Argentina as part of the same expansion.

The country’s relatively high ownership rate comes as the number of people holding crypto worldwide continues to grow. Henley & Partners estimated in September that global crypto ownership had reached 742 million people, even as the number of crypto millionaires fell to 135,694 during a contraction in the digital asset market.

Retirement use peaks among investors aged 35 to 44

Age produced another gap between crypto ownership and its use in long term financial planning.

Investors between 35 and 44 recorded the deepest retirement integration in Nexo’s survey, with 28% treating crypto as a core retirement asset.

Respondents between 18 and 25 showed the highest ownership and conviction. More than 90% in the age group reported holding crypto, but only 2% said they had an investment horizon of at least 10 years.

Retirement products have gradually begun opening additional routes for digital asset exposure in some markets. Coinbase Australia, for example, added support for self managed super funds in May, allowing eligible trustees to incorporate crypto exposure into self directed retirement portfolios.

Institutional surveys have shown a similar willingness to consider larger allocations. A Coinbase and EY Parthenon survey of 351 institutional investors conducted in January found 73% planned to raise their digital asset allocations during 2026, while 74% expected crypto prices to rise.

Nexo cautioned that its own findings apply specifically to the surveyed group of affluent investors and are not representative of the general population. The company described crypto assets as speculative and high risk instruments whose value can fall rapidly, while advising investors to seek independent financial, legal and tax advice before making investment decisions.

A BitGo Research report said that Bitcoin (BTC) absorbed two bearish catalysts, a rate hike by the Federal Reserve and the Senate’s failure to pass the CLARITY Act, to recover and maintain its position above $86,000.

According to the report, BTC’s price action was the outlier compared with other assets like gold and equities. The flagship cryptocurrency fell toward $75,000 following the rate hike before making a quick recovery as ETF demand and short covering supported the rally.

Bitcoin Absorbs Bearish Catalysts

According to BitGo Research Chief Greg Cipolaro, BTC’s reaction contrasted with that of traditional assets like gold after the Federal Open Market Committee (FOMC) raised interest rates. Cipolaro argued that the flagship cryptocurrency’s muted reaction to the hike and the CLARITY Act setback likely means the price action had already factored in the bearish developments. Renewed ETF demand, lower oil prices, declining Treasury yields, and short covering also supported BTC’s rally.

“Bitcoin absorbed a hawkish FOMC surprise and a failed Clarity Act vote in the same week, and shrugged off both. Gold, equities, and the dollar moved exactly as textbooks predict. Bitcoin didn’t.”

Two Bearish Catalysts for Bitcoin

The first bearish catalyst was the Senate’s failure to pass the CLARITY Act, a development that came before the Federal Open Market Committee (FOMC) decision. The US Senate rejected cloture to proceed with H.R. 3663. The vote ended 49-59, 11 votes short of the number required. The CLARITY Act aims to establish a clear federal framework, dividing oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Senator Thom Tillis, who was actively involved in bipartisan discussions regarding crypto market rules, ultimately voted against cloture so that he could file a motion to reconsider. However, no new cloture vote is on the Senate’s official list.

The next bearish catalyst for BTC was the Federal Reserve’s decision to raise interest rates by 25 basis points. It was the first rate hike since July 2023 and was supported by all 12 voting members of the committee. BitGo said that, while the hike was expected, the Fed’s new rate projections caught markets by surprise. According to the September Summary of Economic Projections, the median federal funds rate was 4.1% for 2026 and 2027, against June projections of 3.8% and 3.6%. Meanwhile, projections for 2028’s median jumped from 3.4% to 3.9%. Additionally, 16 of the 18 committee members project at least one more rate hike this year. According to Cipolaro, the projections suggest Fed officials expect interest rates to remain elevated.

Meanwhile, the traditional markets reacted along expected lines to the Fed’s decision. The Dow Jones ended September 1.21% lower, and the S&P 500 fell 0.44%, while short-term Treasury yields rose and the dollar strengthened.

Bitcoin (BTC) Price Action: A Case for Resilience

Bitcoin’s reaction to both developments was telling. The flagship cryptocurrency dropped sharply after the Senate failed to advance the CLARITY Act, falling over 3% to $75,584. The Fed’s decision to increase interest rates drove the price lower. However, BTC rebounded from a low of $74,911 to reclaim $76,000 and close at $76,144. The recovery was attributed to the fact that the rate hike was already priced in. The flagship cryptocurrency continued its ascendancy despite the bearish developments, as ETF inflows, improved market sentiment, and short covering pushed the price higher.

BTC rose nearly 6% on Friday thanks to positive regulatory shifts and renewed institutional demand, crossing $80,000 and settling at $80,875. The flagship cryptocurrency started the current week with a 6.70% jump, crossing $86,000 and settling at $86,594. BTC is currently trading around $86,140.

The rebound occurred as spot Bitcoin ETFs recorded substantial inflows. CoinGlass data shows the ETFs recorded $159.50 million in inflows on Thursday, and $433 million on Friday. Inflows jumped to $999 million on Monday, while Tuesday recorded $714.70 million, taking total inflows to $2.3 billion over four sessions. Nansen research analyst Nicolai Sondergaard also highlighted strong inflows as a key driver behind BTC’s rally, with forced short liquidations as another factor.

According to BitGo, BTC did not behave as expected following the current hike. Cipolaro said BTC historically weakened alongside other traditional assets when market conditions became difficult. Equities, gold, the dollar, and Treasury yields behaved as expected, while BTC was the outlier. However, BitGo highlighted spot Bitcoin ETFs, which gave institutions and brokerages regulated access to the asset; several public entities held BTC on their balance sheets, and derivatives markets have also grown considerably.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.