• Legacy Aztec Network contracts were drained of over $4M in three days.
• Attacks exploited flaws in zero-knowledge proof verification logic.
• The core Aztec network and AZTEC token were not affected by the exploits.

Aztec’s legacy infrastructure has come under a coordinated wave of attacks, leading to losses that crossed $4 million within just three days.

The exploits targeted deprecated smart contracts that had already been shut down years earlier but still held on-chain liquidity.

Despite being labelled as inactive and immutable, the contracts remained accessible to attackers who exploited weaknesses in zero-knowledge proof verification logic.

While the attacks did not affect the current Aztec network or its AZTEC token, they exposed long-standing risks tied to retired DeFi systems that continue to exist on Ethereum without active maintenance or upgrade paths.

First breach: Aztec Connect drained of $2.1 million

The first incident occurred on June 14, when attackers exploited the Aztec Connect protocol, a deprecated privacy-focused bridge that had been officially shut down after its retirement phase.

The contract was already considered inactive, yet it still contained residual funds.

The attacker managed to drain approximately $2.1 million in digital assets, including around 909 ETH, 270,000 DAI, and 167 wstETH, alongside other smaller holdings.

The exploit was linked to flaws in the way rollup proof verification was handled, allowing invalid or manipulated proofs to be accepted as legitimate.

What made the situation more critical was the nature of the contract itself.

Aztec Connect was described as immutable, meaning it could not be paused or patched once deployed.

Even though users had previously been encouraged to withdraw funds before shutdown, the remaining balance became an easy target for exploitation years later.

Security teams reviewing the incident pointed to a breakdown in the relationship between zero-knowledge proof validation and on-chain settlement logic.

In simple terms, the system accepted proofs that did not correctly match the underlying transaction state, allowing the attacker to trigger unauthorised withdrawals.

Second attack: Private Rollup Bridge exploited for $2.15 million

Just three days later, a second exploit hit another legacy system known as the Private Rollup Bridge.

This contract was also part of Aztec’s older infrastructure and had been deprecated following the transition away from earlier rollup designs.

In this case, attackers drained roughly 1,158 ETH, valued at close to $2.15 million at the time of the incident.

The method used was different in execution but similar in technical root cause.

Instead of directly manipulating withdrawals through basic proof mismatch, the attacker leveraged a vulnerable “escape hatch” mechanism embedded in the bridge design.

By submitting a specially crafted zero-knowledge proof, the attacker was able to trigger the contract’s exit logic.

The system incorrectly validated the proof and released funds without proper verification of the underlying state transitions.

This allowed the attacker to extract liquidity in a single coordinated sequence.

Like the earlier exploit, this breach did not involve private key compromise or reentrancy vulnerabilities.

Instead, it highlighted deeper issues in how proof validation was structured in legacy rollup systems, particularly when contracts remain permanently active on-chain after being officially sunset.

Response from Aztec and security firms

Following both incidents, Aztec Labs and the Aztec Foundation confirmed that the affected systems were deprecated products with no connection to the current Aztec network or AZTEC token ecosystem.

The Aztec Foundation was made aware of a potential exploit targeting a deprecated product which occurred on June 17, 2026. There are no links between this product and any smart contracts related to the current network or the AZTEC ERC20 token.

The product was deprecated 4 years… https://t.co/kANaIuw8HF

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— Aztec Foundation (@aztecFND) June 18, 2026

They emphasised that neither contract could be upgraded, paused, or controlled, as both were designed to be immutable at deployment.

Security firm CertiK Alert also flagged the Private Rollup Bridge exploit, identifying the attacker’s address and confirming the movement of funds tied to a specific Ethereum transaction.

Their analysis aligned with other reviews, suggesting that the vulnerability stemmed from flaws in zero-knowledge proof verification rather than conventional smart contract bugs.

Aztec representatives also clarified that the Private Rollup Bridge and Aztec Connect incidents were separate events, even though they occurred within a short timeframe and shared similar technical weaknesses.

Bitcoin BTC$62,854.89 and the Dollar Index (DXY) are moving in opposite directions, with the latter on the verge of a major move that may embolden crypto bears.

The largest cryptocurrency is under pressure for a third straight day, trading near $63,900 and down nearly 1% since midnight UTC. The broader market is mostly showing similar losses, with the exception of a few tokens such as HASH, XLM and ENA, which gained 7% or more.

The Dollar Index, which tracks the U.S. currency’s value against major fiat currencies, has gained 0.26% to 100.66, extending Wednesday’s 0.8% rise. What’s notable is that the index is now on the verge of firmly breaking out of a 13-month-long trading range.

This type of setup usually leads to more momentum chasing by traders, resulting in further gains. Strength in the greenback typically weighs on dollar-denominated assets such as bitcoin.

BTC has historically tended to move in the opposite direction to the dollar. Its 90-day correlation coefficient with the DXY was recently minus 0.82.

The biggest winners from the rotation have been memory and semiconductor stocks. Memory-chip maker Sandisk (SNDK) has surged roughly 800% this year and the Global X Artificial Intelligence & Technology ETF, which focuses on memory-related companies (DRAM), is up about 140%. In microprocessors, Micron Technology (MU) has gained about 230% this year, and the VanEck Semiconductor ETF (SMH) 67%.

The investments highlight a growing preference for the companies supplying the infrastructure behind the AI boom rather than the hyperscalers funding it.

In addition, capital has been attracted SpaceX (SPCX), Elon Musk’s space exploration company that is also expanding into AI. Last week, the company raised $75 billion in the largest IPO in history.

While AI has become the market’s dominant investment theme, the cash required to feed the growth is rising even faster. Google parent Alphabet (GOOGL), Amazon, Microsoft and Meta are expected to spend a combined $725 billion on capital expenditures this year, a 77% increase from last year’s record level.

Free cash flow is no longer fully funding these ambitions. Alphabet, Amazon and Meta, collectively borrowed some $93 billion last year, accounting for roughly 6% of total corporate bond issuance.

Another source of support is also fading. Share repurchases have fallen 33% to $132 billion in 2025, reducing a key pillar of demand for these stocks.

Blockchain infrastructure firm Alchemy said AI agents with its AgentCard now have access to the Visa (V) network with complete identity and payment capabilities, enabling them to make online purchases on behalf of consumers.

The integration allows AgentCard, a virtual ID and spending card for AI agents, to access Visa Intelligent Commerce to book a vacation, order groceries or renew a subscription, for example, without the consumer ever touching a checkout screen.

Agent-native payment protocols are in early adoption with firms like Stripe, Visa and Mastercard (MA) driving hard into this new area, known as agentic commerce. AgentCard works with agents built on models from any provider, including OpenAI or Anthropic.

“Every major computing shift has produced a new kind of economic actor,” Nikil Viswanathan, co-founder and CEO of Alchemy, said in a statement. “The internet created online businesses. Mobile created the app economy. AI agents are next, and they need to be able to access the global economy, and AgentCard is how that starts.”

The Chicago Mercantile Exchange (CME) Group said it was taking legal action against the US Commodity Futures Trading Commission (CFTC) over cryptocurrency perpetual futures.

In a Thursday filing in the US District Court for the District of Columbia, CME filed a complaint against the CFTC and its chair Michael Selig over the agency’s regular approvals of perpetual futures tied to crypto. The lawsuit stemmed from a May 29 notice from the CFTC approving perpetual futures contracts tied to the spot price of Bitcoin (BTC) for prediction markets platform Kalshi and issuing a no-action position for similar products on cryptocurrency exchange Coinbase.

According to CME’s filing, the CFTC’s approval of such products went against directives from the US Congress by treating “futures” as “swaps” with expiration dates. The company alleged that the agency was in violation of the Commodity Exchange Act and a court should vacate its actions over perpetual futures, noting that Selig had unilaterally acted without a full panel of five CFTC commissioners.

“With one stroke of his pen, [Selig] overrode Congress’s definition of the term ‘swap’ and circumvented the regulatory regime Congress required for that form of derivative,” said the complaint, adding:

“The CFTC’s failure to evenhandedly, consistently, and correctly apply the CEA risks harming competition and destabilizing derivatives markets.”

Source: PACER

The lawsuit came just one day after CME CEO Terrence Duffy said that the company would be taking legal action against the CFTC. In a Monday CNBC interview, Selig said that perpetual futures contracts “trade very similarly” to others, describing the CFTC’s position as “good for investors” and claiming that the Commodity Exchange Act “does not define the term ‘futures contract.’”

A CFTC spokesperson told Cointelegraph that CME had engaged in “lawfare” against the agency and the administration’s crypto policies, calling the complaint “frivolous.”

Related: ICE, CME press US regulators to ‘rein in’ Hyperliquid energy trading: Report

Kraken also announced the launch of perpetual futures trading for US users through CFTC-regulated platform Bitnomial.

CME CEO Terry Duffy. Source: CNBC Fast Money

Selig acts alone on prediction markets, perpetual futures, CFTC agenda

Confirmed by the US Senate in December 2025, Selig remains the chair and sole commissioner at the CFTC in a leadership panel intended to consist of a bipartisan group of five people. As of Thursday, US President Donald Trump had not announced any nominations to fill the seats, despite urging from many members of Congress to do so.

Magazine: OpenAI files for IPO, SEC scraps 611 rule and Hungary overhauls crypto: Hodlers Digest June 7-13

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.

Key Highlights

• QUBT stock advanced following Planck Dynamics’ order of five NeuraWave platforms for 2026 delivery.

• The NeuraWave agreement provides QCi with tangible commercial momentum in AI computing markets.

• The partnership with Planck Dynamics opens defense sector opportunities for QCi’s photonic technology.

• A possible $10M expansion hinges on achieving specific milestones and customer requirements.

• NeuraWave leverages photonic reservoir computing for edge AI applications requiring minimal latency.

Shares of Quantum Computing Inc. (QUBT) advanced following news that Planck Dynamics had placed an order for the company’s NeuraWave technology. QUBT stock traded at $10.34, representing a 5.78% gain, as investors responded to the commercial validation. The shares briefly touched $10.50 during intraday trading before stabilizing near session highs.

Quantum Computing, Inc., QUBT

NeuraWave Contract Lifts QUBT Stock

Quantum Computing announced that Planck Dynamics has committed to an initial purchase of five NeuraWave computing systems. Delivery is scheduled for 2026, with technical coordination work commencing immediately. This purchase order establishes QCi’s first commercial foothold in photonic reservoir computing applications.

The arrangement establishes a foundation for potential expansion of NeuraWave deployments moving forward. QCi indicated the overall program value could surpass $10 million based on achievement of specified performance benchmarks. Additional system orders remain contingent upon Planck Dynamics reaching development targets and satisfying contractual requirements.

Planck Dynamics functions as part of NUNC Capital BV’s investment portfolio based in the Netherlands. The firm specializes in defense applications and develops real-time analytical systems for operational environments. This collaboration positions QCi’s photonic technology within a rigorous, performance-driven sector.

Photonic Computing Partnership Focuses on Edge Applications

QCi engineered NeuraWave specifically for temporal artificial intelligence and time-series data analysis tasks. The platform employs photonic reservoir computing architecture to deliver rapid, efficient processing of sophisticated datasets. Consequently, it addresses scenarios where centralized computing infrastructure introduces unacceptable latency.

The collaborative program will validate electro-optic computing capabilities for advanced AI processing needs. It seeks to enable both commercial and governmental applications across diverse operational contexts. The initiative emphasizes rapid response times, minimal energy consumption, and instantaneous analytical output.

This application domain is significant because edge computing architectures process information at or near data generation points. Such systems frequently support sensor arrays, mobile platforms, and geographically distributed infrastructure. Thus, QCi has tailored NeuraWave for scenarios where processing speed and reduced power requirements are mission-critical.

Commercial Validation Strengthens QCi Strategy

Quantum Computing has centered its business approach on quantum optics and integrated photonic technologies. The firm aims to transition advanced computing capabilities from laboratory environments into practical commercial deployments. This partnership delivers tangible evidence of customer demand supporting that strategic direction.

Both organizations will develop a detailed Statement of Work governing the partnership activities. This document will define technical milestones, system integration objectives, and implementation timelines. It will serve as the roadmap for continued collaboration between QCi and Planck Dynamics throughout the project lifecycle.

While the agreement doesn’t ensure the complete $10 million program materialization, it provides QUBT with substantive positive news following a turbulent trading period. The contract also validates growing market recognition of photonic computing solutions for sophisticated AI applications.

 

These standards, according to the rule proposal, “must include reasonable procedures for: (1) verifying the identity of any person seeking to open an account to the extent reasonable and practicable; (2) maintaining records of the information used to verify a person’s identity, including name, address, and other identifying information; and (3) determining whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the financial institution by any government agency.”

The Fed opened a 60-day public comment period alongside the other agencies in the joint effort, including the Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., National Credit Union Administration and the Treasury Department’s financial-crimes arm.

In September, the regulators had issued a more preliminary document seeking comments to direct their GENIUS implementation in this and other areas, and the Treasury received 450 comments. This new stage is known as a “notice of proposed rulemaking,” which comes with another comment period and review before the agencies can eventually issue final joint rules and begin enforcing the regulations.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) has pursued its own related rule to apply the GENIUS Act anti-money laundering provisions on issuers.