DeFi protocol Kelp DAO said it will be migrating its restaking token, rsETH, to the Chainlink oracle platform after the $292 million exploit in April, as it continued to blame the attack on LayerZero’s cross-chain infrastructure.

Hackers stole 116,500 Kelp DAO restaked ETH tokens on April 18 from Kelp DAO’s LayerZero-powered bridge, then used them as collateral on Aave v3 to borrow wrapped Ether.

“After the recent LayerZero exploit, we are taking steps to ensure rsETH is fully secure, which is why we are migrating to Chainlink CCIP,” Kelp DAO said in an X post on Tuesday.

Source: Kelp DAO

The Kelp DAO hack has been one of the year’s largest security incidents, causing broader ecosystem contagion and impacting the interconnected crypto lending market. At the center of the exploit has been an argument over who was responsible for the vulnerability. 

Kelp says it wasn’t warned of the security risks

A day after the exploit, LayerZero released a postmortem arguing the hack occurred because of an inadequate setup tied to Kelp’s decentralized verifier network (DVN), which relied on a single LayerZero DVN as the only verified path rather than requiring multiple independent checks to validate cross-chain transactions. LayerZero said it advised against this setup.

However, Kelp DAO said Tuesday the 1-1 setup is the default and is used by many other protocols, citing data from analytics platform Dune that found roughly half of LayerZero users have a single DVN. It also accused LayerZero of approving the setup and failing to warn about the related security risk.

“Kelp has operated on LayerZero infrastructure since January 2024 and has maintained an open communication channel with the LayerZero team throughout. The question of DVN configuration came up multiple times and these configurations were confirmed as secure at that time,” Kelp DAO added.

Following the hack, LayerZero announced it will no longer validate or approve cross-chain messages for any app that relies on a single verifier, and that it is in the process of migrating protocols using the setup to a multi-DVN. 

LayerZero CEO says many of the claims are untrue

Bryan Pellegrino, co-founder and CEO of LayerZero, said in a reply on X that a “ton” of Kelp’s claims were “just completely untrue.”

Related: US law firm attempts to block transfer of frozen ETH from Kelp exploit

He argued that Kelp originally used the defaults, which were multi-DVN, and later manually changed to a 1/1 configuration, which isn’t recommended for production applications.

“The defaults Kelp is referencing in their screenshot were multiDVN or DeadDVN, which force-rejects an application using the defaults at all and requires them to manually set configuration. rsETH was originally configured to use the default LayerZero configuration of a multiDVN setup of LayerZero Labs + Google,” he added.

Source: Bryan Pellegrino

Pellegrino also said a complete postmortem by external security firms would be published soon. 

North Korea-linked hackers are suspected of being behind the attack on Kelp and the April 1 exploit of decentralized exchange Drift, which totaled $285 million. 

Magazine: Bitcoiners eye ‘sell in May,’ SBF’s bid for new trial shut down: Hodler’s Digest, April 26 – May 2

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 Points

• Telegram is set to assume the TON Foundation’s primary responsibilities and will operate as TON’s dominant validator
• The network hosts $752 million in stablecoin liquidity and generates $39.7 million in daily DEX trading volume, demonstrating genuine network usage
• Chain fees total approximately $8,086 daily, revealing poor monetization compared to the network’s overall scale
• Monthly unlocks from the TON Believers Fund release around 36.59 million TON, with the upcoming unlock valued at roughly $75 million
• Validator participation requires a minimum stake of 300,000 TON, while Telegram’s expanding influence creates centralization risks

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Unlike most blockchain networks that struggle to build user bases, Toncoin benefits from an inherent distribution advantage. While competing projects allocate resources toward user acquisition campaigns, funding programs, and reward mechanisms, TON operates with a fundamentally different model.

The TON Wallet exists natively within Telegram’s ecosystem. Users maintain custody of their private keys while experiencing streamlined mobile functionality. This blend of security and ease-of-use represents an uncommon achievement in cryptocurrency.

With Telegram’s registered user count exceeding one billion, TON possesses immediate access to an audience size that remains beyond reach for nearly every other blockchain initiative.

During May 2026, Pavel Durov, Telegram’s founder, revealed plans for Telegram to succeed the TON Foundation as the network’s primary developmental authority. Additionally, Telegram will assume the position of largest network validator.

This declaration generated significant interest around TON while emphasizing the deepening integration between these two platforms.

Evaluating Network Activity Through On-Chain Metrics

Current DeFiLlama statistics indicate approximately $752 million in stablecoin deposits residing on TON infrastructure. The network processes roughly $39.7 million in daily decentralized exchange volume alongside approximately $1.48 million in perpetual futures trading volume over the same timeframe.

These figures demonstrate that both development teams and end users are actively selecting TON for their operations. Capital is flowing into the ecosystem, accompanied by legitimate trading behavior.

Nevertheless, daily network fees amount to just $8,086, while chain revenue approaches $4,043. When assessed against a market capitalization ranging from $5.6 billion to $5.7 billion, this fee production appears substantially inadequate.

Fee economics carry significance because they indicate how much value the protocol actually retains. Substantial transaction activity paired with minimal fee generation suggests users are engaging with the network without the protocol effectively capturing economic value from that engagement.

Supply Releases and Validator Centralization

CoinGecko data indicates roughly 2.7 billion TON tokens currently exist in active circulation. The project’s foundational documentation established an initial maximum supply of 5 billion tokens, with subsequent incremental expansion occurring through validator compensation mechanisms.

The TON Believers Fund presents an additional consideration. Based on Messari’s analysis, this fund distributes approximately 36.59 million TON monthly. Roughly 1.098 billion TON tokens await future distribution through approximately October 2028.

DeFiLlama’s unlock monitoring system values the forthcoming scheduled release at approximately $75 million. This persistent introduction of supply generates continuous downward market pressure.

Regarding validation infrastructure, TON network participation mandates a minimum commitment of 300,000 TON. Reports suggest practical entry requirements typically exceed this baseline threshold.

With Telegram positioned to become the dominant validator, network control is consolidating around a singular organization. While this arrangement may enhance operational coordination and system stability, it simultaneously reduces the network’s decentralized characteristics.

Telegram’s emergence as TON’s primary validator represents the latest factor influencing how market participants and builders evaluate the network’s trajectory.

XRP is back above $1.42, and traders are starting to focus on a chart setup that sent XRP up 66% in less than two weeks when it appeared in 2025.

News Background

• Analysts flagged a repeating XRP chart fractal from 2025, when a breakout from a multi-week bull flag triggered a rally toward all-time highs above $3.

• A bull flag is a pattern where price jumps sharply, then moves sideways or slightly lower for a while before potentially breaking higher again. Traders usually see it as a pause in momentum rather than a full reversal.

• Current price action again shows XRP breaking out of a bull flag while the 20-day and 50-day moving averages approach a bullish crossover.

• Some traders now view holding above $1.40 as critical, with the level acting as both psychological support and the upper boundary of the recent flag structure.

Price Action Summary

• XRP climbed from $1.4011 to $1.4184, extending its weekly gain to nearly 9%.
• A 74.6M volume spike at 13:00 pushed price to $1.4207 before momentum cooled into consolidation.
• The token spent the final hours stabilizing between $1.417-$1.420 after repeated tests of the $1.422 resistance zone.

Technical Analysis

• XRP continues building higher lows, keeping short-term bullish structure intact above $1.40.
• The repeated tests near $1.42 matter because resistance weakens each time sellers fail to force a deeper rejection.
• Liquidity on Binance has fallen to its lowest level since 2020, which historically creates conditions for outsized moves once ranges finally break.
• The broader setup resembles the 2025 breakout structure where XRP compressed for weeks before accelerating sharply higher.

What traders should watch

• $1.42 remains the key breakout level. A clean move above it opens the path toward $1.47-$1.50.
• Holding above $1.40 is equally important because failed breakouts often turn into fast reversals once momentum fades.
• If the range finally resolves lower, $1.34-$1.37 becomes the first major support zone traders watch.

Colombian President Gustavo Petro said the country’s Caribbean coast could become a Bitcoin mining hub if it uses clean energy and brings local communities into the plan.

Petro pointed to Barranquilla, Santa Marta, and Riohacha as possible sites. He said the region could follow countries such as Venezuela and Paraguay, where low-cost energy has attracted Bitcoin mining investment.

Petro made the comments in a post on X while responding to a discussion on Bitcoin mining in South America. He said the Caribbean region could receive “an immense boost” from mining tied to renewable energy.

The president also called for talks with the Wayúu community. He said the Indigenous group should be involved as possible co-owners of future projects. The Wayúu mainly live in La Guajira, where Colombia has strong wind and solar resources.

Paraguay model draws attention

Petro’s remarks referred to Paraguay’s growing role in Bitcoin mining. The country has used surplus hydroelectric power to attract miners, including large firms building sites near the Itaipu dam.

As featured in earlier coverage, HIVE Digital acquired Bitfarms’ 200 MW hydro-powered Yguazú site in Paraguay for $56 million. The company said the deal lifted its planned Paraguay mining infrastructure to 300 MW.

That deal shows why energy-rich countries have become more attractive to Bitcoin miners. Mining firms often seek cheap and steady power, while host countries look for ways to turn unused electricity into revenue.

Colombia’s renewable base supports the proposal

Colombia already gets a large share of its electricity from clean sources. The World Bank said the country generates as much as 75% of its power from renewable energy, more than twice the global average.

That energy mix could help Petro frame Bitcoin mining as part of a clean power plan. He has also warned that crypto mining powered by fossil fuels could worsen climate change.

The Caribbean coast may play a key role because of its wind potential. Reuters reported that state oil firm Ecopetrol bought the Windpeshi wind power project in La Guajira, with operations expected by 2028.

Election timing leaves questions

Petro’s proposal faces a tight political timeline. His presidential term ends in August, and Colombia is set to hold a presidential election on May 31. He cannot run again because of term limits.

The next government will decide whether the idea moves forward. Current leading candidates have not made clear public plans on Bitcoin mining or digital assets.

TLDR:

• Strategy reported a $12.54 billion Q1 net loss tied to a decline in bitcoin’s market price this quarter.
• Michael Saylor proposed selling bitcoin to cover $1.5 billion in annual dividend and debt obligations.
• Strategy holds 818,334 BTC at an average cost of $75,537, with roughly 18 months of dividend coverage left.
• MSTR stock fell over 4% after hours while bitcoin slipped below $81,000 following Saylor’s announcement.

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Strategy, the world’s largest publicly traded corporate bitcoin holder, is considering selling a portion of its bitcoin to meet dividend obligations.

Executive Chairman Michael Saylor disclosed during the company’s Q1 2026 earnings call. The firm reported a $12.54 billion net loss for the quarter.

Strategy currently holds 818,334 BTC at an average acquisition cost of $75,537 per coin. The announcement triggered a sharp market reaction almost immediately.

Saylor Proposes Bitcoin Sales to Meet Dividend Commitments

Saylor outlined a straightforward model for managing the company’s dividend responsibilities. The approach centers on using credit to acquire bitcoin, holding it until the asset appreciates, then selling portions selectively. He explained it plainly: “You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.”

Strategy carries roughly $1.5 billion in annualized dividends and debt obligations. The firm estimates it has approximately 18 months of coverage based on current USD reserves. That runway gives the company some flexibility, though the market clearly viewed the news with caution.

Saylor described the plan as both practical and symbolic. He said the company would “probably sell some bitcoin to pay a dividend just to inoculate the market.”

The goal, according to him, was to demonstrate that the model works — not to signal a retreat from its bitcoin strategy.

The preferred stock dividend structure has long been part of Strategy’s financing approach. Selling bitcoin to service those obligations would mark a notable operational shift. Still, the company framed it as a calculated move rather than a sign of financial distress.

Market Reacts Sharply to Bitcoin Sale Announcement

Following the earnings call, Strategy’s stock dropped more than 4% in after-hours trading. Bitcoin also slid below $81,000 shortly after the announcement.

Investors responded quickly to the possibility of increased selling pressure from one of bitcoin’s largest corporate holders.

The Q1 net loss of $12.54 billion reflected the decline in bitcoin’s price during the quarter. Strategy’s large BTC position means its financials are closely tied to the asset’s market performance. A drop in bitcoin’s value directly affects the company’s reported earnings.

Despite the loss, Strategy maintained its overall bitcoin acquisition strategy. The firm did not announce any immediate plans to reduce its total holdings. The proposed bitcoin sales were framed specifically around dividend obligations, not a broader exit.

The market reaction points to how sensitive bitcoin’s price is to large institutional moves. Even the suggestion of a sale from Strategy was enough to push prices lower. Traders and analysts will likely monitor the company’s next moves closely in the weeks ahead.

Binance Expands Regional Communication Channels

Binance has launched seven regional WhatsApp channels targeting users in India, Ukraine, Kazakhstan, Mexico, Peru, Colombia, and Russian-speaking regions. The channels are one-way communication tools designed to distribute verified updates and educational content related to blockchain, Web3, and cryptocurrency.

The exchange aims to improve accessibility and reduce misinformation by providing region-specific content in native languages. Each channel carries verification through Meta, which helps users identify official sources. Binance also advised users to rely only on verified channels to avoid scams and impersonation attempts that circulate on messaging platforms.

The rollout reflects Binance’s effort to strengthen engagement in markets with growing crypto adoption.

New Contracts Introduced with Limited Market Reaction

Binance has added new perpetual futures contracts, including AMD/USDT, QCOM/USDT, and USAR/USDT. These products offer leverage of up to 10x, giving traders additional tools for derivatives trading.

Despite the launch, the listed assets showed minimal price volatility following the announcement. This response contrasts with earlier cases where similar listings triggered sharp price increases. Market participants appeared to adopt a cautious approach, possibly reflecting changing sentiment toward leveraged products.

The introduction of new contracts aligns with Binance’s ongoing strategy to expand its derivatives portfolio. The exchange continues to introduce instruments that cater to both retail and institutional traders while maintaining risk controls.

Binance Confirms Removal of Selected Trading Pairs

Binance will remove 12 spot trading pairs on May 8, including AVA/BTC, ENA/BTC, and MAGIC/BTC. The action forms part of its routine review process, which evaluates liquidity, trading volume, and overall market quality.

The delisting will also affect automated trading bots tied to these pairs. Users must update or cancel such tools before the removal date to avoid disruptions. The underlying tokens will remain available through other trading pairs where applicable.

Binance conducts periodic reviews to maintain a stable trading environment. These actions aim to reduce risks linked to low-liquidity markets and improve user experience across the platform.

For more details, see the Binance Support Announcement.

Brad Garlinghouse has warned that recent Senate progress on the CLARITY Act still leaves a narrow window for the bill to move forward.

According to Brad Garlinghouse, the next two weeks will determine whether the digital asset market structure bill can advance, as delays risk pushing the issue into the political cycle ahead of the 2026 U.S. midterm elections. 

Speaking at the Consensus crypto conference, the Ripple CEO said the bill’s chances would “drop precipitously” if lawmakers fail to act within that timeframe, adding that campaign pressures could turn the legislation into “too much of a loaded issue.”

His remarks stand in contrast to his earlier timeline. At XRP Las Vegas on April 30, Garlinghouse had said he expected the CLARITY Act to reach President Donald Trump’s desk before the Memorial Day recess, after previously assigning an 80% probability of April passage during a February appearance on Fox Business. 

Data tracked by crypto.news placed market expectations lower, with Polymarket pricing 2026 passage near 46%, while Galaxy Research and TD Cowen offered similar or weaker odds.

Stablecoin deal clears a key hurdle, timeline remains tight

Garlinghouse’s comments followed a compromise on stablecoin yield announced by Senators Thom Tillis and Angela Alsobrooks. The agreement restricts crypto platforms from offering interest-like returns on stablecoins that resemble bank deposits, while still allowing rewards tied to payments and platform activity.

As reported by crypto.news, the yield dispute had delayed the bill since January, with disagreements centred on whether third-party platforms could distribute returns on stablecoin balances. A White House Council of Economic Advisers report found that a full ban could cost consumers $800 million annually, a finding Garlinghouse cited as part of the path toward compromise.

Despite the breakthrough, industry voices have pointed to remaining uncertainty. According to Daniel Reis-Faria, the agreement reduces one barrier for investors but does not address concerns about how future rules will be applied. Reis-Faria said institutional players remain cautious because implementation details, expected from regulators within a year of passage, are still unclear.

The CLARITY Act has already passed the U.S. House of Representatives and cleared a Senate Agriculture Committee markup in January, but it still requires approval from the Senate Banking Committee before a full chamber vote. Crypto.news has tracked at least five remaining steps, including committee approval, a 60-vote threshold in the Senate, and reconciliation with both the Agriculture version and the House bill.

Ripple executives, including Garlinghouse, have participated in discussions between White House officials, crypto firms, and banking groups as negotiations progressed. The bill also intersects with ongoing coordination between regulators, after the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission signed a memorandum of understanding in March to align oversight approaches for digital assets.

Garlinghouse acknowledged that the legislation remains imperfect but argued that regulatory clarity outweighs continued uncertainty, describing the outcome as a set of necessary compromises rather than a complete solution.