Crypto World
Jeremy Grantham says this is ‘the most expensive market in ‘American history’

Veteran investor Jeremy Grantham thinks the artificial intelligence boom has pushed the U.S. stock market to its most expensive level ever and could eventually lead to a historic decline.
“Based on the value of the stock market compared to GDP, with modifications, this is the most expensive market in American history,” Grantham told CNBC’s “Squawk Box.”
While the GMO co-founder said he wasn’t sure there was a comparable period, the tech bubble of 2000 is the closest analogy. He also highlighted the so-called Buffet indicator, which compares the total value of the U.S. stock market valuation with the size of the economy in terms of GDP.
The market capitalization to GDP ratio referenced by Grantham is estimated to be at 235%, according to Longtermtrends.com. It means that the value of the total stock market is more than two times the size of the U.S. economy.
Legendary investor Warren Buffett used this indicator, saying years ago that when it “approaches 200% — as it did in 1999 and a part of 2000 — you are playing with fire.”
Graham said that, while the timing was terribly uncertain, markets could potentially peak.
Grantham is a famed investor known for his history of calling bear markets and has issued similar dire warnings in the past, including in March 2024.
At the time, he predicted the long-term outlook for U.S. stocks was almost as poor as at any other point in history but the stocks continued to advance after that warning.
“The long-run prospects for the broad U.S. stock market here look as poor as almost any other time in history,” Grantham had said in a blog post released by Boston-based GMO at the time.
Grantham on SpaceX
Grantham also discussed SpaceX following its blockbuster IPO. The stock raced higher in the first few days of trading but has sine lost steam. The investor said that while AI is where investors want to put all their money in, this also creates the conditions for excessive investment.
He pointed out that Amazon shares fell 92% after the dot-com bubble before the company eventually “inherited the earth.”
SPCX 5-day chart
“The long term is complicated, I don’t know, but is it going to have a crash like Amazon? Yes, very likely. And then what happens is indeed it may float away debris on the waves of time, or it will inherit a lot of the market, like Amazon did,” he said.
SpaceX and its roughly $2 trillion valuation, he believes, is another sign of extreme market enthusiasm.
He said historians may eventually view the company’s public-market debut as “one of the defining peaks of all time.”
“It’s the thing you see around the top,” Grantham said.
Crypto World
Ethra Ship brings billion-dollar shipping market onto the blockchain
Ethra Ship has launched a blockchain protocol backed by four years of maritime operations, opening access to an asset class where individual vessels can cost between $30 million and $120 million.
Summary
- Ethra Ship has launched a blockchain protocol that tokenizes investments in operating maritime shipping assets.
- The platform separates its $SHIP governance token from a regulated RWA investment layer backed by vessel-owning SPVs.
- The launch comes as tokenized real-world assets continue expanding, with Wall Street forecasting multi-trillion-dollar market growth.
According to a recent announcement from Ethra Ship, the company has introduced a two-layer real-world asset tokenization protocol designed to connect crypto users and institutional investors with operating dry bulk shipping assets.
The platform is supported by Ethra Invest, which has been acquiring, managing, and commercially operating vessels since 2021, providing the protocol with an existing revenue-generating business rather than a pipeline of future acquisitions.
Speaking about the launch, Ethra Chief Executive Officer Saeed Al-Marri said tokenization only succeeds when it is built on top of an operating business rather than an idea.
“Tokenization only works when there is a real business underneath it. We bring four years of vessel operations, live charter revenue, and operational data to the protocol from day one, setting the standard maritime RWAs should be held to.”
Ethra said its portfolio has generated Time Charter Equivalent (TCE) revenue through commercial vessel operations while establishing the infrastructure required to manage maritime assets before introducing blockchain technology. According to the company, this approach differs from projects that issue tokens first and seek to acquire underlying assets later.
The protocol separates governance from regulated vessel investments
Under the announced structure, the first layer revolves around the SHIP token, which serves as the ecosystem’s utility and governance asset. Ethra said token holders will be able to stake their holdings for access to its Fleet Visibility Dashboard, which provides real-time fleet performance data, while also participating in governance decisions as the protocol develops.
Alongside the public token layer, the company has created a regulated investment tier for eligible investors who complete KYC and AML checks. According to Ethra, participants in this layer receive fractional exposure to Special Purpose Vehicles that own operating dry bulk vessels, allowing them to share in cash flows generated through commercial freight charters.
Commenting on the rollout, Ethra Chief Operating Officer Emad Shahin said the protocol combines blockchain infrastructure with a shipping business the company has operated for several years.
“Ethra Ship Protocol gives both Web3 and traditional investors a structured way to engage with an asset class that we have been operating and investing in since 2021. The infrastructure exists around our track record in the maritime sector, giving participants confidence that we have experience operating a fleet of revenue-producing ships.”
Ethra added that future development phases will expand staking features, institutional participation, and on-chain data services before eventually introducing tokenized vessel ownership.
RWA markets continue expanding beyond traditional asset classes
Maritime shipping enters the tokenization market as real-world assets continue attracting institutional attention.
As crypto.news reported in May, the value of tokenized real-world assets on public blockchains climbed to nearly $34 billion, up from roughly $5.4 billion at the beginning of 2025. Ethereum currently carries about 60% of that market, while tokenized U.S. Treasuries account for around $15 billion.
New asset categories have also continued to emerge. Earlier this month, DBS Bank announced plans to launch tokenized physical gold backed by bullion stored in Singapore, extending its digital asset strategy beyond tokenized money market funds and stablecoin services.
Wall Street institutions have also projected substantial growth for the sector. In its Tokenization 2030: Wall Street On-Chain report, Citi estimated the tokenized securities market could reach $5.5 trillion by 2030 under its base-case scenario, with projections ranging from $2.7 trillion to $8.2 trillion depending on adoption. The bank expects blockchain infrastructure to support an increasing share of Treasury bills, equities, funds, and other financial assets during the decade.
Crypto World
Morgan Stanley identifies two triggers that could force a Fed rate hike
Morgan Stanley has warned that the Federal Reserve could still be forced to raise interest rates this year under certain economic conditions, even as it maintains its forecast for unchanged policy.
Summary
- Morgan Stanley expects the Fed to hold rates steady, but warns two conditions could change that outlook.
- BNP Paribas and Citadel Securities forecast Fed rate hikes later this year on persistent inflation concerns.
- Neel Kashkari and market pricing indicate investors remain alert to the risk of renewed policy tightening.
According to Morgan Stanley, its base-case forecast remains that the Federal Reserve will leave interest rates unchanged this year. Even so, the bank cautioned that a stronger labor market or stubborn inflation could require policymakers to tighten monetary policy again.
The bank pointed to two specific risks. A decline in the unemployment rate below 4% would indicate continued strength in the labor market, while inflation remaining above the Fed’s target could leave officials with little choice but to remove monetary accommodation.
Recent inflation data has kept those concerns in focus. As reported by crypto.news earlier, the U.S. Personal Consumption Expenditures price index accelerated to 4.1%, its highest reading since 2023. At the same time, oil prices have fallen following the U.S.-Iran peace agreement, a development that could ease energy-driven inflation and support Morgan Stanley’s expectation that rates remain on hold.
Other institutions continue to expect rate increases
Although Morgan Stanley does not currently forecast a rate increase, several financial institutions have adopted a more hawkish outlook.
As reported by crypto.news earlier in June, BNP Paribas abandoned its previous expectation that rates would remain steady and now expects the Federal Reserve to reverse the three interest-rate cuts delivered in 2025. The bank projected three consecutive rate hikes beginning with the December Federal Open Market Committee meeting.
BNP Paribas said policymakers may need to withdraw part of the monetary stimulus if inflation continues to strengthen while employment conditions remain resilient. The bank also projected the unemployment rate could gradually decline to around 4% by the end of the year, giving the Federal Reserve more room to prioritize inflation over labor-market support.
Citadel Securities has taken an even more aggressive position. In a recent client note, the firm warned that the Federal Reserve could begin raising rates as early as September 2026 if inflation continues spreading through the economy.
According to Citadel, inflation is no longer being driven only by energy prices. The firm argued that accommodative financial conditions, persistent supply-chain disruptions, continued labor-market strength, and rapidly growing artificial intelligence investment are all contributing to sustained price pressures.
Citadel estimated AI-related capital expenditures could reach about $750 billion in 2026 before increasing to approximately $1.25 trillion in 2027.
The firm’s projected policy path includes rate hikes in September and December 2026, followed by another increase in March 2027.
Fed officials and markets remain divided on the outlook
Federal Reserve officials have also acknowledged the possibility of additional tightening if inflation fails to moderate.
Speaking in an interview with Bloomberg, Minneapolis Fed President Neel Kashkari said he was among the policymakers who projected a rate hike this year. He explained that his decision was based on signs of persistent inflation across the economy rather than concerns limited to the conflict in the Middle East or disruptions to global oil supplies.
Following the June Federal Open Market Committee meeting, nine of the 18 Federal Reserve officials projected at least one rate increase this year, while six of those policymakers anticipated multiple hikes, according to earlier reporting by crypto.news.
Financial markets also continue to assign meaningful odds to tighter policy. Polymarket data indicates a 53% probability that the Federal Reserve raises interest rates this year, while CME FedWatch data shows traders are pricing in possible increases at the September, October, and December policy meetings. The September meeting currently carries a 46.8% probability of a rate hike.

Crypto World
Binance Tells EU Users It Will Wind Down Services as MiCA Deadline Hits

Binance has started telling European Union users it will wind down services in the bloc after failing to secure a license under the Markets in Crypto-Assets framework, the realization of an EU-exit risk that surfaced earlier this month. The world's largest exchange emailed customers in France,… Read the full story at The Defiant
Crypto World
Former Ethereum Foundation leader warns of funding gap as governance shifts
Latest developments: Trent Van Epps says Ethereum’s long-term decentralization strategy is entering a critical transition phase.
- Van Epps said he left the Ethereum Foundation after it became clear the organization would accelerate its “subtraction” philosophy of pushing authority and legitimacy into the broader ecosystem.
- He described the Ethereum Foundation as intentionally reducing its central role rather than consolidating power, arguing that multiple independent institutions should eventually coordinate the ecosystem.
- The comments come after recent Ethereum Foundation leadership changes and workforce reductions, which have fueled questions about Ethereum’s future governance.
- Van Epps joined CoinDesk’s Jennifer Sanasie on Markets Outlook.
What this means: Van Epps argues Ethereum faces a practical funding challenge rather than an existential crisis.
- He estimated core protocol development requires roughly $30 million annually, even as the Ethereum Foundation’s treasury gradually declines over time.
- According to Van Epps, the issue is not shrinking technical needs but identifying new organizations willing to finance public goods that keep the network reliable and secure.
- He said his Protocol Guild initiative has distributed nearly $40 million to Ethereum core developers over roughly four years but is not sufficient on its own to replace broader ecosystem funding.
Crypto World
Why Wall Street's Biggest Traders Are Abandoning Crypto for Prediction Markets | Alex Momot
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💻 Watch Video… Read the full story at The Defiant
Crypto World
XRP Price Prediction 2026: Pepeto Presale Math Beats XRP $10 Target as Bill Morgan Pushes Ripple to Unlock Faster
The xrp price prediction shifted again after pro-XRP lawyer Bill Morgan demanded Ripple release more of the monthly 1 billion XRP unlock instead of looping it back into escrow per Benzinga. The note dropped while XRP slid to $1.04. Benzinga still calls $10 a real long-term target, with Standard Chartered projecting $8 by year end.
The xrp price prediction now runs alongside record ETF activity. Seven U.S. spot XRP ETFs hold $1 billion AUM and 938.7 million tokens in custody on June 25, but the early high-multiple window for XRP and Solana closed at $67 billion and $40 billion in market cap.
CoinDesk reported XRP slid 2.8% to $1.04 on June 25, losing the $1.0850 support and parking at the lower end of its June trading range. Bulls need to reclaim $1.10 to flip the shakeout narrative. Solana (SOL) sits at $69.25, down 0.52%, while broader risk turned cautious across the CD20 index.
For the wider tape, the XRP setup confirms both tokens lean on institutional flow for price support, but the early returns are already behind them. The traders hunting 267x are no longer looking at assets where the chart fights over a $1 floor.
Top Cryptocurrencies to Position Before the Next Breakout
Pepeto: The Exchange Token Where $0.0000001879 Could Become 267x Before Institutions Find It
XRP traders sit on resistance levels waiting for steady percentage gains, but Pepeto at $0.0000001879 runs on different math. The ticket price is a fraction of a cent, the runway scales for years, and presale wallets stand in front of every public buyer that arrives later.
A live exchange under construction at the presale stage is rare on its own. Add $10,334,426 already inside the raise during a Fear and Greed reading of 12, a SolidProof reviewed contract, the cofounder who walked Pepe to $7 billion, and a former Binance executive shaping the listing.
Pepeto targets a meme coin trading market worth more than $45 billion with zero-fee infrastructure spanning three chains. Hitting 267x only requires the token to trade at a fraction of what Pepe achieved with the same 420 trillion supply.
The xrp price prediction has a ceiling. Pepeto does not, and the Binance listing is the event that wipes this entry off the screen for good.
XRP Price Prediction: Validated by Institutions but Returns Stay Range Locked
XRP trades near $1.04 per CoinmarketCap after losing key support under $1.0850. Benzinga still maps $10 as a possible long-term target, with Standard Chartered projecting $8 by year end and Coinpedia mapping $5 to $6 later this cycle.
The xrp price prediction targets $10 if ETF flows and CLARITY clarity keep stacking, roughly 9x over years, but moving averages stack between $1.13 and $1.19 and block every rally attempt.
Solana (SOL) Price at $69.25 as Risk Sentiment Cools Across Major Tokens
Solana traded at $69.25 per CoinDesk, down 0.52% across a broader pullback on June 25. SOL ETFs continue to attract incremental flows while support sits at $65 with $89 the key resistance. Losing $65 opens $58.
Conclusion
Ripple will still be trading next week no matter what the xrp price prediction lands on. The Pepeto presale will not. The June 25 break under $1.0850 confirms the early high-multiplier window for both XRP and SOL is already closed. A $1,000 XRP position buys 935 tokens and stretches to about $9,000 even at the bullish $10 target.
The same $1,000 in Pepeto secures 5.32 billion units, a position that pays out between $100,000 and $150,000 once the listing hits Pepe’s ATH math, and $10,000 on the same ticket is the million-dollar wallet most readers spent last cycle wishing they had.
One wallet got in before listing and walked out of this cycle with a portfolio between $150,000 and a million on a single position. The other hesitated like buyers who passed on Shiba Inu and carries that regret forever. The window is still open, but at the pace demand is hitting the raise, days are all that is left.
Click To Visit Pepeto Website To Enter The Presale
FAQs
What is the xrp price prediction target after Bill Morgan called for faster escrow releases?
The xrp price prediction targets $10 long term per Benzinga if ETF demand and CLARITY Act clarity keep stacking. XRP’s $67 billion cap caps near-term upside to percentages, not the multiples a presale entry can deliver.
How does Pepeto’s return math compare to holding XRP or SOL?
Pepeto secures 5.32 billion units per $1,000 at $0.0000001879, a position that pays between $100,000 and $150,000 at listing on Pepe’s ATH math. XRP at $67 billion and Solana at $40 billion cannot support a 100x to 150x outcome from their current caps.
What does the June 25 XRP breakdown mean for XRP and Solana?
XRP losing $1.0850 confirms both tokens lean on institutional ETF flows for price support. Neither offers the presale upside Pepeto carries ahead of a confirmed Binance listing at $0.0000001879.
Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.
Crypto World
Fed Official Kashkari Gives Rate Hike Warning: How Will US Stocks and Bitcoin React?
A senior Federal Reserve official has put a possible 2026 interest rate hike back in focus, adding new pressure on US stocks. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Friday that he now expects one rate increase in 2026 and does not see cuts coming soon.
His comments are critical because Kashkari has long been seen as one of the Fed’s more dovish policymakers. His shift suggests inflation concerns are spreading inside the central bank, leaving investors to rethink how long borrowing costs may stay high.
Why the Kashkari Rate Hike Call Matters for Stocks
Kashkari’s comments came shortly after the Fed’s June policy meeting, where officials voted 12-0 to hold interest rates between 3.50% and 3.75%.
The bigger signal came from the Fed’s own projections. Nine of the 18 officials now expect at least one rate hike in 2026. The median forecast also moved higher, rising to 3.8% from 3.4% in March.
Investors had spent much of the year expecting the next major move to be a cut. The June meeting weakened that assumption and pushed markets toward a more uncomfortable possibility: borrowing costs may stay higher for longer.
Fed Chair Kevin Warsh also moved away from forward guidance, the practice of giving markets a clearer sense of where policy may go next. That makes each inflation report and jobs report more important, because traders now have fewer signals from the central bank in advance.
Markets are already reacting to that risk. Futures prices show traders see about a 30% chance of a July hike, according to CME FedWatch data. They also put the odds of at least one rate increase by December at roughly 76%, keeping the risk of another Fed hike firmly in view.
“I’m concerned about inflation, and it’s not only tied to what’s happening in the Middle East, it’s just the impression of broader inflationary pressures in the economy,” Kashkari said.
Follow us on X to get the latest news as it happens
Higher Rates Squeeze Growth Stocks and Bitcoin
Higher-for-longer rates weigh on growth and technology stocks. They raise discount rates and borrowing costs for companies that carry debt.
Crypto sits in the same rate-sensitive camp. Bitcoin recently traded near $60,000, up about 1.3% in 24 hours.
The last hiking cycle shows the stakes. As the Fed raised rates through 2022, Bitcoin fell from about $69,000 to near $15,500.
A late-2026 hike would reinforce the backdrop behind recent bearish calls.
BitMEX co-founder Arthur Hayes sees a $40,000 Bitcoin bottom within six months, citing a hawkish Fed. His six-month window runs into late 2026, the same stretch Kashkari flagged for a possible hike.
China’s top Bitcoin miner, Jiang Zhuoer, expects a similar floor around $42,000 to $44,000 in late 2026. He built the call on Strategy’s mNAV near 0.72, close to its 2022 bear-market low. Both targets sit between about 27% and 34% below current levels.
Other signals cut the other way. Wintermute says leverage has largely cleared, while Hayes still holds a year-end target above $200,000.
Investors now look to upcoming inflation and jobs data for the next signal. Whether Kashkari’s hike lands in late 2026 may shape equity valuations and Bitcoin price forecasts into year-end.
The post Fed Official Kashkari Gives Rate Hike Warning: How Will US Stocks and Bitcoin React? appeared first on BeInCrypto.
Crypto World
Ethereum Whale Who Shorted October 2025 Crash Returns With $19.7M Short ETH Bet
An Ethereum whale who shorted Ether (ETH) during the October 2025 crypto crash has returned after eight months of silence.
Key takeaways:
- Ethereum whale opens a $19.72 million 20x ETH short near the $1,500 support zone.
- ETH’s bear flag setup hints at a decline toward $1,375, which may earn the whale roughly $2.39 million in profits.
Ethereum whale opens 20x short after eight-month hiatus
On Friday, wallet ‘0xf83f…6728’ opened a 20x-leveraged ETH short worth $19.72 million as Ether reached the $1,500 support zone after dropping 18.25% over the last two weeks.
The position was opened at an average price of around $1,565, according to data resource Hyperbot. As of this press time, the whale had earned nearly $106,500 in unrealized profits as the ETH price dropped around the $1,550 area.

Ethereum whale’s $19.72M position status as of Friday. Source: Hyperbot
The downside sentiment in the Ethereum market has tracked a broader tech-led risk selloff, with traders cutting exposure to speculative assets as Nasdaq and chip stocks came under pressure.
Ethereum-specific sentiment has weakened further amid renewed scrutiny of the Ethereum Foundation, following reports of budget cuts, staff reductions and a wave of senior departures that have raised questions about the organization’s leadership stability.
Ether is eyeing a decline toward the $1,375 level if it continues the breakdown out of its prevailing bear flag pattern.

ETH/USD daily price chart tracking the bear flag breakdown setup. Source: TradingView
If ETH falls to $1,375, the whale’s unrealized profit would rise to roughly $2.39 million before fees and funding, based on the position’s approximate $1,565 entry price.
Same whale shorted ETH near October 2025 crash top
The wallet’s latest move stands out because of its trading history.
Transaction logs show that wallet ‘0xf83f…6728’ last became active on Oct. 27, 2025, when it opened an ETH short near $4,172 as volatility from the October crypto crash was easing.
Related: Are Ethereum OGs jumping ship? Here’s what the data says
The trader later closed the position near $4,133, booking $41,693 in net profit after $5,263 in exchange fees.

Ethereum whale’s filled ETH orders from October 2025. Source: Hyperbot
The whale’s current strategy appears similar: short ETH into weakness, use high leverage, and lean into downside momentum. The scale has changed sharply, however, since the current position carries nearly $20 million in notional exposure, making it far larger than the whale’s October 2025 trade.
ETH double bottom could threaten the whale’s short
The whale’s bearish bet is not without risk.
As of Friday, Ether’s daily chart showed a potential double bottom near the $1,500–$1,512 support area, where buyers stepped in twice in June. The setup remains unconfirmed, but a strong rebound from this zone could shift short-term momentum back toward the bulls.

ETH/USD daily price chart tracking a potential double-bottom breakout setup. Source: TradingView
The key level to watch is the neckline near $1,850. A decisive daily close above that level would confirm the double bottom pattern and open the door to a measured rebound toward roughly $2,190, based on the distance between the neckline and the $1,512 bottom.
That would put ETH close to the whale’s liquidation zone near $2,150, meaning a confirmed bullish reversal could pressure or even wipe out the short position if the trader does not add collateral or reduce exposure.
Crypto World
SEC, CFTC Seek Input on Unified Portfolio Margin Rules
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have opened a joint public consultation on whether to better align portfolio margin rules across securities and derivatives markets, seeking feedback on approaches that could expand cross-margining and reduce market fragmentation.
The agencies are requesting input on cross-margining, collateral treatment, risk management, customer protections and the potential effects on market liquidity and competition. The public comment period will remain open for 60 days after the request is published in the Federal Register.
“Cross-margining offers a clear opportunity to unlock liquidity that remains frozen in separate accounts,” SEC Chair Paul Atkins said, adding that harmonizing the agencies’ frameworks could help prevent jurisdictional overlap from limiting innovation and market efficiency.
Cross-margining allows offsetting positions across different products or markets to be considered together when calculating margin requirements, rather than treating each position separately. By recognizing these offsets, companies can often post less collateral against hedged positions because margin is based on the portfolio’s overall risk rather than each position in isolation.
The SEC oversees securities and security-based swaps, while the CFTC regulates futures, swaps and commodity derivatives. As crypto exchanges and brokerages increasingly operate across both markets, the agencies’ joint review reflects the growing need for coordinated oversight.
Related: CFTC hires SEC crypto task force adviser with blockchain forensics chops
Crypto derivatives expand across regulated markets
The joint request for comment follows recent regulatory approvals that paved the way for a broader expansion of crypto derivatives offerings.
On May 29, the CFTC approved Bitcoin (BTC) perpetual futures for prediction market platform Kalshi and cleared Coinbase Financial Markets to offer eligible US institutional clients access to certain Deribit-listed crypto options and perpetual futures. Coinbase began offering that access the same day through its integration with Deribit.
A few weeks later, Kraken launched CFTC-regulated perpetual futures for eligible US users through its recently acquired Bitnomial platform, expanding its domestic derivatives offerings beyond CME-listed crypto futures.

Source: Kraken Pro
The expansion of crypto derivatives in the US has also raised broader questions about whether existing regulatory frameworks remain appropriate across different markets.
Earlier this week, CFTC Chair Mike Selig said cryptocurrency perpetual futures were not a “natural fit” for traditional commodity markets such as agriculture, highlighting the challenges regulators face in applying existing frameworks across increasingly diverse asset classes.
Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves
Crypto World
Mystery deepens over Cardano wallet’s $18.5M white hat hacker
Cardano founder Charles Hoskinson has claimed that the identity of the presumably white hat hacker who took $18.5 million worth of ADA from exposed Cardano wallet users is unknown.
In an X talk yesterday called The Bingo Hall, Hoskinson claimed that he was informed by “Jer” of what went down in a meeting between the Cardano governance firm Intersect and the developers of SecondFi, Emurgo.
A clipped snippet of the talk shows Hoskinson claiming that “A member of the Emurgo team said the identity of the white hat hacker is not known to Emurgo.” He shortly added, “or at least [Emurgo] said it is not affiliated with Emurgo.”
“That’s probably a fair representation of the statement,” Hoskinson said, before noting that it was a secondhand recollection from the meeting by Jer.
Read more: Cardano wallets drained of $2.4M after self-custody exploit
He said, “I don’t particularly care if it’s Joe Schmo, Emurgo, or a third-party, doesn’t matter to me,” noting that his only concern is how they are going to move the funds and return them to affected users.
Days before this, X users had already begun to speculate whether or not Emurgo knew who the white hat hacker was.
Now, X users are doubting whether Emurgo knew the white hat hacker, with some calling for a police investigation into the firm. Others, however, are hoping Hoskinson’s claims are just a “miscommunication.”
SecondFi claims it triggered emergency measures
SecondFi, one of the largest Cardano wallet generators, was exploited earlier this week, and 16 million ADA ($2.4 million) was reported stolen from user wallets.
However, another 129 million ADA ($18.5 million) was also taken, but SecondFi later claimed that it was the result of an emergency measure it had deployed to secure the funds.
It said, “To prevent total loss during the active exploit, emergency rescue measures were triggered to secure the available ~129m ADA and continues to be routed to an independent, qualified third-party custodian, where they are held securely for the benefit of the affected wallet addresses.”
“An external accounting firm has been engaged for a special audit to independently verify those holdings,” it added.
Intersect’s latest post on the exploit yesterday demanded “a transparent account of how the issue arose, of the emergency measures taken to protect user assets, including the movement of at-risk funds to custody, and of how those assets, which include CNTs and NFTs as well as ada, will be safeguarded and returned.”
Intersect stresses Cardano blockchain isn’t broken
Intersect stressed that the exploit has nothing to do with the Cardano blockchain itself.
However, it noted that the implications of the exploit may impact the flow of ADA across the ecosystem.
SecondFi’s latest statement claims it took a final balance snapshot today and estimates thait will return lost user assetsed in two weeks’ time.
Read more: Hoskinson wants to save Cardano’s rep by leaving X for Discord safespace
This isn’t guaranteed, and the firm noted that it is still trying to reach a “working solution” before it proceeds to test and review the asset return process.
It still advises users not to move to new wallets and warns, “Independent actions taken outside of official guidance create additional risks, and may significantly complicate the asset claims process.”
Protos has reached out to Emurgo for comment and will update this piece should we hear anything back.
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
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