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Pi Network Unblocks Millions for Mainnet Migration With Major KYC and Security Upgrades

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Pi Token Unlocking Schedule. Source: PiScan


These could be the most important updates for millions struggling with Pi Network’s controversial KYC process.

The Core Team behind Pi Network has introduced new updates, the third since the start of the year, that they claim will unlock 2.5 million users from completing the Mainnet migration.

In terms of price actions for the native token, though, the question now is whether these new developments help it recover from its consecutive all-time lows.

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Millions Unblocked

The project has been criticized for years for its rather complicated and controversial approach to compliance and know-your-customer (KYC) procedures. At the end of the previous week, though, the team released a technical update that should allow millions of users (referred to as Pioneers) to complete the Mainnet migration.

They claimed the roughly 2.5 million users who were previously unable to migrate due to additional security and compliance checks will be unblocked now, particularly in certain regions. Eligible users who are actively mining and have completed the Mainnet Checklist will see their transferable balances automatically migrated.

The post further explains that migration and KYC unblocking occur in batches because different groups of Pioneers face various technical edge cases. Some come in the form of tentative KYC statuses, while others are more complicated, such as enhanced security checks or region-specific compliance requirements.

Each group requires a custom technical solution. Once that is deployed, the affected users will be unblocked, which the team said explains why progress may appear uneven despite ongoing migration efforts.

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Separately, the Core Team promised that more than 700,000 additional users will soon be able to submit KYC applications, who were previously ineligible, while the system processes their accounts to ensure compliance and integrity at scale.

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Once this update is live, the affected users are advised to check the Pi app and submit KYC. Earlier submissions will help position their accounts for subsequent migration steps.

Will PI Finally Recover?

Despite the growing number of network updates published by the team, the project’s native token continues to struggle. The broader market’s crash hit PI hard, as it charted another all-time low just hours ago at $0.1514 (CoinGecko data). Recall that PI traded above $0.20 just until a few weeks ago, but it’s now down by 94.8% from its all-time high marked less than a year ago.

The unlocking daily schedule also paints a painful picture for PI’s short-term future. The average daily number of coins to be released in the next month is close to seven million, which could intensify the immediate selling pressure. Several days stand out with the most such unlocks, with February 13 being the highest, almost 24 million.

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Pi Token Unlocking Schedule. Source: PiScan
Pi Token Unlocking Schedule. Source: PiScan

 

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Every 5 Minutes: Korea’s New Rule for Crypto Exchanges

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South Korea’s financial regulator has ordered all crypto exchanges to verify user asset balances every five minutes, following a massive overpayment incident that shook market confidence earlier this year.

One botched reward payout exposed systemic cracks across the entire industry.

What Triggered the Rules

In February, Bithumb accidentally sent 2,000 BTC per person instead of 2,000 Korean won ($1.40) during a promotional event. The error amounted to roughly $42 billion in misallocated crypto. The Financial Services Commission (FSC) launched emergency inspections across all five major Korean exchanges immediately after. What they found went far beyond a single human mistake.

Most exchanges were only reconciling their books once every 24 hours. Three had no automatic kill switch to halt trading when discrepancies appeared. Four lacked multi-step approval systems for high-risk manual transactions. Two exchanges hadn’t even separated their general accounts from high-risk transaction accounts — a basic safeguard.

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What Exchanges Must Now Do

The FSC announced a three-pillar reform package on April 6. Exchanges must run automated balance checks every five minutes, with alerts and automatic trading halts triggered by major mismatches. Monthly external audits replace the previous quarterly schedule, and public disclosures must now include asset-by-asset blockchain holdings rather than a simple coverage ratio.

For manual, high-risk transactions such as event payouts, exchanges must use separate accounts, deploy validity-check systems that automatically reject mismatched inputs, and require cross-verification by a third party before execution.

The FSC will also require exchanges to appoint dedicated risk management officers and establish risk management committees — standards already expected of traditional financial firms. Compliance checks move from annual to twice-yearly, with results reported to regulators.

DAXA, the industry body, will complete self-regulatory amendments this month, with systems built out by May. Key provisions will feed into Korea’s forthcoming second-phase Digital Asset Act.

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The post Every 5 Minutes: Korea’s New Rule for Crypto Exchanges appeared first on BeInCrypto.

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Chaos Labs Leaves Aave Due to Budget, Risk Disagreements

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Chaos Labs Leaves Aave Due to Budget, Risk Disagreements

Chaos Labs has parted ways with the Aave ecosystem after serving as the crypto lending protocol’s main risk service provider for three years, citing a budget dispute and disagreements over how Aave should manage risk.

“This decision was not made in haste,” Chaos Labs founder Omer Goldberg said in a post to X on Monday. “We worked in good faith with DAO contributors. Aave Labs was professional and supported increasing our budget to $5m to retain us. However, we are leaving because the engagement no longer reflects how we believe risk should be managed.”

Source: Omer Goldberg

Aave Labs CEO Stani Kulechov said that Chaos didn’t depart on bad terms, but claimed that Chaos pitched a proposal seeking to become the sole risk provider and thus force out other partners — a compromise Aave wasn’t willing to accept.

Chaos played a key role in Aave’s back-end infrastructure, from pricing loans and managing risk in the Aave V2 and V3 markets since November 2022, during which Aave’s total value locked rose fivefold to $26 billion.

Risk has been a major talking point in the Aave community after a user lost $50 million in a trade while interacting with Aave’s interface on March 12. The following week, Aave said it would introduce an “Aave Shield” protection feature to deter users from high-risk trades.

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As for Chaos’ departure, Goldberg said there became an increasing misalignment over how the parties thought risk should be managed. He noted that some Aave contributors had left, raising its workload, while also arguing that Aave V4’s expanded functionality introduced additional operational and legal risks that fell on Chaos’ shoulders.

“While Aave Labs is optimistic about a swift migration to V4, history suggests these transitions take months and even years,” Goldberg said. “Until V4 fully absorbs V3’s markets and liquidity, both systems need to be operated and managed simultaneously. The workload during the transition doesn’t halve. It doubles.”

Weighing the risk of a protocol failure, Goldberg said, “There is no regulatory framework, no safe harbor, and no settled law that answers the question of what a risk manager or curator owes when a protocol fails. If things work, the work is invisible. If things break, the blame is not.”

As such, “We are walking away from a $5 million engagement,” Goldberg said.

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Chaos wanted Aave to boot LlamaRisk, Chainlink: Kulechov

Aave Labs CEO Stani Kulechov told a slightly different story, stating that Chaos wanted to be the sole risk manager and use its price oracles instead of Chainlink’s.

Following that request would have forced Aave to push out its other risk protocol partner, LlamaRisk, and thus abandon its two-layer economic risk model.

Related: DeFi lender Aave launches on OKX’s Ethereum L2, X Layer

Kulechov added Aave was unwilling to integrate Chaos-built price oracles, citing Aave’s “track record” with Chainlink’s services, which its “users are currently more comfortable with at scale.”

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He also said Chaos was already “exploring winding down its risk consultancy services,” and that Aave had offered to double its payment to $5 million to retain them.

Cointelegraph reached out to Chaos Labs for comment.

Kulechov noted that Chaos’ departure hasn’t disrupted the Aave protocol, its smart contracts, token listings or network integrations.

Moving forward, Aave said it “will work closely with LlamaRisk to ensure a smooth transition” and maintain its two-layer economic risk model. 

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Source: LlamaRisk

Chaos’ departure comes amid a protocol-wide feud over how much funding and revenue control Aave Labs should receive versus Aave’s decentralized autonomous organization.

Despite the internal issues, Aave crossed the $1 trillion mark in cumulative lending volume in late February, marking a first in the DeFi industry.

Magazine: Animoca teams up with Ava Labs, Shrapnel on Steam: Web3 Gamer