Two brothers accused of kidnapping a Minnesota family at gunpoint last year to steal $8 million in cryptocurrency pleaded guilty in connection with the armed robbery. 

Isiah Angelo Garcia and Raymond Christian Garcia, on Thursday, entered guilty pleas for Interference with Commerce by Robbery, facing a maximum of 20 years in federal prison, according to the US Attorney’s Office of the District of Minnesota. 

“The guilty pleas entered today reflect our commitment to holding the defendants accountable for the choices they made,” US Attorney Daniel Rosen said.  

Global crypto wrench attacks have skyrocketed in recent years. In February, CertiK found that the number of crypto-related assaults and kidnappings increased 75% in 2025 from the previous year. Estimated losses in the first four months of 2026 from such attacks have already reached $101 million. 

Garcia brothers steal $8 million in crypto

Prosecutors said on Sept. 19, 2025, the two brothers traveled to Minnesota from Texas to hold a victim and his family at gunpoint, forcing him to transfer cryptocurrency from his online accounts and hardware wallets. 

The ordeal left the victim’s wife and son held for nine hours in their family home, while the victim was taken to a family cabin about three hours away and was ultimately forced to transfer $8 million in cryptocurrency. 

Isiah Angelo Garcia (left) and Raymond Christian Garcia (right). Source: Waller County, Texas, Sheriff’s Office

Police were alerted to the kidnapping after the victim’s son was able to make an emergency call, which was answered by Washington County sheriff’s deputies. Deputies later found a rifle and a shotgun, which, along with surveillance footage and other evidence, connected the brothers to the burglary. 

Crypto attackers plead guilty 

In their guilty pleas, both defendants admitted to using firearms to threaten the victims in order to rob them. They have agreed to pay more than $8 million in restitution. Sentencing hearings have not yet been scheduled. 

The latest development adds a win for US prosecutors in a global fight against criminals who target crypto owners. 

Related: Accused attackers of Sandbox exec’s wife tried to flee via Uber

In May, US authorities unsealed an indictment against three men accused of stealing at least $6.5 million in a “violent robbery spree targeting cryptocurrency owners.” 

The robberies involved the three defendants allegedly posing as delivery drivers to force their way into residences and use violence to extract cryptocurrency from their victims. 

 The increase in global attacks has drawn the attention of the French government. 

During Paris Blockchain Week in April, Jean-Didier Berger, minister delegate to the interior minister of France, said his office has taken “preventive measures” against crypto wrench attacks, including launching a prevention platform that has drawn thousands of sign-ups.  

Magazine: The end of anon? AI could unmask crypto’s hidden identities

Sonic Labs’ board shake-up has spilled over into the market, with the network’s native token, S, sliding after the company announced that three former executives are stepping down from its board. The move comes as Sonic continues an overhaul of leadership and governance amid ongoing criticism from sections of its community.

On Friday, S fell to around 0.031, down 5% over 24 hours. The resignations include Michael Kong, previously CEO of the Fantom Foundation and a director at Sonic Labs; David Richardson, who served as executive chairman of Sonic Labs; and Andre Cronje, the project’s former chief technology officer, who had earlier posted a statement about his board resignation at andrecronje.info.

Key takeaways

• Sonic Labs announced the resignations of three board members, prompting a 5% drop in the S token over 24 hours.
• The departures include Michael Kong, David Richardson, and Andre Cronje; Sonic is naming new top roles including Matt Visser as CEO.
• Sonic said outgoing leaders will remain invested but will no longer make organizational business decisions.
• The changes are positioned alongside promises of more transparent governance, clearer updates, and new risk/compliance oversight.
• The leadership transition targets dissatisfaction linked to S’s long-running decline since Sonic’s January 2025 network upgrade.

Token drop follows board changes

The immediate market reaction to Sonic Labs’ announcement reflects how quickly governance headlines can influence token sentiment. S moved lower after the company said three former executives resigned from its board, while also detailing a broader leadership restructuring.

In its announcement, Sonic Labs emphasized continuity in a way that tries to address trust concerns. Outgoing board members “built what Sonic is today,” the company said, adding that they will “remain invested in Sonic’s success” and are transferring responsibilities “the right way.” Sonic’s statement also stressed that, after the transition, they “will no longer make business decisions for the organization.”

Sonic simultaneously named Matt Visser as its new CEO and Kosta Kourkoumelis as chief operating officer, framing the board exit as part of an attempt to reset how the organization is run and communicated.

Why the resignations matter for investors and users

For S holders, governance isn’t just corporate housekeeping—it can shape development priorities, treasury decisions, and the pace of execution. Sonic Labs’ own messaging suggests it is responding to mounting dissatisfaction in the community, while also acknowledging that the token’s performance has deteriorated since launch.

According to the article, Sonic Labs tied its governance overhaul to the “growing community dissatisfaction” and to what it called the prolonged decline in S. The token, launched in January 2025 as part of the Sonic network upgrade, is reported to have fallen 97% since that launch.

Rather than contesting the narrative, Sonic Labs said it would not present the situation as a success story. “We are not going to open with a victory lap. The token is down. Community sentiment is down. We see both clearly, we are not spinning it, and we are not asking anyone to pretend otherwise,” Sonic Labs stated.

This kind of direct acknowledgement matters because it can affect how quickly stakeholders believe management actions are aligned with delivered outcomes. It also sets a clear expectation: any subsequent improvements—whether in protocol development, ecosystem growth, or risk controls—will be judged against the backdrop of a steep drawdown.

Governance commitments and new oversight structures

Sonic Labs said the leadership change will be paired with governance and communications reforms. The company pointed to:

• More transparent governance processes.
• Clear communication around project updates.
• The creation of a dedicated risk and compliance committee.

Those promises reflect a broader trend in crypto over the past year: when markets doubt project stewardship, teams often respond by formalizing accountability mechanisms and improving how information is shared with token holders.

However, governance changes also leave open a key question for investors: what will actually change operationally? Sonic’s restructuring indicates an intention to change decision-making and oversight, but readers will likely want to watch for concrete deliverables—particularly around how the new committee will function and how update cadence and transparency will be measured.

From Fantom to Sonic—and the leadership reorientation

Sonic Labs is the research and development organization behind the Sonic layer-1 blockchain. The network positions itself as an EVM-compatible chain designed for high performance, claiming 10,000 transactions per second and subsecond finality.

Sonic’s identity shift is also part of the context. As described in the article, the project rebranded from Fantom to Sonic and introduced a major structural and technical upgrade, replacing the legacy Fantom Opera network.

Against that backdrop, the board reshuffle signals a second-phase transition: an evolution from building and migration into managing ongoing expectations. Sonic’s approach appears to be attempting to restore credibility by tightening governance and aligning leadership roles with a new operating structure.

The timing is also notable in relation to wider industry developments. The article notes that this comes just days after Ethereum Foundation co-executive director Hsiao-Wei Wang announced she had stepped down, adding to a series of departures and layoffs reported earlier in the year. While that is a separate organization, it underscores that governance and leadership volatility is not unique to Sonic.

For now, the most important question is whether Sonic’s promised governance and oversight reforms translate into measurable progress that can stabilize community confidence and improve the token’s outlook. Investors should watch for how the new leadership structure operates in practice—especially update transparency, risk/compliance committee actions, and the project milestones that follow the board transition.

Franklin Templeton has filed with the US Securities and Exchange Commission (SEC) to launch two exchange-traded funds designed to turn dividend income from US stocks into Bitcoin exposure. The proposal, disclosed in a June 18 SEC filing, targets investors who want a rules-based path to add Bitcoin exposure without abandoning an equity allocation.

The funds—titled the Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF—would follow indexes that reinvest dividends from selected US stocks into a predetermined Bitcoin allocation. According to the filing, the initial allocation framework would place 5% into Bitcoin exposure and 95% into equities, with the index methodology governing how that balance is maintained over time.

Key takeaways

• Franklin Templeton filed for two dividend-reinvestment ETFs that convert stock dividends into Bitcoin exposure through proprietary index rules.
• The proposed funds would start with a 5% Bitcoin exposure and 95% US equities allocation, then keep that target within limits through periodic rebalancing.
• Bitcoin exposure could be gained through multiple instruments, including Bitcoin exchange-traded products, futures, options, and Bitcoin-backed depositary receipts, as described in the SEC filing.
• The “Equity” fund would track a broad US large-cap benchmark, while the “Innovation” version would focus on the 100 largest non-financial companies listed on Nasdaq.
• The filing arrives as at least several issuers continue experimenting with Bitcoin strategies beyond traditional spot ETF wrappers, amid reported softness in US spot ETF flows.

How Franklin Templeton’s “DRIP into Bitcoin” approach would work

In its SEC filing, Franklin Templeton describes two ETFs that use a Dividend Reinvestment Plan (DRIP) concept—but with the reinvestment redirected toward Bitcoin exposure. The indexes underlying each fund would systematically direct regular and special dividends from the equity holdings into Bitcoin within the index’s allocation framework.

Per the filing, the funds would launch with the same starting mix: 5% Bitcoin exposure and 95% US equities. The mechanism is intended to create a structured way to accumulate Bitcoin exposure over time as dividends are generated by the equity portfolio.

The SEC filing also outlines how the funds would maintain the allocation. It states that the indexes would be rebalanced quarterly to keep the Bitcoin allocation inside predefined boundaries, and that the indexes would be reconstituted semiannually.

Where the Bitcoin exposure could come from

One of the more practical details in the filing is how the funds plan to access Bitcoin exposure. Rather than relying on a single instrument, Franklin Templeton indicates that the proposed ETFs could gain Bitcoin exposure using a range of options. These include:

• Bitcoin exchange-traded products
• Bitcoin futures contracts
• Bitcoin options
• Bitcoin-backed depositary receipts

In addition, the filing states that the funds may hold certain Bitcoin-related investments through a wholly owned Cayman Islands subsidiary. The inclusion of a subsidiary structure signals that the issuer is planning for operational flexibility in how it sources or holds the relevant Bitcoin-linked instruments.

Two equity universes, one Bitcoin reinvestment rule

The two proposed ETFs differ in the equity set used to generate dividend income, even though both would follow the same dividend-to-Bitcoin investment concept.

According to the filing, the Franklin US Equity Bitcoin DRIP Index ETF would track an index built around a US large-cap equity benchmark. The Franklin US Innovation Bitcoin DRIP Index ETF, meanwhile, would track an index composed of the 100 largest non-financial companies listed on Nasdaq.

Both funds would be passive index ETFs tracking proprietary VettaFi indexes. Franklin Templeton’s filing also indicates that those indexes would be managed with quarterly rebalancing and semiannual reconstitution, meaning the reinvestment-to-Bitcoin process would remain rule-bound even as the underlying equity constituents potentially change.

Why this filing matters as issuers test income-focused Bitcoin products

Franklin Templeton’s proposal adds to a growing trend among asset managers: developing Bitcoin strategies designed to generate or enhance returns through structured rules, including income-focused methods. The filing comes after other major players explored Bitcoin-related products aimed at harvesting yield characteristics rather than relying solely on spot price appreciation.

Earlier this year, BlackRock filed for the iShares Bitcoin Premium Income ETF, which would use an options strategy tied to Bitcoin and its spot ETF to pursue additional returns. In April, Goldman Sachs outlined plans for a Bitcoin income ETF that would invest in spot Bitcoin exchange-traded products and sell call options against those holdings—aimed at generating yield while reducing sensitivity to price swings. Hamilton ETFs also moved toward a covered-call-style approach in Canada with a proposed leveraged Bitcoin income fund, as described in earlier reporting.

At the same time, the filing appears amid concerns about the near-term demand picture for US spot Bitcoin ETFs. CoinShares data cited that spot products have seen persistent outflows—though the source provided in the text points to SoSoValue, noting six consecutive weeks of net outflows between May 15 and June 18.

That backdrop helps explain why dividend-reinvestment mechanics could be appealing. By funneling cash generated from equity holdings into Bitcoin exposure on an ongoing basis, the strategy may offer a different “behavioral” path into Bitcoin—one anchored to equity dividends and disciplined index rules, rather than investor timing decisions alone.

What to watch next

Investors should watch how the SEC evaluates the proposed index methodology, particularly the practical implementation of Bitcoin exposure via futures, options, or Bitcoin-linked instruments, and whether the issuer specifies any additional constraints as part of the review. If approved, the funds would represent another step in Bitcoin ETF design—shifting the conversation from “spot access” to “systematic, income-linked allocation.”

Hsiao-Wei Wang has stepped down as co-executive director and board member of the Ethereum Foundation, effective immediately. 

She announced the decision on X after returning from a sabbatical. Wang said the break gave her time to review her priorities and the next phase of her life. She said she came to feel it was the “right moment” to step back from her formal role.

She thanked Bastian Aue for guiding the transition while she was away. Wang did not announce a new job or project, but said she expects to spend more time closer to home. She also said she remains a member of the Ethereum community.

Buterin credits Wang’s research and community work

Ethereum co-founder Vitalik Buterin also responded to Wang’s exit, saying she had been a “steadfast contributor” to the Ethereum ecosystem for a decade. He recalled her early role in the Ethereum research community and said she helped make research and consensus work more organized.

Buterin also pointed to Wang’s work outside protocol research. He said she helped build a strong Ethereum community in Taipei through people and events. He added that Wang handled her foundation leadership role “skillfully and gracefully” during a difficult period for Ethereum and the wider industry.

His comments add context to Wang’s departure by placing her work across both technical coordination and community building. Wang has not announced her next role, but Buterin said he looks forward to her next steps.

Exit follows earlier leadership change

Wang’s exit comes months after another change at the top of the Ethereum Foundation. In February, Tomasz Stańczak stepped down as co-executive director, and the board appointed Aue as interim co-executive director.

The Ethereum Foundation said at the time that Aue had deep knowledge of its structure and values. It also said he had worked with Wang and Stańczak on decisions across grants, enterprise work, and operations.

Wang and Stańczak had been named co-executive directors in March 2025. The foundation said then that Wang brought seven years of research experience, including work tied to the Beacon Chain and Ethereum’s wider research process. The appointment created a dual-leadership model after Aya Miyaguchi moved into the president role.

Ethereum work continues across teams

Wang used her message to point to the Ethereum community beyond the foundation. She said Ethereum has always been “bigger than any one role” and credited builders, researchers, educators, node operators, validators, and users.

As previously reported by crypto.news, the Ethereum Foundation has continued to fund protocol and infrastructure work. Its Q1 2026 grants supported Geth, Erigon, Lighthouse, validator security tools, zero-knowledge research, and public infrastructure.

Crypto.news also reported that the foundation has faced other staff changes in 2026. The Protocol Cluster transition included exits or sabbaticals involving Barnabé Monnot, Tim Beiko, and Alex Stokes, while new leads took over key areas. That transition came as core teams kept work moving across scaling, security, and client development.

Roadmap remains under watch

The leadership change lands as Ethereum developers prepare for major roadmap work. Crypto.news earlier reported that the Glamsterdam upgrade focuses on Enshrined Proposer-Builder Separation and Block-Level Access Lists.

Those changes aim to make block building more transparent and help clients process data more efficiently. Ethereum teams are also tracking gas repricing, Layer 1 scaling, privacy, and future security work.

The change also comes as the foundation narrows its role. Crypto.news recently reported Vitalik Buterin’s view that the Ethereum Foundation should act as one node in the wider Ethereum system, not as Ethereum’s parent or permanent steward.

Custodia Bank and Vantage Bank have unveiled a tokenized payments model that has combined bank deposits and stablecoins into a single asset, with plans to make the network available to banks and customers in the fourth quarter of 2026.

According to a white paper published on June 18, the proposed token changes its legal and operational form depending on where it is held. Inside the Hazel banking network, it functions as a bank deposit issued by a participating institution. Once transferred to external users or platforms outside the consortium, it becomes a stablecoin backed by cash and short-term U.S. Treasury securities.

Custodia and Vantage said the system has been operating on Ethereum since March and is currently undergoing testing with participating banks ahead of a planned launch later this year. The companies said Hazel is designed to support tokenized deposits, stablecoins and other blockchain-based financial assets through shared banking infrastructure.

Rather than requiring banks to overhaul existing systems, the white paper stated that Hazel operates alongside current core banking software, payment rails and ledger infrastructure. Participating institutions can continue using their existing systems while offering blockchain-based payment services.

The proposal arrives as banks search for ways to enter tokenized payments while retaining customer deposits within the regulated banking sector. Custodia and Vantage said the platform is intended for institutions of all sizes, including community banks and credit unions, allowing them to participate in digital asset payments without moving deposits to third-party stablecoin issuers.

Banks advance tokenized deposit plans

Across the banking sector, financial institutions have increasingly explored tokenized deposits as an alternative to traditional stablecoin models.

Earlier this month, The Wall Street Journal reported that The Clearing House, whose owners include JPMorgan Chase, Bank of America and Citigroup, is preparing a tokenized deposit network that could launch in the first half of 2027. According to the report, the system would allow banks to settle payments using blockchain-based representations of customer deposits.

At the same time, banking groups have opposed proposals that would permit stablecoin issuers to offer yield-bearing products. JPMorgan CEO Jamie Dimon recently said banks would continue challenging provisions in the CLARITY Act, a U.S. crypto market structure bill that he argued could allow crypto firms to compete for deposits without obtaining bank charters.

DefiLlama data shows the stablecoin sector has grown to roughly $315 billion from about $251 billion a year earlier, underscoring the increasing role of blockchain-based dollar assets in payments and settlement activity.

For Custodia, the Hazel initiative also arrives after years of regulatory disputes over access to the traditional banking system. In March, the U.S. Court of Appeals for the Tenth Circuit declined to revive the bank’s challenge against the Federal Reserve after regulators denied its application for a master account. 

Custodia had argued that direct access to Federal Reserve payment infrastructure would allow it to provide settlement services without relying on intermediary banks, while regulators cited concerns related to its crypto-focused business model.

Yuma, one of Bittensor’s largest contributors and the network’s third-largest validator, has published a detailed critique of the proposed “Root Reborn” upgrade, arguing that the design introduces governance, regulatory, and market structure risks that outweigh its potential benefits.

The proposal, currently under review and not yet active on mainnet, would overhaul how root staking rewards are handled. Under the existing system, root dividends are effectively paid by automatically converting subnet alpha emissions back into TAO. The new design would stop those automatic sales.

Instead, validators would set allocation weights across subnets. Root emissions would then be deployed into validator-selected baskets of subnet tokens, with stakers receiving redeemable claims on those positions rather than direct TAO rewards.

The proposal states that the change would reduce automatic sell pressure on subnet assets and make validator allocation decisions a more important part of the network economy. It would also introduce new tools to track validator basket net asset value, subnet allocations, staker liabilities, and network-wide basket performance.

Yuma said the proposal changes the role of validators from infrastructure operators into active allocators of capital.

“In its current form, the Root Reborn proposal carries substantial unmitigated risk that outweighs its benefits,” the validator group wrote.

Yuma warns of conflicts and regulatory exposure

Yuma argued that validators would gain significant influence over capital flows inside the Bittensor ecosystem, creating incentives that may not always align with the interests of delegators.

The group said validators could direct allocations toward subnets in which they already hold positions or accept external incentives from subnet operators seeking additional capital. Yuma compared the structure to the lessons of the LIBOR scandal, where a small group of participants held influence over key financial benchmarks.

“Moral hazard is acute,” Yuma wrote, adding that validators should be expected to maximize their own financial returns.

The organization also questioned whether validator performance could be measured effectively under the proposed system. It said validators would not control redemption timing, making it difficult to maintain target portfolio allocations as users enter and exit positions.

Over time, Yuma argued, new emissions would represent an increasingly small portion of large validator baskets, limiting a validator’s ability to materially influence performance through future allocation decisions.

The report also raised concerns about regulatory treatment. Yuma said validators currently direct blockchain emissions, but Root Reborn would place them in a position where they actively determine subnet token exposure for delegators.

“Validators are no longer simply providing a neutral technological service due to the requirement to also set weights for subnet token rewards,” the group wrote.

Proposal seeks to reduce sell pressure on subnet assets

Supporters of the proposal have presented the upgrade as a mechanism to keep more value inside the subnet economy.

A summary accompanying the Subtensor pull request stated that root yield would move away from automatic subnet token sales and toward reinvestment across validator-selected subnets. The proposal described the change as a way to make validator selection depend on capital allocation decisions rather than primarily on fees or staking yields.

The proposal also said delegators would gain additional transparency through dashboard tools that display basket composition, net asset value, and outstanding liabilities owed to stakers.

Yuma acknowledged that subnets receiving validator allocations could benefit from increased demand and stronger token prices. The group wrote that subnets awarded meaningful weights would likely experience net-positive price effects, while subnets receiving little or no allocation could see neutral outcomes.

At the same time, Yuma warned that the structure could encourage lobbying efforts by subnet operators seeking validator support. The report said new projects may face greater barriers to entry if relationships with validators become an important factor in attracting capital.

The validator group also identified operational risks. Its report cited escrow concentration in a single coldkey, redemption dynamics that could create losses for late redeemers during periods of heavy withdrawals, repeated slippage costs from basket rebalancing, and execution challenges if network activity scales significantly.

Yuma urged the OpenTensor Foundation and network stakeholders to consider alternative approaches that allow stakers to express subnet preferences directly through opt-in mechanisms rather than concentrating allocation decisions among validators.

The group also called for a published upgrade roadmap, a defined release process, additional testing, and formal risk evaluation before any implementation proceeds.

The debate arrives days after Bittensor attracted renewed market attention following comments from Grayscale Head of Research Zach Pandl, who argued that recent U.S. restrictions on Anthropic’s advanced AI models could strengthen demand for decentralized AI networks. Pandl wrote that investors may increasingly look toward alternatives such as Bittensor as access to frontier AI systems becomes subject to centralized controls.

TAO (TAO) climbed roughly 30% within 12 hours after those developments, as per previous coverage on crypto.news. However, as of press time, TAO is down over 6% as traders weigh the recent concerns around the Root Rebor proposal.

AllUnity has launched SEKAU, a Swedish krona-backed stablecoin issued under the European Union’s Markets in Crypto-Assets Regulation. 

In a Friday announcement, the company said the token is structured as an e-money token and backed 1:1 by Swedish krona reserves.

The launch gives Sweden a regulated private stablecoin linked to its national currency. AllUnity said SEKAU targets institutional settlement, cross-border payments, treasury flows, and digital asset market use.

The company said SEKAU is fully reserved and supported by segregated fiat reserves. Holders also have a statutory right of redemption at par value under MiCA rules, according to AllUnity’s legal notice.

Banking partners support reserves

Banking Circle will act as the designated reserve and transaction bank for SEKAU. AllUnity said Banking Circle will hold and manage the fiat reserves backing the Swedish krona stablecoin.

Marginalen Bank is also supporting the rollout as a banking partner. Trust Anchor Group will provide digital asset infrastructure and integration support for broader access to SEKAU.

AllUnity CEO Alexander Höptner said the launch gives the Swedish krona “a native place in the digital economy.” He said the token can support instant settlement, programmable money, and cross-border payments.

Token launches on five networks

SEKAU debuts on Ethereum, Solana, Base, Tempo, and Polygon. AllUnity said the multi-chain rollout is designed to improve access, liquidity, and use across several blockchain ecosystems.

The company also plans to expand SEKAU to more networks later in 2026. The stablecoin will initially be available through the AllUnity Business Mint Account for onboarded institutional clients.

AllUnity said those clients can mint and redeem SEKAU through the platform. The company also said expansion to centralized and decentralized trading venues is already underway.

AllUnity expands European stablecoin lineup

The SEKAU launch extends AllUnity’s multi-currency stablecoin strategy. The company already operates EURAU, a euro-backed stablecoin, and CHFAU, a Swiss franc-backed stablecoin.

As previously reported by crypto.news, AllUnity planned a June launch for SEKAU after earlier announcing its Swedish krona stablecoin push. That report noted that dollar-backed stablecoins still dominate global supply, leaving limited room for regulated non-dollar options.

The Riksbank said earlier this year that stablecoins linked to one national currency are regulated like e-money under MiCA. It also said there were no stablecoins in Swedish kronor at that time.

Crypto.news earlier reported that European banks and companies are moving from research to rollout in stablecoins. MiCA has given issuers a clearer rulebook, while payment demand has pushed projects tied to euro, Swiss franc, and now Swedish krona settlement.

SEKAU does not replace Sweden’s e-krona research. A central bank digital currency would be public money issued by the Riksbank, while SEKAU is private money issued by a regulated company.

For AllUnity, the launch adds a third currency to its regulated stablecoin portfolio. For Europe, it adds another local-currency option at a time when banks, fintechs, and crypto firms are building payment tools under MiCA.

Hong Kong’s market operator and central bank have begun testing a wholesale central bank digital currency for derivatives trading, expanding the use of digital money within the city’s financial infrastructure.

A joint announcement from Hong Kong Exchanges and Clearing (HKEX) and the Hong Kong Monetary Authority (HKMA) said the pilot will explore whether e-HKD can support advance margin payments for the after-hours trading (AHT) session in Hong Kong’s derivatives market.

Under the proposal, clearing participants would be able to use e-HKD, a wholesale central bank digital currency designed to operate around the clock, to transfer margin outside regular banking hours. HKEX and the HKMA said the arrangement would strengthen risk management during the after-hours session while preserving existing operational processes.

The initiative targets a longstanding limitation in the current system. At present, clearing participants must submit advance margin deposit requests to HKFE Clearing Corporation Limited by 3 p.m. if they want those funds recognized for the following after-hours trading session.

HKEX said it has invited clearing participants under HKFE Clearing Corporation to join real-value trial transactions on a voluntary basis. The exchange added that any wider rollout would depend on regulatory approvals, market preparedness and other operational considerations.

“By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry. This project reflects the shared commitment of HKEX and the HKMA to embracing innovation, strengthening the resilience of our markets and reinforcing Hong Kong’s position as a leading international financial centre.” – Vanessa Lau, Chief Operating Officer at HKEX.

Meanwhile, Howard Lee, Deputy Chief Executive of the HKMA, said the pilot would test a wholesale CBDC application in a live market environment.

Wholesale CBDC strategy moves into live market testing

The latest trial builds on the HKMA’s decision to prioritize institutional applications for e-HKD after completing the second phase of its digital currency pilot program in 2025.

At the time, the HKMA concluded that e-HKD and tokenized bank deposits could support programmable and cost-effective transactions across financial services. Trial participants included banks, technology firms and financial institutions that tested digital money in practical use cases.

Authorities later said institutional demand for e-HKD exceeded interest from retail users. The central bank subsequently shifted its focus toward wholesale deployment, including tokenized financial markets and trade settlement applications.

The new HKEX pilot provides one of the clearest examples yet of that strategy. Rather than testing consumer payments, the project places e-HKD within Hong Kong’s derivatives market and uses it to support margin funding during trading activity that continues after banks have closed.

Sonic Labs’ latest governance shake-up has spilled into the market, with the network’s native utility token, S, sliding shortly after the firm announced the resignation of three high-profile board members. According to the report, the departures include Michael Kong, David Richardson, and Andre Cronje, who had previously played key roles across Sonic’s predecessor ecosystem and the project’s technology.

On Friday, the S token traded around 0.031, down 5% over 24 hours. The same announcement also named new top leadership—Matt Visser as chief executive officer and Kosta Kourkoumelis as chief operating officer—while describing the changes as part of a broader effort to respond to community criticism and a long-running decline in the token’s value since the Sonic upgrade.

Key takeaways

• Sonic Labs confirmed board resignations from Michael Kong, David Richardson, and Andre Cronje, shortly before new executives were named.
• The S token fell to about 0.031 on Friday, reflecting immediate market sensitivity to governance changes.
• Sonic Labs attributed leadership transitions to a shift away from business decision-making by the departing board members.
• The company linked the overhaul to community dissatisfaction and a prolonged decline in S since the network upgrade.
• Sonic Labs said it will pursue more transparent governance and establish a dedicated risk and compliance committee.

Board resignations and a rapid leadership reconfiguration

Sonic Labs said that the resignations reflect an orderly handover from long-time builders who helped shape the organization. In a statement attributed to Andre Cronje’s prior communication regarding his resignation, Sonic Labs framed the departing executives as remaining invested in Sonic’s long-term success, while stepping back from ongoing business decisions.

The report lists the three resigning figures as:

• Michael Kong, described as a former CEO of the Fantom Foundation and director at Sonic Labs.
• David Richardson, who served as executive chairman of Sonic Labs.
• Andre Cronje, previously chief technology officer.

Sonic Labs also announced new leadership appointments to steer the organization forward. Matt Visser was named chief executive officer, and Kosta Kourkoumelis was appointed chief operating officer. The reshuffle suggests Sonic Labs intends to pair the board-level changes with day-to-day management restructuring, rather than treating the resignations as purely administrative.

Why the token is reacting now

The immediate drop in the S token comes at a moment when Sonic Labs has been under scrutiny for both performance and sentiment. The article states that S has fallen 97% since launching in January 2025 as part of a network upgrade, and that this decline has occurred alongside a “prolonged decline” in the token and growing community dissatisfaction.

In its own remarks about the situation, Sonic Labs reportedly acknowledged negative price action and weaker community sentiment, emphasizing that it would not treat the downturn as a temporary optics problem. The reported message—“We are not going to open with a victory lap. The token is down. Community sentiment is down. We see both clearly, we are not spinning it”—signals that the company views current market mood as a governance and communication challenge, not just a trading-cycle issue.

For investors and traders, the practical takeaway is that Sonic Labs appears to be responding to a credibility gap. Even when token fundamentals don’t change overnight, governance shifts can affect perceived execution risk—especially for protocols that rely on continued developer confidence and stable institutional oversight.

Governance reforms: transparency, communication, and compliance

The article notes that Sonic Labs is overhauling its leadership and governance structure. Sonic Labs said the changes include a commitment to more transparent governance and clear communication about project updates. It also highlighted plans to create a dedicated risk and compliance committee, a move that may be aimed at strengthening internal controls as the network continues to mature.

The reorientation is important because Sonic is described as an EVM-compatible layer-1 that positions itself around speed, including claims of 10,000 transactions per second and subsecond finality. Where performance claims meet reality depends on consistent execution and sustained coordination among leadership, developers, and stakeholders. Governance reform—especially involving risk and compliance—can help reduce uncertainty for users and ecosystem partners, even if it doesn’t immediately reverse token price momentum.

From Fantom to Sonic: a major technical shift still unfolding

The background to this governance update is Sonic’s origin story. Sonic Labs is described as the successor to the Fantom Foundation, founded in 2018. The network’s rebrand from Fantom to Sonic is characterized as a major structural and technical upgrade, including the replacement of the legacy Fantom Opera network.

That context matters because the S token launched as part of the Sonic upgrade in January 2025. When a protocol undergoes a migration and replatforming event, it often takes time for liquidity, ecosystem incentives, and community alignment to stabilize. The article’s claim that S has declined 97% since launch suggests that, at least so far, the market has judged the post-upgrade execution and traction against expectations.

At the same time, Sonic Labs’ stated focus on transparent governance and better project communication indicates it sees the present moment as a pivot point—an opportunity to rebuild alignment after leadership changes and community complaints intensified.

Elsewhere in the broader crypto sector, the article also references a leadership departure at the Ethereum Foundation, where co-executive director Hsiao-Wei Wang reportedly stepped down on Thursday, following a year that included layoffs and departures. While the Ethereum Foundation event is separate from Sonic’s day-to-day operations, it underscores a wider theme: institutional governance in crypto continues to experience personnel volatility, which can influence sentiment across the industry.

What to watch next for Sonic and S

Following the board resignations and the new CEO and COO appointments, investors will likely watch whether Sonic Labs can translate governance promises—particularly around transparent decision-making, clearer project updates, and a risk/compliance framework—into measurable progress on ecosystem delivery. The key question is whether improved accountability can stabilize community sentiment and, over time, narrow the gap between Sonic’s stated roadmap and market expectations.