The Protocol: Lido Avoids Major Hack
Welcome to The Protocol, CoinDesk's weekly wrap-up of the most important stories in cryptocurrency tech development. This is Margaux Nijkerk and Sam Kessler, CoinDesk's Tech team.
In this issue:
Hacking Attempt on Lido Results in 1.4 Ether Lost From Oracle Provider
Bitcoin DeFi Security Improves as Rootstock Boosts Hashrate Share
Ethereum's Next Upgrade 'Fusaka' Could Cut Layer-2 and Validator Costs
Telegram Cracks Down on $8 billion Crypto Crime Marketplace
Unknown block type "divider", specify a component for it in the `components.types` option
LIDO AVOIDS MAJOR SECURITY BREACH: Lido, Ethereum's largest liquid staking protocol, avoided a major security incident after one of its nine oracle keys was compromised in what appears to be a low-impact but serious breach involving validator operator Chorus One. Lido secures over 25% of all ether (ETH) staked on Ethereum, making it one of the most systemically important protocols in the Ethereum ecosystem. The compromised key was tied to a hot wallet used for oracle reporting, leading to the theft of just 1.46 ETH ($4,200) in gas fees. No user funds were affected, and no broader compromise was detected, per X posts from both Lido and Chorus One. — Tim Craig Read more.
BITCOIN DEFI BLOSSOMING: Decentralized finance (DeFi) on the Bitcoin blockchain may still be in its infancy relative to Ethereum, but Bitcoin DeFi (BTCFi) is becoming safer and cheaper, crypto analytics firm Messari said in a new report. A central participant is Rootstock, one of the oldest Bitcoin layer-2 projects, crypto analytics firm Messari said in its "State of Rootstock" report. Rootstock is now secured by 81% of Bitcoin's total hashrate, meaning miners that account for amount the hashrate are also approving transactions on the layer 2. The figure was just 56% before the the onboarding of Foundry and Spiderpool, the world's largest and sixth-largest mining pools, respectively, in February. — Jamie Crawley Read more.
FUSAKA PLANNING BEGINS: After the successful deployment last week of Pectra, Ethereum's biggest upgrade in more than a year, the network's core developers are already shifting focus to the next major chain upgrade: Fusaka. Pectra, the biggest code change to Ethereum since the Merge in 2022, introduced key changes aimed at making staking easier for institutions, improving wallet accessibility, and boosting transaction efficiency. Developers have already begun planning for Fusaka, the network's next upgrade, and have thus far agreed to include an Ethereum Improvement Proposal (EIP) called "PeerDAS" that could help the network support larger "blobs" of transaction data. — Margaux Nijkerk Read more.
TELEGRAM CRACKS DOWN ON CRYPTO CRIME MARKETPLACE: Messaging app Telegram has closed thousands of channels belonging to suspected Chinese crypto-crime marketplaces after new research shed light on the situation, according to Elliptic. The closure follows a report published by the blockchain analytics firm on Tuesday into the fast-growing Telegram-based marketplace called Xinbi Guarantee. The Colorado-incorporated marketplace has processed over $8.4 billion worth of transactions using Tether's USDT stablecoin since 2022. It facilitates services relating to money laundering, operating crypto scam compounds and other illicit services, such as intimidation and sex trafficking, according to Elliptic. — Tim Craig Read more.
Unknown block type "divider", specify a component for it in the `components.types` option
Robinhood Markets (HOOD), the California-based financial services company, said it agreed to buy Canadian crypto firm WonderFi (WNDR) for $178.98 million. The all-cash acquisition values WonderFi at 36 Canadian cents per share, a 41% premium over its closing price prior to the announcement. — Omkar Godbole Read more.
Stock and crypto trading platform eToro (ETOR) debuted at $52 a share on the Nasdaq exchange. The company raised about $312 million from investors by selling 6 million shares at a price of $52 a piece. The listing values the company at $4.2 billion. EToro became the first U.S. crypto company to go public following the market uncertainty wrought by President Donald Trump's tariff actions. — Helene Braun Read more.
Unknown block type "divider", specify a component for it in the `components.types` option
The Gibraltar government said it plans to establish the world's first rules for the clearing and settlement of crypto derivatives, creating a regulatory framework to improve market integrity and reduce key risks. Working with the Gibraltar Financial Services Commission (GFSC) and crypto exchange Bullish (whose owner, Bullish Group, is also the parent of CoinDesk), the government has built a framework over the past six months that tailors traditional financial clearing regulations to the virtual asset market. — Jamie Crawley Read more.
Unknown block type "divider", specify a component for it in the `components.types` option
May 14-16: Consensus, Toronto
May 19-23: Solana Accelerate, New York City
May 20-22: Avalanche Summit, London
May 27-29: Bitcoin 2025, Las Vegas
May 27-29: ETHPrague, Prague
June 8-22: Berlin Blockchain Week, Berlin
June 30-July 3: EthCC, Cannes
July 16-18: Web3 Summit, Berlin
Sept. 22-28: Korea Blockchain Week, Seoul
Oct. 1-2: Token2049, Singapore
Dec. 11-13: Solana Breakpoint, Abu Dhabi
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Asia Morning Briefing: BTC Stalls at 105K as Analyst Says Market Looks 'Overheated'
Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas. Bitcoin BTC is trading above $105K as Asia begins its business week. The world's largest digital asset remained relatively stable over the weekend, with a 0.4% movement, and trading volume was compressed. While overall market conditions remain bullish, a new report from CryptoQuant suggests that certain metrics indicate the BTC market is 'overheating.' The report shows bitcoin demand has climbed to 229,000 BTC over the past 30 days, approaching the December 2024 peak of 279,000 BTC. At the same time, whale-held balances have risen by 2.8 percent, a pace that often signals slowing accumulation. These indicators suggest the current rally, which pushed prices to a record $112,000, may be nearing a short-term top. The report highlights $120,000 as the next major resistance level, tied to the upper band of the Traders' On-chain Realized Price, where unrealized profits would hit 40 percent, a threshold that has historically marked local tops. While CryptoQuant's "Bull Score Index" remains strong at 80, signaling continued bullish momentum, rising profit margins, and peaking demand growth suggest traders may face a period of consolidation before the next leg higher. James Wynn Gets Liquidated, But Says He'll 'Run it All Back' James Wynn, a trader renowned for his aggressive, high-leverage bets on Hyperliquid, has been fully liquidated, leaving him with just $23 in his account after sustaining losses totaling more than $17 million, CoinDesk previously reported. Wynn, who attracted significant attention with trades involving bitcoin, memecoins like PEPE, and even obscure tokens such as FARTCOIN, first faced steep declines from a massive $1.25 billion long position on BTC, resulting in a loss exceeding $37 million after prices dipped below $105,000 amid geopolitical turmoil. Throughout the volatile month, Wynn rapidly cycled through trades, briefly netting an unrealized gain of $85 million before market swings wiped him out completely. An account associated with Wynn downplayed the dramatic liquidation, defiantly stating on X: "I'll run it back, I always do. And I'll enjoy doing it. I like playing the game. I took a large and calculated bet at making billions." Brazil's Méliuz Shares Sink 8% After Announcing $78M Equity Raise to Buy Bitcoin Brazilian fintech Méliuz plans to raise up to $78 million through a public equity offering, intending to allocate all proceeds to purchasing Bitcoin and positioning the cryptocurrency as a primary strategic asset in its treasury, CoinDesk previously reported. However, Méliuz's strategy hasn't impressed the market yet, as shares dropped more than 8% following the announcement. The initial offering includes 17 million common shares, with the potential to expand up to 51 million, and investors will receive subscription warrants allowing future stock purchases at set prices. Known for its cashback and financial services platform serving over 30 million users, Méliuz currently holds 320.2 BTC, having previously committed 10% of its cash reserves to Bitcoin in March. Trading for the subscription warrants is expected to commence on June 16, with share settlement and warrant issuance finalized by June 18. NYC Comptroller Rejects Mayor Adams' 'BitBond', Warns Deviating from Dollar Could Undermine City's Credit Reputation New York City's Comptroller Brad Lander sharply criticized Mayor Eric Adams' plan to issue municipal bonds backed by bitcoin, labeling the proposed "BitBond" as "legally dubious and fiscally irresponsible," CoinDesk previously reported. Lander rejected the idea just days after Adams introduced it at a bitcoin conference in Las Vegas, emphasizing that cryptocurrency's instability makes it unsuitable to reliably fund critical city projects such as infrastructure and affordable housing. Mayor Adams has actively promoted cryptocurrency initiatives since entering office, including converting his own paychecks into digital assets and establishing a digital asset advisory council. However, Comptroller Lander highlighted serious practical concerns with the BitBond proposal, noting federal tax laws and city financial regulations would make the proposal unworkable, and warned that deviating from the dollar-based municipal borrowing system could undermine investor confidence and New York City's credit reputation. BTC: Bitcoin showed resilience, staging a V-shaped recovery between $103,813.37 and $105,305.75 amid notable volume spikes. ETH: Ethereum formed a bullish reversal pattern, rebounding from strong support at $2,472.84 to $2,527.53 amid high-volume buying momentum, according to CoinDesk's Market Insight Bot. Gold: Gold climbed 0.6% to $3,311.66, as traders weighed its recent retreat from record highs against ongoing investor and central bank appetite driven by uncertainty over US tariffs and broader economic risks. Nikkei 225: Japan's Nikkei 225 dropped 0.89% as Asia-Pacific markets traded mixed following Trump's announcement of increased steel tariffs. S&P 500 Futures: Stock futures dipped Sunday to start June after the S&P 500's strongest month since November 2023, amid uncertainty over President Trump's tariffs following recent contradictory court rulings. Wintermute warns Pectra upgrade leaves Ethereum users at risk of automated attacks (The Block) Here's What's at Stake for Crypto in South Korea's Upcoming Election (Decrypt) JPMorgan's Jamie Dimon Says U.S. Should Stockpile Missiles, Not Bitcoin (CoinDesk) IMF Raised Concerns Over Pakistan's Plan to Allocate 2,000MW of Electricity for Bitcoin Mining (Local Report) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Elon Musk just dropped 'Bitcoin-style' XChat, and the community is losing it
Elon Musk just dropped 'Bitcoin-style' XChat, and the community is losing it originally appeared on TheStreet. Elon Musk is doubling down on privacy. In his latest update for X (formerly Twitter), the billionaire CEO announced XChat — a new encrypted messaging feature that will support audio/video calls, vanishing messages, and all-file sharing. 'The all new XChat is rolling out with encryption, vanishing messages, and the ability to send any kind of file. Also, audio/video calling,' Musk posted on X. He added that the system is built on a 'whole new architecture' with 'Bitcoin-style encryption' — hinting at a more decentralized, cryptographically secure infrastructure, though no technical details were provided. The move is part of Musk's broader effort to transform X into a privacy-forward 'everything app.' While Musk didn't elaborate on what 'Bitcoin-style encryption' actually means, the phrase has sent crypto communities into full meltdown mode. 'Bro, if this is even half as secure as Bitcoin wallets, we're about to see Telegram get wrecked,' wrote one user on the CryptoLeaks Discord. "XChat + no phone number + vanishing mode?? Elon just gave OPSEC its biggest W,' said another in a Solana DEX server. A third user posted, 'You're telling me I can now send airdrop links, memes, and seed phrases without getting doxxed? God bless this man.' While announcing a separate payments feature X Money last week, which will launch in beta later this year — Musk emphasized the platform's cautious approach: 'This will be a very limited access beta at first. When people's saving are involved, extreme care must be taken.' The new wave of tools seems to suggest X wants to rival apps like Signal, Telegram, and even China's WeChat — combining finance, messaging, and social media under one encrypted roof. Elon Musk just dropped 'Bitcoin-style' XChat, and the community is losing it first appeared on TheStreet on Jun 1, 2025 This story was originally reported by TheStreet on Jun 1, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
7 hours ago
- Yahoo
BlackRock Reportedly To Take 10% Of Circle IPO: Major Asset Manager Doubles Down on Stablecoin Strategy
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. BlackRock (NYSE:BLK), the world's largest asset manager, is planning to acquire approximately 10% of Circle Internet Group's initial public offering, representing a significant vote of confidence in the stablecoin sector, according to Bloomberg. Circle, the issuer of USDC (USD Coin), is seeking to raise up to $624 million in what appears to be an oversubscribed offering set to price on June 4. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Offering Size and Demand: Target raise: Up to $624 million BlackRock stake: ~10% of shares offered Ark Investment Management: Up to $150 million interest Existing Business Relationship: BlackRock manages Circle's government money market fund The Circle Reserve Fund holds $30 billion in net assets as of April 2024 This fund backs 90% of USDC stablecoin reserves For BlackRock: This investment represents more than financial returns—it's a strategic positioning move. BlackRock already manages the reserves backing USDC, making this equity stake a natural extension of their existing relationship. The investment aligns with BlackRock's broader crypto strategy, including their successful Bitcoin ETF launch. For Circle: The backing from both BlackRock and Ark Investment provides institutional credibility crucial for a crypto company going public. Having established asset managers as cornerstone investors should help stabilize the stock post-IPO and attract additional institutional interest. The timing appears opportune for crypto companies seeking public market access. The current political environment under President Donald Trump has created a more favorable regulatory landscape for digital assets. Proposed legislation requiring stablecoins to be backed by cash and safe assets—exactly Circle's model—could provide competitive advantages over less regulated competitors. Trending: New to crypto? on Coinbase. Regulatory Evolution: While the current environment appears favorable, crypto regulations remain in flux. Future policy changes could impact stablecoin operations and profitability. Market Volatility: Crypto-related stocks typically exhibit higher volatility than traditional financial services companies. Investors should expect significant price swings. Competition Intensifying: The stablecoin market faces increasing competition from both crypto-native companies and traditional financial institutions exploring central bank digital currencies. This deal represents the continued convergence of traditional finance and cryptocurrency. For retail investors, Circle's IPO offers exposure to the growing stablecoin market through a regulated, public company structure. However, investors should carefully consider their risk tolerance and the speculative nature of crypto-adjacent investments. The strong institutional backing suggests professional investors see long-term value in Circle's business model, but past performance in crypto markets demonstrates that institutional interest doesn't guarantee steady returns. BlackRock's planned investment in Circle reflects the asset manager's conviction that stablecoins will play an increasingly important role in the financial system. For the broader market, this deal signals continued institutional adoption of crypto infrastructure, potentially paving the way for more traditional finance companies to deepen their cryptocurrency exposure through regulated, public market vehicles. Read Next: A must-have for all crypto enthusiasts: . Image: Shutterstock Send To MSN: 0 This article BlackRock Reportedly To Take 10% Of Circle IPO: Major Asset Manager Doubles Down on Stablecoin Strategy originally appeared on
