Sources: An explosion has occurred in Saudi Arabia's Jizan region.
According to Iranian media outlet Fars News, Arab sources said an explosion occurred in the Jizan region of Saudi Arabia.
39 minutes ago
Iran and the United States are exchanging views on negotiation plans and terms via mediators.
According to Saudi media outlet Al-Hadath, Iran and the United States are exchanging views on negotiation plans and terms via intermediaries. Iran has proposed new conditions to the U.S. for resuming talks, and stated that there is no need to withdraw from the memorandum of understanding (MoU) with the U.S.
39 minutes ago
Intel's gains widened to 10%
According to market data from BIT (bit.com), Intel (INTC.O) extended its gain to 10%.
39 minutes ago
The "Big Short" Michael Burry’s latest portfolio adjustment: Lululemon has become his largest holding, with short positions accounting for over 21%.
Michael Burry, the real-life inspiration for *The Big Short*, disclosed his latest portfolio adjustments via his Substack account today, stating that his largest long position is Lululemon, accounting for 17.4% of his portfolio, followed by MercadoLibre at 12%. The second tier includes Molina Healthcare and Temple & Webster, each making up 9%. Additionally, Burry holds long positions in Adobe, Zoetis, JD.com, HCA Healthcare, Flutter, Fannie Mae, Freddie Mac, Sprouts, PayPal, Veeva, Birkenstock, Build-A-Bear, and NVIDIA, with NVIDIA also used as a hedge. On the short side, Burry’s current short positions, ordered by size from largest to smallest, are iShares Semiconductor ETF, Micron, Nebius, CoreWeave, Oracle, Palantir, NVIDIA, Caterpillar, and Invesco QQQ Trust. Among these, his Invesco QQQ put option positions account for roughly 6% of his portfolio. Overall, his short positions make up over 21% of his portfolio, a figure that does not include put option positions, indicating he remains betting on valuation pressure for certain tech and AI-related assets. Furthermore, Burry has fully closed out his short positions in Tesla and Applied Materials, exiting both trades at a profit; he also sold all his SOXX put options and converted those positions into larger QQQ put options. Following the latest adjustments, Lululemon rose to his largest position after an increase, while his overall portfolio remains sharply split: bullish on select consumer and healthcare stocks, and bearish on certain tech and AI assets.
39 minutes ago
US Treasury Secretary: US Treasury bond repurchases aim to calm market "frenzy"
U.S. Treasury Secretary Scott Bessent said last month’s expansion of the U.S. Treasury’s repurchase program was aimed at calming the "frenzy" building in the bond market and pushing prices back to equilibrium. Bessent noted that while he cannot alter the market’s equilibrium price, he hopes to curb excessive speculation. He added that if investors were truly concerned about U.S. debt credit, they would sell U.S. Treasuries and buy German bunds, though current market behavior does not reflect such concerns. Bessent denied that the Treasury’s repurchase of Treasuries is equivalent to the Federal Reserve’s quantitative easing, explaining the measure is more similar to the Fed’s past "Operation Twist". The program’s expansion comes against the backdrop of the U.S. 30-year Treasury yield hitting its highest level since 2007.
39 minutes ago
Strategy has launched Bitcoin-themed Air Jordan 1 sneakers, priced at $250.
Strategy has launched a Bitcoin-themed Air Jordan 1 sneaker priced at $250, but its official website only supports bank cards and Apple Pay at checkout, not Bitcoin payments. Air Jordan is a high-end sports and lifestyle brand under Nike, founded in 1984 and named after NBA legend Michael Jordan, specializing in basketball shoes and sportswear. Previous reports noted that Strategy did not increase its Bitcoin holdings last week. As of September 7, 2026, Strategy holds 845,050 BTC.
According to an official announcement, Binance will add watch tags for AVA (AVA), Gains Network (GNS), Scroll (SCR), and Towns Protocol (TOWNS). Compared to other listed tokens, watch-tagged assets have higher volatility and greater associated risk. Trading these tokens is risky, as they no longer meet the exchange’s listing standards and are subject to potential delisting.
Binance applied its Monitoring Tag to AVA (AVA), Gains Network (GNS), Scroll (SCR), and Towns Protocol (TOWNS) on September 4. The label places all four tokens under closer review.
Traders reacted quickly. All four tokens dropped following the announcement.
What Does the Binance Monitoring Tag Mean?Binance uses the tag to flag assets that are more volatile and riskier than the rest of its listings. Tagged tokens face repeat reviews and can lose their listing entirely.
“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” the team said.
Binance weighs team commitment, development activity, trading volume, liquidity, network stability, and tokenomics changes during each review.
The recent record gives the label weight. Binance delisted Across Protocol (ACX), Hashflow (HFT), PIVX, Vulcan Forged PYR (PYR), Vanar (VANRY), and Viction (VIC) last month, and all had been tagged earlier.
The pattern repeated weeks later. Binance removed ICON (ICX), Secret (SCRT), and Storj (STORJ) from spot trading on September 3. All three had received the tag first, ICX as recently as August 11.
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The market priced that history in almost immediately. TOWNS slid 9.02% in the minutes after the announcement. SCR traded near $0.0214 after the notice, down 7.5%, with about $1.6 million in trading volume on Binance.
1-minute price charts for AVA, GNS, SCR, and TOWNS on Binance following the Monitoring Tag announcement, Source: TradingViewAVA dropped 4.88%. GNS managed to recover some of its losses and was down 0.38% at press time. Binance said other services tied to the four tokens remain unaffected.
The tag does not commit Binance to a delisting. However, the last few removal rounds drew from the tagged list, raising risks.
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Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
DeFi risk management service LlamaRisk recommended that Aave wind down every reserve on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, but action against most of those instances was already taken.
An Aave governance proposal would wind down the lending protocol’s V3 markets on six blockchains and retire dozens of low-use token listings, a cleanup covering $98.1 million in supplied assets and $15.6 million in debt.
Risk service provider LlamaRisk, working with other Aave service providers, recommended offboarding 50 low-use reserves and 21 matured Pendle principal token listings across 11 deployments. It also proposed retiring all 25 reserves on Sonic, Scroll, zkSync, Metis, Soneium and Aptos. The balances were measured on July 28.
An ARFC is a detailed proposal and precursor to an Aave Improvement Proposal; it is not, by itself, proof of a completed final onchain vote or execution.
Aptos exit follows recent launchThe proposed Aptos exit comes just 11 months after Aave launched its V3 market there, with available liquidity down 94% over six months and quarterly revenue below $1,000, according to LlamaRisk.
Every reserve on Scroll, zkSync, Metis and Soneium was already frozen, whereas Sonic and Aptos remained active and are recommended for freezing. The temp check on Aave’s multichain strategy concluded on Dec. 5, 2025, with 923,400 votes in favor and under 1% against increasing the reserve factor on underperforming instances, shutting down the instances on zkSync, Metis and Soneium, and establishing a $2 million annual revenue floor for new instance deployment.
Scroll was then added to the affected protocols through an accelerated process in April, as LlamaRisk filed a direct-to-AIP proposal to freeze every Scroll reserve and raise selected reserve factors, describing the measure as completing Scroll’s deprecation after a rapid deterioration in network liquidity and Aave market activity. Aave also published an updated risk framework on June 9, covering asset, bridge, monitoring and chain risk and criteria for winding down reserves or deployments, and this month’s announcement indicated de facto adoption of those rules by the protocol.
Aave founder comments on developmentSource: Stani Kulechov
Aave founder Stani Kulechov said in a Thursday post that this will also “reduce Aave’s economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework.”
Still, this is not a reversal of Aave’s multichain expansion strategy, rather a strategic refocusing on select protocols. “Aave will continue applying continuous risk assessment for all assets across all deployments,” Kulechov said. The comments also follow Aave launching on Avalanche earlier this month.
Magazine: The real reason DeFi projects that survived 2022 crash are shutting down now
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Aave is planning to sunset 75 low-activity reserves across its decentralized finance (DeFi) protocol as part of a broader effort to reduce operational, technical and economic risks across its network of deployments.
In a proposal submitted on Thursday by risk service provider LlamaRisk in collaboration with Aave service providers, the firms pointed to 50 individual Aave V3 reserves and 21 matured Pendle Principal Tokens (PTs) across 11 deployments. These reserves currently hold approximately $85.3 million in supplied assets and $11.5 million in debt.
Aave to deprecate deployments across Sonic, Aptos, zkSync and MetisThe proposal also recommends the full deprecation of six smaller deployments, including Sonic (S), Scroll (SCR), zkSync (ZK), Metis (METIS), Soneium and Aptos (APT).
These markets contain another 25 reserves with approximately $12.8 million in supply and $4.1 million in debt. Sonic leads the pack with $7.6 million, followed by Scroll with $2.2 million, Aptos with $1.7 million, zkSync with $800,000, Metis with $300,000 and Soneium with $200,000.
Combined, the deprecations across Aave's reserves affect roughly $98.1 million in supply and $15.6 million in debt.
Contribution of each deployment to the supplied value in scope ($98.15M total). Source: LlamaRiskAave noted that the aggregate activity on the six networks had declined to a point where the revenue generated no longer justified the cost of supporting them.
The proposal targets a range of assets across Aave's deployments, including USDC.e, DAI, UNI and CRV, alongside assets on Polygon and other networks. The removals are part of Aave's broader effort to streamline its reserve portfolio and reduce the operational costs and risks associated with supporting low-adoption assets.
The wind-down process will allow users to exit positions in an orderly manner while reducing the risk of liquidations. The approach involves freezing each reserve, which prevents new supply, borrowing and the use of the assets as fresh collateral. Supply and borrow caps will also be reduced to one.
For reserves with outstanding borrowing, the reserve factor is increased to encourage borrowers to repay their positions and suppliers to withdraw their assets. As liquidity leaves the market, utilization is expected to rise, creating additional incentives for borrowers to close their positions.
Kulechov says wind-down is not a negative view of affected chainsAave CEO Stani Kulechov stated that the decision should not be viewed as a negative assessment of any individual Layer 1 or Layer 2 network.
“The goal is simply to reduce Aave's operational, technical, and economic risk surface so we can focus on higher-impact priorities such as growing existing high-value markets and expanding to securities finance,” Kulechov wrote on X.
He added that Layer 2 networks remain important to Ethereum's user experience, while networks such as Avalanche continue to support the growth of real-world assets on-chain.
AAVE is trading at $99.2, up 1% over the past 24 hours at the time of writing.
Aave is moving to deprecate dozens of low activity asset reserves and shut down six blockchain deployments as part of a broad effort to reduce the lending protocol’s economic and technical risk.
Aave founder Stani Kulechov said the protocol will deprecate 50 low adoption reserves across several deployments. It will also orderly wind down its markets on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, covering another 25 reserves.
The process also includes 21 matured Pendle Principal Tokens that will be replaced by reserves linked to newer maturities.
Together, the changes affect approximately $98.1 million in supplied assets and $15.6 million in outstanding debt.
“These measures reduce Aave’s economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework,” Kulechov said.
The recommendations were prepared by DeFi risk service provider LlamaRisk alongside other Aave service providers working on reducing the protocol’s risk surface.
According to the review, the individual reserve removals cover $85.3 million in supply and $11.5 million in debt. The six complete market closures account for another $12.8 million in supply and $4.1 million in debt.
Aave targets reserves with limited activity Most of the assets included in the proposal have either remained below Aave’s required usage thresholds or experienced substantial declines in deposits.
Each reserve creates ongoing operational requirements for the protocol, including maintaining price oracles, monitoring risk parameters, and ensuring that liquidations can be completed reliably.
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LlamaRisk said reserves whose activity no longer justifies those costs should be wound down rather than maintained indefinitely.
The scope also includes bridged assets such as USDC.e and USDbC in markets where native USDC is already available. Other special cases include MaticX, which is being discontinued by its issuer, and matured Pendle tokens that no longer generate yield.
Some of the largest individual positions include $32.2 million held in matured Pendle tokens on Plasma, $11.1 million in FBTC on Ethereum, and $5.3 million in eBTC.
Aave is also targeting assets such as DAI on Arbitrum, USDC.e on Polygon, WBTC.e on Avalanche, and several smaller reserves across Ethereum, Base, Optimism, Gnosis, BNB Chain, and MegaETH.
Six Aave deployments will be retired The six complete market closures were selected after activity and protocol revenue declined below levels needed to justify their maintenance costs.
Deposits on Aave’s Sonic deployment fell 74% over six months to $7.6 million, while the Scroll market declined 86% to $2.2 million.
Deposits on zkSync dropped 88% to approximately $844,000. Metis declined 79% to $297,000, while Soneium deposits fell 95% to $173,000.
Aptos currently holds around $1.7 million in supplied assets and $719,000 in debt. Available liquidity across its reserves has fallen approximately 94% over six months.
LlamaRisk estimated that Sonic, Scroll, and zkSync each generate less than $5,000 in protocol revenue per quarter at current balances. Metis, Soneium, and Aptos generate less than $1,000 per quarter.
The review concluded that this revenue does not cover the costs of maintaining price feeds, monitoring risks, and providing operational support for the deployments.
Users will be given time to exit positions Aave plans to wind down the affected reserves gradually rather than immediately closing user positions.
The standard process involves freezing each reserve and reducing its supply and borrowing caps to one. Freezing prevents users from creating new deposits, loans, or collateral positions while allowing existing positions to remain open.
For reserves with outstanding loans, Aave may increase the reserve factor, directing a larger share of interest payments to the protocol treasury and reducing returns for depositors. The measure is designed to encourage suppliers to withdraw and borrowers to repay.
For the six complete market closures, reserves with outstanding debt will generally have their reserve factor increased to 99%, while the base borrowing rate will be set at 5%.
Aave may later raise borrowing rates further or gradually reduce liquidation thresholds where borrowers do not unwind their positions.
Once the remaining exposure has declined, the protocol plans to replace live price feeds on the retired deployments with fixed price oracles, allowing the markets to be fully discontinued.
Kulechov said Aave will continue conducting continuous risk assessments for assets across all its deployments.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
South Korea's NH Investment & Securities maintains a "Buy" rating on SK Hynix, but cuts its target price to 3.4 million Korean won.
South Korea's NH Investment & Securities maintained a "Buy" rating on SK Hynix, but cut its target price from 4.1 million won to 3.4 million won. Citing the HBM4 shipment timeline and faster-than-expected adoption of long-term agreements (LTAs), the firm took a cautious stance and slightly lowered its 2027-2028 earnings forecasts. Even so, the focus remains on the sustainable supply-demand and profit levels brought by LTA implementation, rather than industry downturn cycles. Currently, the market still has high skepticism about the effectiveness of LTAs, so more time is needed for validation. Once the LTA's effectiveness is confirmed by the market, it is expected to drive a re-rating of the company's valuation. Meanwhile, although the company's cash generation capacity has improved significantly, the lack of a clear shareholder return framework remains disappointing. If the company clarifies its capital allocation guidelines, this will serve as a key catalyst for stock price gains. Given the company's still-solid fundamentals, the recent stock pullback has been excessive. SK Hynix reported 79.3 trillion won in sales for Q2 2026, up 256.8% year-over-year (YoY) and 50.9% quarter-over-quarter (QoQ); operating profit stood at 60.5 trillion won, surging 557.2% YoY and 61.0% QoQ. The company's results slightly missed market expectations due to product mix adjustments and the initial implementation of LTAs. Looking ahead to Q3 2026, with HBM4 shipments accelerating, bit growth for DRAM and NAND is projected to rise 10.0% and 1.3% QoQ respectively, while combined average selling prices (ASPs) are expected to increase 16.5% and 7.0% QoQ. SK Hynix is forecast to post an operating profit of 76.2 trillion won in Q3 2026, up 569.6% YoY and 25.9% QoQ.
3 minutes ago
SK Hynix exited a new $120 million position, with long funding rates rising 37.5% month-over-month.
According to Hyperinsight monitoring, SKHX is currently trading at $921.3, down around 8% intraday, with a 24-hour trading volume of approximately $1.523 billion. Despite the price continuing to decline, capital has not exited; instead, the value of open interest (OI) has risen to about $571 million. Yesterday, SKHX’s OI increased from $443 million to $564 million, a daily rise of roughly $120 million, marking a 27.2% growth. After the price dropped further today, open interest continues to expand, and long position crowding has risen simultaneously. SKHX’s current funding rate is approximately +0.0431% per hour, with a 24-hour cumulative rate of around +0.3948%, a 37.5% sequential increase from the prior 24 hours, further pushing up the cost of long positions. Among whales holding over $1 million in positions, the long-short ratio stands at about 1.24:1, with long positions outpacing short positions by roughly $282 million, meaning both the number and value of positions lean toward longs. However, the closer to top addresses, the weaker the willingness to buy the dip. The overall long-short ratio of all holding addresses is around 4.02:1, but among the top 10 addresses with the largest positions, only 3 are long and 7 are short, bringing the long-short ratio down to 0.43. The top 10 addresses hold a total of about $172 million in positions, accounting for 30.5% of total OI. Currently, SKHX’s dip-buying power is mainly concentrated in long-tail funds.
3 minutes ago
Goldman Sachs: Market deleveraging is nearing its end, though risks have not yet been fully cleared, it advises proactive buying of protection.
Goldman Sachs’ trading team noted that US equities have recently experienced sharp momentum pullbacks and position liquidation, with the deleveraging process likely in its late stages, though substantive risk reduction has not yet been completed. Global total leverage remains at the 93rd percentile of the past five years, and events such as geopolitical tensions, Federal Reserve policy, and earnings season may continue to keep market volatility high. Goldman Sachs expects US stocks’ upside in August will be constrained by seasonal fund outflows, insufficient institutional risk appetite, and dealer positive Gamma positions, with the market likely to trade in a range in the short term. If the market continues to decline, systematic strategies like CTAs may ramp up selling pressure; the estimated sell size in a downside scenario over the next week is $24.9 billion, far exceeding the ~$2.3 billion buy size in an upside scenario. Corporate buybacks will serve as the most stable buying support in the near term. Currently, about 31% of S&P 500 constituents are in their buyback open windows, a proportion projected to exceed 90% by mid-August. However, as individual stock-index correlation rises, the extreme risk of synchronized market sell-offs is increasing. Goldman Sachs advises investors to proactively purchase protective positions, including going long on market correlation, buying three-month put options on the Russell 2000 ETF, and allocating short-term option protection for retail-favored stocks. Current hedging costs remain reasonable, making them suitable for hedging further market downside risks.
3 minutes ago
Coinbase to list Brent Crude and WTI Crude perpetual contracts
According to an official announcement, Coinbase will launch Brent crude oil and WTI crude oil perpetual contracts. Trading for the BRENTOIL-PERP and WTIOIL-PERP perpetual contract markets will open at or after 17:00 Beijing Time on August 3.
3 minutes ago
Citrini: If the "25-year-old AI stock guru" completes its fundraising and lifts its hedging positions, the new funds could push AI stocks to hit bottom.
Citrini stated that initial investors in 25-year-old AI stock prodigy Leopold Aschenbrenner’s AI-themed hedge fund Situational Awareness backed the fund not just for its exposure to AI, but for Aschenbrenner’s judgment on AI’s development trajectory and the fund’s strategy of concentrated long positions in high-beta AI assets. Since its launch in 2024, the fund once posted returns of around 2200%, but recently suffered a sharp pullback amid declines in related stocks. Citrini noted that such AI-devoted investors are unlikely to turn bearish on AI solely because SK Hynix’s stock halved in six weeks. Even if an investor put $100 million into the fund at its inception and lost 90% of their assets in July, their holdings would still be worth roughly $230 million, thanks to the cumulative 2200% return. Citrini expects existing investors may continue buying the dip, and Situational Awareness is likely to secure the new capital it’s seeking. After fundraising is completed, the fund may unwind some short-term hedges and allocate the new capital to what it terms “the best buying opportunity since April 2025”; market makers that sold hedging instruments may also cover their related hedge positions simultaneously. Leopold is not necessarily in trouble; instead, he could potentially push AI stocks to form a temporary bottom through fundraising, hedge unwinding, and repurchases. However, if these AI-devoted investors, who still hold large unrealized gains, refuse to add positions on dips, related stocks may continue to fall sharply.
3 minutes ago
Goldman Sachs: Asian equity hedge funds suffer their largest monthly drawdown on record amid a sharp plunge in AI concept stocks.
Goldman Sachs’ report shows that Asian-focused equity hedge funds are facing their largest single-month drawdown on record, driven by a broad sell-off in AI-related stocks that has erased most gains from earlier concentrated bets on the sector. As of July 28, the average decline for Asian-focused fundamental long-short equity hedge funds stood at 18.6% for the month. In the first half of this year, these funds became among the world’s best performers thanks to early bets on AI hardware leaders including South Korean chipmakers SK Hynix and Samsung Electronics, with some posting returns exceeding 100%. However, the market has since seen a sharp reversal. Goldman Sachs noted that since hitting a year-to-date peak return of 40% on July 22, these funds have given back 21 percentage points of their YTD gains. The crowded AI trades that fueled the funds’ sharp rally in H1 are now the “key factor driving this month’s unusually large drawdown,” Goldman Sachs pointed out. Funds with higher AI exposure suffered heavier losses. Amid extreme market volatility, hedge funds have been locking in profits and reducing risk. Goldman Sachs data shows that as of July 27, Asian hedge funds have cut their exposures for eight consecutive trading days, with the “cumulative total exposure reduction over five days” hitting a record high. (Source: Jinshi)
In a blog post on Tuesday, Binance Exchange, the largest crypto trading platform by volume, announced the automatic conversion of several delisted tokens to USDC.
This action will be executed based on the average token to USDC exchange rate within the conversion period.
What Binance Exchange Users Need To KnowAfter delisting 10 tokens from its catalog, Binance said in a follow-up message that it would convert them to USDC automatically, enabling holders to access their funds. After the conversion happens, the exchange will credit the stablecoin equivalent of the affected tokens to users’ wallets by April 28, 2025. The tokens include:
Vai (VAI) Tornado Cash (TORN) OMG Network (OMG) Waves (WAVES) NEM (XEM) BarnBridge (BOND) Dock (DOCK) Mdex (MDX) Polkastarter (POLS) Pundi X PURSE (PURSE) Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
Holders of these tokens should adjust their trading strategies accordingly to prepare for the upcoming changes. Failure to do so by October 28 would see them automatically converted to USDC, effectively phasing out the affected tokens from the exchange.
“During the Conversion Period [between October 29, 2024 and April 28, 2025], users will not be able to view the above tokens in their Binance wallets,” Binance articulated.
In this regard, it is worth mentioning that the history of Binance’s tokens delisting often inspires volatility. For instance, the exchange delisted six altcoins around mid-August, causing double-digit price drops for PowerPool (CVP) and Ellipsis (EPX). These tokens also featured among the delisted assets.
However, Binance is not only removing several tokens but also adding new ones to its platform. One of the notable additions is Scroll (SCR), a zkRollup scaling solution for Ethereum.
As per the announcement, SCR will be listed on October 11, with pre-market trading for the SCR/USDT pair set to open. This move supports Ethereum’s scalability by enabling faster, more efficient transactions while maintaining security and decentralization.
“Binance is excited to announce the 60th project on Binance Launchpool – Scroll (SCR), a Bytecode-level compatible zkEVM Rollup,” an excerpt in Binance’s announcement read.
Read more: What are Crypto Airdrops?
With this listing notice, Binance becomes the first platform to list Scroll’s powering token. The exchange will also airdrop 55,000,000 SCR, representing 5.5% of the total supply. Airdrop farming will start on Wednesday, October 9. The participants must lock their BNB and FDUSD to receive the SCR tokens.
Key NotesBinance plans on temporarily suspending deposits and withdrawals on some networks.Users will not be able to deposit and withdraw tokens based on Ethereum networks during this period.Trading is not affected by the suspension. Cryptocurrency exchange Binance intends to briefly halt deposits and withdrawals for select tokens on May 7, 2025, starting around 09:45 (UTC), in order to accommodate the Ethereum network upgrade and hard fork, aiming to maintain optimal user experience
Binance disclosed that it plans on temporarily suspending the deposits and withdrawals of tokens based on the following networks “Ethereum (ETH), Arbitrum (ARB), Optimism (OP), zkSync Era (ZKSYNC), Base (BASE), Manta Network (MANTA), Starknet (STRK), Polygon (POL), Metis (METIS), Scroll (SCR), Cyber (CYBER), Metal DAO (MTL), Celo (CELO) and Worldcoin (WLD)”.
This temporary suspension is intended to support the smooth execution of the Ethereum network upgrade and hard fork. According to the announcement, only deposits and withdrawals will be impacted, while trading on the affected networks will remain operational. Binance also stated that it will manage all technical aspects on behalf of its users.
The crypto exchange added that once everything is “deemed to be stable”, the deposits and withdrawals for the select tokens will begin.
Hard forks typically result in the creation of a separate blockchain that runs alongside the original one. All current nodes and miners must transition to the new chain. Hard forks are used to improve the functionality of the network, such as fixing security vulnerabilities, introducing new functionalities, upgrading the cryptocurrency’s core system, or undoing previous transactions.
Past and Future Network Upgrades The crypto exchange will also suspend the withdrawals and deposits for the Optimism and Metal DAO networks on May 9. Once the update is completed, withdrawals and deposits will begin automatically without additional announcements.
Previously, the crypto exchange has temporarily disabled deposit and withdrawal functions across various networks to facilitate upgrades and hard forks. For instance, transactions involving tokens on the THORChain (RUNE) network were paused on May 1 at 14:00 (UTC) to support a scheduled upgrade.
Similarly, on May 5, at around 06:00 (UTC), Binance suspended deposits and withdrawals for tokens on the IPTA network to accommodate its network enhancement and hard fork.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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January 25, 2026
Scroll co-founder Ye Chen’s X account was hijacked in a sophisticated phishing operation where attackers posed as platform employees to target crypto industry figures.
The compromised account, which commands substantial influence among crypto leaders, began distributing fraudulent messages claiming copyright violations and threatening account restrictions unless users clicked on malicious links within 48 hours.
The hackers transformed Chen’s profile to mimic X’s official branding, updating the bio to reference Twitter and nCino while warning followers about security breaches.
Screenshot from XThe attackers flooded the feed with reposts from X’s verified accounts to enhance perceived legitimacy, then launched their phishing campaign via direct messages.
Sophisticated Attack Mirrors Growing PatternThe breach follows established tactics where hackers exploit trusted accounts to distribute malicious links disguised as urgent platform notifications.
Recipients received messages appearing to come from X’s rights management team, complete with fake compliance warnings and time-sensitive appeals processes designed to create panic and bypass security awareness.
Blockchain security researcher Wu Blockchain first identified the compromise and alerted the community to ignore any communications from the account.
The warning emphasized particular concern given Chen’s extensive network of high-profile cryptocurrency executives, developers, and investors who might trust messages from his verified account.
Scroll co-founder @shenhaichen's X account has been hacked and is currently sending phishing private messages impersonating X employees. This account has a large following among prominent figures in the crypto industry; the community and users are advised to be aware of the… pic.twitter.com/ctXk2G0bQm
— Wu Blockchain (@WuBlockchain) January 25, 2026 The attack represents the latest escalation in social media compromises targeting crypto industry leaders, in which hackers increasingly leverage delegated account access and expired domain registrations to bypass security measures, including two-factor authentication.
BNB Chain’s official account suffered a similar breach in October when hackers posted fake reward programs with phishing links after Binance co-founder CZ warned followers against clicking suspicious content.
The compromised account promoted fraudulent BSC token distributions, promising early payouts to users who voted on reward dates through malicious URLs designed to drain digital wallets.
Binance co-CEO Yi He’s WeChat account was also hijacked in December to promote meme coin schemes, with attackers conducting a coordinated pump-and-dump operation around the token MUBARA.
Two wallets created hours before the breach accumulated 21.16 million tokens before dumping holdings as retail traders flooded in, netting attackers approximately $55,000 while leaving later buyers exposed to price collapse.
Among other notable accounts hacked were ZKsync and Matter Labs, which were compromised in May through what the team described as “delegated accounts” with limited posting privileges.
Hackers published false claims about an SEC investigation alongside fake airdrop promotions, triggering a 5% drop in the ZK token price despite a prior 38.5% weekly rally.
The prominent crypto media company, Watcher.Guru also confirmed its account breach in March after fake Ripple-SWIFT partnership claims spread across connected Telegram, Facebook, and Discord channels through automated content bots.
The team suspects the compromise originated from a suspicious link containing unusual query strings shared in their Telegram group weeks earlier.
Record Theft Year Exposes Escalating ThreatsThe crypto ecosystem witnessed over $3.4 billion stolen in 2025, according to Chainalysis’s 2026 Crypto Crime Report, with North Korean state-backed hackers accounting for a record $2.02 billion across fewer but increasingly sophisticated attacks.
Source: ChainalysisThe Democratic People’s Republic of Korea now represents 76% of all service compromises, bringing cumulative DPRK cryptocurrency theft to $6.75 billion since operations began.
Personal wallet compromises surged to 158,000 incidents affecting at least 80,000 unique victims, triple the 54,000 cases recorded in 2022.
Address poisoning scams drove December’s single-largest loss, when one victim transferred $50 million to a fraudulent wallet mimicking their intended destination, while private key leaks resulted in $27.3 million stolen from multi-signature wallets.
Personal Security Breaches Surge Across PlatformsMost recently, Ubuntu developer Alan Pope warned that attackers are hijacking Snap Store publisher accounts by registering expired domains linked to legitimate developers, then pushing malicious updates to previously trusted packages.
The technique exploits automatic update systems and established trust signals, with at least 2 confirmed cases of wallet-stealing malware distributed through seemingly normal applications.
Given these growing, multifaceted attack vectors, Better Business Bureau officials are warning consumers about phishing campaigns that lock X users out of their accounts and are subsequently used for cryptocurrency promotions.
Kentucky journalist Jennie Rees described receiving direct messages from apparent colleagues requesting contest votes, only to find her account posting fake Audi purchase claims tied to crypto earnings after clicking the malicious link.
Read more 2025 Wrapped up: The highlights and what's next 2025 moved quickly, and at times, it felt like the year barely paused long enough to catch its breath.
Galileo upgrade is now live tldr Galileo adapts Scroll to Fusaka, enables support for the latest Solidity version 0.8.31. Reduces zkVM cycles by 50% through prover optimizations. Introduces a new fee structure that keep transaction fees low while implementing anti-spam measures, and prepares to migrate from l2-geth to l2-reth. Galileo,
How Ceno Achieves High Performance ZK Proving tl;dr Scoll just launched Ceno’s v0.1.0-rc.1 beta release. Ceno is a new high performing Risc-V zkVM capable of poving most Ethereum blocks. It uses a novel chip segmentation architecture for parallelism and GKR for non-uniformity. This results in significantly faster proving, smaller
Announcing the Security Subsidy Program for Scroll Builders Getting an audit doesn't mean you're safe. In fact, 80% of projects that launch bug bounty programs had already been audited, often multiple times by top-tier firms. Yet security researchers still find critical vulnerabilities in these "secure" projects within their first year.
ether.fi, a crypto neobank, is migrating its services from the Scroll blockchain to Optimism's OP Mainnet to leverage enhanced payment capabilities and enterprise-grade support.
ether.fi, a crypto neobank with $5.7 billion of total-value locked, said in an X post it’s migrating from the Scroll blockchain to Optimism's OP Mainnet.
The move aims to capitalize on Optimism’s OP Enterprise to enhance global payment capabilities, access established liquidity and users, and provide enterprise-grade support, according to the company’s blog post.
The migration is significant given ether.fi's substantial user base, boasting approximately 50,000 active cards, according to Cipher Research.
ether.fi offers a digital cash account and card product known as ether.fi Cash, which integrates DeFi features such as fiat-to-crypto flow, yield earning, and a non-custodial wallet.
Previously, ether.fi was hosted on Scroll, the 12th largest Layer 2 solution for Ethereum, with about $100 million of TVL.
Scroll’s SCROLL token is down 2.3% and Ether.fi’s ETHFi is down 3.6%.
This article was generated with the assistance of AI workflows.
Crypto-focused payment platform Ether.fi is shifting its Ether.fi Cash payment network from the Scroll blockchain to OP Mainnet. This transition will see nearly 70,000 active cards and over 300,000 accounts integrated into Optimism’s Superchain ecosystem within a few months. As Ether.fi prepares for a high-volume asset migration, company executives say the move aims to make its consumer applications more efficient and scalable under the new infrastructure.
OP Mainnet Ushers in a New Phase for Ether.fi CashEther.fi, renowned for its innovative restaking services, has been earning rapid recognition in the decentralized finance landscape. By 2024, the platform widened its offerings with Ether.fi Cash, making stablecoin spending and real-world card payments possible for users. Through Ether.fi, customers can either spend stablecoins directly or use staked assets such as eETH as collateral to fund real Visa transactions. The platform claims its cards alone now account for nearly half of all crypto-powered card transactions in the market.
Strategic Rationale for Network MigrationSelecting the right network—one that offers speed and deep liquidity—remains at the heart of every successful crypto payment solution. Ether.fi representatives emphasize that Optimism’s liquidity depth is better suited for this use case than Scroll’s ZK-rollup technology. Throughout the transition, Ether.fi will absorb all card transaction gas fees on behalf of users. The platform currently processes about $2 million in daily spending volume, underscoring the scale of its operations.
Technical and Operational Considerations in MigrationDuring the transition, Ether.fi will utilize support from OP Enterprise and adopt its shared codebase. Ether.fi Cash is recording around 2,000 internal swaps and an impressive 28,000 spending transactions each day, with these numbers reportedly doubling every two months. To ensure users don’t experience disruptions, the protocol is absorbing all transaction costs during the switch. Efficiency and capital effectiveness have been the guiding forces behind this network migration.
According to company data, as many as 3.6 billion transactions took place on the OP Stack infrastructure in the second half of 2025 alone. With Ethereum-based Layer 2 solutions expanding their market share at a brisk pace, the technical advantages and capacity of the Superchain ecosystem position Ether.fi to reach broader audiences at higher speeds.
As Ether.fi consolidates its presence on OP Mainnet, it will leave behind significant daily transaction volume on Scroll. This shift strengthens OP Mainnet’s standing in the ecosystem by integrating a high-volume, loyal user application, while Scroll is set to lose a considerable chunk of daily activities as a result.
Elsewhere in the Ethereum ecosystem, more projects are moving toward tried-and-tested infrastructures that offer mature liquidity and robust reliability over emerging technologies. On the user side, despite backend technical differences, the priority remains a seamless card payment experience without friction or delays.
The Ether.fi team explained that users won’t notice any changes in transaction fees during the migration, emphasizing that their long-term vision is to enable global, on-chain real-world payments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Both etherfi and Optimism described the transition as a long-term partnership.
Decentralized neobank and crypto card issuer etherfi is leaving Scroll for Optimism, taking with it millions of dollars in total value locked and monthly fees generated on Scroll, data shows.
In an X post on Wednesday, Feb. 18, etherfi said it plans to move its Cash accounts and card program from Scroll to Optimism’s OP Mainnet, migrating more than 70,000 active cards, roughly 300,000 user accounts, and nearly $160 million in TVL in the coming months.
With etherfi, Scroll’s own TVL is only around $188 million as of today, Feb. 19, per data from DefiLlama.
Top protocols by monthly average 1Y fees on Scroll. Source: DefiLlamaThe decision marks a clear break from Scroll, an Ethereum ZK rollup, where etherfi was the dominant consumer-facing app. According to data from DefiLlama, as of today, EtherFi Cash, the company’s crypto card and digital account product, accounted for roughly $13.2 million in annualized fees, and over $23,000 in the past 24 hours.
Scroll dApps by daily fees paid. Source: DefiLlamaFor comparison, Aave V3, the second-largest protocol on Scroll by annual fees, boasts only around $564,000 over the past year, meaning EtherFi Cash produced nearly 23 times more in fees.
Etherfi’s fees and TVL since launch in 2025. Source: DefiLlamaSince launching its Cash product in September 2024, the company says it has processed more than $265 million in card spend, positioning the service as one of the largest non-custodial crypto card programs currently in operation, the firm noted in its X post announcing the migration.
‘Long-Term Partnership’Per its post, etherfi is framing the transition as a “long-term partnership,” pointing to deeper liquidity, broader DeFi integrations and native stablecoin support on Optimism.
In commentary for The Defiant, etherfi co-founder Rok Kopp explained that Optimism “has been one of the pioneers of the L2 space and Ethereum scaling solutions more broadly, and the Superchain has powered many of the most widely used blockchain products in the world.”
Kopp added:
“We are excited to build on battle tested, cost efficient infrastructure we know we can scale effectively on. Working with the OP Labs team has been our pleasure, and we believe our collaboration can help propel the DeFi neobanking space to new heights”Optimism, for its part, also described the migration in a Feb. 18 blog post as a “long-term OP Enterprise partnership” aimed at scaling on-chain payments.
With its leading fee-generating dApp departing, Scroll now faces losing a big chunk of its revenue.
The Defiant reached out to etherfi and Scroll for comments on the move, but hasn’t heard back by press time.
The Ethereum Layer 2 network raised its L1 data cost scalars 1,280x over six days before rolling them back yesterday.
Users on Scroll, an Ethereum Layer 2 (L2) network, paid more than $50,000 in excess transaction fees over roughly four days after the team behind the project repeatedly raised the parameters that determine how much users pay for posting data to Ethereum, according to an analysis published by L2BEAT.
The overcharges stemmed from six manual increases to two fee multipliers on Scroll's gas price oracle, the smart contract that calculates the Layer 1 data portion of every transaction's cost. Each update raised the previous value by 2x to 10x, compounding to 1,280x the original baseline by April 5, L2BEAT said. On April 9, the team slashed both multipliers by 160x.
The baseline cost for all roughly 139,000 affected transactions would have been just $280. Instead, users collectively paid upward of $50,000, with automated bots accounting for the vast majority.
Scroll has not publicly addressed the findings at the time of writing.
Etherfi Cash bots, which are still running during the protocol's ongoing migration to Optimism, accounted for roughly $35,000, or 66% of the excess, per L2BEAT. Scroll's own oracle relayer paid approximately $5,200, with LayerZero, Succinct, and other bots making up the rest.
The issue was first flagged by a pseudonymous developer running a Succinct relayer, who posted on X that their transaction costs had jumped from $0.002 to over $20.
"Scroll was subsidizing L1 DA costs and is now correcting to sustainable pricing?" the developer asked. "And there's no users on Scroll except us, so we're paying full price for it?"
Crypto research firm Kairos Research noted that the fee spike appeared to coincide with etherfi's migration to Optimism. When etherfi was Scroll's dominant app, total daily transaction fees from its products averaged about $250. After the multiplier increases began on March 31, that figure jumped to roughly $16,000 per day.
L2BEAT clarified that the overcharges were not a sequencer issue, as the L1 gas prices reported by the oracle were accurate. The entire overcharge came from the multiplier increases, which went through a separate governance path involving the team's multisig wallet.
The episode raises the question of whether Scroll had been running fees below cost to retain users, a common practice among L2s competing for activity, and abruptly repriced once its largest fee contributor departed.
Scroll’s total value locked (TVL) sits at just $24 million, according to DeFiLlama, down 96% from its peak of $585 millon in October 2024.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
The governance overhaul comes on the heels of a fee controversy and the departure of the Layer 2 network's top revenue generator.
Scroll is proposing to dissolve its Security Council and slash contributor roles across its DAO, the latest in a string of operational shake-ups for the embattled Ethereum Layer 2 network.
In a forum post published Monday, Scroll contributor Juan outlined plans to transfer protocol admin control from the Security Council to a newly created Scroll Admin multisig, with the transition targeted to be completed within 10 days, pending the council's support.
The team framed the move as a cost-cutting measure, stating that the Security Council's expense could no longer be justified relative to its recent usage. They added that Scroll will work with stakeholders to identify a new council structure "better adapted to current market conditions."
Alongside the council dissolution, four DAO contributor roles, including the Accountability Lead, Accountability Operator, Marketing Operations, and Program Coordination positions, will be eliminated by April 30. A single Facilitator role operated by SEED LATAM will remain active through Q2 2026 to manage delegate operations and governance budgets.
The Operations and Accountability committees will shift to reduced capacity, with the post noting structures "remain in place and can scale back up as activity increases."
The governance restructuring comes at a turbulent time for Scroll. Just last week,users on the network paid more than $50,000 in excess transaction fees after the team briefly raised fee multipliers on Scroll's gas price oracle by a compounding 1,280x. The overcharges predominantly hit automated bots, including those still operating from EtherFi Cash's ongoing migration away from the chain.
EtherFi, Scroll's dominant consumer-facing app and top fee generator by a wide margin, announced in February that it would move its Cash accounts and card program to Optimism's OP Mainnet.
Scroll's TVL now sits at just $24 million, according to DefiLlama, a 96% decline from its October 2024 peak of $585 million.
The forum post states that the DAO "continues to operate and evolve" and encourages delegates to bring forward new proposals. But the combination of a collapsing user base and significant governance downsizing paints a stark picture for one of Ethereum's early zkEVM pioneers.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
Scroll has proposed a major overhaul of its governance structure. This includes dissolving its Security Council and transitioning protocol control to a Scroll-administered multisig. The move has already sparked concerns over decentralization and security.
The 13 April proposal also includes scaling back DAO contributor roles and reducing committee activity.
However, some community members warn that the changes could concentrate control and weaken existing oversight mechanisms.
Security Council to be replaced with multisig At the center of the proposal is the planned transition of protocol admin control from the Security Council to a Scroll Admin multisig. The change is expected to take place within 10 days, pending council approval.
The Security Council currently oversees critical protocol functions, including contract upgrades and governance safeguards. Under the new structure, these responsibilities would shift to a multisig controlled by designated signers.
Scroll said the move follows a review of the council’s cost relative to its usage, concluding that maintaining the structure is no longer justified.
The transition would cover key contracts, including the ScrollOwner, AgoraGovernor, and associated timelock contracts. Also, all changes will be executed transparently on-chain.
DAO roles scaled back as activity slows The proposal also outlines a reduction in DAO operations.
Several contributor roles — including marketing, program coordination, and accountability positions — are set to conclude by 30 April 2026.
The Operations and Accountability committees will continue in a reduced capacity, with the option to scale back up if activity increases.
Scroll said the DAO framework remains active, with delegates still able to propose and vote on initiatives.
Concerns emerge over security and decentralization The proposal has sparked debate within the community, particularly around its potential impact on decentralization and security.
Some observers noted that replacing a multi-member Security Council with a smaller multisig could increase reliance on a more concentrated group of operators.
Others suggested that the change could affect how the network is evaluated for security guarantees, particularly if oversight mechanisms are reduced.
There are also procedural considerations. The Security Council itself must approve the transition, meaning the proposal is not guaranteed to pass in its current form.
Also, L2BEAT, which tracks and evaluates Layer 2 networks, is expected to weigh in on rollup security models given its role in assessing them.
A shift toward leaner governance Scroll framed the changes as a move to better align governance with current operational needs, while maintaining the ability to scale structures back up as the ecosystem grows.
The team also indicated that a new form of Security Council could be introduced in the future.
Final Summary Scroll has proposed dissolving its Security Council and shifting protocol control to a multisig, alongside broader DAO restructuring. The move aims to improve efficiency, but has raised questions about decentralization, security, and governance oversight.
PANews reported on April 14th that Scroll has announced a significant proposal regarding the Scroll protocol and governance operations. The team proposes dissolving the Security Council and transferring protocol management authority to the Scroll Admin multisignature address, with the transition expected to be completed within the next ten days. Scroll stated that the Security Council's costs are no longer justified relative to its actual usage over the past few quarters, and resources should be better allocated to product development and growth. Scroll will collaborate with key stakeholders to find a new Security Council structure more suited to current market conditions.
Layer-2 blockchain Scroll looks to cut costs. (Clay Banks/Unsplash)Summary
Scroll is moving to dissolve its decentralized Security Council and reducing DAO staff to cut costs.The downsizing follows a financial hit after Scroll's top protocol migrated to Optimism, draining nearly $160 million in total value locked and $13 million in annualized fees.According to one report, Scroll artificially inflated its network gas fees by 1,280 for a few days after the exit, extracting over $50,000 in excess costs.The decentralized autonomous organization (DAO) behind Ethereum layer-2 network Scroll said it will propose a plan to dissolve its Security Council and transfer control of the network to an account managed by an internal team.
The proposal announcement comes two months after Scroll’s top fee-generating decentralized application (dapp), crypto neobank Ether.fi, moved to Optimism’s OP mainnet. That saw roughly 300,000 user accounts and more than $160 million in total value locked move away from the network.
In a governance update, a Scroll core contributor said the Security Council was simply too expensive. Scroll is laying off several contributors within the DAO and reducing the capacity of its operational committees. The handover is targeted for the next 10 days, pending support from the current council.
“After evaluating the Security Council’s cost relative to its actual usage over the past quarters, we believe continuation is no longer justified,” the post reads.
The project said all contract changes would be executed transparently and remain verifiable onchain.
Adding to the network's turbulence, a recent surge in Scroll's network fees appeared to be artificially manufactured rather than a sign of organic demand.
Over six days in early April, the network raised the amount it charges to publish data to the Ethereum mainnet by a factor of 1,280, creating the illusion of a massive spike in 30-day chain fee momentum, according to analysis from L2BEAT.
The adjustment forced users to pay over $50,000 in excess transaction fees for data posting that ordinarily would have cost roughly $280. The extreme, temporary repricing was rolled back on April 9.
Ether.fi’s migration moved around $13 million in annualized fees away from Scroll, according to DeFiLlama data, and trimmed the network’s TVL to around $23 million.
The decentralized organization behind the Ethereum-based Scroll network has announced a plan to dissolve its Security Council and transfer full control of the network to an internal team. The move comes on the heels of significant drops in both user activity and asset flows on the platform. In recent months, Scroll’s leading decentralized application, Ether.fi, departed with 300,000 users for the Optimism mainnet, resulting in a sharp $160 million outflow from Scroll’s total assets.
Major changes in governance structureUntil now, Scroll’s governance was overseen by a community-driven Security Council. However, the core team has argued that the council’s operating costs no longer justify its continuation, prompting a push toward a new management model. In a message to the community, the team noted that maintaining the current system incurs unnecessary financial burdens. As part of the proposed plan, many DAO contributors will see their roles eliminated, and the responsibilities of operational committees will be reduced.
With the Security Council’s approval, management transition to the internal team is expected to conclude within the next 10 days. The Scroll team emphasized that all decisions and updates to smart contracts will remain fully transparent and verifiable on-chain.
Fee hikes and user discontentEarlier this year in March and April, the Scroll network faced renewed attention after a sudden spike in transaction fees. According to independent analytics firm L2BEAT, Scroll briefly raised its data transmission fee by a staggering 1,280 times at the beginning of April. This dramatic technical adjustment led to seemingly extraordinary increases in 30-day aggregate on-chain fees. However, the team clarified that the spike was artificial and did not reflect organic user demand.
The temporary fee hike forced users to pay an additional $50,000 in transaction costs, whereas under normal circumstances, such activity would have totaled about $280. The inflated fees were rolled back to normal levels as of April 9.
Ether.fi migration deepens declineA significant blow to Scroll came with the departure of Ether.fi, a major decentralized finance (DeFi) application built on Ethereum. As Ether.fi moved 300,000 accounts and hefty transaction volume to the Optimism network, analytics from DeFiLlama show roughly $13 million in annual fees also left Scroll. This migration pushed the total value locked (TVL) on Scroll down to $23 million.
When comparing the Security Council’s recent operation and cost, the Scroll core team concluded, “We don’t think it makes sense to continue.”
Scroll’s structural overhaul, along with recent high-profile migration of apps and funds, have triggered concerns about the network’s future viability. It remains to be seen whether user and capital outflows will continue and just how effective the new governance model will prove to be.
Recent events have also sparked debate among community members about the trade-offs between security, decentralization, and operational efficiency on the network. Some users have voiced disappointment over the abrupt changes while others acknowledge the tough decisions required in challenging conditions.
Industry watchers point out that such governance shifts are not uncommon as decentralized projects mature and encounter new operational challenges. The Scroll team has pledged to maintain transparency throughout the transition process and to address community feedback wherever possible.
Besides the core governance transition, Scroll’s operational roadmap for the coming months will focus on stabilizing user engagement and rebuilding trust after the fee controversy and asset outflows.
Observers say the Scroll network’s next phase will be a key test of its adaptability, technological resilience, and ability to regain lost user and asset traction. Many in the blockchain ecosystem are watching closely to see how Scroll navigates its most critical period yet.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
May 28: Scroll co-founder Sandy Peng argues in a new article that the quantum computing threat to Bitcoin isn’t a physical hurdle—it’s a governance and coordination challenge, not a technical one. A March whitepaper from Google Quantum AI estimates breaking Bitcoin’s secp256k1 elliptic curve with an optimized Shor’s algorithm would require roughly 1,200 logical qubits; that’s nearly 20 times fewer than projections from five years ago. IonQ’s official roadmap targets 1,600 logical qubits by 2028, while IBM plans to launch its 2,000-qubit Blue Jay system by 2033. This puts the quantum threat timeline at roughly a decade, possibly even shorter. Attacks will unfold in waves. The most vulnerable targets are early P2PK-formatted Bitcoin addresses, where public keys are permanently recorded on the blockchain. This includes over 1 million bitcoins mined by Satoshi Nakamoto in Bitcoin’s early days—funds that can’t be moved to secure them because the private key’s holder is unknown. Additionally, a so-called “collect first, decrypt later” attack could already be underway: intelligence agencies don’t need to wait for full quantum computer maturity to exploit this, as they can simply store encrypted data now to decrypt it later once quantum tech advances. Once quantum computers are ready, unconfirmed transactions in the mempool will face real-time double-spend attacks within Bitcoin’s typical 10-minute confirmation window. Though NIST released post-quantum cryptography algorithm standards in 2024, migrating Bitcoin to these standards comes with steep costs: studies suggest network throughput would drop by 52% to 57%, transaction fees would double or triple, and storage requirements would rise significantly. This amounts to a “defensive downgrade”: costs hit immediately, while benefits are abstract and far in the future. That makes consensus near-impossible for the Bitcoin community, which took nearly two years to even reach agreement on the SegWit upgrade. By contrast, Vitalik Buterin has already rolled out an Ethereum quantum emergency roadmap that lets individual accounts switch to quantum-resistant signatures autonomously—no network-wide vote required. Peng warns Bitcoin won’t collapse to zero, but its survival path is narrower than optimists claim, and the quantum threat window almost exactly overlaps with the 10 to 15 years the Bitcoin community will need to build consensus. Early Bitcoin holders are advised to check their address formats and migrate promptly, while institutional investors should integrate a “post-quantum migration roadmap” into their due diligence frameworks.
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TLDR: A forged cross-chain message released $292M in unbacked rsETH due to a single-DVN bridge misconfiguration. Ether.fi pinned message libraries and raised DVN verification to a unanimous 4/4 threshold on all chains. weETH bridging will be deprecated on Scroll, Swell, Bera, zkSync, Mode, Blast, Morph, and Sonic by June. Ether.fi joins DeFi United and contributes 5,000 ETH to support coordinated cross-chain security response. Ether.fi has disclosed its full response to the April 18 rsETH exploit that affected Kelp DAO. A forged cross-chain message released approximately $292 million in unbacked rsETH during the incident.
No systems on the platform were directly compromised. The EtherFi Liquid vaults also had no direct exposure to rsETH.
The event exposed a critical vulnerability in DeFi cross-chain messaging infrastructure. This led the protocol to execute a protocol-wide security hardening across all 20 chains where weETH is deployed.
Three-Layer Security Hardening Deployed Across weETH Pathways The root cause of the exploit was a single-DVN configuration lacking redundancy. Ether.fi’s bridge had previously enforced two or more DVNs on all pathways. Still, the incident triggered a full review and three concrete hardening measures.
The first fix involved message library pinning on every weETH pathway. Ether.fi pinned the SendUln302 and ReceiveUln302 addresses into weETH’s OApp-specific configuration slot.
This blocked LayerZero’s multisig from swapping in a library that bypasses DVN verification. The fallback path has been fully closed across all chains.
The protocol then pinned its four-DVN set and raised the verification threshold to 4/4. Every inbound weETH message now requires attestation from all four DVNs.
A single malicious or unavailable DVN halts the message rather than being bypassed. LayerZero independently reviewed and confirmed the updated configuration.
Furthermore, the platform tightened per-route rate limits across all bridge contracts it controls. Each source and destination pathway now enforces a conservative inbound and outbound weETH cap.
These limits sit on contracts fully controlled by the protocol. They remain effective regardless of upstream bridge provider behavior.
Chain Deprecations and the Formation of DeFi United Beyond the immediate fixes, the protocol is evaluating a second independent bridge provider to reduce systemic risk. Chainlink CCIP and Wormhole are currently under consideration alongside LayerZero.
Cross-chain weETH messages would then require attestation from a quorum of providers. This move eliminates single-provider dependency entirely.
Following a systematic L2 risk assessment, ether.fi is deprecating weETH bridging on eight networks. Scroll, Swell, Bera, zkSync, Mode, Blast, Morph, and Sonic will be deprecated effective end of June.
To close the coordination gap in DeFi, ether.fi is joining the DeFi United collective. The coalition brings together Aave, Kelp DAO, LayerZero, and ether.fi.
Shared security standards and coordinated incident responses are its core focus. This approach ensures no protocol faces a cross-chain failure alone.
The EtherFi Foundation is contributing 5,000 ETH to a dedicated DeFi United relief vehicle. Other partners in the collective are also contributing alongside ether.fi. When future failures occur, the coalition aims for the ecosystem to respond as one.
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Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
4 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
4 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
4 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
4 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
