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Genesis Digital Assets, a bitcoin miner in which FTX’s Alameda Research invested more than $1 billion, is being converted into an AI data center business by new controlling shareholder SWI Group, the Wall Street Journal reported. SWI spent $500 million in June to buy a large stake and said on Oct. 12 it is raising 800 million euros, about $900 million, for upgrades and expansion. It plans to use Genesis sites in Texas, North and South Carolina and Sweden to supply computing power to large cloud providers, and to sell remaining Kazakhstan mining assets.

Star Xu: Hyperliquid's Matching Engine Is More Market Maker Friendly
OKX founder Star Xu said on the New Era Finance Podcast that Hyperliquid differs fundamentally from centralized order book exchanges in its technical design. While centralized exchanges process orders individually, Hyperliquid matches orders block by block and prioritizes cancellations within each block, allowing market makers to cancel orders ahead of takers. He believes this market maker friendly design explains why Hyperliquid's order book depth appears better than that of many centralized exchanges, while offering another approach for long-tail assets with limited liquidity.

Sui Foundation is investing $30 million in AI training data protocol DATA Network and will become its largest institutional holder. Existing holders include PIP Labs and DATA Foundation. DATA Network will be upgraded to run natively on Sui, its independent chain will be retired, and the existing DATA token will move to Sui one-for-one. The current network will keep operating until the migration is complete, and a detailed timeline will be released before the upgrade.

Liquid Network is running again, but peg-outs that convert L-BTC back to bitcoin remain suspended, with a reserve gap of about 603 BTC. Liquid said redemptions will not resume until reserves fully back all circulating L-BTC and security reviews are complete. A Sept. 6 Elements bug allowed unauthorized L-BTC creation and redemption. About 3,996 to 4,000 BTC left the federation reserve, then worth about $320 million. White-hat actors returned about 3,400 BTC on Sept. 7, leaving 598 to 603 BTC unreturned. As of Oct. 11, peg-outs remain paused. Blockstream CEO Adam Back said the 1:1 peg will ultimately be covered, with no date given.

According to monitoring by @EmberCN, two Ethereum Foundation-linked wallets sent 4,393 ETH, about $11.13 million, to Kraken about four hours ago. The wallets received 59,751 ETH from an Ethereum Foundation wallet 10 years ago, and 49,751 ETH of that has been moved to Kraken over the past decade at an average price of about $658.

RippleX and the XRP Ledger Foundation disclosed that a critical payment-engine overflow bug could have allowed an attacker to create spendable XRP beyond the network’s fixed supply using a specially crafted transaction. The issue, present in code dating back to 2015, was reported through the XRPL bug bounty program and fixed in xrpld 3.4.1 on September 25, with more than 80% of default validators upgraded that day.
Security researcher @Cayden_Liao said his team’s proof of concept could mint about 18 trillion XRP in a single transaction, roughly 184 times XRP’s intended 100 billion supply, and earned the program’s maximum $250,000 bounty. XRPL said it found no evidence the flaw was ever exploited on a public network.

Kyrgyzstan Shuts Down USDKG, South Korea Tightens Cross-Border Crypto Rules, China Plans a National Blockchain Network, Thailand Finalizes Crypto ETF Rules, and Hong Kong–Malaysia Explore Stablecoin Cooperation.
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Ledger said an unauthorized hardware implant was found inside an affected device, confirming physical tampering. The company said there is no evidence its own infrastructure, systems or services were compromised, while distributor CryptoBilis has suspended hardware wallet sales. Ledger advised affected users to avoid initializing unused devices and consider moving assets to wallets created with new recovery phrases. Earlier on-chain analysis estimated losses linked to the incident at more than $86 million.

X user Boblob alleged that two wallets exploited Papertrade’s pricing mechanism by using roughly $20 million orders on Hyperliquid to move ETH quotes by 10–20 basis points while holding much larger long positions on Papertrade. The HyperEVM-based perpetual platform reportedly uses the midpoint of Hyperliquid’s best bid and offer as its execution price, making it potentially sensitive to short-term BBO manipulation. Trader Rune noted that Papertrade’s own documentation lists BBO manipulation as an unresolved protocol risk. The allegations have not been independently verified, and Papertrade has not confirmed any losses.

Blockchain analytics platform Bubblemaps alleged that Pump fun influencer Ethan (@0xEthan) used linked wallets to buy tokens before promoting them and sell shortly afterward. An analysis of 49 token callouts found that suspected linked wallets typically bought ahead of his posts and began selling within an average of three minutes after the first callout, sometimes while Ethan was still publicly bullish on the tokens.
Bubblemaps estimated total profits and rewards of approximately $125,000, including $45,000 in trading profits and $80,000 in callout rewards. The wallet connections and earnings remain third-party estimates and have not been independently verified.

Michael Saylor :AI will amplify the scarcity of premium assets
In a September 28, 2026 Binance interview, Strategy Executive Chairman Michael Saylor described two inflation rates: CPI at only about 3% as machines make things cheaper, and the cost of capital — scarce assets the wealthy want — up 15% annually for six years, best proxied by the S&P. Robots can clean, drive and cook but cannot create more Palm Beach beachfront, another Picasso or more Bitcoin — scarce assets won't get cheaper; ordinary people should accumulate wealth.

Star Xu: How Did USDe Leverage Loops Trigger the "1010" Crash?
OKX founder and CEO Star Xu questioned Binance's promotion of USDe as a stablecoin on the New Era Finance Podcast. He argued that USDe, issued by Ethena, is effectively a "tokenized hedge fund" and that a delta-neutral strategy does not imply zero or low risk.
He further noted that Binance allowed users to borrow USDT against USDe, convert it into more USDe, and repeat the loop to increase yields, amplifying leverage and risk exposure along the way. In his view, this setup was a major cause of the cascading liquidations during the "1010" crash and represented a serious risk-control failure.

According to Bitcoin News, amid ongoing investigations into an estimated $86 million in wallet thefts linked to Southeast Asian reseller CryptoBilis, security researcher Cyber Scrilla discovered a fraudulent Ledger phishing website and application appearing at the top of Google Search, designed to trick users into submitting their 24-word recovery phrases. Google reportedly displays more than 1 million visits over the past 30 days. The alert follows a September investigation by cybersecurity firm Zscaler, which uncovered malicious Google ads impersonating Ledger and redirecting users to fake wallet-verification pages.

1. Polymarket Launches Protocol V2 with Full Contract Overhaul, Mainnet Switch on Nov 2 link
Polymarket Protocol lead Rajath Alex announced the launch of Polymarket Protocol V2, which fully rebuilds the Gnosis Conditional Tokens Framework (CTF) used since 2019. The V2 architecture unifies position token contracts into a single ERC-1155 standard, uses pUSD exclusively as collateral, and provides one unified exchange and router for all market types. Its modular design natively supports binary, atomic negative-risk, incremental negative-risk and combinatorial markets. It also introduces OracleAggregator enabling integration with multiple oracle sources including UMA and Chainlink, plus a native cross-chain bridging module. The official mainnet testing runs from October 5 to 30, with full migration for new markets scheduled for November 2, alongside the release of the Rust-based Data API V2.
2. Robinhood Chain Transactions Drop 42% Since Mid-September, DeFi TVL Rises 2% MoM link
From October 2 to 8, Robinhood Chain recorded an average of 6.2 million daily transactions, a 42% drop from 10.8 million during September 10–16 and a 20% week-on-week decline. Average daily active addresses stood at approximately 322,000, down 31% from mid-September. In the same period, on-chain spot trading volume reached $7.45 billion, falling 21% week-on-week, while average daily network fees were around $65,000, representing a 39% week-on-week decrease. Nevertheless, on-chain DeFi total value locked rose roughly 2% to $1.04 billion, and stablecoin supply edged up to about $1.1 billion. Robinhood has extended its wallet fee subsidy to December 31, continuing to cover network fees for token swaps exceeding $0.50 executed via Robinhood Wallet.
3. Aptos Foundation Proposes Cutting APT Staking Rewards to 2.6%, Capping Supply at 2.1B and Permanently Locking 210M Tokens link
The Aptos Foundation unveiled its tokenomics adjustment plan, proposing a governance proposal to cut the annual APT staking reward rate from 5.19% to 2.6%, raise gas fees tenfold, and set a hard cap of 2.1 billion APT on total supply. The foundation commits to permanently locking and staking 210 million APT, approximately 18% of the current supply. It will not sell or distribute these tokens and will rely solely on staking rewards to support operations. The foundation also plans to tie future ecosystem grants to performance metrics and explore APT buybacks using cash and future revenue. With the conclusion of the initial token unlocking cycle in October 2026, annual unlock volume is projected to drop by 60%. The foundation aims to gradually shift APT toward a deflationary state by reducing new supply, increasing transaction fee burns and enabling potential buybacks.
4. Pyth DAO Approves 100% Rule, All Revenue for PYTH Buybacks link
Pyth Network, an oracle network, released its Q3 2026 financial report. Its active annual recurring revenue (ARR) reached $11.49 million, up 86.5% quarter-on-quarter with a net ARR addition of $5.33 million in Q3, and the number of paying customers hit 276. Among its three core business segments, Pyth captured a 94.1% data share in the RWA perpetual contract market with a Q3 volume of $2.09 trillion. It provides pricing data for prediction markets including Polymarket and Kalshi, and partners with Exa to deliver structured market data for AI agents via MCP. In addition, Pyth became an external data distributor for Nasdaq Basic real-time US equities feeds. The PYTH DAO also voted to adopt the “100% Rule”, allocating all external revenue generated by protocol products to open-market buybacks of PYTH tokens, up from the previous one-third ratio.
5. StarkWare CEO Warns of Quantum Risks; Starknet Considers Independent L1 for Post-Quantum Upgrade link
StarkWare CEO Eli Ben-Sasson stated in a post that as breakthroughs in quantum computing and AI computing power draw near, blockchain security faces urgent threats. Networks need post-quantum cryptography via ZK-STARKs and crypto agility. He noted that while Starknet has its own post-quantum migration roadmap and is on track to achieve post-quantum readiness in 2027, as an L2 it currently heavily relies on the underlying security of Ethereum L1. Ethereum targets full L1 post-quantum capability by the end of 2029, and Bitcoin has yet to establish a timeline. Instead of waiting passively, Starknet is evaluating multiple options including “becoming an independent L1” to take control of its security upgrade schedule and build a base public chain resilient to quantum and AI risks.
6. Solana DEX Orca and Lending Protocol Loopscale Merge into Formation link
Orca, a decentralized exchange on Solana, and lending protocol Loopscale have merged and rebranded as Formation. Luke Truitt, co-founder of Loopscale, will serve as CEO. Formation will combine Orca’s trading infrastructure with Loopscale’s lending and investment vault products to deliver end-to-end services for emerging assets spanning issuance, financing and trading. It plans to expand into capital-intensive sectors including AI, energy, robotics and defense, ultimately granting these assets access to regulated US capital markets. Over the next 12 months, Formation will launch tools for asset issuers and new investment strategies. It has partnered with Figure, Shinhan Asset Management, Superstate, R3 and Securitize to facilitate asset market entry and distribution.
7. Aerodrome and Velodrome to Merge and Upgrade to Aero on Oct 22, Initial Supply ~2.11B link
Aerodrome and Velodrome will merge and upgrade into Aero at 08:00 UTC+8 on October 22, consolidating their liquidity businesses within the Ethereum ecosystem. Existing AERO tokens can be swapped for new AERO at a 1:1 ratio, while VELO tokens can be exchanged at approximately 1:0.044. veAERO and veVELO holders may upgrade to staking token sAERO, enabling cross-chain allocation of AERO incentives and claims to trading revenue from corresponding liquidity pools. The initial total supply of the new AERO is projected at roughly 2.11 billion tokens, with 94.5% allocated to Aerodrome holders and 5.5% to Velodrome holders. After the upgrade, emissions of the original AERO and VELO tokens will cease, and new AERO emissions plus conversion channels will go live simultaneously.
8. Arbitrum One Goes Live with USDG, Plans 100M ARB Incentive Boost link
Arbitrum One has natively launched USDG, the stablecoin issued by Paxos, and joined the Global Dollar Network. Fluid, Morpho, GMX, Maple, Kraken, Stargate and LayerZero are among the first batch of integrators. Partners of the Global Dollar Network can share yields generated by the USDG reserve assets held on the platform, and such revenue will be used to drive USDG adoption and project integrations within the Arbitrum ecosystem. Separately, a new governance proposal seeks to designate USDG growth as a strategic objective of ArbitrumDAO and add 100 million ARB to the DRIP incentive program, though the proposal has not yet been put to a vote.
9. USDC Integrated into Aave Market; Eligible Users May Borrow USDC Against BTC Collateral link
Circle’s USDC official announcement states that Aave markets have integrated Circle Mint’s Digital Asset-Backed Borrowing product. Eligible Circle Mint LLC customers may deposit BTC, mint Circle Wrapped Bitcoin (cirBTC), and borrow USDC via Arc or supported third-party lending markets on Ethereum. The addition of Aave expands the existing BTC-backed borrowing service previously available on Morpho. The relevant USDC is supplied by third-party market lenders, with loan-to-value ratios, interest rates and liquidation rules determined by the corresponding lending protocols.
10. Abstract to Shut Down on Dec 15; Igloo Reports Tens of Millions in Losses Over Two Years link
Consumer-focused crypto network Abstract announced it will wind down operations gradually and officially shut down the network on December 15, 2026. Users must migrate their assets via the Migration Hub or native cross-chain bridge before this date; funds left untransferred after the deadline will become inaccessible. Igloo, Abstract’s parent company, stated that operating an independent blockchain incurred excessive costs, compounded by insufficient on-chain liquidity, a constrained DeFi ecosystem and declining market demand, leaving Abstract unable to achieve sustainable product-market fit. Igloo also noted it has lost tens of millions of US dollars over the past two years sustaining Abstract’s operations and searching for a viable path to profitability. Following Abstract’s shutdown, Igloo will refocus its personnel and resources on Pudgy Penguins, Pudgy NFTs and PENGU.
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Vitalik Buterin: Without AI, Ethereum's Lean Roadmap Might Have to Wait Until 2040
Ethereum co-founder Vitalik Buterin said in an October 9 interview with Balaji Srinivasan at the Network State Conference 2026 that AI has become an important factor in advancing the Lean Ethereum roadmap.
Buterin said that given the roadmap's current goals and level of ambition, without AI, the work might have taken until 2040 or even 2050 to complete. He added that AI is now contributing to a significant amount of research and coding, substantially accelerating progress on the roadmap.

Jeff Yan: TradFi's Speed Arms Race Is Zero-Sum — and Even Negative-Sum
Hyperliquid Labs co-founder Jeff Yan said at DAS Asia 2026 on October 7 that he does not view Hyperliquid’s priority fee mechanism as “bribery.” Its purpose, he said, is to reduce advantages from low-latency infrastructure and make genuine trading alpha more important. Yan argued that the latency race in traditional finance — involving microwave towers and transatlantic fiber cables — is fundamentally zero-sum, and sometimes even negative-sum, because it creates little meaningful value. Hyperliquid aims to use priority fees to internalize these negative externalities, allowing traders to compete more fairly without spending heavily on low-latency infrastructure.

According to SoSoValue data, U.S. spot Bitcoin ETFs recorded $21.13 million in net inflows on October 9 (ET), with BlackRock’s IBIT attracting $22.38 million and Fidelity’s FBTC posting $3.58 million in net outflows. Spot Ethereum ETFs recorded $56.10 million in net outflows, marking their ninth consecutive trading day of outflows, all of which came from BlackRock’s ETHA.

Former Mt.Gox CEO Mark Karpelès said a Ledger Nano X hardware wallet he received from Malaysia had intact shrink-wrap packaging but contained a spy module hidden where the screen padding should have been, making it difficult to spot even after opening the casing. He shared comparison photos of the original circuit board and the implant, saying such implants have evolved from hand-soldered wiring into circuit boards that are easier to mistake for original hardware. Karpelès is requesting device photos from affected users to identify similar implants and advised following Ledger's official security guidance. Ledger has not been shown to have officially confirmed the module's functionality or any connection to recent CryptoBilis customer losses.