Cryptopolitan

New Delhi has become the focal point of the global artificial intelligence (AI) world as the India AI Impact Summit 2026 officially kicked off today at Bharat Mandapam, bringing together leading technology firms, international policymakers, and heads of state for five days of discussions on the future of AI.

India’s burgeoning digital economy and a young, tech-savvy population are making it a favored destination for investments in and innovations related to AI. 

The big names attending include Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Alphabet CEO Sundar Pichai, Anthropic CEO Dario Amodei, and Google DeepMind CEO Demis Hassabis.

Indian Prime Minister Narendra Modi is set to welcome them, highlighting India’s role as both a market for new technologies and a talent hub. 

Lalit Ahuja, CEO of ANSR, said that the summit is a massive validation of the market’s potential and that everyone is coming because India cannot be ignored.

India pushes to become a major tech hub

In the past few years, Modi’s government has asserted its vision of India as a global tech powerhouse. The nation has sanctioned $18 billion in semiconductor projects to expand its own supply chain and reduce reliance on imports. 

The Indian market also encourages products produced for the global business community. Apple, for instance, has increased its production in the country. In 2025, for instance, Apple shipped roughly 14 million iPhones in India, capturing a record 9% slice of the country’s smartphone market, according to new data from Counterpoint Research shared with TechCrunch.

The figure marks a significant jump from Apple’s 7% share in 2024, making this the iPhone’s best performance yet in India, which ranks as the world’s second-largest smartphone market by total units sold.

Venture capital investors are betting big on startups in India, while local stock exchanges have boosted initial public offerings. Neil Shah, a partner at Counterpoint Research, said that government support acts as a red carpet, allowing global companies to establish themselves, expand, and diversify their operations worldwide.

Backed by this support, leading global companies are set to announce significant investments in India at the AI Impact Summit. Artificial intelligence takes center stage at the event, focusing on three key areas for businesses: infrastructure, users, and talent. As demand for computing power grows, many tech firms are expected to unveil investments in AI infrastructure, particularly in data centers.

Amazon, Microsoft, and Intel had pledged last December to build their AI infrastructure and chips in India, underscoring that the country is positioning itself as a vital location for such projects. On the user side, India represents one of OpenAI’s key markets for ChatGPT.

Other AI chatbots, such as Perplexity, also compete for users, at times offering free access to data useful for training and improving service features. India’s lack of major domestic competitors also creates a large market for these AI products. 

Talent access is another big draw. “India is an AI talent factory,” said Tech Mahindra’s chief technology officer, Sham Arora. These centers also serve as hubs for offshore research, engineering, and product development. Over 60% of GCCs founded in the last two years are in AI, data, digital engineering, or product development, ANSR reported. Over 80% of the projected new GCCs for the next six to eight months are to be AI-led.

Companies expand AI leadership roles in India

India not only offers a destination for engineering talent, but more corporations are also seeking to fill senior leadership roles in AI. And companies are creating roles such as “chief AI officer” to direct and control how AI is developed and adopted. 

Ahuja of ANSR explained that the availability of resources and talent means that many of these roles are already being formed in India. This demonstrates that the country is not just a center of machine learning and code development but also a place where AI policy-making and AI leadership capabilities exist. 

With government support, global investment, and a growing pool of skilled professionals, India stands positioned as one of the most important players in the world AI landscape. India is now among the world’s fastest-growing technology markets, and this ambition is also emphasized by the AI Impact Summit in New Delhi. Leaders, innovators, and policymakers gather here to discuss opportunities, challenges, and the future of AI.

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The UK government is moving to tighten regulations on the use of artificial intelligence chatbots to better safeguard children against harmful and illegal content. 

Prime Minister Keir Starmer has unveiled a process to fill a legal void that allowed chatbot providers to operate outside of major online safety laws. It will force companies that make and run AI chatbots to actively clamp down on illegal content and ensure their platforms are safe for younger users. 

Now, the government claims it will change how the Online Safety Act is enforced and specify how chatbots must comply with the law. The regulation was designed much earlier in the process, but mainly adapted to the demands of social media platforms and public forums where people could post their content. Neither those who run private AI chatbots nor those who use them received equal coverage, and their responsibilities remain unclear. Starmer promised to close this loophole soon.

Chatbot companies need to adhere to the same legal obligations as other online companies, he cautioned, or be penalized. The government says this change must ensure that chatbot providers actively monitor their systems and block illegal material. In advance of his announcement, Starmer said no technology company would be exempt from the law.

The government also fears that treating AI chatbots differently from social media platforms could leave children vulnerable to harmful or inappropriate content. Officials believe that if AI chatbots are to reach their desired audience, particularly teenage and youth users, tougher protections are necessary.

New powers to tackle rapidly changing tech

In addition to filling legal gaps, the government will create new powers that will enable quicker action when risks emerge. Rather than waiting for Parliament to pass entirely new laws, regulators will respond to technology more quickly. 

This is a way to ensure that protections keep pace with the swift progress in artificial intelligence. AI tools are improving quickly and moving into new areas. As a result, risks can manifest suddenly, and regulators require flexibility to address them. 

Starmer recently pointed to the risks of harmful AI-generated content, such as cases where technology is being harnessed to create sexualized images of people without their consent. 

He called such uses unacceptable and said existing laws should be enforced against them. The government said better enforcement would force companies to design safer systems from the start. 

These could include protections built into chatbot software to identify and prevent illegal content before users see it. Technology companies are also set to shoulder responsibility for how their AI systems behave. 

That means they need to monitor outputs, enhance safety features to make systems safer, and respond quickly when faults are detected.

Government moves to protect children from harm

The clampdown on AI chatbots is part of the larger challenge of child safety on virtually any digital platform. The government is considering new actions that could further reduce risk. 

One suggestion in the works is a requirement that users be a certain age to access social media. Officials are also exploring how limiting features like infinite scrolling can encourage excessive screen time, as well as making it difficult for young people to disengage from harmful or addictive content. 

These changes could come after public consultations on children’s wellbeing online. Parents, educators, and safety experts are worried about the impact of digital platforms on young people’s mental health and the amount of exposure to inappropriate content. 

The government’s broader aim is to create a safer online environment where children can benefit from technology without being exposed to serious harm. 

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Coinbase stock rallied, spiking about 16% in a single session amid renewed optimism from retail cryptocurrency investors who have been accumulating Bitcoin (BTC) and Ethereum (ETH) during recent price weakness.

The stock’s rebound comes after a prolonged period of volatility for both crypto markets and Coinbase’s own share price. Coinbase’s CEO, Brian Armstrong, highlighted that many individual users continued to build up their Bitcoin and Ethereum holdings even as prices were soft.

The rally continued as retail customers either bolstered or held onto their Bitcoin and Ethereum holdings during the recent market weakness, signaling trust among regular investors. Shares of Coinbase finished at $164.32 in the last trading session, gaining $23.23 or some 16%, per market data from TradingView. 

The stock rose to $141 to open the day and continued to climb throughout the session, finishing close to its intraday high. Coinbase’s rise coincided with reports that retail investors were accumulating cryptocurrencies in the recent slide. Armstrong wrote that numerous users who bought more dropped or remained in the same position despite the market’s volatility. 

He referred to the trend as “buying the dip “: an investment strategy in which people buy investments after a price decline in anticipation of a rebound. Bitcoin and Ethereum accounted for most of that activity, according to him. These two cryptocurrencies typically produce the greatest trading volumes on the exchange. 

Armstrong also said that retail wallet balances in February were higher than in December despite price peaks and troughs. He alleged that many users displayed what crypto-lore scholars commonly call “diamond hands,” holding onto their assets rather than selling them during downturns. 

Analysts outline key price levels and targets

Market analysts have been closely watching Coinbase’s technical levels. A weekly chart for analyst Ace illustrates the stock testing major Fibonacci retracement areas, which traders use to identify potential resistance and support zones. 

They conclude that the next significant level of resistance is at $186.19. In continuation of the momentum, additional resistance levels could occur at $279.10, $365.48, and $426.98. But the overall chart remains corrective unless the stock rises above $186.19 in a big game-changer. 

The good news is that Coinbase remains above $125.81, which analysts view as maintaining a longer-term bullish structure. More than just technical analysis, dozens of Wall Street firms have updated prices for Coinbase. Bernstein analysts recently forecast the stock could reach $212, and, more optimistically, even $500 to hit a new all-time high.

Meanwhile, several brokerages have cut their price expectations while maintaining positive or neutral ratings. H.C. Wainwright set one of the highest targets at $350, while Barclays set one of the lowest at $148. 

Canaccord Genuity lowered its goal from $400 to $300. BTIG cut its target to $280. Benchmark cut its forecast to $267, and Goldman Sachs lowered its forecast slightly to $264. Other companies made comparable adjustments. J.P. Morgan lowered its valuation to $252, and Deutsche Bank revised it to $250. 

Rosenblatt and Needham lowered their estimates to $240 and $230, respectively. Baird revised its rating to Neutral with a target of $165, while Piper Sandler set its target at $150.

Earnings miss, and insider sales draw attention

After a stock rally over the past month and favourable trends for retailers in the retail sector, Coinbase’s most recent earnings report showed weaker-than-expected results. In the fourth quarter through December 31, the company posted a net loss of $666.7 million. 

The numbers lagged Wall Street expectations, adding another layer of complexity to the stock’s prospects. Armstrong has also recently sold over $100 million of Coinbase stock. He has sold approximately $500 million of his company’s shares over the last year. 

Insider sales, which don’t necessarily portend bad expectations — executives tend to sell shares for diversification or simply because they want to plan their personal finances — can pull in investors, it’s true, particularly in turbulent times. 

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Policymakers at Consensus Hong Kong, a major annual conference focused on blockchain, Web3, and digital assets, unveiled a series of initiatives to strengthen the domestic digital asset landscape.

Following the policymakers’ announcement, reports noted that the Consensus showed that, despite the overhyped, silly projects, companies are still finding real, practical value in the technology.

Hong Kong seeks to solidify itself as a hub for digital assets 

Hong Kong has displayed a growing interest in the crypto industry. To support this claim, reports noted that regulators in the region are actively fostering growth in the digital asset ecosystem through the introduction of a perpetual contract framework and the announcement that the first batch of stablecoin licenses will be issued next month.

In a statement, Jason Atkins, the chief commercial officer of crypto trading firm Auros, argued that “That clear direction gives many companies confidence to invest in Hong Kong and expand their operations.” 

Following his remarks, sources noted that financial market regulators, the Securities & Futures Commission and the Hong Kong Monetary Authority, indicated a readiness to collaborate with businesses and adapt their digital asset strategies. However, it is worth noting that the Special Administrative Region of China is still reviewing and approving activities and applicants.

Even so, Atkins noted that they are surveying companies on how to increase investment. “We’ve met with the SFC multiple times and talked with the HKMA at think tanks, panels, and groups where they genuinely want to understand how our businesses work and what we need to invest more in the city. This is very encouraging,” he explained. 

In this survey process, regulators have been actively engaged with industry players to identify the necessary conditions for business growth and operational success. This includes reviewing existing regulations to ensure they better reflect current market needs.

At this moment, several analysts weighed in on the situation. They argued that the regulators are considering ways to ease or modify certain rules for specific types of investors.

They also discovered that their move follows a growing trend in the crypto industry, in which traditional institutions are increasingly exploring the crypto space or adopting blockchain technology.

Several Individuals demonstrate a heightened interest in blockchain technology 

As cryptocurrencies become increasingly popular among individuals, sources reported that several panelists from significant firms such as Swift and Franklin Templeton admitted that they are either implementing or exploring blockchain technology to enhance operational efficiency. 

Following their statement, analysts noted that this scenario reflects the 2018 trend, in which institutions embraced blockchain technology while distancing themselves from Bitcoin. However, these organizations are now moving beyond trials to take concrete action.

At this point, Rodrigo Coelho, CEO of Edge & Node, predicted that the surge of traditional, mainstream organizations entering the blockchain space will be a defining story of this year.

When reporters reached out to him to clarify his argument, Coelho stated that firms are actively seeking to gain deeper insights into this industry. To underscore the intensity of the situation, he noted that these companies are seeking specialists to address complex challenges.

Another industry executive who commented on the topic of discussion is Shawn Chan from Singapore Gulf Bank. He noted that these systems are more efficient for transferring value.

Despite outstanding international regulatory challenges, the industry executive expects blockchain adoption to grow among companies over the next decade.

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Changpeng Zhao (CZ), co‑founder of the global exchange Binance, warned that insufficient privacy on blockchain networks remains a major barrier to widespread adoption of crypto payments.

The same holds for the transparency of onchain transactions, the executive said, making it challenging for businesses and institutions to comfortably use cryptocurrencies as routine payment options for salaries, suppliers, and other expenses.

The idea behind Bitcoin and Ethereum is transparency. The transactions are recorded in a public ledger accessible to everyone, though wallet addresses can’t be directly linked to names; they are often traceable and can be connected to individuals or companies over time.

This openness, CZ argues, poses quite real concerns for companies. He cited a straightforward case: If a company pays its staff members in crypto directly onchain, anyone who visits the company’s wallet address might see how much each worker receives. 

Salary data is considered private in traditional banking systems. That same information can be made public on public blockchains. CZ also expressed concern over personal safety, speaking earlier on with investor Chamath Palihapitiya, the host of the All-In Podcast. 

If everyone can instantly “see” how much crypto a person has or gets, they could be a target for theft, scams, or even physical threats. For A-list personalities or corporate chieftains, this visibility can become a big issue. 

These worries are all in lock step with a broader discussion in the crypto community. Cryptocurrency’s early proponents were inspired by “cypherpunk” thinkers, the movement that called for strong encryption and privacy to shield people from threats of surveillance and control. 

Bitcoin was initially conceived as a peer-to-peer digital currency that could be transferred without the use of banks or other intermediaries. Privacy was not optional for many early adopters; it was a foundational principle.

Businesses fear losing trade secrets on public blockchains

Some industry professionals agree with CZ’s position. Avidan Abitbol, formerly a Business Development Specialist for the Kaspa cryptocurrency project, has argued that companies will hesitate to fully adopt crypto and Web3 systems if they cannot keep their transactions confidential. 

He points out that transaction data can reveal more than just payment amounts. It may expose information about supply chains, partnerships, client relationships, and overall financial activity. 

For example, if a competitor studies a company’s blockchain activity, they can estimate revenue trends, identify key business partners, or track major deals. This level of transparency can put companies at a disadvantage during negotiations. It could also increase the risk of corporate theft or targeted scams. If attackers can see large transfers or identify patterns in payments, they may use that information to plan phishing attacks or other types of fraud. 

Growing AI threats make blockchain privacy more urgent

The rapid pace of artificial intelligence’s advancement is just the latest twist in the story of privacy. Eran Barak, the former CEO of privacy-focused technology company Shielded Technologies, previously said that AI systems will allow hackers to focus more on publicly available data, combining files and information as they go. 

Centralized servers maintaining useful content are already attractive targets for cybercriminals, Barak said. As AI tools evolve over the years, they will be equipped to sift through multiple sources of information for clues, connect the dots, and predict likely outcomes. With publicly available, permanent blockchain data, AI can scan large volumes of transactions to identify high-value targets. 

So, for instance, an AI system could observe wallet activity, identify repeat payments, and estimate how much crypto a company or individual controls. Eventually, that could lead to intricate financial profiles without direct access to private accounts. Barak claims that as AI capabilities grow, onchain privacy technologies will become the new normal and will be even more important than ever before. 

The goal of these technologies is to hide transaction details while still allowing blockchains to verify that payments are valid. A subset of blockchain projects is already experimenting with privacy-improvement tools, such as zero-knowledge proofs and other cryptographic techniques. 

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Europe clapped for the words. Europe did not clap for the policies. That was the mood in Munich in 2026 when Marco Rubio stood on stage and tried to calm a room that has been tense for a year. People listened closely. They remembered what happened there in 2025. Nobody forgot.

Back then, JD Vance went straight at Europe. He said Europe was walking away from shared values. He criticized how governments handle democracy, migration, and free speech.

The speech hit hard. Many policymakers across Europe are still irritated about it. That memory was sitting in the room before Rubio even spoke.

Rubio tells Europe the alliance still stands

Rubio kept his message simple. He said the United States is not walking away from Europe. He said America wants Europe to stay strong. He brought up the two world wars. He said those wars prove the destinies of the United States and Europe are tied together.

German Foreign Minister Johann Wadephul spoke to reporters on the sidelines. Johann said Rubio reassured leaders that the partnership between Europe and the United States is still in place. He admitted there are issues to sort out. He said both sides succeeded in the past and must deal with new threats in the 21st century.

Still, not everyone sounded relaxed. A senior European minister in the room said Rubio is the best option available from this administration. The same minister said the transatlantic relationship is not what it used to be.

Another European minister allegedly said if something breaks, it is hard to fix. He said Rubio offered a hand instead of an insult, but nothing fundamental has changed.

Some officials even said Vance’s 2025 speech was easier to handle because it was so aggressive. It pushed governments in Europe to close ranks fast. Rubio’s softer tone made things less obvious. The disagreements are still there. They are just packaged differently.

Leaders watch actions on Ukraine, Greenland, tariffs, and Hungary

Rubio skipped a meeting with European leaders that was expected to focus on Ukraine. NATO Secretary General Mark Rutte defended that decision.

Mark said Rubio had other important duties. He said the United States manages global responsibilities, not only Europe. He said he understood the scheduling conflict.

The Munich conference now works like a yearly checkup for the transatlantic relationship. This year, it happened only weeks after President Donald Trump, the 47th president who won the 2024 election, threatened military action to seize Greenland from Denmark, a NATO ally. He later stepped back. That moment followed the tariffs Trump placed on European countries last year. It also followed his support for Eurosceptic candidates in recent EU elections.

One senior EU diplomat said Rubio’s real message was not just in his speech. The diplomat pointed to Rubio’s visit to Slovakia on Sunday and then to Hungary. Both governments often clash with Brussels. That travel plan raised serious questions across Europe.

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India is opening the India AI Impact Summit 2026 at Bharat Mandapam this week, putting New Delhi at the center of the world conversation on artificial intelligence.

It is the first of its kind to be hosted in a developing nation, which takes place from February 16 to 20. Prior summits in South Korea, France, and the United Kingdom focused on safety issues.

The summit is organized around three ideas: People, Planet, and Progress. Alongside policy discussions and research sessions, a massive trade expo brings together more than 300 exhibitors from India and over 30 other countries. The expo spans more than 10 themed sections covering fields like health, farming, and education.

A room full of world leaders and tech chiefs

The importance of the summit is highlighted by the guest list. Senior government officials and more than 20 heads of state have personally attended. At the personal request of Prime Minister Modi, French President Emmanuel Macron will arrive on February 17 and is expected to remain till February 19.

Prime ministers from Bhutan, Greece, Finland, Spain, and a number of other countries are also in attendance, along with Brazilian President Luiz Inácio Lula da Silva.

Representatives from the leading tech companies included Sam Altman, CEO of OpenAI, Sundar Pichai, CEO of Google, and representatives from Anthropic and DeepMind. India has the potential to become a “full-stack AI leader,” said Sam Altman.

Seven theme groups, each co-led by a delegate from a developed and a developing nation, form the foundation of the summit’s working agenda. It is anticipated that these groups would generate specific recommendations on topics like as applications in certain industries, reliable AI tools, and shared computing infrastructure.

India’s own AI push

India is arriving at this summit with real momentum behind it. With the government’s IndiaAI Mission, the country has been building up its data infrastructure, bringing thousands of graphics processing units online through public-private partnerships, and shortlisting 12 teams to develop homegrown large language models.

Officials say AI is the next significant layer of India’s digital infrastructure, a logical progression of initiatives like India Stack, Aadhaar, and UPI, which already serve more than 1.4 billion people.

India’s size and unique requirements are reflected in the real-world applications on exhibit at the summit. AI techniques are being used in healthcare to enhance remote diagnosis, increase telemedicine services, and forecast disease outbreaks in remote places where access to physicians is still restricted.

AI predicts crop yields, controls soil and water consumption, and detects insect risks early in the agricultural industry, which employs hundreds of millions of people. Shared infrastructure, according to organizers, may make comparable instruments more affordable for small-scale farmers. Productivity increases of 20 to 30 percent have already been demonstrated in pilot operations.

A call for shared AI resources

A “global AI commons” is an open, shared repository of AI tools, datasets, computing resources, and ethical norms that was proposed by Abhishek Singh. Singh argues that underdeveloped countries would keep buying and using technology created by others, with no say in how it works or what principles it upholds.

Singh wants to stay linked to the rest of the world and preserve international collaboration without being dependent on other influences.

Satyamev Jayate, the Indian national slogan, which translates to “truth alone prevails,” was the basis for the summit’s motto. With this framing, the country is not just acting as a host but also as a link between the many nations that are still trying to create themselves and others that are already developing AI.

The summit signals India’s intent to lead the “Global South” in demanding a seat at the table, ensuring that the future of AI is defined by shared infrastructure rather than digital dependency.

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A financial company wants to create six new funds that would allow everyday investors to put money on who wins the 2028 elections, through the same brokerage accounts they already use to buy stocks.

Roundhill Investments, a company known for building investment products, has filed paperwork with the Securities and Exchange Commission to launch the funds. If approved, the products would be a first of their kind, turning election predictions into tradable assets.

New ground for ETFs

The six funds are not like standard funds that own bonds or equities. Three would pay out if Democrats win, and three would pay out if Republicans win. Each pair covers a different race including the presidency, the Senate, and the House of Representatives.

These funds would primarily invest in event contracts whose payouts depend directly on which party wins the specified election. Shares in the winning fund would converge toward $1 per share if the correct party wins, while shares in the losing fund could drop to near zero once results are certified. Typical investment funds don’t deliver binary, all-or-nothing outcomes like this.

Each fund’s party alignment and specific race are clearly indicated in its name and proposed ticker symbol, following a consistent pattern: “RED” for Republican and “BLU” for Democratic, paired with “P” for President, “S” for Senate, and “H” for House.

The program builds on recent advancements in political wagering. The CFTC dropped its plan to ban political betting exchanges in February 2026. Authorities halted attempts to outlaw websites that previously placed wagers on election outcomes.

Michael Selig, the CFTC chairman, stated that the previous approach had gone too far in blocking customers’ ability to do what they wish. He told his staff to create more detailed rules that would allow new goods while preserving the required protections. Financial firms are already investigating solutions that connect elections and investments as a result of this shift.

Risks are front and center for investors

Eric Balchunas described the idea as “potentially groundbreaking” on social media. He noted that while election betting into regular brokerage accounts could pull in a much larger number of users, wider access also raises concerns. However, critics question whether people will make impulsive bets instead of taking time to think things through.

There is also an unusual twist to how these funds are structured. While they purchase contracts tied directly to the 2028 election outcomes, the funds themselves do not terminate afterward. Instead, they’ll roll over and start betting on the 2032 cycle, giving investors a way to stay in the game across multiple elections.

Roundhill’s idea might bring in way more everyday investors than the prediction markets we have now. Since these funds would just keep rolling over to the next election cycle, you’re locked into long-term political and regulatory uncertainty for years.

The filing warns that the rules could change at any time. Regulators could still step in and restrict or outlaw these contracts. The company advises anyone who is uncomfortable with that uncertainty to avoid these products.

The SEC might be the first to allow large amounts of money to be wagered on politics through legal channels if it accepts these funds. Critics fear that the funds may incite reckless speculation or sway public opinion on election outcomes.

The SEC now has to review the application and decide whether to approve it. Whatever the agency decides, the outcome is expected to set the tone for whether other financial firms follow with similar products of their own.

If approved, it’ll show how far they’re willing to let investing and gambling on elections mix. That could easily lead to more impulsive bets and possibly shape how people feel about politics, while also kicking off a bigger wave of creative financial products that connect markets with real-world events.

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An Israeli national was arrested in Dubai in connection with the killing of a Russian crypto figure and his wife. The authorities continue to unravel a case that has drawn attention from the global crypto community.

Michael Greenberg, also known as Mike Green, was reportedly detained in the United Arab Emirates (UAE) about three months ago. He is described as a private investigator based in Thailand. However, Green is not suspected of carrying out the killings of Roman Novak and his wife Anna but is alleged to have had some involvement. 

Israeli linked to suspects in UAE crypto killings

According to reports, Greenberg is under scrutiny for having ties to eight individuals already arrested in the case. Russian investigators reportedly found some crucial information on the suspects’ mobile phones that eventually led to his arrest in Dubai.

Novak, a Russian national, had allegedly raised $500 million through a fraudulent crypto application before going on the run. He had previously been convicted in 2020 in St. Petersburg for fraud linked to investment and crypto projects. Novak got a sentence of six years in prison. However, after his release in 2023, he moved abroad and reportedly carried on with their fundraising activities.

Russian authorities said Novak and his wife were reported missing after their relatives were unable to contact them. Reports suggest that the couple’s driver last saw them on Oct 2 2025. He allegedly dropped them near a lake in the Hatta area close to the Oman border. The meeting was described as a meeting with potential investors.

The couple was lured under the pretext of an investment meeting to a rented villa. The alleged offenders then attacked the couple as they failed to provide access to their crypto wallets. Investigators believe that the suspects discovered the wallet was empty which led to the couple being allegedly killed and dismembered. Their remains were reportedly found on Oct 3.

Russian and Emirati authorities are said to have traced the suspects’ movements using surveillance footage and phone signals. They tracked them in Oman and later in South Africa before disappearing on Oct. 4.

‘Wrench Attacks’ rise over crypto holders

This massive case is unfolding when the global crypto community is witnessing rising violence against holders and builders. Law enforcement agencies across different countries have reported an increase in so-called “wrench attacks.”

In May 2025, masked assailants attempted to abduct family members of the chief executive of Paris-based crypto exchange Paymium in broad daylight. Earlier in 2025, David Balland, co-founder of hardware wallet maker Ledger, was abducted in France. His partner also got captured in a ransom attempt involving crypto, but police managed to rescue the pair.

Other incidents have been reported in France, Italy and the United States. Individuals linked to digital asset holdings were allegedly targeted for extortion or kidnapping. As some crypto transactions can be pseudonymous on-chain, enforcement officials mention that physical threats have emerged as a new tool for criminals seeking access to digital wallets.

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Hollywood organizations are now pushing back against ByteDance’s Seedance 2.0, which they have described as a tool for copyright infringement. Paramount Skydance has become the latest company to issue a cease-and-desist order to ByteDance, the parent company of video streaming platform TikTok, over the generative artificial intelligence model.

ByteDance launched Seedance 2.0 earlier this week, with the updated model currently available to Chinese users of its Jianying app. While the company says it would soon be available to the global users of its CapCut app, the application has since drawn criticism over its ability to create videos using the likeness of real people as well as intellectual property owned by studios.

Paramount Skydance sends cease-and-desist letter to ByteDance

According to Paramount Skydance, ByteDance is engaging in what it calls a ‘blatant infringement’ of its intellectual property with its Seedance video and Seedream image generative AI platforms. The company alleged that the Chinese technology company is illegally using its IP, naming several characters and moves, including Dora the Explorer, South Park, Star Trek, The Godfather, and more. The company sent the letter on Saturday, asking ByteDance to discontinue the alleged infringement.

The letter was sent from Gabriel Miller, the intellectual property head of Paramount Skydance, and was addressed to ByteDance CEO Liang Rubo. In the letter, Miller mentioned that much of the content that the Seed platforms have been producing contained depictions of famous characters and franchises of Paramount’s. He noted that these materials are protected under copyright law, trademark law, and the law of unfair competition.

Miller added that the content in the AI-generated images and videos produced by ByteDance platforms is often indistinguishable, both visually and audibly, from Paramount’s copyrighted characters and stories. He noted that Paramount’s characters such as “South Park,” “SpongeBob SquarePants,” “Star Trek,” “Teenage Mutant Ninja Turtles,” “The Godfather,” “Dora the Explorer” and “Avatar: The Last Airbender” have “all been repeatedly infringed by the Seed Platforms’ production and subsequent public performance and distribution of these images and videos.”

The intellectual property head also mentioned that the recent release of the Seedance 2.0 video generation tool has seen ByteDance not only continue its infringing activities, but it has now become more prevalent, and the unlawful outputs are now more widely released. In the letter, Paramount asked ByteDance to prevent violations of its intellectual property rights by ensuring that its content is not used or created by ByteDance or the Seed Platforms going forward, and remove all infringing instances of Paramount’s content from ByteDance’s platforms and systems.

Hollywood groups blast ByteDance and Seedance 2.0

Paramount Skydance is not the only studio that has issued a cease-and-desist order to ByteDance since the release of Seedance 2.0. According to a previous Cryptopolitan report, Disney sent a letter to that effect on Friday, noting that the company is making its AI platform a pirated library of Disney’s copyrighted characters and franchises. “ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable,” David Singer, a partner at Jenner & Block, wrote on behalf of Disney.

Charles Rivkin, CEO of the Motion Picture Association, also issued a statement demanding that ByteDance cease its infringing activity. “In a single day, the Chinese AI service Seedance 2.0 has engaged in unauthorized use of U.S. copyrighted works on a massive scale,” Rivkin said. He noted that by launching a service that operates without safeguards against infringement, ByteDance is disregarding established copyright law that protects creators and facilitates millions of American jobs.

The Human Artistry Campaign, an initiative backed by numerous Hollywood unions and trade groups, has also criticized ByteDance and Seedance 2.0, calling it an attack on every creator around the world, with SAG-AFTRA saying it stands with the studios in condemning the blatant infringement enabled by ByteDance’s new AI video model.

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The Indian police have announced the arrest of six individuals in a week-long crackdown across the country. According to local reports, the crackdown, which ran from February 7 to 13, targeted individuals carrying out different kinds of fraudulent activities, including investment fraud, loan app fraud, and part-time jobs scams.

According to the statement released by the Indian police, the crackdown was carried out with the help of investigators after they made trails of several illegal funds across different states, including Maharashtra and Andhra Pradesh. The force also said it secured refunds worth about Rs. 16.9 lakh ($18,673) to victims through court orders. According to the police, the arrested individuals have been processed in court for bail hearings, while others are still being held in police custody pending the conclusion of investigations.

Indian police apprehend six individuals in latest crackdown

In the statement released by the Indian police, officers attached to the force travelled to Kakinada in Andhra Pradesh and arrested Gummadi Rambabu for acting as a mule account holder and facilitating the movement of illicit funds. The victim in this case said he was approached by one of the members of the network on Facebook. He claimed the person presented the crypto investment scheme and explained how it worked in detail. After days of discussion, he agreed to invest.

The victim was added to a Facebook group titled AZ70 Market Radar Station, where he said administrators offered stock tips and investment training. Members of the group also plastered screenshots showing their profits from the crypto investments made in the group, another move to entice the new members added to the group. The victim claimed he was provided a bank account to transfer Rs. 5.20 lakh into, which was coincidentally an account owned by the accused.

In another case, the Indian police said it arrested Santosh Chandra Kant Gaikaward in Mumbai for his role in a large-scale investment fraud that targeted victims locally. The victim claimed he was added to a WhatsApp group after the group initiated contact and was persuaded to invest through a trading application, which they falsely claimed had been duly registered with the appropriate federal agency. He was also shown a fabricated profit from crypto investments, a move that enticed him.

Police urge residents to be cautious online

In another separate investment fraud case linked to a WhatsApp group named Dream Chasers Together 371, three accused from Bhiwandi in Maharashtra were arrested for acting as mule accounts to transfer funds gotten from crypto investment scams. The individuals were identified as Momin Arham Rais Ahmed, Mohd Qais Mustaque Shaikh, and Momin Hina Imran Ahmed. The complainant was initially allowed to withdraw at first to build trust before being defrauded of over Rs. 65 lakh.

Police also arrested Katravath Nithin from Mahabubnagar in connection with a loan fraud application. The victim was lured through Instagram by fraudsters posing as representatives of loan companies. He was asked to share personal and banking details before being asked to pay about Rs. 2 lakh under the pretext of security deposits and processing charges. Investigators discovered that the funds were moved through several accounts owned by the criminals before being transferred into crypto and sent out of the country.

Meanwhile, officials of the Indian police have warned the public to exercise caution while trying to make money online. They urged residents to refrain from responding to unknown profiles or phone numbers, especially those acting overly friendly. In addition, the officials also warned residents to avoid sharing personal information and accessing crypto investment platforms through their official websites and to report suspected fraud immediately to the nearest police station.

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Senator Elizabeth Warren and Senator Andy Kim have both called for a review into the $500 million stake made in the Trump-linked crypto project World Liberty Financial by a UAE government-linked entity. The democratic Senators issued a letter to that effect to Treasury Secretary Scott Bessent to look into the issue.

According to the letter, the Senators want Bessent to evaluate whether the reported stake in the Trump-linked project warrants a national security review. The Senators, who are both members of the Senate Banking Committee, asked Bessent to determine whether the Committee of Foreign Investment in the United States (CFIUS) should look into the deal, per the letter. CFIUS is an interagency panel overseen by the Treasury that looks into foreign investments for national security risks.

Senators Warren and Kim want to review UAE stake in WLFI

The deal was reported by the Wall Street Journal last month. The news outlet mentioned that G42, a company backed by Sheikh Tahnoon bin Zayed Al Nahyan, the national security adviser and manager of the largest sovereign wealth fund in the UAE, acquired a 49% stake in World Liberty Financial days before the second inauguration of Trump in January 2025. The deal was executed through an entity called Aryam Investment 1 and was signed by Eric Trump.

The deal required an upfront payment of $250 million, with about $187 million of the entire figure directed towards Trump family entities and at least $31 million to firms affiliated with the family of Steve Witkoff, Trump’s special envoy to the Middle East and a co-founder of World Liberty Financial, the report said. President Trump has denied knowledge of the investment. “My sons are handling that, my family is handling it … I have all I can handle right now with Iran and with Russia and Ukraine,” Trump said to reporters.

In the letter, the Senators asked whether CFIUS had already reviewed the transaction and made any recommendations to the president about it. They noted that the CFIUS should have been mandated to review transactions that could give foreign governments access to sensitive technology or personal data. The letter pointed to the fact that World Liberty Financial says it collects personal information from users, questioning whether the UAE or China could gain access to the data.

Probes trail UAE’s $500 million stake in WLFI

The letter also mentioned that the deal would see WLFI give up two board seats to senior executives who hold key positions at G42. The Senators also cited longstanding United States intelligence warnings that G42 may have been involved in the provision of technology to assist China’s military. The company was accused of developing a surveillance app that was developed as a messaging app. In addition, G42 has faced scrutiny over its ties to Chinese firms, including Huawei and Beijing Genomics Institute.

However, the company said it had divested from the Chinese companies since early 2024. The CFIUS request adds to a growing list of probes that have been sought since the deal was announced. Last week, Rep. Ro Khanna, ranking member of the House Select Committee on Strategic Competition with China, launched an investigation demanding documents and answers from WLFI co-founder Zach Witkoff by March 1.

In the letter, Khanna focused on whether the investment may have influenced US export policy on advanced AI chips after the Trump administration approved a plan to give the UAE access to 500,000 of the most advanced AI chips per year. Bessent has also been grilled over WLFI at a House Financial Services Committee hearing last week, where he was asked to pause a pending Banking charter application tied to the firm. Senators Warren and Kim have given Bessent until March to respond to their letter.

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The European Central Bank made a significant move to strengthen the euro’s position in international banking. This bank is making its emergency loan program available to central banks throughout the world.

On February 14, 2026, the ECB’s senior decision-making committee announced adjustments to the EUREP, which provides euros to other central banks during times of financial market turbulence.

Global access replaces limited regional program

Before this change, only eight countries near Europe could use this program. These included Romania, Hungary, Albania, and Montenegro. Now, almost every central bank in the world can apply to join.

The only banks excluded are those connected to money laundering, funding terrorists, or facing international penalties. Each bank that gets approved can borrow up to 50 billion euros. They need to put up good-quality euro bonds from European governments as security for the loans.

The new rules start in July 2026, and banks will have full access by the third quarter. This is much more money than banks could borrow before.

The ECB also dropped an old rule that required banks to lend the borrowed money to their own country’s banks. Now they can use the euros however they need to. The ECB said it will stop sharing details about how much each country borrows. Instead, it will only release combined weekly numbers to keep things private.

Applications are submitted via a formal request letter from the central bank’s governor directly to the ECB president.

ECB president cites geopolitical risks as driver

At the Munich Security Conference that same day, Christine Lagarde, the president of the European Central Bank, discussed these adjustments. She cited a globe rife with political unrest, disrupted supply lines, and fierce corporate competitiveness. According to her, the new program is faster, easier to use, and permanent. When financial market issues arise, this should increase public confidence in the euro.

The setup is similar to what the U.S. Federal Reserve does with its FIMA program. That program gives foreign government institutions access to dollars backed by U.S. Treasury bonds to keep markets stable. The ECB wants to create the same kind of safety net for the euro.

The euro still has a long way to go to catch up with the dollar. The euro makes up about 20 percent of global foreign exchange reserves held by central banks, while the dollar accounts for roughly 60 percent. But having a reliable backup source of euros could slowly change this balance.

When central banks and investors know they can get euros quickly if needed, they might be more willing to hold euro assets. This could lead to more trade, lending, and investment using euros.

Financial experts say these emergency programs usually sit unused during normal times. But just knowing they exist matters a lot. When market stress hits, they can make a real difference in keeping things stable.

Europe has been working toward less dependence on other countries’ financial systems as the world economy becomes harder to predict. Making EUREP available to more banks fits into this bigger plan.

“This facility also reinforces the role of the euro. The availability of a lender of last resort for central banks worldwide boosts confidence to invest, borrow and trade in euros, knowing that access will be there during market disruptions.” Lagarde said. “In a world where supply chain dependencies have become security vulnerabilities, Europe must be a source of stability – for ourselves and for our partners.”

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Vietnam has seen its once high-thriving crypto industry become a shadow of itself after the recent marketwide decline in digital assets. According to reports, the recent market decline has forced users to sell off their assets, with most retail traders currently in the red as a result of the development.

Over the last few years, Vietnam has approached digital assets cautiously, allowing blockchain technology to develop in a grey area, unlike its neighboring China, which chose an outright ban back in 2021. In Vietnam, digital assets have been barred from being used as a medium of exchange, while the government allows its citizens to speculate on the assets without restriction. The move allowed its young population to sit at the forefront of crypto adoption, with an estimated 17 million people holding digital assets.

What happened to Vietnam’s crypto industry?

In the past few months, Vietnam has been making progress in its crypto industry. In January, the country announced that it had begun accepting applications from firms looking to operate a licensed crypto exchange in the country. Under the licensing framework, applicants must have a minimum contributed charter capital of 10 trillion Vietnamese dong ($400 million) alongside other requirements. The licensing program was rolled out under the legislation passed by the National Assembly of Vietnam in June 2025.

However, what looked like a boom in the crypto industry has now turned into a liability as investors are presently in the midst of a crypto winter. The price of Bitcoin has almost halved since hitting a new record high above $126,000 in October, with other digital assets sliding even further. In an interview carried out by AFP, a university student in Hanoi, Hong Le, claimed that he had lost all his digital holdings. He claimed that his holdings rose to $200,000, but crashed when Bitcoin and other digital assets slid.

Discussing the current market situation, Tran Xuan Tien, the head of Ho Chi Minh City’s blockchain association, mentioned that many companies have shut down as a result of the crisis. He added that others have also been downsizing, as most of them are looking for capital to extend their runway. His words were echoed by Nguyen The Vinh, co-founder of blockchain firm Ninety Eight, who mentioned that his company just laid off about one-third of its staff since last year.

Industry figures call for plans to help the sector

Talking about the future, Vinh added that the company is expected to carry out more restructurings in the future due to the gloomy outlook of the industry. “The market will likely remain difficult for years, not just months, so we need backup plans.” Until recently, Vietnam’s crypto sector was a careful place to be, with ventures dealing in highly speculative assets and Ponzi schemes flourishing alongside firms offering legitimate products.

At the time, the Vietnamese government warned about the dangers of crypto and went after the perpetrators of some huge scam operations, especially one where investors were swindled out of more than $400 million. Under its leader, To Lam, the country is now pursuing growth reform, as it seeks to embrace the blockchain industry and assert control over the $100 billion market. While the law recognizing digital assets came into effect last month, investors have questioned its implementation.

According to Vinh, most of the firms are halting operations, downsizing, or moving elsewhere because of the increasing decline and the unclear legal framework in the industry. He also added that new firms are struggling to gain popularity as investors are now choosing to wait out the turbulence in the market. In the past, investors were enticed by the promises of making 400% returns, but are now discouraged when they hear that they might lose everything.

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Ledger and Trezor wallet users are reportedly being targeted in a new crypto theft campaign. According to authorities, crypto scammers have kicked their activities up a notch, ditching their previous model of targeting hardware wallet users.

According to reports, criminals are now sending users of these wallets physical letters delivered to their homes, pretending to be from Trezor and Ledger. This is done to trick them into submitting recovery phrases of their wallets, which are then used to carry out the theft. The letters claim recipients must undergo compulsory checks or transaction checks to avoid losing access to functionalities within the wallet. The scammers use this to create a sense of urgency to pressure their victims into scanning QR codes that lead to malicious websites.

Ledger and Trezor users targeted in snail mail QR code crypto scam

According to reports, users of the hardware wallets have confirmed receiving these letters printed on letterhead that impersonate official communications from the security and compliance teams of Ledger and Trezor. It is unclear how the users are being targeted, but both companies have suffered breaches in the past. These breaches have seen considerable user information being compromised. The most recent breach occurred at Ledger, where user data was stolen last month.

In the letter received by Trezor users and checked by cybersecurity expert Dmitry Smilyanets, the criminals claimed that authentication checks will become a mandatory part of Trezor and urged users to complete the process by February 15 or risk losing certain functions on their devices. The letter claimed that users must scan the QR code contained in the letter and follow the instructions so they don’t lose access to the Trezor Suite.

“Note: While you may have already received the notification on your Trezor device and enabled Authentication Check, completing this process is still required to fully activate the feature and ensure your device is synchronized with the full functionality of Authentication Check,” the Trezor letter read. Meanwhile, a similar letter addressed to Ledger users was shared on blogging platform X, claiming that users would be subjected to a mandatory transaction check with the same deadline.

Hardware wallet firms issue warnings to users

According to reports, scanning the QR code leads users to phishing sites created by scammers to impersonate Trezor and Ledger official domains. Currently, the Ledger phishing site is offline, while that of Trezor remains active. However, the Trezor website has been flagged as a phishing site. “Attackers on the site that you tried visiting might trick you into installing software or revealing information like your passwords, phone numbers, or credit card numbers. Chrome strongly recommends going back to safety,” the website said.

Before the Trezor website was flagged, it displayed a warning saying that users needed to complete the authorization check by February 15 to be safe. However, it highlighted that users who purchased the Trezor Safe 7, Trezor Safe 3, Trezor Safe 1, and Trezor Safe 5 do not need to complete the checks as the wallets are already preconfigured. The landing page features a ‘Get Started’ button that leads to another warning about a failure to complete the authentication process.

These warnings were designed to create further urgency so that victims continue to the next part of the process without having second thoughts. If victims proceed, the next page requires them to enter their recovery phrases with claims that this information is to enable them to authenticate and verify device ownership. However, once the recovery phrase is entered, it is transmitted to the scammers through a backend API endpoint.

Hardware wallet recovery phrases are the representation of the private keys that control access to crypto wallets. This means that anyone with access to the phrases will be able to gain full control over the wallet and the funds in it. Hardware wallet manufacturers like Trezor and Ledger have always warned users not to share those phrases, as they will never ask for them under any condition. Recovery phrases should only be entered on the hardware wallet devices.

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Elon Musk is being criticized for ignoring safety measures after former employees reported that he dismantled the internal safety department at his xAI startup, responsible for the Grok chatbot. 

Only 12 of xAI’s original cofounders remain employed at the company after several of them left for various reasons, including to start their own companies and complaints of creative stagnation.

Is xAI sacrificing safety to compete with OpenAI?

One source who spoke to The Verge claimed that xAI’s safety team has been effectively dissolved, saying “Safety is a dead org at xAI.”

According to reports, there’s been a push for “unfiltered” content, leading to a focus on NSFW (Not Safe For Work) capabilities for the Grok AI.

Former staffers allege that Musk views safety measures as a form of “censorship.” They claim that engineers are encouraged to “push to production” immediately, sometimes bypassing traditional testing phases.

This culture has reportedly led to internal friction between leadership, causing them to clash often over product priorities in large group chats on the X platform.

Musk argued on X that “everyone’s job is safety.”

Using Tesla and SpaceX as examples, he said that neither company has a massive, independent safety department, yet they produce the safest cars and rockets in the world.

To Musk, separate safety departments are often “fake” and exist only to “assuage the concerns of outsiders” without having any real power to improve the product.

In Musk’s ongoing legal battle with OpenAI and its CEO, Sam Altman, he has frequently criticized OpenAI for becoming a closed-source for-profit company that prioritizes profit over safety, but he is being accused of doing the same by removing the internal checks and balances that prevent AI from generating harmful or biased content.

Frequent hiring at xAI

Following the recent announcement of a merger between xAI and SpaceX that led to an internal valuation of approximately $1.25 trillion, the company has seen a wave of high-profile departures causing people to question the company’s internal culture, its technical direction, and its approach to AI safety. Former employees describe the company as a “dead” safety organization.

Two of the company’s most prominent co-founders, Yuhuai (Tony) Wu and Jimmy Ba, recently announced they were leaving. Wu stated it was “time for his next chapter,” while Ba noted he needed to “recalibrate his gradient on the big picture.” Only half of the original 12 co-founders who launched xAI remain at the company. Several other engineers and staffers have also resigned, with many stating they intend to start their own AI firms. One group of former employees has already launched “Nuraline,” a startup focused on AI infrastructure.

Some departing employees like Vahid Kazemi, suggested that the industry has become stagnant, writing on X that “all AI labs are building the exact same thing.” Others suggested that xAI is stuck in a “catch-up phase,” merely trying to replicate what OpenAI and Anthropic achieved a year ago rather than innovating.

In an internal all-hands meeting, Musk explained that xAI would now be divided into four primary sectors namely Grok Main and Voice, Coding, and Data Macrohard.

xAI’s Colossus supercluster in Memphis, Tennessee currently houses 100,000 Nvidia H100 GPUs, and is currently being expanded to 200,000 GPUs. This hardware is essential for training “Grok 3,” which Musk believes will surpass all other AI models currently on the market.

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The PancakeSwap V2 pool for OCAUSDC on BSC was exploited in a suspicious transaction detected today. The attack resulted in the loss of almost $500,000 worth of USDC market, drained in a single transaction.

According to reports from Blockchain security platforms, the attacker exploited a vulnerability in the deflationary sellOCA() logic, giving them access to manipulate the pool’s reserves. The final amount the attacker got away with was reportedly approximately $422,000.

The exploit involved the use of flash loans and flash swaps combined with repeated calls to OCA’s swapHelper function. This removed OCA tokens directly from the liquidity pool during swaps, artificially inflating the on-pair price of OCA and enabling the drainage of USDC

How did the OCA/USDC exploit happen?

The attack was reportedly executed via three transactions. The first to carry out the exploit, and the following two to serve as additional builder bribes.

“In total, 43 BNB plus 69 BNB were paid to 48club-puissant-builder, leaving an estimated final profit of $340K,” Blocksec Phalcon wrote on X about the incident, adding that another transaction in the same block also failed at position 52, likely because it was frontrun by the attacker.

Flash loans on PancakeSwap allow users to borrow significant amounts of crypto assets without collateral; however, the borrowed amount plus fees must be repaid within the same transaction block.

They are primarily used in arbitrage and liquidation strategies on the Binance Smart Chain, and the loans are usually facilitated by PancakeSwap V3’s flash swap function.

Another flash loan attack was detected weeks ago

In December 2025, an exploit allowed an attacker to withdraw approximately 138.6 WBNB from the PancakeSwap liquidity pool for the DMi/WBNB pair, netting approximately $120,000.

That attack demonstrated how a combination of flash loans and manipulation of the AMM pair’s internal reserves via sync() and callback functions is capable of being used to completely deplete the pool.

The attacker first created the exploit contract and called the f0ded652() function, a specialized entry point into the contract, after which the contract then calls flashLoan from the Moolah protocol, requesting approximately 102,693 WBNB.

Upon receiving the flash loan, the contract initiates the onMoolahFlashLoan(…) callback. The first thing the callback does is find out the DMi token balance in the PancakeSwap pool in order to prepare for the pair’s reserve manipulation.

It should be noted that the vulnerability is not in the flash loan, but in the PancakeSwap contract, allowing manipulation of reserves via a combination of flash swap and sync() without protection against malicious callbacks.

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Ark Invest CEO Cathie Wood argues that Bitcoin is not only a hedge against inflation, but also a hedge against rapid deflation caused by technological acceleration.

Cathie Wood spoke with Anthony Pompliano at Bitcoin Investor Week to discuss a myriad of different economic topics. The focal point of their conversation, however, was centered around what she believes is a massive incoming economic disruption that will be caused by technological advancements. Wood believes that traditional financial systems are woefully underprepared for what she called a “productivity shock” that will be brought about by advancements in AI and other technology.

These technological breakthroughs will boost output and, in turn, slash costs for businesses, leading to lower prices for consumers. While this may sound good, Wood stated that this productivity shock will create deflationary chaos, as rapid price drops will upend traditional business models. Her solution to this problem is none other than Bitcoin (BTC). Wood believes it is a hedge against inflation and deflation due to its decentralized nature and fixed supply. This, among other variables, allows it to be shielded from the fragility of traditional financial structures.

Why rapid deflation driven by AI productivity gains is bad for the economy

In this current era of inflation and price increases, the idea of deflation may sound like a good thing at first. After all, the idea of lower prices in today’s world, where things only seem to be getting progressively more expensive, sounds very beneficial to the average consumer. However, when deflation occurs at a rapid rate, which Wood suggests will happen due to productivity gains from artificial intelligence, it creates a problem for a debt-heavy economy like the United States.

The issue is that debt is fixed in nominal dollars. This means that, however much money one owes on their credit card balance, mortgage, or other loans, it does not adjust for inflation or deflation. This also applies to business and government (i.e., U.S. national debt), since both exist in the same U.S. financial system.

When deflation occurs, asset prices fall, salary amounts typically decrease, and business and government revenue decline. This makes it much harder for businesses, governments, and individuals to pay back their debt. For this reason, rapid, unforeseen productivity-driven deflation from AI advancements can destabilize the economy, especially in current circumstances where debt and leverage are high. Various factors like spending cutbacks, layoffs, and defaults can ensue as a result of rapid deflation, leading to economic chaos.

Bitcoin as the solution to a rapid deflationary environment

Wood argues that Bitcoin is uniquely positioned for this AI-driven deflationary crisis she forecasts. For starters, Bitcoin is decentralized, meaning it is a non-sovereign asset that exists outside of traditional financial systems. It also has a scarce, capped supply. This means that, unlike fiat currencies, it can’t be printed infinitely. The issue with printing more money to solve deflationary conditions is that it’s essentially putting a bandaid on the issue. It can relieve tensions temporarily, but it is not a sustainable solution as it creates additional issues like central bank dependency, along with policy and credit risks.

Bitcoin, on the other hand, is not controlled by any central entity. This means it is hypothetically protected from economic policy changes in response to deflationary chaos. It also has a mathematically capped supply, which cannot be infinitely expanded to manage short-term currency instability at the cost of long-term stability. The real point that Wood is trying to make is not that Bitcoin should be used by the government, central banks, or corporations to directly fight deflation. Instead, she believes it can be used as a hedge against it to protect capital from the economic instability that will arise from rapid deflationary conditions AI productivity gains may cause.

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Vitalik Buterin recently shared a lengthy post on X where he critiqued the current state of prediction markets. His current stance slightly differs from what it was last year, when he claimed it was “healthier” to participate in them than regular markets. 

In his post, Buterin expressed concern about the state of prediction markets in their current form. He admitted they had achieved a certain level of success, but that they also “seem to be over-converging to an unhealthy product market fit. 

Buterin claims this is happening because they embrace short-term cryptocurrency price bets, sports betting, and other similar things that have dopamine value without any kind of long-term fulfillment or societal information value. 

“My guess is that teams feel motivated to capitulate to these things because they bring in large revenue during a bear market where people are desperate – an understandable motive, but one that leads to corposlop,” Buterin wrote. 

Buterin’s warning about prediction markets 

Buterin believes the space would be better off pushed into a totally different use case: “hedging, in a very generalized sense,” he wrote. 

As far as he is concerned, the dopamine-driven bets that seem to be taking center stage now are an unhealthy product-market fit. He believes these bets now dominate substantive uses, putting the space at risk of being captured by uninformed speculation rather than genuine information aggregation. 

In the future, he advocates steering prediction markets towards risk hedging applications, for example, tools that can help reduce real-world risks to assets or expenditures. 

He had a different opinion last December 

While Vitalik Buterin’s thoughts on prediction markets have not changed radically, they are a bit different from how he felt about them as of December last year. At the time, he was clearly positive and defensive about them. 

In fact, just before Christmas, Cryptopolitan reported that the Ethereum co-founder claimed on Farcaster that prediction markets are “healthier to participate in than regular markets.” 

After all, he claimed they’re bounded between 0-1, reducing pump-and-dump risks. He also co-trusted them favorably with social media, positioning them as better tools for truth-seeking and measuring uncertainty with economic accountability. 

He continued to defend them in December, even in the face of critics concerned about risks to sports and election integrity, arguing a similar level of manipulation already exists in stock markets. 

What changed? 

Buterin’s stance on prediction markets has been altered due to various potential reasons. One is the direction of the sector’s evolution. 

While platforms like Polymarket have exploded in volume, much of that growth comes from gambling-related, short-horizon bets rather than deeper uses like hedging. This has become more apparent with the current bearish conditions pushing platforms towards shipping more addictive high-frequency features for retention. 

Buterin has not given up on prediction markets yet, and his recent post is proof that he still sees massive potential in them. He hopes platforms push towards more generalized hedging use cases, as it would be better to rescue them from the present rut than scrap the concept entirely. 

Polymarket’s 15-minute markets part of the problem 

Talk about how platforms are leaning towards ultra-short-term markets comes weeks after Polymarket, a popular prediction market platform, launched its 15-minute crypto prediction markets in January. 

Source: @Kunallegendd via X/Twitter

15-minute Up or Down market contracts have reportedly gone from 5% of crypto volume to roughly 60% in early 2026, while hourly markets account for 20%. 

According to an X article by Kunal Doshi, a researcher with Blockworks, these short-duration contracts are a core driver in crypto volume. However, the data has shown that those markets are dominated by systematic traders rather than directional bettors.

These traders are not interested in the prices and are more focused on arbitrage opportunities. They reportedly contribute up to 70% of the 15-minute market’s volumes.

As these markets increasingly become the powerhouse of crypto prediction markets, Buterin is calling for a reorientation, convinced that this is not a tangent that prediction markets need to focus on. 

Build the next generation of finance, not corposlop.

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