Blockonomi

TLDR:
Pentagon bans military and civilian personnel from using nonpublic information to trade on Polymarket and Kalshi.
The directive covers classified and unclassified information, including trades made indirectly through third parties.
Defense Secretary Pete Hegseth warns that military-related bets could expose sensitive operations to foreign intelligence services.
Violations may result in administrative, disciplinary, or criminal action under military rules and federal law.
The Pentagon has banned military and civilian personnel from trading with nonpublic information on prediction markets, including Polymarket and Kalshi. Defense Secretary Pete Hegseth issued the directive on October 20 to senior Pentagon leaders and combatant commanders. The order covers classified and unclassified information, with disciplinary or criminal penalties possible for violations.
Pentagon Ban Covers Trading With Nonpublic Military Information
Hegseth’s memorandum prohibits department personnel from using information unavailable to the public for financial transactions. The restriction covers trades placed directly or through another person, and it applies beyond prediction markets.
Traditional betting platforms and other financial markets fall under the same rule when personnel use nonpublic information. The directive does not prohibit every lawful trade by service members, but it bars transactions based on privileged knowledge.
Hegseth bars US forces from using undisclosed information to bet on Polymarket, Kalshihttps://t.co/dVs3hvi8Pk
— The Hill (@thehill) October 22, 2026
Hegseth warned that foreign intelligence services could study trading patterns to identify potential U.S. military actions. “Our enemies watch movements in these markets,” he wrote, referring to financial activity around military outcomes.
He said bets on operation dates or military results could reveal information about troop movements, targets, and timing. The memorandum further warned that financial positions could influence the judgment of military analysts and logistics personnel.
Violators may face administrative measures, military discipline, or criminal prosecution under federal law or the Uniform Code of Military Justice.
Military Insider Trading Case Fuels Scrutiny of Polymarket
The order follows an April enforcement case involving U.S. Army Master Sergeant Gannon Ken Van Dyke. Federal authorities accused him of using classified details about the operation to capture Venezuelan leader Nicolás Maduro. According to the CFTC, his alleged Polymarket trades generated more than $404,000 in profits.
Prosecutors said he placed about $33,000 in wagers before the January military operation became public. Van Dyke pleaded not guilty to the charges, and the allegations remain subject to court proceedings. The CFTC separately filed a civil complaint concerning his alleged misuse of government information.
Questions about advance knowledge have extended beyond that case, including bets placed before U.S. strikes on Iran. Six recently created Polymarket wallets reportedly earned nearly $1 million, prompting questions about the timing of their positions. Those transactions drew scrutiny, though available reports did not establish that the traders had classified information.
Congress Examines Prediction Market Insider Trading Controls
Congress has been examining how prediction platforms detect and stop trading based on confidential information. On May 22, House Oversight Chairman James Comer opened an investigation into Polymarket and Kalshi.
The committee sought records about identity checks, suspicious trades, and the companies’ methods for enforcing market rules. Its inquiries followed concerns that government officials could use restricted information to profit from contracts on public events.
Kalshi has faced separate questions about potential insider activity in political markets, including bets preceding a White House appointment. The platform confirmed an inquiry into those wagers, but no public finding had established wrongdoing in that case.
Kalshi has introduced employment disclosures for some higher-risk markets, while its surveillance team reviews suspicious activity. Polymarket has also said it cooperated with investigators in the Van Dyke case.
Hegseth’s October 20 directive now sets out a department-wide rule covering military and civilian staff. It directs personnel to avoid using nonpublic information for personal gain, whether trading themselves or through other parties.
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TLDR:
New York AG seeks $1.37 billion from NovaTech founders Cynthia and Eddy Petion over alleged crypto fraud.
Investors deposited $1.16 billion, but only $25.99 million reached trading, resulting in $18.19 million in losses.
Investigators traced at least $134.5 million to founders’ wallets as NovaTech allegedly promised 2%–4% weekly returns.
Four NovaTech promoters agreed to pay nearly $6 million and accepted permanent financial industry bans.
New York Attorney General Letitia James has asked a court to order NovaTech’s founders to pay $1.37 billion. The founders, Cynthia and Eddy Petion, previously faced crypto pyramid scheme charges over an investment operation that collected funds from customers worldwide.
The October 22 filing seeks disgorgement and interest, while four NovaTech promoters have agreed to pay nearly $6 million. More than 11,000 New Yorkers invested in NovaTech and AWS Mining, according to the attorney general’s office.
New York Seeks $1.37B Following NovaTech Default Judgment
The court filing seeks $1.1345 billion in disgorgement and $232.47 million in prejudgment interest. Together, those amounts total $1.367 billion, which New York wants the founders and NovaTech entities to pay.
The request follows an August 2025 default judgment after the petition failed to respond to the state’s lawsuit. The court barred their securities, commodities, and crypto activities in New York but deferred its decision on financial relief.
New York AG Seeks $1.37B From NovaTech Founders Over Alleged Crypto Ponzi Scheme
New York AG seeks $1.37 billion from NovaTech founders Cynthia and Eddy Petion: $1.13 billion in disgorgement plus $232.5 million in prejudgment interest. Court filings show $1.16 billion in crypto… pic.twitter.com/XDjGMonCXs
— Wu Blockchain (@WuBlockchain) October 23, 2026
James said the businesses drew investors into fraudulent schemes by promising returns from mining and crypto trading. She accused the operators of robbing investors of their life savings while targeting religious and immigrant communities.
In a separate proceeding, a federal court ordered repayments in a $31.48 million crypto fraud case last month. For NovaTech, the requested amount still requires a court decision following the state’s October filing.
NovaTech Investors Deposited $1.16B, but Little Reached Trading
Between August 2019 and May 2023, investors deposited $1.1605 billion in cryptocurrency into NovaTech wallets tracked by CoinPayments. Court records show only $25.99 million reached a trading platform, where losses totaled $18.19 million.
Prosecutors allege NovaTech promised weekly returns of 2% to 4%, despite having little trading income to support those claims. The company allegedly used deposits from new investors to pay other customers and provide bonuses for recruitment.
Investigators traced at least $134.5 million in transfers to wallets belonging to Cynthia and Eddy Petion. The company recruited through social media, WhatsApp chats, and prayer groups, including Haitian communities in New York.
Federal regulators described WhatsApp-based crypto investment fraud in another case that resulted in a June judgment. A separate 2026 crypto Ponzi prosecution concerned alleged payouts funded by new deposits instead of trading profits.
NovaTech collapsed in 2023, leaving tens of thousands of investors unable to recover their cryptocurrency. New York’s filing describes losses among customers across the United States and abroad.
Four NovaTech Promoters Agree to Nearly $6M in Repayments
New York settled claims against Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett over their roles as promoters. The agreements require approximately $5.98 million in payments and permanently bar all four from securities, commodities, and cryptocurrency activities.
Zizi agreed to pay $2.9 million, while Ciceron will pay $2.05 million under the settlements. Corbett will pay $750,000, and Roy’s payment is $275,861, with the funds intended to benefit victims.
The case began with a June 2024 lawsuit against NovaTech, AWS Mining, and several people associated with both operations. AWS Mining collapsed in 2019 after promising monthly returns of 15% to 20%, and the Petions later established NovaTech.
The CFTC has pursued other alleged crypto and forex Ponzi schemes involving recruitment bonuses. In New York, the court must still decide the $1.37 billion request against the Petions and NovaTech entities.
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TLDR:
Bitcoin price faces macro pressure as Brent holds above $100, with Darkfost warning that expensive energy could constrain fresh liquidity.
CryptoQuant analysis links sustained oil strength above its annual average with slower Bitcoin momentum, without establishing direct causation.
Lookonchain reported that 40 newly created wallets withdrew 9,458 BTC, valued at approximately $771.5 million, through Wintermute since October 1.
Large wallet withdrawals suggest potential accumulation, although the transfers do not confirm fresh purchases or identify the ultimate owners.
Bitcoin price faces a tougher economic backdrop as Brent crude trades above $100, raising concerns about inflation and market liquidity. CryptoQuant analyst Darkfost says prolonged oil strength has often coincided with slower Bitcoin momentum, although the relationship does not establish causation.
Meanwhile, large holders continue moving substantial amounts of BTC through Wintermute. Lookonchain reported that 40 newly created wallets withdrew 9,458 BTC, worth approximately $771.5 million, since October 1.
The activity suggests potential accumulation despite weak trading conditions. However, those withdrawals do not establish whether fresh purchases occurred or whether the addresses belong to separate institutional investors or wealthy individuals.
Bitcoin Price Faces Liquidity Risks as Brent Holds Above $100
Darkfost attributed elevated oil prices to continuing Gulf tensions and intensified Ukrainian attacks on Russian refineries. Higher energy costs can spread across manufacturing, transport and services, adding pressure throughout the economy.
Bitcoin faces a tough macro backdrop as Brent holds above $100
“Over the long term, we can see that when Brent settles into a strong upward trend, above its annual average, Bitcoin has often slowed down.” – By @Darkfost_Coc pic.twitter.com/LR7SfmXyUm
— CryptoQuant.com (@cryptoquant_com) October 23, 2026
Brent crude stood around $104 in the analysis, compared with roughly $60 to $70 earlier in 2026. Its moving average over 365 days had also started rising after a prolonged decline.
The chart tracks Bitcoin and Brent back to 2014. Shaded periods identify stretches when oil traded above its annual average, highlighting several overlaps with weaker cryptocurrency performance.
Examples include 2018, parts of 2021 and 2022, and periods during 2026. The Bitcoin price did not decline during every instance of rising oil, making the distinction between correlation and causation important.
Darkfost argues that the surrounding economic conditions matter more than oil movements alone. Persistent inflation can constrain liquidity and reduce the capital available for assets carrying greater risk.
Higher energy prices may also complicate Federal Reserve decisions on interest rates. If inflation remains elevated, policymakers could have less room to ease financial conditions.
That would leave the Bitcoin price facing a less supportive environment for fresh investment. Sustained borrowing costs and elevated yields can affect how investors allocate capital across markets.
Still, Darkfost said Bitcoin benefited when macro pressure briefly eased in July. Oil subsequently rebounded, but he did not suggest that further cryptocurrency gains had become impossible.
Capital can shift between markets even without substantial new inflows. The analyst emphasized sustained trends rather than individual daily price fluctuations. His warning concerns the difficulty of attracting fresh liquidity while energy costs remain high.
Whale Withdrawals Top $770 Million amid Weak Market Momentum
Bitcoin whales offer another view of market activity during the price slowdown. The 40 wallets tracked by Lookonchain received their BTC through Wintermute over the period beginning October 1.
Whales are accumulating $BTC!
Since Oct 1, 40 newly created wallets have withdrawn 9,458 $BTC ($771.5M) from #Wintermute.https://t.co/AR7qxcyoiU pic.twitter.com/TfzSTKz7UF
— Lookonchain (@lookonchain) October 23, 2026
The reported withdrawals exceeded $770 million, a substantial movement despite recent price weakness. They suggest that some large participants remain willing to hold Bitcoin through uncertain conditions.
However, transfers reveal less about demand than completed purchases with identifiable counterparties. The available information does not establish transaction prices, ownership or whether one entity controls several receiving addresses.
For the Bitcoin price, that distinction limits how strongly the activity supports a bullish interpretation. Moving coins into new wallets does not demonstrate that buying pressure exceeds selling across the market.
The oil analysis and wallet data also measure different developments. Brent crude provides context for inflation and liquidity, while wallet withdrawals track the movement of existing cryptocurrency holdings.
Bitcoin whales may accumulate during difficult economic periods without producing an immediate market recovery. Their activity can coexist with weak momentum when other participants reduce exposure or when broader demand remains limited.
The Bitcoin price therefore has no confirmed recovery target from either observation. Neither the wallet transfers nor the historical oil comparison establishes a timetable for a rebound.
Darkfost identified persistent oil strength above its annual average as the condition to monitor. A retreat below $100, followed by a move beneath that average, could ease the pressure described in the analysis.
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TLDR
Malaysia and Thailand join Singapore’s BLOOM initiative as policymaker members.
The initiative focuses on cross-border payments using stablecoins and tokenized bank deposits.
Ripple, Visa, Mastercard and the World Bank Group are among the participating organizations.
Ripple and Unloq plan to test automated trade payments using RLUSD on the XRP Ledger.
Central banks will examine payment settlement, network compatibility, identity checks and regulatory controls.
Singapore has expanded its BLOOM payments initiative as Malaysia and Thailand join efforts to test cross-border transfers. The work covers regulated stablecoins and tokenized bank deposits.
Singapore Adds Two Central Banks to BLOOM
The Monetary Authority of Singapore confirmed the membership of Bank Negara Malaysia and the Bank of Thailand on Friday. Both joined as policymaker members rather than commercial payment providers.
BLOOM stands for Borderless, Liquid, Open, Online, Multi-currency. Singapore started the project in October 2025 to bring regulators, banks and technology firms together around digital money settlement.
Ripple and Payment Networks Join the Work
Current participants include Ripple, Visa, Mastercard, Airwallex, Maybank and the World Bank Group. Circle, Coinbase, JPMorgan, Standard Chartered and Stripe were already involved in the initiative.
Ripple announced a trial with trade finance company Unloq in March. The partners plan to use RLUSD on the XRP Ledger and release payments when shipment conditions are met. Separately, Cross River Bank is adding Ripple’s RLUSD to its payment system.
The World Bank Group brings experience in international payment systems and financial inclusion. BLOOM participants are examining business payments, company cash management and trade finance.
Banks Examine Settlement and Safety Checks
The central banks will examine how institutions accept and exchange different digital currencies across countries. They will study ways for payment systems to communicate without requiring separate deals in every market.
Tokenized deposits form another part of the work. These tokens represent bank deposits rather than stablecoins issued by private companies. In a separate development, JPMorgan made its JPM Coin deposit token available on Ethereum this week for approved institutional clients.
BLOOM will examine identity checks, sanctions screening and transaction limits. MAS said common operating arrangements could reduce implementation costs while allowing regulators to apply their own national requirements.
Malaysia and Thailand Outline Their Priorities
Bank Negara Malaysia Deputy Governor Aznan bin Abdul Aziz said payments using different forms of digital money were becoming more practical. He welcomed cooperation between central banks and companies.

Rules remain a separate issue for stablecoin providers. This week, the US banking regulator outlined waiver requirements for existing stablecoin issuers, showing how oversight differs between markets. Bank of Thailand Deputy Governor Daranee Saeju said Singapore’s initiative would support its work on rules for tokenized money.
The post Malaysia, Thailand Join Singapore’s Cross-Border Payment Push appeared first on Blockonomi.

TLDR
Ethereum developers postponed the October 26 Glamsterdam activation on the Hoodi testnet.
ChainSecurity identified 13 real-world cases of potential smart contract security risks.
The postponement removes Hoodi’s planned gas limit increase to 200 million.
Developers have not confirmed new Hoodi or mainnet activation dates.
ETH trades below $2,400, with traders watching the $2,370 support and $2,415 resistance levels.
Ethereum developers postponed the Ethereum Glamsterdam upgrade on the Hoodi testnet after researchers found possible risks to smart contracts. They canceled the October 26 activation as ETH traded below $2,400. The Foundation has not set another test date.
Ethereum Glamsterdam Upgrade Misses October 26 Target
The Ethereum Foundation announced the decision on October 22 after a developer meeting. The review centers on EIP-8037, which changes gas charges for creating blockchain data and could affect deployed contracts.
Ethereum postpones the Glamsterdam upgrade and cancels Monday's Hoodi testnet activation after security developers flagged risks to existing contracts.
Just another reminder that protocol upgrades can be fragile.
— lenny (@blockchainlenny) October 23, 2026
The postponement removes Amsterdam and Gloas activations from Hoodi’s configuration, alongside a planned increase in its gas limit to 200 million. The Foundation said existing transactions and Hoodi’s chain history remain unchanged.
Security Review Focuses on Failed Contract Calls
On October 13, ChainSecurity warned that EIP-8037 and EIP-8038 could alter responses to failed transactions. Certain contracts check remaining gas to decide whether an unsuccessful operation should stop or continue. Older contracts may rely on those checks for security.
Under the proposals, failed operations might leave contracts with enough gas to continue. An application could then record failure without allowing retries. The change could block users from retrying requests.
ChainSecurity identified 13 real-world examples of contracts that might face such problems. It has not named the applications while contacting affected projects privately. A separate report on Glamsterdam gas concerns examined the findings. Developers are assessing whether the rules need changes.
Hoodi Operators Await New Test Schedule
Glamsterdam activated on the Sepolia testnet on October 6. Hoodi was the next planned testing stage before mainnet deployment. Developers have not confirmed a December mainnet launch.
Hoodi node and validator operators must check updated software instructions before October 26. Both client types must remove the canceled activation. Mainnet users and ETH holders need no action, according to the Foundation.
Ethereum Price Holds Near $2,400
ETH traded between $2,370 and $2,415 during the reported session, declining around 0.5%. Separately, Ethereum holders staked 35.9% of the supply in the third quarter, according to a Bitwise report.
ETH remains near $2,400. An earlier Ethereum support analysis identified $2,350 as another level to watch. The price levels reflect market trading, not a confirmed response to the Hoodi decision. A move above $2,415 would clear the reported range, while a fall below $2,370 would mark renewed selling pressure.
The post Ethereum Glamsterdam Upgrade Delayed as Contract Risks Emerge appeared first on Blockonomi.

TLDR
SK Hynix halted its review of Solidigm’s US IPO and pre-IPO fundraising amid market volatility.
South Korean regulators raised concerns that a separate listing could affect minority shareholder interests.
Solidigm still needs additional US manufacturing capacity to meet growing AI memory demand.
SK Hynix shares recovered from early losses to close 4.42% higher on Friday.
The company plans to announce third-quarter earnings and provide details on shareholder returns on October 28.
SK Hynix has stopped reviewing a US initial public offering for Solidigm, its memory chip subsidiary. The company cited volatile markets and falling semiconductor shares, but said Solidigm still needs factory capacity to meet AI demand.
SK Hynix shares fell nearly 3% early Friday before rebounding to close 4.42% higher.
SK Hynix Faces Questions Over Separate Listing
South Korea’s Financial Supervisory Service warned Monday that a US flotation could clash with rules on listing subsidiaries separately from their parent companies. Governor Lee Chan-jin said regulators were reviewing the plan’s treatment of minority shareholders.
SK Hynix said market conditions, not tighter listing restrictions, drove its decision. The company considered pre-IPO fundraising and a public offering, but stopped reviewing both.
Solidigm Still Needs a New US Factory
Solidigm produces NAND flash memory and storage drives for data centers. Its existing plants have limited room to raise output. Rival chipmaker Micron has faced a sharp stock decline despite analysts pointing to tight memory supplies.
A listing could have helped finance a new American plant without placing the full cost on SK Hynix. It might also have allowed investors to value Solidigm separately, an outcome the parent company previously sought. Reports placed Solidigm’s possible valuation near $150 billion.
SK Hynix approved a 40 trillion won share repurchase and cancellation program in August. It has pledged to return more than half of cumulative free cash flow to shareholders through 2027, using buybacks and dividends.
AI infrastructure spending remains a key source of demand for storage chips. This week, Applied Digital announced a Texas data center partnership involving a planned 50-megawatt facility, as operators continue investing in computing capacity.
Chip Selloff Clouds Investment Outlook
Semiconductor shares have suffered broad losses this month as markets reassess the cost of AI development. The Nasdaq Composite fell on Thursday, while South Korea’s KOSPI endured heavy selling earlier in the week.
Despite the selloff, Nvidia reported stronger data center revenue in recent results. Chief Executive Jensen Huang has said he does not expect an excess supply of memory chips by 2029. SK Hynix has not named a replacement funding plan or set a timetable for Solidigm’s next factory.
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TLDR
Moderna stock plunged more than 17% to $202.63 after early publication of its melanoma vaccine trial results.
The Merck-Moderna treatment reduced melanoma recurrence or death risk by 42% and distant spread or death risk by 38%.
Two-year recurrence-free survival reached 82.2% with the combined treatment, compared with 70% for Keytruda alone.
Moderna and Merck will present the findings on October 24 as they continue regulatory discussions.
Moderna (MRNA) stock fell more than 17% to $202.63 on Thursday after detailed results for its melanoma vaccine surfaced earlier than expected. The decline came despite a Phase 3 trial meeting its main treatment goals alongside Merck’s Keytruda.
Moderna Stock Falls After Early Release
The figures briefly appeared on an oncology website before their scheduled Saturday presentation. Moderna and Merck then published the findings on Thursday. Moderna shares fell more than 25% during trading, temporarily erasing about $24 billion in market value.
The stock recovered some losses before closing but weakened again in Friday’s premarket session. Merck shares also declined following the melanoma findings. Even after Thursday’s drop, Moderna had gained approximately 587% this year.
Melanoma Trial Shows Lower Recurrence Risk
The INTerpath-001 trial enrolled 1,137 patients whose high-risk stage IIB-IV melanoma had been removed through surgery. Participants received either the personalized vaccine, called intismeran autogene, with Keytruda or a placebo with Keytruda. Researchers designed each vaccine using genetic changes found in the patient’s tumor.
After a median follow-up of 24.6 months, the combination reduced recurrence or death risk by 42%. Two-year recurrence-free survival reached 82.2%, versus 70% for Keytruda alone. The combination also cut the risk of cancer spreading to distant areas or death by 38%.
Analysts Assess Results and Safety
Severe treatment-related side effects affected 14.2% of combination patients and 13.4% of comparison patients. The companies reported no new safety concerns. In separate oncology news, Roche shares rose after FDA approval of a colon cancer treatment this week.
UBS analyst Michael Yee described the recurrence findings as solid overall but attributed the selloff to earlier stock gains. William Blair’s Myles Minter questioned whether similar benefits would appear in other cancers. Analysts also noted that the distant-spread reduction trailed expectations from earlier research, although the studies differed.
Regulatory Plans and Tokenized Trading
Separately, Moderna Tokenized bStocks (MRNAB) was quoted at $191.91, down 20.67% over 24 hours. It trades separately from Nasdaq shares. In related market news, BNB Chain recorded $25.6 billion in tokenized-stock trades during the third quarter.
Moderna and Merck plan to present the results Saturday, October 24, at a medical conference in Madrid. They are discussing the findings with regulators. Overall survival figures remain incomplete, so the trial has not yet shown a definitive survival benefit.
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TLDR
Volvo shares fell more than 26% on Friday, reaching record lows after disappointing quarterly results.
Third-quarter revenue declined 22.6% to 66.9 billion Swedish kronor, while net losses reached about $573 million.
Volvo announced 2,500 additional job cuts as part of a new 5 billion kronor savings plan.
Revenue in China fell nearly 50% amid rising competition, while US tariffs continued to pressure margins.
Volvo expects the full benefits of its new cost-saving measures by the end of 2027.
Volvo shares plunged more than 26% on Friday, October 23, after the Swedish carmaker reported a third-quarter loss and announced 2,500 additional job cuts.
The decline sent the stock to record lows. Volvo Cars, which China’s Geely Holding controls, has lost more than two-thirds of its market value this year.
Volvo Shares Fall After Quarterly Loss
Volvo reported third-quarter revenue of 66.9 billion Swedish kronor, down 22.6% from 86.4 billion kronor a year earlier. Its operating result shifted from a 6.4 billion kronor profit to a 5.6 billion kronor loss.
The company posted a net loss of 5.73 billion kronor, or about $573 million. Its adjusted operating loss reached 3.7 billion kronor, against analysts’ expectations of 724 million kronor. Separately, Tesla’s latest earnings showed a 56% decline in operating profit.
Volvo’s gross profit margin fell to 14.7% from 20.4% a year earlier. The company reported a cash outflow of 8.9 billion kronor, more than double the figure recorded in the third quarter of 2025.
Revenue in China fell nearly 50% as local brands increased price competition. US tariffs and reduced electric vehicle incentives added pressure. Volvo withdrew its 2026 sales and cash-flow forecasts on October 2.
Volvo Plans Another 2,500 Job Cuts
Volvo will remove about 2,000 positions in Sweden and 500 elsewhere, affecting roughly 6% of its workforce. The company will end consulting contracts, allow some departures without replacements and offer targeted exit packages. A recent automotive software study described wider development and testing problems across the industry.
These reductions follow an earlier plan to cut 3,000 jobs. Volvo now seeks another 5 billion kronor in savings from overhead and other costs. It expects the full financial benefit by the end of 2027.
Volvo plans 13 new vehicles by 2030, including models designed for China. The wider battery industry continues developing new production methods, with QuantumScape outlining plans for a 100-megawatt-hour solid-state battery line in 2028.
Volvo will work more closely with Geely on six China-focused models and start producing two next year. It plans to build the XC60 in South Carolina from early 2027 while introducing a lower-priced electric car in Europe later that year.
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TLDR
A Circle shareholder filed a federal lawsuit against President Trump, World Liberty Financial and Steve Witkoff.
The suit claims foreign money moving through the USD1 stablecoin left Circle’s USDC unable to compete.
It centers on a $2 billion MGX investment in Binance that was paid using USD1.
The plaintiff asks the court to rule that Trump violated the Constitution’s Foreign Emoluments Clause.
The White House called the lawsuit “frivolous,” and Circle said it had no role in the filing.
A shareholder of Circle Internet Financial has filed a lawsuit against President Donald Trump, his family’s crypto company World Liberty Financial, and US Special Envoy to the Middle East Steve Witkoff.
The case was filed Thursday in the US District Court for the District of Columbia. It also names several affiliate entities connected to World Liberty.
What the Lawsuit Claims
The plaintiff, J. Benjamin Greenberg, says he holds 10,000 ordinary shares of Circle. The company issues USDC, one of the largest stablecoins on the market.
Greenberg alleges that Trump, Witkoff and World Liberty created a path for foreign governments to move money through USD1, the Trump family company’s stablecoin. He claims this “brazen corruption” left Circle “unable to compete” in the stablecoin market.
At the center of the case is MGX, an Abu Dhabi investment firm tied to the United Arab Emirates royal family. In 2025, MGX invested $2 billion into crypto exchange Binance using the USD1 stablecoin.
The Wall Street Journal reported in February that another investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to buy a 49% stake in World Liberty for $500 million.
“By accepting hundreds of millions of dollars from a foreign government, the President and his companies have diverted business from [Circle],” Greenberg alleged in the filing.
Greenberg asks the court to declare that Trump violated the Constitution’s Foreign Emoluments Clause. He also wants injunctions that would stop Trump and Witkoff from pursuing similar financial interests without the consent of Congress.
The lawsuit seeks an accounting of payments from foreign states to the president and his businesses. It also asks the court to force the companies to give up those payments and to award compensatory and punitive damages.
Zach Witkoff, the son of Steve Witkoff, is a co-founder of World Liberty. Trump and his three sons are also co-founders of the crypto venture.
Crypto Deals Become a Campaign Issue
Trump reported that his family’s crypto ventures earned him $1.4 billion in 2025. The consumer advocacy group Public Citizen reported that the same ventures cost investors about $4.7 billion.
The crypto business is one of several deals drawing scrutiny of the president. Others include his acceptance of a jet from the government of Qatar.
The 2026 midterm elections are less than two weeks away, and early voting has already started in some states. Democrats seeking reelection are using Trump’s crypto deals to appeal to voters.
Last week, Senator Mark Warner released a campaign ad saying the president made “more than $600 million alone from the crypto memecoin.”
A Circle spokesperson said the company “did not initiate, direct, authorize, or participate in the filing.” The company declined to comment further on the pending case.
A spokesperson for World Liberty did not respond to a request for comment.
White House spokesperson Anna Kelly said Trump has “no conflicts of interest” with his crypto investments. She called the lawsuit “frivolous.”
The post Circle Shareholder Sues Trump, World Liberty and Witkoff Over USD1 Stablecoin Deals appeared first on Blockonomi.

TLDR
FINMA approved Switzerland’s first spot Bitcoin ETF for retail investors on Tuesday.
BIT Asset Management said Thursday that its Bitcoin Fund ETF is expected to start trading on SIX Swiss Exchange in November.
The fund holds Bitcoin directly and is approved for public offering in Switzerland only.
It is set up as a Swiss collective investment scheme, with investor assets kept separate from the fund manager.
FINMA said other providers have also applied, and warned that Bitcoin remains highly volatile.
Switzerland’s first spot Bitcoin exchange-traded fund for retail investors is expected to begin trading next month. The fund is the first in the country approved to invest only in Bitcoin.
The Swiss Financial Market Supervisory Authority, known as FINMA, announced the approval on Tuesday. The regulator did not name the issuer at that time.
On Thursday, BIT Asset Management said it was the company behind the product. It said its Bitcoin Fund ETF is expected to begin trading on SIX Swiss Exchange in November.
How the Fund Is Structured
The Bitcoin Fund ETF holds Bitcoin directly. This means the fund owns the actual cryptocurrency instead of tracking its price through other products.
The fund is approved for public offering in Switzerland only. It is not being offered to the public in other countries.
BIT Asset Management said its fund is different from most Bitcoin products sold in Europe. “Most bitcoin products listed in Europe today are exchange-traded products (ETPs), which are debt instruments that carry issuer risk,” the company said.
Issuer risk means investors depend on the financial health of the company that created the product. If that company runs into trouble, investors could be affected.
The new fund is instead a Swiss collective investment scheme. Under this setup, the fund’s assets are held separately from those of the fund management company.
The company said these assets are “ring-fenced” for investors. In other words, they are kept apart and set aside for the people who own shares in the fund.
Regulator Points to Bitcoin’s Trading History
The fund falls under a Swiss category called “other funds for alternative investments” with particular risk. This category covers funds that carry higher levels of risk.
FINMA has allowed funds that invest mainly in a basket of cryptocurrencies since 2021. However, this is the first time it has approved a fund that invests only in Bitcoin.
The regulator said it made the decision based on Bitcoin’s trading history. It also cited Bitcoin’s higher trading volume compared with other cryptocurrencies.
FINMA also issued a warning to investors. It stressed that Bitcoin remains highly volatile, even when people access it through an approved ETF.
The regulator said other fund providers have also submitted applications for Bitcoin ETFs. Those applications have not yet been approved.
For now, BIT Asset Management’s fund is the only spot Bitcoin ETF approved for retail investors in Switzerland. The company expects trading on SIX Swiss Exchange to begin in November.
The post Switzerland Spot Bitcoin ETF Issuer Named as BIT Asset Management appeared first on Blockonomi.

TLDR
Chainlink has partnered with LG CNS, the IT and AI services arm of South Korea’s LG Group.
The deal focuses on expanding the use and distribution of Korean won stablecoins.
LG CNS will add Chainlink’s cross-chain, data, and orchestration tools to its digital asset platform.
South Korea’s crypto market is valued at $68 billion, with more than 11 million eligible stablecoin users.
No financial terms, customers, or launch timeline were shared.
Chainlink has formed a strategic partnership with LG CNS, the IT service and AI transformation arm of South Korean conglomerate LG Group. The deal was announced on October 22.
The two companies said they will work to expand the use and distribution of Korean won stablecoins. They also plan to build infrastructure for South Korea’s $68 billion crypto market.
According to the announcement, the Korean stablecoin market has more than 11 million eligible users. Stablecoins are digital tokens designed to hold a steady value, often tied to a national currency.
What the Partnership Includes
LG CNS will integrate Chainlink’s cross-chain, data, and orchestration infrastructure into its Digital Asset Platform Solution. This platform is aimed at Korean financial institutions looking for regulated blockchain tools.
Chainlink is a decentralized oracle network. It connects smart contracts on blockchains with real-world data and outside systems.
Its technology lets separate blockchain networks communicate and coordinates transactions across platforms. The companies plan to use these tools to help move tokenized money between systems that would otherwise not work together.
The two firms will also cooperate on technical standards. They said they will combine their expertise to help advance the country’s digital asset framework.
“Korea’s financial infrastructure is entering the tokenization era,” said Hongkeun Kim, executive vice president and head of LG CNS’s Digital Business Division. He said the partnership aims to grow Korea’s tokenized securities market and create a foundation for global expansion.
LG CNS and South Korea’s Stablecoin Rules
LG CNS is the lead contractor for Project Hangang, the Bank of Korea’s digital currency initiative. The company handles development, operations, and infrastructure for the program.
The first phase of Project Hangang involved about 80,000 customers across seven Korean banks. This gave LG CNS hands-on experience with digital payment systems.
LG Group holds about 186 trillion won ($140.5 billion) in assets across 63 affiliates. Its subsidiaries have a combined market value of more than $100 billion.
South Korea does not yet have a clear legal basis for issuing and trading stablecoins tied to the won. Lawmakers and the government are working on the Digital Asset Basic Act, which would set rules for won stablecoins and other digital assets.
South Korea is Asia’s second-largest crypto market. The Korean won ranks behind only the U.S. dollar in global crypto trading volume.
Chainlink already works with major financial firms, including Swift, Euroclear, Mastercard, and UBS. These ties give it an established presence among large financial organizations.
However, the announcement did not include financial terms, named customers, or a date for commercial launch. It also did not confirm that Chainlink’s technology will be used directly in Project Hangang.
The post Chainlink Partners With LG CNS to Expand Korean Won Stablecoins appeared first on Blockonomi.

TLDR:
Bitcoin fell 72% in 2010, 65% in 2014, 52% in 2018, and 27% in 2022 around US midterm elections.
Three of the last four midterm years closed the fourth quarter negative; only 2010 gained 391%.
Ali Charts marks $73,000, near the short-term holder cost basis, as the key downside level.
The analyst says elections may not cause the declines, as market cycles and liquidity also mattered.
Bitcoin midterm elections have preceded steep price drops in each of the last four US cycles, according to market analyst Ali Charts. The next vote takes place on November 3, less than two weeks away. Past data shows Bitcoin declines between 27% and 72% around these events, based on figures shared on X. The analyst also pointed to a key support level that traders may track if selling pressure builds after the election results.
Bitcoin Midterm Elections Show Four Straight Declines
Prominent analyst Ali Charts shared the data in a post on X. The post framed the Bitcoin midterm elections trend as a historical pattern that investors may be overlooking.
The analyst listed the drops seen around each midterm election since 2010. Bitcoin fell 72% in 2010 and 65% in 2014. The decline reached 52% in 2018.
https://t.co/sT0b0k3eDK
— Ali Charts (@alicharts) October 23, 2026
The most recent case came in 2022, when Bitcoin dropped 27%. As a result, all four cycles ended in a decline. The analyst noted that correlation does not equal causation.
Market cycles, liquidity, and investor sentiment also shaped those moves. Even so, Ali Charts said the consistency of the pattern deserves attention.
Fourth-quarter returns in midterm years show a similar trend. Bitcoin gained 391% in the final quarter of 2010. However, it lost 16.70% in 2014 and 42.16% in 2018. The asset then fell 14.75% in 2022. These numbers add a second data point to the price drops cited earlier.
Three of the last four midterm election years closed the fourth quarter in negative territory. The only exception was 2010, when Bitcoin was still in its early stage.
Ali Charts asked whether the fourth quarter of 2026 could follow the same path. The analyst presented this as a reason to monitor risk before the vote.
$73,000 Emerges as Key Support Level
Ali Charts identified $73,000 as the level to watch if selling pressure rises after November 3. That price roughly matches the short-term holder cost basis.
The metric tracks the average purchase price of coins held by recent buyers. Ali Charts described it as an important indicator of market sentiment.
This metric reflects how recent investors position themselves in the market. During established bull markets, Bitcoin has frequently found support near it after sharp corrections. Therefore, a pullback toward $73,000 could test whether buyers still defend the broader uptrend.
A sustained recovery from that zone would strengthen the bullish case, according to the analyst. Ali Charts also expects the November 3 vote to coincide with a volatile period for Bitcoin. Still, the analyst said elections may not cause the declines.
If Bitcoin falls toward $73,000, the analyst will watch for seller exhaustion turning into renewed demand. Only then would a long position come under consideration.
The analyst added that downside risk deserves close attention during the Bitcoin midterm elections period.
The post Could Q4 Turn Painful for Bitcoin? Midterm Elections History Points to Downside Risk appeared first on Blockonomi.

TLDR
Colombian authorities arrested eight people accused of laundering drug cartel money with cryptocurrency, working with U.S. intelligence agencies.
Raids took place in four locations: Cajicá, Maicao, Barranquilla, and Bogotá.
A Puerto Rico federal court accuses a group led by “Gallo” of using crypto tokens and smurfing to hide drug funds.
Nassim Orfale Vasquez, indicted in New York, allegedly processed over $42 million in suspicious crypto transactions since 2018.
All suspects face extradition procedures to the United States under Colombian law.
Colombian authorities have arrested eight people accused of helping drug cartels launder money through cryptocurrency. The arrests were carried out in coordination with U.S. intelligence agencies.
The Office of the Attorney General of Colombia announced the detentions on Wednesday. Officials said the suspects are linked to schemes that moved drug trafficking profits using digital assets.
Ocho personas fueron capturadas con fines de extradición en dos acciones de la Fiscalía, en articulación con autoridades de Estados Unidos. Los procedimientos se realizaron en Bogotá, Barranquilla, Cajicá (Cundinamarca) y Maicao (La Guajira), en desarrollo de requerimientos… pic.twitter.com/K3IKXdFDyu
— Fiscalía Colombia (@FiscaliaCol) October 21, 2026
Raids Across Four Colombian Cities
The operation involved CTI Police officials and the national army. Teams were sent to four locations: Cajicá, Maicao, Barranquilla, and Bogotá.
In one coordinated action, police captured Guillermo Carpio Cárdenas, known as “Gallo.” Authorities say he led the first group targeted in the operation.
Six other people were arrested with him. They are Alex Alberto Castillo Gómez, Jhon Jairo Torres Peláez, Nizar Hachem Sawan, Andrés Mauricio Guarnizo Vaca, Danilo Andrés Hernández Junco, and Juan Daniel Arenas Uribe, also known as Juan Arenas.
The United States District Court for the District of Puerto Rico has made allegations against this group. The court says the ring set up a scheme to move drug money and hide where it came from.
According to the court, the group used a deposit network and cryptocurrency tokens. It also used a method called smurfing.
Smurfing means breaking money into many small transactions. The goal is to avoid being flagged by financial intelligence units.
$42 Million Case Tied to New York Court
In a separate action, police arrested Nassim Orfale Vasquez in Barranquilla. He has been indicted in the United States District Court for the Southern District of New York.
Prosecutors say Vasquez took part in a network that used crypto transactions to launder drug trafficking funds. His case is separate from the Puerto Rico group.
According to the Internal Revenue Service, Vasquez processed more than $42 million in suspicious cryptocurrency transactions since 2018.
Authorities are also investigating whether a larger organization is running similar operations from the Colombian coast. That investigation is ongoing.
The arrests follow an earlier case involving a stablecoin laundering network. That network was led by Leonardo de Jesus Zuluaga Duque, a Colombian citizen known as “Rey.”
Zuluaga Duque was sentenced to 160 months in a U.S. federal prison. That is just over 13 years.
Colombian President Abelardo de La Espriella has made criminal extraditions to the United States a priority. His government has focused on drug trafficking groups.
He has faced criticism for his hard-line approach toward drug criminals. Even so, he ranks as the third most popular leader in Latin America, behind Mexico’s Claudia Sheinbaum and El Salvador’s Nayib Bukele.
The Attorney General’s office said all of those arrested will now go through extradition procedures under Colombian law. Officials said the process will respect due process as the suspects prepare to face charges in U.S. courts.
The post Colombia Arrests Eight in Crypto Drug Money Laundering Case appeared first on Blockonomi.

TLDR
HSBC has launched RedCoin, its first stablecoin tied to the Hong Kong dollar, for retail users on PayMe.
PayMe users will be able to activate an in-app stablecoin wallet in the coming days.
The wallet will support peer-to-peer transfers and payments to more than 100,000 merchants.
HSBC plans more products and an expansion into wholesale corporate and institutional uses.
HSBC and Anchorpoint Financial received Hong Kong’s first stablecoin licenses in April 2026.
HSBC has launched RedCoin, its first stablecoin tied to the Hong Kong dollar. The token is available to retail users through the bank’s PayMe platform starting Friday, October 23.
The stablecoin uses the symbol RCHKD. It is designed to hold the same value as the Hong Kong dollar.
HSBC is one of three commercial banks in Hong Kong allowed to issue Hong Kong dollar banknotes. The bank announced the launch in a statement on its website.
How RedCoin Will Work
PayMe users will be able to turn on a stablecoin wallet inside the app in the coming days, according to the bank.
The wallet will support peer-to-peer transfers between users. It will also let people pay more than 100,000 merchants that accept PayMe.
Maggie Ng, HSBC’s chief executive officer for Hong Kong, spoke about the change in how money moves. “Money, assets and information are moving from traditional infrastructure to always-on, data-rich and increasingly programmable digital networks,” she said.
John O’Neill, HSBC’s managing director for digital assets and currencies, said the bank plans to release more products soon. He added that HSBC will expand into “wholesale corporate and institutional use cases.”
HSBC’s Wider Digital Asset Work
RedCoin is part of a larger push by HSBC into crypto and blockchain. The bank has taken part in several projects run by the Hong Kong Monetary Authority.
These include the e-HKD pilot program and Project Ensemble. Both projects test how digital money could work in Hong Kong.
HSBC also offers digital bonds for institutional investors through its HSBC Orion platform. Retail clients can buy the HSBC Gold Token.
For wholesale payments, the bank runs the HSBC Tokenised Deposit Service.
Hong Kong has been working to become a crypto hub. Its Stablecoins Ordinance took effect in August 2025.
The law created a licensing system for companies that issue stablecoins backed by government currencies, also called fiat-referenced stablecoins.
In April 2026, the Hong Kong Monetary Authority issued its first stablecoin licenses. They went to HSBC and Anchorpoint Financial.
Anchorpoint is a joint venture of Standard Chartered, HKT and Animoca Brands. It began a phased rollout of its HKDAP stablecoin for institutions in August.
RedCoin went live on PayMe on Friday. HSBC said the in-app wallet for transfers and merchant payments will open to users in the coming days.
The post HSBC Launches RedCoin, Its First Hong Kong Dollar Stablecoin, on PayMe appeared first on Blockonomi.

TLDR
Bitcoin Core has changed how it discloses security vulnerabilities in its software.
Developer Antoine Poinsot said AI language models have made some flaws easy to rediscover.
Bugs labeled “easily discoverable” will now get fixes as soon as possible across all maintained versions.
Other bugs will still follow disclosure timelines based on how severe they are.
Critical bugs fall outside the standard policy and would likely need a special process.
Bitcoin Core, the main software used to run the Bitcoin network, is changing how it handles security flaws. The developers say artificial intelligence tools have made some bugs much easier to find.
Bitcoin Core developer Antoine Poinsot shared the update in an email to the Bitcoin Development Mailing List on Thursday. He explained why the old approach no longer works for certain types of bugs.
Why Bitcoin Core Is Changing Its Approach
In the past, vulnerabilities were usually kept secret under long disclosure embargoes. This gave users time to upgrade their software before the details became public.
Keeping that secrecy often meant fixes could not be added to older software versions. Users had to wait for the next major release to get the fix.
Poinsot said large language models, or LLMs, have changed this. Some flaws are now so easy to rediscover that delaying fixes does little to protect users.
“The embargo period achieves little but it delays the availability of a fixed release,” Poinsot said. “We are therefore updating our policy disclosure to accommodate those.”
How the New Policy Works
Under the updated policy, bugs labeled “easily discoverable” will get fixes as soon as possible. These fixes will be released for every maintained major version, along with a security advisory.
The policy page says this label “applies to vulnerabilities that can be discovered with minimal effort, such as through a simple LLM prompt.” These bugs will skip the standard waiting periods.
Other vulnerabilities will still follow disclosure schedules based on severity. Bitcoin Core sorts bugs into four groups: critical, high, medium and low.
Low severity bugs will be disclosed two weeks after the release of a major version that contains the fix. Medium and high severity bugs will be disclosed two weeks after the last affected release reaches its “End of Life,” which is usually about a year after the fix first appears.
The project will also post a pre-announcement two weeks before releasing details of an embargoed bug. This notice will come with a new major version and list how many bugs were fixed and how severe they were.
“Critical bugs are not considered in the standard policy, as they would most likely require an ad-hoc procedure,” the policy states. Critical bugs include those that could allow coin theft, create coins outside the set schedule or cause lasting network splits.
The Bitcoin Core website also lists past security advisories. Several fixes, including ones for remote crashes and disk-filling attacks, were released in Bitcoin Core v30.0 on October 10, 2025.
The change comes as AI-assisted security research puts pressure on developers across the Bitcoin software world. In August, the volunteer Bitcoin Red Team reported nearly 5,000 potential issues across 390 projects. Only about a fifth of those findings had been reproduced at the time.
That same month, Core Lightning developers urged node operators to upgrade or take their nodes offline. They had received several AI-generated vulnerability reports and held back technical details for two weeks.
The new policy has received some support from the Bitcoin community. “I’ve disagreed with Antoine’s approach to security in the past, but this is a good update,” said Luke de Wolf, host of the Bitcoin Infinity Show and author of “Defending Bitcoin.”
The post Bitcoin Core Updates Security Policy as AI Makes Bugs Easier to Find appeared first on Blockonomi.

TLDR
Casa’s Jameson Lopp urged Bitcoin holders to keep self custody in an October 22 open letter.
He said Bitcoin ETFs and custodians do not remove risk, but shift it to other parties.
Recent exploits hit Coldcard, Ledger devices sold by a reseller, and Qubic wallets.
Lopp recommends multisig wallets with keys spread across locations and hardware suppliers.
He also urged holders to plan for inheritance and loss of access.
Casa chief security officer Jameson Lopp has urged Bitcoin holders to keep control of their own coins. He made the call in an October 22 open letter to Casa clients and the wider Bitcoin community.
The letter follows a string of wallet security incidents. These include hackers using AI to find flaws, tampered hardware wallets, drained cold wallets and more advanced scams.
Lopp said the attacks raise real concerns about managing private keys. But he argued they do not justify giving up direct control of Bitcoin.
He noted that many of these attacks were already known to security experts. Seeing them in real incidents has made the risks harder for ordinary holders to ignore.
An open letter to the Bitcoin ecosystem: pic.twitter.com/nTt9iZBFrN
— Jameson Lopp (@lopp) October 22, 2026
Lopp Says Bitcoin ETFs Do Not Remove Custody Risk
Lopp pushed back on the idea that Bitcoin exchange traded funds offer a simple fix. He said handing private keys to another party only shifts the responsibility.
According to Lopp, ETFs give investors price exposure without control of the coins. Investors must rely on the fund, its custodian and others to keep the assets safe.
He warned that holders could have little say over their Bitcoin, including freezes or seizures by authorities. He said Bitcoin’s core traits are its fixed supply, public rules and access without permission from a middleman.
Some holders have already moved assets to centralized platforms. In August, crypto.news reported record inflows at OKX after the Coldcard hardware wallet exploit.
Recent Wallet Exploits Raise Security Questions
The Coldcard case involved a firmware setup error dating back to March 2021. Affected devices created recovery seeds using a weaker source of randomness.
An August 3 report linked the flaw to suspected Bitcoin thefts worth nearly $90 million at the time. Attackers could rebuild private keys without touching the devices.
Kraken chief security officer Nick Percoco called for independent testing of wallet seed generation. Coldcard released fixed firmware, but users with affected seeds had to create new wallets and move their funds.
On October 13, an investigation detailed compromised Ledger wallets sold through Southeast Asian reseller CryptoBilis. Ledger confirmed an unauthorized hardware implant in one device, but the probe did not find its own systems or direct sales channels were compromised.
On October 18, Qubic disclosed that about 2.94 trillion QU tokens worth $1.4 million were stolen from 1,404 wallets. Developers traced it to weak randomness in some recovery seeds and fixed the software.
Lopp said the answer to failed security is better wallet protection, not giving up self custody. Drawing on more than 15 years of industry incidents, he said custody plans must allow for human error.
He favors multisignature wallets, which require more than one private key to approve a transaction. This means one stolen key cannot unlock all the funds.
Lopp said multisig is not a complete solution on its own. He urged holders to spread keys across different locations and hardware suppliers.
The letter also covered inheritance planning, including what happens if an owner can no longer manage their Bitcoin. Casa offers assisted self custody and does not hold customers’ private keys.
Lopp closed the letter with a warning. He said both criminals and well meaning middlemen could end up controlling someone else’s Bitcoin, leaving holders to decide how much control to give up.
The post Casa’s Jameson Lopp Warns Bitcoin Holders Not to Give Up Self Custody appeared first on Blockonomi.

TLDR
Ethereum developers postponed the Glamsterdam upgrade on the Hoodi testnet, which was set for October 26, 2026, and no new date has been set.
Security firm ChainSecurity warned that gas changes in EIP-8037 and EIP-8038 could weaken protections against insufficient gas griefing attacks.
ChainSecurity says it has found 13 real-world smart contracts that could be affected and is working with those projects on responsible disclosure.
Mainnet users and ETH holders do not need to take action, but node and validator operators must update their client software.
A December mainnet launch is still possible, with a revised Hoodi date expected after Devcon on November 3 to 6.
Ethereum developers have postponed the Glamsterdam upgrade on the Hoodi testnet. The upgrade was set to go live on October 26, 2026. No new date has been announced.
The decision was made during All Core Devs Execution call #248. The Ethereum Foundation said the delay gives developers time to study how some proposed changes interact with smart contracts already on Ethereum.
What the Delay Covers
The postponement removes three planned changes from the October 26 date. These are the Amsterdam execution layer activation, the Gloas consensus layer activation, and a plan to raise Hoodi’s gas limit to 200 million.
The delay does not undo Hoodi’s chain history. Mainnet users and ETH holders do not need to take any action.
Node and validator operators must update their software. Clients such as Lodestar, Besu, and Nethermind must run versions that confirm the October 26 activation has been removed.
Glamsterdam already went live on the Sepolia testnet on October 6. Sepolia is not affected by this delay.
Security Firm Raises Gas Concerns
On October 13, blockchain security firm ChainSecurity warned about two proposals in Glamsterdam, EIP-8037 and EIP-8038. The firm said these changes could weaken protections against an attack known as insufficient gas griefing.
In this type of attack, a caller gives a smart contract too little gas to finish a valid task. ChainSecurity said the new rules could let gas return to a contract after an operation fails, so it keeps running when it would have stopped before.
This could cause problems for contracts that rely on gas checks for security. For example, a contract could remove a user’s claim or block a retry, leaving the user unable to complete a valid action.
ChainSecurity said not all gas-based safety checks would fail. Some would still work, but developers would need to review them against the new rules.
On October 21, security researcher pcaversaccio called the risks “serious” in a GitHub comment. The researcher asked developers to reassess the hard fork.
The Ethereum Foundation had earlier warned that Glamsterdam’s gas model could break some wallets, indexers, and gas estimators that rely on fixed assumptions.
Glamsterdam is Ethereum’s main scaling upgrade for 2026. It includes enshrined proposer-builder separation under EIP-7732, block-level access lists under EIP-7928, and gas repricing under EIP-8037 and EIP-8038.
Developers had been looking at early December for a mainnet launch, depending on successful Hoodi testing. The fourth quarter window remains open, with a revised Hoodi date expected after Devcon, which runs November 3 to 6.
ETH’s price showed little reaction, since the issue affects only the testnet. Institutional buying has continued, with SharpLink deploying $400 million of its ETH treasury on-chain and BitMine adding 12,535 ETH.
On Friday, ChainSecurity said it had found 13 real-world examples of smart contracts that could be affected. The firm did not name the projects and said it is working with them on responsible disclosure. It urged developers to check their contracts as soon as possible.
The post Ethereum Glamsterdam Hoodi Launch Postponed After EIP-8037 Gas Concerns appeared first on Blockonomi.

TLDR
Aave V4 has launched its first externally curated lending markets, managed by Sentora on Ethereum.
Users can borrow Ripple’s RLUSD, PayPal’s PYUSD and Origin’s OUSD against selected crypto assets.
A Bluechip market lets users borrow stablecoins against kBTC, a Bitcoin-backed asset.
Aave DAO keeps ownership of the contracts, and risk-raising changes face a 48-hour timelock.
Aave V4 deposits passed $1 billion in September, with $310 million in active loans.
Aave has launched its first externally curated lending markets on its V4 protocol. The markets are managed by Sentora, an institutional decentralized finance (DeFi) platform.
The three new markets run on Ethereum. They let users borrow three stablecoins against selected crypto assets.
The stablecoins are Ripple’s RLUSD, PayPal’s PYUSD and Origin’s OUSD. Users can access the markets through Aave Pro, the platform’s interface for curated lending products.
Sentora sets the risk rules for each market, including which assets can be used as collateral. Aave DAO keeps ownership of the underlying contracts.
The first externally curated markets on Aave V4 are now live, with strategy by @SentoraHQ.
Users can borrow RLUSD, PYUSD, and OUSD against yield-bearing and blue-chip collateral across three new markets on @ethereum. pic.twitter.com/zFD052SO19
— Aave (@aave) October 22, 2026
How the Sentora Markets Work
All three markets draw from a Sentora Liquidity Hub on Ethereum. The Hub holds the assets available for borrowing and supplies liquidity to each market.
The RLUSD Yield market lets users borrow RLUSD against USDe, PRIME, mWIN and PST. The OUSD Yield market accepts the same collateral but lends OUSD instead.
A third market, called Bluechip, supports borrowing RLUSD, PYUSD and OUSD against kBTC. kBTC is a Bitcoin-backed asset.
Each market has its own borrowing conditions. Sentora manages collateral settings, interest rate curves, price oracles and liquidation rules.
In an October 22 research article, Sentora called the launch the first governance-approved Hub and Spoke deployment run by an external curator on Ethereum. Its architecture diagram also lists a planned PYUSD Yield market, though its collateral has not been confirmed.
Sentora has worked on stablecoin lending before. In August, it approved FXRP as collateral in its RLUSD lending vault on Morpho.
How Aave V4 Manages Lending Risk
Aave V4 uses a Hub and Spoke design. Hubs hold funds and track supplied assets, while Spokes set borrowing rules and liquidation points.
Positions are tracked separately in each Spoke. This means a user’s collateral and debt in one market are not combined with positions in another.
Borrowing costs depend partly on how much of an asset’s liquidity is in use. V4 can also add a risk premium, so borrowers using riskier collateral may pay higher interest.
Any change that raises market risk must pass a 48-hour timelock. New collateral assets need Aave governance review before they can be listed.
Sentora says it has allocated more than $2 billion across onchain strategies. Its Risk Radar system tracks more than 40 DeFi protocols on over 12 blockchains and now covers Aave V4.
The V4 design already supports other products. In September, Aave opened an equities market on Base that accepts seven Coinbase tokenized stocks as collateral for USDC loans, with a $21 million initial borrowing cap.
Aave Labs reported that V4 deposits passed $1 billion in September, with $310 million in active loans.
Aave is also reviewing an October 14 proposal from Babylon Labs. It would allow stablecoin borrowing against native Bitcoin held in vaults on the Bitcoin blockchain, pending governance approval, final risk settings and security checks.
The post Aave V4 Launches First Externally Curated Lending Markets With Sentora appeared first on Blockonomi.

TLDR:
The Ethereum Glamsterdam upgrade will miss its October 26 Hoodi activation as developers review EIP-8037 interactions with mainnet contracts.
The postponement also removes the scheduled increase in Hoodi’s gas limit to 200 million, with no replacement activation date announced.
EIP-8037 changes the cost of creating permanent blockchain data and separates that accounting from execution to manage database growth.
Hoodi node and validator operators must check revised client guidance before October 26, while ETH holders do not need to take action.
The Ethereum Foundation has postponed the Ethereum Glamsterdam upgrade on the Hoodi testnet, previously scheduled for October 26, 2026. Developers want more time to examine how EIP-8037 interacts with smart contracts already running on mainnet. The Foundation announced the decision on October 22 after All Core Developers Execution call 248.
The change also removes the planned increase in Hoodi’s gas limit to 200 million. Developers have not selected a replacement date. The update affects a testing network, and ETH holders do not need to take any action. It changes the rollout configuration without reversing existing Hoodi transactions or chain history.
Ethereum Glamsterdam Upgrade Prompts Gas Pricing Review
EIP-8037 changes the gas charges for creating permanent blockchain data, known as state. This includes new accounts, contract code and storage entries. The proposal aims to prevent database growth from overwhelming node operators as Ethereum increases capacity.
The Ethereum Glamsterdam upgrade would also separate state creation costs from execution costs. That distinction allows larger contract deployments while preserving limits on computational work. Its pricing model targets annual state growth of 120 GiB at a reference block gas limit of 150 million.
That reference figure differs from the 200 million target previously scheduled for Hoodi. One informs the proposed storage pricing model; the other sets the test network’s planned block capacity.
Under EIP-8037, a dedicated gas reserve covers state creation charges first. Execution work draws from a separate allowance. The specification uses this arrangement to avoid squeezing larger contract deployments into the same cap as computation. State creation can still consume execution allowance when its reserve runs out.
Earlier testing helps explain the compatibility concerns surrounding the Ethereum Glamsterdam upgrade. In August, Foundation teams reported replaying historical mainnet transactions under revised gas rules. Their assessment covered both EIP-8037 and a separate proposal that changes state access costs.
Most transactions showed no change, while some needed higher gas limits to complete. A smaller group still failed after substantial increases. Those contracts often relied on fixed gas allowances or code that checks how much gas remains.
The Foundation said the large majority of contracts were unaffected by that earlier review. Its teams had started contacting builders facing the greatest impact. Those findings provide background, but do not identify the specific interactions driving the October postponement.
Wallet and infrastructure teams also need to update gas estimation for the proposed rules. The August guidance warned that cached gas constants can underestimate transaction requirements. Developers can search affected contracts by address using the Foundation’s tool.
Hoodi Testnet Delay Changes the Planned Scaling Rollout
The Ethereum Glamsterdam upgrade had already activated on Sepolia on October 6, according to the original rollout announcement. Hoodi was the next scheduled public testnet deployment. The package combines Amsterdam execution changes with Gloas consensus changes.
Beyond gas pricing, the Ethereum Glamsterdam upgrade changes how participants build and verify blocks. It brings proposer and builder separation into the protocol. Another feature records which accounts and storage locations each block accesses, supporting parallel reads and transaction validation.
The protocol also handles payments from builders to proposers, reducing reliance on trusted intermediaries. Separating consensus checks from execution checks gives validators more time to process transaction payloads.
For Hoodi testnet operators, the immediate task involves checking revised client instructions before October 26. Both execution and consensus software must reflect the removed activation. Custom network configurations also need to match the updated schedule.
The Foundation cautioned that earlier release tables do not confirm support for the postponement. Operators should check release notes explicitly covering the change. Validators must also review guidance for beacon nodes, validator clients and external block builders.
The post Ethereum Glamsterdam Upgrade Delayed for Smart Contract Review appeared first on Blockonomi.

TLDR:
HSBC RedCoin stablecoin starts a phased rollout on October 23, bringing peer-to-peer transfers and merchant payments to PayMe’s 3.3 million users.
PayMe users can activate wallets after updating the app, without opening another account or keeping a minimum balance; full access is expected before the weekend.
HSBC plans to add RedCoin to its Hong Kong mobile banking app by year-end, enabling tokenized money market fund subscriptions starting at HK$100.
Tokenized gold and third-party funds are planned for a later stage, after HSBC received its Hong Kong stablecoin issuer license in April 2026.
HSBC RedCoin stablecoin is rolling out to more than 3.3 million PayMe users in Hong Kong. The phased consumer launch for PayMe begins Friday, October 23. The HKD-backed stablecoin supports peer-to-peer transfers and merchant payments within PayMe during its first phase.
HSBC expects full availability before the weekend, the South China Morning Post reports. Customers can activate a wallet after updating the app, without opening another account or meeting a minimum balance. They can select the wallet for transfers through PayMe. The launch gives HSBC a route to introduce a stablecoin through a payment service many local customers already use.
HSBC RedCoin Stablecoin Begins PayMe Payment Rollout
The HSBC RedCoin stablecoin’s first phase centers on routine payments. PayMe users can send RedCoin to other people and pay merchants through the app. HSBC has not announced other payment functions for this launch. Because the rollout is staged, access will not arrive for every user simultaneously. The bank expects the service to reach full availability before the weekend. The 3.3 million figure describes PayMe’s user base, not confirmed wallet activations.
HSBC Launches HKD-Backed RedCoin Stablecoin for 3.3 Million PayMe Users in Hong Kong
According to the South China Morning Post, HSBC is rolling out its Hong Kong dollar-backed stablecoin, RedCoin, to more than 3.3 million PayMe users starting October 23. The initial phase… pic.twitter.com/dGitKCfD8Y
— Wu Blockchain (@WuBlockchain) October 23, 2026
Wallet setup for the HSBC RedCoin stablecoin uses the existing PayMe experience. Customers need only update the app and select the wallet. They do not need another account or a minimum balance. PayMe head Lawrence Li said transfers would be instant through an interface closely aligned with the current app. This keeps activation within a familiar payment service.
The Hong Kong dollar backing ties RedCoin’s denomination to the local currency. That gives it a payment role distinct from crypto assets whose market prices fluctuate. The launch details do not specify its reserve composition, redemption terms, blockchain network, transaction fees or merchant coverage. Those details may shape how users and businesses assess the new service.
HSBC can offer RedCoin through an app its customers already use for payments. That may make the token easier to try than a service requiring a separate crypto platform. That could ease adoption for PayMe users. Use still depends on customers choosing RedCoin and merchants accepting it. The announcement lists the initial functions. It does not say how many PayMe merchants will support RedCoin at launch.
HSBC RedCoin Stablecoin Set for Investment App Expansion
The HSBC RedCoin stablecoin rollout is planned to extend beyond PayMe payments. HSBC plans to integrate the token into its Hong Kong mobile banking app by year-end. The bank says the app will let users subscribe to tokenized money market funds, starting at HK$100. This would add an investment use alongside transfers and merchant payments.
Tokenized gold and funds offered by third parties are also planned for a later stage. HSBC has not provided launch dates or additional access terms for those products. The proposed HK$100 starting amount establishes a minimum entry point for the money market fund feature. Product availability will depend on HSBC’s rollout and the terms it sets for each offering.
HSBC received its stablecoin issuer license from the Hong Kong Monetary Authority in April 2026. The HSBC RedCoin stablecoin rollout followed that approval. Hong Kong has been seeking to position itself as a hub for digital assets. The license came before the retail launch. RedCoin enters PayMe before HSBC’s planned investment expansion.
The HSBC RedCoin stablecoin’s phased approach links two of HSBC’s services: PayMe and its mobile banking app. PayMe is the first distribution channel; the banking app is intended to carry RedCoin into tokenized funds. The practical test will be whether customers activate wallets, transfer the token and use it for payments. Broader investment access remains a future step, with the initial PayMe rollout beginning October 23.
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