An attacker exploited the custom FlashLoopAdapter contract on Ethereum linked to leveraged Aave V3 positions, draining about $305,000 from two Safe wallets. Defimon Alerts detected the attack at 15:08:57 UTC on Thursday, October 1, 2026. SlowMist later found an access control flaw that allowed the attacker to bypass the adapter’s wallet checks. The attacker used a fake Safe contract to pass an authorization check meant for legitimate wallets. FlashLoopAdapter allows Safe wallets to manage leveraged positions through Aave V3. However, the adapter could not reliably confirm that the caller represented a genuine Safe wallet. The attacker exploited that weakness and…
Author: Austin Mwithalii
MetaMask began exiting affected Ethereum validators on September 30 after identifying a security incident within its infrastructure. The wallet provider said the incident affected part of its systems but posed no immediate threat to MetaMask wallets. The company said it is investigating the incident with external partners and security advisers. MetaMask has not identified the affected systems or explained how attackers accessed its infrastructure. MetaMask has not confirmed the number of affected validators or the amount of ETH connected to them. The company said its staking service does not control withdrawal keys for clients’ staked ETH. The company also said…
Lloyds Banking Group and Visa have completed a seven (7)-day pilot using USDC for $750,000 in cross-border settlements. The trial involved real U.S. dollar obligations between Lloyds’ Corporate Markets branch in Jersey and Visa in the United States. Lloyds purchased USDC through Archax, a UK-regulated digital asset exchange, before transferring the funds to Visa. Lloyds said Visa received the settlement funds in under one hour, including transactions completed during the weekend. The pilot tested whether Lloyds could use USDC to settle payment obligations when traditional banking systems were outside normal operating hours. Lloyds and Visa used the trial to settle…
Coinbase received approval from the Commodity Futures Trading Commission (CFTC) to operate Coinbase Clearing LLC in the United States. The approval allows the company to clear fully collateralised futures, options on futures, and swaps through its own clearing operation. Coinbase said the clearinghouse will use Circle’s USDC as collateral and support settlements around the clock. The approval gives Coinbase control over clearing for contracts that meet the CFTC’s collateral requirements. It also completes the company’s regulated US derivatives structure alongside Coinbase Financial Markets and Coinbase Derivatives. Coinbase Financial Markets operates as its futures commission merchant, while Coinbase Derivatives runs its…
Bitget suspended withdrawals on September 24, 2026 after attackers made unauthorised transfers worth an estimated $351.6 million from its wallets. The exchange detected the transactions at 18:31 UTC and activated emergency security measures within minutes. Bitget said the transfers affected parts of its hot and warm wallet infrastructure, while its cold wallets remained secure. Bitget responded by stopping withdrawals but kept its deposits and trading available on the platform. The exchange also flagged wallet addresses linked to the transfers and contacted law enforcement agencies and blockchain security firms. Bitget said the affected transactions did not change the account balances of…
Hyperliquid open interest topped $18 billion on Wednesday, September 23, 2026 as traders increased positions across crypto and non-crypto perpetual markets. The figure exceeded the previous $16.36 billion record that traders reached on Saturday, September 19, 2026. Hyperliquid therefore added about $1.64 billion in open positions within four days. Hyperliquid’s open interest rose from above $13 billion on August 31 to more than $18 billion on September 23. DefiLlama Research recorded about $220 billion in monthly perpetual trading volume when open interest crossed $13 billion. Hyperliquid therefore added almost $5 billion in open positions within several weeks. HIP 3 Expands…
Whitehat operators moved 52.37 BTC linked to the July Coldcard exploit into an address tied to Crypto Recovery Trust. Galaxy Digital researcher Alex Thorn identified the Bitcoin through blockchain transactions linked to the exploit. Thorn linked the funds to the Wave 2 cluster and wallet footprints labelled AA, AU, and AX. The Bitcoin network recorded the consolidation in block 967,948 during the transfer. Thorn said the 52.37 BTC equals 2.8% of the Coldcard exploit funds that Galaxy tracks. The transaction included an OP_RETURN message that directed users to Crypto Recovery Trust’s claims website. Crypto Recovery Trust operates as a Wyoming…
SecondFi, a self-custody platform, has warned affected users not to claim upcoming NIGHT allocations from compromised wallets. Some users can claim their NIGHT tokens on Tuesday, September 22 through the original addresses linked to their allocations. The allocations came through Midnight’s Glacier Drop program for eligible users. Attackers compromised those addresses during SecondFi’s June 21–23 security incident. Midnight’s claim system requires each allocation holder to use the original wallet address. Users cannot transfer an allocation before completing the claim. Therefore, affected users cannot move NIGHT to newly secured wallets before redemption. SecondFi has advised them to avoid claiming while the…
Coinbase partnered with Stablecore on Thursday, September 17 to bring digital asset services into U.S. banking systems. The partnership covers crypto trading, custody, staking, and stablecoin payments for participating banks and credit unions. Stablecore’s existing integrations reach technology systems used by more than 3,000 U.S. banks and credit unions. However, none of the 3,000 institutions have signed agreements with Coinbase under this partnership. Stablecore will connect Coinbase’s digital asset infrastructure with the banking systems used by participating financial institutions. The integration will allow banks to add crypto services without replacing their existing banking platforms. Coinbase said Amarillo National Bank in…
Kyobo Life Insurance and SBI Digital Practice completed a pilot that tested direct exchanges between yen- and won-denominated stablecoins. Kyobo Life and SBI Digital Practice ran the pilot from July in the Canton Network test environment. The pilot modelled institutional fund transfers, foreign exchange transactions, and settlement between Japan and South Korea. The companies tested direct yen-to-won stablecoin exchanges without converting the funds through the U.S. dollar. Kyobo Life and SBI Digital Practice did not move real institutional funds or live stablecoins during the pilot. The companies used test tokens to simulate institutional digital asset transfers and cross-border settlement. The…