Author: tristan

Drift revealed that the $280 million exploit on its Solana based trading platform was caused by a highly sophisticated administrative takeover involving weeks of preparation. The platform said a malicious actor gained unauthorized access using durable nonce accounts, allowing pre-signed transactions to be executed later.

According to Drift, the attacker secured multisig transaction approvals in advance, likely through social engineering or misrepresentation of transactions. This enabled the takeover of Security Council administrative powers, allowing the attacker to introduce a malicious asset and remove withdrawal limits. Drift confirmed the incident was not caused by a smart contract flaw or seed phrase compromise.

All deposits across borrow-lend, vault, and trading systems were affected. Stolen tokens included JLP, SOL, USDC, cbBTC, and wBTC. As a precaution, all remaining protocol functions were frozen, and the compromised wallet was removed from the multisig. Drift also stated it is working with exchanges, bridges, and law enforcement to trace and freeze the stolen funds.

ZachXBT Criticism of Circle USDC Response

Onchain investigator ZachXBT criticized Circle over its handling of USDC tied to the exploit. He claimed more than $230 million in USDC linked to the attack was transferred from Solana to Ethereum through the Cross-Chain Transfer Protocol without being frozen.

ZachXBT stated Circle had roughly six hours to act but did not freeze the funds. He also referenced an earlier incident in which Circle froze 16 USDC wallets tied to separate businesses without issuing an official explanation, raising concerns among community members about centralized control over stablecoin operations.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Nishad Singh, the former head of engineering at FTX, has agreed to pay $3.7 million to resolve a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) over his alleged role in the crypto exchange’s collapse and the misappropriation of user funds.

CFTC Orders Disgorgement and Trading Bans

Under the supplemental consent order, Singh will pay $3.7 million in disgorgement and faces a five-year ban on trading in markets along with an eight-year registration ban, preventing him from obtaining a license to operate in the sector. The CFTC stated that the order resolves its enforcement action against Singh and reflects both the seriousness of his violations and his cooperation with investigators.

FTX’s bankruptcy in November 2022 caused massive disruptions in the crypto industry, erasing billions in market liquidity and prompting multiple regulatory actions. Singh was charged by the CFTC in February 2023 with fraud by misappropriation and aiding and abetting fraud committed by former CEO Sam Bankman-Fried.

Singh’s Cooperation and Legal Outcomes

Singh also faced related cases from the Securities and Exchange Commission and US prosecutors. He received time served and three years of supervised release after cooperating with authorities and testifying against Bankman-Fried. His attorneys highlighted Singh’s limited role and extensive cooperation in these matters.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Alabama has become the second US state, after Wyoming, to grant decentralized autonomous organizations (DAOs) legal recognition under the Decentralized Unincorporated Nonprofit Association (DUNA) Act. Senate Bill 277, introduced by Republican Senator Lance Bell in February, passed the House 82-7 with 16 abstentions on March 17 and was signed into law by Governor Kay Ivey.

Legal Protections and Governance for DAOs

The DUNA Act provides DAOs with legal status and limited liability protections, allowing decentralized communities to build, govern, contract, and scale in the real world. DAOs qualifying under the law must have at least 100 members united for a common nonprofit purpose, such as managing a blockchain network or smart contract system. Governance can operate entirely through blockchain technology, including on-chain voting, proposals, and consensus mechanisms.

DAOs recognized under the law gain full legal entity status, enabling them to own property, enter contracts, and sue or be sued. Individual members and administrators are shielded from personal liability, providing certainty and protection for participants in decentralized communities.

Expanding DAO Legislation Across the US

Wyoming was the first state to pass DUNA legislation, with its governor signing the law in March 2024. West Virginia has a similar bill awaiting approval. Globally, over 13,000 DAOs exist with collective treasuries exceeding $24.5 billion, with Ethereum and its layer-2 networks hosting over 85% of these organizations.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

AI and crypto company Genius Group has sold its remaining Bitcoin holdings in Q1 2026 to pay off $8.5 million of debt, marking a significant shift from its previous “Bitcoin first” strategy. The company stated it plans to rebuild its Bitcoin treasury when market conditions improve.

Shift from “Bitcoin First” Strategy

In November 2024, Genius Group had pledged to hold 90% or more of its reserves in Bitcoin. At the start of 2026, the company held 84 BTC valued at approximately $5.7 million, but these holdings have gradually declined since April 2025, when a US court temporarily barred it from expanding its Bitcoin treasury. Purchases resumed in June 2025 before the full liquidation.

Genius Group reported strong Q1 results, with revenue rising 171% year-on-year to $3.3 million and gross profit up 228% to $2 million. The company swung from a $500,000 operating loss in Q1 2025 to a $2.7 million net profit in Q1 2026.

Bitcoin Treasury Liquidations in 2026

Genius Group is part of a broader trend of corporate Bitcoin sell-offs this year. MARA Holdings sold 15,133 BTC for $1.1 billion in March, Bitdeer liquidated 943 BTC, and other companies like Cango Inc. and GD Culture Group have also reduced holdings.

In contrast, Michael Saylor’s Strategy continues to increase its Bitcoin treasury, adding 1,031 BTC on March 23 and now holding 89,581 BTC worth $6.1 billion, dominating corporate Bitcoin purchases in 2026.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Japan based Metaplanet has strengthened its Bitcoin accumulation strategy by acquiring 5,075 BTC during the first quarter of 2026 for approximately $398 million. The purchase reflects an average acquisition price of about $78,000 per Bitcoin and highlights the company’s continued focus on expanding its digital asset reserves.

As of March 31, 2026, Metaplanet holds a total of 40,177 BTC, acquired for roughly $3.9 billion at an average cost basis of approximately $97,000 per Bitcoin. The company also reported generating a Bitcoin yield of 2.8% year-to-date, indicating steady performance from its treasury strategy.

Metaplanet Surpasses MARA Holdings in Global Bitcoin Treasury Rankings

With its latest acquisitions, Metaplanet has overtaken MARA Holdings to become the third largest corporate Bitcoin holder worldwide. The shift occurred after MARA Holdings significantly reduced its Bitcoin stack in recent months.

Twenty One Capital holds the second position globally with 43,514 BTC, while Strategy remains the largest corporate Bitcoin holder by a wide margin, maintaining more than 762,000 BTC. These rankings highlight the growing competition among corporations accumulating Bitcoin as a treasury asset.

Following the announcement of its expanded holdings, shares of Metaplanet declined by 2%, trading at 302 yen, equivalent to approximately $1.89. The price movement reflects typical market adjustments despite the company’s continued growth in Bitcoin reserves.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

Coinbase Chief Legal Officer Paul Grewal said lawmakers are close to reaching an agreement on the stablecoin yield debate within the proposed Clarity Act. Speaking during an interview on Fox Business, Grewal stated that meaningful progress is being made despite ongoing disagreements about whether stablecoin platforms should be allowed to offer rewards on idle balances.

Grewal emphasized that negotiations are nearing completion, noting that policymakers increasingly recognize the importance of balancing consumer rewards with broader regulatory safeguards. He added that the legislation aligns with Donald Trump’s stated goal of positioning the United States as a global leader in cryptocurrency innovation.

Banking Sector Pushes Back Against Stablecoin Rewards

The U.S. banking sector has actively lobbied lawmakers to include language preventing crypto platforms from offering yield on stablecoin holdings. Banks argue that allowing such rewards could create incentives for customers to move deposits away from traditional banking institutions, potentially leading to significant deposit flight.

However, Grewal challenged those claims, stating there is no factual evidence showing that stablecoins have caused deposit flight from banks. He acknowledged that the risk is often discussed in theory, particularly regarding community banks, but maintained that real-world data has not supported those concerns.

Senate Review and Long-Term Industry Impact Expected

Grewal expressed confidence that legislative progress will continue in the coming weeks, with a markup hearing expected before the US Senate Banking Committee ahead of a possible floor vote.

Meanwhile, Brian Armstrong has repeatedly opposed versions of the legislation that would restrict rewards on idle stablecoin balances, arguing such limits could slow innovation and disadvantage consumers.

During the same period, Coinbase Global Inc. shares listed on the Nasdaq have declined significantly, falling about 50% over the past six months. The stock closed down 0.9% on Wednesday at $172.99, reflecting continued pressure from the broader downturn in cryptocurrency markets.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.

The US Department of the Treasury has issued a notice of proposed rulemaking seeking public input on state-level stablecoin governance frameworks under the Guiding and Establishing National Innovation for US Stablecoins Act. The proposal arrives as the market capitalization of dollar-pegged stablecoins approaches $300 billion, highlighting the growing importance of regulatory clarity in the sector.

Under the GENIUS Act framework, states will have the authority to regulate stablecoin issuers with a market capitalization below $10 billion. However, state-level regulations must not significantly deviate from federal standards and must produce outcomes that are equally strict or more protective than federal rules.

Mandatory Reserve Backing and Federal Compliance Requirements

The Treasury outlined several mandatory rules that state frameworks must follow. These include maintaining a 1:1 reserve backing with cash or high-quality cash equivalents and providing monthly disclosure reports to regulators. Stablecoin issuers must also fully comply with federal anti-money laundering and sanctions requirements.

Additionally, the proposal includes a ban on token rehypothecation, meaning issuers cannot reuse the same collateral to support multiple claims. States are permitted to introduce stricter liquidity standards, reserve requirements, risk management practices, and enforcement mechanisms, provided they exceed federal minimum thresholds.

Federal Oversight Triggered After $10 Billion Threshold

The Treasury stated that stablecoin issuers exceeding the $10 billion market capitalization threshold will automatically transition to federal regulatory oversight. This means the largest stablecoin issuers will ultimately fall under direct federal jurisdiction.

The public has been given 60 days to submit feedback on the proposed rules. The GENIUS Act became law in July after being signed by Donald Trump, marking a significant milestone in the development of comprehensive cryptocurrency regulation, though uncertainty remains regarding the treatment of yield-bearing stablecoins.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.