Today in crypto, Binance-affiliated companies sued RedotPay founders over alleged losses of nearly $473 million, as Ethereum’s latest improvement proposal has sparked a fierce debate over the network’s long-term economics. Plus, investigators uncovered more attackers behind the $100 million Coldcard wallet exploit.
Binance sues RedotPay over alleged $473 million user losses: Report
Binance-affiliated companies have sued the founders of Hong Kong-based cryptocurrency payments company RedotPay, alleging it diverted more than 470,000 users from Binance Card in breach of their commercial agreement.
The plaintiffs seek nearly $473 million in damages, alleging the conduct contributed to RedotPay’s valuation as the company considers a potential initial public offering, Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained.
RedotPay said it is defending the proceedings and rejected what it described as “unfounded allegations” against the company and its co-founders. “RedotPay is strenuously defending the proceedings,” a RedotPay spokesperson told Cointelegraph, adding that it will respond through the appropriate legal process.
The legal dispute comes as crypto payments companies compete to expand stablecoin-based spending products, with RedotPay reporting rapid growth and a global user base of more than 8 million customers.
Ethereum researchers want to rein in staking; critics say it could backfire
A group of six Ethereum researchers and developers, including Ethereum Foundation’s Justin Drake, has proposed changing the network’s issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises.
The draft, called the Tapered Issuance Burn and currently being assigned the provisional number EIP-8363, would burn an increasing fraction of validators’ consensus rewards as the amount of staked ETH approaches a fixed threshold of 60.25 million ETH (around 50% of the current ETH supply), at which point the deduction hits 100%. The changes would phase in over 18 months.
The proposal has triggered backlash from developers, stakers and DeFi founders, who warn that the reward cuts could force out solo validators before larger institutions are affected, weaken institutional demand for ETH, and disrupt DeFi markets built around staking yield.
One of the proposal’s authors, Jérôme de Tychey, said the changes are needed to address the rising share of Ether being staked, which passed 33% in April. The authors argue continued staking growth could concentrate ETH in large custodians and liquid staking providers, while unchecked issuance erodes Ether’s role as a neutral, trustless store of value.
Galaxy identifies at least 15 attackers behind Coldcard exploit
Galaxy Digital said it identified at least 15 attackers who exploited the Coldcard wallet vulnerability, with estimated losses now reaching $100 million and potentially climbing to $130 million across four attack waves.
Galaxy’s head of research, Alex Thorn, said new victim reports helped uncover previously unknown attackers, including one that allegedly siphoned 12 BTC from 126 addresses after a victim reported losing less than 1 BTC. Unlike centralized exchange hacks, the decentralized nature of the exploit made it more difficult to identify all of the actors involved.
The incident also reignited debate over hardware wallet security and AI’s growing role in vulnerability research. Dragonfly managing partner Haseeb Qureshi argued that “about $2 of AI hardening” could have prevented the exploit, citing reports that AI models were able to rediscover the underlying vulnerability within minutes after it became public. However, Tokenomist data lead Tatsapat Saerejittima cautioned that the claims lacked rigorous testing and should not be interpreted as evidence that AI could have found the flaw before disclosure.
Castle Labs co-founder Francesco also said AI is rapidly lowering the cost of discovering software bugs, adding that a firmware issue reducing Coldcard’s private key entropy likely made the vulnerability easier to exploit.