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Enterprise AI Agents Still Lack Independent Audit Trails. Theta and XYO Want to Change That

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Enterprise AI Agents Still Lack Independent Audit Trails. Theta and XYO Want to Change That

Theta Labs and XYO are developing a blockchain-based verification layer for AI agents running on Theta EdgeCloud, aiming to give enterprises an independent record of whether agent workloads were executed on reliable infrastructure.

The partnership brings together two long-running DePIN projects.

Theta operates a hybrid cloud-edge computing platform for AI, video, rendering and gaming, while XYO has built infrastructure around cryptographic proof for real-world data and recently expanded into a data-focused Layer 1 network.

The companies said XYO nodes will monitor Theta EdgeCloud workloads and record quality-of-service data, including uptime, latency, speed and throughput.

Those measurements will be written to XYO Layer One and XYO Data Lakes, creating tamper-evident attestations for AI agent activity.

The goal is to address a growing problem in enterprise AI: agents are being given more autonomy, but their execution records often remain inside systems controlled by the same provider responsible for running the infrastructure.

That creates a weak point for procurement, compliance and incident review.

“Enterprises don’t deploy infrastructure on good faith. They require auditable records, defensible performance data, and clear accountability chains,” Markus Levin, Co-founder of XYO, said in a statement shared with AlexaBlockchain.

“This collaboration gives organizations running AI agents on EdgeCloud independently verified, tamper-evident attestations settled on XYO Layer One. For compliance teams, procurement leads, and anyone responsible for infrastructure decisions, that’s non-negotiable. That’s the standard that agentic AI deployments now need to meet,” Markus added.

Why does it matter?

AI agents are moving from experimental tools to production systems.

McKinsey’s 2025 global AI survey found that 88% of organizations used AI in at least one business function, while 23% were scaling agentic AI systems somewhere in their enterprise.

That shift raises a practical question.

When an autonomous system gives a wrong answer, misses a step, overspends, or fails to respond, companies need to know whether the failure came from the model, the data source, the workflow, or the underlying compute layer.

Theta and XYO are targeting the infrastructure part of that chain.

The partnership does not verify whether an AI answer is factually correct. Instead, it focuses on whether the workload ran under measurable service conditions.

That distinction matters.

For enterprise users, verifiable uptime, latency and throughput data can support service-level agreement checks, vendor reviews, insurance claims, regulatory reporting and post-incident investigations.

Theta brings production AI agent use cases

Theta EdgeCloud is already being used in sports and entertainment.

Theta has already done AI agent deployments or planned deployments involving Olympique de Marseille, the Houston Rockets, Philadelphia Union, San Jose Earthquakes and other sports organizations.

The Houston Rockets partnered with Theta Labs on “ClutchBot,” an AI agent for the team’s official website.

The New Jersey Devils also launched an AI chatbot powered by Theta EdgeCloud, describing it as an educational and entertainment resource for fans.

“As our AI agents handle thousands of fan interactions across the NBA, NHL, MLS and beyond, independent verification of infrastructure performance is becoming a baseline expectation,” Mitch Liu, CEO of Theta Labs, said.

“XYO brings exactly that to EdgeCloud. A third-party attestation layer that gives our customers, and their fans, confidence that every interaction is backed by infrastructure performing as promised,” Mitch added.

Theta’s broader network also includes enterprise validators such as Google, Samsung and Sony.

The compliance angle

The timing is relevant because AI governance rules are becoming more demanding.

The EU AI Act requires high-risk AI systems to support automatic event logging over their lifetime. Article 26 also requires deployers of high-risk AI systems to keep logs for at least six months where those logs are under their control.

That does not mean every AI chatbot will fall under high-risk rules.

But it does show where enterprise AI governance is heading: more traceability, clearer responsibility and better records of system behavior.

For DePIN networks, this creates a possible opening.

Decentralized compute projects have often competed on cost, GPU access and availability. Theta and XYO are trying to add another layer: independent proof that the infrastructure performed as claimed.

The idea is part of a broader move toward verifiable compute and tamper-evident records

Space and Time, a Microsoft-backed verifiable data warehouse, uses Proof of SQL to let users prove that database queries were executed correctly without tampering. Google Cloud has also described Space and Time’s work as verifiable compute for Web3 developers.

Chainlink’s Proof of Reserve takes a related approach in digital assets, using oracle infrastructure to provide automated verification of reserves backing tokenized or wrapped assets.

In AI governance, open-source tools are also appearing.

Asqav, for example, signs AI agent actions and chains them into a tamper-evident audit trail.

Theta and XYO’s effort differs by focusing on infrastructure performance for agent workloads, rather than database queries, asset reserves, or internal action logs.

The larger test

The partnership gives Theta a way to differentiate EdgeCloud beyond cheaper or decentralized compute.

It gives XYO a new enterprise use case for its proof infrastructure.

But adoption will depend on whether enterprises treat third-party blockchain attestations as useful evidence in real procurement and compliance workflows.

However, the move reflects a larger shift in AI infrastructure.

As AI agents get more autonomy, companies are no longer asking only whether the model can perform a task. They are also asking whether every part of the system can be independently verified when something goes wrong.

The above article “Enterprise AI Agents Still Lack Independent Audit Trails. Theta and XYO Want to Change That” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/theta-xyo-build-blockchain-audit-trail-for-enterprise-ai-agents/

Read Also: Is India Moving From Crypto Uncertainty Toward a Clearer Policy Framework?

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

Image Credits: Shutterstock, Canva, Wiki Commons

OKX Ventures buys $53 million stake in Korea’s Coinone exchange

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OKX Ventures buys $53 million stake in Korea’s Coinone exchange

OKX Ventures, the investment arm of crypto exchange OKX, will invest 80 billion won ($53 million) for a 19.6% stake in South Korean cryptocurrency exchange Coinone, the companies announced Friday, marking one of the largest recent investments by a global crypto firm into Korea’s digital asset sector.

Korea Investment & Securities (KIS), one of South Korea’s largest brokerages, will make an identical investment and also hold a 19.6% stake upon completion of the transaction, which remains subject to regulatory approval.

The combined 160 billion-won deal will be structured through a mix of secondary share purchases from existing shareholders and subscriptions for newly issued shares, according to a company statement.

Following the investment, Coinone CEO Cha Myunghun is expected to remain the exchange’s largest shareholder with a 27.8% stake and retain management control. Com2uS Holdings and its affiliates will hold 25%, while OKX Ventures and KIS will become joint third-largest shareholders.

The deal formalizes discussions first reported by Yonhap earlier this month, which said OKX and KIS were considering acquiring roughly 20% stakes in Coinone.

Bitcoin Price Falls 5.5% In 5 Days To Below 73,000

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Bitcoin Price Falls 5.5% In 5 Days To Below 73,000

Bitcoin price has fallen more than 5.5% over the past week, sliding from above $77,000 to around $72,600 on Thursday as risk sentiment weakened. The move extends a broader pullback from early May’s highs above $82,000, leaving bitcoin price trading near 6–7% lower week-on-week as surging spot ETF outflows and US‑Iran tensions pressure prices.

BlackRock’s iShares Bitcoin Trust recorded $527.84 million in net outflows on Wednesday, its second-largest single-day withdrawal since the fund launched in January 2024 — falling short of the all-time record by roughly $500,000. The figure lands within a broader retreat across the U.S. spot bitcoin ETF complex, which together shed $733.43 million that day, the largest combined daily outflow since late January.

Despite the headline numbers, context matters. IBIT remains up more than $2 billion in year-to-date flows and has accumulated $64 billion in lifetime net inflows since launch, placing it in the top 2% of all ETFs by cumulative flows. Wednesday’s $528 million draw represents less than 1% of that total.

The outflow did not occur in isolation. Bitcoin price fell through the $73,000 level during Asian trading hours Thursday, declining 3.4% over 24 hours to $72,978. The immediate catalyst was a fresh round of U.S. airstrikes on an Iranian military site near the Strait of Hormuz, reigniting geopolitical risk that markets had begun to discount.

As investors redeemed ETF shares, BlackRock and other issuers were forced to sell underlying bitcoin to settle those exits, feeding the price decline and the outflow data in a loop.

Alongside IBIT, Grayscale’s GBTC shed $104.76 million and Fidelity’s FBTC lost $60.30 million on the same day. Morgan Stanley’s MSBT was the only spot bitcoin ETF to post positive flows, drawing in $4.3 million, according to Bitcoin Magazine Pro data.

The massive Bitcoin block trade

One factor feeding Wednesday’s outflow number was a transaction that took place Tuesday. A single investor sold $1.29 billion of IBIT shares in a dark-pool block trade — a privately negotiated transaction designed to let large players move substantial size without tipping off the broader market. Bitcoin price was around $78,000 at the time.

Bloomberg Senior ETF Analyst Eric Balchunas flagged the trade, noting it involved 29.2 million IBIT shares and helped push total bitcoin ETF volume on Tuesday to $4.4 billion, the highest since April 17.

A dark-pool sale is not the same as a net outflow. Buyers absorb the other side of the transaction, so the fund itself does not necessarily see redemptions. IBIT’s actual net outflow on Tuesday came to $192.44 million — large, but separate from the block trade headline. The two events together point to institutional players reducing bitcoin exposure, whether through direct redemptions or secondary market exits.

Lacie Zhang, Research Analyst at Bitget Wallet, told Bitcoin Magazine that the reported $1.3 billion IBIT block sale showed “the market absorbed it without disorder,” highlighting how ETF infrastructure has “changed Bitcoin’s liquidity profile” by routing large trades through institutional channels rather than triggering a visible crash.

She added that continued outflows signal “a period of institutional cooling,” with Bitcoin consolidating in the $74K–$79K range as “Wall Street’s market plumbing acted as a shock absorber,” while a move above $80K is needed to restore upside momentum.

The outflow data reflects a trend that has been building through May. Net ETF accumulation across the year had thinned to approximately 4,500 BTC, and May flipped from the steady buying seen in March and April into net distribution. 

Bitcoin price has fallen from above $82,000 on May 6 to under $73,000, and the ETF channel that drove much of the 2025 bull run has spent the past several weeks pulling capital in the opposite direction.

Bitcoin price debasement 

JPMorgan added another layer to the picture Wednesday, noting that the pandemic-era “debasement trade” — the thesis that bitcoin and gold serve as hedges against currency erosion — appears to be cooling. 

The bank suggested that institutional futures positions and ETF outflows in both assets reflect investors pricing in a potential U.S.-Iran resolution before one materializes.

IBIT has weathered extended outflow streaks before during this cycle without a permanent reversal, with capital returning each time the macro backdrop cleared. Whether this episode follows that pattern depends on the trajectory of Middle East tensions and whether the rotation out of crypto into equities proves short-lived or structural.

At the time of writing, the bitcoin price is near $72,800.

French Regulator Gives Crypto Firms June 30 Deadline for MiCA Licensing

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French Regulator Gives Crypto Firms June 30 Deadline for MiCA Licensing

The French Financial Markets Authority (AMF) warned that crypto companies operating in the country without a license have until June 30 to acquire the permits or exit the country.

AMF President Marie-Anne Barbat-Layani told a press event on Thursday that crypto companies that fail to obtain a license by the deadline must have “orderly wind-down ⁠plans” to offload customers and end their operations, according to Reuters.

Under the European Union’s Markets in Crypto Assets (MiCA) regulatory framework, crypto service providers are required to have licenses to operate, but can acquire a license in any of the 27 EU member states and “passport” the license to any of the other member nations.

Cointelegraph contacted AMF about the looming deadline, but did not receive an immediate response. 

With the MiCA deadlines looming, tensions are mounting between EU member states about licensing requirements and whether control over Europe’s crypto regulations should be centralized by the European Securities and Markets Authority (ESMA).

Related: EU opens consultation on MiCA stablecoin rules and DeFi gaps

Disagreements over MiCA control could disrupt current passport model

ESMA is a Paris-based organization that can potentially create a conflict of interest over crypto regulations in the EU, critics of the move say.

That’s because centralizing control with the agency takes regulatory control away from nation-states, potentially threatening the passporting of licenses across the EU region.

A spokesperson for Malta’s Financial Services Authority (MFSA) told Cointelegraph that changing the MiCA regulatory structure is “premature,” adding that regulators need time to assess the impacts of MiCA, which became legally applicable in 2024.

In April 2026, Peter Kerstens, an adviser on technological innovation, digital transformation and cybersecurity at the European Commission’s financial services department, said that MiCA may be overhauled to regulate a more mature crypto industry.

Kerstens said that EU regulators would seek consultation from the public about any potential overhaul to MiCA that would alter existing provisions or add new requirements for crypto service providers operating in the region.

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Kraken Launches Bitcoin Vault Earning Product Offering up to 2.5% BTC Rewards

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Kraken Launches Bitcoin Vault Earning Product Offering up to 2.5% BTC Rewards

Kraken has announced Bitcoin Vault, a new product within Kraken Earn that allows customers to earn up to 2.5% in BTC-denominated rewards on their Bitcoin holdings.

Kraken has launched Bitcoin Vault, a new earning product designed for long-term Bitcoin holders to generate yield on their BTC holdings.

The product offers customers up to 2.5% in BTC-denominated rewards while maintaining custody of their Bitcoin. Bitcoin Vault is powered by Veda, with strategy design and risk curation handled by Sentora.

Bitcoin Vault is integrated into Kraken Earn, the exchange’s suite of yield-generating products for cryptocurrency holders. The product is designed to allocate customer Bitcoin to established onchain protocols while managing associated risks. Veda and Sentora provide the underlying infrastructure and risk management framework for the vault strategy.

This launch expands Kraken’s earning offerings beyond its existing USDC auto-earn product. The Bitcoin Vault product addresses demand from long-term Bitcoin holders seeking passive income on their holdings without requiring active trading or complex DeFi interactions. The product is available through Kraken’s platform.

Sources: Kraken Blog | Kraken Bitcoin Vault Product Page

Ethereum Retail is in Mood to ‘Buy the Dip’ as ETH Price Slips Under $2K

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Ethereum Retail is in Mood to ‘Buy the Dip’ as ETH Price Slips Under $2K

Ethereum’s native token, Ether (ETH), slipped below $2,000 for the first time since March, but retail traders have not reacted with panic yet.

Key takeaways:

  • Ethereum retail data shows rising “buy the dip” sentiment, which may lead to more downside ahead.
  • Macro data, such as ETF net flows and whale behavior, show institutions are selling ETH.

Retail FOMO warns of further ETH price dips

As of Thursday, “buy the dip” calls on social media were surging after ETH lost the key psychological support level, according to data resource Santiment.

That suggests retail traders are treating the decline as a discount opportunity rather than a warning sign.

Historically, excessive crowd optimism after a sharp drop can signal more downside ahead, as retail sentiment often peaks before prices stabilize. A stronger contrarian buy signal may emerge only when FOMO fades and panic takes over.

“There will be an opportunity to buy Ethereum, but ideally you will want to wait for the majority to cool down their FOMO and begin to show panic,” Santiment said in a Thursday post, adding:

“This way, you will be buying while there is true blood in the streets.”

Institutional selling is overpowering bullish retail

Larger Ethereum investors appear to be moving against retail dip buyers.

Harvard University’s endowment fund recently liquidated its entire $87 million ETH position, while Bankless co-founder David Hoffman, one of Ethereum’s advocates, also disclosed that he had sold his ETH holdings.

US spot Ether ETFs have witnessed consistent outflows since May 7, recording more than $470 million in withdrawals in the past two weeks.

US Spot ETH ETF daily net flows. Source: Glassnode

Ethereum’s mega-whales, wallets that hold over 10,000 ETH, are also reducing exposure. So far in 2026, they have cut their balances by more than 5%, according to Glassnode data.

Ethereum mega-whale net position change and balance vs. ETH price. Source: Glassnode

Tom Lee’s BitMine remains the key counterweight, holding about 5.21 million ETH, or roughly 4.31% of supply, as part of its push to own 5% of the network.

Related: Bitmine slows Ethereum buys, targets December to own 5% of supply

Lee has argued that Ethereum is entering a long-term “supercycle” driven by Wall Street tokenization and AI agents using neutral public blockchains.

But that bet is now deeply underwater. BitMine’s average ETH purchase price sits near $3,484, while ETH trades around $1,990, leaving the firm with an estimated $8.07 billion unrealized loss, according to DropStab.COM.

Bitmine’s Ethereum portfolio performance chart. Source: DropStab.COM

ETH price may retest the $1,750 macro low

As of Thursday, ETH had fallen as much as 3% intraday to around $1,965. The move also left Ethereum down more than 40% from its 2026 high near $3,400.

The latest decline followed a breakdown from what appeared to be a rising wedge, a bearish reversal pattern formed by two ascending, converging trend lines.

ETH/USD three-day price chart. Source: TradingView

Such setups typically resolve when price breaks below the lower trend line, with the downside target measured by subtracting the wedge’s maximum height from the breakdown point.

ETH entered the breakdown phase on Saturday and has since extended its losses, putting the measured downside target near $1,750 back in focus, down about 18.5% from the current levels.

In his Thursday post, analyst Ardi also projected $1,750 as the next ETH downside target.

Paxos Wins SEC Clearing Agency Registration

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Paxos Wins SEC Clearing Agency Registration

Blockchain infrastructure platform and stablecoin issuer Paxos says it has become the first “blockchain-native” firm that the US Securities and Exchange Commission has granted registration as a clearing agency.

Paxos said on Thursday that its subsidiary, Paxos Securities Settlement Company, has become “the only blockchain-native firm” that the SEC approved to provide clearing and settlement services as a central securities depository in the US.

The approval represents a “critical piece of financial market infrastructure” as blockchain technology and traditional capital markets continue to converge, the company added. 

Clearing agencies ensure securities trades are executed cleanly. Stock buyers and sellers do not trade directly and need clearing and settlement providers that verify the trade, match the buyer and seller, and then ensure the actual exchange of money and securities happens correctly.

A registered, SEC-approved blockchain clearinghouse removes barriers for banks and brokerages to build crypto-based infrastructure.

In October 2019, the SEC issued a no-action letter allowing Paxos to pilot a blockchain-based settlement service for US equities, and the service launched in February 2020.

Paxos said the pilot demonstrated that blockchain-based post-trade infrastructure could deliver same-day settlement, reduce costs and improve operational efficiency within a fully regulated framework.

“Our clearing agency registration is the result of seven years of work with the SEC, beginning with our No-Action Letter in 2019 and the settlement pilot we operated with some of the world’s largest and most sophisticated financial institutions,” said Paxos co-founder and CEO Charles Cascarilla.

Related: Paxos Labs to use $12M raise toward yield, lending, issuance tools

Paxos is the issuer of several stablecoins and digital assets, including PayPal USD (PYUSD), Global Dollar (USDG) and Pax Gold (PAXG).

The company has had a rocky history with the SEC under its former chair, Gary Gensler, having received a Wells Notice in 2023, with the agency planning to recommend an enforcement action over the issuance of Binance USD (BUSD), a stablecoin tied to the crypto exchange Binance, which the SEC considered an unregistered security.

Around the same time, the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting new BUSD. 

The SEC closed its investigation in 2024 and issued a formal termination notice, stating it would not pursue enforcement action. Paxos also reached a $48.5 million settlement with NYDFS in August 2025 over Binance and BUSD compliance issues.

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?

Bitcoin’s Next Correction May Be Linked To $9B Options Expiry

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Bitcoin’s Next Correction May Be Linked To $9B Options Expiry

Key takeaways:

  • Bears gained a major edge ahead of Friday’s $9 billion options expiry, especially if Bitcoin price stays below $74,000.
  • Spot Bitcoin ETF outflows and corporate BTC balance reductions fueled market pessimism.

Bitcoin (BTC) retested the $72,500 level for the first time in six weeks on Thursday, triggering $342 million in liquidations for bullish leveraged positions. Despite a subsequent relief bounce to $73,500, traders are worried that bears will keep control due to the upcoming $9 billion monthly options expiry.

May 29 Bitcoin call (buy) options open interest at Deribit, BTC. Source: Deribit

Deribit holds a 70% market share for the May monthly options expiry, capturing $3.4 billion in open interest for calls (buy) and $2.91 billion for puts (sell). However, bulls were caught off guard when Bitcoin broke below $78,000 on May 17.

If Bitcoin stays below $74,000 heading into Friday’s expiry, only $306 million worth of call options will remain in the money. In contrast, put options targeting $74,000 or higher total $1.05 billion, giving bearish strategies a massive advantage.

May 29 Bitcoin put (sell) options open interest at Deribit, BTC. Source: Deribit

Even if Bitcoin reclaims $74,000 by Friday, put options will still outpace call instruments by $265 million. On the bright side, there is no excessive demand for downside protection right now, as put options volume typically spikes only when traders anticipate severe negative surprises.

Bitcoin options put-to-call volume ratio, USD. Source: Laevitas

The Bitcoin options put-to-call volume ratio stood at 0.8 on Thursday, reflecting $1.57 billion traded in calls versus $1.29 billion in puts. This neutral setup represents an improvement from the prior week, which was marked by heavy demand for defensive, neutral-to-bearish options strategies.

Bitcoin only has an 18% chance of reaching $80,000 by June 26

The June 26 expiry shows traders are generally uninspired by Bitcoin’s short-term price prospects.

Deribit June 26 Bitcoin options pricing. Source: Deribit

The $80,000 June call option traded at 0.0103 BTC on Thursday, equivalent to $757. Given the 28 days remaining until expiry, the implied odds of Bitcoin trading above that level sit at 18%. This widespread pessimism can be partly attributed to the $1.07 billion in net outflows from US-listed spot Bitcoin ETFs over two days.

Related: Bitcoin falls further as BTC miners pivot to AI, pro-crypto legislation stalls

On Thursday, Paris-based semiconductor developer Sequans Communications (SQNS) announced plans to fully liquidate its Bitcoin holdings, abandoning its previous accumulation strategy. Publicly traded mining firms, as well as Trump Media and Technology Group (DJT), have also recently scaled back their Bitcoin exposure.

While it is impossible to predict whether a correction to $70,000 is the most probable scenario based solely on Bitcoin options flows and positioning, bears clearly hold the upper hand heading into the upcoming Friday expiry at 8:00 am UTC. Lingering fear and market uncertainty should prevail, significantly weakening the odds of any sustained bullish momentum in the short term.

Trump Claims he can ‘Future Proof’ Crypto Regulation with CLARITY Act

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Trump Claims he can ‘Future Proof’ Crypto Regulation with CLARITY Act

US President Donald Trump said Wednesday that he intended to codify a “future-proof digital asset market structure,” likely referring to the Digital Asset Market Clarity Act (CLARITY) under consideration in the US Senate.

In a post to his Truth Social platform for the second time this week on policy claims potentially affecting the cryptocurrency industry, Trump said the law would prevent “crypto haters” in future administrations from rolling back regulations affecting digital assets.

Source: Donald Trump

Since its passage by the US House of Representatives in July 2025, the CLARITY Act has faced months of delays in the Senate amid government shutdowns, pushback from crypto and banking industry representatives and concerns over conflicts of interest, including those involving the Trump family. The president or his sons are tied to memecoin projects, the platform World Liberty Financial, that platform’s USD1 stablecoin and a Bitcoin mining company.

Although lawmakers on the Senate Agriculture Committee and Senate Banking Committee have already advanced the CLARITY Act following respective markups in January and May, the bill faces other hurdles before a potential vote in the full chamber. Republicans hold a slim majority in the Senate and will need Democratic votes to pass the bill, but some lawmakers have signaled they will withhold support without provisions on ethics.

Related: US CLARITY Act will be a ‘boon for domestic innovation’: A16z

The price of Bitcoin dropped under $73,000 from more than $74,000 in the hours following Trump’s pledge to “never let crypto down.” At the time of publication, the price of the biggest cryptocurrency by market cap was $73,467.

Trump’s remarks echoed those of his hand-picked chair of the US Securities and Exchange Commission (SEC), Paul Atkins, who in October said the agency would work to future-proof “future potential changes,” including those affecting crypto.

DeFi Technologies President Andrew Forson told Cointelegraph at the time that it would be difficult for a future SEC chair to “fully reverse” previously enacted policies, but they could be made overly burdensome for regulators.

Trump weighs in on prediction market legal battle

Wednesday’s Truth Social post followed Trump’s comments that reiterated claims made by Commodity Futures Trading Commission (CFTC) Chair Michael Selig — also the president’s pick to head the agency — that the regulator had “exclusive jurisdiction” over prediction markets like Kalshi and Polymarket. Trump’s son, Donald Trump Jr., is an adviser to Kalshi and Polymarket.

Several state authorities have filed lawsuits against prediction markets, alleging that the companies offer illegal bets on sporting events without a license. The CFTC has responded with its own countersuits.

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?

Hacker Mints 5.4 Trillion Tokens in StakeDAO Exploit, Nets $91K

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Hacker Mints 5.4 Trillion Tokens in StakeDAO Exploit, Nets $91K

A compromised private key let an attacker forge a cross-chain message on Arbitrum, triggering cascading warnings across Curve Finance and Beefy Finance.

A hacker compromised StakeDAO’s deployer private key on Wednesday, minting 5.4 trillion vsdCRV tokens on Arbitrum and swapping a portion for roughly $91,000 worth of ETH, an attack that rippled into Curve Finance’s lending market and forced yield optimizer Beefy Finance to pause an affected vault.

StakeDAO, a DeFi protocol with $131 million in total value locked that allows users to earn boosted yields on Curve Finance liquidity pools through locked CRV positions, warned users to stop interacting with vsdCRV immediately following the incident. The protocol has not disclosed the total value of assets at risk or a timeline for remediation.

StakeDAO’s SDT governance token fell approximately 6.6% in the 24 hours surrounding the incident, according to CoinMarketCap data, with trading volume in SDT spiking more than 400%, per CoinGecko.

SDT Price. Source: CoinGecko

Attack Mechanics

According to web3 security firm Blockaid, which first flagged the attack, the attacker used a stolen key to tamper with StakeDAO’s vsdCRV token contract, which relies on LayerZero to validate mint instructions. By replacing the legitimate authorized address with one they controlled, the attacker could issue their own mint commands.

The attacker used the stolen key to replace the legitimate authorized address on StakeDAO’s vsdCRV contract with one they controlled, then sent a forged instruction that minted 5,446,744,073,709 vsdCRV on Arbitrum, tokens backed by nothing.

Blockchain security firm PeckShield reported the exploiter converted part of those tokens into 43.78 ETH, worth approximately $91,170 at the time of the exploit, and bridged the proceeds to Ethereum address 0xeF3C…aa25.

Same LayerZero Playbook

The attack follows a pattern that’s become common in recent months: attackers abusing LayerZero’s Omnichain Fungible Token (OFT) cross-chain token standard by manipulating peer configurations to forge mint events on destination chains.

In April, a similar architectural weakness in Kelp DAO’s LayerZero bridge allowed attackers to drain $290 million in rsETH. In that case, LayerZero later acknowledged it had made a mistake in its verifier configuration.

In the StakeDAO case, Blockaid said the suspected root cause was a compromised private key rather than a verifier configuration flaw, but the exploit path also consisted of forging a trusted cross-chain message and triggering an unbacked mint.

The LayerZero OFT standard allows tokens to move across blockchains by burning on one chain and minting on another. The system relies on peer configurations — trusted addresses registered on each chain — to validate whether a mint instruction is legitimate. If a deployer key controlling those configurations is compromised, an attacker can silently swap in a malicious peer and instruct it to authorize an unlimited mint.

Curve and Beefy

The fallout extended beyond StakeDAO. Curve Finance warned users with deposits or loans in the asdCRV LlamaLend market on Arbitrum to exit immediately. While the market itself remained functional, Curve said the vsdCRV exploit could destabilize its price oracle and trigger unexpected liquidations.

Beefy Finance, a multichain yield optimizer, separately disclosed that its Arbitrum Convex CRV/csdCRV/asdCRV vault was hit. Beefy said it paused the vault and was coordinating with StakeDAO, Curve, and Convex on potential recovery plans.

What Comes Next

The on-chain forensics are documented publicly: Blockaid has published the malicious peer deployment transaction, the cross-chain mint transaction, the setPeer transaction on Arbitrum, and the mint transaction on Arbitrum. StakeDAO has not confirmed whether the compromised deployer key has been rotated or when affected contracts will be redeployed.

April was already DeFi’s worst month on record for exploits, with $635 million stolen across 28 incidents. The StakeDAO hack adds to a growing string of attacks targeting cross-chain infrastructure in 2026.

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