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Mortgage Brain Launches AI Charter to Combat Hidden Data Risks in Broker Tech

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Mortgage technology provider Mortgage Brain has officially launched its first-ever AI Charter. The formal framework sets out strict standards for how artificial intelligence should be built, governed, and responsibly deployed within the highly regulated mortgage sector.

Zahid Bilgrami, Mortgage Brain CEO

Created by Mortgage Brain CEO Zahid Bilgrami, the charter acts as a direct response to escalating data risks in the industry. According to the firm, many intermediaries are adopting modern mortgage technology products to work smarter, completely unaware that these tools are often little more than a “thin layer” wrapped around third-party AI models like OpenAI or Co-pilot, lacking any proprietary technology underneath.

Because of this structure, brokers are potentially and unknowingly sharing sensitive client information with providers who do not actually own or control the underlying AI infrastructure. Consequently, this highly sensitive data is put at risk of being shared and exposed.

The four pillars of the AI Charter

To combat these systemic vulnerabilities, Mortgage Brain’s AI Charter is built around four distinct pillars, each addressing a specific risk area for mortgage firms adopting AI:

  • Cost: Tackles the long-term commercial viability of AI built on third-party infrastructure and the inherent pricing risks that come with having no control over an external supplier.

  • Intellectual Property and Data Sovereignty: Addresses where client data actually goes when it enters an AI system. Because Mortgage Brain builds and operates its own AI, client data remains exclusively within its systems and does not pass through third-party infrastructure.

  • Consistency: Makes the case for deterministic systems in regulated advice processes. In these environments, the same input must produce the same output every time—a standard that large, general probabilistic models cannot reliably meet.

  • Speed and Fit-for-Purpose Deployment: Argues for a disciplined, targeted approach that combines AI with traditional rule-based systems where appropriate, rather than needlessly routing everything through large, general-purpose models.

Bringing accountability to procurement

Mortgage Brain grounds its charter in genuine technical development; the provider designs and controls its own models, which are trained exclusively on mortgage industry data rather than the broad data sets that public AI models draw from.

Bilgrami noted that while AI capability has dominated industry conversations, the harder questions relating to governance, cost, data sovereignty, and compliance-grade reliability have gone largely unanswered.

“Brokers and lenders deserve a clearer picture,” Bilgrami stated. “We needed a documented framework that customers, compliance teams, and partners can actually interrogate. Too many firms are making procurement decisions without asking the right questions.”

Practical support for mortgage professionals

Alongside the launch of the charter, Mortgage Brain has introduced a dedicated ‘AI Zone’ on its website. This hub is designed to give mortgage professionals practical support for navigating AI safely and effectively.

Resources available in the AI Zone include the full charter, FAQs, and a hands-on toolkit covering data handling and compliance considerations. The hub also features a clear glossary, a list of key questions to ask technology providers, and practical guidance on how to safely use AI for marketing, client communications, and lead generation.

Binance is launching a withdrawal lock to help deter crypto wrench attacks

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Binance is launching a user-controlled withdrawal lock aimed at a threat the crypto industry has spent the past year reckoning with: physical coercion of holders, otherwise known as the so-called wrench attacks.

The feature, “Withdraw Protection,” lets users freeze their own account against onchain withdrawals for one to seven days, the exchange said Monday. A stricter “lockdown” mode disables early unlocking entirely. Binance’s press release says the lock cannot be overridden by the exchange.

In an interview with CoinDesk, the exchange’s Chief Security Officer Jimmy Su said the company built the feature in response to patterns it observed in the wild, including “withdrawals that are more risky or even coerced in some cases.”

He pointed to users traveling to regions where being identifiable as a crypto holder carries physical risk.

“We are seeing a pattern where some of the users might go to more risky geographical locations,” Su said. “They want to have this user-control layer where they can put in a restriction on withdrawals. In case anything happens, that would give them more time to recover.”

Asked whether the feature was a defense against wrench attacks specifically, Su said that was one scenario, alongside cases in certain regions where bad actors actively work to identify crypto users for in-person targeting.

A policy lock

Binance’s press release framed the un-overridable lock as a hard guarantee. Su clarified the mechanism is an internal policy.

“It’s an internal policy for this particular feature. Our customer service agents are not able to override it,” Su told CoinDesk. “The goal is to address the irreversible transfer nature of crypto.. Unlike a fiat scenario where funds are withdrawn to a checking or bank account and there are ways to reverse the transaction, you can’t do that with onchain crypto.”

The distinction matters. A cryptographic lock would be effectively immutable for the user’s chosen period. A policy lock depends on Binance’s continued enforcement, and on the absence of legal compulsion to lift it. Su said the feature does not block law enforcement orders.

“This does not prevent law enforcement from taking action on accounts,” he said.

Why a delay is now worth offering

Withdrawal-delay features are not new. Coinbase has offered Vaults, with a 48-hour delay and email confirmation, for years. Kraken offers a similar Global Settings Lock.

The threat landscape has changed. According to data from CertiK and crypto researcher Jameson Lopp, verified physical coercion incidents against crypto holders rose 75% in 2025, reaching 72 confirmed cases. Assault-related incidents jumped 250%.

Coerced withdrawals defeat conventional account security. Every credential check is completed by the legitimate user.

A time lock changes that calculus: a user who activates Withdraw Protection before traveling to a high-risk region cannot be forced to move funds at the destination, even under physical threat. Contacting support, in this case, wouldn’t help either.

Trading bots and the next layer

Asked what user behavior worries him most, Su pointed to trading bots advertised on forums and ad networks that ask users to grant API keys with broad permissions.

“If the trading bot is a scam, it can be used to cause trading losses and unauthorized withdrawals,” Su said. Users should treat API keys with the same protection as their passwords or two-factor authentication, he added: “Once a key is used by a trading bot, it’s as if they are operating on behalf of that user.”

Binance is investing in context-aware authentication that varies friction based on detected risk, Su said. For routine actions like login or trading, the goal is to reduce visible challenges. For high-risk actions like withdrawals, more friction is the point.

He framed Withdraw Protection as one layer in a defense-in-depth approach, not a replacement for basic hygiene. The advice for the wrench-attack threat model, he said, was to manage one’s online footprint.

“Crypto users need to protect their online presence,” Su said. “Trying to protect the confidential information in terms of how much they have in crypto. Make yourself a harder target.”

Tom Lee says ‘crypto spring’ started as Bitmine buys $238 million in ether

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Bitmine (BMNR), the largest Ethereum treasury firm, bought 101,745 ether (ETH) last week as Chairman Thomas Lee said a new “crypto spring” is underway, even as market sentiment remains subdued.

The purchase lifted the firm’s holdings to over 5.18 million ETH, roughly 4.29% of the token’s outstanding supply, according to a Monday update.

Bitmine’s total crypto and cash holdings stand at $13.1 billion. In addition to its ETH position, the firm holds 200 bitcoin , $700 million in cash and equity stakes including investments in Beast Industries and Eightco Holdings.

The latest buy, worth roughly $238 million at current ETH prices, has extended a run of elevated weekly purchases as the firm doubles down accumulating ETH at scale.

Crypto spring builds as CLARITY Act moves forward

That bet is anchored by the firm’s view that crypto markets are climbing out from the past months’ “mini-winter,” as Lee pointed to improving market conditions and positive signs of U.S digital asset regulation, known as the CLARITY Act, moving forward.

“The U.S. Senate released the CLARITY Act compromise text, and while it bans stablecoin yield on reserves, activity-based ‘rewards’ can be offered, in an attempt to balance the needs to protect existing depository institutions (aka traditional banks),” he said in a statement. “This compromise is largely acceptable to us, and we hope to see this bill passed in 2026.” Polymarket’s prediction market traders assigned more than a 60% chance of passage this year, he added.

“Crypto Spring, in our view, has commenced and like past cycles, investor sentiment and conviction are muted and bearish even as crypto prices strengthen,” Lee said.

Lee said Ethereum is benefiting from two long-term trends: the shift of financial assets onto blockchain rails known as tokenization and the rise of artificial intelligence (AI) tools that, in his view, will seek neutral, public networks for payments and verification.

He added that ETH is increasingly viewed as both a store of value and a medium of exchange, citing its outperformance against equities since the start of the Iran conflict.

BitMine has also expanded its staking operations, pledging over 4.36 million ETH — more than 84% of its holdings — to generate yield, earning about $297 million in annualized revenue. Its MAVAN staking platform is designed to support both internal operations and outside institutional demand. Lee will be speaking at CoinDesk’s Consensus Miami this week.

SEC Delays Review of Prediction Market ETFs: Reuters

The US Securities and Exchange Commission has delayed the expected launch of the first exchange-traded funds (ETFs) linked to prediction markets after requesting more information about their structure and disclosures, Reuters reported Monday.

The delay affects more than two dozen proposed ETFs from Roundhill Investments, GraniteShares and Bitwise, according to Reuters, citing people familiar with the matter. The issuers filed for the products in February, and launches had been expected this week after a 75-day review period.

The proposed funds would give investors exposure to event contracts tied to binary outcomes, including elections, economic data and market prices, without requiring them to trade directly on prediction market venues such as Kalshi.

The delay marks another development in the US approach to regulating prediction markets, which have attracted scrutiny over insider trading, ethics and market manipulation concerns.

“Delay is likely temporary”

According to the sources cited by Reuters, the delay is likely temporary, suggesting that progress with the filings could resume once the SEC receives and reviews additional details from issuers on product structure and disclosures.

According to Bloomberg ETF analyst Eric Balchunas, the ETFs were expected to launch on Thursday. His colleague James Seyffart last week said Roundhill’s filing had an effective date of May 5, with the first prediction market ETFs linked to event-contract outcomes such as whether Democrats or Republicans control the House or Senate.

Source: James Seyffart

How prediction market ETFs would work

Prediction market ETFs are designed to give investors exposure to binary event contracts without requiring them to trade on specialized prediction markets platforms.

Specific features differ across more than 20 of the proposed ETFs, but the products generally use derivatives to track the odds of binary “yes” or “no” outcomes in underlying contracts traded on CFTC-regulated platforms such as Kalshi. These contracts settle at $1 if an event occurs and $0 if it does not.

Roundhill previously highlighted significant risks associated with the proposed ETFs in its February filings, stating that investments in event contracts involve “unique risks that differ from those associated with traditional futures, options or securities.”

Related: A16z sides with CFTC against states seeking to ban prediction markets

The company said such investments could result in significant losses, valuation uncertainty and deviations from the fund’s investment objective.

It also pointed to potential settlement issues tied to how event outcomes are interpreted, including errors, ambiguities or disputes over the definition of the underlying event, the data sources used or the timing of determination.

Magazine: How to fix suspected insider trading on Polymarket and Kalshi

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.

Strategy (MSTR) Pauses Bitcoin Buys Ahead Of Earnings

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Strategy halted its bitcoin buying streak days before earnings, a pause that underscores how much the company now revolves around capital markets rather than software.

Chairman Michael Saylor said Sunday the firm would skip purchases this week and resume next week, marking only the second break this year in what has become a steady accumulation program.

The timing places the decision ahead of Tuesday’s first-quarter report, where analysts expect revenue growth alongside another loss tied to bitcoin accounting and financing costs. Estimates point to revenue near $125 million, up from $111.1 million a year earlier, with a projected per-share loss that varies widely across forecasts.

Strategy holds about 818,334 bitcoin, or close to 3.9% of total supply, reinforcing its position as the largest public bitcoin treasury. Its most recent buy added 3,273 BTC at an average price near $77,900. 

Bitcoin traded around $80,000 in early Monday hours, extending a rebound that has lifted sentiment across crypto markets. 

Because of this price jump, Strategy’s stock was up 3% in early market trading. Over the last two days, MSTR is up over 10%. 

The bitcoin purchase pause itself may reflect standard pre-earnings caution, yet it lands as investors focus less on operating performance and more on the structure funding Strategy’s accumulation.

The company has shifted from a software firm with a bitcoin position into a financing vehicle built to convert market demand into bitcoin exposure. That model relies on continuous access to capital through common stock issuance and preferred shares, including its high-yield STRC instrument.

STRC is Strategy’s new bitcoin driver

STRC, which targets a $100 trading level while offering a variable dividend near 11.5% annualized, has drawn scrutiny from analysts who see asymmetry in its design. Holders receive income tied to Strategy’s balance sheet, yet remain exposed to downside if bitcoin prices fall or if demand for the shares weakens.

The stock pop also comes on the heels of fresh enthusiasm generated by Saylor’s keynote at the Bitcoin 2026 conference in Las Vegas last week.

Rather than focusing on Bitcoin price targets or more Bitcoin purchases, Saylor’s pitch centered on STRC — Strategy’s Bitcoin-backed preferred stock — and a sweeping thesis that digital credit is poised to cannibalize trillions of dollars in the legacy credit market.

“The world’s $300 trillion credit market is a much bigger opportunity than the world’s roughly $2 trillion Bitcoin market, and Strategy has built the first product to bridge the two,” Saylor argued during the keynote.

STRC, which pays an 11.5% monthly variable dividend and trades on Nasdaq, has grown to approximately $8.5 billion in notional value in under nine months — larger, Saylor claimed, than the entire existing universe of monthly-paying preferred securities combined. 

“This is going viral,” he told the audience.

BlackRock’s iShares Preferred & Income Securities ETF has already taken a roughly $210 million position in STRC.

Saylor said STRC has financed the acquisition of approximately 77,000 BTC year-to-date in 2026, roughly ten times the net inflow of all U.S. spot Bitcoin ETFs combined over the same period. 

Recent buying patterns show how quickly Strategy can scale. Ahead of April’s dividend cycle, Strategy deployed more than $3 billion into bitcoin, with purchases concentrated into a handful of sessions exceeding $400 million each.

Trump-affiliated World Liberty sues Justin Sun for ‘defamation’ after Tron creator’s lawsuit

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World Liberty Financial, the cryptocurrency company affiliated with U.S. President Donald Trump and his family, filed a defamation lawsuit against Tron creator Justin Sun in a Florida state court Monday, alleging “gross misconduct” from Sun over WLFI tokens he bought.

The lawsuit comes on the heels of Sun’s own lawsuit against World Liberty, which was filed in a federal California court, alleging World Liberty had unfairly frozen his ability to transfer his WLFI tokens. In Monday’s suit, World Liberty alleged that Sun-related entities bought WLFI tokens for other investors through straw purchases and may have “engaged in short selling” of the token.

World Liberty froze Sun’s WLFI tokens “to protect” itself “and the broader community as a result, the lawsuit said, adding that Sun’s tweets complaining about his tokens being frozen contain false or defamatory information.

Sun allegedly hired influencers and used bots to “amplify his lies,” World Liberty claimed, and as a result the company said it had “lost specific business opportunities.”

Many portions of the lawsuit were redacted, including portions describing Sun’s purchase of the tokens and sections about his alleged misconduct.

This alleged misconduct includes what World Liberty describes as “a large, deliberate, short-selling campaign designed to suppress $WLFI’s price at the moment of its public launch,” which the suit tied to Sun-affiliated wallets moving $300 million to Binance.

“Upon discovering these violations, World Liberty exercised its contractual rights to freeze Sun’s entities’ tokens to prevent further harm to World Liberty and the broader $WLFI community, an ability that Sun knew about well before this action was taken,” the lawsuit said.

One issue Sun knew about prior to his tweets was that World Liberty had the ability to freeze tokens, the suit said throughout the filing.

“Not only was Sun aware of the agreements’ terms, but Sun also knew through his personal experience that the defamatory statements were false because he (and the public) knew that World Liberty had the power to restrict the transferability of tokens,” the suit said.

The suit alleged defamation and calls for damages, expenses and retraction of Sun’s statements.

CoinDesk 20 performance update: Bittensor (TAO) jumps 4.1% over the weekend

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Chainlink (LINK), up 2.7% since Friday, was also a top performer.

Kraken’s parent company Payward alleges $25 million crypto custody fraud in lawsuit against Etana and firm’s CEO

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Payward, the parent company of crypto exchange Kraken, has accused former custody partner Etana and its CEO, Dion Brandon Russell, of misappropriating more than $25 million in client funds, according to a second amended complaint filed in the U.S. District Court in Colorado on Monday.

The crypto exchange alleges that Etana Custody, which is going through Chapter 11 bankruptcy, operated a “Ponzi-like” scheme in which custodial assets were commingled, spent on operating expenses and risky investments, and falsely reported as intact to clients.

The Wyoming-based firm said it entrusted Etana with hundreds of millions of dollars over several years as part of a fiat on-ramp partnership. But when it sought to withdraw roughly $25 million in reserve funds in April 2025, Kraken claims Etana stalled with what it alleges as fabricated reconciliation issues and misleading explanations.

According to the complaint, Etana lacked the funds to meet the withdrawal request and instead relied on new deposits to cover shortfalls.

“Kraken has millions of users and hundreds of billions of dollars in quarterly transaction volume. We did not get here by rolling over. If you take our money or deceive our customers, then know this: we will find you, we will sue you, and we will not stop until justice has been served,” Matt Turetzky, head of litigation at Kraken, said in emailed comments.

Etana didn’t respond to a request for comment by publication time.

Counterparty risk, the danger that a firm holding or facilitating users’ assets can’t return them, has become a defining issue in crypto markets, where users often rely on exchanges, lenders and custodians to safeguard funds.

Unlike traditional finance, where segregation, insurance and oversight are more standardized, crypto platforms have historically operated with looser controls, making it harder to verify whether assets are fully backed.

High-profile failures from FTX to smaller custodians have shown how quickly trust can evaporate when that assumption breaks. Cases like Kraken’s dispute with Etana underscore the same core concern, whether customer funds are truly ring-fenced or exposed to operational and liquidity risks behind the scenes.

Kraken is a U.S.-based crypto exchange operated by Payward Inc., offering spot and derivatives trading alongside custody and staking services. Founded in 2011, the platform serves both retail and institutional clients globally, supporting trading in assets like bitcoin and ether (ETH), as well as fiat on- and off-ramps. It is known for emphasizing security and regulatory compliance across multiple jurisdictions.

Etana is a crypto-focused custody firm that provided fiat on- and off-ramp services and held customer assets on behalf of exchanges like Kraken.

The lawsuit outlines several alleged instances of misuse. In one, Etana purportedly deployed at least $16 million of Kraken-related funds into promissory notes issued by Seabury Trade Capital, which later defaulted. Kraken claims those funds were never returned and may have been diverted to cover company expenses.

In another, Etana is accused of using customer assets to finance a foreign-exchange hedging strategy while retaining any investment income for itself.

Throughout this period, Kraken alleges that Etana continued issuing account statements and dashboard updates that showed customer balances as secure and fully accounted for, despite internal shortfalls.

Regulatory pressure mounted in 2025, when Colorado authorities issued a cease-and-desist order and increased capital requirements. Etana ultimately entered liquidation proceedings in November 2025 and is now under the control of a court-appointed receiver.

Kraken is seeking at least $25 million in damages, along with potential treble damages under civil theft claims, plus injunctive relief and attorneys’ fees.

The complaint also targets Russell personally, alleging he exercised near-total control over Etana’s operations and directed the misuse and concealment of funds.

The custodian isn’t the only crypto firm to run into liquidity trouble in recent months. Institutional lender Blockfills filed for bankruptcy in March after halting withdrawals, reporting roughly $75 million in losses and facing a lawsuit alleging misuse of customer funds.

Read more: Crypto exchange Kraken targeted in extortion attempt but says there was no breach and no client funds at risk

Kraken parent Payward closes $550 million Bitnomial deal, securing full CFTC derivatives stack

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Payward, the parent company of crypto exchange Kraken, has completed its acquisition of Bitnomial, giving the firm a full U.S. derivatives stack regulated by the Commodity Futures Trading Commission (CFTC).

The deal gives Payward control of Bitnomial’s futures broker, exchange and clearinghouse licenses. That structure allows Payward to offer regulated crypto derivatives in the U.S. without relying on a patchwork of third-party venues.

The transaction values Payward’s equity at $20 billion. It follows the firm’s $1.5 billion acquisition of retail futures platform NinjaTrader in 2025, the two deals together forming the backbone of its U.S. derivatives push.

Payward said it plans to start with spot margin on Kraken and NinjaTrader. Perpetual futures, contracts without a set expiry, and options are expected to follow.

The acquisition also gives Payward a business-to-business path. Banks, fintech firms, and brokerages could connect to regulated U.S. derivatives products through a single integration with Payward Services, the company added.

Bitnomial was founded in 2014 and spent more than a decade building its CFTC licenses. Payward is paying up to $550 million in cash and stock for the company, according to the provided briefing.

The deal comes as U.S. crypto firms race to bring derivatives onshore under CFTC rules. Coinbase has already launched perpetual-style futures in the U.S., while other trading firms are exploring similar products.

The crypto futures and options market has become the dominant layer of digital asset trading, dwarfing spot activity in both volume and leverage. In the past 24 hours alone, crypto futures have generated around $200 billion in trading volume, roughly double the activity in spot markets. A significant portion of this market, particularly options, is concentrated on unregulated offshore venues, limiting direct access for U.S.-based traders.

Bitcoin stalls near $80,000. Stocks and ETF inflows still point to a breakout: Crypto Daily

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Bitcoin has pulled back to $79,000 after briefly topping $80,000 during the Asian hours. As of writing, the leading cryptocurrency by market value was still up 0.4% on a 24-hour basis.

The CoinDesk 20 Index was up 0.4% alongside a nearly 1% rise in ether (ETH) and marginal gains in XRP (XRP) and solana (SOL).

According to analysts at Marex, the level map matters more right now than the narrative.

“80k is the psychological barrier. A clean break and hold above it turns this into a momentum trade with room to extend. A rejection and fade keeps us in the same range logic and invites profit taking back toward the mid 70s,” they said in an email.

“This is exactly where traders watch whether spot demand keeps lifting offers or whether the move is mostly positioning,” they added.

The probability of a clean break above $80,000 remains high, thanks to the risk-on sentiment in global markets and strong market flows.

“The driver stack is straightforward. Equities are firmer on AI and megacap earnings, and crypto is riding that risk-on impulse. At the same time, institutional demand is clearly back in the mix,” Marex analysts said.

“Strong ETF inflows into the end of last week tell you real money is buying the breakout attempt rather than fading it,” they added. Marex Crypto is an institutional-focused division of Marex Group plc, a diversified financial services firm.

The 11 U.S.-listed spot exchange-traded funds (ETFs) pulled in more than $600 million on Friday, extending a run of institutional demand that has totaled $3.29 billion over the past two months, according to data source SoSoValue.

“Spot ETF flows also remain supportive, with roughly $163m in net inflows last week. While there were notable outflows from April 27 to 29, likely tied to month-end rebalancing and some basis trade adjustments, Friday’s approximately $630m inflow more than offset those earlier outflows,” the market insights team at Singapore-based QCP Capital, one of the largest digital asset trading firms in Asia, said.

Even with the supportive backdrop, analysts noted a few key risks that could pose headwinds.

Firstly, the risk-on rally could face renewed pressure if tensions between the U.S. and Iran flare up again. The two sides have been engaged in peace talks for weeks without a breakthrough, while energy markets remain sensitive to any disruption linked to the Strait of Hormuz, a key global shipping route for crude oil.

Amid this, U.S. President Donald Trump has threatened to impose tariffs on countries that purchase Iranian oil.

“Global markets are entering a more fragmented phase with trade tensions intensifying. The United States has warned China of 100% tariffs if it continues purchasing Iranian oil. China has responded with defiance. At the same time, President Trump has raised tariffs on EU vehicles to 25%, adding pressure to transatlantic relations,” Timothy Misir, head of research at BRN, said.

Second, persistent security risks in decentralized finance (DeFi) threaten widespread adoption.

For now, though, the setup is straightforward: equities are strong, ETF inflows are rising, and bitcoin is riding both. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”

What’s trending

Today’s signal

The chart shows bitcoin’s weekly price swings in candlestick format.

Early today, BTC tested the resistance at $80,619. That’s the level where the November sell-off ran out of steam, paving the way for a bounce.

A decisive break above this level would strengthen the case that the recent rebound is part of a broader uptrend, potentially opening doors to $85,000. However, failure to break through could see the rally stall, with the market at risk of another round of selling pressure.

BTC, therefore, is at a make or break level.