News linked to both this project and an event.
following the Kelp security incident, Tether's asset interoperability protocol USDT0 has disclosed details of its protocol security architecture. It stated that the system currently utilizes a proprietary DVN (Decentralized Verification Network) with message veto authority, and requires 3 independent validators, operating on different codebases, to reach a 3/3 consensus before cross-chain messages can be settled. The current verification nodes include the USDT0 proprietary DVN, LayerZero, and Canary, with future plans to expand to 4/4 and 5/5 verification mechanisms.USDT0 also stated that all multi-signature transactions must undergo multiple reviews by internal teams, external security teams, and auditing firms before signatures are submitted. The relevant contracts have been audited by firms such as Guardian and OpenZeppelin, and a $6 million bug bounty program has been launched on Immunefi.
LayerZero Labs posted on platform X, stating that the internal RPC used by LayerZero Labs had been attacked by the Lazarus Group over the past three weeks, compromising the true source of its DVN (Decentralized Verifier Network). Meanwhile, external RPC providers experienced DDoS attacks. The incident affected 0.14% of applications and approximately 0.36% of asset value. LayerZero Labs stated that assets are currently secure, and over $9 billion in funds have been bridged through the protocol since April 19.In response to the security risk, LayerZero Labs has ceased providing services for its DVN in a 1/1 configuration. Default configurations for all pathways will migrate to a multi-DVN model of at least 3/3 or 5/5 signatures. Additionally, regarding an incident from three years ago where a multi-sig holder mistakenly used a hardware wallet for personal transactions, LayerZero Labs has removed that signer and replaced the wallet, while developing a custom OneSig multi-sig system. LayerZero Labs advises developers to lock configurations to avoid reliance on default settings and plans to launch an asset management platform, Console, to enhance security monitoring.
Drift Protocol released an explanation of its redemption mechanism, stating that users may redeem at any time after the redemption window opens. However, early redemptions will be fulfilled at the current pool’s proportional share, resulting in a recovery value lower than the full claim amount. Conversely, holders who delay redemption may receive a higher recovery price as the pool’s size grows. The protocol emphasizes that this mechanism aims to balance liquidity with the distribution of returns to long-term holders.
According to an official announcement by Pump.fun, the platform has completed the burning of all previously repurchased $PUMP tokens, amounting to approximately $370 million—roughly 36% of the circulating supply. The burn was executed via two on-chain transactions at 20:52 UTC. Simultaneously, Pump.fun has launched a programmable buyback-and-burn mechanism, allocating 50% of its net revenue over the next year toward publicly purchasing $PUMP on the open market and immediately burning 100% of the acquired tokens. This mechanism is enforced via an immutable smart contract covering revenue streams from Pump.fun’s three core product lines: the bonding curve, PumpSwap, and Terminal. Its execution comprises four steps: fee collection, aggregation into an intermediate wallet, buyback, and burn—all of which can be tracked in real time at fees.pump.fun. The remaining 50% of revenue will fund operational expenses and ecosystem development, including team expansion, strategic investments, and marketing initiatives. Pump.fun stated that this move aims to address community concerns regarding the token’s long-term value and the transparency of the buyback mechanism, with the overarching goal of continuously reducing the circulating supply.
U.S. SEC Chairman Paul Atkins delivered a speech marking his first anniversary in office at the Economic Club of Washington, D.C. The SEC is advancing reforms to its digital asset regulatory framework, integrating them into its “A-C-T” strategy—modernizing regulation, clarifying regulatory boundaries, and reshaping the rulemaking system. Regarding crypto assets, the SEC has released a classification framework for crypto tokens, categorizing digital assets into five types—four of which are not considered securities. Atkins stated that the SEC will soon introduce an “Innovation Exemption” mechanism, providing a limited, compliant framework for market participants to conduct tokenized securities transactions on-chain. The SEC has also launched Project Crypto to adapt securities rules and the regulatory system to the growing trend of capital markets moving on-chain. Additionally, last month the SEC signed a Memorandum of Understanding (MOU) with the CFTC to harmonize key definitions, clarify regulatory jurisdictions, and coordinate oversight of shared regulatory matters—including digital assets. Atkins further noted that the U.S.’s prior approach to crypto asset regulation had driven innovation overseas.
Odaily News: Sonic Labs co-founder and Flying Tulip founder Andre Cronje posted on platform X, stating that his team is continuing to investigate the L0/rsETH incident. Preliminary reports indicate that approximately $200 million worth of rsETH was stolen, possibly due to a private key leak or configuration error. The related assets were subsequently deposited into Aave as collateral to borrow ETH (due to insufficient rsETH liquidity).Andre Cronje pointed out that the affected positions are technically still overcollateralized. However, if bad debt occurs, Aave's token mechanism and Safety Module will serve as the first line of defense to absorb the risk. Nevertheless, Aave has no mechanism to subsidize user losses, as doing so could trigger a bank run. Currently, Aave holds approximately $7 billion in ETH with an outstanding borrowing amount of around $100 million, so the overall impact of this incident is limited. Furthermore, prioritizing user liquidity, Flying Tulip has withdrawn all its ETH from Aave to its fund management wrapper contract. This action was taken because Aave's available liquidity had fallen below its set minimum threshold.
According to Crowdfund Insider, Circle has launched a new solution for high-frequency cross-chain USDC payments. Developers can leverage the Cross-Chain Transfer Protocol (CCTP) to enable local fulfillment providers to front-pay on the recipient’s designated chain, with the platform subsequently performing batch cross-chain settlement. This model reduces operational overhead associated with individual cross-chain transfers and is suitable for platforms processing large volumes of payments daily. Compared to the traditional CCTP process—which requires individual USDC burn-and-mint operations per transfer—the new solution supports batch settlement, reducing the number of burns on the source chain and eliminating the need for signature infrastructure on the destination chain. Circle also demonstrated the workflow using the Arc Testnet and Ethereum Sepolia.
According to an official website announcement, Anthropic has introduced identity verification for certain use cases of Claude to prevent abuse, enforce its usage policies, and fulfill legal obligations. This process is powered by Persona, requiring users to submit a government-issued photo ID and possibly undergo real-time selfie verification. Anthropic states that verification data is used solely for identity confirmation—not for model training, marketing, or advertising. If verification fails, users may retry multiple times within the process or submit a form to request human assistance. Accounts may be suspended in cases of repeated violations of usage policies or terms of service, registration from unsupported regions, or use by individuals under 18 years of age.
According to CoinDesk, the U.S. Department of the Treasury announced it will extend its cybersecurity threat information-sharing service—which was previously available only to traditional financial institutions—to cryptocurrency firms. Eligible crypto companies may apply to join the program through the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection and receive timely, actionable cybersecurity threat intelligence at no cost. Luke Pettit, Assistant Secretary for Financial Institutions at the Treasury Department, stated that this move aims to foster a safer and more responsible digital asset ecosystem. The policy responds to related recommendations outlined in a prior report issued by the President’s Working Group on Digital Asset Markets.