The latest in digital assets, markets and regulation.
The IRS plans to overhaul its voluntary disclosure program by December, targeting 120-day case resolutions and lower penalties for tax violations, including crypto. Unlike current processes, the update integrates digital assets into standard procedures while Congress considers a separate crypto-focused bill.
Bitcoin Core updated its security policy to rapidly patch vulnerabilities easily found by AI, citing that long embargoes are ineffective against LLMs. The change mandates quick backports and public advisories for "easily discoverable" flaws.
Claude AI wiped a user's rooted LG TV setup while installing a custom launcher, deleting Homebrew Channel and ad-free apps. Despite restoring the applications, the AI failed to recover root access due to patched firmware and refused further exploitation attempts, leaving the custom interface non-autolaunching.
SEC examiners added "super intelligence" and tokenization to FY2027 priorities, marking the first explicit scrutiny of advanced AI as a systemic market risk. The update signals increased compliance checks for firms integrating these technologies across 34,000 registrants.
Initia suspended its layer-1 blockchain after an exploit allowed attackers to mint unauthorized tokens, draining over $2.6 million. Security researchers identified a vulnerability in a Move function used to create unbacked AUSD tokens, which were then swapped for assets on Ethereum.
Senator Blumenthal probes Tether over a $6.3M deal with Nxum, co-founded by ex-White House adviser Bo Hines. Allegations cite direct lobbying coordination on stablecoin laws, amid rising political pressure ahead of midterms.
NY AG seeks $1.37B from NovaTech founders who fled US after defrauding Haitian communities via prayer groups. Four promoters settled for $6M. Scheme lured 11k NY investors with fake hedge fund claims.
The SEC added tokenization to its fiscal 2027 examination priorities, focusing on security and reliability of critical market infrastructure. This marks a change from 2026, where tokenization was not explicitly mentioned, while cryptocurrencies remain excluded as standalone priorities.
Bitcoin ETFs saw $635.6 million in outflows on Thursday amid risk-off sentiment triggered by Middle East tensions and rising oil prices. BlackRock and Fidelity funds led redemptions, pushing bitcoin briefly below $81,000 despite earlier weekly gains.
Bitcoin Core has revised its security policy to fast-track fixes for vulnerabilities easily discovered by AI, ending long embargoes for such bugs. The change follows recent exploits linked to AI-scanned repositories, aiming to reduce exposure time for flaws that large language models can rapidly identify.
U.S. spot Bitcoin ETFs lost $635.6 million on Thursday, wiping out most of the prior week's inflows and flipping October to a net loss. Despite the heavy outflows, Bitcoin prices held steady near $81,460, while Ethereum and Solana ETFs also saw significant declines.
Bitcoin dipped below $81,000 as Brent crude hit $116 amid US-Iran tensions. Equities fell, with the Dow down 1.4%. Analysts warn BTC may test $78k-$80k support if it fails to reclaim its 50-day moving average.