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Flash

first_img Kraken's parent company plans to become Hyperliquid's first deployment entity regulated by the CFTC

The cryptocurrency trading platform Kraken's parent company Payward announced its intention to become the first CFTC-regulated deployer on the HIP-3* market of the on-chain perpetual contract infrastructure Hyperliquid. Payward will deploy a perpetual futures market for U.S. customers based on Hyperliquid as the infrastructure layer.Upon obtaining regulatory approval, Payward's designated contract market and derivatives clearing organization Bitnomial, which is regulated by the CFTC, will act as the HIP-3* deployer, responsible for creating, holding, and managing the relevant market, as well as completing contract clearing and settlement. If approved, Payward's CFTC-registered futures commission merchant NinjaTrader Clearing will take over customer accounts.Hyperliquid stated that HIP-3 will support optional deployer configurations for licensed markets in future network upgrades, with the new features collectively referred to as HIP-3*. At its core is an on-chain whitelist managed by the deployer or its sub-deployers, which is an incremental option for HIP-3, with the decision to enable it made by the deployer, while existing markets remain unchanged. The initial version has been launched on the test network, and the specifications are still preliminary and may be adjusted based on feedback. Hyperliquid stated that HIP-3* deployers are independently operated entities that use their on-chain infrastructure to operate their own markets and retain control and responsibility over the deployment.

first_img Blink Wallet charges a monthly fee of 1 USD for idle custodial accounts, encouraging users to switch to self-custody

Blink Wallet, a Bitcoin wallet, announced a monthly idle fee of $1 for custodial accounts that have not logged into the app for 12 consecutive months. This adjustment was initiated at the beginning of September through a change in the terms of service and push notifications were sent to inactive users, with the first deduction completed in mid-October. According to a blog post released by the company, users who log back in within 12 months will have the deducted fees refunded.This fee applies only to custodial accounts and aims to alleviate the burden that inactive accounts place on the startup. The announcement stated that these accounts incur ongoing costs related to ledger and infrastructure maintenance, record verification retention, compliance monitoring and reporting, as well as support for claims, which were previously shared by active users through regular in-app transaction fees. Sources told Bitcoin Magazine that approximately 100,000 accounts met the criteria for inactivity at the time of the first deduction, with a total balance exceeding $800,000. The first deduction collected about $45,000, primarily from accounts that had been idle for over a year with small Bitcoin balances. Blink Wallet originated from the Bitcoin adoption wave in El Salvador, initially named Bitcoin Beach Wallet, and was an early custodial Lightning Network wallet that introduced the Stable Sats feature to hedge value against the US dollar. The wallet was spun off from the founding company Galoy in October 2024, operated by Lukas Duczko and a new board, with Duczko holding a controlling stake, while Galoy continues as a service provider and minority shareholder, also establishing the Bitcoin Beach Fund.In recent years, custodial wallets have faced overall pressure, with Wallet of Satoshi, Alby, and Blue Wallet successively halting custodial wallet services and shifting to self-custody infrastructures like Spark. The EU MiCA regulations regarding licensing and KYC compliance requirements are an important backdrop. Blink launched a self-custody wallet supported by Spark in June 2026, and its user base is still adapting to this transition. On September 19, hackers withdrew 6.61 Bitcoins from custodial wallet users through compromised management tools, and the company's investors subsequently announced that they would fully compensate affected users.

first_img NBA and CFTC signed a memorandum of understanding on the integrity of prediction markets, while the NFL is still fighting in the Supreme Court

The U.S. Commodity Futures Trading Commission (CFTC) announced a memorandum of understanding with the NBA to jointly maintain the integrity of professional basketball events in prediction markets. According to the agreement, both parties will share information, maintain regular communication on integrity matters, and collaborate to ensure that relevant markets are fair and transparent. CFTC Chairman Michael Selig stated that the NBA, along with MLB and NHL, has taken a responsible step to protect sports integrity and market participants from abuses such as insider trading and fraud, and thanked NBA President Adam Silver for prioritizing the integrity of professional basketball and the U.S. financial markets.The agreement reflects that betting on sports event outcomes is rapidly migrating to CFTC-regulated platforms like Kalshi and Polymarket, where users can trade event contracts based on real-world outcomes. Such memorandums of understanding with regulatory agencies aim to establish channels for marking suspicious activities. Previously, the NHL became the first major league to authorize trademarks for prediction markets, while MLB signed an integrity agreement after collaborating with Polymarket. The NBA's involvement is particularly noteworthy, as the league is still affected by one of the largest betting scandals in recent years: in October 2025, an FBI operation arrested Miami Heat guard Terry Rozier and a coach, accusing them of participating in a gambling scheme to manipulate game outcomes to influence betting.This collaboration comes amid a jurisdictional dispute over prediction markets. The CFTC recently defined event contracts as swaps within its jurisdiction and excluded casino-style gambling; the lawsuit between the NFL and Kalshi has drawn the attention of the Supreme Court, with the NFL to date refusing to sign related agreements, contrasting with its cooperation with the NBA. Bernstein analysts expect that by the end of this decade, prediction markets could generate billions of dollars in revenue, with new participants continuously entering, and Blockchain.com is one of the latest seeking CFTC approval to offer event contracts.

first_img South Korean police arrested 7 people in the first large-scale AI-assisted hacking case

Seoul police arrested 7 suspects accused of using generative AI to launch hacking attacks. The Seoul Metropolitan Police Agency stated that about 90 organizations were involved, collectively stealing 8.2 million records, marking the first large-scale arrest of suspects in AI-assisted hacking attacks in South Korea. The targeted victims included hospitals, universities, private tutoring centers, golf courses, and subsidiaries of large corporate groups, all of which held a significant amount of personal information, including names, contact details, and records of ordinary citizens. One funeral service company lost 1.22 million records, and reports indicated that the tutoring center's data also contained information on minors.According to local media reports, the main suspect, 32 years old, studied arts and sports and has no IT background. He told investigators that he self-taught hacking techniques through YouTube and online blogs, while police pointed out that he had worked in a security company conducting simulated attacks from 2019 to 2022. He initially used website vulnerability scanning tools and later introduced AI coding proxies and an automated penetration testing system called Artex at the end of August. Police stated that he hacked into 60 companies over a span of 44 days from August 31 to October 13.The entire attack operation lasted about 13 months, from September 2025 to this October, and the case was filed in June after a victim reported it. Police indicated that such a large-scale attack previously required a hacker group to accomplish, but AI now allows one person to achieve this in a short time. The suspect sent emails to 38 victims, collectively extorting 360 million Korean won, approximately 272,000 US dollars, but the only confirmed payment was 300,000 won, about 210 dollars. The main suspect was detained and transferred to prosecutors last Friday, facing charges of violating South Korea's Information and Communication Network Act, as well as extortion and attempted extortion. Police will continue to investigate the other 6 accomplices and confirm more victims, with 15 institutions already reporting damages.
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