Category: Business

  • Have Bitcoin’s Recent Gains Confirmed a Recovery? Experts Weigh In

    Have Bitcoin’s Recent Gains Confirmed a Recovery? Experts Weigh In

    Cryptocurrency market maker Wintermute analyzed the rise in Bitcoin and Ethereum following the release of June inflation data in the US. The company stated that there are signs of recovery in the structure of the cryptocurrency market, but the upward trend is not yet confirmed.

    The US consumer price index (CPI) fell 0.4% month-on-month in June, marking its largest monthly decline since April 2020. Annual inflation also dropped from 4.2% to 3.5%, below market expectations of 3.8%.

    Following the inflation data, markets largely excluded the possibility of a Fed rate hike in July from their pricing. However, renewed tensions between the US and Iran and the renewed discussion of port blockades caused Brent oil to rise by 15.54 percent during the week.

    Risky assets showed divergent performance. During the same period, Ethereum gained 3.64% and Bitcoin gained 1.46%, while the Nasdaq index fell by 4.16%.

    Following the release of US inflation data, Bitcoin surged from approximately $62,000 to $64,900 in a short period. Ethereum also rose by up to 7%, reaching $1,884. As a result of the rapid market surge, approximately $134 million worth of short positions were liquidated within an hour.

    Spot Bitcoin ETFs traded in the US recorded net inflows of approximately $191 million on Tuesday and Wednesday, ending a ten-day streak of outflows from ETFs.

    Wintermute stated that the recent inflows were a positive development, but compared to the record net outflow of $4.5 billion recorded in June, the current magnitude was insufficient to confirm a new trend.

    Related News Expert Analyst Argues Altcoin Bear Trend is Nearing Its End, Reveals His Favorite Altcoins!

    According to the company, Bitcoin’s ability to maintain its gains following the inflation data release during the sell-off in chip stocks indicates an improvement in the structure of the cryptocurrency market. However, a definitive upward trend has not yet formed in the market.

    Wintermute stated that the relative strength of the market could be confirmed if spot Bitcoin ETFs record uninterrupted net inflows for a week and the Bitcoin price remains above $66,000 for several trading days.

    However, it was added that macroeconomic risks could intensify again if Brent oil rises above $90 or if the Strait of Hormuz is officially closed, and the positive assessment of the cryptocurrency market could lose its validity.

    *This is not investment advice.

  • Ramp opens stablecoin accounts to every business, settling on Solana

    Ramp opens stablecoin accounts to every business, settling on Solana

    Ramp has made stablecoin accounts and payments available to all its customers, giving businesses one platform to hold, send, and receive both regular dollars and stablecoins like $USDC and USDT.

    Until now, most finance teams treated stablecoin payments as a separate hassle, requiring a different wallet, no approval controls, and hours of manual reconciliation.

    One Ramp beta customer found that stablecoin payments made up just 10% of vendor payments but consumed half of their accounts payable team’s time.

    Ramp’s approach folds stablecoins directly into the same system businesses already use for cards, bills, and accounting, so a payment settling in $USDC follows the same approval chain as one settling in dollars.

    “Businesses shouldn’t need a second financial system just because a payment settles on different rails,” said Andrew Chapello, Stablecoin Product Manager at Ramp.

    How it actually works

    Businesses can hold stablecoin balances, earn rewards on them, and pay vendors or employees directly from a stablecoin account, a checking account, or a linked bank account, without needing to pre-fund anything.

    Every transaction syncs automatically into the company’s existing accounting system with the same categorization and audit trail as a regular payment.

    Trending on TheStreet Roundtable:

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    Stablecoin deposits are supported across seven blockchain networks, including Solana, a high-performance blockchain known for its speed and low transaction costs.

    Solana has increasingly become a preferred settlement layer for stablecoin activity, and its inclusion here reflects a broader trend of payment platforms building directly on top of it rather than treating it as one option among many.

    More than 150 businesses adopted stablecoin accounts during Ramp’s public beta, spanning far beyond crypto-native companies, including a farming business and a church managing donations.

    Ramp built the feature in partnership with Stripe, whose Bridge and Privy infrastructure powers the stablecoin issuance and wallets behind the scenes. Stablecoin accounts and payments are now available to all Ramp customers.

  • TRON Network Releases Major Update to Improve Its Technical Infrastructure!

    TRON Network Releases Major Update to Improve Its Technical Infrastructure!

    TRON has implemented a significant update to improve its technical infrastructure. According to a statement from TRON, GreatVoyage v4.8.2 (Pyrrho) is now officially available.

    The new version enhances compatibility with the Ethereum ecosystem while also including various improvements in smart contract execution performance, node management, and network monitoring capabilities.

    With the released update, the TRON Virtual Machine (TVM) has been made more compatible with Ethereum’s Pectra and Osaka upgrades. Additionally, the CLZ (Count Leading Zeros) command has been added for developers, and a new precompiled function for secp256r1 digital signature verification has been introduced. These improvements aim to facilitate the migration of Ethereum-based applications to the TRON network and enhance the developer experience.

    Significant changes were also made to the infrastructure. With the new version, the JSON processing infrastructure was migrated from the Fastjson library to the Jackson platform. In addition, node monitoring and performance metrics were transferred from the InfluxDB system to the Prometheus infrastructure. This aims to make network monitoring, performance analysis, and operational management more efficient.

    The TRON team emphasized that GreatVoyage v4.8.2 is a mandatory update. According to the announcement, node operators need to upgrade to the new version before 11:59 PM on August 16, 2026 (Singapore time). Failure to update by this date may result in node synchronization issues and loss of compatibility with the network.

    On the other hand, TRON’s Event Plugin component has also been updated to version v3.0.0. Node operators using the official plugin are advised to update the Event Plugin first, then upgrade their main node software. Operators using their own custom plugins are recommended to complete compatibility work with the new version as soon as possible.

    Experts believe this update will strengthen TRON’s technical integration with the Ethereum ecosystem, modernize developer tools, and significantly contribute to the network’s long-term scalability and operational efficiency. This is expected to enhance TRON’s competitiveness in decentralized applications and smart contract development.

    *This is not investment advice.

  • U.S. DOJ Moves to Seize $25 Million in Cryptocurrency Linked to International Fraud Ring

    U.S. DOJ Moves to Seize $25 Million in Cryptocurrency Linked to International Fraud Ring

    The U.S. Department of Justice has initiated forfeiture proceedings to seize more than $25 million in cryptocurrency tied to an international fraud investigation, according to a report by The Block. The action marks the latest effort by federal authorities to recover digital assets linked to cross-border financial crimes.

    DOJ Targets Digital Assets in Global Fraud Crackdown

    Prosecutors are pursuing a formal forfeiture action to transfer the seized cryptocurrency to the state, the DOJ confirmed. The assets were secured during a broader investigation into an international fraud scheme, though officials have not disclosed specific details about the alleged perpetrators or the nature of the fraudulent activity. The case underscores the growing role of cryptocurrency in illicit financial networks and the government’s increasing capacity to trace and recover digital funds.

    Broader Recovery Efforts Under the Scam Center Strike Force

    The DOJ’s Scam Center Strike Force, established to combat large-scale fraud, has recovered over $800 million in victim assets to date. This figure includes funds from various schemes, such as investment fraud, romance scams, and business email compromises, many of which involve cryptocurrency as a payment or laundering vehicle. The $25 million forfeiture action is part of this ongoing campaign, which leverages blockchain analytics and international cooperation to identify and freeze illicit assets.

    Implications for the Crypto Industry

    This case highlights the dual nature of cryptocurrency: while it enables financial innovation, it also presents new avenues for fraud. For legitimate investors and businesses, the DOJ’s actions signal a maturing regulatory environment that prioritizes consumer protection and asset recovery. However, the seizure also raises questions about due process for asset owners and the challenges of proving ownership in decentralized systems. The outcome of this forfeiture could set a precedent for how U.S. authorities handle similar cases involving digital assets.

    Conclusion

    The DOJ’s pursuit of $25 million in cryptocurrency tied to international fraud is a significant step in its broader mission to dismantle illicit financial networks. With over $800 million already recovered, the Scam Center Strike Force demonstrates the government’s commitment to using advanced tools to protect victims. As the case progresses, it will provide further clarity on the legal treatment of digital assets in fraud-related forfeiture proceedings.

    FAQs

    Q1: What is the DOJ’s Scam Center Strike Force?
    A: It is a specialized unit within the U.S. Department of Justice that focuses on investigating and recovering assets from large-scale fraud schemes, including those involving cryptocurrency.

    Q2: How does the DOJ trace cryptocurrency in fraud cases?
    A: Investigators use blockchain analytics tools to follow transaction trails on public ledgers, often collaborating with exchanges and international law enforcement to identify and freeze assets.

    Q3: What happens to seized cryptocurrency after forfeiture?
    A: Once forfeited, the assets are typically converted to fiat currency through a government-approved process, and the proceeds are used to compensate victims or fund law enforcement activities.

    Related Reading

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    • Crypto Tracing in Cross-Border Litigation: New York Bar Sets Framework
    • South Korea Customs Unearths 47 Illegal Crypto Money Exchangers in Targeted Crackdown
    • UK Government Cracks Down on Foreign Political Funds, Targeting Reform Party’s Crypto Backers
    • Chilean Regulator Revokes License of Crypto Exchange Linked to Venezuelan Crime Syndicate
  • DAT Went Wrong: Satsuma to Unwind Bitcoin Treasury, Sell Off $43 Million in BTC

    DAT Went Wrong: Satsuma to Unwind Bitcoin Treasury, Sell Off $43 Million in BTC

    In brief

    • Shareholders voted by more than 90% to sell the company’s 668 BTC, return capital, and cancel its London Stock Exchange listing
    • This marks the end of a Bitcoin treasury experiment in under twelve months.
    • Satsuma raised £163.6 million in August 2025 but expects to return only £26.8 to £30 million after wind-down costs.

    The shareholders of Satsuma Technology, a U.K.-based Bitcoin treasury company, have voted to liquidate the company’s entire Bitcoin position and shut down the business, overruling four of its six board members.

    More than 90% of votes cast backed the dual resolutions to sell 668 BTC—worth roughly $43.5 million—and cancel the company’s London Stock Exchange listing, per a Monday filing. The move unwinds the digital asset treasury, or DAT for short—the latest such company to call it a day after the DAT trend picked up steam in 2025.

    Satsuma started life as TAO Alpha, a small AI firm, before rebranding and hiring Mark Moss in August 2025 as its Chief Bitcoin Strategist. Moss is an American Bitcoin commentator with over 700,000 YouTube subscribers known for advising institutions on how to buy and hold Bitcoin as a corporate treasury asset—essentially, a company’s rainy-day fund, but in crypto.

    The same month, Satsuma raised £163.6 million ($218 million) through convertible notes—debt instruments investors can either reclaim as cash or convert into company shares—led by ParaFi Capital, with Pantera Capital, Digital Currency Group, and Kraken joining in. Investors contributed 1,097 BTC directly in place of roughly $97 million in cash.

    The stock peaked around £14 per share, roughly £66 million in market cap, in June 2025. Bitcoin then hit its $126,000 all-time high in October before entering a months-long slide in what became the current crypto winter, dragging the rest of the market—including Satsuma’s stock—with it.

    By December, Satsuma was already selling assets to stay solvent: 579 BTC went for £40 million to ensure it had enough cash to repay noteholders who chose not to convert their debt into shares by year-end.

    The unraveling

    The company’s CFO departed in February 2026; the CEO followed in March. By April, shares had lost more than 99% of their June 2025 value—trading at fractions of a penny—and Pantera Capital, holding about 6.7% of Satsuma’s stock, began pushing publicly for full liquidation.

    The logic was direct: Satsuma’s market cap—the total combined dollar value of all its shares—had fallen well below the value of the Bitcoin sitting on its own balance sheet, the point where owning the stock is strictly worse than owning the coin directly. A group of shareholders representing more than 20% of issued capital formally put the resolution to a vote.

    The board split hard. Four of six directors opposed the liquidation, arguing Satsuma was still a viable listed Bitcoin vehicle. Two sided with shareholders pushing to wind down. Shareholders overruled the board majority by a wide margin.

    The wind-down runs through a “B Share Scheme,” a U.K. legal mechanism for distributing cash assets back to shareholders. Satsuma expects to return between £26.8 million and £30 million after estimated termination costs of £2.7 million—legal fees, severance, delisting charges, and run-off insurance.

    Combined with the £40 million from the December BTC sale, total capital recovered lands around £66–£70 million against the £163.6 million originally raised. And because convertible note holders rank above common equity in any payout structure—meaning they get paid first—ordinary shareholders could walk away with considerably less than even those numbers suggest.

    Satsuma is currently the second-largest U.K.-listed Bitcoin treasury company by holdings. The first is The Smarter Web Company, which holds 2,878 BTC and has not suggested it’s winding down.

    U.K. High Court hearings to approve the capital return are set for August and September 2026. The delisting is expected mid-September, with shareholder payments due by late September.

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  • Illinois crypto tax faces first legal challenge before it even takes effect

    Illinois crypto tax faces first legal challenge before it even takes effect

    The Digital Chamber sued Illinois on Tuesday to block the state’s new 0.2% tax on digital asset transactions, becoming the first trade group to challenge the law in court before it even takes effect.

    🧵1/ Today we filed suit in Sangamon County, IL, to stop the Digital Asset Tax Act. No one should be taxed differently because of how ownership of digital assets is recorded or transferred. pic.twitter.com/pv3J3FPybM

    — The Digital Chamber (@DigitalChamber) July 21, 2026

    The verified complaint, filed in Sangamon County Circuit Court against Illinois Department of Revenue Director David Harris and Attorney General Kwame Raoul, argues the state has not taxed a new kind of property, it has taxed an old kind of property recorded in a new way.

    Illinois tax could reach users outside the state

    The complaint’s clearest argument comes through a hypothetical: a man named Steve Doe splits time between Austin and Chicago and once registered his crypto accounts using a Chicago mailing address. He then buys coffee with a stablecoin debit card and moves governance tokens to vote in an online protocol, all while never setting foot in Illinois.

    The Act makes the old Chicago address sufficient to create a presumption that each of those transfers is an Illinois transaction, taxable individually, failure to comply with which constitutes a Class 3 felony.

    TDC’s six-count complaint argues this violates Illinois’ Uniformity Clause, due process protections in both the state and federal constitutions, and the Commerce Clause, and is preempted outright by the federal Internet Tax Freedom Act.

    The filing’s core argument is blunt: “it distinguishes only between traditional financial infrastructure and blockchain infrastructure.”

    Beyond a court order blocking the tax, TDC is also asking the state to cover its legal fees.

    Crypto levy was added through a rewritten farm bill

    Senate Bill 3019 did not start as a tax measure at all. It began as a narrow amendment to the Illinois Finance Authority Act covering agricultural financing, then a floor amendment gutted and replaced it with an entire omnibus budget bill carrying the tax provision, according to the complaint.

    That maneuver means the Digital Asset Tax Act was never introduced, heard, or debated as its own bill. As Cryptopolitan earlier reported, Kalshi already sued Illinois over a separate provision buried in the same SB 3019 package, that one requiring prediction market platforms to hold a state gambling license. This means there have been two lawsuits against the same bill in one month.

    Lawsuit warns blockchain tax could spread beyond crypto

    Buried in the complaint is a line that should worry more than just crypto brokers. As per TDC, if Illinois has the right to impose taxes on blockchain technology because it is a new method of recording, then the same logic would justify taxing AI-powered settlement or cloud-powered payments in other states.

    Michael Selig, Chairman of the CFTC, has separately referred to the fee as a “sin tax,” noting that it poses a threat to Chicago being a financial hub.

    The case is now going before a court in Springfield, which will determine whether or not Illinois can tax identical properties differently depending on which ledger the property is recorded in.

  • Robinhood Chain’s Early Boom Could Become Arbitrum’s Next Major Growth Driver

    Robinhood Chain’s Early Boom Could Become Arbitrum’s Next Major Growth Driver

    • Robinhood Chain recorded an average of 10 million daily transactions during the first three weeks following its official launch.
    • The protocol transfers 10% of its net fee revenue to the ArbitrumDAO treasury and the developer guild.
    • Total value locked in real-world assets (RWA) on the network reached $12.8 million by mid-July 2026.

    At least 10 million daily transactions were recorded by the Layer 2 networkRobinhood Chainduring the first three weeks following its launch. Built on Arbitrum’s technology stack, the platform directly connects its operational throughput to the treasury of Ethereum’s scaling ecosystem.

    Revenue mechanisms and operational metrics

    Token Terminal revealed data indicating that the daily transaction count consistently remained between 7 and 11 million since early July, while average block times dropped to 100 milliseconds. However, the analytics firm itself clarified that Robinhood will cover all user gas fees during the network’s first 90 days of operation.

    This temporary waiver reduces transaction costs to zero for participants. According to industry analysts, the measure acts as an incentive capable of temporarily boosting activity volume until the subsidies end in late September.

    At a financial level, the economic link between both platforms operates under the framework of the Arbitrum Expansion Program rules. Official ArbitrumDAO documentation indicates that the Layer 2 network allocates 10% of its net protocol revenue to the ecosystem, distributing 8% to the DAO treasury and 2% to the protocol’s developer guild.

    This structure strengthens the funds under governance management. Nevertheless, industry sources point out that the current model does not include automatic open-market purchases of the ARB token nor direct dividend distributions to holders of the cryptocurrency.

    During the subsidy phase, fees generated by the network averaged around $4,000 per day. According to estimates from FalconX, the network is projected to reach approximately $1.1 million in fees over a six-month operational period.

    By mid-July 2026, DefiLlama metrics showed that early activity was driven by stablecoin and memecoin trading, recording $12.8 million in tokenized real-world assets. The platform’s retention capacity will be formally evaluated in the fourth quarter of the year, when users assume regular payment of network fees.

  • Bitcoin miners cut OTC holdings 72% – Assessing BTC’s next move

    Bitcoin miners cut OTC holdings 72% – Assessing BTC’s next move

    Bitcoin’s miner-linked over-the-counter [OTC] balances continue shrinking. That means – fewer coins remain available for large private transactions.

    Since November 2021, holdings have dropped from 500,000 $BTC to 139,700 $BTC, a decline of nearly 72%. Miners drew down their inventory over time without meaningfully rebuilding it after the 2024 halving.

    Source: CryptoQuant

    As a result, OTC supply tightened while miner-to-exchange flows declined. Naturally, it suggested lower visible selling pressure on Bitcoin.

    Meanwhile, Bitcoin’s [$BTC] price has advanced despite declining OTC inventories, highlighting stronger demand against a shrinking pool of available supply. Yet, if institutions and whales continue accumulating under these conditions, tighter liquidity could amplify Bitcoin’s upside sensitivity in the coming quarters.

    Bitcoin supply tightens beyond miner OTC desks

    The tightening supply picture extends beyond miner-linked OTC desks and is now visible across centralized exchanges.

    On the 20th of July, Bitcoin recorded $686 million in Exchange Netflows. By the way, Binance led with $570 million in net outflows, marking its largest withdrawal since April.

    Source: CryptoQuant

    Furthermore, Bybit contributed $65 million, Coinbase another $48 million, and HTX nearly $3 million.

    Ultimately, it meant there were coordinated withdrawals rather than isolated activity. As more $BTC leaves exchange wallets, the pool of coins readily available for spot-market selling continues to shrink.

    This trend complements declining OTC inventories, reinforcing a tighter market structure. If demand continues strengthening, reduced exchange liquidity could amplify Bitcoin’s upside sensitivity in the months ahead.

    Are long-term holders selling?

    Even as Bitcoin rebounded from recent lows, long-term holders showed little interest in distributing older coins into the market. The trend of Coin Days Destroyed (CDD), which measures the number of days old coins are sold into circulation, remains flat at 16.4 million.

    Source: CryptoQuant

    Those brief increases failed to develop into sustained selling, suggesting most dormant holdings remained untouched despite changing market conditions. Therefore, it is likely that most of the older coins continue to remain unliquidated regardless of changes in the markets.

    As older coins stay inactive, the burden of driving price discovery shifts toward fresh spot demand instead of recycled supply.

    Thus, the next price movement for Bitcoin could potentially be driven by whether or not sufficient capital is available in the market. That demand must absorb the majority of the coins remaining within the increasingly smaller tradable float.


    Final Summary

    • Bitcoin [$BTC] tradable supply continues shrinking as sell-side liquidity remains constrained.
    • Bitcoin needs stronger spot demand to unlock its tightening supply advantage.
  • OpenAI Models Escaped Locked Test Environment, Hacked Hugging Face to Cheat on Benchmark

    OpenAI Models Escaped Locked Test Environment, Hacked Hugging Face to Cheat on Benchmark

    In brief

    • OpenAI’s GPT-5.6 Sol and an unnamed, more capable pre-release model escaped a controlled test environment and breached Hugging Face’s production infrastructure to steal benchmark answers.
    • Hugging Face disclosed the breach on July 16 after detecting it independently; OpenAI confirmed its models were behind it today, describing them as “hyperfocused” on cheating rather than anything more sinister.
    • Hugging Face’s defenders turned to Z.ai’s GLM 5.2—a Chinese open-weight model—after commercial U.S. frontier AI refused to help analyze the attack data because its safety filters couldn’t tell a defender from an attacker.

    If you thought Chinese AI models were the ones you had to worry about, here’s a fun update: OpenAI’s own models just broke out of a locked testing environment, hacked Hugging Face’s production servers, and had to be cleaned up by a Chinese AI—because American commercial models were too restricted to help investigate.

    According to OpenAI, GPT-5.6 Sol and an unnamed, “even more powerful pre-release model” were being internally evaluated on ExploitGym—a publicly available cybersecurity benchmark that gives AI agents 898 real-world software vulnerabilities and one instruction per bug: turn it into a working attack, scored pass or fail. The evaluation ran with reduced safety filters, standard when you actually want to know what your models can do.

    The models were supposed to run inside a heavily restricted sandbox—an isolated digital environment with no internet access, connected only to an internal package registry proxy (a caching server that manages software library downloads).

    But, according to OpenAI’s blog post today, things went a little out of control.

    “While operating in our sandboxed testing environment, our models spent a substantial amount of inference compute finding a way to obtain open Internet access, in pursuit of solving the evaluation problem,” Sam Altman’s company reported.

    And, despite the company’s safeguards, the AIs found a way to be free. The models identified a zero-day vulnerability—an unknown software flaw with no existing patch—in that proxy, exploited it to escalate privileges (gain admin-level access to systems they had no business touching), moved laterally (jumped between connected servers inside OpenAI’s internal network), and eventually reached a machine with real internet access.

    All this without OpenAI knowing—at least that’s what OpenAI says.

    Once online, they correctly deduced that Hugging Face—host to over a million publicly available AI models, datasets, and research resources—likely held the benchmark solutions, and they were right.

    “The models identified and chained vulnerabilities across OpenAI’s research environment and Hugging Face’s production infrastructure to obtain test solutions directly from Hugging Face’s production database,” OpenAI wrote.

    They didn’t want any passwords. They wanted to pass the test.

    “All evidence suggests that the models were hyperfocused on finding a solution for ExploitGym, going to extreme lengths to achieve a rather narrow testing goal,” OpenAI added.

    Hugging Face goes public

    Hugging Face’s security team caught the breach independently, aided by its own AI-powered anomaly detection.

    On July 16, the company published its disclosure and made clear this wasn’t a standard breach: “This one was different from anything we had handled before in one important way: it was driven, end to end, by an autonomous AI agent system—and we detected and dissected it largely with AI of our own.”

    The campaign, per the disclosure, was “run by an autonomous agent framework executing many thousands of individual actions across a swarm of short-lived sandboxes, with self-migrating command-and-control staged on public services.”

    The attack exploited two code-execution paths in Hugging Face’s dataset processing pipeline and reached internal datasets and service credentials. OpenAI confirmed today—five days later—that its models were behind it.

    To analyze more than 17,000 logged attacker events, Hugging Face’s security team first tried American frontier AI via their standard APIs. It didn’t go well.

    “When we started the log analysis, we first used frontier models behind commercial APIs,” the company wrote. “This did not work: the analysis requires submitting large volumes of real attack commands, exploit payloads, and C2 artifacts.”

    “These requests were blocked by the providers’ safety guardrails, which cannot distinguish an incident responder from an attacker,” Hugging Face added.

    So they switched to GLM 5.2—a 753-billion-parameter open-weight model (architecture fully public, anyone can download and run it locally) from Chinese AI startup Z.ai. “We ran the forensic analysis instead on GLM 5.2, an open-weight model, on our own infrastructure,” Hugging Face wrote. “This had a second benefit: no attacker data, and none of the credentials it referenced, left our environment.”

    The forensic work—reconstructing the attack timeline, mapping compromised credentials, separating real damage from decoy activity—took hours instead of days.

    Hugging Face drew the lesson directly for other defenders: “Have a capable model you can run on your own infrastructure vetted and ready before an incident, both to avoid guardrail lockout and to keep attacker data and credentials from leaving your environment.”

    What OpenAI is doing about it

    OpenAI said it implemented strict controls on research infrastructure while patching the affected systems, disclosed the zero-day to the third-party vendor whose proxy was exploited, and is conducting a joint forensic investigation with Hugging Face.

    Hugging Face has also been added to OpenAI’s trusted access program for cyber defense—giving approved organizations access to versions of its models with reduced safety filters for legitimate security work, the same configuration that started this whole thing.

    Hugging Face CEO Clem Delangue had a pointed take: “AI safety won’t be solved by any single company working in secret. It will be solved in the open, collaboratively, with broad access to AI for every defender, everywhere.”

    OpenAI called the incident one “involving newly state-of-the-art cyber capabilities” and committed to sharing full findings when the joint investigation with Hugging Face is complete.

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  • Crypto Clarity Act still at mercy of ethics section as Democrats balk at Trump deal

    Crypto Clarity Act still at mercy of ethics section as Democrats balk at Trump deal

    August 7 — the fast-approaching final day before the Senate’s summer recess — is seen as a major deadline for finishing the Clarity Act this year. Crypto insiders are expecting the bill to get to the floor as soon as the beginning of next week, which would fit with what Senate Majority Leader John Thune had previously indicated. The legislation could require several days to get to a final vote.

    Earlier on Tuesday, CoinDesk had reported that a White House official said Trump agreed to “the most comprehensive and wide-ranging ethics provision in history,” though the actual language he’s accepted hadn’t yet been shared with Democrats. As of press time, it was still unclear if Democrats had seen the exact language. Still, the administration argued that it had “bent over backward” to satisfy Democrats, suggesting it would be their fault if the legislation doesn’t advance.

    Trump’s agreement to a crypto constraint of his own business ties raises significant questions about how his involvement would be made sufficiently remote to comply with the limit. The president and his family are deeply connected to several crypto business initiatives, including their ownership stake in World Liberty Financial. While Trump has insisted he’s not conflicted as his administration imposes crypto policies that affect his own businesses, Democratic lawmakers have openly accused him of corruption.