š² Hyperliquid Faces Record Outflows Amid North Korea Hack Allegations š²
Hyperliquid experienced significant net outflows, totaling approximately $250 million, following allegations regarding North Korean hackers being active on its platform.
Hyperliquid experienced significant net outflows, totaling approximately $250 million, following allegations regarding North Korean hackers being active on its platform.
On Monday, Taylor Monahan, a security researcher from MetaMask, shared on social media platform X that she identified several blockchain addresses operating on Hyperliquid linked to North Korea's cyber activities.
DataĀ from Dune Analytics indicated that the platform saw USDC net outflows of $249.1 million on Monday,with an additional $22.2 million recorded on Tuesday.
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Monahan's postĀ included details of blockchain addresses that had been active since Oct. 2, raising concerns about potential threats to the platform's security.
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Monahan reiterated her offer to assist Hyperliquid in bolstering its defenses against these sophisticated threat actors, emphasizing the risks posed by North Korean groups known for their advanced hacking capabilities.
āI am quite concerned that you guys are at increased risk due to the fact we know that these specific threat actors are now intimately familiar with your platform,ā sheĀ statedĀ in a screenshot of a message she says she had written to the Hyperliquid team two weeks prior.
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In responseĀ to the claims, Hyperliquid assured users that all funds were accounted for and stated that no exploit or vulnerability had been detected. The platform emphasized, āThere has been no DPRK exploitāor any exploit for that matterāof Hyperliquid.ā
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The platform's native token, Hype, also experienced volatility, dropping from a peak of $34.5 over the weekend to around $26 on Monday before recovering slightly to $29.63 by the time of reporting.
North Korea's state-sponsored hacking groups have been implicated in some of the largest cryptocurrency thefts, including the $600 million hack of the Ronin Ethereum sidechain in 2022. Hyperliquid's situation highlights ongoing concerns about security in the decentralized finance sector.
If XRP is the neutral bridge for all sovereign currencies, stablecoins, and tokenized assets, then itās not just facilitating payments, itās capturing all that value at every level. From smart contracts to tokenized treasuries and digitized assets, XRP forms the foundation and backbone for everything in between.
With cross-border payments representing a multi-trillion-dollar corridor, thatās where the largest capital will flow and the greatest returns will come from.
At this point, youāre the gatekeeper to the digital economy. Everything else follows or fades away once regulations take effect.
You either see it or you wonāt until itās too late.
'Everyone, including Mastercard and Visa, is looking at how this technology can make finance easier for their consumers and their business. I don't think there is going to be a loser, but I do think there will be shake-ups. And ultimately, the consumer is going to win.' - SDF CEO @DenelleDixon on @BloombergTV
š Coinbase just launched an AI agent for Crypto Trading
Custom AI assistants that print money in your sleep? š
The future of Crypto x AI is about to go crazy.
š Hereās what you need to know:
š 'Based Agent' enables creation of custom AI agents
š Users set up personalized agents in < 3 minutes
š Equipped w/ crypto wallet and on-chain functions
š Capable of completing trades, swaps, and staking
š Integrates with Coinbaseās SDK, OpenAI, & Replit
š What this means for the future of Crypto:
1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto štxns done by AI agents by 2025
šØ I personally wouldn't bet against Brian Armstrong and Jesse Pollak.
š Coinbase just launched an AI agent for Crypto Trading
š Coinbase just launched an AI agent for Crypto Trading
š¤ What Happened To Jed McCaleb, The Co-founder and Chief Architect of the Stellar Development Foundation?
Jed McCaleb, the co-founder and Chief Architect of the Stellar Development Foundation (SDF), remains actively involved with Stellar as of 2025. He continues to serve on the SDFās board and is recognized as the Chief Architect, helping to guide the technical vision and development of the Stellar network. The SDF, under his and other leaders' guidance, is focused on expanding real-world asset tokenization and aims to power $3 billion in real-world asset value on-chain by the end of 2025.
Beyond Stellar, McCaleb is also known for founding the aerospace company Vast, which is developing artificial gravity space stations; he currently serves as Vastās chairman and sole funder. According to Forbes, McCalebās net worth is estimated at $2.9 billion as of April 2025.
In summary, Jed McCaleb is still deeply engaged with Stellarās ongoing mission of financial inclusion and blockchain innovation, while also pursuing ambitious projects in the space industry.
Musk Turns On Starlink to Save Iranians from Regime’s Internet Crackdown
Elon Musk, the worldās richest man and a visionary behind SpaceX, has flipped the switch on Starlink, delivering internet to Iranians amid a brutal regime crackdown.
This move comes on the heels of Israeli strikes targeting Iranās nuclear facilities, as the Islamic Republic cuts off online access.
The former Department of Government Efficiency chief activated Starlink satellite internet service for Iranians on Saturday following the Islamic Republic's decision to impose nationwide internet restrictions.
As the Jerusalem PostĀ reports, that the Islamic Republicās Communications Ministry announced the move, stating, "In view of the special conditions of the country, temporary restrictions have been imposed on the countryās internet."
This action followed a series of Israeli attacks on Iranian targets.
Starlink, a SpaceX-developed satellite constellation, provides high-speed internet to regions with limited connectivity, such as remote areas or conflict zones.
Elizabeth MacDonald, a Fox News contributor, highlighted its impact, noting, "Elon Musk turning on Starlink for Iran in 2022 was a game changer. Starlink connects directly to SpaceX satellites, bypassing Iranās ground infrastructure. That means even during government-imposed shutdowns or censorship, users can still get online, and reportedly more than 100,000 inside Iran are doing that."
During the 2022 "Woman, Life, Freedom" protests, Starlink enabled Iranians to communicate and share footage globally despite network blackouts," she added.
MacDonald also mentioned ongoing tests of "direct-to-cell" capabilities, which could allow smartphone connections without a dish, potentially expanding access and supporting free expression and protest coordination.
Musk confirmed the activation, noting on Saturday, "The beams are on."
This follows the regimeās internet shutdowns, which were triggered by Israeli military actions.
Adding to the tension, Israeli Prime Minister Benjamin Netanyahu addressed the Iranian people on Friday, urging resistance against the regime.
"Israel's fight is not against the Iranian people. Our fight is against the murderous Islamic regime that oppresses and impoverishes you,ā he said.
Meanwhile, Reza Pahlavi, the exiled son of Iranās last monarch,Ā called onĀ military and security forces to abandon the regime, accusing Supreme Leader Ayatollah Ali Khamenei in a Persian-language social mediaĀ postĀ of forcing Iranians into an unwanted war.
Starlink has been a beacon in other crises. Beyond Iran, Musk has leveraged Starlink to assist people during natural disasters and conflicts.
In the wake of hurricanes and earthquakes, Starlink has provided critical internet access to affected communities, enabling emergency communications and coordination.
Similarly, during the Ukraine-Russia conflict, Musk activated Starlink to support Ukrainian forcesand civilians, ensuring they could maintain contact and access vital information under dire circumstances.
The genius entrepreneur, is throwing a lifeline to the oppressed in Iran, and the libs canāt stand it.
Conservative talk show host Mark Levin praised Muskās action,Ā repostingĀ a message stating that Starlink would "reconnect the Iranian people with the internet and put the final nail in the coffin of the Iranian regime."
"God bless you, Elon. The Starlink beams are on in Iran!" LevinĀ wrote.
Musk, who recently stepped down from leading the DOGE in the Trump administration, has apologized to President Trump for past criticisms, including his stance on the One Big Beautiful Bill.
GENIUS Act lets State banks conduct some business nationwide. Regulators object
The Senate passed the GENIUS Act for stablecoins last week, but significant work remains before it becomes law. The House has a different bill, the STABLE Act, with notable differences that must be reconciled. State banking regulators have raised strong objections to a provision in the GENIUS Act that would allow state banks to operate nationwide without authorization from host states or a federal regulator.
The controversial clause permits a state bank with a regulated stablecoin subsidiary to provide money transmitter and custodial services in any other state. While host states can impose consumer protection laws, they cannot require the usual authorization and oversight typically needed for out-of-state banking operations.
The Conference of State Bank Supervisors welcomed some changes in the GENIUS Act but remains adamantly opposed to this particular provision. In a statement, CSBS said:
āCritical changes must be made during House consideration of the legislation to prevent unintended consequences and further mitigate financial stability risks. CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors (Sec. 16(d)).ā
The National Conference of State Legislatures expressed similar concerns in early June, stating:
āWe urge you to oppose Section 16(d) and support state authority to regulate financial services in a manner that reflects local conditions, priorities and risk tolerances. Preserving the dual banking system and respecting state autonomy is essential to the safety, soundness and diversity of our nationās financial sector.ā
Evolution of nationwide authorization
Section 16 addresses several issues beyond stablecoins, including preventing a recurrence of the SECās SAB 121, which forced crypto assets held in custody onto balance sheets. However, the nationwide authorization subsection was added after the legislation cleared the Senate Banking Committee, with two significant modifications since then.
Originally, the provision applied only to special bank charters like Wyomingās Special Purpose Depository Institutions or Connecticutās Innovation Banks. Examples include crypto-focused Custodia Bank and crypto exchange Kraken in Wyoming, plus traditional finance player Fnality US in Connecticut. Recently the scope was expanded to cover most state chartered banks with stablecoin subsidiaries, possibly due to concerns about competitive advantages.
Simultaneously, the clause was substantially tightened. The initial version allowed state chartered banks to provide money transmission and custody services nationwide for any type of asset, which would include cryptocurrencies. Now these activities can only be conducted by the stablecoin subsidiary, and while Section 16(d) doesnāt explicitly limit services to stablecoins, the GENIUS Act currently restricts issuers to stablecoin related activities.
However, the House STABLE Act takes a more permissive approach, allowing regulators to decide which non-stablecoin activities are permitted. If the House version prevails in reconciliation, it could result in a significant expansion of allowed nationwide banking activities beyond stablecoins.
Is it that bad?
As originally drafted, the clause seemed overly permissive.
The amended clause makes sense for stablecoin issuers. They want to have a single regulator and be able to provide the stablecoin services throughout the United States. But it also leans into the perception outside of crypto that this is just another form of regulatory arbitrage.
The controversy over Section 16(d) reflects concerns about creating a regulatory gap that allows banks to operate interstate without the oversight typically required from either federal or state authorities. As the two Congressional chambers work toward reconciliation, lawmakers must decide whether stablecoin legislation should include provisions that effectively reduce traditional banking oversight requirements.
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