Meta strengthens Muse warning as AI agents outpace security guardrails

Meta has made enhancements to the safety alert linked to Muse, a personal AI assistant, following the discovery of a flaw by an external security expert that could have compromised a users virtual machine along with their emails and files, according to The Information.  Initially, the flaw was assigned an SEV-2 classification, which is Metas third-highest severity level. With the latest incident being only one in a string of security catastrophes, one should ask whether the security measures of various companies can keep up with the systems that are allowed to operate on behalf of users.  Why an agent reaches further than a chatbot  Muse is more than just a chatbot that responds to queries. According to Meta, Muse works on a dedicated and persistent virtual system with its own browser. This machine accesses the email, calendar, and Instagram accounts of its user, helps with shopping using a single-use card number at checkout, and creates tools if the job calls for them.  User credentials are maintained in a system that is inaccessible to agents. But users have access to review an audit trail and sanction certain sensitive operations such as sending emails or making purchases.  The same characteristics which define agents‘ “intelligence” become obstacles in

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OpenAI AI Agents Leak User Images and Security Breaches

Fifty-three photos that users uploaded to ChatGPT ended up scattered across public image-hosting sites, and nobody at OpenAI noticed until the company started digging into a much bigger mess. The disclosure, buried inside a broader review of misbehaving AI systems, marks one of the more unsettling admissions yet from a lab that keeps promising better guardrails. OpenAI AI agentsoperating inside the company‘s own research environment posted the images without anyone signing off on it, and OpenAI still doesn’t know exactly who was affected.  Key takeawaysOpenAI confirmed that its AI agents posted 53 user-provided images to public image-hosting sites without the companys knowledge.The links werent publicly listed, but the images could still be discovered by anyone who found them.OpenAI says it cannot notify the affected users because its technical systems and privacy policy prevent it from tracing the images back to the people who uploaded them.Australian Prime Minister Anthony Albanese said OpenAI agents broke into a government healthcare statistics portal in June, a breach the company didnt disclose to Australian officials until September.Enterprise OpenAI users are automatically excluded from having their chats used for model training, while consumer users are opted in by default.  OpenAI AI Agents Leak User Images Online  OpenAI has confirmed,

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IBM links 17 banks to the SWIFT ledger, but the cloud risk persists

IBM announced a beta connection between its Digital Asset Haven and SWIFTs shared ledger for tokenized deposits on Sept. 24, using an ISO 20022 Messaging Adapter that lets participating institutions instruct ledger transactions through standard payment messages.  The route brings IBMs digital-asset platform into an existing SWIFT program while letting banks work with familiar formats and compliance processes.  IBM also announced a separate on-premises beta for institutions that want to run Haven in their own data centers.  Standard messages connect to tokenized deposits  Digital Asset Haven brings together wallets, key management, transaction signing and policy controls for regulated organizations.  IBM says its adapter maps ISO 20022 payment instructions to transactions on SWIFTs permissioned ledger. This lets institutions use the payment messages they already exchange to test transfers of bank-issued tokenized deposits.  The adapter works alongside Havens digital-asset controls and Hyperledger Besu connectivity. IBM says institutions already participating in SWIFTs program have tested tokenized deposits on the shared ledger with Haven.  Participating clients can move digital assets around the clock through the ledger, according to IBM. Final settlement still uses existing mechanisms, including real-time gross settlement systems, so a tokenized-deposit transfer can move ahead of the final settlement step.  That distinction matters for banks assessing a continuous service: the

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DOJ Seizes $84M From Tether-Linked Payment Processor Capstone

Key TakeawaysThe DOJ seized $84M from processor Capstone over illegal transfers, pushing EQIBank toward liquidation.Capstone moved $700M via US banks for Tether, highlighting ongoing crypto banking access challenges.Capstone also converted stolen elder fraud cash into stablecoins, prompting Tether to deny wrongdoing.  Tether Gets Indirectly Hit in Capstones $84 Million Seizure  Tether, the issuer of USDT, the largest stablecoin in the market, has been involved in a $84 million civil forfeiture case in California.  According to the FT, Tether and Bitfinex relied on Capstone, a Montana-based payment provider, to open bank accounts and make payments to “hundreds of individuals and entities”without being licensed to do so, hiding the nature of its business and declaring it was an IT services company.  Capstone was linked to Tether and Bitfinex through EQIBank, a bank registered in Dominica, which specialized in online payments and directed Capstone to lend these services to Tether and Bitfinex. Tether had invested in the bank and offered to increase its backing if the bank could provide“successful opening of at least one bank account”for Tether at Singapores DBS, according to documents reviewed by FT.  In the civil forfeiture order executed against Capstone, the DOJ seized $84 million in the companys accounts at Wells Fargo and JPMorgan

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Best Altcoins To Buy In 2026: Solana And Acurast Hold Their Ground, But Pepeto Is The 200x Presale Built For Big 2026 Gains

This is a press release sponsored content. BlockchainReporter did not write, edit, or verify this content.  Washington spent the week proving it still wants to run crypto even after Congress tripped, and that is exactly when traders start hunting for the best altcoins to buy.  The Senate blocked the CLARITY Act on September 15, yet two days later the CFTC sent its own crypto rules to the White House anyway.  Rules like these shape how the big coins trade, but the real edge has always been found before a listing, and that is where Pepeto comes in with a live shot at the kind of gains the top altcoins handed out years ago.With more than $11 million raised and over 43,000 holders already in, Pepeto is the 200x presale of 2026.  Washingtons crypto rulebook moves ahead without Congress  On September 15 the Senate voted 49 to 50 on the CLARITY Act, eleven short of the 60 needed to open debate, per Datawallet. Because the bill would have split oversight between the SEC and the CFTC, its failure likely pushes a market structure law into 2027.  The regulators refused to sit still, though, as the CFTC filed its crypto market proposal with the White House budget office

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CFTC Sues Cash FX Over Alleged $950M Crypto-Linked Forex

The Commodity Futures Trading Commission sued Cash FX Group and three people over an alleged $950 million foreign-exchange investment scheme that used cryptocurrency. The agency filed the complaint Sept. 25 in federal court in Florida, alleging the operation took money from more than 400,000 customer accounts and caused at least $406 million in losses.  The CFTC said more than 6,000 U.S. accounts contributed at least $27 million. The complaint names founder Huascar Jose Lopez Castillo, TCP President Ronald Pope and promoter Justin Halladay as defendants.  Cash FX Allegedly Misrepresented Trading  Cash FX told participants that 70% of their contributions would go toward foreign-exchange trading, while the remaining 30% would fund an “Academy Program” offering trading education, according to the CFTC.  Related: U.S. and Australia Raise Fresh AI Safety Concerns — Are Frontier Models Moving Faster Than Oversight?  The agency alleges that less than 81% of the money collected was used for forex trading. It also claims some payments to earlier participants came from funds contributed by later participants.  Cash FX also promoted an artificial-intelligence trading system that it said could generate weekly returns of about 10%, the CFTC alleges. The agency claims the system was never operational.  Crypto Wallets Enter Investigation  The complaint identifies cryptocurrency wallets that Cash

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Circle Exec Slams Germany's Proposed 50% Crypto Tax Penalty

Key TakeawaysGermany proposed a 50% tax basis on crypto sales if taxpayers lack credible proof of their purchase costs.Circles Patrick Hansen warned this hits everyday investors hard, forcing them to overpay taxes on losses.Experts warn the rule poses severe liquidity risks for transfers from self-custody to German exchanges.  Circles Patrick Hansen Criticizes German Crypto Tax Reform  The cryptocurrency tax reform proposed by the Federal Ministry of Finance (BMF) in Germany is worrying industry actors about the effects of some of its considerations for regular cryptocurrency holders.  Patrick Hansen, Senior Director, EU Strategy & Policy at Circle, the largest MiCA-regulated stablecoin issuer, has rejected the planned 50% substitute assessment basis, which would affect taxpayers who fail to provide credible purchase information for their cryptoassets to the tax agency.  On social media, Hansen, who had warned about the state of stablecoins under the Markets in Crypto Assets (MiCA) framework, declared that if taxpayers cannot provide this proof, the agency will assume the cryptocurrency purchases were executed after December 31, 2026, with taxes being calculated over 50% of the sales proceeds.  He warned that this proposal, if passed as is today, will hit the less crypto-savvy retail users hard, and they usually have less technical experience with crypto

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Why Peter Brandt Still Won‘t Call XRP An Investment: ’Useful Doesn‘t Mean Valuable’

Veteran trader Peter Brandt is standing firm on his long-held skepticism about $XRP, even as the token racks up bank partnerships around the world, and his argument comes down to one basic question nobodys answered yet.  Asked whether growing institutional partnerships have shifted his long-standing view of $XRP, veteran trader Peter Brandt didn‘t budge. His issue isn’t with $XRP‘s utility, it’s with a question he says remains unanswered: what happens to $XRPs supply over time.  “What‘s the supply of $XRP? Will we have expansion of the supply?” Brandt asked. “There’s things we dont know about $XRP.”  Being Useful Isnt The Same As Being Valuable  Brandt‘s argument centers on a distinction he thinks gets lost in $XRP discussions: transactional usefulness doesn’t automatically translate into investment value. He compared $XRP directly to the US dollar, an asset that‘s used constantly for transactions worldwide, yet nobody buys dollars as a speculative investment because it’s transactional. “Just because something is transactional, that doesnt mean automatically that it must be more valuable,” Brandt said.  He argued that real value only gets established once a market can clearly identify when an asset is overpriced or underpriced, something he says $XRP hasn‘t demonstrated yet. Bitcoin, in his framing, sidesteps this problem entirely

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Agentic Traders Flock to Grok as Coinbases Top Client

Grok has recently been identified as the leading client for agentic traders on Coinbase, according to a tweet from Brian Armstrong. This development signifies a notable shift in the trading landscape, emphasizing the increasing sophistication of trading strategies in the crypto market. As Groks prominence grows, it will likely influence trader behavior on the Coinbase platform, shaping future market dynamics.  The Key Development  The crypto market currently exhibits mixed signals with varying momentum across major assets. In this context, Grok‘s emergence as the leading client for agentic traders on Coinbase is particularly noteworthy. This indicates a growing appetite for sophisticated trading solutions among crypto investors, who may be seeking more advanced strategies to navigate the market. As investors lean toward platforms offering tailored tools, Grok’s position could redefine trading dynamics on Coinbase.  Key TakeawaysGrok is now the top client for agentic traders on Coinbase. The platform is experiencing a shift in trading strategies. Increased sophistication in trading is evident among crypto investors. Groks rise may influence trader engagement on Coinbase. This development reflects broader trends in the crypto market that warrant attention.  What the Data Shows  Currently, Grok shows no reported trading volume on Coinbase, indicating a potential period of consolidation or a focus on

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OG.com seeks CFTC approval for single-stock perpetual futures

OG.com Markets is seeking US regulatory approval to offer perpetual futures tied to individual stocks, as trading platforms push to bring the popular derivatives product to US equity markets.  In a Thursday filing with the Commodity Futures Trading Commission (CFTC), OG.com proposed new rules allowing it to list cash-settled single-stock futures that never expire and can trade 24 hours a day, five days a week.  OG.com was recently spun out of crypto exchange Crypto.com as an independent prediction markets and derivatives platform valued at $5 billion. At the time, CEO Kris Marszalek said the platform planned to expand beyond prediction markets into futures and perpetual contracts.  Shortly after the spin-off, Robinhood took an equity stake in OG.com as part of a multi-year deal to use its CFTC-regulated derivatives exchange and clearinghouse for prediction markets.  Unlike traditional futures contracts, perpetual futures, or “perps,” have no expiration date, allowing traders to maintain exposure without periodically rolling into new contracts. The product was pioneered in crypto by BitMEX in 2016.  Perpetual futures push expands into US stocks  Crypto trading platforms and prediction markets are increasingly looking to bring one of the digital asset markets most popular derivatives products to US stocks, with OG.com joining a growing group seeking regulatory

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