Blast shuts down $20M layer-2 network, forcing Oct. 26 exit deadline

Ethereum layer-2 network built around native yield Blast said on Oct. 2 that it will shut down because maintaining the chain costs more than it earns.  Related Asset Blast #751 BLAST · $0.00026 24-hour change: down 37.15% Loading price history… 24H Down 37.15% 7D Down 47.25% 30D Down 10.13%  The project asked users to move their assets to Ethereum mainnet by Oct. 26 to withdraw through its normal interface.  Blast said in its shutdown announcement that it sees no credible path to making the network economically sustainable. It plans to wind down the chain through an asset withdrawal process that will temporarily interrupt users ability to exit.  The decision comes nearly three years after Blast disclosed $20 million in funding from Paradigm and Standard Crypto on Nov. 20, 2023. The network opened early access that November, with a mainnet launch then planned for February 2024.  Related Asset Ethereum ETH · $2,666.75 24-hour change: down 1.25%  Its documented design describes an Ethereum-compatible optimistic rollup that passes yield from ETH staking and real-world-asset protocols to users. The website identifies Lido and MakerDAO as yield sources and lists additional investors among Blasts backers.  Related Company Paradigm A crypto/Web3 investment firm.  The yield model was intended to let holders benefit from returns

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Absa becomes Africas first bank to offer Bitcoin custody services

Absa has become Africas first bank to offer Bitcoin custody, with BTC making up the largest share of assets held through its institutional service.  SummaryBitcoin is the main asset held in Absas custody service, according to its digital assets head.The bank launched its institutional custody platform on Sep. 21 using technology from Ripple.Absa plans to serve more client groups and African markets, subject to regulatory approvals.U.S. banks have received regulatory clarification allowing crypto custody and related customer services.  Bloomberg reported on Oct. 2 that the Johannesburg-based lender is providing digital asset custody to institutional clients in South Africa, including asset managers, non-bank financial institutions and companies. The report identified Absa as the first bank on the continent to offer the service. Moneyweb Rob Downes, head of digital assets at Absas Corporate and Investment Banking division, said Bitcoin accounts for the largest part of the assets currently held.  Absas Bitcoin custody service starts with institutional clients  Describing the assets held through the platform, Downes told Bloomberg:  “Bitcoin is the predominant asset in custody.”  The executive said the bank is also working with customers on other crypto assets they want held in South Africa, according to the report. His comments place Bitcoin at the center of the current

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California Subpoenas OpenAI Over AI Models That Hacked Their Way Out of a Test

In briefCalifornia Attorney General Rob Bonta announced Oct. 1 that his office served OpenAI with an investigative subpoena over cybersecurity incidents involving its AI models, including the Hugging Face hack.Bonta said developers that fail to stop their models from carrying out or enabling cyberattacks “can and should be held legally accountable.”The subpoena adds California to an Alabama subpoena, a 15-state attorney general coalition demand, and a reported FTC inquiry.  California Attorney General Rob Bonta said Thursday that his office served OpenAI with an investigative subpoena on Wednesday, seeking answers about cybersecurity incidents involving its AI models, according to his office.  “My office is asking OpenAI additional questions regarding cybersecurity incidents and risks involving the company and its AI models,” said Attorney General Bonta. “Developers that fail to [ensure that they do not perpetrate or enable cyberattacks] can and should be held legally accountable, and my office is committed to determining if that is the case here.”  Myriad: How high will Nvidia go? Click to make your prediction.  A subpoena is a legal order to hand over documents or answers, and ignoring one gets you in front of a judge. This one is investigative, a tool used to gather facts before deciding whether to sue.

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Aave founder says V3 unaffected after third-party adapter exploit drains $305K

Aave founder Stani Kulechov said Aave v3 was unaffected by an exploit that drained roughly $305,000 from two Safe multisig wallets through a third-party adapter built on top of the lending protocol.  “This is not Aave v3 contract, its third party external adapter built on top of Aave, zero effect on Aave v3,” Kulechov said on X.  Blockchain security firm SlowMist said the attack targeted a module used to open and close leveraged Aave v3 positions through Safe wallets. The attacker exploited an access-control flaw that allowed a fake Safe contract to pass the adapters authorization check.  SlowMist said the adapter also allowed the caller to control the router and transaction data used for swaps. The attacker used that functionality to execute transactions through the victim Safes and drain weETH and collateral.  Around 1,300 wrapped Ether (WETH) in debt was repaid during the attack to unlock collateral, according to SlowMist. The attacker ultimately stole about 114.09 Ether (ETH), worth roughly $305,000, from two Safe multisigs.  The security firm identified the vulnerable FlashLoopAdapter contract and the attackers wallet but did not report any losses to Aave v3 itself.  Related: Aave launches V4 on Avalanche, laying groundwork for tokenized credit markets

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Blast to wind down Ethereum L2 after costs outpace revenue

Ethereum layer-2 network Blast is shutting down after its operating costs exceeded the revenue generated by the chain.  In a Friday post on X, Blast said it sees no “credible path” to making the network economically sustainable and asked users to withdraw their assets to Ethereum mainnet.  “We launched Blast with the goal of building a self-sustaining chain for users and developers,” the team said. “Unfortunately, the economics of operating the chain no longer make sense.”  Source: Blast  The network will reduce its withdrawal delay to 24 hours, though withdrawals will be temporarily unavailable while Blast unwinds its Lido assets, a process expected to take about a week.  Users will have until Oct. 26 to withdraw through Blasts interface. After that, assets will remain accessible, but withdrawals will require users to interact directly with the Blast bridge contracts on Ethereum.  Blast said it will publish instructions for withdrawing directly through the bridge contracts ahead of the Oct. 26 cutoff and urged users to move their assets to Ethereum mainnet before then.  Related: Stablecoins can drain from banks and nations at lightning speed  Blast emerged from Blurs NFT boom  Blast was founded by Tieshun “Pacman” Roquerre, the founder of NFT marketplace Blur, which launched in October 2022 and quickly challenged

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UK banks eye faster settlement as 71% expect tokenization to reshape finance

UK financial institutions have identified faster settlement as tokenizations biggest benefit, with 71% expecting the technology to reshape financial services.  Summary60% of survey respondents named faster payments and settlement as tokenizations biggest opportunity.41% cited better collateral and liquidity management, according to Lloyds annual survey.UK banks have tested tokenized deposits for mortgage payments and simulated marketplace purchases.U.S. and UK officials have recommended joint testing of cross-border tokenized financial assets.  Lloyds Banking Group said in its Oct. 2 release, that its tenth annual Financial Institutions Sentiment Survey questioned 100 senior decision-makers at major UK banks, insurers, financial sponsors, and asset and wealth managers.  Tokenization could release capital tied up in settlement  For respondents, payment speed ranked ahead of collateral and liquidity management, which attracted 41% of responses, according to the survey. Lloyds said digital infrastructure could reduce the time and resources needed to transfer money and assets, releasing capital held up while transactions complete.  In the banks description, tokenization represents assets such as cash, bonds and funds digitally on blockchain infrastructure. Lloyds said the technology could also automate transactions when agreed conditions are met, reducing the operational work involved in financial processes.  Rob Hale, co-head of global markets at Lloyds, said the next stage requires institutions to turn

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Bitcoins $85,000 sell wall is gone and traders are now betting on $100,000

Bitcoins rally is approaching a $90,000 test as a rare accumulation pattern reappears and sell-side liquidity thins.  Related Asset Bitcoin #1 BTC · $84,501.62 24-hour change: down 0.35% Loading price history… 24H Down 0.35% 7D Up 0.51% 30D Up 9.19%  On Oct. 2, Bitcoin registered an intraday high at $87,000 after buyers broke through a sell wall around $85,000 that had stalled several previous attempts to advance.  Glassnode said some of those orders were filled and the remainder withdrawn, leaving a smaller concentration of asks around $87,000 and less visible liquidity immediately above.  Bitcoin cleared $85,000 after sell orders vanished, then met new resistance near $87,000. Source: Glassnode  At the same time, bands on CryptoQuants Bitcoin Accumulation Trend chart have begun contracting, reviving a pattern seen before two sharp advances in 2025.  Related Company Glassnode On-chain analytics platform  The setup adds another bullish signal to a market that has reclaimed several key cost-basis levels, though the limited number of previous occurrences makes the pattern far from conclusive.  Past contractions offer a bullish, but limited, precedent  Per CryptoQuant, the current contraction resembles two episodes in 2025 followed by sizable gains, giving traders a bullish analog as Bitcoin enters October.  Related Company CryptoQuant Provider of on-chain and market data analytics  The Accumulation Trend

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Ethereum Now Lets You Pay for AI Without Revealing Who You Are

In briefThe Ethereum Foundation and the Open Anonymity Project announced zkAPI on Ethereum mainnet on October 1, letting users prepay in USDC and receive capped, short-lived API keys through zero-knowledge proofs.The design follows a February 2026 Ethereum Research proposal by Davide Crapis, who leads the foundations dAI team, and Vitalik Buterin.The projects repository labels the protocol experimental, and its documentation points to OpenRouter as the AI provider behind the keys.  The Ethereum Foundation has put zkAPI live on Ethereums main network, a system that lets people pay for AI services without tying their identity to what they ask, according to the Ethereum Foundations announcement.  “Prompts are personal. People ask AI models about their health, their finances, their doubts. Under the current model, using AI means handing a running transcript of your thinking to whoever holds the billing relationship,” the Ethereum Foundation argued.  Myriad: Where does Ethereum go next? Click to make your prediction.  “zkAPI separates payment from identity,” the Foundation continued. “You deposit credits (ETH, USDC, etc.) into a vault contract on Ethereum, one ordinary transaction. From then on, your balance exists as a private note: digital cash that only you can spend and that nobody can trace back to the deposit.”  It was built

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Anchorage Digital reportedly cuts 17% of staff amid crypto downturn

Anchorage Digital has reportedly cut 17% of its workforce after securing a $100 million Tether investment earlier this year.  The Information reported on Oct. 2, citing people familiar with the matter, that McCauley had told employees about the layoffs during the week. The report placed the reduction against a prolonged downturn in crypto markets.  Anchorage Digitals reported cuts could affect about 68 jobs  In congressional testimony in February, McCauley put Anchorages global workforce at approximately 400 employees. Applying the reported 17% reduction to that figure would amount to about 68 positions, provided the companys headcount had stayed near the same level.  The February figure covers employees globally, so the calculation represents a possible company-wide reduction rather than a confirmed number of U.S. job losses.  According to the supplied report, Anchorage received a $4.2 billion valuation earlier this year. The workforce reduction follows both that valuation and fresh investment from Tether, which already works with Anchorage through its U.S.-focused stablecoin, USAT.  The Information cited weak crypto markets as the backdrop to the cuts. The supplied account also noted that Bitcoin briefly recovered above $87,000 on Friday but remained below its $126,000 peak from October 2025.  Tether invested $100 million after USATs launch  Earlier coverage by crypto.news recorded Anchorages $100

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Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins

In briefCircle submitted recommendations to the European Commissions MiCA review, arguing the framework has produced many regulated issuers but captured few of the biggest global tokens.It urged the EU to preserve “multi-issuance” (warning restrictions would push activity offshore) and to loosen reserve rules, siding with the ECB against the 30%-to-60% bank-deposit mandate.The push lands ahead of a broader 2027 MiCA overhaul and amid a wider U.S.-EU contest over stablecoin dominance.  Circle is pushing the European Union to rework parts of its crypto rulebook, arguing that the current rules governing stablecoins are keeping the worlds biggest tokens outside Europes regulatory perimeter.  The stablecoin issuer said Thursday it had submitted a response to the European Commissions consultation on reviewing the Markets in Crypto-Assets Regulation, or MiCA, the blocs comprehensive framework for digital assets.  Myriad: Where does Solana go next? Click to make your prediction.  Circle, which issues the dollar-pegged USDC and the euro-pegged EURC, framed its recommendations as refinements to a framework it credits with giving Europe an early lead.  The companys core argument is that MiCA has produced plenty of regulated issuers but failed to capture the largest global tokens. Of the top 25 stablecoins by market value, Circle noted, only three are MiCA-regulated.  To close that

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