Category: Coins

Digital assets, cryptocurrencies, blockchain, and currency news.

  • Bloomberg’s Mike McGlone Warns on Bitcoin, Reveals Condition to Save BTC

    Bloomberg’s Mike McGlone Warns on Bitcoin, Reveals Condition to Save BTC

    Bloomberg Intelligence senior commodities strategist Mike McGlone has warned that elevated equity valuations and expectations of further Federal Reserve interest rate hikes are generating strong sell signals for Bitcoin.

    Bitcoin’s Risk-Adjusted Returns Under Scrutiny

    McGlone noted that Bitcoin’s performance over the past five years has roughly matched the S&P 500 index, but with approximately three times higher volatility. He described Bitcoin as an extremely volatile and speculative digital asset that exhibits a high correlation with the stock market while competing with millions of other crypto assets.

    From a risk and portfolio management perspective, McGlone argued that Bitcoin presents a negative picture because it offers similar returns to the S&P 500 while carrying approximately three times the volatility.

    Three Key Downside Risk Factors Identified

    The analyst pointed to three factors increasing downside risks for Bitcoin:

    • Bitcoin encountering resistance around $80,000 during its recent rise
    • Futures markets pricing in approximately 70 basis points of Fed interest rate hikes over the next year
    • The S&P 500 index trading at significantly higher levels compared to its 200-week moving average

    McGlone noted that Bitcoin tends to move strongly with the S&P 500, especially during periods of decreased market risk appetite, and therefore considers BTC a high-beta asset that follows the stock market.

    Bearish Scenario: Potential Drop to $10,000

    McGlone raised a sharp long-term bearish scenario in which Bitcoin could move toward the $10,000 level, a zone that has acted as critical support multiple times in the past. A sustained decline of approximately 20% in the S&P 500 could trigger such a scenario, according to the analyst.

    However, McGlone added that for this negative scenario to be invalidated, Bitcoin needs to decouple from the stock market and consistently demonstrate strong performance. He suggested that BTC’s ability to maintain strength, particularly during a potential S&P 500 decline, could support the thesis that Bitcoin is no longer just a high-beta risk asset.

    This is not investment advice.

  • Nu Launches in U.S. with USDC, EURC Accounts, Reports Say

    Nu Launches in U.S. with USDC, EURC Accounts, Reports Say

    Nu, Latin America’s Largest Digital Bank, Launches U.S. Operations with Multi-Currency Nu Global Account

    Nu, the leading digital bank in Latin America, has officially entered the United States market in a strategic expansion move. The launch introduces Nu Global, a multi-currency digital account designed for cross-border users that supports USDC and EURC stablecoins alongside traditional banking services.

    Comprehensive U.S. Banking Offering Through Lead Bank Partnership

    The U.S. market entry includes a full suite of financial products: deposit accounts, credit cards, and international transfers facilitated through Nu’s banking partner, Lead Bank. The Nu Global account enables users to convert deposits into USDC or EURC, facilitating transactions across more than 35 countries. This capability directly addresses the growing demand for seamless digital banking experiences among users who operate across borders.

    Scale and Strategic Context

    With over 140 million customers globally, Nu brings substantial scale to its U.S. expansion. The move reflects a broader trend toward cryptocurrency integration within traditional finance, positioning the bank at the intersection of digital banking and stablecoin utility. The expansion specifically targets enhanced cross-border financial services, a segment experiencing accelerated adoption.

    Market Dynamics and USDC Integration

    The broader cryptocurrency market currently presents mixed signals, which may influence USDC’s performance as it integrates into conventional banking frameworks. USDC remains a prominent stablecoin, though specific trading volumes are not publicly disclosed at this time. Market dynamics for USDC could shift as Nu’s digital banking services drive potential demand increases for cross-border transactions. The current landscape reflects cautious optimism among traders, particularly as institutions evaluate stablecoin integration into their offerings.

    Forward Outlook: Adoption Metrics and Competitive Precedent

    Market observers should monitor adoption rates of USDC within Nu’s new services, as increased usage could drive sustained demand. Additionally, tracking how Nu’s offerings affect existing digital banking services will provide critical insights into evolving market dynamics. The success of this expansion could establish a precedent for other financial institutions considering similar stablecoin integrations.

    This article is for informational purposes only and does not constitute financial advice.

  • Machine Learning Algorithm Sets XRP Price for October 1, 2026

    Machine Learning Algorithm Sets XRP Price for October 1, 2026

    AI Models Project Modest Pullback for XRP by October 2026

    A machine learning forecast compiled by Finbold’s AI Agent indicates that XRP could trade at an average price of $1.29 on October 1, 2026. That figure represents a 3.61% decline from the token’s current price of $1.34. The prediction aggregates output from three advanced artificial intelligence models: DeepSeek Chat, GPT‑5.6 Sol, and Gemini 3.5 Flash.

    XRP price prediction. Source: Finbold

    Individual Model Forecasts Diverge Significantly

    While the blended outlook points to a modest pullback over the next 18 days, the three models produced notably different price targets:

    • GPT‑5.6 Sol – the most bullish – projects XRP reaching $1.43, a 6.72% gain from current levels.
    • Gemini 3.5 Flash – the most bearish – sees XRP falling to $1.16, a 13.81% decline.
    • DeepSeek Chat forecasts $1.29, a 3.73% drop.
    XRP price prediction. Source: Finbold

    Key Support and Resistance Levels

    The forecast arrives as XRP continues to hold above the closely watched $1.35 support zone, a level many analysts consider critical for sustaining the asset’s broader recovery trend. On the upside, resistance sits between $1.50 and $1.55, a range that has repeatedly capped recent rally attempts. A sustained break above that band could improve the odds of a broader advance, while a violation of the $1.35 support region may expose the token to further downside pressure.

    Institutional Demand Remains Resilient via Spot ETFs

    Market data shows XRP is underpinned by strong inflows into U.S. spot XRP exchange‑traded funds (ETFs). Cumulative inflows have surpassed $1.6 billion year‑to‑date in 2026. Notably, ETF products attracted more than $110 million in weekly inflows during one of their strongest weeks of the year, signaling continued investor appetite despite the token’s retreat from its August peak near $1.70.

    Analyst Highlights $1.35 as Critical Support

    As reported by Finbold, cryptocurrency analyst Ali Martinez noted that the $1.35 mark remains XRP’s most critical support level as the asset attempts to consolidate above $1.

    Featured image via Shutterstock
  • Bitcoin Wallet Keys Generated Using Radioactive Decay

    Bitcoin Wallet Keys Generated Using Radioactive Decay

    An open-source Bitcoin seed generator called Entropy32 Plus has demonstrated a method for converting radioactive decay events into standard BIP39 recovery phrases using an offline hardware device. Published in September 2026 by developer Alexander Higgins, the project’s repository includes firmware, circuit-board designs, fabrication files, and a printable enclosure. Higgins describes the device as an experimental, educational project and explicitly warns users not to trust it with substantial funds before an independent review.

    Radioactive Decay as a Physical Entropy Source

    Entropy32 Plus, nicknamed “The Universe Bifurcator,” captures pulses from a Geiger counter and measures the time between detected decay events. Radioactive decay occurs unpredictably at the level of individual atoms, and the project uses this timing as its physical source of randomness rather than relying solely on software-generated values.

    The current design accepts pulses through a 3.5-millimeter connection from a GQ Electronics GMC-320S Geiger counter. According to the documentation, the counter can detect emissions from a radioactive source or background radiation. After receiving a pulse, an LM393 comparator converts the counter’s analog signal into a digital input, which passes to an ATmega328P microcontroller on a custom circuit board.

    The firmware records each accepted event using a microsecond timer. It compares the latest interval with the preceding one, producing a one when the new interval is longer and a zero when it is shorter. Equal intervals are discarded. Measurements below 200 microseconds are rejected as possible glitches, while accepted comparisons continue until the device has collected 512 bits. Higgins states this method uses pulse timing because the precise arrival of an individual decay event cannot be predicted, though he does not claim that every collected comparison contributes one full bit of measured entropy.

    SHA-256 Conditions the Raw Seed Data

    Once the 512-bit pool is complete, Entropy32 Plus processes all 64 bytes through its bundled SHA-256 implementation. The firmware uses the first 16 bytes of the resulting hash for a 12-word phrase or all 32 bytes for a 24-word phrase. According to the project, hashing is intended to reduce visible patterns linked to detector dead time, count-rate changes, or correlations between measurements. While hash conditioning can spread available entropy across an output, it does not prove how much unpredictability was present in the original data.

    The firmware includes a startup test for SHA-256 that calculates the hash of “abc” and compares the result with a known value. The device stops before collecting entropy if the answer is incorrect. Passing this self-test confirms only that the implementation returns the expected result for that test vector; it does not test the Geiger counter, assess pulse independence, or measure the minimum entropy entering the hash. The project collects twice as many comparison bits as the maximum 256-bit BIP39 input it produces, and until the physical source undergoes formal measurement, the repository does not establish how much usable entropy each comparison contains.

    Mapping Conditioned Data to BIP39 Words

    Following SHA-256 conditioning, the device applies the process defined in the BIP39 specification, which converts an approved entropy length into a mnemonic sentence selected from a standardized list of 2,048 words. For a 12-word phrase, Entropy32 Plus uses 128 bits of conditioned data and calculates a four-bit checksum. The combined 132 bits are divided into twelve 11-bit groups, with each group selecting one word. The 24-word setting uses 256 bits and an eight-bit checksum, producing 24 word indexes from the resulting 264-bit sequence.

    As explained in crypto.news’ seed phrase guide, recovery phrases hold the information needed to restore wallet access. Anyone who obtains the correct words in their proper order can recreate the wallet’s keys. A seed phrase is not itself a collection of independently generated words; modern Bitcoin wallets derive many private keys from one master seed, meaning weakness in the original entropy can affect every address generated from it.

    Entropy32 Plus compiles the complete BIP39 English wordlist into its firmware, occupying 13,117 bytes — roughly 43% of the microcontroller’s flash capacity. With the OLED interface, SHA-256 implementation, and collection logic included, the compiled program uses 30,006 of the chip’s 30,720 available bytes, leaving only 714 bytes unused.

    Offline Design Keeps Seeds Away from Connected Devices

    The published hardware files list no wireless communications hardware. Users operate the generator through two buttons and read the phrase from a 0.91-inch OLED screen. Generated word indexes remain temporarily in the microcontroller’s RAM. Once the user records the phrase, pressing both buttons opens a confirmation process that overwrites the word array and restarts entropy collection.

    The firmware clears the original pool after copying it for processing, and temporary hash, checksum, and entropy buffers are overwritten after the BIP39 indexes have been calculated. According to the developer, the device does not save a recovery phrase to persistent memory. However, the open-source design does not include a secure element or a mechanism that proves the installed firmware matches the public code.

    Physical isolation removes several network-based attack routes, but it does not verify that a device was assembled correctly or loaded with trusted software. A modified unit could display predetermined words or retain generated data without changing its outward appearance. Crypto.news’ wallet security guide recommends keeping recovery phrases away from phones, cloud accounts, photographs, and other connected systems. Entropy32 Plus’s screen-based process is consistent with offline transcription, provided the hardware and firmware are trusted.

    Independent Entropy Testing Remains Unfinished

    The repository states that the Geiger-based entropy source has not been tested under NIST Special Publication 800-90B, which covers the evaluation of physical entropy sources and includes separate procedures for independent and non-independent data. Higgins calls for recording raw inter-arrival times over a long period and examining them with NIST’s non-IID minimum-entropy estimators. The firmware comments warn that general statistical test results alone would not establish sufficient entropy.

    “Please verify the entropy source you intend to use otherwise understand that you will be using the device at your own risk,”

    the README states.

    The developer recommends mixing the Geiger-derived data with another independently validated source before creating a wallet for valuable funds. As of September 13, no outside audit, NIST assessment, or public raw-event dataset was included in the repository.

    Past Wallet Failures Underscore Testing Importance

    Past wallet failures demonstrate why entropy testing extends beyond confirming that final words follow BIP39 formatting. Crypto.news reported that Kraken’s security chief called for independent wallet testing after a Coldcard seed-generation vulnerability. A related technical review explained how weak entropy can expose Bitcoin wallets without revealing which people use the affected devices; attackers can generate possible seeds, derive their public addresses, and search the blockchain for matches.

    Crypto.news later reported that predictable seed generation remained exploitable after the underlying flaw had existed for years. Correcting faulty firmware cannot repair phrases generated earlier; affected users must create new wallets and transfer their assets.

    Active Development Without Production Release

    Entropy32 Plus remains under active development. Its commit history shows an initial commit dated September 4, followed by firmware, circuit-board, and enclosure changes. As of September 13, the repository had no tagged production release or published timetable for completing an independent security assessment.

  • Poloniex Sparks Memecoin Interest with Community Tweet

    Poloniex Sparks Memecoin Interest with Community Tweet

    Poloniex Tweet Sparks Memecoin Speculation Across Crypto Community

    Poloniex has ignited fresh speculation in the cryptocurrency market with a recent tweet hinting at a potential surge in memecoin activity. The post, which has attracted significant engagement across social platforms, has traders and analysts scrutinizing the memecoin sector for the next breakout opportunity.

    Market Context and Community Reaction

    The broader crypto market continues to send mixed signals, with momentum diverging across major assets. Against this backdrop, Poloniex’s commentary on a possible memecoin run has amplified discussions within trading circles. While the exchange did not name a specific token, the community’s enthusiastic response underscores how quickly sentiment can shift when a major platform signals interest in a niche sector.

    This latest signal follows Poloniex’s Mission: Moon campaign, a creative outreach effort built around popular meme culture that has already heightened community interaction. The exchange’s pattern of blending social engagement with market narratives has become a recognizable part of its brand strategy.

    Key Developments for Traders

    • Poloniex’s tweet highlights potential upcoming memecoin activity, triggering heightened trader interest.
    • The post has generated notable engagement, reflecting strong community responsiveness.
    • Speculation is widespread regarding which memecoins may benefit, fueling buzz across trading forums.
    • Increased trading volumes and volatility in the memecoin market are possible outcomes.
    • Poloniex continues to leverage creative campaigns to foster community interaction around emerging trends.

    Token Metrics and Market Sentiment

    Current market conditions reflect cautious optimism. Although Poloniex has not disclosed specific trading volume data, the surge in social media discourse suggests investors are actively evaluating potential memecoin positions. Historically, such conversations often precede measurable market movements, making this a notable moment for participants monitoring early-stage trends.

    As a cryptocurrency exchange offering a wide array of trading pairs — including numerous memecoins — Poloniex operates under relevant financial regulations that guide its operations and outreach. Its history of community-driven campaigns positions it as an influential voice in shaping short-term market narratives.

    Levels and Signals to Monitor

    Traders are closely tracking Poloniex’s subsequent updates and the evolving sentiment across memecoin communities. The excitement generated by the initial tweet could translate into increased trading activity as investors position for potential price swings. Ongoing discussions within the community will likely further refine trading strategies in the near term.

    The interplay between social media trends and trading behavior remains a critical factor to watch over the coming days, particularly for assets driven by narrative momentum rather than fundamental catalysts.

  • Altcoin Price Surges 11-Fold

    Altcoin Price Surges 11-Fold

    Lisk (LSK) Surges Over 500% in 24 Hours, Triggering $38 Million in Liquidations

    Lisk ($LSK) emerged as one of the most volatile altcoins in the cryptocurrency market over the past 24 hours, posting an intraday price surge of 512.7% before a sharp pullback. The token reached a high of $1.71 before retracing to approximately $0.98, according to market data.

    Record Liquidations and Short Squeeze

    Coinglass data indicates that approximately $38.37 million worth of $LSK positions were liquidated in the last 24 hours, making Lisk the market leader for liquidation volume during the session. On-chain analysis platforms noted the price climbed from a low of $0.20 to a peak of $2.37—an 11-fold gain from the session low. Roughly $36 million in short positions were wiped out during the rapid ascent, signaling a severe short squeeze.

    Alleged CEO Wallet Moves 3.3 Million LSK to Binance

    Following the price spike, on-chain investigators flagged a notable transfer from a wallet allegedly linked to Lisk management. Approximately five hours after the sharp rise, an address believed to belong to Lisk CEO Max Kordek transferred 3.3 million $LSK to Binance. The transferred tokens were valued at approximately $3.79 million at the time of the transaction. Analysts noted this address used the same Binance deposit address previously utilized by the Lisk CEO for gas fees.

    Ecosystem Transformation and Token Supply Reduction

    The extreme price action coincides with a comprehensive restructuring of the Lisk ecosystem. Key developments include:

    • Strategic Pivot: Lisk announced a shift toward a treasury and fund operations platform targeting business finance teams.
    • Lisk Chain Shutdown: The existing Lisk Chain is scheduled to be shut down on October 31st. Existing applications have the option to migrate to the Celo network.
    • DAO Termination: The Lisk DAO has accepted a proposal to terminate the DAO structure.
    • Token Burn: The project initiated a process to burn 100 million $LSK. If completed, the total supply will decrease from 400 million to 300 million tokens.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice.

  • Major Shiba Inu (SHIB) Pattern: Triangle Breakout Nears as Whale Concentration Hits 94.68%

    Major Shiba Inu (SHIB) Pattern: Triangle Breakout Nears as Whale Concentration Hits 94.68%

    Shiba Inu ($SHIB) is exhibiting classic pre-breakout conditions as the token compresses at the apex of a large symmetrical triangle on the daily chart. Simultaneously, on-chain data from Etherscan reveals an extreme concentration of supply among a tiny cohort of wallets, a dynamic that suggests any directional move could be swift and decisive.

    Whale Dominance Defines $SHIB Market Structure

    According to Ethereum’s Token Analytics module, 94.68% of the circulating SHIB supply is controlled by just 808 addresses, representing a mere 0.05% of all token holders. The disparity is pronounced: the top 100 wallets alone command 82.73% of the supply, while the vast majority of retail investors—numbering in the millions—hold only 0.04% of tokens.

    This structural reality means price trajectory depends almost entirely on the trading decisions of a few hundred entities capable of directing trend irrespective of broader retail demand. With liquidity locked in such a narrow group, a breakout from the current technical pattern is likely to produce a directional and rapid price impulse.

    Key Technical Levels to Watch

    Traders are monitoring two critical triggers at the triangle’s boundaries that will dictate the next major move:

    • Bullish trigger: A daily candle close above $0.00000540 resistance would open a direct path toward $0.000006 and $0.000008.
    • Bearish trigger: A break below psychological support at $0.00000500 would likely prompt large holders to cut losses, sending $SHIB to new local lows.

    Price Compression at Critical Apex

    On the daily TradingView chart, the descending resistance trendline from the August highs near $0.00000600 has converged with the long-term ascending support line, trapping price near $0.00000520 after a 1.71% decline over the past 24 hours. The Relative Strength Index (RSI) sits at a neutral 54.54, signaling a temporary equilibrium immediately before the asset exits a corridor that leaves no room for further consolidation.

    Current on-chain market capitalization stands at $5.19 billion. However, given the overwhelming dominance of large holders, the coming breakout—whichever direction it takes—will be driven by the actions of a concentrated few rather than broad market participation.

  • Bitcoin’s Oil Risk Extends to 2027 as IEA Cuts Supply Outlook Again

    Bitcoin’s Oil Risk Extends to 2027 as IEA Cuts Supply Outlook Again

    IEA Cuts 2026 Oil Supply Forecast, Pushes Full Gulf Recovery to 2027

    The International Energy Agency (IEA) has lowered its 2026 global oil supply projection and now expects a full recovery of Gulf exports only in 2027, a timeline that could delay energy-driven relief in borrowing costs for leveraged Bitcoin investors.

    Supply and Demand Both Revised Lower

    In its September 11 report, the IEA projects average global supply of 100.7 million barrels per day (bpd) for 2025, down from 102 million bpd in the August 12 outlook—a downward revision of 1.3 million bpd. On the demand side, the agency forecasts global oil consumption will contract by 2.5 million bpd in 2026 versus 2025, a decline roughly 940,000 bpd deeper than previously expected.

    Weaker consumption would normally ease pressure on tight supplies. However, the IEA estimates global observed inventories fell by 95 million barrels in August, signaling that reduced usage has not yet translated into physical loosening.

    Gulf Export Recovery Remains Uneven

    There are signs of improvement in trade flows. The IEA notes that increased volumes bypassing the Strait of Hormuz and military-escorted shipments through the strait have helped narrow crude export losses. Yet Gulf refined-product and liquefied petroleum gas exports in August remained nearly 60% below February levels. The agency characterizes the recovery as uneven and emphasizes that the 2027 timetable remains a forecast.

    Inflation Expectations Complicate the Path to Cheaper Credit

    For investors borrowing dollars to hold Bitcoin, the connection runs through inflation and interest-rate expectations. Persistent energy-price pressure that keeps rate expectations elevated could postpone financing relief. This risk affects borrowers exposed to broader credit conditions; the IEA reports do not measure changes in Bitcoin-specific borrowing costs.

    The Federal Reserve’s monetary policy framework explains how short-term rates influence lending costs and how expectations of future policy affect longer-term rates and credit terms.

    University of Michigan Survey Shows Rising Inflation Expectations

    A preliminary September survey from the University of Michigan adds a cautionary signal: year-ahead inflation expectations jumped to 4.6% from 4.0% in August, while long-run expectations edged up to 3.4% from 3.3%. The modest move in long-run expectations warrants attention, though a single preliminary reading does not confirm a lasting shift.

    Fed Governor Waller’s Pre-IEA Assessment

    An earlier counterweight came from Fed Governor Christopher Waller. In a September 3 speech, Waller said his concern about energy costs spreading broadly into goods and services prices had not materialized so far. He identified renewed energy pressure and rising longer-term inflation expectations as risks. Waller indicated he could support holding rates steady if disinflation continued, but would consider a hike if August inflation data reversed that progress. Those conditional views preceded the IEA’s latest supply revision.

    Key Test Ahead of September Fed Meeting

    Ahead of the September 15–16 Federal Reserve meeting, the critical test for cheaper credit is whether weaker consumption and recovering flows translate into reduced inflation pressure. Sustained supply recovery and limited spillovers would strengthen the case for easing; persistent price pressure would weaken it. Falling oil demand alone offers Bitcoin borrowers no assurance of financing relief.

  • AMC CEO Challenges Robinhood’s 1:1 Token Backing Claim

    AMC CEO Challenges Robinhood’s 1:1 Token Backing Claim

    AMC CEO Adam Aron Challenges Robinhood’s 1:1 Stock Token Backing Claims

    AMC Entertainment CEO Adam Aron has publicly questioned whether Robinhood’s stock tokens maintain true one-for-one backing if the underlying shares are lent to short sellers. In a series of posts on X dated Sept. 12–13, Aron directed pointed questions to Robinhood CEO Vlad Tenev and Chief Legal Officer Dan Gallagher, following their recent public defense of the company’s tokenized stock products.

    Aron Calls Stock Token Model “Abhorrent”

    In his latest post, Aron called the stock token model “abhorrent” and argued that it conflicts with the purpose of public share ownership. He questioned whether customers could misunderstand the rights attached to the products when Robinhood promotes them using the names and prices of listed companies.

    “If those tokens are theoretically backed 1:1 by real shares, but hypothetically some of those underlying real shares are in turn lent out to short sellers, are the tokens really backed 1:1 in fact?”

    Aron wrote. The question concerns the assets Robinhood holds against its token liabilities. Robinhood’s stock token documentation says Robinhood Assets Jersey Limited issues tokenized debt securities that provide economic exposure to an underlying security.

    How Robinhood’s Stock Tokens Work

    Robinhood says each public-company stock token is backed by a corresponding share. Its documents do not say that the token itself represents legal ownership of the underlying equity. A token holder instead holds a claim against the Jersey issuer. Aron did not cite Robinhood records, custody statements, or onchain evidence showing that the corresponding shares had been lent. His post asked Robinhood to disclose how the backing operates if securities lending occurs.

    Token Holders Lack Shareholder Rights

    Under Robinhood’s structure, the investor receives exposure to movements in the referenced stock’s price. The product can account for distributions such as dividends, but the holder does not appear on the public company’s shareholder register. Token owners lack voting rights attached to the referenced shares. Robinhood’s Key Information Document characterizes the product as a derivative and identifies Robinhood Assets Jersey Limited as its manufacturer.

    The document warns that investors depend on the issuer’s ability to meet its obligations. Ownership of a token therefore differs from direct ownership of AMC common stock, even when the token’s value tracks an AMC share.

    European Rollout and U.S. Regulatory Questions

    Robinhood introduced stock tokens for European customers as part of an international expansion announced in 2025. The company later connected the product line with Robinhood Chain, its blockchain network for tokenized assets. The products are not offered to U.S. persons. Robinhood’s expansion announcement says the stock tokens are issued through Robinhood Assets Jersey Limited and provide exposure to U.S.-listed securities.

    Aron questioned why Robinhood’s U.S. website promotes the concept when domestic customers cannot purchase the products. He described the Jersey structure as an offshore operation designed to function outside U.S. securities laws. Robinhood has not accepted that description.

    Tenev: Companies Cannot Veto Referenced Tokens

    Tenev defended the stock token model during a Sept. 9 CNBC “Squawk Box” interview. He argued that issuers control the rights and duties attached to shares they issue but do not control every separate financial product referencing their stock.

    “Issuers should have control and do have control over the rights and obligations of the stock that they issue, but that doesn’t mean they control everything about it,”

    Tenev said. Tenev stated that issuer consent “depends on what exactly you’re doing.” He maintained that Robinhood’s products “should not automatically require issuer consent,” although no cited court or U.S. regulatory decision has settled that position for Robinhood’s structure. Aron previously said AMC did not authorize, endorse, or participate in the creation of its referenced token. In a prior statement, he called on Robinhood to stop offering the product and said AMC would consult securities lawyers about possible legal and regulatory action.

    Gallagher Rejects AMC Demand

    Gallagher rejected the demand publicly.

    “We know a little something about the U.S. securities laws and will not ‘DECIST,’”

    he wrote on X, reproducing a misspelling in Aron’s earlier post. Gallagher invited AMC to send its lawyers. No public lawsuit filed by AMC over Robinhood’s stock tokens had been identified by Sept. 13. The U.S. Securities and Exchange Commission had not announced an enforcement action involving the AMC-linked product.

    Share Lending and Voting Remain Open Questions

    Robinhood’s public material explains how token prices follow referenced securities, but its available summaries provide limited detail about the custody and possible lending of each backing share. Aron’s latest post asks the company to state whether reserve shares are kept unencumbered or can enter securities-lending transactions.

    A securities loan transfers shares temporarily to a borrower under a separate agreement. Aron’s hypothetical question does not establish that Robinhood uses this arrangement for stock token collateral. A direct answer would require information from Robinhood or its custodian concerning the treatment of reserve shares.

    The company has not published a token-by-token reserve register showing where each corresponding share is held. Its stock token documentation identifies the issuer and product mechanics but does not give token holders direct voting control over the referenced equity. Robinhood therefore controls, directly or through its custody structure, any voting power connected to the underlying shares. Tenev has not announced how votes attached to stock token collateral are exercised.

    Regulatory Warnings and Comparable Cases

    European regulators have raised separate concerns about products that track shares without transferring legal ownership. The European Securities and Markets Authority has warned that tokenized instruments may create investor confusion when buyers do not receive the governance rights attached to conventional shares, Reuters reported.

    OpenAI raised a comparable ownership distinction in 2025 after Robinhood promoted a token tied to the private company. OpenAI said the instrument was not its equity and had not received the company’s endorsement, according to Reuters.

    Robinhood Maintains 1:1 Backing Description

    Robinhood maintains that its tokens can give eligible international customers economic exposure to U.S. securities. The company is developing Robinhood Chain to support tokenized assets, while crypto.news reported that its architecture creates a revenue stream for Arbitrum through chain-related fees.

    As of Sept. 13, Robinhood continued to describe its public-company tokens as one-for-one backed. Neither Tenev nor Gallagher had publicly answered Aron’s specific question about whether shares assigned to that backing may be lent to short sellers.

  • Chainflip Loses 736,442 USDT in TRON Exploit

    Chainflip Loses 736,442 USDT in TRON Exploit

    Chainflip Loses $736,442 in USDT Through TRON Memo Exploit

    Cross-chain protocol Chainflip suffered a security breach resulting in the loss of 736,442.17 USDT after an attacker exploited how the platform processes TRON transaction memos. The incident occurred during the early hours of September 12, prompting the protocol to pause operations while developers investigated and prepared a fix, according to a September 13 incident update.

    An update on yesterday’s exploit affecting Tron $USDT.736,442.17 $USDT was taken. All other funds are unaffected and secure, and impacted users will be made whole.The network stays paused while we finalise the fix and the restart plan.Full update: https://t.co/LTWSqLBOn3
    — CHAINFLIP (@Chainflip) September 13, 2026

    How the TRON Memo Exploit Worked

    Unlike other supported blockchains where Chainflip receives swap instructions through dedicated contract functions, the protocol’s TRON USDT integration relies on transaction memos to read swap instructions attached to TRON transfers. According to the incident report, the attacker discovered a method to attach a new memo to a transaction that Chainflip validators had already signed.

    The protocol’s systems interpreted the added memo as a separate swap instruction. When this new instruction appeared to fail, Chainflip issued a refund — but the original deposit had already produced a payout. Processing the altered memo therefore caused the protocol to pay against the same deposit a second time.

    Chainflip attributed the flaw to its own processing of TRON transaction memos and confirmed that the TRON blockchain, the USDT smart contract, and Tether’s reserve system were not compromised.

    Attack Timeline and Detection

    The attacker repeated the exploit method eight times over approximately 90 minutes. Early attempts used small amounts, with each subsequent attempt nearly doubling the previous one. Only six attempts produced unauthorized payouts totaling 736,442.17 USDT.

    The protocol detected the incident after subsequent USDT payments began failing. Developers traced the failures to the repeated processing of deposits through altered memos. Chainflip suspended network activity to examine whether the vulnerability could affect other assets or integrations. A preliminary review found the exploit was limited to TRON USDT, with remaining vault funds secure.

    The project described this as its first critical security event involving funds taken from protocol vaults, noting that earlier operational problems had not caused comparable losses.

    User Impact and Repayment Plans

    One legitimate user swap worth 115,654.41 USDT remains unpaid, though the funds are still held in Chainflip’s vault and can be released after the network restarts. This transaction is not counted among the six unauthorized payouts.

    Chainflip stated that affected users would be made whole, though the reimbursement method had not been selected or published as of September 13. Several options remain under review. The protocol has notified relevant parties about the stolen funds to track or recover proceeds as they move between addresses and services, but did not name those parties or confirm whether any USDT had been frozen.

    Tether can freeze addresses holding its tokens when acting under applicable legal or enforcement processes. No public statement from Tether or TRON concerning the Chainflip attack had been identified by publication time.

    Network Restart Targeted for Monday

    Chainflip reported that the underlying fix had been completed, but developers still needed to finalize the exact restart procedure. The network will remain paused “until Monday at the earliest,” making September 14 the earliest possible restoration date rather than a confirmed launch time.

    Before reopening, the team plans to finalize a technical restart plan designed to avoid further processing problems. Chainflip has not disclosed whether validators will need new software, a coordinated upgrade, or a governance vote.

    Once the system resumes, the protocol expects to process the pending 115,654.41 USDT swap and begin handling compensation for users whose funds were paid to the attacker. A complete technical report will follow after the restart plan is locked down and the network is operating securely, though no publication deadline has been announced.