AI agents are poised to be crypto’s next major vulnerability
AI agents in crypto are increasingly embedded in wallets, trading bots and onchain assistants that automate tasks and make real-time decisions.Though it’s not a standard framework yet, Model Context Protocol (MCP) is emerging at the heart of many of these agents. If blockchains have smart contracts to define what should happen, AI agents have MCPs to decide how things can happen.It can act as the control layer that manages an AI agent’s behavior, such as which tools it uses, what code it runs and how it responds to user inputs.That same flexibility also creates a powerful attack surface that can allow malicious plugins to override commands, poison data inputs, or trick agents into executing harmful instructions.Amazon- and Google-backed Anthropic dropped MCP on Nov. 25, 2024, to connect AI assistants to data systems. Source: AnthropicMCP attack vectors expose AI agents’ security issuesAccording to VanEck, the number of AI agents in the crypto industry had surpassed 10,000 by the end of 2024 and is expected to top 1 million in 2025.Security firm SlowMist has discovered four potential attack vectors that developers need to look out for. Each attack vector is delivered through a plugin, which is how MCP-based agents extend their capabilities, whether it’s pulling price data, executing trades or performing system tasks.Data poisoning: This attack makes users perform misleading steps. It manipulates user behavior, creates false dependencies, and inserts malicious logic early in the process.JSON injection attack: This plugin retrieves data from a local (potentially malicious) source via a JSON call. It can lead to data leakage, command manipulation or bypassing validation mechanisms by feeding the agent tainted inputs.Competitive function override: This technique overrides legitimate system functions with malicious code. It prevents expected operations from occurring and embeds obfuscated instructions, disrupting system logic and hiding the attack.Cross-MCP call attack: This plugin induces an AI agent to interact with unverified external services through encoded error messages or deceptive prompts. It broadens the attack surface by linking multiple systems, creating opportunities for further exploitation.Sequence diagram showing potential cross-MCP attack vectors and risk points. Source: SlowMistThese attack vectors are not synonymous with the poisoning of AI models themselves, like GPT-4 or Claude, which can involve corrupting the training data that shapes a model’s internal parameters. The attacks demonstrated by SlowMist target AI agents — which are systems built on top of models — that act on real-time inputs using plugins, tools and control protocols like MCP.Related: The future of digital self-governance: AI agents in crypto“AI model poisoning involves injecting malicious data into training samples, which then becomes embedded in the model parameters,” co-founder of blockchain security firm SlowMist “Monster Z” told Cointelegraph. “In contrast, the poisoning of agents and MCPs mainly stems from additional malicious information introduced during the model’s interaction phase.” “Personally, I believe [poisoning of agents] threat level and privilege scope are higher than that of standalone AI poisoning,” he said.MCP in AI agents a threat to cryptoThe adoption of MCP and AI agents is still relatively new in crypto. SlowMist identified the attack vectors from pre-released MCP projects it audited, which mitigated actual losses to end-users. However, the threat level of MCP security vulnerabilities is very real, according to Monster, who recalled an audit where the vulnerability may have led to private key leaks — a catastrophic ordeal for any crypto project or investor, as it could grant full asset control to uninvited actors.Crypto developers may be new to AI security, but it’s an urgent issue. Source: Cos“The moment you open your system to third-party plugins, you’re extending the attack surface beyond your control,” Guy Itzhaki, CEO of encryption research firm Fhenix, told Cointelegraph.Related: AI has a trust problem — Decentralized privacy-preserving tech can fix it“Plugins can act as trusted code execution paths, often without proper sandboxing. This opens the door to privilege escalation, dependency injection, function overrides and — worst of all — silent data leaks,” he added. Securing the AI layer before it’s too lateBuild fast, break things — then get hacked. That’s the risk facing developers who push off security to version two, especially in crypto’s high-stakes, onchain environment.The most common mistake builders make is to assume they can fly under the radar for a while and implement security measures in later updates after launch. That’s according to Lisa Loud, executive director of Secret Foundation.“When you build any plugin-based system today, especially if it’s in the context of crypto, which is public and onchain, you have to build security first and everything else second,” she told Cointelegraph.SlowMist security experts recommend developers implement strict plugin verification, enforce input sanitization, apply least privilege principles, and regularly review agent behavior.Loud said it’s “not difficult” to implement such security checks to prevent malicious injections or data poisoning, just “tedious and time consuming” — a small price to pay to secure crypto funds.As AI agents expand their footprint in crypto infrastructure, the need for proactive security cannot be overstated. The MCP framework may unlock powerful new capabilities for those agents, but without robust guardrails around plugins and system behavior, they could turn from helpful assistants into attack vectors, placing crypto wallets, funds and data at risk.Magazine: Crypto AI tokens surge 34%, why ChatGPT is such a kiss-ass: AI Eye
Is World’s biometric ID model a threat to self-sovereignty?
The crypto industry is no stranger to controversy, yet few projects have drawn more scrutiny than Sam Altman’s World, formerly known as Worldcoin.Promising to verify human uniqueness through iris scans and distribute its WLD token globally, World positions itself as a tool for financial inclusion. However, critics argue the project’s biometric methods are invasive, overly centralized, and at odds with the ethos of decentralization and digital privacy.At the heart of the critique is the claim that biometric identity systems cannot be truly decentralized when they rely on proprietary hardware, closed authentication methods, and centralized control over data pipelines.“Decentralization isn’t just a technical architecture,” Shady El Damaty, co-founder of Holonym Foundation, told Cointelegraph. “It’s a philosophy that prioritizes user control, privacy, and self-sovereignty. World’s biometric model is inherently at odds with this ethos.”El Damaty argued that despite using tools like multiparty computation (MPC) and zero-knowledge (ZK) proofs, World’s reliance on custom hardware — the Orb — and centralized code deployment undermines the decentralization it claims to champion.“This is by design to achieve their goals of uniquely identifying individual humans. This concentration of power risks creating a single point of failure and control, undermining the very promise of decentralization,” he said.When reached out for comment, a spokesperson for World pushed back against these claims. “World does not use centralized biometric infrastructure,” they said, adding that the World App is non-custodial, meaning users remain in control of their digital assets and World IDs.The project said once the Orb generates an iris code, the “iris photo will be sent as an end-to-end encrypted data bundle to your phone and will be immediately deleted from the Orb.” The iris code, they claimed, is processed with anonymizing multiparty computation so “no personal data is stored.”World’s disclosure regarding personal custody. Source: WorldEvin McMullen, co–founder of Privado ID and Billions.Network, said that World’s biometric model is not “inherently incompatible” with decentralization but faces some challenges in implementation around data centralization, trust assumptions, and governance.Related: Sam Altman’s World raises $135M from Andreessen, Bain, to expand networkA pattern of tech overreach?El Damaty also drew a parallel between OpenAI’s large-scale scraping of “unconsented user data” and World’s collection of biometric information.He argued that both reflect a pattern of aggressive data acquisition framed as innovation, warning that such practices risk eroding privacy and normalizing surveillance under the banner of progress.“The irony here is hard to miss,” El Damaty claimed. “OpenAI built its foundation by scraping vast amounts of unconsented user data to train its models, and now Worldcoin is taking that same aggressive data acquisition approach into the realm of biometric identity.”In 2023, a class-action lawsuit filed in California accused OpenAI and Microsoft of scraping 300 billion words from the internet without consent, including personal data from millions of users, such as children.In 2024, a coalition of Canadian media outlets, including The Canadian Press and CBC, sued OpenAI for allegedly using their content without authorization to train ChatGPT, claiming copyright infringement.ChatGPT storing personal information against its claims. Source: Sandi FaticWorld, however, rejects this comparison, emphasizing that it is a separate entity from OpenAI. The company said that it neither sells nor stores personal data, citing its use of privacy-preserving technologies such as multiparty computation and zero-knowledge proofs.The scrutiny also extends to World’s user onboarding. The project says it ensures informed consent through translated guides, an in-app Learn module, brochures, and a Help Center.However, critics remain skeptical. “People in developing nations, who World… has mainly been targeting up until this point, are easier to bribe and often don’t understand the risks involved with ‘selling’ this personal data,” El Damaty warned.Several global regulators have pushed back on World’s operations since its launch in July 2023, with governments like Germany, Kenya and Brazil expressing concerns over potential risks to the security of users’ biometric data.In the most recent setback, the company faced challenges in Indonesia after local regulators temporarily suspended its registration certificates on May 5.Related: ‘Humans can tell when it’s a human’ — Community mocks Worldcoin’s Orb MiniThe risk of digital exclusionAs biometric systems like World’s gain traction, questions are emerging about its long-term implications. While the company promotes its model as inclusive, critics say the reliance on iris scans to unlock services could deepen global inequality.“When biometric data becomes a prerequisite for accessing basic services, it effectively creates a two-tiered society,” said El Damaty. “Those willing (or coerced) into giving up their most sensitive information gain access… while those who refuse… are excluded.”World maintained that its protocol does not require biometric enrollment for basic participation. “You can still use an unverified World ID for some purposes even if you do not visit an Orb,” it said, adding that the system uses ZKPs to prevent linking actions back to any specific ID or biometric data.There are also concerns that World could become a surveillance tool — especially in authoritarian regimes — by centralizing biometric data in a way that may attract misuse by powerful actors.World dismisses these claims, asserting that its ID protocol is “open source, permissionless,” and designed so even government applications cannot tie back a user’s activity to their biometric data.The debate also extends to governance. While World says its protocol is moving toward greater decentralization — highlighting open-source contributions and the governance section of its white paper — critics argues that meaningful user ownership is still lacking.“We need to build systems that allow individuals to prove their humanity without creating centralized repositories of biometric or personal data,” said El Damaty. “This means embracing zero-knowledge proofs, decentralized governance, and open standards that empower individuals, not corporations.”Related: Sam Altman’s eye-scanning crypto project World launches in USThe need for secure identity systemsThe urgency behind developing secure identity systems isn’t without merit. As artificial intelligence grows more sophisticated, the lines between human and non-human actors online are blurring.“Risks at the nexus of AI and identity are not limited to any one kind of government system or region,” Privado ID’s McMullen said. She claimed that without reliable verification for both humans and AI agents, digital ecosystems face growing threats—from misinformation and fraud to national security vulnerabilities.“This is a national security nightmare, where unaccountable, unverifiable non-human actors may now be able to engage with global systems and networks, and legacy systems are not built for these types of verification and contextual logic,” McMullen added.Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24
What's the HYPE about? Hyperliquid's 'Solana' moment eyes 240% gains
Key takeaways:HYPE is mirroring Solana’s 2021 breakout structure, targeting a 240% rally by July.Familiar crypto fractals suggest HYPE could spark similar momentum-driven hype.Hyperliquid's native token, HYPE, is mirroring a strikingly similar price structure to Solana’s (SOL) early 2021 breakout — one that preceded a 300% rally.HYPE chart fractal targets 240% rally by JulyIn January 2021, Solana broke out from a prolonged consolidation phase just as marketwide interest began accelerating. The breakout, highlighted by a decisive flip above key Fibonacci retracement levels, triggered a vertical rally that saw SOL jump to the 4.618 Fib retracement line around $19 from roughly $4.90 in under two months, marking a 291% surge.SOL/USD daily price chart. Source: TradingViewFast forward to May 2025, HYPE’s daily chart is showing the same bullish structure following its 270% rebound from $10 lows in April, aligning with its 0.0 Fibonacci retracement line.On May 23, HYPE broke above its 1.0 Fibonacci retracement level (~$35.88), echoing the early stages of SOL’s explosive run in 2021.HYPE/USD daily price chart. Source: TradingViewMoreover, the relative strength index (RSI) for HYPE has entered deeply overbought territory (above 84), which, while suggesting caution in the short term, also underscores the strength of the current momentum, much like Solana’s RSI profile during its 2021 breakout.If HYPE continues to follow this fractal, the 1.618 Fibonacci extension level near $51.68 appears to be the next logical target. Beyond that, the 4.618 level around $128 could mark the peak of this potential rally, a 240% move from its recent breakout zone near $35.Hyperliquid is like Solana and FTX combined — analystPopular analyst and commentator Ansem highlights that Hyperliquid’s vision is very similar to what Solana and FTX aimed to build during their early partnership: a high-performance, low-cost crypto trading experience.He argues that, unlike FTX’s centralized architecture, Hyperliquid is fully onchain.Source: X/AnsemNearly 97% of all trading revenue goes directly back to HYPE tokenholders, Ansem noted, adding that such fundamentals will assist the Hyperliquid token to reach “all-time highs soon.”Psychologically, traders are often drawn to familiar and previously successful patterns. In 2017, Ether (ETH) mirrored Bitcoin’s (BTC) 2013 arc almost identically, from the parabolic blow-off top to the retracement and range-bound recovery phase.BTC/USD and ETH/USD fractal comparison chart. Source: TradingViewWhen traders recognize that HYPE could be repeating Solana’s 2021 trajectory visually and fundamentally, it may reinforce bullish conviction and draw in speculators hoping to catch the next “Solana” moment.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Pakistan allocates 2,000MW power for Bitcoin mining and AI centers
Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.Related: Trump-backed World Liberty Financial partners with Pakistan Crypto CouncilPakistan unveils tax incentives to attract investorsPer the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly welcomed the development, calling it a “turning point” for the country’s digital economy.Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.Saqib first proposed using the country’s runoff energy to fuel Bitcoin mining at the Crypto Council’s inaugural meeting on March 21.The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.Related: Pakistan proposes compliance-based crypto regulatory framework — ReportPakistan creates Digital Asset AuthorityOn May 21, Pakistan’s Ministry of Finance endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: ChainalysisData from Statista also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24
Bitcoin trader swaps $1.25B long for short as BTC price slides under $108K
Key points:Bitcoin is heading further away from its latest all-time highs as US trade tariffs dictate the mood.Traders are unfazed, arguing that BTC price action can retest even lower levels while maintaining its bull run.Hyperliquid trader James Wynn goes short BTC after closing a long worth $1.25 billion.Bitcoin (BTC) failed to maintain $108,000 into the May 25 weekly close as price action struggled to shake off new US trade war woes.BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewTrump “hot air” blamed as Bitcoin halts price discoveryData from Cointelegraph Markets Pro and TradingView showed BTC/USD staying near multiday lows.After snap losses accompanied comments by US President Donald Trump over 50% tariffs on goods from the EU, crypto immediately felt the heat, and $112,000 remained Bitcoin’s latest all-time high.Further episodes, this time involving goods from specific tech giants, continued the impact, leading market participants to complain about Trump’s hold over volatility.Source: Truth Social“More hot air from the Manipulator in Chief,” Keith Alan, co-founder of trading resource Material Indicators, wrote in part of a response on X.Alan nonetheless had good news for Bitcoin bulls, arguing that price had more room to retest support without extinguishing the broader uptrend.“The MACRO trend line and 2 key Moving Averages on the Bitcoin Daily chart currently have confluence with the Yearly Open,” he noted, referring to the BTC/USD 2025 opening level at around $93,500. “As long as BTC is trading above that zone, the Bull trend is still intact.”BTC/USD 1-day chart. Source: Keith Alan/XPopular trader Crypto Tony held a similar view, suggesting that even another $4,000 drop from current levels by the weekly close would be acceptable.$BTC / $USD - Update A close above $108,000 this week would be perfect, but a close above $104,000 is equally as ok as we clear the resistance zone pic.twitter.com/f1jYRouinj— Crypto Tony (@CryptoTony__) May 25, 2025Fellow trader Merlijn eyed a classic short-term BTC price magnet in the form of a new “gap” on CME Group’s Bitcoin futures.“$BTC just left a fresh CME Gap at $107,230,” he showed on the day. “These gaps don’t stay open for long. Expect price to come back and fill it. Eyes on that level.”BTC/USD 1-hour chart. Source: Merlijn The Trader/XBTC trading giant Wynn flips shortIn a move that quickly caught the attention of market observers, meanwhile, one large-volume trader suddenly flipped short on BTC this weekend.Related: Bitcoin 'looks exhausted' as next bear market yields $69K targetAs Cointelegraph reported, Hyperliquid trader James Wynn had previously opened a $125 billion long position but began losing money over the Trump volatility.As noted by research firm Lookonchain, not only had Wynn closed his long but had replaced it with a new short position worth around $110 million.Top trader @JamesWynnReal has flipped bearish on $BTC, switching from long to short.He opened a $BTC short position of 1,038.7 $BTC($111.8M) at $107,711.1 an hour ago, with a liquidation price of $149,100.https://t.co/BMeuztgBNE pic.twitter.com/uLypq5kLTj— Lookonchain (@lookonchain) May 25, 2025“That's a lot of trading for an illiquid choppy weekend,” trader Daan Crypto Trades wrote while reacting to the switch on X. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Crypto investor charged with kidnapping, torturing an Italian for passwords
A Manhattan crypto investor is facing serious charges after allegedly kidnapping and torturing an Italian man in a disturbing bid to extract access to digital assets.John Woeltz, 37, was arraigned on Saturday in Manhattan criminal court following his arrest on Friday. He stands accused of holding a 28-year-old Italian man captive for weeks inside a luxury townhouse in Soho, reportedly rented for $30,000 per month.According to police reports cited by The New York Times, the victim arrived in the US on May 6 and was allegedly abducted by Woeltz and an accomplice.The attackers are said to have stolen the man’s passport and electronic devices before demanding the password to his Bitcoin (BTC) wallet. When he refused, the suspects allegedly subjected him to prolonged physical abuse.Source: Mario NawfalRelated: Violent crypto robberies on the rise: Six attacks that targeted investorsCrypto victim beaten, electroshockedThe victim described being beaten, shocked with electricity, assaulted with a firearm and even dangled from the upper floors of the five-story building.He also told police that Woeltz used a saw to cut his leg and forced him to smoke crack cocaine. Threats were also reportedly made against his family.Photographic evidence found inside the property, including Polaroids, appears to support claims of sustained abuse. The victim managed to escape on Friday and alert authorities, leading to Woeltz’s arrest.Woeltz was charged with four felony counts, including kidnapping for ransom, and entered a plea of not guilty. Judge Eric Schumacher ordered him to be held without bail. He is expected back in court on May 28.A 24-year-old woman was also taken into custody on Friday in connection with the incident. However, she was seen walking freely in New York the next day, and no charges against her were found in the court’s online database.Authorities have yet to clarify the relationship between the suspect and the victim or whether any cryptocurrency was ultimately stolen.Related: Crypto crime goes industrial as gangs launch coins, launder billions — UNCrypto executives turn to bodyguardsExecutives and investors in the crypto industry are increasingly seeking personal security services as kidnapping and ransom cases surge, especially in France.On May 18, Amsterdam-based private firm Infinite Risks International reported a rise in requests for bodyguards and long-term protection contracts from high-profile figures in the space.French authorities have responded by introducing enhanced protections for crypto entrepreneurs and their families, including security briefings and priority access to police assistance.This comes amid a recent surge in kidnappings and ransom attempts. David Balland, the co-founder of hardware wallet company Ledger, was kidnapped in January 2025 and held for ransom for several days before being rescued by French police.In May 2024, the father of an unnamed crypto entrepreneur was freed from a ransom attempt after French law enforcement officials raided the location in a Paris suburb where the individual was being held hostage by organized criminals.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
Bitcoiners fire back at Aussie senator's 'you can't eat Bitcoin' remark
Australian Senator Gerard Rennick has drawn criticism from the Bitcoin community following his remarks referring to Bitcoin as a Ponzi scheme and questioning the asset’s value because it can’t be eaten.“You can’t eat Bitcoin,” Rennick said in a May 23 X post, responding to an X user who questioned his stance after Bitcoin hit a new all-time high of $111,970 on May 22.Rennick says Bitcoin will go to $1 million but is a “Ponzi Scheme”“Bitcoin will ultimately go to $1 million dollars. Why because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply constrained product,” Rennick said.“What exactly will this product produce?” Rennick said. He added that Bitcoin (BTC) will produce “absolutely nothing” and Australia “needs real engineers not financial engineers.”Source: Gerard RennickBitcoiners across the world were quick to respond to Rennick’s comments. The Australian Bitcoin Industry Body (ABIB) said Rennick’s remarks about “Bitcoin reveal a deep misunderstanding.” The ABIB added:“This matters, because misunderstanding leads to misrepresentation. And misrepresentation leads to bad policy.”Unchained podcast host Laura Shin said, “You also can’t eat the internet, so do you oppose that too?” Bitcoin Marathon team lead Jimmy Kostro said, “This is definitely going to age well. Please enlighten us with more of your deep and nuanced understanding of Bitcoin.”Source: CoinvisionRennick responded to the criticism and said he doesn’t “need to explain anything.”“It’s pathetic how the Bitcoin community needs reassurance from a politician - the very people they claim they want to be free from,” Rennick said.The Bitcoin community has frequently spoken out when prominent individuals have expressed anti-Bitcoin views. Related: Bitcoin inflows projected to reach $420B in 2026 — BitwiseOnly a few weeks ago, Arizona Governor Katie Hobbs experienced backlash from the Bitcoin community after her decision to veto a bill that would have allowed the state to hold Bitcoin as part of its official reserves.Casa co-founder and cypherpunk Jameson Lopp said, “This will age poorly.” Meanwhile, Bitcoin entrepreneur Anthony Pompliano said, “Imagine the ignorance of a politician to believe they can make investment decisions.” Crypto lawyer Andrew Gordon said, “We need more elected officials who understand that Bitcoin and crypto are the future.”The Bitcoin community also pushed back when the US government decided to transfer $1.9 billion of Bitcoin to Coinbase in December 2024.Magazine: AI cures blindness, ‘good’ propaganda bots, OpenAI doomsday bunker: AI Eye
ARK Invest CEO Cathie Wood says crypto exchange-traded funds (ETFs) will likely maintain their place in the economy, regardless of how widespread crypto wallet adoption becomes over the next decade.“I think ETFs are an important stepping stone because, you know, wallets seem so complicated, so much friction for consumers, they just wanna push a button,” Wood said at the Solana Accelerate event in New York on May 23.Wallets remain an insurance policy, says Wood“So ETFs for those who want the convenience, I don’t think, will lose a lot of their luster,” she said. “But they will be a stepping stone into wallet-based.” Wood reiterated the extra layer of protection that crypto wallets provide:“These are insurance policies against something going wrong in the traditional world.”Bitbo data suggests that there are around 200 million active Bitcoin (BTC) wallets worldwide. Meanwhile, the trading week ending May 23 saw approximately $2.75 billion inflows into US-based spot Bitcoin ETFs, coinciding with Bitcoin reaching a new all-time high of $111,970 on May 22.Cathie Wood spoke to ETF analyst Eric Balchunas at Solana Accelerate on May 23. Source: SolanaSince spot Bitcoin ETFs launched in the US in January 2024, approximately $44.49 billion in inflows have been recorded, according to Farside data. Meanwhile, spot Ether (ETH) ETFs have seen approximately $2.77 billion in inflows since launching in July 2024.Wood said that spot Ether ETFs were “less successful than people were expecting” because the US Securities and Exchange Commission did not allow staking. On May 21, the SEC delayed its decision on Bitwise’s application to add staking to its Ether exchange-traded fund.However, Wood still views Ether as the entry point for new investors to familiarize themselves with smart contracts before exploring other cryptocurrencies, such as Solana (SOL). “So they might start in the smart contract world with Ether, but once they study the technology, and follow the developers, and see the uptake by consumers, I think they will get there,” Wood said.Related: ‘We are worried about a recession,’ but there’s a silver lining — Cathie WoodWood said that the launch of US President Donald Trump’s memecoin, Official Trump (TRUMP), in January on the Solana network may have caused investors to be skeptical of Solana.“Institutions and you’re saying 60-year-olds…I think they might be a little turned off by what happened with the Trump memecoin,” Wood said. Just days after its launch on Jan. 17, TRUMP slid around 50% after the president made no crypto-related “day one” executive orders.“I mean, that might scare them,” Wood said. Her comments came in response to ETF analyst Eric Balchunas reiterating the point that Bitcoin is “so easy” to explain to a “boomer or adviser” as being digital gold, but other cryptocurrencies “are tougher.”Wood said she is still finalizing her Solana price target and will share it once her research is complete.In April, ARK raised its “bull case” Bitcoin price target from $1.5 million to $2.4 million by the end of 2030, primarily driven by institutional investors and Bitcoin’s increasing acceptance as “digital gold.”Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story
Durov blocked from attending Oslo Freedom Forum — Human Rights Foundation
Telegram co-founder Pavel Durov will not be physically attending the Oslo Freedom Forum in Oslo, Norway, after French courts denied his request to travel to the Scandinavian country.According to an announcement from the Human Rights Foundation (HRF) — a non-profit organization that advocates for universal human rights and individual liberty, and the host of the Oslo Freedom Forum — Durov will still deliver his keynote address remotely over a livestream.“It is unfortunate that French courts would block Mr. Durov from participating in an event where his voice is so needed,” HRF founder and CEO Thor Halvorssen said.Durov continues to be a vocal advocate for free speech and individual liberty. Tech and crypto industry executives closely monitor developments related to Pavel Durov and the implications for individual freedom from his ongoing legal battle in France.Source: Pavel DurovRelated: Pavel Durov rejects EU pressure to censor Romanian election contentDurov claims French intelligence services asked him to censor conservative voicesPavel Durov recently accused French intelligence officials of asking him to censor conservative-leaning political content related to the Romanian presidential elections on the Telegram platform.Durov said that he flatly denied the request. "You can’t 'defend democracy' by destroying democracy. You can’t 'fight election interference' by interfering with elections," Durov wrote in a May 18 Telegram post.Although the Telegram founder did not initially name the intelligence official or the European Union country that asked him to censor the content, Durov later revealed more concrete details. The Telegram co-founder wrote in a May 18 X post:"This spring at the Salon des Batailles, in the Hôtel de Crillon, Nicolas Lerner, head of French intelligence, asked me to ban conservative voices in Romania ahead of elections. I refused. We didn’t block protesters in Russia, Belarus, or Iran. We won’t start doing it in Europe."Durov has repeatedly stated that Telegram will not censor political content on the platform and would exit markets before restricting free speech on the social messaging application.The Telegram co-founder said that complying with such heavy-handed political censorship constitutes a human rights violation.Magazine: Did Telegram’s Pavel Durov commit a crime? Crypto lawyers weigh in
Industry exec sounds alarm on Ledger phishing letter delivered by USPS
Scammers posing as Ledger, a hardware wallet manufacturer, are sending physical letters to crypto users instructing them to "validate" their wallets or risk losing access to funds, in the latest phishing attack to impact the industry.BitGo CEO Mike Belshe shared a picture of the scam letter, which featured a QR code, presumably linked to a malicious phishing site. The letter was sent through the United States Postal Service (USPS), according to the executive."These are all scams do not fall for any of these," Troy Lindsey wrote after receiving a copy of the phishing letter. A copy of the scam Phishing letter. Source: Mike BelsheCointelegraph reached out to Ledger for comment but was unable to obtain a response by the time of publication.This phishing attempt highlights the ever-evolving complexity and tactics of social engineering scams designed to steal crypto private keys, user funds, and other sensitive data from unsuspecting victims.Related: Hackers using fake Ledger Live app to steal seed phrases and drain cryptoCoinbase and crypto users hit hard by phishing attacks in 2025In April 2025, $330 million in Bitcoin (BTC) was stolen from an elderly individual through a phishing attack, onchain detective ZackXBT confirmed in an April 30 X post."Two suspects in the $330 million heist include 'Nina/Mo' — a Somalian who operates a call scam center in Camden, UK — and an accomplice 'W0rk,' who assisted with the site and call," the onchain security analyst said in an update.On May 15, crypto exchange Coinbase announced it was the target of a ransom attempt after customer service contractors, who were later fired by the company, leaked user data to threat actors.The scammers demanded a $20 million ransom, which Coinbase refused to pay, and the stolen data included names, addresses, contact information, and a limited amount of other sensitive account data belonging to a small subset of Coinbase customers.No private keys, login credentials, or accesses to Coinbase Prime accounts were compromised during the leak, according to the exchange.TechCrunch founder Michael Arrington was highly critical of the exchange for the security failure, arguing that it will lead to physical violence against customers exposed in the hack.Magazine: Crypto-Sec: Phishing scammer goes after Hedera users, address poisoner gets $70K
