Deribit will remove its public Proof of Reserves page on Sept. 1 as part of its Coinbase integration, saying roughly 90% of client assets have been moved into Coinbase custody. The removal eliminates daily client-level Merkle verification of balances.

The move reduces public transparency for one of the largest crypto derivatives exchanges, removing a daily tool users could use to independently check solvency. Although Dubai's VARA still mandates reserves, reconciliation, and audits, the change shifts verification from daily public checks to less frequent, request-based disclosures.

Deribit's existing system used a privacy-preserving binary Merkle tree and daily snapshot, letting clients verify their balances and compare aggregate liabilities with published wallet holdings. The exchange has not promised a replacement dashboard or continued client-level Merkle verification, and its methodology already excluded third-party custodians such as Copper ClearLoop.

Cosmos Labs has admitted it mistakenly cleared the critical vulnerability that enabled a $5.7 million exploit across six blockchains, with MANTRA Chain suffering $3.6 million in losses. The admission comes after MANTRA Chain claimed the patch was released only 20 hours before the attack began.

This incident exposes a significant flaw in vulnerability review within the Cosmos ecosystem, potentially undermining trust in the security of cross-chain infrastructure. Since the exploit affected user funds across multiple chains, it raises concerns about the safety of IBC-based interoperability and the accountability of core developers.

The exploit affected six chains, including an estimated $3.6 million loss for MANTRA Chain. MANTRA Chain said the patch did not identify the flaw it was meant to fix, and was released only 20 hours before the attack began.

A Solana-based token called 'Trump Digital GOLD' was promoted by the Trump-linked Real Trump Coins X account and collapsed about 99% within hours, after blockchain analytics firm Lookonchain reported that 15 team-linked wallets dumped 224.5 million GOLD tokens for roughly 3,178 SOL (~$330,000). The promotional posts were later deleted from X.

The episode highlights the risks of celebrity- and politician-linked memecoins, where insider dumping can wipe out retail investors within hours. It also intensifies scrutiny of Trump-associated crypto ventures while the administration pushes Congress to reshape crypto regulation.

Lookonchain noted the token developer held 600 million GOLD while 15 newly created wallets spent $18,657 to buy another 224.5 million tokens, giving the team roughly 82.45% of the total supply. After the 15 wallets sold all of their GOLD for 3,178 SOL (~$330,000), the token's market capitalization fell from about $50 million to $500,000; the Real Trump Coins website still promoted GOLD with a 4% trading fee and a pledge to use 99% of fees for buybacks.

Polygon Labs issued an urgent notice requiring Polygon PoS node operators to upgrade Bor to v2.10.0 or later and Heimdall to v0.11.0 or later after the Austin and Kyoto hardforks activated. Nodes that remained on pre-hardfork binaries have already fallen out of canonical consensus and must catch up to rejoin the network.

The upgrade is mandatory for all Polygon PoS nodes that want to stay in consensus, making it critical for validators and infrastructure providers. It also ships security hardening fixes that reduce resource-exhaustion and liveness risks, strengthening the network ahead of further architectural transitions.

Austin capped gas consumption during Bor's processing of state-sync bridge events and removed the unbounded TxDependency extra-data field, while Kyoto added nesting checks for protobuf.Any messages, capped fee-coin lists, and fixed several checkpoint and signature edge cases. Both hardforks are plain binary upgrades with no state migration, so non-diverged nodes do not need a resync.

The Department of Homeland Security has been using an obscure administrative subpoena known as a 1509 summons to secretly obtain phone and communication records of journalists, non-profits, and unions, often withdrawing the summons once challenged in court to avoid a ruling on its legality.

This practice raises serious Fourth Amendment concerns because the summons is issued without a judge's oversight, allowing the government to bypass the normal warrant process. It affects press freedom, privacy rights, and the ability of advocacy groups to operate without fear of government surveillance.

The 1509 summons is an administrative subpoena intended exclusively for investigations of illegal imports or unpaid customs duties under Title 19 of the U.S. Code. In one case, DHS obtained six months of phone records from T-Mobile for a journalist, including more than 10,000 calls and text messages, without notifying her until months later.

The SEC issued a June 30 concept release requesting public comment on whether its automatic ETF filing pathways can adequately handle exotic products, including crypto assets, event-linked contracts, leveraged strategies, and private assets. Comments are due August 31.

The review could reshape how crypto and event-linked ETFs are approved and regulated in the US, affecting product complexity, custody, liquidity, and valuation requirements. It signals that the SEC is scrutinizing whether familiar ETF tickers are masking unfamiliar risks as assets under management in US ETFs grew from $4 trillion to $12 trillion.

Rule 6c-11, adopted in 2019, let qualifying ETFs under the 1940 Act launch without individual exemptive orders, helping the product count more than double to over 4,600. The SEC is examining whether existing staff authority and review time are sufficient for spot Bitcoin and Ethereum commodity-trust structures, exchange-traded notes, and other non-1940-Act vehicles.

Manchester Airports Group (MAG) suffered a cyberattack that exposed approximately 8.7 million customer records, prompting expert analysis of how the breach occurred and what data was compromised.

The breach affects a major UK airport operator, potentially impacting millions of travelers' personal data. It highlights the persistent vulnerability of critical infrastructure and large customer databases to cyber threats.

The exposed records reportedly include customer data from MAG's airport operations. Experts are examining the attack method and the specific types of information compromised, though official confirmations of the full data scope remain limited.

A $1.1 million hack exploiting a crypto card caused a neobank's token to plummet 49%, according to a report on August 29, 2026.

The incident highlights security vulnerabilities in crypto payment infrastructure and shows how quickly a security breach can erode trust and token value. It underscores the risks faced by digital-first banks that integrate crypto services.

The hack specifically targeted a crypto debit card, resulting in $1.1 million in losses. The neobank's token dropped 49%, reflecting a severe market reaction to the breach.

Polygon Labs disclosed previously private security vulnerabilities in its Bor and Heimdall clients that were silently patched via the Austin and Kyoto hard forks before public disclosure. The flaws included denial-of-service risks, validator resource exhaustion, and checkpoint/milestone processing issues.

This disclosure matters because it reveals that Polygon's proof-of-stake network faced serious stability threats that could have disrupted consensus. It also underscores the importance of timely patching, since nodes running older client versions have already fallen out of consensus.

The most severe issue was in Heimdall, where a specially crafted transaction could force validators to do excessive processing work. Bor v2.10.0 is now required for all Polygon PoS nodes, and Heimdall v0.11.0 is required for validators and full nodes; both upgrades are already active on mainnet.

According to a report dated August 29, 2026, Strategy (NASDAQ: MSTR) faces a renewed threat of removal from MSCI Global Equity Indexes. If removed, passive funds tracking these indexes would be forced to sell their MSTR holdings.

MSCI Global Equity Indexes are used by institutional investors worldwide for benchmarking and asset allocation. Removal would trigger forced selling by passive funds, putting downward pressure on MSTR, a widely watched Bitcoin proxy stock, and potentially dampening crypto market sentiment.

The report from Foreign Policy Journal describes the development as a 'threat' rather than a confirmed decision. MSCI previously paused the exclusion of bitcoin treasury companies in its February 2026 review, but the risk has resurfaced in the August 2026 review cycle.

BitGo has completed the acquisition of NYDIG's institutional trading business for about $42.5 million, adding derivatives, structured products, financing, and capital-markets solutions. The deal includes roughly 30 employees and is structured as a two-step merger with $7 million cash and about $35.5 million in BitGo stock.

This consolidation strengthens BitGo's trading platform to offer institutions custody, trading, financing, and settlement under one roof. It signals growing demand for full-lifecycle digital asset services among asset managers, hedge funds, and family offices, and sharpens NYDIG's focus on mining and HPC data centers.

NYDIG's sale includes earnout provisions, including a $10 million cash payment tied to one revenue milestone and up to $5 million more plus additional shares tied to a second. NYDIG will concentrate on its power-generation, Bitcoin mining, and high-performance computing data-center business, which has a development pipeline exceeding 3 gigawatts.