Autor Cointelegraph By Helen Partz

A suspected third-party Safe module exploit has drained about $3.2 million from wallets across Ethereum and Base, with multiple teams pointing to an external module as the cause.Blockchain security platform Blockaid reported the incident on Monday, saying it involved a contract labeled “SquidRouterModule,” which initially led to confusion over a possible link to the cross-chain protocol Squid.Squid later said on X that the issue was unrelated to its core protocol and instead involved a third-party module integrated into Safe wallets.“A third-party SquidRouterModule was exploited, not Squid’s Router contract,” Squid said, adding that the contract shares its name but not its code.The incident highlights how a trusted wallet module can be used to move funds if it has been granted broad execution permissions within a smart account.86 Gnosis Safes drained for $3 million in about two hoursSafe, formerly Gnosis Safe, is a multi-sign wallet running on multiple networks, which requires a minimum number of users to approve a transaction before execution.It can also be extended with optional modules, which are smart contracts that allow approved code to execute actions on behalf of the wallet.Related: DeFi hacks shake institutional confidence as risks outpace yieldsAccording to Blockaid, the attack affected at least 86 Safe accounts within roughly two hours, with all stolen tokens swapped to Dai (DAI) via attacker-controlled Uniswap V3 pools.Source: PeckShieldAlertThe suspected root cause is a vulnerability in SquidRouterModule, which allegedly allowed the attacker to impersonate authorized delegates and trigger unauthorized token swaps, Blockaid said.Module attribution and Safe responseSafe Labs CEO Rahul Rumalla said the accounts “do not seem to be operated on official Safe Wallet product,” adding that it remains unclear how and where they were created and managed, likely created through externally deployed integrations. Source: Rahul RumallaHe said Safe Wallet surfaces such risks through “Safe Shield,” a feature designed to flag potentially malicious or unverified modules and guards before they are used. The CEO added that the exploited module had already been flagged as malicious by Blockaid, which is included in Safe Shield’s risk detection ruleset.Cointelegraph approached Safe and its CEO for comment but did not receive a response by publication time.Magazine: ETH bears growling, Tom Lee’s buying, XRP to ‘explode’: Market Moves

Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), is working with crypto exchange OKX to launch trading of oil-linked perpetual futures.OKX said Friday it plans to introduce perpetual futures based on ICE’s Brent crude and West Texas Intermediate (WTI) crude benchmarks, two of the world’s most widely used oil price indicators, according to a release shared with Cointelegraph.“These new OKX perpetual contracts, based on ICE’s deep, liquid, transparent, and global oil markets, allow OKX’s customer base […] to access energy benchmark products,” said Trabue Bland, ICE’s senior vice president of futures exchanges.An OKX spokesperson told Cointelegraph the contracts represent the exchange’s first product collaboration with ICE and will settle against ICE’s Brent and WTI benchmark prices, which are widely used across traditional energy markets.The collaboration is the first product announced under a broader partnership with ICE and OKX unveiled in March when ICE invested in the crypto exchange at a $25 billion valuation.Availability limited to licensed jurisdictionsThe oil-linked perpetual futures will only be available in jurisdictions where OKX is licensed to offer perpetual futures trading, the announcement said.OKX global managing partner Haider Rafique said the products will be aimed at retail traders, giving them access to energy benchmarks in a regulated and transparent environment.Source: OKXOil trading moves into crypto perpsPerpetual futures, often called “perps,” let traders bet on whether the price of an asset will go up or down without actually buying it. Unlike traditional futures, these contracts do not have an expiration date, allowing traders to keep positions open continuously.Some centralized exchanges (CEXs) have expanded into oil-linked derivatives in recent months. Binance launched perpetual futures tied to WTI crude, Brent crude and natural gas in April, while Bybit also introduced oil perpetual contracts alongside other commodity-linked products for round-the-clock trading.Related: Surging oil prices have been driving Ether selling pressure: Tom LeeActivity has been particularly strong during periods of rising oil volatility linked to geopolitical tensions in the Strait of Hormuz.ICE presses regulators to clamp down on oil trading on HyperliquidDecentralized derivatives exchange Hyperliquid has emerged as a notable venue for oil-linked perpetual trading amid the rapid growth of decentralized derivatives trading.In the first quarter of 2026, Hyperliquid entered the top 10 derivatives exchanges by trading volume, recording roughly $500 billion in activity and ranking alongside major venues such as Binance and OKX.According to Hyperliquid data, Brent crude oil contracts rank among the platform’s top five most traded markets over the past 24 hours, with about $352 million in daily volume at the time of publication.Top five most traded markets on Hyperliquid. Source: Hyperliquid As the platform’s perpetual futures activity has expanded, ICE and the Chicago Mercantile Exchange (CME) have reportedly urged US regulators to take action against Hyperliquid over its expansion into commodity trading in mid-May.The companies reportedly cited the platform’s “anonymous” and “unregulated” structure as a risk to critical energy markets such as oil and gas, warning it could potentially be used by state actors to bypass sanctions.Magazine: 5 tech predictions the mainstream media got horribly wrong

Polymarket, a global prediction market platform, is reportedly seeking entry into Japan amid growing regulatory scrutiny of the sector worldwide.The company has appointed Mike Eidlin, head of Japan at crypto firm Jupiter, to lead its local efforts and is preparing to lobby for authorization of prediction markets in the country, Bloomberg reported Friday, citing people familiar with the matter.Polymarket is targeting government approval in Japan by 2030, viewing the market as a major untapped opportunity.The plans come as prediction markets, including Polymarket and rival Kalshi, face increased regulatory pressure globally, with countries such as India among the latest to move against the platforms.Japan’s strict gambling rules pose hurdleJapan has strict laws around online gambling, permitting betting only on select government-authorized activities such as horse racing and public lotteries.Authorities have stepped up scrutiny of online betting in recent years, with violations linked to online casino use carrying fines of up to $3,400 and potential prison sentences of up to three years for repeat offenses.Polymarket reportedly said the company has seen “meaningful organic interest from users” in the country and across Asia, adding: “We’re always evaluating opportunities to expand access globally in compliant and locally appropriate ways.”Cointelegraph approached Polymarket for comment but had not received a response by publication.Related: CFTC sues Minnesota, Governor Tim Walz over prediction markets banPolymarket’s Japan community on X already exceeds 53,000 followersDespite only seeking regulatory approval to operate in the country, Polymarket already has a Japan-focused X account with more than 53,000 followers, Cointelegraph was not able to identify any other Polymarket regional community of comparable size on X at the time of writing.Source: Polymarket JapanPolymarket lists Japan among 35 restricted jurisdictions, including the United States, according to its country access policy. However, past reporting indicates users in restricted regions may still access the platform using tools such as VPNs.Trading volumes fall amid regulatory pressure and competitionPolymarket’s trading activity has come under pressure amid rising regulatory scrutiny across multiple jurisdictions and growing competition from platforms such as Kalshi.According to Token Terminal data, Polymarket’s monthly notional trading volume fell nearly 15% in April, while Kalshi saw an increase of about 13%.Polymarket’s monthly notional trading volume. Source: Token TerminalPolymarket’s access is also increasingly restricted globally, with the platform blocked in roughly 34 countries and subject to “close-only” restrictions in four others, according to Start Polymarket data.India is among the latest jurisdictions moving to restrict access to prediction markets, with authorities reportedly preparing blocking orders against rival platform Kalshi following earlier action against Polymarket.Magazine: Should users be allowed to bet on war and death in prediction markets?

The US Federal Reserve proposed creating limited payment accounts that could give legally eligible fintech and crypto-linked banks narrower access to its payment rails without the backstops available to traditional banks.The proposal was released on Wednesday through a Federal Reserve Board request for comment and notice of proposed rulemaking, referring to “skinny master accounts” for nonbank financial institutions.The Fed also encouraged regional Reserve Banks to pause decisions on Tier 3 account-access requests while it finishes the rulemaking, a step staff said is expected to end by Dec. 31, 2026.Source: Eleanor Terrett“The temporary pause will allow the Federal Reserve to solicit and consider public input on payment accounts and to promote consistent implementation,” the announcement said.The move highlights ongoing regulatory tension over crypto access to US payment systems following President Donald Trump’s executive order calling for broader fintech and digital asset integration, while the Fed maintains a more cautious approach.Tier 3 pause expected to end by Dec. 31The Fed expects its temporary pause on Tier 3 master account applications to end on or before Dec. 31, according to a Board memo.The memo also provided a list of “pending account requests” from Tier 3 institutions as of Feb. 28, 2026. The list included companies such as Kraken Financial, the banking arm of cryptocurrency exchange Kraken.Kraken was later granted a limited-purpose master account by the US Federal Reserve Bank of Kansas City in early March 2026. The bank approved the access specifically under a Tier 3 classification.Trump order and limits on direct Fed access by cryptoThe crypto industry has long pursued access to Fed master accounts as a way to connect more directly to the US payment system.The latest proposal does not give crypto exchanges direct access, even though there is broader political support for expanding fintech and digital asset access to the financial system.Related: About 10% of Americans used crypto in 2025, highest level since 2022: FedEven as Trump’s executive order signaled support for wider fintech and digital asset integration, direct access to master accounts would still be unavailable to crypto exchanges. Instead, firms would need to operate through an affiliate that qualifies as an eligible depository institution under the Federal Reserve Act, according to Eleanor Terrett.Source: Eleanor TerrettThe concept of “skinny” payment accounts was first introduced in October by Federal Reserve Governor Christopher Waller and was further developed through policy discussions in early 2026.Unlike master accounts, the proposed payment accounts would be limited to clearing and settlement only. They would not earn interest or provide access to central banking tools such as the discount window or intraday credit.Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Qivalis, a European banking consortium developing a regulated euro stablecoin, expanded to 37 member institutions on Wednesday after adding 25 new banks across 15 countries.The new members include ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. The Amsterdam-based consortium is targeting a second-half 2026 launch, according to a statement shared with Cointelegraph.“We are not merely building payment rails; we are ensuring that European principles around data protection, financial stability and regulatory rigour are embedded into the next generation of digital money,” said Howard Davies, chairman of Qivalis’ supervisory board.The move comes as European institutions race to establish alternatives to US dollar-dominated stablecoins, which currently account for 98% of the market, according to CoinGecko.Spain leads new bank waveSpain emerged as the most represented country among Qivalis’ 25 new members, adding five institutions, including ABANCA, Banco Sabadell, Bankinter, Cecabank and Kutxabank.The country’s strong presence comes alongside broader signs of early adoption in euro-denominated stablecoins, with Brighty data recently pointing to Spain as a leading retail market for Circle’s EURC usage.Source: QivalisTwo new Italian banks joined the consortium. France, Sweden, Greece, the Netherlands, Finland and Ireland each added two new members as well, highlighting broad participation across northern and southern Europe.The diversified expansion strengthens Qivalis’ goal of creating a unified, regulated euro stablecoin infrastructure under the European Union’s Markets in Crypto-Assets (MiCA) framework. ECB stance contrasts stablecoin pushThe consortium’s plans come at a time of renewed debate in Europe over the role of private stablecoins in supporting the euro’s global position.European Central Bank (ECB) President Christine Lagarde said in early May that stablecoins are not Europe’s best route to strengthening the euro’s international role, pushing back against calls to respond to US dollar-backed stablecoins with euro counterparts.Despite that stance, banking-led initiatives like Qivalis continue to gain momentum as institutions seek regulated alternatives to dollar stablecoins.Related: Augustus CEO says banks can’t rebuild for AI and stablecoinsThe consortium has been engaging with crypto exchanges ahead of a planned euro stablecoin launch. In March, Qivalis selected digital asset custody provider Fireblocks for tokenization technology, wallet infrastructure and custody, along with tools supporting compliance.“The euro is Europe’s currency, and on-chain financial infrastructure should carry it – built by European institutions and governed by European rules,” Qivalis CEO Jan Sell said.Magazine: eToro founder timed Bitcoin top perfectly due to belief in 4 year cycles