hodler

25 Apr 2026, 11:39

Brazil outlaws event betting platforms, targets Kalshi and Polymarket

The Brazilian government officially banned 27 prediction platforms, including Kalshi and Polymarket. The National Monetary Council (NMC) issued Resolution No. 5,298, prohibiting derivative contracts based on non-economic events like sports, political elections, and cultural outcomes. Telecommunications regulator Anatel was instructed to shut down the domains of the affected platforms in late April 2026, rendering them inaccessible to users within Brazil. The Brazilian government describes these platforms as gambling schemes disguised as financial instruments. President Luiz Inácio Lula da Silva’s administration also attributes the rising household debt, in part, to unregulated online gambling. Finance Minister Dario Durigan emphasizes that the ban aims to protect citizen savings and curb rising household debt. The 27 platforms were initially targeted for offering “illegal wagering,” before the CMN clarified that trading in derivatives remains legal only if tied to approved economic benchmarks (such as exchange rates or interest rates) and conducted by authorized firms. Polymarket has been blocked for offering unlicensed binary event contracts. At the same time, Kalshi was included in the sweep due to new restrictions on non-financial event contracts, despite having recently partnered with Brazilian brokerage XP International in March 2026. Durigan says prediction markets contravene betting regulations According to Finance Minister Durigan, prediction markets based on elections, sports, and cultural events contravene regulations and lack federal oversight. The Brazilian Central Bank also emphasizes that these platforms bypass authorized financial frameworks, potentially threatening the stability and transparency of the national financial system. Economic Reforms Secretary Regis Dudena also agrees that these platforms bypass Congress-approved regulations, operating in a “gray area” that lacks consumer protection. However, industry experts and critics highlight significant drawbacks regarding the Brazilian government’s focus on protection. They warn that such a broad ban stifles a thriving digital finance sector that could offer unique hedging tools and crucial data for forecasting. Banning regulated platforms like Kalshi (which has partnered with a local brokerage) may also drive users toward even less transparent offshore platforms. Meanwhile, the move to ban prediction markets positions Brazil alongside Colombia and Argentina in classifying them as unregulated gambling rather than financial trading. Presidential Chief of Staff Miriam Belchior emphasizes that the ban aims to protect families from exposure to harmful practices. However, Cryptopolitan notes that losing these prediction markets could affect market intelligence during critical events such as elections. Prediction markets are often valued for their ability to aggregate information more accurately than traditional polls. NMC defines underlying assets for derivative trading The NMC’s resolution establishes a clear boundary between financial trading and what the government characterizes as “gambling disguised as finance.” Derivative contracts are now limited to pre-defined economic and financial benchmarks, including price indices (e.g., inflation rates), interest rates, and exchange rates. The definition provides the legal basis for the current crackdown on platforms like Kalshi and Polymarket. On the other hand, trading in permitted derivatives remains legal only if conducted by firms authorized by the Central Bank of Brazil (BCB) and in compliance with strict secondary regulations. The Brazilian Ministry of Finance and the CMN frame this as a vital step to ensure that the financial system is not used to facilitate “potentially destructive” gambling habits that worsen household debt. However, it is important to note that the regulatory approaches of Brazil and the U.S. toward prediction markets diverged significantly in 2026. They are moving in opposite directions regarding the legality of non-economic event contracts. Brazil’s CMN has adopted a restrictive, categorical approach that effectively bans event-based prediction markets. At the same time, the U.S. CFTC has pivoted toward a more permissive though highly regulated framework in 2026 under Chairman Michael Selig. Specifically, the CFTC classifies event contracts as “swaps” under the Commodity Exchange Act (CEA) because their value depends on an event happening. On February 4, 2026, the CFTC withdrew a prior 2024 proposal that would have categorically banned contracts on elections and sports as “gaming.” The Commission now considers sports and certain political contracts permissible for trading on authorized platforms like Kalshi. Meanwhile, a new Advanced Notice of Proposed Rulemaking (ANPRM) was issued on March 12, 2026, to establish standards for these markets rather than banning them. The only requirement is that these prediction platforms adhere to strict principles regarding market manipulation and trade protection. There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance .

25 Apr 2026, 11:30

VanEck Mid-April 2026 Bitcoin ChainCheck

Summary BTC realized volatility dropped from 56% to 41% as US-Iran tensions eased, while the 7-day average funding rate turned negative to -1.8%, its lowest reading since 2023. Since 2020, 30-day BTC returns during negative funding periods averaged +11.5% versus +4.5% overall, with a 77% hit rate. Sub -5% funding has produced +19.4% returns on 30-day horizons. Hash rate has declined to the 16th percentile over 30 days, marking the densest concentration of episodes since China’s 2021 mining ban. In 6 of 7 past drawdowns, BTC was higher 90 days later with a median gain of +37.7%. Two historically bullish signals are flashing on bitcoin: negative funding rates and a clustered hash rate drawdown, as volatility cools. Weekly Bitcoin ETP Flows ((USD)) Source: Glassnode as of 4/15/2026. Past performance is not a guarantee of future results. Not intended as a recommendation to buy or sell any securities named herein. Following 5 consecutive weeks of outflows from 1/24 through 2/21 totaling roughly -$4B, spot bitcoin ETP (BTC-USD) flows reversed in late February and have been net positive in 6 of the last 7 weeks through 4/11. Funding Rates Turn Negative: A Contrarian Buy Signal Bitcoin price action was energetic over the past 30 days, with several 20% drawdowns and rallies amid the US-Iran conflict. As a ceasefire materialized, BTC realized volatility tumbled from a period high of ~56% to settle around ~41%. Low sentiment on bitcoin pressured the 30-day moving average ((MA)) annualized funding rate ((FR)) to 2.1%, down from 2.7% 30 days earlier. The funding rate now stands at the 10th percentile since November 2020. On a shorter timeframe, the 7-day MA bitcoin funding rate turned negative, hitting its lowest levels since 2023 at (-1.8%). Examining instances since 2020 where 7-day bitcoin funding rates turned negative, there is a substantial uplift in average returns as well as a higher probability of positive returns across 30-day, 60-day, 90-day, and 180-day horizons. The mean return uplift for negative FR periods was +630 basis points (bps), and the data show this uplift scales inversely with the depth of negative funding. For context, the mean 30-day BTC return since 2020 is +4.5%, while the mean 30-day return for negative FR periods was +11.5% with a 77% hit rate. When bitcoin funding dropped below -5% annualized, BTC showed a +19.4% return (+1,400 bps uplift) on 30-day periods and a +70% return (+2,900 bps uplift) on 180-day horizons. Negative FR days produced 19 of the top 50 180-day return periods since 2020, despite occurring only 13.6% of the time. Five of the top 10 single-day BTC returns occurred after purchasing during negative funding periods, as did 10 of the top 20. Options Positioning: Hedging at Peak Bearishness Put premiums reached all-time highs over the last 30 days, reflecting a peak in hedging and bearish positioning. On a relative basis, put premiums paid as a share of BTC spot volume surged +120% year-over-year to reach 10 bps and were up +21% versus the prior 30-day period. On an absolute basis, the 7-day MA for put premiums paid is up +19% month-over-month but has come down -71% since its peak on 3/30. While peak absolute bearishness may have passed, investors remain meaningfully bearish on BTC in relative terms. Put Premiums to Spot Volume More Than 6x Higher Than April 2024 Source: Glassnode as of 4/17/2026. Past performance is not a guarantee of future results. Not intended as a recommendation to buy or sell any securities named herein. Onchain Activity and Long-Term Holder Behavior Bitcoin network onchain activity was generally lower over the past 30 days. Daily transactions surged +22% month-over-month to 545k, reaching the 96th percentile all-time. Despite that jump in volume, daily active addresses slipped -3% month-over-month (51st percentile), while new addresses were down -2% month-over-month. Transfer volume recorded $48.5B/day (81st percentile), down -5% month-over-month as positioning flux dropped alongside volatility declines. The share of active supply in the last 180 days dipped -160 bps to 28.4% (34th percentile), suggesting an increasing tendency toward holder dormancy. Average daily fees dropped -5% month-over-month to ~$169k (49thpercentile) and are down -66% year-over-year, while mean transaction fees fell -22% month-over-month to $0.31 (48thpercentile), well below the $1.27 level from a year ago. Spent Volume Ticked Up for All Long-Term Holders in April m/m Source: Glassnode as of 4/17/2026. Past performance is not a guarantee of future results. Not intended as a recommendation to buy or sell any securities named herein. Note: Many assume “spent volumes” are a good proxy for BTC sales. However, not all long-dormant coin movements represent selling. Some transfers are sent to quantum-resistant addresses, others are contributions to digital asset treasuries (DATs), and some reflect routine wallet maintenance. The most recent 30-day period shows a broad rebound in spent volume across all holding cohorts. The younger end of the long-term holders (1y-2y, 2y-3y, 3y-5y) sent more bitcoin, up +47%, +52%, and +26% month-over-month, respectively, but their activity was -22%, -24%, and -71% below their 12-month averages. Over the past 4 weeks, the 3y-5y group sent the second-smallest amount of bitcoin since December 2023. As spikes in transfer volumes in the 3y-5y group tend to coincide with 4-year cycle traders, it is logical to see these figures pare back as prices wind down and the cycle resets. Longer-term supply holders increased transfer activity over the last 30 days. The 5y-7y, 7y-10y, and 10y+ segments sent 72k, 45k, and 18k BTC in the trailing 30-day period, amounting to +67%, +87%, and +285% above each group’s respective 12-month average. The longest-term holders, the 7y-10y and the 10y+, respectively, reached the 85th and 90th percentiles of transfer activity over the past four years. Difficulty Rate Volatility Hits Highest Level Since 2021 China Mining Ban Source: Glassnode as of 4/20/2026. Past performance is not a guarantee of future results. Not intended as a recommendation to buy or sell any securities named herein. Mining Dynamics: Hash Rate Drawdown Signals Bullish Setup Over the past few months, hash rate and Bitcoin network mining difficulty dropped asymmetrically, with difficulty falling further than hash rate. While this may signal network churn, it is typically associated with above-average forward returns for bitcoin. The 30-day change in hash rate MA has declined to the 16th percentile over 30 days and 9th percentile over 90 days, while the change in difficulty MA is even weaker at the 5th and 6th percentiles, respectively. More striking is the clustering: 3 sustained hash rate decline episodes have occurred in just the past 5 months (December 2025, January-February 2026, March-April 2026). This is the densest concentration of drops since China’s mining ban in 2021. In absolute terms, both metrics remain well below their recent peaks. The hash rate 30-day MA currently sits at 985.5 EH/s, down -7.5% from its all-time high of 1,065.7 EH/s set in late November 2025. Difficulty has declined -10.5% below its November 2025 peaks. Difficulty falling more than hash rate generally reflects the algorithm’s lagging adjustment mechanism and miner volatility. As marginal miners exited through 3 successive episodes, difficulty stepped down in discrete two-week resets and has not yet re-equilibrated to the recovering hash rate. Encouragingly, the most recent episodes are shorter and shallower. The January-February 2026 episode lasted 31 days with a peak change in hash rate of -10.9%, while the March-April 2026 episode lasted just 16 days with a peak decline of -6.7%, ending on April 15, 2026. Across the 7 completed sustained decline episodes on record (excluding the 3 most recent, which lack sufficient forward data), the difficulty adjustment mechanism has acted as a stabilizer, giving surviving miners margin relief that encourages long-term hash rate growth. In 6 of those 7 hash rate drawdown episodes, BTC price was higher 90 days after the episode ended, with a median gain of +37.7% (+2,000 bps uplift). Over 180 days, the median return was +63.1% (+2,190 bps uplift), ranging from -3.5% in June 2022 (the only loss in the dataset) to +199.3% in October 2020. Stepping back, we have identified two strong bullish indicators based on historical data. Both mining rate drawdowns and negative funding rates have been associated with strong forward BTC returns. As such, we have become increasingly bullish on bitcoin. Frequently Asked Questions What is the Bitcoin funding rate, and why does it matter? The Bitcoin funding rate is the periodic payment exchanged between long and short traders in perpetual futures contracts, reflecting whether bullish or bearish positioning dominates. Negative funding rates indicate short traders are paying longs, historically a contrarian signal. Since 2020, 30-day BTC returns during negative funding periods have averaged +11.5% versus +4.5% overall. What does a drop in Bitcoin hash rate mean for the network and price? A drop in hash rate typically indicates that marginal miners are turning off rigs as profitability compresses. While it may signal short-term network stress, historical data show that sustained hash rate drawdowns have been associated with above-average forward BTC returns. In 6 of 7 completed drawdown episodes since 2017, BTC was higher 90 days later, with a median gain of +37.7%. Why do long-term Bitcoin holders’ spending patterns matter? Spent volume by long-term holder cohorts can signal cyclical selling pressure or accumulation. Younger long-term holders (1y-5y) often correlate with 4-year cycle activity, while the longest-term cohorts (7y-10y, 10y+) rarely transact. When older cohorts increase spending, it can indicate profit-taking from some of the most seasoned bitcoin investors, though not all long-dormant movements represent selling. Disclosures Definitions Bitcoin ((BTC)) is a decentralized digital currency without a central bank or single administrator. It can be sent from user to user on the peer-to-peer Bitcoin network without intermediaries. Funding rate is the periodic payment exchanged between long and short positions in perpetual futures contracts, used to keep the contract price aligned with the underlying spot price. Hash rate is the total computational power being used to mine and process transactions on the Bitcoin network, typically measured in exahashes per second (EH/s). Digital Asset Treasuries (DATs) are publicly traded companies that hold significant portions of their balance sheet in digital assets such as Bitcoin, often using debt or equity issuance to fund purchases. Index performance is not representative of fund performance. It is not possible to invest directly in an index. Risk Considerations This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Investments in digital assets and Web3 companies are highly speculative and involve a high degree of risk. These risks include, but are not limited to: the technology is new and many of its uses may be untested; intense competition; slow adoption rates and the potential for product obsolescence; volatility and limited liquidity, including but not limited to, inability to liquidate a position; loss or destruction of key(s) to access accounts or the blockchain; reliance on digital wallets; reliance on unregulated markets and exchanges; reliance on the internet; cybersecurity risks; and the lack of regulation and the potential for new laws and regulation that may be difficult to predict. Moreover, the extent to which Web3 companies or digital assets utilize blockchain technology may vary, and it is possible that even widespread adoption of blockchain technology may not result in a material increase in the value of such companies or digital assets. Digital asset prices are highly volatile, and the value of digital assets, and Web3 companies, can rise or fall dramatically and quickly. If their value goes down, there’s no guarantee that it will rise again. As a result, there is a significant risk of loss of your entire principal investment. Digital assets are not covered by FDIC or SIPC insurance. Digital assets are digital representations of value that function as mediums of exchange, units of account, or stores of value, but they do not have legal tender status. Digital assets are sometimes exchanged for U.S. dollars or other currencies around the world, but they are generally not backed or supported by any government or central bank. Web3 companies include but are not limited to, companies that involve the development, innovation, and/or utilization of blockchain, digital assets, or crypto technologies. All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance. © Van Eck Associates Corporation. Original Post

25 Apr 2026, 11:25

Jupiter adds more JUP to Litterbox Trust, total now at $19.5M in bold treasury move

BitcoinWorld Jupiter adds more JUP to Litterbox Trust, total now at $19.5M in bold treasury move Jupiter, a Solana-based decentralized crypto swap aggregator, announced on April 24 that it added another 211,474 JUP tokens to its Litterbox Trust. This latest deposit, valued at approximately $36,000, brings the total trust value to $19.56 million. The project accumulates JUP by depositing 50% of its protocol revenue into the trust over two years. Jupiter adds more JUP to Litterbox Trust: What this means The Litterbox Trust now holds 113,508,785 JUP tokens. This month alone, Jupiter added 9,405,535 JUP, worth $1.63 million. The trust acts as a strategic reserve for the protocol. It collects a portion of fees generated from swaps on the Solana network. This accumulation strategy shows a commitment to long-term value. By locking away half of its revenue, Jupiter reduces circulating supply. This move can support token price stability. It also builds confidence among holders and traders. The trust is not a typical treasury. It operates as a transparent, on-chain fund. Anyone can verify its holdings on Solana explorers. This openness aligns with DeFi principles of trustlessness and auditability. How the Litterbox Trust works Jupiter channels 50% of all protocol fees into the trust. These fees come from every swap executed on the platform. The process is automatic and occurs in real time. Smart contracts handle the deposits without human intervention. Over two years, this mechanism will accumulate significant JUP. The current pace suggests continued growth. If trading volumes remain high, the trust could exceed $30 million by year-end. Solana aggregator strengthens its treasury Jupiter is the leading DEX aggregator on Solana. It routes trades across multiple liquidity sources. This ensures users get the best prices. The platform processes billions in monthly volume. Building a large treasury gives Jupiter strategic advantages. It can fund future development. It can also support ecosystem grants. The trust provides a safety net during market downturns. Other DeFi protocols use similar strategies. Uniswap and PancakeSwap have fee switches. But Jupiter’s approach is unique. It locks revenue into a dedicated trust rather than distributing it. Comparison with other DeFi treasuries Here is a quick comparison of major protocol treasuries: Protocol Treasury Size Funding Source Jupiter (Litterbox Trust) $19.5M 50% protocol fees Uniswap $2.8B Governance-controlled Aave $1.2B Reserve factor Curve $450M Admin fees Jupiter’s trust is smaller but growing fast. It focuses on a single asset: JUP. This concentration can amplify gains but also carries risk. Impact on JUP token holders The accumulation directly benefits JUP holders. Reduced circulating supply can increase scarcity. This often supports price appreciation over time. The trust also signals that the team believes in the token’s future. Investors should watch the trust’s growth rate. Higher deposits mean higher protocol revenue. This indicates strong platform usage. Monthly deposits of $1.6 million suggest healthy trading activity. However, the trust does not distribute tokens back to holders. It remains locked. This differs from dividend-paying tokens. Jupiter has not announced plans for future distributions. Expert perspective on treasury management “Jupiter’s approach is disciplined,” says DeFi analyst Maria Chen. “Many protocols spend revenue immediately. Jupiter saves it. This builds a war chest for future challenges.” The strategy also reduces sell pressure. Without the trust, Jupiter would sell JUP to cover costs. Now it accumulates instead. This supports the token’s market dynamics. Timeline of Jupiter’s Litterbox Trust The trust launched in early 2024. Here is a brief timeline: January 2024: Jupiter announces the Litterbox Trust concept March 2024: First deposits begin with 10 million JUP June 2024: Trust reaches 50 million JUP September 2024: Value crosses $10 million April 2025: Trust holds 113.5 million JUP, worth $19.56 million The growth has been steady. Each month adds millions of tokens. The two-year accumulation period ends in early 2026. What this means for the Solana ecosystem Jupiter’s success reflects Solana’s overall health. High trading volumes generate fees. These fees flow into the trust. A strong Jupiter indicates a vibrant Solana DeFi scene. Other projects on Solana may adopt similar models. The trust concept is easy to implement. It requires only a smart contract and a revenue source. This could become a standard practice. Solana’s low fees make it ideal for high-frequency trading. Jupiter captures this activity. The trust benefits from every transaction. This creates a positive feedback loop. Risks and considerations No strategy is without risk. The trust holds only JUP tokens. If JUP’s price falls, the trust value drops. This concentration is a double-edged sword. Market conditions can change. A prolonged bear market could reduce trading volumes. Lower fees would slow accumulation. The trust’s growth depends on sustained platform usage. Regulatory uncertainty also exists. DeFi protocols face evolving rules. The trust’s structure may need adjustments. Jupiter’s team must stay compliant. How to verify the Litterbox Trust Users can check the trust’s balance on Solscan. The wallet address is public. Transactions are visible in real time. This transparency builds trust in the system. Jupiter provides regular updates on X (formerly Twitter). The team shares deposit amounts and total holdings. This communication keeps the community informed. Conclusion Jupiter adds more JUP to Litterbox Trust, total now at $19.5M. This strategic accumulation uses 50% of protocol revenue over two years. The trust now holds 113.5 million JUP tokens. This move strengthens Jupiter’s financial position and supports token value. For Solana DeFi, it represents a model of disciplined treasury management. Investors and users should monitor the trust’s growth as a key indicator of platform health. FAQs Q1: What is the Litterbox Trust? The Litterbox Trust is a treasury fund on Solana where Jupiter deposits 50% of its protocol revenue. It currently holds 113.5 million JUP tokens worth $19.56 million. Q2: How does Jupiter fund the trust? Jupiter automatically deposits half of all fees from swaps executed on its platform. Smart contracts handle these deposits without manual intervention. Q3: Can JUP holders access the trust funds? No, the trust is locked and not distributed to holders. Jupiter has not announced plans for future distributions or token buybacks from the trust. Q4: Why is Jupiter accumulating JUP tokens? The accumulation reduces circulating supply, supports token price stability, and builds a strategic reserve for future development and ecosystem grants. Q5: How can I verify the trust’s balance? You can check the trust’s wallet address on Solscan, a Solana blockchain explorer. Jupiter also posts regular updates on X with deposit amounts and total holdings. This post Jupiter adds more JUP to Litterbox Trust, total now at $19.5M in bold treasury move first appeared on BitcoinWorld .

25 Apr 2026, 10:30

XRP And Bitcoin Investors Are ‘Trapped’, But Is There A Way Out?

Crypto pundit RWA Investor said that XRP traders going short on the altcoin are trapped, just like Bitcoin bears . This came as he revealed the roadmap for XRP’s rally to a new all-time high (ATH) of $7. Pundit Says XRP And Bitcoin Bears Are Trapped In an X post , RWA Investor said that the XRP bears and shorts are just as trapped as the Bitcoin bears. He noted that the price movement is mirrored 1:1 with a slight delay, and declared that the range between $1.50 and $1.60 will be broken very soon. Once that happens, the analyst predicts that XRP will rally to between $2 and $3. RWA Investor predicts that XRP will then see another major pullback after that rally before the transition into the third wave begins. He remarked that this price action will be another “pump and dump” and that the third wave will come out of nowhere, but probably right after the next pullback. The analyst predicts a massive bear trap after this third wave. He said that this will happen just to “mess” with the emotions of XRP investors one last time before the altcoin then rallies to the $7 range. He noted that about 80% of the market is driven by psychology and that the bears need to feel in control before the big short squeeze . RWA Investor didn’t provide a timeline for when XRP could reach this level. However, in another X post , he indicated that Fed rate cuts and quantitative easing (QE) are what will spark this rally for the altcoin. The analyst stated that QE is what the market has been waiting for and that everything else is mostly just noise or a distraction. He added that the tightening cycle is over and that QE has arrived. It is worth noting that RWA Investor had also predicted that Bitcoin would rally to $140,000 and XRP to $7 as the CLARITY Act advances. A Chance For XRP To Reach $1.53 Crypto analyst CasiTrades stated in an X post that there is still a chance for XRP to visit between $1.50 and $1.53 as Bitcoin approaches $79,900. She earlier mentioned that XRP was approaching final resistance and that the altcoin was finishing out Wave E of this consolidation, with multiple subwave degrees pointing to $1.53 as a key resistance level . The analyst stated that she expects a few more waves higher into the $1.50 to $1.53 range and that this count remains valid as long as the price does not break the $1.39 support. CasiTrades reiterated that XRP’s price action will depend on Bitcoin’s movement. She noted that a wave into the $79,000 resistance for BTC would likely align with XRP testing this key resistance level.

25 Apr 2026, 09:00

Kelp DAO Hack: Aave DAO Proposes To Contribute 25,000 ETH To Recovery Efforts

Aave DAO has unveiled a proposal to deploy 25,000 ETH from its treasury to support a coordinated recovery effort following the recent Kelp DAO exploit. The move forms part of a broader “DeFi United” initiative aimed at restoring user funds and stabilizing affected lending markets. On April 18, KelpDAO suffered a major attack targeted at its rsETH Ethereum LayerZero adapter, allowing a hacker to drain assets and break the backing relationship between locked ETH collateral and minted tokens across chains. The breach triggered a cascading liquidity and solvency challenge across DeFi platforms that integrated rsETH and its wrapped variant. Over $160,000 ETH Gap Remains As Exploit Recovery Efforts Gain Traction According to the Aave DAO governance proposal , the attacker stole 152,577 rsETH, which is approximately 163,183 ETH based on prevailing conversion rates. Since then, coordinated intervention by ecosystem participants has substantially reduced the gap. Kelp DAO managed to freeze 40,373 rsETH, equivalent to roughly 43,168 ETH. Additionally, the Arbitrum Security Council recovered 30,766 ETH that the attacker still held on its platform. Notably, further recoveries are expected through liquidation processes on lending platforms. The attacker’s positions on Aave could yield up to 12,323 ETH, while an additional 1,845 ETH may be recovered from positions on Compound. In total, these efforts account for approximately 87,955 ETH, i.e, just over half of the original deficit. Despite this progress, a funding gap of roughly 75,081 ETH remains, resulting in a further coordinated capital injection to fully restore backing. Aave DAO Steps In With 25,000 ETH Commitment As Coalition Mobilizes To bridge the remaining deficit, the DeFi United coalition is combining donations, credit facilities, and treasury support. So far, ecosystem contributors including EtherFi, Lido, and Ethena have pledged 14,570 ETH, while Mantle has extended a credit facility of up to 30,000 ETH. Aave DAO’s proposal to contribute 25,000 ETH represents a cornerstone of this recovery stack. Notably, the contribution is “anchored,” meaning it will not be reduced by future donations. Instead, any additional funds raised will be used to repay borrowed capital, thereby limiting Aave’s long-term exposure. The plan requires approximately 120,015 ETH (excluding 43,168 ETH immediately frozen by Kelp DAO) to be reintroduced into the LayerZero lockbox to fully restore system integrity. However, a portion of expected recoveries remains illiquid, prompting the need for short-term loan financing from ecosystem partners.

25 Apr 2026, 08:54

Donald Trump Admin Confirms US Froze $344M in Crypto Tied to Iran

The Trump administration has confirmed that the United States froze $344 million in cryptocurrency tied to Iran, adding a new financial measure to its broader pressure campaign against Tehran. The action focused on USDT held across two wallet addresses and was carried out with help from stablecoin issuer Tether after U.S. authorities shared information about activity they said was linked to unlawful conduct. According to CNN and statements from U.S. officials, the frozen assets were connected to Iran through transactions involving Iranian exchanges and intermediary wallets that allegedly interacted with wallets associated with the Central Bank of Iran. CNN said it had not independently verified that the two Tether addresses were linked to Iran. Even so, the administration presented the move as part of a wider sanctions push as talks over ending the conflict remain unsettled. Treasury Secretary Scott Bessent said the U.S. is sanctioning multiple crypto wallets tied to Iran. In a statement, he said Washington would “follow the money” that Tehran is attempting to move outside the country and would target financial lifelines linked to the regime. The case places stablecoins at the center of a sanctions enforcement effort at a time when digital assets are being watched more closely in cross-border finance. Tether Freeze Adds Stablecoins to Sanctions Enforcement Tether, which recently expanded its BTC treasury, said it froze the $344 million in USDT across two addresses on the TRON network after receiving information from U.S. authorities. The company said the action was taken in coordination with the Office of Foreign Assets Control and law enforcement agencies, preventing any further movement of the funds. Tether also said it can restrict assets when wallets are linked to sanctions evasion, criminal activity, or other unlawful conduct. Chief Executive Paolo Ardoino said USDT is not a safe haven for illicit activity and said the company works with authorities in multiple jurisdictions. Tether stated that it has supported more than 2,300 cases worldwide across 340 agencies in 65 countries. It also said it has frozen more than $4.4 billion in total assets so far, including more than $2.1 billion tied to U.S. law enforcement requests. The latest action shows how public blockchain records can be used in financial investigations. Transactions can be traced through wallet activity, and once addresses are identified, issuers such as Tether can blacklist those funds. That process has become more important as officials and analytics firms continue to examine whether sanctioned actors are using stablecoins and other digital assets to move value across borders. Pressure on Iran Continues as Talks Remain Uncertain The freeze comes during a fragile ceasefire period and amid continued U.S. pressure on Iran. Reports tied the action to the broader standoff around the Strait of Hormuz, where President Donald Trump has said U.S. measures are hurting Tehran financially. Trump has also said the blockade is costing Iran about $500 million per day, though that figure remains part of the administration’s public messaging around the conflict. At the same time, another round of peace talks may take place soon. Reports said special envoys Steve Witkoff and Jared Kushner could travel to Pakistan for talks involving Iranian Foreign Minister Abbas Araghchi. Vice President JD Vance, who took part in the first round, was reported to be on standby rather than expected to attend directly this time. Iran’s frozen funds have also become part of the wider diplomatic discussion. According to the supplied reports, Tehran has sought the release of some blocked assets as a condition tied to any peace arrangement. That leaves the crypto freeze as both a financial enforcement measure and a development taking place during a tense diplomatic window. Source: ChainAnalysis Consequently, the case adds to wider concerns about the role of stablecoins in sanctions evasion and money laundering. Chainalysis said illicit crypto addresses received more than $154 billion in 2025, with stablecoins accounting for a large share of fraudulent transaction volume. Investigators have also been examining crypto activity tied to Iran, with firms such as Chainalysis and TRM Labs estimating that Iran-related flows reached billions of dollars in 2025.