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26 May 2026, 02:32
Japan weighs OpenAI cyber tools as government rethinks AI nationalism
OpenAI, the developer of ChatGPT, wrapped up a sales pitch to Japan, offering the Japanese government and private companies its latest generative AI model specialized in cybersecurity. The company showcased a number of its cyber defense programs to Japanese media on May 21. It’s where OpenAI board member, Paul Nakasone revealed that the visit to Japan was intended for talks with government officials. Nakasone said they discussed cybersecurity measures across 15 critical sectors with the Japanese government. While talks are set to continue, OpenAI said it hopes to launch the service in Japan at “an early stage.” OpenAI is offering the specialized GPT-5.5 Cyber AI model to the Japanese government. Its standard GPT-5.5 with Trusted Access for Cyber (TAC) defensive tool will be offered to Japanese firms and businesses under an application and screening process. Protection against Mythos During the press conference, OpenAI’s Head of National Security Policy, Sasha Baker stressed that a cyber defense ‘ecosystem’ is needed to overcome powerful models. She pointed to Anthropic’s non-public Mythos, which can autonomously identify and exploit security flaws in software, web browsers, and operating systems. Nakasone said powerful AI also requires stronger governance and safeguards. “We will build robust security systems and stay ahead of malicious actors. We intend to expand these efforts broadly from finance and critical infrastructure to local governments and manufacturing supply chains.” Nakasone, who previously led U.S. Cyber Command under the Trump administration, described Japan as central to a “Free and Open Indo-Pacific” and suggested OpenAI would deepen collaboration with the country. “We want the Japanese government and companies to use our most advanced models,” added Sasha Baker. The real threat is AI dependence OpenAI’s visit comes as the Japanese government intensifies its push for “sovereign AI.” Japan’s Basic AI Plan, finalized in December 2025, revolves around the concept of “trustworthy” AI. It stems from economic security concerns that foreign tech giants could control the entire AI supply chain. The Ministry of Economy, Trade and Industry (METI) had proposed developing a large-scale domestic foundation model akin to a Japanese version of ChatGPT using government funding. When METI presented its proposal at an LDP Digital Society Promotion Headquarters meeting in October 2025, some lawmakers criticized the plan as reckless, arguing that Japan lacked the policy resources needed to compete with the U.S. and China. METI has since dropped its ‘Japanese ChatGPT’ goal, but the government is still determined to foster a homegrown AI stack, which includes foundation models, data centers, AI chips, as well as physical AI infrastructure . The government is preparing to revise its Basic AI Plan this summer. At an AI strategy meeting on May 19, lawmaker Kimi Onoda confirmed the revised draft will strengthen AI sovereignty from a national security stance. Japan’s AI reality check While some Japanese companies, such as Preferred Networks, Ricoh, SoftBank, NEC, Honda, and Sony Group, have begun developing foundation models, many in the industry privately acknowledge the difficulty of catching up to the U.S. and China. Japan was ranked 30th out of 69 countries in the IMD World Digital Competitiveness Score in 2025. There’s also a massive AI investment shortfall between Japan and its rivals. According to Japanese government data, the U.S. government invested approx. $329 billion in local AI development from 2019 to 2023. The Chinese government invested approx. $133 billion. The Japanese government, on the other hand, invested a meager $10 billion. The end of AI nationalism The government’s Digital Society Promotion Headquarters is preparing a proposal against an entirely Japanese AI stack. The proposal is urging the government to prioritize AI innovation in manufacturing, healthcare, and infrastructure sectors. It argues Japan could combine foreign-developed foundation models with applications developed by domestic industrial data to create a competitive advantage. On May 11, the Secretary General of the Digital Society Promotion Headquarters, Akihisa Shiozaki, said Japan is entering a post-LLM era that requires a major paradigm shift. He stressed the goal shouldn’t be building sovereign AI but rather diversifying suppliers. “What matters most is ensuring autonomy without becoming dependent on any single country, company, or provider. Rather than focusing solely on ‘sovereign AI,’ Japan needs to think about how to protect its AI sovereignty.” Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
26 May 2026, 01:05
Kelp DAO completes final rsETH recovery phase after $292M hack
BitcoinWorld Kelp DAO completes final rsETH recovery phase after $292M hack Kelp DAO, the liquid restaking protocol that suffered a $292 million security breach earlier this year, announced on Wednesday that it has successfully completed the final stage of its rsETH recovery plan. The project transferred a final batch of 23,737.72 rsETH to its Omnichain Fungible Token (OFT) adapter, marking the end of a structured restoration process that began shortly after the exploit. Recovery timeline and execution In a post on X, Kelp DAO confirmed that it and the Aave protocol had replenished approximately 116,000 rsETH to the OFT adapter over the past two weeks. This final transfer completes the recovery phase, which was designed to restore user funds and re-establish normal operations following the attack that drained a significant portion of the protocol’s assets. The incident, which occurred in early 2025, involved an exploit that targeted Kelp DAO’s cross-chain infrastructure. The project immediately paused operations and worked with security firms and partners to trace and recover funds. The structured recovery plan was announced shortly after, with phased transfers aimed at minimizing disruption to the broader DeFi ecosystem. Operational status and collateralization According to Kelp DAO’s statement, all core functions — including minting, redemption, and rewards distribution — are now operating normally. The project emphasized that rsETH remains fully collateralized, with no remaining exposure from the exploit. This is a significant milestone for the protocol, which had faced intense scrutiny from the DeFi community following the hack. The successful recovery demonstrates the resilience of the project’s infrastructure and the effectiveness of its partnership with Aave, which played a key role in replenishing the affected tokens. Implications for the DeFi ecosystem The Kelp DAO recovery is being closely watched by the broader DeFi industry as a case study in post-exploit remediation. The structured approach — involving phased transfers, transparent communication, and collaboration with lending protocols — could serve as a template for other projects facing similar crises. However, the incident also underscores persistent security vulnerabilities in cross-chain infrastructure. As DeFi protocols continue to expand across multiple blockchains, the attack surface for potential exploits grows correspondingly. Kelp DAO’s ability to fully restore user funds is a positive outcome, but it does not eliminate the underlying need for improved security standards across the industry. Conclusion Kelp DAO’s completion of the rsETH recovery phase marks the end of a challenging chapter for the protocol. With all functions restored and full collateralization confirmed, the project can now focus on rebuilding user trust and strengthening its security posture. For the DeFi ecosystem, the incident serves as both a cautionary tale and a demonstration of what effective crisis management can achieve. FAQs Q1: What was the Kelp DAO hack? A: Kelp DAO suffered a $292 million security exploit in early 2025 that targeted its cross-chain infrastructure. The attack drained a significant portion of the protocol’s rsETH reserves, prompting an immediate pause in operations and the launch of a structured recovery plan. Q2: How much rsETH was recovered? A: Approximately 116,000 rsETH were replenished to the Omnichain Fungible Token (OFT) adapter over a two-week period, with the final batch of 23,737.72 rsETH transferred in the last phase. The project confirms that rsETH is now fully collateralized. Q3: Are Kelp DAO’s operations back to normal? A: Yes. All minting, redemption, and rewards functions are operating normally. The protocol has resumed full operations following the completion of the recovery plan. This post Kelp DAO completes final rsETH recovery phase after $292M hack first appeared on BitcoinWorld .
26 May 2026, 00:40
ESPORTS Token Crash Deepens as Suspected Wallet Dumps Another $1.5 Million
BitcoinWorld ESPORTS Token Crash Deepens as Suspected Wallet Dumps Another $1.5 Million The wallet address widely blamed for triggering a devastating collapse in the ESPORTS token has resumed selling, offloading an additional 35.13 million tokens worth approximately $1.5 million over the past three hours, according to on-chain analytics firm Lookonchain. The ongoing sell-off marks a continuation of the dumping activity that began yesterday evening, when the same address sold 22.73 million ESPORTS for roughly $987,000, causing the token’s price to plummet by more than 90%. On-Chain Evidence Points to Coordinated Dumping Lookonchain, which has been monitoring the wallet’s activity in real time, confirmed that the selling pressure is still active. The firm publicly raised suspicions of a rug pull—a type of exit scam in which developers or insiders drain liquidity—following the abrupt price collapse. The ESPORTS token, which had been trading at relatively stable levels prior to the event, saw its market value evaporate within hours as the wallet executed large sell orders. According to data from CoinMarketCap, ESPORTS is currently trading at $0.04277, representing a staggering 93.85% decline over the past 24 hours. The token’s trading volume has surged amid the sell-off, suggesting that some buyers may be attempting to acquire tokens at deeply discounted prices, though the risk of further dumping remains high. Yuldo Games Responds Amid Growing Investor Concerns Yuldo Games, the company behind the ESPORTS token, issued a statement acknowledging the crash and confirming that it has launched an internal investigation. The firm stated that it is working to determine the cause and full details of the price collapse and will release its findings once the investigation is complete. However, the company has not yet provided a timeline for when those results might be made public, nor has it addressed the specific allegations of a rug pull. The incident has reignited broader concerns about the risks associated with smaller-cap cryptocurrency tokens, particularly those linked to gaming and esports projects. Unlike major cryptocurrencies with established liquidity and regulatory oversight, tokens like ESPORTS often trade on decentralized exchanges with limited safeguards, making them vulnerable to large-scale manipulation by wallet holders with concentrated positions. What This Means for Token Holders and the Market For investors holding ESPORTS tokens, the situation remains highly uncertain. The continued selling from the suspect wallet suggests that further price declines are possible, especially if the address holds additional tokens. The lack of immediate transparency from Yuldo Games may also erode trust in the project, potentially leading to a permanent loss of value even if the investigation ultimately finds no wrongdoing. From a market perspective, this event serves as a cautionary example of the volatility and risks inherent in the cryptocurrency space, particularly for tokens with low liquidity and concentrated ownership. Regulators in various jurisdictions have increasingly warned about the prevalence of rug pulls and market manipulation in the crypto sector, though enforcement actions remain sporadic. Conclusion The ESPORTS token crash, now deepened by another $1.5 million in sales from the same suspect wallet, highlights the vulnerabilities of small-cap cryptocurrency projects. With Yuldo Games still investigating and the selling pressure ongoing, token holders face significant uncertainty. The incident underscores the importance of due diligence and risk awareness for anyone participating in the crypto market, especially in niche sectors like gaming tokens. FAQs Q1: What is a rug pull in cryptocurrency? A rug pull is a type of exit scam where developers or insiders suddenly sell off their holdings, causing the token’s price to crash and leaving other investors with worthless assets. It is often executed by wallets with large token supplies. Q2: Is Yuldo Games cooperating with the investigation? Yuldo Games has stated that it is investigating the crash and will announce its findings upon completion. However, no specific timeline or interim updates have been provided as of now. Q3: What should ESPORTS token holders do? Token holders should monitor official channels from Yuldo Games for updates and exercise caution. Given the ongoing sell-off and high volatility, further price declines are possible. It is advisable to avoid making impulsive trading decisions based on speculation. This post ESPORTS Token Crash Deepens as Suspected Wallet Dumps Another $1.5 Million first appeared on BitcoinWorld .
26 May 2026, 00:07
Aave, Kelp DAO Announce Full rsETH Operations Restoration
On May 25, Aave and Kelp DAO jointly announced the full restoration of rsETH operations after a month of recovery process following the $292 million hack on April 18. The final tranche of 20,373 rsETH was transferred to the rsETH OFT adapter, which helped them to refill the bridge lockbox and restore proper backing. Despite this, some users are still facing issues related to rsETH tokens during bridging, converting, or withdrawing. After over a month of unrest and constant efforts, on Monday, Aave and Kelp DAO jointly announced that they have completely restored rsETH operations after the last trench of tokens was transferred to the LayerZero lockbox. According to the official statement shared in the post on X, Kelp DAO mentioned that the final trench of 20,373.72 rsETH has been sent to the rsETH OFT adapter earlier today. With this, the DeFi platform has claimed that they have fully restored operations. Kelp DAO and Aave Restores rsETH Operation After 39 Days In one month, Aave and Kelp DAO team members have done commendable work to restore operations normally despite the constant criticism from the community for their weak security measures during the cyber attack. However, these efforts were also joined by other DeFi entities who showed their support in Aave’s DeFi United program. On April 18, the Kelp DAO hack incident took place, and attackers managed to steal approximately $292 million worth of rsETH tokens after exploiting a loophole in its LayerZero-based cross-chain bridge. According to the official statement from Kelp DAO, hackers have siphoned off 116,500 rsETH tokens, which were around 18% of the token’s circulating supply. The hack has created serious problems around the decentralized finance sector after the hackers moved the stolen rsETH tokens and used them as collateral on the Aave lending platform. This allowed them to borrow around $192 million worth of Wrapped Ethereum (wETH). This action, done by attackers, has forced many platforms, including Aave, SparkLend, and Fluid, to freeze their markets on a temporary basis to avoid any further damage in this attack. This was an obvious moment where DeFi users started panicking and started rushing to withdraw their money from the DeFi sector. In just a few hours, more than $13 billion was wiped out from the sector. After this attack, Wrapped Ethereum stuck around more than 20 different blockchains. Not just this, this attack has created bad debt in the DeFi sector. In retaliation for this cyber attack, the Arbitrum Security Council managed to freeze around $71 million worth of Ethereum tokens that were linked to the hacker on the Arbitrum One network. This was the first major victory in the recovery of stolen funds. After this attack, Kelp DAO, Aave, and a group of DeFi entities have announced a new initiative called DeFi United. This program has included a plan to raise recovery funds through Aave’s Recovery Guardian and Kelp’s own safe. Apart from this, Aave and Kelp DAO have also burned the exploiter’s compromised rsETH tokens on Arbitrum, which were around 117,132. After this, they have started gathering ETH to refill the bridge’s lockbox and restore the proper backing for rsETH. Some Users Still Facing Issues with hgETH Tokens While Aave and KelpDAO have fully restored the operations for rsETH tokens, some users on X are still raising questions about issues with hgETH tokens. It is the liquid token issued by Kelp DAO’s High Growth Vault. According to some users on social media platforms, many hgETH token holders are facing problems with various operations like bridging, converting, or withdrawing their tokens even after the rsETH’s fill operation was announced. These hgETH token holders are asking for a specific timeline regarding full hgETH operational restoration. As of now, Kelp DAO has not announced any major update related to this matter. In the last few days, the team has announced the reopening of certain vaults, like agETH. Due to a lack of communication, various rumors are floating around the incident, and the Kelp DAO team needs to give clarification on it. Also Read: Ethereum Stablecoin Marketcap Surges Over $163 Billion
25 May 2026, 17:34
Base and ETH exploit drains $3.2 million from 86 wallets
🚨 $3.2 million was stolen from 86 Gnosis Safe wallets in a Base and $ETH exploit. Hackers used a vulnerability in the third-party SquidRouterModule to bypass security in two hours. 🔑 Critical data: The official Squid protocol and wallets with proper authorization remain safe. Continue Reading: Base and ETH exploit drains $3.2 million from 86 wallets The post Base and ETH exploit drains $3.2 million from 86 wallets appeared first on COINTURK NEWS .
25 May 2026, 17:15
AI Agents Settle $73 Million in On-Chain Payments, Signaling Rise of Machine Economy
BitcoinWorld AI Agents Settle $73 Million in On-Chain Payments, Signaling Rise of Machine Economy A new report from crypto market maker Keyrock reveals that autonomous AI agents have settled over $73 million through 176 million on-chain transactions over the past year, with a staggering 98.6% of those payments conducted in the USDC stablecoin. The data, covering May 2025 through April 2026, paints a clear picture of a rapidly emerging machine-to-machine micro-payment economy. The Rise of Machine-Centric Micro-Payments According to Keyrock’s findings, the average payment per transaction by these AI agents ranged between $0.31 and $0.48. This low-value, high-volume activity suggests that automated systems are increasingly handling routine, small-scale financial tasks—such as paying for API calls, data access, or cloud compute resources—without human intervention. The reliance on USDC, a regulated stablecoin, underscores the need for a stable, low-cost settlement layer for these autonomous operations. Infrastructure and Regulatory Hurdles While stablecoins like USDC are becoming essential infrastructure for this machine economy, the report highlights significant concerns. The dependence on the regulatory status and financial stability of the stablecoin issuers themselves remains a vulnerability. Furthermore, Keyrock noted that comprehensive regulatory frameworks from national authorities for machine-led transactions are still underdeveloped. This regulatory gap could pose risks for widespread adoption and long-term reliability of automated payment systems. Why This Matters for the Broader Crypto Ecosystem The emergence of AI agents as active economic participants is not just a niche trend. It represents a fundamental shift in how value moves on the internet. For the crypto industry, this validates the original vision of programmable money and smart contracts. For businesses, it signals the need to prepare for a future where a significant portion of transactions are initiated and settled by algorithms. The data suggests that the ‘machine economy’ is no longer theoretical—it is already transacting at scale. Conclusion Keyrock’s report provides concrete evidence that AI agents are becoming significant drivers of on-chain activity, primarily through stablecoins like USDC. While the infrastructure is proving capable, the industry must address the regulatory and issuer-related risks to ensure the stability and trustworthiness of this emerging machine-centric financial system. The $73 million figure is likely just the beginning. FAQs Q1: What exactly are AI agents doing with these payments? AI agents are primarily paying for automated services such as data feeds, API access, cloud computing resources, and other digital utilities required for their operation, all without human approval. Q2: Why is USDC the dominant payment method? USDC is a regulated, stable-value token pegged to the US dollar. Its low transaction fees, speed, and relative stability make it ideal for the high-volume, low-value micro-transactions that AI agents typically perform. Q3: What are the main risks of this machine economy? The primary risks include over-reliance on the solvency and regulatory compliance of stablecoin issuers, as well as a lack of clear legal frameworks governing autonomous financial transactions, which could lead to disputes or systemic vulnerabilities. This post AI Agents Settle $73 Million in On-Chain Payments, Signaling Rise of Machine Economy first appeared on BitcoinWorld .
