hodler

20 Jan 2026, 05:00

Solana metrics turn bullish – But is cooling volume a red flag?

The extended volume cooling phase in recent weeks was more similar to 2022 than 2024-25.

20 Jan 2026, 04:59

UK lawmakers want financial regulators to run stress tests on artificial intelligence to spot risks early.

A cross-party group of UK lawmakers is pressing regulators to adopt AI-focused stress tests for the financial sector, warning that rising use of artificial intelligence could expose consumers and markets to serious disruption if left unmanaged. In a report published on Tuesday, the Treasury Select Committee criticized the Financial Conduct Authority (FCA) and the Bank of England for what MPs described as a cautious “wait-and-see” regulatory stance toward artificial intelligence, despite its widespread adoption across the City of London. Officials have stated that rapidly evolving technology demands quicker responses from oversight bodies, such as the introduction of stress tests. As finance companies increasingly rely on artificial intelligence, delays might cost stability. When machines handle trades, loan approvals, or risk forecasting, flaws can ripple across multiple platforms without warning. If several systems stumble together, turmoil may erupt before anyone reacts. Lawmakers say AI could upset financial markets. Warnings are emerging over gaps in oversight as artificial intelligence moves quickly through Britain’s finance sector. Some officials suggest that insufficient attention is given to what might happen if systems grow too far ahead of oversight. Parliament’s Treasury Select Committee points to delays by the Bank of England, the Financial Conduct Authority, and the Treasury in managing risk. The pace set by private companies using advanced tools outstrips current rule-making efforts. Waiting too long might mean trouble hits before anyone can respond. The committee points out that officials are holding back, hoping issues won’t arise. When systems fail, there may be almost no room to fix things fast enough. Instead of stepping in later, watching how artificial intelligence acts during tough moments makes more sense. Officials believe preparation beats scrambling when everything is already falling apart. Firms across the UK’s finance sector increasingly rely on artificial intelligence every day, often without stress testing how systems perform under pressure. Over 75% of British financial institutions use AI across central functions, so its influence on economic choices is, if anything, unseen. Decisions about investments are made using machine logic rather than human instinct. Automation guides approvals, while algorithms judge borrowing eligibility without traditional review. Claims in insurance move forward not on clerks’ evaluations but on coded evaluations. Even basic paperwork is handled digitally rather than manually. Speed defines these processes; yet rapidity increases exposure when flaws emerge. A single misstep may echo widely because connections between organisations are tight. Jonathan Hall, an external member of the Bank of England’s Financial Policy Committee, told lawmakers that tailored stress tests for artificial intelligence could help oversight bodies detect emerging risks earlier. Stress scenarios simulating severe market disruptions, he explained, might expose vulnerabilities in AI frameworks before broader impacts on systemic resilience occur. MPs urge regulators to test AI risks and set clear rules MPs’ insistence on firmer steps to prevent artificial intelligence from quietly undermining economic stability, beginning with stress assessments, seems logical for oversight bodies. Financial supervisors face growing pressure from legislators to adopt tailored evaluations focused on AI, mirroring those used for banks amid downturns. Under strain, automated tools may act unpredictably; watchdogs need proof, not assumptions. Only through such trials can authorities see exactly how algorithms might spark disruption or amplify turmoil once markets shift. Stress tests might mimic what happens if artificial intelligence disrupts markets unexpectedly. When algorithms behave oddly or stop working, oversight bodies can observe bank reactions under pressure. Preparing ahead reveals vulnerabilities, not just in trading platforms but also in risk assessments and safeguards within institutions. Fixing issues sooner appears wiser than responding after chaos spreads rapidly through financial channels. Identifying trouble beforehand will allow both supervisors and companies to adjust course while there’s still time. Besides stress testing, members of parliament emphasize the need for clear guidelines governing the routine use of artificial intelligence within financial institutions. The Financial Conduct Authority is urged to set clear boundaries for ethical AI applications in real-world settings. Guidance must clarify how current consumer protections apply when automated systems make decisions rather than humans, preventing accountability gaps during failures. Responsibility assignment should be explicit if AI performs incorrectly, making it impossible for companies to deflect fault onto machines. Should something go wrong with just one main tech platform, lots of banks could stumble together. A handful of companies now hold big responsibility for keeping banking systems running across the country. When services hosted by names like Amazon Web Services or Google Cloud run into trouble, ripple effects hit fast. Lawmakers point out how fragile things get when so many rely on so few. The bigger the dependency grows, the harder it hits everyone if a glitch slips through. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.

20 Jan 2026, 04:59

Ethereum activity surge could be linked to dusting attacks: Researcher

A security researcher claims Ethereum’s recent network surge could be linked to address poisoning attacks that are exploiting low gas fees on Ethereum.

20 Jan 2026, 04:55

DeFi Protocol MakinaFi Suffers Devastating $4.1M Ethereum Hack, Funds Drained

BitcoinWorld DeFi Protocol MakinaFi Suffers Devastating $4.1M Ethereum Hack, Funds Drained In a stark reminder of the persistent security challenges facing decentralized finance, the DeFi protocol MakinaFi was exploited on March 21, 2025, resulting in a devastating loss of 1,299 ETH, valued at approximately $4.13 million. Blockchain security firm PeckShield first flagged the critical incident, noting the swift movement of stolen funds to new addresses. This event immediately reverberated through the cryptocurrency community, raising urgent questions about smart contract auditing and asset protection. Consequently, investors and developers are now scrutinizing the underlying mechanisms that failed. DeFi Protocol MakinaFi Hack: A Detailed Breakdown The MakinaFi exploit represents a significant financial blow and a procedural failure. According to the initial alert from PeckShield, the attack resulted in the direct theft of 1,299 Ethereum. The blockchain analytics team tracked the stolen cryptocurrency to two freshly created wallet addresses. Typically, hackers use such addresses to obscure the trail of digital assets. Furthermore, the timing of the hack coincided with moderate network activity, suggesting a calculated strike rather than an opportunistic one. The protocol’s native token experienced immediate downward price pressure following the news. To understand the scale, consider this comparison with recent incidents: Protocol Date Amount Lost Primary Cause MakinaFi March 2025 $4.13M (ETH) Under Investigation Compound (2023) October 2023 $20M (Various) Price Oracle Exploit Euler Finance (2023) March 2023 $197M Flash Loan Attack This table contextualizes the MakinaFi incident within a broader landscape of DeFi vulnerabilities. While smaller in scale than historical mega-hacks, the loss critically impacts MakinaFi’s user base and trust. The team has since suspended all contract interactions to prevent further drainage. They are currently conducting a comprehensive post-mortem analysis. Understanding the Broader Ethereum Security Landscape The MakinaFi hack did not occur in a vacuum. Instead, it highlights systemic risks inherent in complex, permissionless financial systems. The total value locked (TVL) in DeFi protocols often attracts malicious actors seeking lucrative targets. Smart contracts, while autonomous and transparent, are only as secure as their code. A single flaw in logic or an unforeseen interaction can be catastrophic. Therefore, the industry relies heavily on rigorous auditing firms and bug bounty programs. Common attack vectors in DeFi include: Flash Loan Attacks: Utilizing uncollateralized loans to manipulate market prices. Reentrancy Attacks: Exploiting functions that call external contracts before updating state. Oracle Manipulation: Feeding false price data to a protocol to trigger unjustified liquidations or trades. Governance Exploits: Taking control of a protocol’s decision-making mechanism. At this early stage, the exact vector for the MakinaFi exploit remains unconfirmed by the development team. However, blockchain sleuths are analyzing the transaction history. The movement patterns of the stolen ETH may offer clues. This forensic process is standard after a major security breach. Expert Analysis on Protocol Resilience and Response Industry experts emphasize that response time and transparency are critical following an exploit. “The first 24 hours are crucial for damage control and preserving community trust,” notes Dr. Alina Vance, a blockchain security researcher at the Cambridge Centre for Alternative Finance. “A clear communication channel, a detailed timeline of events, and a roadmap for reimbursement or recovery are non-negotiable for any serious project.” Her research indicates that protocols with established emergency response plans suffer less long-term reputational harm. Moreover, the incident underscores the importance of layered security. Relying solely on one audit before launch is increasingly seen as insufficient. Many leading protocols now employ a strategy of continuous auditing, formal verification, and decentralized white-hat monitoring. Insurance protocols like Nexus Mutual also provide a financial backstop for users, though coverage has specific limits and terms. The MakinaFi team’s next steps will be closely watched as a case study in crisis management. The Tangible Impact on Users and Market Sentiment For users of the MakinaFi platform, the hack translates to direct financial loss and eroded confidence. Those who provided liquidity or engaged with the protocol’s services may face a total loss of funds, depending on the team’s recovery plans and any existing insurance. Historically, some exploited protocols have managed to negotiate with hackers for a return of most funds, offering a “bounty” for the vulnerability’s disclosure. However, this outcome is never guaranteed. Market sentiment across the broader DeFi sector often dips following high-profile hacks. Investors may temporarily withdraw funds from smaller or newer protocols, seeking safety in more established, battle-tested platforms. This “flight to quality” can pressure token prices and TVL across the board. Nevertheless, the long-term trend has been one of iterative improvement, with each major incident leading to stronger security standards and more robust tooling for developers and users alike. Conclusion The devastating $4.1 million DeFi protocol MakinaFi hack serves as another critical stress test for the Ethereum ecosystem. It reinforces the immutable truth that security must be the paramount priority in decentralized finance. While the innovative potential of DeFi is immense, its adoption depends on building systems that can withstand sophisticated attacks. The response from the MakinaFi team, the security community’s analysis, and any subsequent recovery efforts will provide valuable lessons. Ultimately, the relentless pursuit of more secure smart contract design and proactive defense mechanisms remains the only path forward for the industry. FAQs Q1: What is MakinaFi and what happened? MakinaFi is a decentralized finance (DeFi) protocol operating on the Ethereum blockchain. On March 21, 2025, it was exploited by a hacker who drained 1,299 ETH (worth about $4.13 million) from its smart contracts. Q2: How did the hacker steal the funds? The exact technical method is still under investigation by the MakinaFi team and security analysts. Common methods include exploiting a flaw in the smart contract code, such as a reentrancy bug or an oracle manipulation. Q3: Can the stolen Ethereum be recovered? Recovery is difficult but not impossible. Sometimes teams negotiate with hackers, offering a bounty for the return of funds. Alternatively, law enforcement may become involved if the perpetrators can be identified. However, users should prepare for the possibility of a total loss. Q4: What should users of MakinaFi do now? Users should immediately follow official communications from the MakinaFi team via their verified channels (e.g., Twitter, Discord, blog). They should not approve any new transactions related to the protocol and should revoke any existing token approvals to the compromised contracts using tools like Etherscan’s Token Approvals checker. Q5: Does this hack mean DeFi is unsafe? DeFi carries inherent risks, including smart contract risk, as demonstrated by this hack. However, the space is evolving rapidly with better auditing practices, insurance options, and security tools. It is crucial for users to understand these risks, conduct due diligence, and never invest more than they can afford to lose. This post DeFi Protocol MakinaFi Suffers Devastating $4.1M Ethereum Hack, Funds Drained first appeared on BitcoinWorld .

20 Jan 2026, 04:53

Bitcoin Fluctuates Near $92,000 After Trade War Tensions Roil Market Sentiment

Bitcoin prices traded close to $92,000 on January 19, after the digital currency declined in response to concerns about tariffs involving the U.S. and European Union.

20 Jan 2026, 04:46

[LIVE] Crypto News Today: Latest Updates for Jan. 20, 2026 – Bitcoin Holds Near $92K as Polymarket Odds of $100K Slide to 21%

Bitcoin hovered near the $92,000 mark on Tuesday, stabilizing after Monday’s sharp sell-off as traders remained cautious amid broader macro uncertainty. At the time of writing, Bitcoin was trading at $92,360, down 0.4% over the past 24 hours, while Ether slipped 0.8% to $3,183. XRP bucked the trend slightly, rising 0.2% to $1.96. Sector-wise, AI-related tokens led losses, dropping more than 3.5% in the last 24 hours, while the real-world assets (RWA) sector declined over 1%, according to CoinGecko data. Sentiment on Polymarket also weakened, with the probability of Bitcoin reaching $100,000 in January falling to 21%. Bets for $105,000 stood at just 7%, while odds of a drop to $85,000 and $80,000 rose to 18% and 6%, respectively. But what else is happening in crypto news today? Follow our up-to-date live coverage below. The post [LIVE] Crypto News Today: Latest Updates for Jan. 20, 2026 – Bitcoin Holds Near $92K as Polymarket Odds of $100K Slide to 21% appeared first on Cryptonews .