AFX Trade has lost approximately $24.15 million in USDC after attackers compromised the bridge’s validator signing keys.
The hackers obtained enough validator signatures to approve a fraudulent withdrawal, then bridged the funds to Ethereum and swapped them for roughly 12,467 ETH.
Importantly, this was not a flaw in Arbitrum or the bridge’s smart contracts. The exploit stemmed from compromised off-chain validator keys used to authorize withdrawals.
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U.S. authorities have arrested Elaine Angene Escoe, an alleged organizer of a scheme that fraudulently obtained more than $32 million in taxpayer-funded COVID-19 relief funds.
After failing to appear in federal court in 2025, Escoe allegedly fled to Jamaica and assumed the identity “Harley Newman” in an attempt to avoid capture.
Following a coordinated international operation involving U.S. and Jamaican authorities, she has been returned to the United States to face multiple federal fraud and money laundering charges.
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Crypto exchange BitMart has confirmed it will wind down its trading platform following a strategic review of its business and market conditions.
Beginning today, the exchange is gradually suspending new registrations and deposits, while all trading services will officially end on August 26, 2026. Users have been advised to close open positions and withdraw their assets as soon as possible.
BitMart says withdrawal services will remain available during the wind-down period, with the platform expected to fully shut down on January 31, 2027.
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An attacker compromised the WEMIX$ smart contract, gaining control of privileged functions and minting 5,225,525 WEMIX$ without authorization.
Around 724K USDC.e and 30,736 WEMIX were moved across Ethereum and BNB Chain, with part of the funds swapped into ETH and USDT before reaching centralized exchanges.
WEMIX has suspended bridges, liquidity pools, and related services while working with exchanges to freeze the stolen assets. An investigation is ongoing.
Attacker
Tx
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A crypto wallet provider reportedly lost approximately $12 million after an attacker successfully convinced an employee to disclose the recovery seed phrase for the company’s treasury wallet.
The event serves as another reminder that operational security and employee awareness remain among the biggest risks in the crypto industry.
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Blockaid’s latest research found that social engineering accounted for approximately 74% of total losses, highlighting a significant shift away from smart contract exploits toward attacks involving compromised credentials, phishing campaigns, and stolen private keys.
The findings suggest that user security and operational security have become the industry’s largest attack surface.
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According to Russia’s Federal Security Service (FSB), Telegram allegedly failed to remove channels, chats, and bots used by Ukrainian intelligence and extremist groups to coordinate sabotage, terrorist attacks, and cybercrime inside Russia.
Telegram has not yet responded to the allegations.
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The attacker exploited the token’s privileged recycle() function, manipulated pool reserves using a $237M flash loan, and drained liquidity from the PancakeSwap pair.
Another reminder that privileged smart contract functions can become critical attack vectors.
Exploit TX
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Scammers are mailing fake IRS letters that instruct victims to enroll in a non-existent “Digital Asset Compliance Portal.”
The fraudulent website is designed to collect victims’ phone numbers before scammers follow up with calls posing as IRS or Coinbase representatives in an attempt to steal cryptocurrency.
Coinbase urges users to ignore the letters, avoid scanning any QR codes, and never share wallet recovery phrases or transfer funds at someone else’s request.
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Coinkite has disclosed a serious vulnerability affecting COLDCARD Mk3 hardware wallets that generated recovery seeds using firmware versions 4.0.1 through 4.1.9.
According to the company, a flaw in the device’s entropy generation significantly reduced the randomness used when creating seed phrases, making certain private keys potentially predictable through brute force.
The disclosure follows reports that attackers drained approximately 594 BTC (around $38 million) from roughly 500 wallets linked to the vulnerable devices.
Users who created their seed on an affected Mk3 are strongly advised to generate a brand-new wallet and transfer all funds immediately. Mk4, Mk5 and COLDCARD Q devices do not appear to be impacted.
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Blockchain analysts at Arkham Intelligence and Lookonchain flagged the transaction, though the destination and purpose remain unknown. Security researchers believe the movement could mark the beginning of another laundering cycle involving previously stolen cryptocurrency.
Lazarus has stolen more than $6 billion in digital assets since 2017 and remains one of the world's most active state-backed cybercrime groups.
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Prosecutors also claim he laundered $750K in suspected drug money through his crypto exchange.
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To date, only three alleged cybercriminals have been publicly identified as arrested:
• Merry – Alleged SIM swapper
• Peter Stokes – Alleged Scattered Spider member extradited from Finland to face U.S. conspiracy, fraud, and computer intrusion charges.
• Brandon Hiser – Known online as “ComKid Unknown Net.”
Peter Stokes is accused of participating in Scattered Spider, a group the DOJ says has been responsible for more than 100 network intrusions and over $100 million in ransomware payments.
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Whales were reportedly targeted first before the attack spread to hundreds of additional victims.
The claims remain unconfirmed pending official statements and independent verification.
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Two French crypto holders were kidnapped in London, tortured for 52 hours, and forced to hand over cryptocurrency after attackers demanded $150K.
Police say the operation was coordinated remotely by an overseas mastermind using WhatsApp.
Six kidnappers have been convicted, but the suspected organizer remains at large, underscoring the increasing sophistication of organized crypto-targeting gangs.
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The suspect was reportedly exposed after speaking about the theft to coworkers. The allegations have not yet been officially confirmed by the FBI or the U.S. Department of Justice.
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A 4th wave has stolen another 390 BTC, pushing total losses to 1,432 BTC ($90M+) across 5,200 victims.
Users are urged to migrate funds immediately if they generated wallets using affected firmware.
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The app is currently unavailable for iPhone users. The reason behind its removal remains unknown.
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Release News
After being contacted by @Telelakel, an Apple Support representative said Telegram is still listed in Apple's internal systems and isn't flagged as removed, suggesting the app may have been temporarily hidden by the developer rather than taken down by Apple.
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Release News
Looks like it was only temporarily hidden, not removed by Apple after all.
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