KelpDAO has filed a lawsuit in British Columbia against LayerZero and its CEO Bryan Pellegrino, seeking accountability for an April exploit that drained approximately $292 million in rsETH from Kelp's cross-chain bridge — the largest hack of 2026 so far.
KelpDAO alleges LayerZero failed to disclose known weaknesses in its protocol and claims the company had endorsed Kelp's bridge setup prior to the attack. Pellegrino has publicly dismissed the lawsuit as meritless. The case escalates a dispute that had previously played out through public statements and technical reports before moving to formal litigation.
New York Attorney General Letitia James has sued Polymarket US, alleging the prediction market platform operated without a state gambling license and allowed users under 21 to place bets.
Filed September 24 in Manhattan, the lawsuit asks a court to ban Polymarket from New York, award three times its gains, and impose $100,000 in penalties for each sports contract it offered. The action follows a similar lawsuit against rival prediction market Kalshi in July. New York has now brought illegal gambling charges against four prediction market businesses in total.
The suit is backed by Governor Kathy Hochul and reflects a broader conflict between state regulators and federal oversight — Polymarket holds a CFTC designation as a designated contract market.
🔐 Coinbase Impersonator Sentenced for $15.9M Crypto Theft
Ronald Spektor, 23, has been sentenced to four to 12 years in prison in New York after pleading guilty to all 31 counts in a scheme that defrauded approximately 100 Coinbase users out of nearly $15.944 million.
Spektor impersonated Coinbase support staff, convincing victims that hackers were targeting their accounts and manipulating them into surrendering access to their crypto holdings. Prosecutors said the scheme affected roughly 100 users before Spektor was apprehended.
The case highlights the continued threat of social engineering attacks targeting crypto exchange customers, where fraudsters exploit brand trust to gain access to user funds.
🪙 UK Banks Complete First Interbank Tokenized Deposit Transactions
Lloyds, NatWest, Barclays and HSBC have completed what UK Finance describes as the world's first interbank transactions using tokenized deposits, marking a significant milestone in blockchain-based commercial bank money.
The tests, coordinated by UK Finance, involved real-world use cases including mortgage payments and person-to-person transfers. The transactions used blockchain-based tokenized deposits — digital representations of commercial bank money — rather than traditional payment rails.
UK Finance indicated the move could pave the way for faster bank payments, broader use of digital money, and tokenized bond settlement, signaling growing institutional momentum behind tokenization of traditional financial instruments in the UK.
🪙 NYSE and Blockchain.com sign MOU on tokenized stocks
NYSE Group and Blockchain.com signed a memorandum of understanding on September 23 to explore giving Blockchain.com's users access to tokenized U.S. stocks and ETFs through NYSE's planned 24/7 digital trading venue.
The deal would route tokenized equities and ETFs to Blockchain.com's 44 million confirmed accounts via NYSE's forthcoming digital alternative trading system (ATS). The agreement is preliminary and subject to regulatory approval — the NYSE digital market it depends on has not yet launched. The MOU arrives days after federal regulators opened a new legal pathway for tokenized securities trading.
The move reflects accelerating Wall Street interest in bringing traditional securities on-chain, with NYSE joining a growing list of institutions exploring tokenization as a route to continuous, borderless market access.
🟠 Bitcoin climbs to $86,000 as ETF demand and macro tailwinds build
Bitcoin reached $86,000 as crypto majors extended their rally, with select altcoins posting new all-time highs. ETF inflows and sliding oil prices are cited as contributing factors to the move.
Falling oil prices have eased inflation concerns, supporting risk assets broadly, while continued ETF bidding signals sustained institutional participation in the market.
💵 Visa and Reap Launch Stablecoin Credit Cards in 100+ Markets
Visa and fintech firm Reap have announced a partnership to roll out stablecoin-linked credit cards across more than 100 markets globally.
The program builds on Reap's existing Visa card issuance infrastructure, expanding it to enable businesses to fund everyday spending using stablecoins. The collaboration targets regions where stablecoin-linked payment products have had limited reach.
The move marks another step in the integration of stablecoins into mainstream payment rails, with Visa continuing to position itself as a bridge between traditional financial infrastructure and digital asset ecosystems.