A Liquid Network exploit, dormant Satoshi-era coins, and a stablecoin custody collapse in Chile
The day's central story was a bug in Blockstream's federated sidechain: attackers pegged out roughly 4,000 BTC, returned 3,400 after calling themselves white hats, and kept about 598.5 BTC, halting Liquid Network operations while raising unresolved questions about theft versus bounty. Separately, seven Bitcoin wallets dormant since 2010 moved 350 BTC worth about $28 million, and Tether-backed Chilean exchange Orionx said it would close after an audit found a $7 million custody shortfall. Vitalik Buterin outlined a research-stage proposal for Ethereum transaction formats, and New Jersey asked the Supreme Court to settle whether Kalshi's sports prediction contracts are gambling or federally regulated swaps. Elsewhere, earlier stories on the CLARITY Act's Senate odds, Ripple's institutional ties, Robinhood Chain's DEX volume, Solana's RWA flows, a Bank of Korea stablecoin study, and Zcash's ETF-driven rally all picked up new reporting.
The day's stories
Blockstream's Liquid Network suffered its most consequential incident of the day: a bug in the Elements software let attackers peg out about 4,000 BTC. Those calling themselves white hats returned 3,400 BTC but kept roughly 598.5 BTC, and the desk notes a verified disagreement in reporting on the episode. The exploit halted Liquid Network operations and LBTC deposits and withdrawals across exchanges, and it leaves open whether retaining the unreturned coins amounts to theft or a security bounty. On the same day, seven wallets dormant since Bitcoin's earliest months in 2010 moved a combined 350 BTC, worth about $28 million, reviving speculation about early miners though the desk flags the story as disputed with no confirmed selling. Separately, Tether-backed Chilean exchange Orionx said it will shut down after a forensic audit found more than $7 million in customer assets moved outside its custody, a case that touches both regional exchange oversight and due diligence by stablecoin issuers investing as backers. Also on the 6th, Vitalik Buterin described a research-phase proposal to separate transaction actions from dependencies for parallel validation, with no deployment timeline, and New Jersey petitioned the Supreme Court to decide whether Kalshi's sports prediction contracts are gambling or swaps regulated federally.
Blockstream's Liquid Network Loses ~4,000 BTC to Elements Bug, White Hats Return 3,400 BTC
Attackers exploited a software bug in Blockstream's Liquid Network to peg out roughly 4,000 BTC, returned 3,400 BTC after claiming to be white hats, and kept about 598.5 BTC.
Buterin Teases Major Advances in Ethereum Transaction Formats
Vitalik Buterin outlined a proposal to separate transaction actions from dependencies to enable parallel validation and scaling.
Seven Satoshi-Era Bitcoin Wallets Activate After 16.5 Years of Dormancy
Seven Bitcoin wallets dormant since 2010 simultaneously moved 350 BTC worth roughly $28 million, reigniting speculation about early miners.
Tether-backed Orionx to permanently close after audit reveals $7M custody shortfall
Chilean crypto exchange Orionx is shutting down after a forensic audit uncovered more than $7 million in customer assets moved to wallets outside its custody.
New Jersey Asks Supreme Court to Hear Kalshi Prediction Market Case
New Jersey petitioned the U.S. Supreme Court to decide whether prediction market sports contracts are gambling or federally regulated swaps.
Developing from earlier
Ahead of a September 15 Senate cloture vote, Republican senators warned the CLARITY Act may fail amid ethics disputes and scheduling constraints; Polymarket's odds for 2026 passage have fallen from 82% in February to about 16%, and Galaxy Digital cut its estimate to 10%. The Bank for International Settlements tested the XRP Ledger for verifying official statistics, while Ripple separately struck a branding deal with the University of Florida and 21Shares pushed back on claims that XRP is centralized. Robinhood Chain hit a record $3.7 billion in 24-hour DEX volume on September 5, and an Arbitrum co-founder and Solana's co-founder disputed whether Robinhood's revenue-sharing model or application-level monetization better serves blockchain infrastructure providers. Solana led all tracked networks with $348 million in net real-world-asset flows over a 30-day period, data that the desk marks as disputed.
CLARITY Act Faces Fading Bipartisan Support Ahead of September 15 Senate Cloture Vote
Republican senators warn the CLARITY Act may fail a Sept. 15 procedural vote as ethics disputes, scheduling constraints, and eroding bipartisan support threaten passage before midterm elections.
BIS Tests XRPL for Data Verification as Ripple Expands Institutional Partnerships
The Bank for International Settlements tested the XRP Ledger for verifying official statistics, while Ripple struck a branding deal with the University of Florida.
Robinhood Chain Hits Record $3.7 Billion in 24-Hour DEX Volume as Arbitrum Revenue Sharing Draws Debate
Robinhood Chain set a new all-time high of $3.7 billion in 24-hour DEX volume on September 5, while an Arbitrum co-founder and Solana co-founder clashed over the merits of Robinhood's revenue-sharing model.
Solana Leads RWA Net Flows With $348 Million in 30-Day Period
Solana attracted $348 million in net real-world asset flows over a 30-day period, leading all tracked blockchain networks.
Where the reports disagree
A Bank of Korea study found that when Binance introduced direct fiat-to-stablecoin trading pairs, local currency premiums fell and dollar stablecoin demand transmitted into foreign exchange markets, though the desk logged a verified disagreement in how this was reported. Zcash broke above $1,000 on September 4 for the first time since 2018, a roughly 20% move in 24 hours and near 100% over a month, while Grayscale's ZCSH spot ETF grew past $400 million in assets within two weeks of launch; the desk flags this story as disputed, with two verified disagreements over the reported figures.
Bank of Korea study finds dollar stablecoin demand can push local currencies lower
A Bank of Korea study found that when Binance introduced direct fiat-to-stablecoin pairs, local currency premiums fell and demand transmitted into foreign exchange markets.
Zcash Breaks $1,000 for First Time Since 2018 as Grayscale ETF Surges Past $400 Million
Zcash surged above $1,000 on Sept. 4, its first breach of that level since 2018, while Grayscale's ZCSH spot ETF grew past $400 million in assets within two weeks of launch.
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