☕️ Initia Halts Network After $2.7M MoveVM Bridge Exploit Initia paused its Layer 1 following a $2.7 million MoveVM bridge exploit, while the SEC highlighted asset tokenization as a high-risk focus for clearing agencies in 2027.
1. Initia Halts Network Following $2.7M Cross-Chain MoveVM Exploit — Initia paused its Layer 1 and rollups on Oct. 23 after an attacker exploited a MoveVM bug to mint unbacked tokens and bridge $2.7 million in real collateral to Ethereum. The chain remains offline without a restart timeline. 2. SEC Adds Tokenization as High-Risk Focus for 2027 Examinations — The SEC Division of Examinations named asset tokenization a core vulnerability for clearing agencies and market infrastructure in its fiscal 2027 priorities. The Oct. 23 report omits the terms crypto and blockchain. 3. Phantom Wallet Rolls Out CFTC-Regulated Prediction Markets via Kalshi — Phantom began integrating CFTC-registered exchange Kalshi to offer prediction market trading directly within its self-custody wallet for US users, utilizing industry-wide introducing broker no-action relief. 4. Bitcoin Core Modifies Security Policy for LLM-Discovered Bugs — Bitcoin Core maintainers will expedite patches and backport fixes to all active releases for vulnerabilities easily surfaced by large language models, departing from previous major-release-only fix schedules. 5. Polymarket CMO Paid $2.5M to Social Media Influencers via Personal PayPal — Polymarket CMO Matthew Modabber allegedly transferred over $2.5 million from his personal PayPal to over 800 individuals between January 2025 and February 2026. At least 20 paid influencers failed to disclose the financial relationships on X.
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