Daily Brief: Initia Halts Network After $2.7M MoveVM Bridge Exploit

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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.

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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.

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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.

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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.

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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.

The numbers

Bitcoin ($BTC) trades at $80,551 (down 1.2%), Ether ($ETH) at $2,367, and the total market cap sits at $2.67 trillion.

What to watch

• Initia's official post-mortem report and validator coordination on a network restart patch.
• The formal launch of the revised IRS voluntary disclosure guidelines expected before December.
• Federal regulatory responses from the FTC regarding online prediction market promotions.

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