Bitget says $351.6 million was involved in a security incident
Bitget CEO Gracy Chen said the exchange discovered unauthorized transfers from some hot wallets and warm wallets on Sept. 25, with an estimated $351.6 million involved. According to Chen, Bitget’s cold wallets and Bitget Wallet were not affected, user balances remain intact, and losses will be covered by the platform’s user protection fund.
Bitget’s security team said its preliminary assessment points to a compromise of a critical backend system tied to wallet services. The attacker allegedly forged transfer information and used the authorized signing process to move funds out. The company said it has preliminarily ruled out a private key leak, completed loss containment, and temporarily suspended withdrawals.
Bitget is investigating the incident with Mandiant and SlowMist. Bybit and Binance also said they are helping track and recover the stolen funds. Specter said some on-chain fund links suggest the attack may be connected to Lazarus Group, though Bitget has not confirmed the attacker’s identity.
New York files suit against Polymarket
New York state authorities on Thursday local time formally sued crypto prediction market platform Polymarket, accusing it of running an “illegal gambling operation” in the state.
Earlier, New York Attorney General Letitia James and related agencies had already taken a series of legal actions against institutions involved in prediction market businesses, including Kalshi, Coinbase, and Gemini. Those actions alleged that such platforms offered event-based betting without obtaining a license from the state Gaming Commission.
Federal Reserve issues two proposed rules under the GENIUS Act framework
The Federal Reserve released two proposed rules for public comment to implement the GENIUS Act and establish a supervisory framework for payment stablecoin issuers under its jurisdiction.
The first proposal would require stablecoin issuers to fully back their tokens with eligible high-quality liquid assets such as short-term U.S. Treasuries. It would also set unified capital and risk management requirements, establish custody rules for reserve assets, and define the scope of permitted stablecoin-related activities for banks supervised by the Federal Reserve.
The second proposal would create a dedicated approval process for Federal Reserve-supervised banks seeking to issue payment stablecoins. Applicants would need to submit materials including business plans and financial information, and the process would include appeals, hearings, and a final decision procedure.
The comment period will end 60 days after the relevant documents are published in the Federal Register.
Sequans exits its bitcoin treasury strategy
French fabless semiconductor company Sequans Communications (NYSE: SQNS) said it has sold the remaining 314 BTC it held as of June 30, formally ending its bitcoin treasury strategy.
The company had already redeemed its convertible notes in May. It said it now has no other outstanding debt apart from obligations tied to government-supported research and development programs, and it no longer holds crypto assets on its balance sheet. Sequans said it will refocus resources on its cellular IoT and software-defined radio, or SDR, semiconductor business.
Magic Eden says older EVM listings may have been exposed to a Limit Break flaw
After further review of the NFT security incident tied to Magic Eden, the vulnerability was identified as coming from Limit Break Payment Processor V2.
Yuga Labs Vice President of Blockchain Quit, also known as 0xQuit, said the team’s white hat rescue operation secured 23,155 NFTs worth more than $5.7 million, and those assets have now been moved to safety. He added that a similar flaw could also be used to steal WETH, and about 660 WETH could not be recovered in time.
Magic Eden said it stopped using Payment Processor V2 in October 2024 and shut down its EVM Marketplace in the first quarter of 2026, so current active listings were not affected. The potential risk is mainly tied to NFTs listed through its EVM marketplace between February 2024 and October 2024.