MetaMask said it is continuing to investigate and respond to a previously disclosed infrastructure security incident, according to a daily crypto news digest published by WuBlockchain on Oct. 1. As a precaution, the company said it has worked with relevant partners and is exiting affected validator nodes in its non-custodial staking service.
Based on the investigation so far, MetaMask said there is no indication that MetaMask wallets or customer funds have been affected. The team said it is focused on containment and verification, and warned users to be careful with unsolicited direct messages. It also said users should never disclose their seed phrase or private key, adding that MetaMask will not ask for a seed phrase.
U.S. weekly jobless claims came in below forecasts
U.S. initial jobless claims for the week ending Sept. 26 were 197,000, below expectations of 200,000. The prior reading was revised to 198,000 from 197,000.
ESMA proposes a new regulatory category for DeFi access points under MiCA review
The European Securities and Markets Authority, or ESMA, has submitted recommendations to the European Commission as part of a review of the Markets in Crypto-Assets framework, known as MiCA. ESMA proposed creating a new regulated crypto service category for firms that provide users with access points to DeFi protocols.
It also recommended clearer disclosure and compliance requirements for staking, crypto lending, and borrowing. In addition, ESMA proposed explicitly banning MiCA-regulated crypto platforms from offering services related to stablecoins that do not meet MiCA requirements, while expanding supervisory powers over unauthorized offshore platforms. The recommendations remain part of the MiCA review process and have not become binding rules.
Citigroup lifts 12-month targets for BTC and ETH
Citigroup raised its 12-month price targets for Bitcoin and Ether in a research note. The bank lifted its Bitcoin target to $113,000 from $82,000 and its Ether target to $3,028 from $2,240.
Citigroup said the revision was driven by stronger crypto market activity, support from the macro backdrop, and renewed inflows into spot exchange-traded funds. It estimated that ETFs could bring about $5 billion in incremental inflows over the next 12 months.
The bank also noted that the U.S. Senate failed last week to advance the Clarity Act, a bill aimed at establishing a digital asset regulatory framework, narrowing the path for broader market structure legislation across the sector. It added that subsequent rule statements from the U.S. Securities and Exchange Commission helped ease negative market sentiment. Citigroup also pointed to recent U.S. Treasury buybacks of long-dated government bonds, saying the resulting weaker dollar supported the rebound in crypto markets.
Judge rejects claims from nine alleged fraud victims over seized BTC
Rachel Kovner, a judge in the U.S. District Court for the Eastern District of New York, rejected claims from nine alleged fraud victims who sought rights over about 127,271 seized BTC. Of those claims, two timely filings were withdrawn, while seven late filings were denied.
The court said the claimants failed to reasonably show a direct connection between their losses and the specific BTC wallets that were seized, leaving them without legal standing to challenge the forfeiture. The U.S. Department of Justice had previously said the BTC was tied to alleged fraud and money laundering involving Cambodia’s Prince Holding Group and its chairman, Chen Zhi.
The court said the alleged victims could at most be treated as general unsecured creditors. If the government ultimately succeeds in forfeiting the assets, they may still seek compensation through the Department of Justice victim remission process, though neither recovery nor the size of any payout is guaranteed. The ruling itself did not amount to a final forfeiture order.