Zilliqa has issued the latest update on the random number generation vulnerability that was previously disclosed in its Ledger application. According to the project, the address detection tool has now gone live, while an audit of the migration tool is about to begin. Once the audit results are confirmed, Zilliqa will announce the specific launch date for the migration tool, the team confirmed in its announcement. On the migration front, several exchanges have already confirmed that they will take part in the process, and the first batch of exchange migrations is being targeted for completion by the end of August. Zilliqa also said that the work of tracing stolen funds is continuing, and that this effort is being carried out together with law enforcement, exchange partners and other relevant parties. Because the investigation is still in progress, the project cannot disclose further details at this stage, according to a statement from Zilliqa.

U.S. Securities and Exchange Commission Chair Paul S. Atkins has told the Consolidated Audit Trail’s operating committee that the agency wants a broad overhaul of the CAT system, with changes spanning governance, funding and operations. In his letter to committee chair Robert Walley, Atkins said the SEC had already reduced CAT’s annual operating costs through exemptive relief and amendments to the CAT NMS Plan, while also removing the requirement to report personally identifiable information, or PII, to the system. Even after those steps, he said CAT still faces fundamental problems tied to cost, governance and its funding structure. The SEC opened a concept release on April 16, 2026 to review CAT alongside other audit trail systems and data sources used in U.S. securities market oversight, and said it has since received hundreds of comments. According to the agency, one of the clearest themes in that feedback is that investors and market participants want the SEC to take on more responsibility for CAT management and financing. Atkins said staff have been directed to develop deeper reforms, including new funding options, a proposal to rescind Rule 613, and an internal assessment of what the SEC would need if it were to assume CAT governance duties. The transition could run through the end of 2027.

U.S. Securities and Exchange Commission Chair Paul S. Atkins said the agency is preparing a broad overhaul of the Consolidated Audit Trail, or CAT, targeting its governance structure, funding model, and operating framework. In a letter to CAT Operating Committee Chair Robert Walley, Atkins said the SEC has already reduced CAT’s annual operating costs during his tenure through exemptive relief and approval of amendments to the CAT NMS Plan, while also eliminating the requirement to report personally identifiable information to the system. Even so, the SEC said CAT still faces what it described as fundamental problems tied to cost, governance, and funding. The agency launched a concept release on April 16, 2026, to review CAT as well as other audit trail systems and data sources used in U.S. securities market oversight. According to the SEC, it has received hundreds of comment letters, with one central point of agreement: investors and market participants want the SEC to take on a larger role in CAT management and funding. Atkins said staff have been directed to develop deeper reform proposals, including alternative funding sources, a possible repeal of Rule 613, and internal preparation for the SEC to assume CAT governance responsibilities.

Sui announced on X that its Seal feature supports a regulatory authorization mechanism without requiring a master key. Auditors can receive scoped, time-limited, and revocable permissions. Prudential regulators can view all information, tax authorities can access a single member's information, and dispute arbitrators can view disputed transactions only while they remain open. None of these parties are able to transfer funds.

Odaily Planet Daily's news flash on Aug. 10 cited data showing that cryptocurrency industry losses from hacker attacks reached about $110 million in July. Researchers whose vulnerability findings were confirmed received approximately $2.32 million in payments, while the number of confirmed and paid vulnerability reports grew 18% month over month. A review of 1,178 first-line audit reports revealed a median of zero critical or high-severity vulnerabilities. In 58 audit contests, each contest found an average of 6.2 severe vulnerabilities, versus 1.5 for first-line audits. The data show that the average cost to identify a critical vulnerability via an audit contest was roughly $6,548. That is sharply below the approximately $66,000 cost of a private first-line audit and the estimated $24.5 million loss when a vulnerability is exploited by hackers before discovery. The report also compared costs across different vulnerability discovery methods. The figures cover only confirmed and paid vulnerability reports.

The crypto industry is going through a broad shakeout that now stretches far beyond any single sector. RootData shows that more than 100 crypto projects have shut down, filed for bankruptcy, or permanently ceased operations since the start of 2026, with the pace accelerating. In late July alone, BitMEX, BitMart, Movement Labs, and Storj Labs were among the firms that announced closures, while Polkadot parachain Moonbeam permanently stopped operating on July 31, leaving some users unable to move assets off-chain in time. The pressure is hitting exchanges, wallets, DeFi lenders, NFT marketplaces, Layer 1 networks, and increasingly crowded Layer 2 projects. Industry figures cited in the report said the cull reflects consolidation and a return to fundamentals rather than a problem limited to Ethereum scaling. A repeated weakness runs through many of the failed projects: usage without durable revenue. Teams often relied on their own tokens to pay staff, subsidize liquidity, and cover operating costs, leaving them exposed when altcoins fell 70% to 90% in the bear market. The report also points to a harsher security environment, rising funding difficulty, and the growing risk posed by abandoned smart contracts. At the same time, projects such as Hyperliquid, Aave, and Ether.fi are presented as examples of firms that have kept growing with revenue streams tied to fees and user demand rather than token prices alone.

BitMart founder Sheldon has responded on X to swirling rumors that said the exchange had gone silent, was dealing with asset issues, or had leaked internal information. He said BitMart has not disappeared, and the team is still working on asset inventory, consolidation, and system maintenance. Sheldon acknowledged that the market has recently been full of unverified claims, including information and screenshots described as coming from former or current employees, and he urged users not to trust content that has not been verified. He added that BitMart's core team is carrying out asset checks and consolidation while maintaining systems, with the goal of making sure the platform can finish its follow-up arrangements in an orderly way. Progress will be shared through official announcements and updates, he said. On fund safety, Sheldon stressed that BitMart has not misappropriated assets and has not withdrawn funds early or taken steps to dodge responsibility. The team is now considering bringing in judicial authorities and an independent third-party auditor to review the situation and release a transparent report.

Bitcoin developers say an AI-assisted security sweep has exposed thousands of weaknesses across the broader ecosystem just as the fallout from the Coldcard wallet exploit continues to unsettle users and traders. A volunteer team said it scanned about 390 Bitcoin-related projects in roughly 24 hours and found 4,962 security issues, including 85 critical bugs and 635 high-severity flaws, calling the state of ecosystem security "extremely bad." The group, now 16 people working in shifts around the clock, is using Moonshot’s open-weight Kimi K3 model, with daily compute costs of about $10,000 covered by OpenSats. At the same time, Coldcard is still urging users to move funds after an exploit tied to a five-year-old key-generation defect led to the theft of nearly 2,000 BTC from more than 5,200 addresses over several days. One wallet linked to the attacker still holds about $36 million in bitcoin, while on-chain messages sent to that address include pleas for the funds to be returned and at least one message offering laundering services for a 10% fee. The overlap between AI-powered defense and AI-assisted exploitation has become a central concern.