Liquid Network’s federation wallet was drained of 3,998.5 BTC on Sept. 6, leaving just 207.275 BTC from a pre-incident balance of about 4,200 BTC, according to BlockTempo. The attacker later returned 3,400 BTC but kept 598.5 BTC, valued in the report at roughly $47.61 million. The key point in the incident, the report said, is that the breach did not come from Liquid’s 11-of-15 multisig being broken or from any stolen private keys. Instead, the issue was tied to how Elements, the Bitcoin Core fork used by Liquid nodes, indexed cached rangeproof validation data. That allowed the attacker to create L-BTC without matching BTC backing and then pass those assets through the normal peg-out process. BlockTempo also placed the event in the wider wrapped-Bitcoin market, noting that WBTC stood at $9.23 billion as of Sept. 9, or 27 times Liquid’s roughly $334 million scale before the exploit. At publication time, the Liquid network remained paused, bridge nodes were disabled, exchange deposits and withdrawals for L-BTC had not resumed, and Blockstream had not said who would absorb the remaining 598.5 BTC shortfall.

Bitcoin fork asset BTCB2 briefly reached an all-time high of $1,799 on Sept. 5, according to the news item cited by Odaily. Over the past four hours, the token traded between 750 and 1,000 USDC, while the Neoxa USDC market posted roughly $1 million in 24-hour volume. Using a BTCB2 price of $1,000, the project’s fully diluted valuation comes out to about $20.9 billion. BTCB2 stems from a chain split that took place on Aug. 8, 2026, at block height 961632. The network later switched its proof-of-work algorithm to Blake2 and reduced block size, making it minable with Blake2-compatible ASIC machines. BTCB2 is now listed on Neoxa Exchange, which offers BTC, USDC and USDT pairs, and on Nonkyc.io, which offers a USDT pair. The report said liquidity on both venues remains limited, and the asset has not yet been listed by CoinMarketCap or CoinGecko. It also noted an operational risk for holders: UTXOs need to be split from Bitcoin first, otherwise transactions may face replay attacks. Over the last seven days, the network’s hashrate rose 30.41% to around 5.1 PH/s, according to Bitcoin.com News.

Balance Coin, a small algorithmic stablecoin designed to stay near $1, collapsed by more than 99% on Wednesday after an attacker manipulated the price feed tied to its lending system and drained about $912,000 in a single transaction, according to on-chain data and security researchers. The token, which traded near its peg a day earlier, was last seen below $0.0014. Funds were taken from 42DAO, the governance entity behind Balance Protocol, which lets users lock bitcoin-backed collateral to mint the stablecoin and liquidates vaults when collateral values drop too far. SlowMist said the attacker pushed an abnormally low Binance-peg Bitcoin (BTCB) price into the protocol’s oracle, then used that distorted reading to liquidate vaults that should not have been close to liquidation. The firm said the exploit took advantage of missing price protection and the absence of a liquidation delay. PeckShield separately estimated the loss to 42DAO at about $915,000. The crash wiped out nearly all of Balance Coin’s roughly $3.5 million in nominal value.

A packed 24-hour cycle in crypto brought a mix of regulatory developments, exchange stress, security breaches and fresh ETF flow data. Coinbase said it has settled its Freedom of Information Act lawsuit with the U.S. Securities and Exchange Commission, with the SEC agreeing to pay $150,000 and revise its record-retention policies after missing communications tied to former Chair Gary Gensler. In South Korea, combined daily trading volume across the country’s five largest won-based crypto exchanges fell 88% from a year earlier, while Korbit sold BTC and ETH holdings to raise cash. SEC Commissioner Hester Peirce also warned that moving vaults and lending strategies on-chain does not automatically place them outside federal securities laws. On the security front, algorithmic stablecoin Balance Coin crashed more than 99% after an oracle attack, and several other incidents highlighted operational and key-management risks across the sector. Meanwhile, spot Bitcoin ETFs logged a sixth straight day of net inflows and spot Ether ETFs extended their inflow streak to three days, according to SoSoValue data.

SK Hynix tokenized shares ($SKHYon) launched on BNB Chain, Ethereum, and Solana. Trust Wallet runs a $100K contest with zero fees until Aug 2026. BNB Tokyo event set for July 13 with AI and mass adoption panels.

SlowMist said the attack on 42DAO stemmed from an abnormally low BTCB price reported by the Median Oracle, which the attacker used to trigger liquidations through the protocol’s Spotter and Dog modules. According to the security firm, the Spotter module’s "poke" function wrote the faulty price directly into the Vat account because it lacked price deviation checks, maximum drawdown limits, and a minimum price protection mechanism. The Dog module then used that updated spot price to immediately liquidate multiple BTCB vaults through its "bark" function, without any liquidation delay or oracle price validation in place. SlowMist said the attacker was able to profit from arbitrage through that sequence. Foresight News had earlier reported that Balance Coin, or BLC, the native algorithmic stablecoin incubated and used by 42DAO, was hit in the incident. BLC fell 99%, and 42DAO’s losses were about $915,000.

Venus Protocol on BNB Chain faces a suspected exploit where an attacker deposited illiquid $THE tokens as collateral, extracted ~$3.7M in crypto assets, triggering large-scale liquidations. The platform may incur up to $2M in bad debt.

Venus Protocol on BNB Chain is investigating suspicious activity where an address used illiquid $THE tokens as collateral to extract ~$3.7M in assets, leading to $1.7-2M in bad debt. The incident appears to be collateral manipulation, not a smart contract exploit.