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The Bank for International Settlements (BIS) released a report indicating that cryptocurrency exchanges are gradually providing bank-like services, such as lending and earn products, but lack the regulation and deposit protection found in traditional financial systems, posing systemic risks.The report states that these high-yield products are essentially closer to "unsecured loans," where user assets are often used by the platform for high-risk operations such as lending, trading, or market making, and users only hold a creditor position against the platform. If the platform encounters problems, users will be directly exposed to repayment risks. The BIS also noted that leading cryptocurrency platforms have evolved from single exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, but lacking transparency and risk isolation mechanisms. The previous collapses of Celsius Network and FTX are typical cases of such structural risks. Additionally, the report mentioned that the flash crash in the cryptocurrency market in October 2025 triggered approximately $19 billion in forced liquidations, highlighting the chain reaction risks under high leverage and opaque structures.

According to official news, KelpDAO stated that over the past few days, the team has been continuously advancing the handling of related events with the support of partners, allies, and the community. Discussions are progressing in a positive direction, and efforts are being accelerated to reach a suitable solution. The project party emphasized that it always adheres to the core principle of "user first," and subsequent measures will be gradually implemented with the aim of safeguarding the overall interests of users.In the past four days, the Kelp team has been working around the clock in collaboration with multiple parties, maintaining close communication with all relevant parties, and making substantial progress on several potential solutions. This includes measures taken by the Arbitrum Security Council to freeze the stolen funds, as well as SEAL 911 participating in the preliminary investigation to provide objective and clear analytical support for the incident.Kelp stated that the current focus of work remains on protecting user asset security and strengthening the protocol itself. This incident is not only of critical significance to the project but also has enlightening value for the entire industry. The team will continue to disclose subsequent progress through official channels and thanks the ecological partners and community for their ongoing support.Previous reports indicated that the KelpDAO hacker has essentially laundered $175 million in ETH into BTC.

Lido stated on platform X that its EarnETH treasury was affected by the theft of 116,500 rsETH (approximately $29.2 million) from the Kelp DAO cross-chain bridge on April 18.EarnETH holds approximately $21.6 million in rsETH risk exposure through leveraged positions in rsETH/ETH on Aave, accounting for about 9% of the total assets in the treasury. The EarnETH team is currently actively deleveraging to reduce risk, and the outcome depends on the final decisions made by Kelp, LayerZero, and Aave regarding loss sharing and bad debt handling.Lido further stated that EarnETH has a $3 million "first loss protection mechanism" funded by the Lido DAO treasury, which will be used to cover losses if necessary. The treasury has currently suspended redemption processing to assess the losses. This incident does not affect stETH and wstETH, and the core staking protocol of Lido is not involved.

According to RHEA Finance's official disclosure, the NEAR ecosystem lending protocol RHEA Finance (formerly known as Burrow Finance) experienced a margin trading feature hack, resulting in a loss of approximately $18.4 million.The attacker began laying the groundwork several days prior by creating multiple fake token pools on Ref Finance and injecting liquidity, constructing a malicious exchange route that exploited a vulnerability in the protocol's slippage protection mechanism—this mechanism did not account for the scenario where intermediate tokens were reused when calculating the minimum output of multi-step exchanges—leading to the borrowed debt tokens being directed into fake token pools controlled by the attacker, triggering a large-scale forced liquidation that ultimately drained the protocol's reserve pool. During the attack, the attacker deleted a total of 55 intermediate accounts to cover their tracks. Currently, the attacker has returned approximately 3.359 million USDC and 1.564 million NEAR to the RHEA lending contract, while another 4.34 million USDT has been frozen (of which Tether froze 3.291 million and NEAR Intents froze 1.053 million). The protocol contract has been suspended, and the team is collaborating with centralized exchanges for joint tracking and has notified relevant law enforcement agencies.

According to DL News, STS Digital's CEO Maxime Seiler stated that Bitcoin traders are increasingly positioning themselves for a price decline.In a report, he noted that the demand for put options is significantly higher than that for call options, with investors paying a premium for downside protection while selling off bullish bets, reflecting a sense of panic in the market. This bearish signal comes as Bitcoin's trading price hovers slightly above $70,000.Previously, Bitcoin fell nearly 4% over the weekend due to President Trump's threat to block the Strait of Hormuz. On Monday, the U.S. Central Command announced that the Navy would intercept all vessels entering or leaving Iranian ports starting at 10 AM Eastern Time, causing oil prices to rebound above $100 per barrel.High oil prices mean rising inflationary pressures, which will be a major focus for global central bank governors at their meeting in late April. The prices of risk assets like Bitcoin are highly dependent on the policies of these institutions, as they determine the money supply in the financial system. The unresolved Middle East conflict will remain a focal point for the market this week.

Sky Governance announced on April 7 two structural upgrade proposals aimed at strengthening the capital protection framework of the protocol. The two proposals are: implementing a stronger solvency buffer mechanism and adopting a more sustainable staking reward model, with the goal of consolidating the long-term stability of the protocol and placing credibility above the pursuit of short-term gains.Sky Protocol pointed out that its yield-bearing stablecoin sUSDS is the largest in its category, attributing this success to the protocol's unique risk positioning compared to its competitors.

According to the official announcement, Binance spot will implement a spot price range protection mechanism, allowing orders to be executed only within a dynamic price range.Starting from April 14, 2026, the spot price range protection mechanism (PRER) will be gradually implemented to ensure that trading prices reflect a fair and orderly market.

VanEck's research director Matthew Sigel analyzed in a post on the X platform that the current protective demand in the Bitcoin derivatives market has risen to the historical 99th percentile, which is typically seen as a "contrarian buy signal" under extreme risk-averse market sentiment, and he judges that the market is currently suitable for establishing long positions.The VanEck Digital Transformation ETF (NODE), which Matthew Sigel also manages, has risen 27% since its inception, while Bitcoin has fallen 33% during the same period, achieving lower volatility performance through diversified allocation and focusing on profitable sectors. However, he also warns that if the massive capital expenditures in the artificial intelligence (AI) sector do not generate corresponding returns, it could pose substantial pressure on the market, especially in the context of a concentration in S&P 500 constituents.Note: Percentile is a statistical position concept, with the 99th percentile representing a relatively extreme level, and the 50th percentile representing the median level.

According to Bloomberg, the Irish government officially launched the testing phase of the digital wallet on April 3 local time, which includes an age verification feature.According to a statement from the Irish Department of Public Expenditure and Reform, this digital ID will support age verification on social media platforms, aiming to protect children and adolescents from online harm.

Polygon announced the launch of the Private Mempool, a private transaction submission entry that protects each transaction from front-running and sandwich attacks.Simply replace the RPC address with the corresponding private entry to use this feature, with no additional operations required.

U.S. Senator Cynthia Lummis stated that the CLARITY Act, after its latest revision, will provide "the strongest protection" for DeFi and developers. This response addresses concerns raised by crypto lawyer Jake Chervinsky regarding the developer liability provisions in the draft, noting that bipartisan adjustments have been made to strengthen legal protections for non-custodial software developers.However, Chervinsky pointed out that the current draft's definition of funds transfer may still expose some DeFi developers to liability risks, as the relevant provisions have not been fully clarified. Reports indicate that the latest revised version of the bill has not yet been made public and is expected to advance to the Senate Banking Committee for review in April.

According to official news, Gate will officially launch the Trader Protection Program from March 26 at 18:00 to April 9 at 18:00 (UTC+8), aimed at creating a more secure trading environment for traders across the platform. This program has a dedicated subsidy pool of 90,000 USDT. During the event, if traders incur position losses, they can apply for corresponding subsidies based on the maximum loss margin per transaction, with a maximum of 400 USDT; traders who follow others will also share in the loss subsidy benefits, with a maximum of 500 USDT available.

According to monitoring by Hyperinsight, the "30 times long repeatedly failed" whale temporarily closed all ETH long positions held, exiting at break-even near the cost, with an average closing price of $2159. This closing resulted in a small profit of about $15,000, which just covers the order fee costs, with a total cumulative profit of $120,000 over the entire period.This long position was opened on March 20 at an average price of $2140, with an initial position size of about $8.67 million. Subsequently, this address rolled over and added positions, raising the average price to above $2150, with a peak position size reaching $8.67 million.

BIT (formerly Matrixport) released a chart today stating that the spot price of Bitcoin has not yet fully reflected this change, but the options market has responded, with implied volatility significantly rising and demand for downside protection continuing to heat up. In the past week, the proportion of bearish buying in Bitcoin options trading reached 29%, while Ethereum was even higher at 37%, indicating a clear shift towards defensive positions.Behind this round of position adjustment is a deep concern among traders regarding geopolitical tensions: inflationary pressures may persist longer as a result, affecting not only oil prices but also spreading to a broader range of growth-sensitive assets. Therefore, continuously tracking changes in market positions remains crucial, especially in the options market.Compared to spot trading, options often reflect changes in the risk appetite of fast-money accounts and tactical funds earlier. Although overall trading volume remains relatively low, market participants have not relaxed their vigilance but are actively managing tail risks. However, it is worth noting that Bitcoin's performance is still outpacing other risk assets.

According to VanEck's latest Bitcoin on-chain report, Bitcoin options traders' bearish sentiment has risen to its highest level in five years, with the put/call ratio peaking at 0.84 last month, an average of 0.77, placing it in the most bearish 9% range since mid-2019. The total size of open interest in options has surpassed $33 billion.At the same time, the premium for put options has also reached an all-time high, indicating that institutional investors are buying significant amounts of downside protection. Analysts point out that the current extreme defensive posture may stem from macro factors such as the escalation of the situation in the Middle East, regulatory risks, and liquidity concerns, but there are also views suggesting that historically, peaks in bearish sentiment often signal a market bottom.

Binance has issued a security alert, as there have been multiple asset security incidents in the community recently due to device environment issues, reminding users to pay attention to the security of their private keys/seed phrases.The Binance wallet's keyless mode is based on MPC-related technology, which stores key shards in different independent environments, further enhancing the security of asset management and effectively reducing the risk of key leakage and attacks.

Cybersecurity company CUJO AI has officially launched a network-layer cryptocurrency investment fraud detection capability designed for network service providers (NSP), which can identify fraudulent activities that bypass application layer and platform layer protections. CUJO AI stated that modern cryptocurrency investment scams often rely on rotating domain names, wallet interactions, and social engineering tactics, making it difficult for a single platform to grasp the full picture; the network layer is a key location where such threats are concentrated.According to Chainalysis data, global losses from cryptocurrency-related scams and fraud are estimated to reach $17 billion by 2025, with the majority of victims being ordinary users rather than institutional traders.

Members of the crypto advocacy organization Stand With Crypto have written to the U.S. Senate Banking Committee, urging the protection of decentralized finance development in the advancement of crypto legislation and the retention of provisions that allow trading platforms to offer stablecoin yields.The letter points out that a clear and fair regulatory framework should be established while avoiding the undermining of innovative financial technologies. The current legislative controversy mainly focuses on stablecoin yields and DeFi regulation, with the banking industry concerned that yield mechanisms will divert traditional deposits, while the crypto industry argues that restricting yields will stifle innovation. Additionally, the letter emphasizes the need to retain provisions related to blockchain regulatory certainty legislation, clarifying that developers who do not control user funds are not considered money transmitters. Relevant legislation is still being advanced in the Senate Banking Committee.

BlockFills, headquartered in Chicago, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. Documents submitted by the company indicate that its estimated assets are between $50 million and $100 million, while estimated liabilities are between $100 million and $500 million.In a statement released on Sunday, BlockFills stated that after extensive discussions with investors, clients, and creditors, the Chapter 11 bankruptcy process is the "most responsible path forward." This filing for reorganization will allow the company to undergo an orderly restructuring under court supervision while maintaining transparency and oversight. The company added that this move aims to "stabilize the business, seek additional liquidity and avenues for recovery, and explore potential strategic transactions," while emphasizing that protecting customer interests "remains a top priority."

Binance founder CZ commented on "a user buying AAVE and suffering a slippage loss of over 50 million dollars" by saying: "It's very unfortunate; liquidity is the best user protection."