Crypto Security and Regulation Roundup, DeFi Exploits and Wallet Updates
Crypto markets and policy did not move in a vacuum this week. On one side, the security environment in decentralized finance continued to produce major incidents tied to bridges, rollup infrastructure, and MEV-related trading. On the other, regulators in the United States and the...
➤ DeFi faced significant security challenges this week with exploits targeting deprecated bridges (Aztec Connect) and chain-state verification (Taiko), resulting in millions lost. ➤ Regulatory developments included Illinois proposing a digital asset transaction tax and the EU advancing rules on cash payments, identity verification, and restrictions on privacy coins for intermediaries. ➤ Wallet updates introduced new features for user experience and third-party trading, while the overall security and regulatory landscape highlights persistent risks and converging intermediary-focused regulations.