Switchboard Oracle Compromise Halts Four Chains as Full Sail Confirms Vault Losses

Switchboard oracle compromise halts four chains; Full Sail confirms vault losses An attacker used a compromised oracle key to set IOTA's price to $10M and mint ~4.94M VUSD via Virtue CDP, triggering liquidations and protocol freezes. Switchboard halted Move-based deployments on Aptos, Sui, IOTA and Movement, while Sui DEX Full Sail paused deposits and withdrawals after confirming user fund losses; Solana was unaffected. 12

SEC custody rule enters final review as institutional crypto framework nears completion The SEC's custody modernization rule (RIN 3235-AN46) entered OIRA review on Aug. 25, with an NPRM targeted for October. It is one of five regulatory tracks converging ahead of the GENIUS Act's Jan. 18, 2027 enforcement date, alongside stablecoin rules, banking integration and securities offering reforms. 3

Bitcoin ETFs post $201.9M outflows, ending nine-day $3B inflow streak US spot Bitcoin funds lost $201.9M on Aug. 28, led by ARKB (-$114.9M) and BITB (-$49.7M), even as Ethereum, XRP and Solana ETFs drew a combined $145M. Bitcoin ETFs still finished the week with about $924.5M of net inflows. 4

Ethereum ETFs log $1.42B in nine days, led almost entirely by BlackRock BlackRock's ETHA bought on all nine sessions and accounted for nearly three-quarters of the category's inflows, with on-chain data confirming over $1B into ETHA alone. The streak narrowed the gap with Bitcoin ETFs to just $16.5M as of Aug. 28. 5

BlackRock's Bitcoin ETF tops $60B as regulated crypto access expands IBIT held $60.34B in net assets as of Aug. 28, up from $47.29B on Aug. 11. SEC filings note the ETF structure removes wallet and custody burdens but does not reduce Bitcoin's volatility or regulatory risks. 6

SEC reviews automatic ETF filing pathways after exotic crypto proposals flood market The agency's June 30 concept release, with comments due Aug. 31, covers crypto assets, leveraged single-stock products, private assets and event contracts. US ETF assets have tripled to over $12T since 2019 while product count rose to more than 4,600. 7

Senate sets Sept. 15 CLARITY Act vote; prediction markets give it 14% The Digital Asset Market Clarity Act would give the CFTC exclusive authority over digital commodities and keep SEC oversight for securities, plus add an 'ancillary asset' category. Traders price its chance of becoming law this year at 14%, down from an 82% February peak. 8

BIS chief says stablecoins lack credibility for large-scale payments Pablo Hernández de Cos told the Jackson Hole symposium that tokenized bank deposits are a better path than stablecoins. An FSI study published Aug. 27 highlighted uneven stablecoin issuance rules across the US, EU, UK, Hong Kong and Singapore. 9

Russia's Sberbank plans crypto-backed loans using Bitcoin, Ethereum and Tether Russia's largest lender said it will accept BTC, ETH and USDT as loan collateral once regulators permit public circulation, following a December pilot with mining firm AO Intelion Data. The bank is also building crypto custody services. 10

Dunamu and Visa partner to explore stablecoin payments and AI finance Upbit operator Dunamu signed a strategic framework with Visa on Aug. 28 covering stablecoin payments, remittances and AI financial services, with no product or launch date. It follows Visa's separate stablecoin partnership with Shinhan Financial Group. 11