GM. Kraken refused to pay extortionists today after a breach exposed data for 2,000 users, with CSO Nick Percoco vowing that the exchange will never negotiate with criminals.

Meanwhile, hackers minted 1 billion fake DOT via a Hyperbridge exploit, BitMine bought 71,000 ETH, and Ondo Finance requested SEC clearance for tokenized equities.

Here are the details on data defense, bridge flaws, and treasury builds. 👇

Kraken Resists Extortionists To Release Customer Data

A criminal group threatened to leak sensitive customer data from the Kraken exchange on Monday unless the firm paid an undisclosed sum. Chief Security Officer Nick Percoco publicly vowed that the company would never negotiate with criminals.

The extortionists obtained videos showcasing internal systems and client information following a February security incident involving a compromised insider. Kraken identified the rogue individual and confirmed that no client funds were ever at risk during this breach.

Federal law enforcement agencies across multiple jurisdictions are now hunting the perpetrators using evidence gathered by Kraken’s security teams. Roughly 2,000 individuals had their data viewed, but the exchange has already contacted all of those affected.

This brazen attack coincides with a 75% spike in physical wrench attacks targeting crypto industry workers globally over the past year. Kraken remains confident that its systems are secure and expects arrests to happen as investigations proceed.

Hackers Exploit Hyperbridge Gateway To Mint Unauthorized DOT

An attacker minted one billion unauthorized bridged DOT tokens on Ethereum by exploiting a specific Hyperbridge gateway vulnerability. This interoperability protocol built on Polkadot suffered a massive security breach that allowed the malicious actor to forge messages. The hacker profited roughly $237,000 from the incident.

Bithumb and Upbit halted all Polkadot deposits on Tuesday morning to protect their users while the Hyperbridge team investigated the gateway flaw. Control was briefly swapped to the attacker’s contract before the tokens were dumped onto various markets. Native DOT prices dropped 4% as the bridged version plummeted immediately.

BitMine Increases Ethereum Stash With Record Weekly Purchase

Publicly traded BitMine Immersion Technologies acquired over 71,000 Ethereum last week for approximately $157 million in a major treasury expansion. This massive transaction represents the largest weekly purchase for the firm since December. Chairman Tom Lee believes the crypto asset is finishing its recent mini winter phase now.

BitMine currently controls 4% of the circulating supply and intends to reach a 5% target through its aggressive accumulation strategy. Over $7 billion in assets are already earning rewards via the internal validator network. This ongoing growth supports their long term goal of providing institutional grade staking infrastructure.

Ondo Finance Requests SEC Clearance For Tokenized Equities

Ondo Finance submitted a no action letter request to the Securities and Exchange Commission on Monday regarding its tokenized equities model. The firm wants to use the Ethereum network for recording securities entitlements for its global investors. This proposal specifically covers tokenized notes linked to major U.S. listed stocks.

Regulators under the current administration appear increasingly open to blockchain technology as firms move traditional assets into digital formats. Ondo aims to manage collateral onchain while keeping underlying shares at the Depository Trust Company. This legal engagement follows recent rule changes that enabled Nasdaq to support similar trading.

Data of the day

Global cryptocurrency investment products recorded $1.1 billion in net inflows last week as institutional risk appetite returned to the market. Bitcoin led the pack with $871 million in fresh capital following easing geopolitical tensions in Iran. This performance represents the second biggest weekly gain for the whole year.

Positive sentiment was almost entirely concentrated in the United States after softer inflation data encouraged investors to return to risk assets. Ether ETF products saw a strong rebound with $196 million in gains after three weeks of outflows. Most of this growth was driven by regulated spot exchange products.

More breaking news

• A Polymarket trader netted $252,000 in profit by betting on a fighter after spotting a scoring error on the official UFC scorecard.

• William Blair analysts claim Coinbase shares are de-risked following a selloff, citing the exchange's rising USDC market share as a bullish catalyst.

• White House adviser Patrick Witt says a durable compromise on stablecoin yield is likely to advance the stalled Digital Asset Market Clarity Act.

• Aave DAO approved a $25 million grant for Aave Labs despite opposition from major service providers concerned about the protocol's growing centralization.

• Circle CEO Jeremy Allaire defended the firm’s refusal to freeze funds without legal orders, emphasizing USDC’s role as a regulated financial product.

• American musician Garrett Dutton lost 5.9 bitcoin after entering his seed phrase into a malicious imposter app found on the official App Store.

• Jito Foundation partnered with Korean custodian KODA to offer institutional staking and custody for JitoSOL as South Korea finalizes its regulatory framework.

• Michael Saylor's Strategy purchased an additional 13,927 bitcoin for $1 billion, bringing its total treasury to over 780,000 tokens worth roughly $55 billion.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.

Need help?

Contact our support team for any assistance you are looking for.