The Protocol: Bitcoin proposal that could freeze quantum-related coins

CoW SWAP SECURITY BREACH: CoW Swap, a decentralized trading interface, said Tuesday it temporarily halted its services after detecting a domain name system (DNS) hijacking incident affecting its website, underscoring ongoing security risks at the front-end layer of DeFi platforms. In a post on X, the team said the attack occurred at 14:54 UTC and warned users to avoid interacting with its interface until further notice. While the protocol’s underlying infrastructure, including its backend and APIs, was not directly compromised, both were paused “as a precaution” as the team worked to resolve the issue. DNS hijacking allows attackers to redirect users from a legitimate domain to a malicious lookalike site, often to drain crypto wallets or harvest private data. The attack vector has become a persistent weak point in decentralized finance, where users typically rely on web-based interfaces to access otherwise secure smart contracts. CoW Swap operates as a decentralized exchange aggregator, sourcing liquidity across venues and using the “Coincidence of Wants” mechanism to match trades directly between users or batch them for more efficient execution. Orders are handled by competing “solvers” that optimize trade outcomes, a design intended to reduce slippage and limit exposure to maximal extractable value (MEV). — Margaux Nijkerk Read more.

ZK PROOFS ON XRP LEDGER: The XRP Ledger added native support for zero-knowledge (ZK) proofs by integrating with Boundless, a ZK proving network, in what the company claims is the first such deployment on the ledger. The move is designed to let financial institutions transact privately on the public blockchain while meeting regulatory requirements. It addresses a specific barrier to institutional adoption that has persisted across every public blockchain. Transaction flows, treasury positions, and counterparty relationships are visible by default on public ledgers. For a bank settling cross-border payments or a fund managing OTC positions, that transparency creates competitive risk. Zero-knowledge proofs solve this by allowing one party to prove a statement is true without revealing the underlying data. It's like passing a credit check, where the bank confirms an individual qualifies for a loan without disclosing specifics about income, debts or account balances to the lender. In practice on XRPL, this means a payment can be verified as valid, correctly funded, and compliant without exposing the amount, the sender, or the receiver to the public ledger. — Shaurya Malwa Read more.

In Other News

• The Trump family-backed World Liberty Financial has proposed unlocking 62.3 billion WLFI governance tokens on Tuesday, less than a week after CoinDesk reported the venture had used 5 billion of its own tokens as collateral on lending platform Dolomite to borrow $75 million in stablecoins. WLFI's token was originally sold as a governance-only token with no transferability and indefinite locks. A vesting schedule with a defined path to liquidity changes the economic profile of what holders bought. The proposal would unlock liquidity for insiders who previously had no exit, thereby changing the token's economics. The proposal splits the locked supply into two groups. Early supporters holding 17 billion WLFI would receive a 2-year cliff followed by a 2-year linear vest, retaining all tokens. Founders, team members, advisors, and partners holding 45.2 billion WLFI would face a 2-year cliff and 3-year vest, but with 10% of their allocation, roughly 4.5 billion tokens, burned immediately on passage. (Burns refer to the permanent removal of tokens from supply, usually by sending them to an address that is not controlled by anyone.) In practice, it means insiders would surrender 4.5 billion tokens in exchange for unlocking 40.7 billion previously locked indefinitely, with no vesting schedule attached. Those tokens had no path to liquidity before this proposal. — Shaurya Malwa Read more.
• Some 572 bitcoin worth $42.77 million moved from a Gemini hot wallet into wallets owned by Winklevoss Capital and custody wallets in the past 24 hours, according to Arkham Intelligence data, the first significant transfers into the fund's addresses in over a month. The transfers came in two batches. One of 372 BTC and one of 200 BTC, about 11 hours later. Both moved from addresses tagged by Arkham as belonging to the crypto exchange to addresses tagged as Winklevoss Capital and Gemini Custody. Winklevoss Capital now holds 9,328 BTC worth $689 million across 128 tracked addresses, up from about 8,800 BTC after a $128.5 million deposit into Gemini roughly a month ago that brought holdings to their lowest level since 2012. It also holds 70,588 ETH worth $163.7 million, bringing its total tracked portfolio to approximately $853 million, the Arkham data show. The onchain data shows the direction of movement, not the intent. The transfers could reflect new purchases, internal rebalancing between Gemini's exchange and custody infrastructure, or a partial reversal of last month's deposit. — Shaurya Malwa Read more.

Regulatory and Policy

• Pakistan’s central bank notified all banks and financial institutions in the country that the ban on providing crypto services has been lifted. However, according to the new state bank rules, banks are banned from investing, trading or holding crypto assets using their own funds or customer deposits. The State Bank of Pakistan’s move follows the recent enactment of the 2026 Virtual Assets Act, which establishes Pakistan’s Virtual Asset Regulatory Authority (PVARA to license, regulate and supervise the sector. The central bank replaced its 2018 ban on crypto with new rules that permit regulated banks and other financial institutions to open accounts for crypto firms approved under PVARA. Under the new state bank framework, banks can provide services to virtual asset service providers (VASPs) licensed under the new crypto act, as well as to those seeking approval, subject to strict compliance with anti-money laundering (AML), know-your-customer (KYC), and other counter-terrorism financing regulations. — Olivier Acuna Read more.
• Tom Duff Gordon, the vice president of international policy at U.S.-listed cryptocurrency platform Coinbase (COIN), has left the firm for pastures green. Duff Gordon, who had been with Coinbase for close to 4 years, left the exchange to join OpenAI as head of EMEA Policy, a Coinbase spokesperson said via email. Duff Gordon had previously spent 8.5 years working as a banker at Credit Suisse. He did not immediately respond to a request for comment. An expert on crypto regulations, Duff Gordon, recently pointed out that U.K. banks are blocking millions of customers from accessing legal and compliant services by failing to distinguish between Financial Conduct Authority-registered firms with low fraud rates and higher-risk operators. — Ian Allison Read more.

Calendar

• Apr.15-16, 2026: Paris Blockchain Week, Paris
• May 5-7, 2026: Consensus, Miami
• Sept. 29-Oct.1, 2026: Korea Blockchain Week, Seoul
• Oct. 7-8, 2026: Token2049, Singapore
• Nov. 3-6, 2026: Devcon, Mumbai
• Nov. 15-17, 2026: Solana Breakpoint, London