The Polylog Crypto Intelligence Brief

Morning Edition · Sunday, August 30, 2026

Crypto

Aztec Discloses a Critical Soundness Flaw in Its Alpha V5 Proving System

Core contributors found the defect on July 27 through internal auditing assisted by artificial intelligence (AI), and say an attacker could construct a proof the network accepts for a transaction it should reject.

4 sources
Corroborated

Crypto

Bitcoin Knots Developers Plan an August 30 Test That Replaces Bitcoin's Mining Algorithm

Luke Dashjr told miners using the existing SHA-256 hardware to stop ahead of the rehearsal, which would run the breakaway chain on BLAKE2b after the first attempt stalled two blocks in.

3 sources
Corroborated

Crypto

Deribit Ends Daily Proof of Reserves After Moving 90 Percent of Client Assets to Coinbase

From September 1 clients lose the daily cryptographic check that let each of them confirm their own balance was included in the exchange's reserves, replaced by audits published twice a year.

2 sources
Corroborated

Crypto

Core Lightning Ships a Security Release and Withholds the Source Patches for 14 Days

Version 26.06.7 fixes vulnerabilities confirmed during a three-week wave of machine-generated bug reports across open-source Bitcoin projects, and every earlier release is now unsupported.

3 sources
Corroborated

Crypto

Attackers Take About $1 Million From Solana Card Platform Avici and $775,000 From Ajna

The Avici attacker registered as an administrator of user collateral accounts before withdrawing, while Ajna lost funds to manipulated liquidation accounting across seven Ethereum pools.

5 sources
Corroborated

Crypto

Miden Puts a Private, Circle-Backed Dollar at the Center of Its Mainnet Launch

USDCx will be issued natively on Miden against USDC held through Circle's xReserve, with transactions private by default and balances disclosed selectively to auditors and counterparties.

3 sources

Crypto

Ripple Sets a 2028 Deadline to Make the XRP Ledger Quantum-Resistant

An emergency phase would stop the network from accepting classical signatures entirely, forcing every holder to move funds to quantum-safe accounts if fast progress in quantum computing arrives.

2 sources
Corroborated

Crypto

Sberbank Plans to Accept Bitcoin, Ether and Tether as Loan Collateral

Russia's largest bank says it will extend the crypto-backed lending it piloted with a mining company last year, once the Bank of Russia permits the assets to circulate publicly.

3 sources
Corroborated

Crypto

Appeals Court Lets States Regulate Prediction Markets as Gambling, Splitting the Federal Courts

The Ninth Circuit ruled against Kalshi three days before a builder deployed the first permissionless outcome exchange on Hyperliquid, where no licensing question arises at all.

3 sources
Corroborated

Crypto

Bankers and Crypto Executives Argue Over Whether Stablecoins Can Displace Swift

Swift's 11,500-institution membership is the argument bankers make for absorbing blockchain settlement rather than being replaced by it, while some executives say the currency machines will use has not been built.

2 sources

Crypto

UK Tax Data Shows 240 People Reported Half of All Declared Crypto Gains

His Majesty's Revenue and Customs published its first crypto gains table covering 17,600 taxpayers and £1.38 billion, as police seizures and an Interpol operation added to a week of enforcement figures.

3 sources
Corroborated

Crypto

Nearly $9.7 Billion in Crypto Positions Liquidated Over Two Weeks, Two Thirds of Them Shorts

Bitcoin traded near $77,800 on Friday after Federal Reserve Chair Kevin Warsh said inflation was running too hot, ending a run that exchange-traded fund inflows had driven.

3 sources