risks

A report from the U.S. Senate Permanent Subcommittee on Investigations (PSI) identifies stablecoins, particularly USDT, as a key liquidity channel supporting Iran's shadow banking system. Licensed virtual asset service providers (VASP) in the Gulf Cooperation Council (GCC) region face heightened sanctions compliance pressure and need to enhance wallet ownership identification and counterparty assessment.Soham Jethani, a partner at the law firm Septten, stated that merchants settling crypto assets into local fiat currency do not necessarily avoid sanctions risks. Liability may involve designated entities, the provision of funds or economic resources, and asset handling within the transaction chain, potentially arising before the final settlement by banks. Jethani pointed out that the name of the stablecoin or the currency in which it is priced does not determine legal ownership; specific rights depend on contractual arrangements and actual payment processes.Globally circulating stablecoins may also pose secondary sanctions risks, as indirect or historical wallet associations do not automatically constitute violations and must be assessed in conjunction with applicable regulations, transaction participants, and specific facts. In regulated markets like the UAE, licensed exchange wallets are continuously monitored, and related funds can be frozen before consumption settlements, with merchants also required to complete KYC. Regulated VASPs handling deposits and withdrawals bear the responsibility for counterparty and sanctions risk assessment and corresponding controls.

The President of the International Monetary Fund (IMF), Kristalina Georgieva, stated that governments must urgently respond to the challenges posed by the imbalanced development of artificial intelligence, long-term energy shocks, and record levels of debt accumulation. She pointed out that the AI boom is driving inflation, and energy and food shocks will also push up inflation. Georgieva urged central banks in various countries to adopt a cautious hawkish stance.

The International Monetary Fund (IMF) pointed out in the "Global Financial Stability Report" that attention should be paid to the risks that hedge funds pose to macro-financial stability. The rapid growth of global hedge fund assets may amplify price misalignments and liquidity strains, leading to severe negative impacts or triggering systemic risks. The IMF recommends strengthening data collection and risk monitoring, as well as implementing prudent regulatory measures.

Aptos governance proposal #206 is currently voting, proposing to enable the ChunkyDKG V1 full mode and the encrypted_transactions feature. This mechanism will support encrypted transactions through distributed key generation, hiding their content before the transactions enter consensus ordering, and then collaboratively decrypting by validators, which helps reduce front-running and MEV risks.The proposal voting will end on October 6, and currently, the approval rate is close to 100%, but the voter turnout is only 2.69%, which has not yet reached the quorum requirement of 24.8%.

According to the Arbitrum Security Committee report, in response to the increasingly complex risks of AI-assisted attacks, Arbitrum took emergency action around 23:30 Beijing time on October 2 to temporarily halt the activation of new Stylus contracts on the Arbitrum One and Nova networks.This restriction mainly targets programs and application updates that require new activation, while already activated Stylus applications can continue to operate, and the deployment and execution of regular Solidity contracts are not affected. Arbitrum officials stated that this preventive measure stems from threats of WebAssembly program attacks targeting non-standard Stylus compiler toolchains, and no risk of fund theft has been discovered so far. The main concerns are on-chain activity and denial-of-service (DoS) attacks. Developers can still extend the lifecycle of existing programs through a permissionless keep-alive renewal mechanism, but they cannot activate expired programs or new version applications.

According to The Block, BitGo CEO Mike Belshe warned that the failure of the Clarity Act poses systemic risks to the U.S. market, as the same company simultaneously holds exchange, brokerage, and custody businesses.He stated that this structure presents risks that even Lehman Brothers did not face: a brokerage can go bankrupt, but if the exchange holding the custody assets goes bankrupt, it could collapse the entire market.

During an event at the White House, AI giants like Nvidia and Meta questioned Anthropic CEO Dario Amodei's radical statements on AI risks. Amodei responded that the industry needs to accurately describe the capabilities and potential risks of AI models.This discussion took place during a meeting between Trump and AI company executives, focusing on promoting industry self-regulation mechanisms.

According to the Financial Times, Nvidia (NVDA.O) is seeking help from insurance companies to diversify the risks associated with artificial intelligence development.

NVIDIA CEO Jensen Huang, Anthropic CEO Dario Amodei, and Palantir CEO Alex Karp will discuss AI risks with Trump and House Speaker Mike Johnson on Tuesday. OpenAI President Greg Brockman is expected to attend.The meeting comes at a time when AI safety risks are drawing attention, and Amodei and others have called for a slowdown in the development of AI technology. Congress may need to establish a regulatory framework for AI, but it is unlikely to pass relevant legislation in the short term.

Anthropic warned investors in its IPO prospectus that its artificial intelligence technology could pose existential risks to humanity. The company detailed risk factors in its S-1 filing, dedicating nearly one-third of the document to potential risks, including the possibility that AI models may exhibit manipulative, extortionate, and unpredictable behaviors.Anthropic is expected to land on Nasdaq this fall, potentially becoming one of the highest-valued IPOs in history.

X Platform post by Xu Jiayin stated that Bitget has commissioned a third-party security team to conduct an independent forensic investigation into this security incident. Multiple teams are working together to verify remedial measures, confirm the attack vector, and assist in law enforcement cooperation. The investigation results will be announced promptly.He stated that Bitget has sufficient protection funds to cover the related losses and will restore withdrawals as soon as all potential security risks are eliminated.

Bitget CEO Gracy Chen stated during a live broadcast regarding the platform's attack incident that some of the affected funds may have a chance of being recovered. Regarding the resumption of withdrawals, Gracy Chen mentioned that Bitget needs to first investigate the relevant issues thoroughly. The technical team is currently advancing system repairs and security enhancements. The platform will only reopen the withdrawal function after confirming the system's security and ensuring that resuming withdrawals will not lead to further attacks by hackers.She stated that once a clear time window for the resumption of withdrawals is established, users will be informed immediately and an announcement will be made. Currently, no specific time can be promised, as the platform does not wish to make commitments that cannot be fulfilled.

Bitget CEO Gracy Chen publicly stated in a live broadcast regarding the platform's attack incident that the platform is currently preparing to resume withdrawals, but there is no accurate timeline for recovery yet. Bitget's internal and external technical teams are synchronously identifying the issues and formulating solutions, hoping to restore relevant services as soon as possible.Gracy Chen mentioned that the method of attack in this theft incident is different from previous security incidents that occurred at some exchanges. According to the current investigation, the hackers did not implement the attack through key leakage, but rather bypassed certain systems and initiated withdrawals through the system. She stated that key leakage is the worst-case scenario, but this incident is not the same.Due to the involvement of multiple cryptocurrencies and blockchain networks in this incident, Bitget is temporarily unable to directly open withdrawals and needs to confirm that funds are completely safe and develop a more secure handling plan before resuming. Gracy Chen stated that the platform has currently completed comprehensive loss prevention and will not experience further attacks; once the security issues are addressed more definitively, withdrawals will be reopened.

The U.S. midterm elections have become a key concern for the stock market amid the surge in AI trading. Polls indicate that the Democratic Party may regain control of Congress, and Wall Street strategists point out that this could put pressure on AI boom stocks.The Chief Market Strategist at Zacks Investment says that if the Democrats perform strongly in the elections, hearings on AI safety issues may increase. A strategist at Wolfe Research expects that the Democrats may establish an "AI Special Committee" for inquiries.

As Japan ends its holiday, the risk of yen intervention has once again become the focus. The yen has fallen for two consecutive weeks, approaching the 160 mark. Strategists believe that the 160 mark will once again test Japan's tolerance for yen depreciation.Strategists at the Commonwealth Bank of Australia stated that if the USD/JPY breaks above 160, it will increase the likelihood of official intervention, especially considering that Japan has recently conducted a currency check.

According to Reuters, citing two informed sources, the Chinese artificial intelligence startup DeepSeek will report on AI risks to the United Nations Security Council this week. The Security Council, composed of 15 member countries, is scheduled to discuss AI and international security on Wednesday, coinciding with the gathering of world leaders in New York for the United Nations General Assembly.OpenAI CEO Sam Altman plans to report at the meeting, and diplomats expect a senior representative from Anthropic to also participate. DeepSeek and other Chinese AI companies, including Moonshot, have been invited to make statements. DeepSeek founder Liang Wenfeng does not plan to attend. DeepSeek and Moonshot have not yet responded to requests for comment.The UN Security Council first discussed AI risks in 2023. UN Secretary-General António Guterres warned last week that rapidly developing AI poses significant risks that cannot be ignored. Senior officials from China and the United States have agreed to hold further talks on AI safety.

On Friday, asset management company VanEck released a report on the compensation of executives at the top ten digital asset treasury companies, rating the compensation structure of the Japanese Bitcoin treasury company Metaplanet as "poor," making it the only company to fall into the lowest rating. The report shows that Metaplanet's equity plan corresponds to 14.7% of fully diluted shares, with executive risk exposure at 8.2%, which is ten times the average level of 0.8% for the other nine companies, and the scale of the equity plan is also nearly four times the industry average.In comparison, the largest corporate Bitcoin holder, Strategy, has an equity plan that accounts for only 2% of fully diluted shares, with executive risk exposure at 0.5%, and its compensation structure rated as "good." Metaplanet currently ranks third among publicly listed companies in Bitcoin holdings with 43,000 BTC. VanEck pointed out that the gap partly stems from Metaplanet's previous compensation mechanism: the option pool automatically expanded when the company issued shares to purchase Bitcoin, causing it to swell from 46 million shares to 319.5 million shares, adding approximately 273 million potential shares, which drew criticism from shareholders at the time.Metaplanet terminated the automatic adjustment mechanism at the end of August and reduced the option pool by 41% to 188.2 million shares in September, but VanEck believes these adjustments are still "far from satisfactory," calling for the retraction of the expansion of approximately 273 million shares in favor of a shareholder-approved compensation plan, while also suggesting that executive compensation be linked to the number of Bitcoins corresponding to each fully diluted share and adopting a written grant timing policy.

According to monitoring and analysis by the Gate security team, the FomoPeek App contains malicious code with a high security risk, which may exploit vulnerabilities related to the iOS system to attack other apps, and has dangerous operations such as accessing the clipboard, scanning sensitive data on the phone, and obtaining login credentials. After analysis by the security team, no attack losses caused by the FomoPeek App have been found in the Gate App or among users, and the existing risk control mechanisms of Gate are operating normally.Gate reminds users to upgrade their iOS system to the latest version as soon as possible and check whether the FomoPeek App is installed on their devices. If it is installed, please uninstall it immediately and restart the phone. After completing this, it is recommended to log back into the Gate App and other important applications; if using a Web3 wallet, it is advisable to check the wallet's security status in a timely manner and transfer relevant assets if necessary to reduce potential security risks.