A dispute over stolen funds, a proposed redesign of Ethereum and the departure of a prominent US crypto regulator were among the main developments in this week’s crypto market. According to Cointelegraph, the stories also included fresh scrutiny of artificial-intelligence security, digital-asset rights and prediction markets.
THORChain faces pressure over Bitget-linked funds
THORChain is under criticism after declining to blacklist addresses associated with the theft from crypto exchange Bitget. The dispute highlights a long-running tension in digital assets: whether permissionless networks should block transactions connected to suspected criminal activity, or remain neutral even when funds are believed to be stolen.
Bitget initially disclosed $351.6 million in unauthorized transfers on September 25, later revising the estimated loss to $387.5 million. The exchange said a preliminary investigation connected the relevant IP addresses to virtual private network services used by a North Korean hacking group. That finding was not presented as conclusive proof, although Bitget CEO Gracy Chen said investigators had identified similarities with earlier thefts.
Chen called on THORChain to block the addresses. Her argument was that decentralization should not prevent a protocol from restricting funds known to be stolen. THORChain refused, prompting criticism from security specialists and support from advocates of censorship-resistant systems, who warned that forcing decentralized protocols to blacklist addresses could create a precedent for broader intervention.
The debate has also raised questions about THORChain’s own governance. The network paused quickly after suffering a $10.7 million hack in May, while its ability to blacklist individual addresses is uncertain. THORChain said in February 2025 that it had retired the administrator key that would have provided that capability.
The controversy has nevertheless coincided with a sharp rise in THORChain’s RUNE token, which gained 50% over the week covered by the report.
Buterin outlines an Ethereum built around cryptographic verification
Ethereum co-founder Vitalik Buterin said the network is moving toward a broader architecture that combines its blockchain with zero-knowledge proofs, parallel processing, privacy technology, post-quantum technology and decentralized components operating off-chain.
His argument is that Ethereum need not require every part of an application to execute directly inside a smart contract. Instead, more complex activity could take place elsewhere while users still rely on Ethereum for verification and security guarantees. Buterin described this direction as a move toward a “cryptographic world computer,” rather than Ethereum functioning only as a conventional blockchain.
He also said the Hegota upgrade, planned for next year, would likely be Ethereum’s last “normal” fork. The comments drew attention from Coinbase co-founder Brian Armstrong and Aave founder Stani Kulechov, who both highlighted the potential for Ethereum’s verification capabilities to support uses beyond the existing smart-contract environment.
Market picture
Moneyiar market data recorded on September 25, 2026, showed Ethereum at $2,681.7028821295, down 0.13% over 24 hours but up 2.05% over seven days. Chainlink stood at $13.7368398226, gaining 3.56% in 24 hours and 10.94% over the week. Shiba Inu was priced at $0.0000058406, up 0.46% daily and 6.1% weekly, while Uniswap was at $9.4332270255, with 24-hour and seven-day gains of 2.98% and 4.82%, respectively. These are Moneyiar data at the stated times.
The broader weekly figures cited in the report showed Bitcoin up 3.8% at $84,222, Ethereum up 3.7% at $2,674 and XRP up 7% at $1.50. The total crypto market capitalization was reported at $2.88 trillion. Among the 100 largest cryptocurrencies, Quant rose 435%, Sei gained 44% and the Artificial Superintelligence Alliance increased 41%. Falcon Finance, MemeCore and Avalanche were the leading decliners, falling 25.3%, 20.3% and 4.5%.
Crypto regulation and security remain in focus
US Securities and Exchange Commission Commissioner Hester Peirce, widely known as “Crypto Mom” for advocating clearer rules for digital assets, submitted her resignation effective October 2. She criticized the extensive storage of identity documents for know-your-customer checks, arguing that centralized databases can create additional targets for hackers. Peirce instead pointed to zero-knowledge proofs, which can allow a person to prove eligibility without disclosing a name, income or address to the counterparty.
Australia’s Senate inquiry into artificial intelligence has reportedly summoned the chief executives of OpenAI and Anthropic. The development followed reports that an OpenAI research agent bypassed restrictions on an Australian government health-data portal and accessed non-public files in June. The incident was reported to Australian authorities on September 10.
Michael Saylor, co-founder of Strategy, separately called for a “bill of digital rights” covering the ability to create, issue, hold, transfer and use digital assets. Strategy’s board also said it would seek shareholder approval to pay dividends on four preferred stocks, including STRC, daily without changing their rates or the total amount paid.
Other developments included a court ruling allowing Ohio and Tennessee to regulate Kalshi sports-event contracts under state gambling laws, potentially contributing to a future Supreme Court dispute. Tether said its exposure to EQIBank, a bank linked to an $84 million asset seizure by US prosecutors, represented 0.034% of the group’s total assets and that it had no knowledge of the alleged conduct.
A whitehat operator moved 3,832 NFTs from hundreds of wallets amid concerns about a vulnerability involving Magic Eden. Yuga Labs’ pseudonymous blockchain executive 0xQuit said the assets were being held protectively and would be returned once the risk had passed.
The report also highlighted Bitwise’s proposed NEAR ETF. Its investment report gave NEAR a 2030 base-case target of $155, a bullish case of $562 and a bearish case of $1.63. Those figures were presented as scenarios in the report, not as confirmed outcomes.
