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In an alert shared by Project 0 (P0) founder MacBrennan Peet, the executive committed to fully refund confirmed losses after attackers infiltrated its system to redirect user visits to its website to a crypto-stealing site. The post by MacBrennan confirmed that at least one user lost $1,000 when they tried the new site “out of curiosity.” The security incident targeting Project 0 compounds record numbers of crypto thefts by bad actors exploiting the Fusaka upgrade that was supposed to make transaction fees an afterthought for Ethereum network users, adding to a pattern of attacks targeting liquidity-rich venues. Project 0 reports the latest DeFi domain hijack According to the disclosure by MacBrennan , attackers gained access to the GitHub account of an application team member, which allowed them to redirect user visits between 9:45 PM and 10:19 PM. Although he did not specify his timezone, users who tried to visit Project 0’s website within the 40-minute attack window were directed to another website that led to the loss of at least $1,000. Per Defillama data, Project 0, a DeFi-native prime brokerage that lets users borrow against their entire DeFi portfolio across multiple venues, currently holds almost $90 million in total value locked (TVL), peaking above $110 million since tracking began in late 2025. The project also claims backing by Multicoin, Pantera and Solana Ventures. The $89 million locked in Project 0’s DeFi ecosystem was unaffected by the exploit. Source: Defillama That level of activity and status, while attractive to users, is also a beacon for attackers looking for high-value targets. Cryptopolitan reported that OpenEden and BonkFun endured similar attacks when attackers compromised domains registered to the projects. In both cases, the attack did not affect project vaults or users’ positions, as the damage in these kinds of attacks is typically limited to website visitors during the exploit window, which is usually quickly mitigated by responsive teams. While the exact amount lost is still unconfirmed, MacBrennan has committed to extending refund relief to any other verified customer losses during the attack. Ethereum users become targets of address poisoning attacks When Ethereum developers pushed through the Fusaka upgrade in December 2025, they touted the upgrade as the “final boss” in making mainnet transactions affordable. What they did not see coming was that it would become the final puzzle piece for attackers stalking high-value targets in the liquidity-rich Ethereum ecosystem, which holds almost $60 billion across DeFi protocols and over $160 billion in stablecoin market cap. The official Etherscan account on X called out the growing menace in its “Address Poisoning Attacks Are Rising on Ethereum” article. The report cited a 2025 study comparing poisoning attempts before and after the Fusaka upgrade to highlight the proliferation of these attacks since the December upgrade. Dust transfers, which are small deposits (below $0.01) meant to replace addresses in users’ transaction history with wallets controlled by the attackers, followed the trend as transaction activity on the Ethereum mainnet increased about 30% across the board in the 90 days following the Fusaka upgrade, with an accompanyong 78% increase in new address creations. Asset Pre-Fusaka Post-Fusaka Increase % USDT 4.2M 29.9M 612% USDC 2.6M 14.9M 473% DAI 142K 811K 470% ETH 104M 170M 62% Table comparing the rate of address poisoning attacks before and after the Fusaka upgrade. It’s a numbers game Cryptopoitan has reported several high-profile losses to the new bane of Ethereum users, with the $50 million loss from December creating the biggest headline. Apparently, the victim in the incident actually sent $50 in a test transaction to be sure they had the correct address. However, in the time it took to test the address and initiate the actual $50 million transfer, bad actors had punctuated the sender’s transaction history with their own dust transfers, which ultimately led to the loss. That incident highlights the scale and speed of these operations, as attackers actually compete to out-poison potential victims’ addresses. As Etherscan highlighted, “just two stablecoin transfers” by a user of its service triggered “more than 89 address watch alert emails.” Only about 1 in 10,000 attempts are successful, but when one compares the $79 million in confirmed losses across 17 million attempts targeting about 1.3 million users, the math adds up for these attackers, who incur less than $1 on each attempt. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

BitcoinWorld Sky Buybacks Slashed 87% in Critical Move to Fortify Stablecoin Reserves In a decisive response to global financial uncertainty, the Sky (SKY) decentralized autonomous organization, formerly known as MakerDAO, has enacted a dramatic 87% reduction in its daily token buyback program. This strategic pivot, confirmed by governance vote on April 15, 2025, shifts resources from buybacks directly to bolstering the capital backing its flagship stablecoins, USDS and DAI. The move underscores a heightened focus on risk management within the decentralized finance (DeFi) sector as external pressures mount. Sky Buybacks Reduced to Fortify Core Reserves The community governing the Sky protocol has formally approved a proposal to reduce daily buybacks from $300,000 to just $37,600. Consequently, this measure will remain in effect for a minimum of three months. Governance participants ratified the plan following a detailed presentation of the underlying financial metrics. The primary objective is to increase the backstop capital, which acts as a defensive buffer for stablecoin price stability. Sky founder Rune Christensen cited the ongoing geopolitical conflict involving Iran as a key precautionary motivator. In a statement on the social media platform X, Christensen emphasized that the protocol’s paramount duty is to ensure the absolute stability of its dollar-pegged assets. Therefore, resources must be allocated to where they provide the most robust defense. This governance action directly channels capital that would have been used for buybacks into reserve accounts. Analyzing the Stablecoin Supply Surge and Reserve Gap The decision arrives amid significant growth for Sky’s stablecoin offerings. Over the preceding 30-day period, the supply of USDS expanded by more than 22%, reaching a circulating supply of approximately $7.9 billion. Simultaneously, the supply of the longer-established DAI stablecoin grew by about 2% to $4.5 billion. This combined supply places immense responsibility on the protocol’s stability mechanisms. However, the available backstop capital designated to defend the pegs of these tokens has remained static at around $50 million. This creates a shrinking ratio of reserves to circulating stablecoins, a critical metric for risk assessment. The following table illustrates the changing dynamics: Stablecoin 30-Day Supply Change Current Supply Portion of Backstop Capital USDS +22% ~$7.9B Primary Focus DAI +2% ~$4.5B Shared Reserve Total +~14% ~$12.4B ~$50M This widening gap between liability (stablecoin supply) and defensive assets (backstop capital) presented a clear vulnerability. The governance community evidently prioritized closing this gap over continuing an aggressive buyback schedule. The Geopolitical Risk Calculus in DeFi Christensen’s reference to the Iran conflict highlights a mature evolution in DeFi governance. Historically, decentralized protocols operated with a primary focus on internal tokenomics and market incentives. Now, leading DAOs like Sky explicitly factor in macro-geopolitical events into their treasury management. Analysts note that regional conflicts can trigger volatility in traditional markets, potentially leading to correlated sell-offs in crypto assets and increased redemption pressure on stablecoins. A robust reserve acts as a circuit breaker during such events. It allows the protocol to honor large-scale redemptions without needing to liquidate collateral assets at distressed prices. This mechanism prevents a negative feedback loop that could destabilize the peg. By proactively strengthening reserves, Sky aims to insulate its system from external shocks that are beyond its control. Historical Context: From MakerDAO to Sky This action continues the strategic journey of the protocol since its rebranding from MakerDAO to Sky. The rebrand signaled a shift toward a broader, multi-chain vision beyond the original Ethereum-based DAI. The launch of USDS, a native stablecoin on the Solana blockchain, represents a core part of this expansion strategy. Its rapid growth to nearly $8 billion in supply validates the demand but also introduces new management complexities. The protocol’s buyback program was originally instituted as a method to return value to SKY token holders and manage token supply. Reducing it represents a recalibration of priorities, placing systemic security above short-term token holder incentives. This trade-off is a classic example of decentralized governance balancing competing interests for the long-term health of the ecosystem. Market Reaction and Expert Commentary Initial market reaction to the announcement was measured. The price of SKY experienced minor volatility, while the pegs of USDS and DAI remained firmly at $1.00. This stability suggests market participants view the move as prudent rather than alarming. Experts in decentralized finance governance have largely praised the decision for its proactive and conservative nature. “This is a textbook example of responsible DeFi risk management,” noted a researcher from a major blockchain analytics firm. “When stablecoin supply grows rapidly, the imperative shifts from rewarding stakeholders to fortifying the foundation. Sky’s governance has correctly identified that the highest priority is maintaining absolute confidence in USDS and DAI. Everything else, including buybacks, is secondary to that mission.” The move also sets a potential precedent for other stablecoin issuers in the space. It publicly acknowledges that liquidity reserves are a non-negotiable component of stability, especially during periods of global tension. Other DAOs may now face pressure from their communities to conduct similar stress tests on their reserve adequacy. Conclusion The 87% reduction in Sky buybacks marks a significant strategic inflection point for one of DeFi’s most prominent organizations. By reallocating capital from token repurchases to its stablecoin reserve buffer, the Sky community has prioritized systemic security and peg stability above all else. This decision, driven by both rapid USDS growth and external geopolitical risks, reflects a maturing approach to decentralized governance. The three-month timeframe provides a window to assess the effectiveness of the bolstered reserves and determine the future of the buyback program. Ultimately, the success of this maneuver will be measured by the unwavering stability of USDS and DAI through potential market turbulence, proving that foresight in reserve management is the true bedrock of trust in decentralized finance. FAQs Q1: What exactly are Sky buybacks and why are they being cut? A1: Sky buybacks refer to the protocol using its revenue to purchase its own SKY tokens from the open market. The program is being cut by 87% to redirect approximately $262,400 per day into a reserve fund. This fund directly supports the price stability of its USDS and DAI stablecoins, which is currently the higher priority. Q2: How does increasing reserves protect stablecoin prices? A2: The reserves, or backstop capital, act as a dedicated liquidity pool. If many users decide to redeem their stablecoins for underlying assets at once, this pool ensures the protocol can fulfill all requests immediately without selling other assets at a loss. This prevents a “bank run” scenario that could break the stablecoin’s $1 peg. Q3: Is the reduction in buybacks permanent? A3: No, the current governance proposal specifies the 87% reduction will be in effect for three months. After this period, the Sky community will review the state of the reserves, stablecoin growth, and market conditions to vote on whether to extend, modify, or end the measure. Q4: What is the difference between USDS and DAI? A4: DAI is the original, Ethereum-based stablecoin launched by MakerDAO. USDS is a newer, native stablecoin launched by Sky (the rebranded entity) primarily on the Solana blockchain. Both are algorithmic stablecoins pegged to the US dollar, but they operate on different technical infrastructures and have seen different growth trajectories recently. Q5: Does this move suggest Sky is in financial trouble? A5: Analysts interpret the move as the opposite—a sign of proactive financial management. The protocol is taking a precautionary step to strengthen its defenses before any trouble arises, due to the rapid growth of its stablecoins and external risks. It is a voluntary, governance-approved action to de-risk the system, not a reaction to insolvency. This post Sky Buybacks Slashed 87% in Critical Move to Fortify Stablecoin Reserves first appeared on BitcoinWorld .

Bybit appointed Derek Dai as country manager for MENA, seeking to strengthen its position in the UAE amid heightened geopolitical tensions. Co-CEO Helen Liu stated that the company will deepen its presence in the Gulf, in contrast to other firms that are scaling back their servic...

DUBAI, UAE, March 9, 2026 /PRNewswire/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, today announced the appointment of Derek Dai as Country Manager for the Middle East and North Africa (MENA), reinforcing the company's long-term commitment to th...

Cryptocurrencies, especially stablecoins, are establishing themselves as a major channel for digital fundraising. According to data from The Giving Block, more and more charitable organizations are using these assets to attract influential donors and fund their missions on a larg...

Crypto holder Sillutina reported a large-scale theft of crypto from his personal wallets following a physical attack. The incident did not use the usual exploits, but revealed the growing danger for known crypto owners. Crypto holder Sillutuna lost over $24M in stablecoins following a physical attack and threats. The funds were diverted from personal wallets and may be laundered soon. The attack is part of an earlier trend where crypto holders are directly targeted, either for their public KOL identities or through other means of gathering information. Crypto holder and trader Sillytuna has been involved in DeFi and has mainly lost AUSD on Aave. Other researchers and trackers were alerted, in addition to law enforcement. $24 million dollar theft of AUSD from 0x6fe0fab2164d8e0d03ad6a628e2af78624060322 Involved violence, weapons, kidnapp and rape threats. Obvs police involved. Please pass on to all those who trace such things. And now… definitely out of crypto. ****ers. Still have limbs,… — Sillytuna (@sillytuna) March 4, 2026 The crypto community and investigators are still making calls to freeze funds where possible, even if they are redirected through decentralized protocols. The theft came just as crypto exploits fell to a one-year low in February, taking away just $37.7M for the entire month. At this point, personal wallet thefts may be more efficient in comparison to attacking niche smart contracts. On-chain researchers seek to intercept theft Hours after the theft, around $20M DAI were stored in two Ethereum addresses. DAI is widely used as a token that can be easily mixed through Tornado Cash. Soon after the exploit, the destination wallets started moving funds, splitting the available BTC in multiple addresses. While protocols can blacklist some wallets, some DeFi app teams do not respond to such calls, leaving exploiters to launder funds. Another $1.1M in BTC is sitting in a single address. The exploiter also used the Wagyu bridge to move funds to Arbitrum. Calls have been made to Hyperliquid to freeze funds from blacklisted addresses, so far with an unknown outcome. So far, only the creator of the Wagyu bridge has responded , stating the bridge will never freeze funds, but can blacklist addresses similar to Railgun. This time, the exploiters have not followed the usual script of quickly swapping or moving funds. Only a limited amount of funds went through Wagyu before the transactions stopped. Most of the DAI stolen still sits in the initial known addresses . Unlike DPRK exploits, the funds may be laundered more slowly over time. In general, DAI has never been frozen or censored, although it’s not accepted by centralized exchanges. Once again, DeFi and on-chain swaps may be a way to launder and partially disguise the funds. Sillytuna offers 10% bounty to return funds Sillytuna has offered a 10% reward for any returned funds, even from the exploiters themselves. Researchers are also trying to distribute the addresses to multiple protocols in a bid to intercept funds. For now, Sillytuna has not spoken of the identities of the thieves, mostly focusing on blockchain data to track the funds. Other investigators noted that the destination addresses were linked to a known scammer wallet. The original wallet , with its special address starting with 0xbeef, has been known in previous exploits, rug pulls, and malicious contract deployments. The individual case showed that the crypto community had significant skill in tracking funds on an ad hoc basis, but could become overwhelmed in intercepting all transactions. There were also no clear rules on blacklisting and freezing funds, as all protocols operated on different rules. The smartest crypto minds already read our newsletter. Want in? Join them .

MoonPay and M0 introduce a new framework backed by PayPal.

BitcoinWorld Mortgage Tokenization Breakthrough: Framework Ventures and Better Launch Ambitious $500M Sky Ecosystem Project In a landmark move for decentralized finance, crypto venture firm Framework Ventures and mortgage service leader Better have announced a strategic partnership to tokenize $500 million in real estate mortgages, directly integrating them into the Sky stablecoin ecosystem. This ambitious project, revealed in early 2025, represents one of the most significant attempts to bridge traditional finance with blockchain technology, aiming to supply substantial credit and create novel yield-bearing assets. The collaboration signals a major evolution for the Sky ecosystem, formerly known as MakerDAO, as it expands its collateral base into the massive U.S. residential mortgage market. The $500 Million Mortgage Tokenization Project Explained Framework Ventures and Better plan to supply half a billion dollars in credit to the Sky ecosystem through this initiative. Essentially, they will convert pools of conforming residential mortgages into digital tokens on a blockchain. Consequently, these tokenized mortgages will serve as collateral within the Sky protocol, which mints the decentralized stablecoin DAI. This process unlocks liquidity from traditionally illiquid real estate assets. Moreover, the project includes issuing specialized yield-bearing tokens linked directly to the underlying mortgage payments. Therefore, investors can gain exposure to real estate debt returns without directly owning property. The technical architecture likely involves creating a legal entity to hold the mortgage notes. Subsequently, this entity issues digital tokens representing ownership interests. Smart contracts on the blockchain will then manage the flow of principal and interest payments from homeowners to token holders. This structure must navigate complex regulatory frameworks, including securities laws and real estate regulations. The partners have engaged with legal experts to ensure compliance, a critical step for mainstream adoption. Key Components of the Tokenization Framework Collateralization: Tokenized mortgages back new DAI stablecoin issuance. Yield Generation: Separate tokens distribute interest payments to investors. Risk Tranches: Tokens may be structured with varying risk-return profiles. Automated Compliance: Smart contracts enforce regulatory and loan covenants. Strategic Implications for the Sky and MakerDAO Ecosystem This partnership marks a pivotal moment for the Sky ecosystem’s growth strategy. Historically, MakerDAO’s collateral portfolio included cryptocurrencies like Ethereum and real-world assets such as treasury bills. However, introducing U.S. residential mortgages diversifies its collateral base into a multi-trillion dollar market. This diversification enhances the system’s stability by reducing correlation with crypto market volatility. Furthermore, it provides a new, substantial source of yield for the protocol, potentially making DAI more competitive with traditional savings products. The involvement of Better, a licensed mortgage originator and servicer, brings crucial real-world expertise. Better handles the origination, underwriting, and servicing of the mortgages, ensuring professional management of the underlying assets. Framework Ventures contributes deep crypto-economic design knowledge and DeFi integration experience. Together, they address the two-sided challenge of real estate finance and blockchain execution. This model could become a blueprint for future real-world asset (RWA) tokenization projects. Project Impact on Sky Ecosystem Metrics (Projected) Metric Before Initiative After Full Deployment Total Value Locked (TVL) in RWA ~$3B ~$3.5B+ DAI Supply Backed by RWA ~40% ~50%+ Annual Protocol Revenue from RWA ~$150M ~$200M+ Collateral Diversity Score Medium High Broader Context: The Rise of Real-World Asset Tokenization The Framework-Better venture arrives amid a surge in real-world asset tokenization across finance. Major institutions like BlackRock and JPMorgan are exploring similar concepts. Tokenization promises increased liquidity, fractional ownership, automated compliance, and 24/7 settlement. The global real estate market, valued at over $300 trillion, presents a prime target for this innovation. However, previous attempts have faced hurdles around legal clarity, custody, and market acceptance. This project distinguishes itself through its scale and direct integration with a major DeFi protocol. The $500 million target is notably larger than most pilot programs. Additionally, linking directly to DAI creation creates immediate utility for the tokens. Success could catalyze further institutional capital flows into decentralized finance. Conversely, challenges include interest rate risk, prepayment risk, and maintaining regulatory alignment as laws evolve. The partners have structured a multi-phase rollout to mitigate these risks, beginning with a smaller pilot before scaling to the full amount. Expert Analysis on Market Impact Industry analysts highlight the project’s potential to lower borrowing costs for homeowners. By creating a more efficient capital market for mortgages, savings could be passed to consumers. However, they also caution about smart contract risk and the need for robust oracle systems to report loan performance accurately. The success of this model depends heavily on the long-term performance of the mortgage assets, especially in varying economic conditions. Historical data from Better’s loan portfolio will be scrutinized for its default rates and credit quality. Regulatory Landscape and Compliance Considerations Navigating the U.S. regulatory environment is paramount for this project. Tokenized mortgages likely qualify as securities under the Howey Test, requiring registration or an exemption. The partners are reportedly working under existing frameworks for private placements. Furthermore, each token must represent a valid legal claim to the underlying mortgage cash flows. This requires precise legal structuring and potentially the use of special purpose vehicles (SPVs). State-level mortgage servicing laws also add complexity, as foreclosure processes and borrower rights vary across jurisdictions. The project engages with regulators through established channels. Better, as a licensed entity, already operates within strict federal and state guidelines. Extending this compliance to the blockchain layer involves novel approaches, such as embedding regulatory rules into smart contract code. This “compliance by design” approach could set a new standard for the industry. The partners have allocated significant resources to legal and compliance teams, understanding that regulatory missteps could jeopardize the entire initiative. Conclusion The collaboration between Framework Ventures and Better on a $500 million mortgage tokenization project represents a bold step toward merging traditional finance with decentralized protocols. By bringing real estate debt into the Sky ecosystem, they aim to enhance stability, generate yield, and demonstrate a scalable model for real-world asset integration. This initiative’s success could redefine how capital flows through the housing market and accelerate the broader adoption of blockchain in mainstream finance. The focus on mortgage tokenization, therefore, is not just a technical experiment but a potential paradigm shift for both real estate and decentralized finance. FAQs Q1: What is mortgage tokenization? Mortgage tokenization is the process of converting rights to a mortgage’s cash flows into a digital token on a blockchain. This allows the mortgage to be traded, used as collateral, or owned fractionally, increasing its liquidity and accessibility. Q2: How does this project benefit the Sky (MakerDAO) ecosystem? It provides $500 million in new, high-quality collateral from the real estate market, diversifying the assets backing the DAI stablecoin. This reduces systemic risk and generates yield for the protocol, potentially strengthening DAI’s peg and sustainability. Q3: What are the risks for investors in the yield-bearing tokens? Primary risks include borrower default (credit risk), changes in interest rates (interest rate risk), homeowners paying off loans early (prepayment risk), and potential smart contract vulnerabilities or regulatory changes affecting the token’s structure. Q4: Is this the first attempt to tokenize real estate on blockchain? No, several smaller pilots and platforms have explored real estate tokenization. However, this project is notable for its large scale, involvement of a major mortgage originator (Better), and direct integration with a leading DeFi stablecoin ecosystem like Sky. Q5: How will homeowners be affected by this tokenization? Homeowners with mortgages included in the program should see no direct change in their loan terms, servicing, or lender relationship. Better will continue to service the loans. The potential long-term benefit could be a more efficient mortgage market leading to lower rates, but this is not guaranteed for existing loans. This post Mortgage Tokenization Breakthrough: Framework Ventures and Better Launch Ambitious $500M Sky Ecosystem Project first appeared on BitcoinWorld .

In January, address poisoning attack caused 12.2M$ loss, signature phishing increased 207%. Ethereum dust transactions tripled after Fusaka. DAI is being used as an illegal parking spot. Technical:...