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A Manhattan federal judge on Friday modified a restraining notice that had barred Arbitrum DAO from moving 30,766 ETH (~$71 million) frozen after the April 18 Kelp DAO exploit.The judge cleared the way for an onchain governance vote to transfer the funds to a wallet controlled by Aave LLC.The order explicitly shields anyone who initiates, votes on, or participates in the transfer from being held in violation of the freeze.Aave agreed to be bound by the restraining notice as though it had been served directly, meaning the terrorism creditors’ claims on the funds survive the transfer.The court left the underlying dispute between exploit victims and North Korea terrorism judgment holders unresolved.

LayerZero published a blog post Friday apologizing for poor communication in the three weeks since the $292 million Kelp DAO exploit.LayerZero conceded it should not have allowed its DVN to act as a sole verifier for high-value transactions.The protocol attributed the attack to North Korea’s Lazarus Group, which it says compromised internal RPC nodes and DDoS’d external ones to forge a cross-chain message.LayerZero also disclosed a previously unreported incident from roughly three and a half years ago in which a multisig signer used their production hardware wallet to execute a personal trade.The company announced a series of security changes, including ending support for the 1/1 DVN configuration.

Morgan Stanley launched an E*Trade crypto pilot on May 6, charging 50 basis points per trade for Bitcoin, Ether, and Solana via infrastructure partner Zerohash.The 0.5% fee undercuts Charles Schwab at 75bps, Fidelity at 1%, and Coinbase retail fees that can exceed 0.5% depending on tier and payment method.All 8.6 million E*Trade clients are set to gain access later in 2026, alongside a proprietary digital wallet expected in the second half of the year.

Kalshi raised $1bn in a Series F round led by Coatue at a $22bn valuation, doubling the $11bn it achieved just five months ago.Institutional trading volume on the platform surged 800% in six months, while annualized trading volume tripled from $52bn to $178bn.Kalshi accounts for over 90% of US prediction market activity and reports $1.5bn in annualized revenue with two million monthly users.

Spot bitcoin and ETH ETFs both flipped to net outflows Thursday, ending a five-day inflow streak as Iran ceasefire doubts resurfaced and BTC pulled back below $80,000.April nonfarm payrolls came in at 115,000, nearly double, supporting a near-term risk-on read without resolving the macro ceiling driven by persistent energy inflation.

Oxford Internet Institute researchers tested five AI models and found that warmer-trained chatbots made between 10% and 30% more factual errors.Warmer chatbots were 40% more likely to agree with users’ false beliefs, especially when users expressed vulnerability or emotional distress.OpenAI has already rolled back some warmth-related changes following public concern, but commercial pressure to build engaging AI remains strong.

The S&P 500 has pushed to a new all‑time high near 7,400, up roughly 0.8% on the day, extending a powerful risk‑on rally in U.S. equities.Bitcoin and major crypto assets have increasingly traded as high‑beta plays on the same macro cycle, with BTC–S&P correlations hitting 0.7–0.9 in recent months.A record‑high stock market generally supports the bull case for crypto in the near term, but it also raises bubble and positioning risks if earnings or rate expectations slip.

European leaders are seriously considering a future in which the US no longer leads NATO, following disputes over the Iran war.Trump left NATO in the dark before launching strikes on Iran and then demanded alliance support to reopen the Strait of Hormuz.Analysts say Germany, France, the UK, and Poland are the most likely bloc to assume collective NATO leadership if the US retreats.

Coinbase, Kraken, and Gemini have asked Senate Agriculture Committee leaders to delete a clause that limits listings to tokens “not readily susceptible to manipulation.”The firms argue the standard would effectively shut small, low‑liquidity tokens out of regulated venues and hand future CFTC chairs a blunt tool to choke innovation.The language sits inside a sweeping market‑structure bill that would give the CFTC new authority over digital commodity spot markets, including bitcoin and ethereum.

Arbitrum DAO voted to release the frozen $70 million worth of ETH to the DeFi United initiative.However, a May 1 court order has restricted Arbitrum DAO from moving the recovered funds, stating they need to be distributed to creditors in past North Korea-related judgments.

Acting US Labor Secretary Sandlin has said the Federal Reserve “should consider lowering interest rates,” putting a senior Biden administration official on the side of earlier easing even as Fed leadership signals patience.The comments land against a backdrop of strong jobs and growth data that have already pushed market expectations for the first Fed cut into late 2026, weighing on bitcoin and other risk assets.For crypto, a credible political drumbeat for cuts could support medium‑term bullish narratives, but in the short term traders are still trading off Fed guidance and data that argue for rates staying at 3.5–3.75% longer.

Coinbase missed earnings, but one of its newest businesses is scaling incredibly fast—and Tom Lee may finally be slowing his Ethereum buying.

Arbitrum DAO voted to release the Kelp exploit funds, but a U.S. Court restraining notice has put the approved transfer in legal jeopardy.

Vitalik Buterin’s small XDB swap was sandwiched by JaredfromSubway, Ethereum’s notorious MEV trading bot.The bot used about $1.14 million in WETH but likely lost money after gas.The incident renewed attention on encrypted mempools as Ethereum developers seek stronger protection against MEV.

More than 90% of Arbitrum DAO voters backed the proposal to release $71 million in frozen ETH tied to the Kelp DAO exploit.The proposed recovery plan would move 30,765 ETH into a multisig wallet managed by Aave Labs, Kelp DAO, Certora, and EtherFi.

Chaos Labs said its oracle network was not compromised during a suspected nation-state cyberattack.The company rotated all operational keys after triggering its highest severity incident response over the weekend.