Welcome to the protocol, Coindesk’s weekly wrapping of the most important stories in cryptocurrency tech development. I am Margaux Nijkerk, a reporter in Coindesk.
In this number:
- Swissborg’s Sol Earn Wallet utilized for $ 41.5 million. After Partn’s API is compromised
- Ledger CTO warns of NPM supply chain attacks that hit 1b+ downloads
- Backpack opens regulated eternal exchange in Europe after FTX EU acquisition
- Polygon POS sees transaction finality delay, in progress
Network news
Swissborg’s Sun Earn Wallet Utilized: Crypto Exchange Swissborg said about 192,600 sun ($ 41.5 million) was stolen from an external wallet used exclusively for its Sun Earn strategy. Utilization originated from a partner’s compromised application programming interface (API)A mechanism that allows software systems to communicate with each other affecting a single counterparty said the exchange in a post on X. It was not a hack of the Swissborg platform. The loss affected fewer than 1% of users and represented approx. 2% of Swissborg’s total assets, the company said. All other funds and strategies remain safe and user balances in the Swissborg app are not affected. Sol Earn redemptions pause while recovery efforts continue. Swissborg says it will cover any deficit, which does not ensure any user loss. The company works with white hathackers, security companies and law enforcement to recover the funds. A full incident report follows when the investigations are completed. This exploitation arrives in the midst of a sharp increase in cryptotory thefts with over $ 2.17 billion already stolen in 2025. – Shaurya Malwa Read more.
Ledger CTO warns of PNM attack: Charles Guillemet, Chief Technology Officer at Hardware Wallet Maker Ledger, warned of X that a large -scale supply chain attack was underway after a reputable developer’s knot packing manager (NPM) The account was compromised. According to the Guillemet, the malicious code – already pushed into packages of over 1 billion downloads – is designed to silently exchange crypto -teje book addresses in transactions. This means that unsuspecting users could send money directly to the striker without realizing it. The Guillemet did not name the developer whose account he said was compromised. The incident emphasizes how deeply interconnected open source software is and why security lapses in developer tools can clap into the crypto economy almost immediately. One day later, the Guillema shared that almost zero crypto users had been affected by the hack. “NPM is a tool that is often used in software development using JavaScript, making the integration of packages easy for developers,” Guillemet said in a message to Coindesk. When an attacker compromises a developer’s account, they can slip malicious code in widely used packages. “The malicious code tries to drain users by swapping addresses used in transaction or general activity on the chain and replacing them with the hacker’s address,” added the Guillem. – Margaux Nijkerk Read more.
Backpack EU goes live after FTX EU acquisition: Backpack Exchange, a global cryptocurrency -trading platform, said its European branch, Backpack EU, is officially live. Exchange of Cyprus and licensed under the European Union’s MiFID II framework, places the exchange itself as one of the first fully regulated venues in Europe to offer cryptoder rivatives starting with eternal futures. “As far as I know, it will just be us and the crack” in Europe that offers eternal futures, said Armani Ferrante, CEO of backpack, in an interview with Coindesk. The debut follows the backpack’s acquisition of FTX EU earlier this year. In January, the FTX contest said that the sale of FTX EU to backpack was not approved. Since then, the question has been resolved and in April the stock exchange began distributing funds to previous FTX EU customers, which fulfilled their promise to compensate users affected by the collapse of Sam Bankman-Fred’s Crypto Empire. Backpack EU gives users access to over 40 trading pairs with up to 10x leverage, the team said in a statement. The platform says it aims to give both retail and institutional dealers a compatible port to advanced crypto trading products. The rolling also highlights the backpack’s wider strategy for rebuilding trust in digital assets after a series of exchange errors. – Margaux Nijkerk Read more.
Polygon POS chain experiences finality delay: Polygon’s proof-of-stake chain is live, but transactions take longer than usual to lock in, with finality that runs 10-15 minutes according to plan. Finality is the insurance that a transaction or piece of data is irreversible once confirmed and added to a block in blockchain. The fund said in an X -submission that a solution has been identified and being rolled out to validators and service providers. The slowdown was tied to problems on some drill/erigon nodes and RPC providers, according to polygon’s status side. Node restarts solved the problem for many validators, while others had to rewind to the last completed block before they were synchronized, a status page shared. The disturbance comes weeks after Polygon’s Heimdall V2 upgrade promised 5-second finality through a modernized consensus stack. – – Shaurya Malwa Read more.
In other news
- World Liberty Financial (Wlfi)The Crypto Protocol attached to Donald Trump and his family, blacklisted Tron founder and key investor Justin Sun’s blockchain address and prevented him transferring WLFI tokens. The move affects 595 million unlocked WLFI tokens held at the address at a value of approx. $ 107 million at current prices, according to Arkham Data. The action followed the sunbed address that made several outgoing transactions of WLFI-tokens at Ethereum Blockchain-Inclusive worth a $ 9 million of tokens-display blockchain data. Sun, in a translated post of X, said that “The address only performed a few generic exchange deposits tests, with very low quantities and then created address spread without involving purchases or sales, which might not have any influence on the market.” In a later statement, the Sun called the WLFI team to eliminate blocking its tokens. – Sam Reynolds Read more.
- Decentralized Finance Protocol Ethena submitted a proposal to issue Hyperliquid’s upcoming stablecoin, where he joined a bidding competition that has already attracted companies including Paxos, Sky, Frx and Agora. The token would be fully backed by ethenas USDTB, a stableecoin issued with federally chartered bank anchorage digital and fully backed by buidl, the tokenized money market fund of asset management giant Blackrock and Securitize. If it was adopted, Ethhena promised that 95% of net revenue from USDH reserves would flow back to the hyperliquid ecosystem, the proposal says. Ethena also said it would cover the cost of migrating existing USDC trading pair at Hyperliquid to USDH to facilitate adoption. – Kristzian Sandor Read more.
Legislative and politics
- Nasdaq, the US exchange, where the tech sector’s biggest names show their stocks, are trying to put shares on blockchain and ask the US securities and exchange commission to bless its efforts, even then others in the securities world priority as the heritage method. The relocation of Nasdaq follows the efforts of Digital Mediation Robinhood to issue the warehouse to European customers in July, giving access to about 200 US shares and stocked funds (ETFS). Bringing stocks and other real-world assets on blockchain rails has been among the most sizzling of the digital world’s innovations, and competition has become fierce for both traditional financial names and crypto-native to make movements. – Jesse Hamilton Read more.
- President Donald Trump’s new crypto -guy, Patrick Witt, is picking up the baton of his predecessor, Bo Hines, from going to legislators to finish sweeping us cryptopoliks and pushing regulators to put the new stablecoin law into practice, he said in an interview with Coindesk. Works under the administration’s crypto -czar, David Sacks, Witt is the new contact point for Crypto Matters in the White House after the short period of his predecessor who continued to work for stableecoin Giant Tether. While Hines saw the conversion of Congress’s StableCoin efforts into law and was able to participate in the white house ceremony to cement it, he left shortly after, leaving a long crypto house list to Witt. “There is no episode here,” Witt, who was increased to the job last month, just two weeks after the administration issued its far -reaching strategy report to tackle the US Crypto Policy. “We hold the pedal to the metal with all the different initiatives on the legislative front and the interagency actions recommended in the report.” – Jesse Hamilton Read more.
Calendar
- 22-28. September: Korea Blockchain Week, Seoul
- 1-2 October: Token2049, Singapore
- 13-15 October: Digital Asset Summit, London
- 16.-17. October: European Blockchain Convention, Barcelona
- November 17-22: DevConnect, Buenos Aires
- 11-13. December: Solana Breakpoint, Abu Dhabi
- 10-12. February 2026: Consensus, Hong Kong
- 30 March-A-APR. 2: ETHCC, Cannes
- 5-7 May 2026: Consensus, Miami
