‍DeepNode Secures $5M for Decentralized AI Network Startup DeepNode has raised $5 million to accelerate the development and mainnet launch of its decentralized AI platform. The funding includes a $2 million community-driven seed round and a $3 million strategic round from Web3 and AI investors. DeepNode's "open intelligence" network utilizes a multi-tool approach for diverse AI tasks and a novel Proof-of-Work Relevance (PoWR) consensus mechanism on the Ethereum Layer-2 network Base. The mainnet is planned for launch by the end of Q1 2026.
‍Italy Strengthens Crypto Risk Scrutiny Amid Global Regulatory Gaps Italy has launched a "deep review" into retail investor exposure to digital assets. This initiative by Italian regulators highlights a broader European effort to enhance oversight in the crypto market, aiming to protect investors and ensure financial stability. The Bank of Italy previously warned that increasing digital asset integration could pose systemic financial risks due to interconnections and international regulatory fragmentation. This review seeks to assess existing safeguards for crypto investments made by retail investors. Ruchir Gupta of Gyld Finance noted that diverging crypto regulations create risks, pushing high-risk activities into weakly supervised areas. He anticipates "meaningful convergence by 2026." Europe is entering a phase of more aggressive supervision over fintech and crypto, with Italy's review marking a "key escalation" alongside the EU's MiCA regulation. This includes tighter licensing, capital rules, and AML guidance, aiming to provide regulatory certainty and a competitive edge for compliant firms.
‍Anthropic Unveils AI Interviewer for Talent Acquisition AI firm Anthropic has launched a public pilot for its new tool, "Anthropic Interviewer," designed to streamline the hiring process. The AI can generate interview questions based on defined objectives, facilitate collaborative interviewing, and analyze data. Initial trials with 1,250 professionals showed varying views: many prefer delegating routine tasks to AI, while some creatives worry about job security. Scientists, however, see AI as a valuable research partner. This innovation holds significant implications for the Web3 sector, potentially improving talent acquisition for DAOs, DeFi, and NFT platforms with globally distributed workforces.
‍USPD Stablecoin Protocol Suffers $1 Million Loss from 'CPIMP' Attack The USPD stablecoin protocol experienced a significant security breach, resulting in the illicit minting of approximately 98 million USPD tokens and the draining of roughly 232 stETH, leading to total losses estimated at $1 million. The attack, identified as "CPIMP" (Canonical Proxy Initialization Manipulation Prevention), exploited a vulnerability during protocol deployment, granting attackers illegitimate administrator privileges. USPD officials confirmed the exploit was due to manipulation of proxy configuration, not a direct flaw in the core smart contract. The protocol strongly advises users to immediately revoke all token approvals associated with USPD contracts.
‍21Shares Co-founder: Bitcoin unlikely to replicate January 2025 surge Ophelia Snyder of 21Shares expressed skepticism that Bitcoin can repeat its early 2025 price surge in January 2026. Current market volatility and low positive sentiment are key concerns. While Bitcoin hit $109,000 in January 2025 and an all-time high of $125,100 in October, a $19 billion crypto liquidation event led to a cautious outlook. Bitcoin is currently trading around $92,150. Potential catalysts include ETF expansion, government adoption, and demand for value stores. However, a sustained "risk-off" sentiment could hinder performance. Despite this, some analysts remain optimistic for new all-time highs by January 2026.
‍EU Launches Antitrust Probe into Meta's WhatsApp AI Policy The European Commission has initiated a formal antitrust investigation into Meta's updated AI policy for WhatsApp. The probe focuses on whether Meta is abusing its dominant position by restricting third-party AI providers from integrating chatbot services on the platform, potentially favoring its own AI offerings. The investigation stems from Meta's updated WhatsApp Business Solution Terms, which prohibit AI companies from using the business API if AI is their primary service. This policy could prevent third-party AI providers from operating in the European Economic Area. If Meta's actions are found to have exclusionary effects, they could violate EU antitrust laws prohibiting abuse of dominant market positions. The probe excludes Italy, where a separate investigation is underway. This signals the EU's commitment to ensuring fair competition in the digital AI landscape.
‍US Contractors Delete 96 Government Databases, Seek AI Cover-Up Advice Two former US contractors allegedly deleted 96 government databases and then consulted an AI chatbot for advice on concealing their actions. The incident highlights critical vulnerabilities in data integrity and the challenges of securing sensitive information in an AI-integrated world. The brothers are accused of altering system permissions and initiating the deletion of databases containing investigation and FOIA records. This marks a concerning misuse of AI, following a previous hacking conviction for the pair. The breach underscores the importance of immutable systems, a core principle of blockchain technology.
‍Precious Metals Outshine Bitcoin Amidst Fed Policy Error Fears Gold and silver are significantly outperforming Bitcoin, with year-to-date returns of 60% and 86% respectively. This "flight to safety" is driven by concerns over potential U.S. Federal Reserve policy missteps, particularly sustained inflation above the 2% target. Bitcoin, currently in a "mid-cycle repair" phase after an October liquidation shock, has seen a -1.2% YTD performance. On-chain data suggests short-term holder capitulation. Analysts anticipate this disconnect will be temporary, with Bitcoin expected to realign with global liquidity and equity markets once its order books fully recover.
‍Former Signature Bank Executives Launch N3XT, Pioneering 24/7 Blockchain Payments A group of former Signature Bank executives has launched N3XT, a new blockchain-powered, state-chartered bank. Operating under a Wyoming SPDI charter, N3XT aims to provide instant, 24/7 payment settlements via a private blockchain, leveraging smart contracts for programmable payments. The institution will not offer lending services, with reserves backed one-to-one by cash or U.S. Treasurys, and daily disclosure of holdings. Key investors include Winklevoss Capital, Paradigm, and HACK VC.
‍OpenAI Ordered to Release 20 Million ChatGPT Logs in Copyright Dispute A federal magistrate judge has ordered OpenAI to provide approximately 20 million de-identified ChatGPT user logs to The New York Times as part of an ongoing legal battle over AI copyright. The court rejected OpenAI's privacy objections, citing the logs' relevance to assessing potential copyright infringement of the Times' material. This ruling sets a significant precedent for transparency in AI development and data governance, influencing how AI firms source data and manage intellectual property. The case underscores the growing importance of data provenance and digital ownership solutions for the crypto community.