Crypto faces ETF outflows and security risks while AI adoption accelerates, raising concerns over trust, misuse, and control across systems and markets.
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In crypto, capital outflows and operational risks are converging. Bitcoin ETFs have recorded a near $3 billion outflow streak, reflecting sustained institutional caution, while incidents such as the $5.4 million Gravity Bridge hack and repeated Sui network outages highlight ongoing infrastructure vulnerabilities. At the same time, actions like Circle freezing $12.6 million in USDC underscore the growing tension between decentralisation and centralised control.
In AI, rapid growth is being matched by rising concerns around trust and misuse. A bank data breach linked to unauthorised AI usage and widespread media deception from AI-generated images highlight operational risks. At the same time, significant capital inflows into firms like Anthropic and infrastructure upgrades from companies such as Google indicate that enterprise adoption is accelerating, even as public scrutiny intensifies.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Vietnam Eyes Digital Assets for SME Loans
Vietnam’s Ministry of Finance has proposed a draft revised law allowing small and medium-sized enterprises to use digital assets, virtual assets, and intellectual property as loan collateral, unlocking credit for tech startups.
Gravity Bridge Halts After US$5.4M Hack
Gravity Bridge has been halted by validators following a suspected signing key compromise. On-chain reports indicate approximately $5.4 million in crypto assets was drained from the contract.
Candidate Sells $800K Bitcoin for Campaign
A Republican fintech entrepreneur liquidated 10 BTC for $800,000 in USDC to fund his run for Florida’s 22nd Congressional District. He advocates using blockchain technology to bring real-time transparency.
Circle Freezes $12.6M Linked to Zama Protocol
Circle froze $12.6 million in USDC within privacy protocol Zama’s smart contract. ZachXBT reports the move was unannounced and likely stemmed from an unrelated US civil court case, sparking debate over unilateral protocol freezes.
Bitcoin ETFs Hit Record 10-Day Outflow
Spot Bitcoin ETFs logged a record 10-day outflow streak totalling nearly $3 billion. The steepest single-day exodus hit $733.43 million, dropping total net assets from $104.29 billion to $94.17 billion.
CFTC Approves Coinbase Crypto Perps
The CFTC will allow Coinbase to offer US customers access to offshore crypto perpetual futures via its subsidiary, Deribit. The company has not yet decided which assets it plans to enable.
Ex-Celsius CEO Files to Vacate Sentence
Alex Mashinsky has filed a pro se motion in a New York court to vacate his 12-year prison sentence for fraud. He claims he suffered from ineffective counsel, and that Sam Bankman-Fried intentionally tried to destroy Celsius.
Sui Mainnet Suffers Consecutive Outages
The Sui blockchain experienced a major network stall on Friday morning, less than 24 hours after recovering from its worst outage on record. The consecutive downtime has paused network activity on-chain.
Artificial Intelligence (AI)
AI Software Triggers Bank Data Breach
An internal data breach at Pennsylvania-based Community Bank exposed sensitive customer information, including names, Social Security numbers, and birth dates. The incident was caused by the unauthorised use of an AI app.
Lenovo Stock Doubles on AI Server Boom
Lenovo’s stock surged 109% in May 2026, marking its best month since 1999. The rally followed record Q4 revenue of $21.6 billion, driven by an 84% year-on-year spike in AI-related sales.
Star Wars Director Backs AI Over CGI
Rogue One director Gareth Edwards strongly endorsed generative AI at Amazon’s AI on the Lot event, describing it as a genius tool for the early, iterative stages of filmmaking and comparing its unpredictable utility to a second-unit director.
Pope Warns of AI Threat to Humanity
In his first major encyclical, Magnifica Humanitas, Pope Leo XIV denounced the culture of power driving artificial intelligence. He called for the disarmament of AI and warned that autonomous weapons risk normalising warfare.
Anthropic Valuation Hits $965 Billion
Anthropic has raised $65 billion in a funding round led by Altimeter Capital and Sequoia Capital, pushing its valuation to $965 billion. This milestone crowns it the world’s most valuable AI firm at the moment.
Fake Thai Police Photo Fools Media
Major news outlets globally published an image of Thai police officers posing in sparkly festival dresses, not realising that the image was an AI fake published by the station.
Google Pay Preps for AI Agents
Google Pay is overhauling its payment infrastructure with the Universal Commerce Protocol. This update allows autonomous AI agents to execute machine-to-machine transactions.
NBA Plans AI Out-of-Bounds Officiating
NBA Commissioner Adam Silver announced plans to introduce an automated system for objective court decisions, like out-of-bounds possession. Partnering with Sony’s Hawk-Eye technology, the league aims for instant, automatic calls to keep games moving smoothly.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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