AI models keep breaking out of their test sandboxes as security becomes the industry’s biggest story, while a new Bitcoin fork fizzles and ETFs rebound.
What’s up, Pasar Crew?
This week, Bitcoin’s community fought off a breakaway fork and fresh malware campaigns, while AI labs disclosed a fast-growing string of models that escaped their testing sandboxes and hacked real companies in the process.
In crypto, a minority Bitcoin chain running the contested BIP-110 proposal stalled after just two blocks, Brazil introduced a 24-hour hold on large self-custody transfers, and the US sanctioned two more Iranian crypto exchanges. Bitcoin ETFs still posted their best week since April, pulling in roughly US$1B.
In AI, Moonshot AI’s open Kimi K3 model broke out of its sandbox to find test answers, OpenAI detailed how its models secretly coordinated before hacking Hugging Face, and Meta disclosed its Muse Spark model breached another company during testing. OpenAI also paid US$3.2M to settle a hiring discrimination probe.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Bitcoin ‘Anti-Spam’ Fork Stalls After Two Blocks
A forked Bitcoin chain running BIP-110 mined just two blocks before stalling. The chain inherited the Bitcoin network’s difficulty and drew only 2.53% of hashpower versus the 55% needed to maintain it.
Brazil Adds 24-Hour Wait on Crypto Transfers
Brazil’s central bank will require crypto firms to hold transfers above US$10,000 in self-custody wallets or foreign exchanges for 24 hours from 1 January 2027.
IMF: Local Stablecoins May Boost Dollar Use
IMF official Dan Katz said domestic-currency stablecoins could accelerate demand for dollar-backed tokens once both trade on shared blockchain infrastructure. He pointed to South Africa, where rand-linked tokens have drawn even less interest than dollar ones.
Trump Media Scraps Crypto.com Treasury Deal
Trump Media and Technology Group is pulling out of its original plan to build a US$6.4bn CRO treasury with Crypto.com. The company is pivoting to a merger with energy firm TAE instead.
US Sanctions Two More Iranian Crypto Exchanges
The Treasury sanctioned Shelbit and Aban Tether under its ‘Economic Fury’ campaign, alleging the exchanges moved funds for the Revolutionary Guard Corps. Reuters reported Shelbit had processed at least US$4B over two years.
Hackers Hide Malware in BNB Chain Contracts
Microsoft said attackers are using BNB Smart Chain contracts to store malware instructions, tricking victims via fake CAPTCHAs into running commands that steal credentials. The technique, EtherHiding, makes the malicious code harder to remove.
CEX Perpetuals Volume Falls to 31-Month Low
Perpetual futures trading on centralised exchanges fell to US$4T in July, the lowest since December 2023, as Binance led with US$1.4T. Decentralised perpetuals volume also slid to US$531B.
Bitcoin ETFs Post Best Week Since April
US spot Bitcoin ETFs attracted roughly US$1B in net inflows for the week, their strongest since April, according to Bloomberg’s Eric Balchunas. The rebound followed a US$116M Coldcard wallet hack that renewed interest in ETF custody.
Artificial Intelligence (AI)
OpenAI Pays US$3.2M Over Hiring Bias Probe
OpenAI and subsidiary Statsig will pay US$3.2M to settle US claims they favoured foreign visa workers and discouraged US applicants from applying.
Kimi K3 Escaped Sandbox to Find Test Answers
Moonshot AI’s open-weight Kimi K3 left its testing sandbox and pulled answers from a GitHub repository instead of solving the task, security firm Frontier Security said. Kimi ran with its default public safeguards.
Bitcoin Red Team Uses AI to Find Exploits
A volunteer security initiative says it used frontier AI models to scan about 150 Bitcoin repositories, disclosing more than a dozen vulnerabilities. The group is allegedly spending US$10,000 daily on AI services.
OpenAI Details How AI Agents Planned Hack
OpenAI said its models secretly coordinated through an internal package system before hacking Hugging Face, rebuilding covert channels even after credentials were revoked. Researchers called it a ‘watershed moment’ for computer security.
Miners’ AI Deals Draw Muted Market Reaction
Analysis found the average stock jump on AI hosting announcements from Bitcoin miners fell from about 24% to 10% over two years. TeraWulf’s 401-megawatt Anthropic lease lifted shares just 5%.
DuckDuckGo’s No-Tech Sunglasses Sell Out Fast
DuckDuckGo’s US$35 ‘Normal F***ing Sunglasses’ sold out within a week of launch. The joke product targets backlash against Meta’s camera-equipped smart glasses.
Meta’s Muse Spark Model Breached a Company
Meta disclosed its Muse Spark 1.1 model exploited a vulnerability in a third-party service after a misconfigured test environment gave it internet access. The incident follows similar disclosures from Anthropic and OpenAI.
Eliza Founder Shuts Down Token After Lawsuit
Shaw Walters said the Eliza token is ‘dead’ and its foundation is winding down after a class-action settlement drained its treasury. Development of the open-source ElizaOS framework will continue without a token.
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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