Crypto faces security breaches and ETF outflows while AI adoption draws scrutiny, as trust weakens across systems, policy, and real world impact.
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In crypto, a combination of regulatory scrutiny, security failures, and capital outflows is reshaping sentiment. US lawmakers are probing suspicious trades linked to geopolitical events, while a $2.8 million stablecoin exploit has once again exposed weaknesses in multisig security. At the same time, Bitcoin ETFs recorded $1.26 billion in outflows, reflecting fragile institutional confidence amid macro uncertainty and political developments.
In AI, the narrative is shifting from rapid adoption to credibility and control. Governments are stepping in with enforcement actions against deepfake abuse, while companies face backlash for overstating AI capabilities. At the same time, large-scale investments such as OpenAI’s Singapore lab contrast with growing public scepticism, as flawed deployments and controversial workforce impacts raise questions about governance and long-term trust.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
House Lawmakers Probe Insider Trading
Representative James Comer launched a probe into Kalshi and Polymarket following over 80 “suspiciously timed trades” tied to US military actions against Iran. Lawmakers are demanding internal records to investigate potential profiting by officials.
StablR Suffers $2.8M Exploit Amid Depeg
Blockchain security firm Blockaid reported an ongoing exploit on stablecoin issuer StablR, draining $2.8M. A compromised private key in a weak 1-of-3 multisig allowed attackers to mint millions in EURR and USDR, causing both assets to depeg.
SEC Delays Tokenised Asset Exemption
The SEC has paused its upcoming “innovation exemption” for on-chain equities. The delay follows regulatory concerns regarding permissionless, third-party synthetic tokens that are issued without direct backing or consent.
70% of Crypto Wrench Attacks in France
A staggering 70% of physical “wrench attacks” targeting crypto holders occur in France, driven by leaked centralised KYC data. Experts report 41 kidnappings occurring roughly every two and a half days in 2026.
Kevin Warsh Sworn In As Federal Chair
Kevin Warsh has officially been sworn in as the new Chairman of the United States Federal Reserve. At the ceremony, US President Donald Trump emphasised that Warsh will maintain independence from the Executive Branch regarding interest rates.
ECB Rejects Euro Stablecoin Expansion
The European Central Bank warned EU finance ministers that increasing euro stablecoins could weaken bank lending and complicate monetary policy. ECB President Christine Lagarde rejected calls to ease liquidity rules, citing major financial stability risks.
Bitcoin ETFs Hit by $1.26B Outflows
U.S. spot BTC ETFs suffered a $1.26 billion weekly drain, marking their worst drawdown since late January. A six-day losing streak was fuelled by a massive $648.6 million Monday drop following geopolitical tensions.
Trump Media Prepares for Major BTC Sale
Trump Media & Technology Group transferred 2,650 BTC to Crypto.com, signalling a pending sale. The company faces $455 million in unrealised crypto losses as token prices sit well below its initial acquisition cost.
Artificial Intelligence (AI)
Firefox Redesign Includes Anti-AI Toggle
Mozilla unveiled Project Nova, a full visual overhaul for Firefox rolling out later this year. Along with a cleaner aesthetic and the return of compact mode, it introduces a straightforward settings control to turn off all built-in AI features.
Argentina’s Flawed AI Policy Rollout
Argentina launched a “Social Digital Twin” AI to predict poverty and model social policies. However, the promotional video faced heavy mockery for glaring typos, grammar blunders, and a deepfake minister.
Feds Charge Two Over Deepfake Porn Law
Federal prosecutors charged two men under the 2025 Take It Down Act for distributing non-consensual AI-generated explicit images. They face up to two years in prison for violating the privacy of over 140 women.
‘AI Washing’ Hits Corporate PR Market
UK companies are facing backlash for rebranding basic automation as artificial intelligence, with public relations executives reportedly being forced to use the buzzword to market ordinary, years-old tech.
Plastic Surgeons Report Unrealistic ‘AI Face’
Plastic surgeons warn that a rising number of patients are demanding unrealistic, hyper-symmetric features generated by chatbots. Experts emphasise that manipulating digital pixels is vastly different from altering human bone and anatomy.
Standard Chartered Boss Apologises
Bill Winters, CEO of Standard Chartered, apologised after facing intense backlash for describing staff losing their jobs to AI as “lower-value human capital.” The bank plans to cut 7,800 back-office roles globally by 2030.
OpenAI and Singapore Partner for AI Lab
OpenAI is opening its first international Applied AI Lab in Singapore. Backed by over S$300 million, the initiative will create 200 technical roles and focus on public service, finance, and digital infrastructure deployments.
Trump Pauses AI Executive Order
President Trump postponed signing a voluntary framework for AI safety, citing a need to keep the US competitive with China. Tech industry advocates worry the regulations might slow down future releases or hurt industry profits.
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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