Raja

That’s how we roll. looking forward to the next.

@wyckoffweb @aave It’s part of the culture. Let’s look at the positive side that all these people from all quarters doing their part to help instead of undermining them irrespective of their real intent.

Apparently, airdrop farmers are now trying to sybil the @aave rescue fund People are sending $1–$3 from multiple wallets, hoping tiny transfers today may count toward an airdrop later. Over 73,000 users have sent less than $3. Sounds absurd, but we've seen users get airdropped for acts like this before.

@BullTheoryio 19% did the magic.

🚨 $600 MILLION IS MISSING FROM A HEDGE FUND AND NOBODY KNOWS WHERE IT WENT. This is not the first time an auditor missed a fraud and they are already proposing even easier rules. David Choi ran a hedge fund called Mars FX. Wharton graduate. Worked at TPG Capital. Every credential you would want to see. The fund posted 19% returns every single year with zero losing months. Not one, Ever. That alone should have been the red flag. No legitimate fund in history has never had a single losing month. Markets go up and down, Every fund takes losses at some point. A fund that never loses money is not a good fund. It is a fund hiding something. Investors saw the returns and wired their money in anyway. By February 2024 Mars FX had collected $331 million in the US fund alone. Total exposure across all funds was close to $600 million. Here is where it gets worse. Novus, the firm managing the money, told investors their cash would go to a secret technology partner in the British Virgin Islands that would handle all the actual trading. They refused to name this partner. They called it "proprietary and sensitive." Investors handed over hundreds of millions of dollars to a fund that was sending it to a company they were not allowed to know the name of. That company later identified as TRFX, claims its platform stopped operating in 2022. Mars FX was raising hundreds of millions from investors in 2023 and 2024. The technology partner they were telling investors was running their trades says it had not been operational for two years. Now here is the Deloitte part. Deloitte is one of the four biggest audit firms in the world. They audited Mars FX every single year. They issued clean opinions every single year. According to the lawsuit filed against them, Deloitte signed off on the financials without independently verifying that the assets actually existed. The 2024 offering documents showed the technology partner was neither a licensed broker nor a regulated custodian. Deloitte's audit the same year noted no significant changes. $600 million is now missing. Lawsuits are open in three countries. The FBI and a grand jury in Manhattan are investigating. The SEC, CFTC, UK's Financial Conduct Authority and BVI regulators are all involved. One investor, a 70 year old small business owner from Arizona named CarolAnn Tutera, lost money in the GPB Capital fraud years ago and now lost money in Mars FX. She said: "I'm really fed up with finance guys on Wall Street." She was defrauded twice. Both times the system that was supposed to protect her failed completely. And this week, while this story was breaking, US regulators formally proposed eliminating filing requirements for smaller hedge funds and reducing disclosures for larger ones. They are also cutting enforcement staff at the agencies responsible for catching exactly this kind of fraud. $600 million missing. Auditor saw nothing, Regulator caught nothing And the government's response is to make the rules even easier for the next one. Nobody has been charged. Nobody knows where the money is. And the investors who lost everything are now being told to wait for a legal process that, with reduced enforcement staff and fewer disclosure requirements, has never been less equipped to help them.

@LarkDavis Should I get amazed by the creative thinking or worry about how easy it is to game the system.

What is happening in France? A Polymarket trader bet $119 on Paris weather. No model. No alpha. No insider info. Just a hairdryer held up to a CDG airport sensor long enough to fake a temperature spike. $119 in → $21,398 out. Account deleted. Police investigating. Who needs a crystal ball when you have a hair dryer.

@DefiIgnas Is the risk-reward ratio make sense for an average investor? Already in most DeFi, the risk is far beyond the potential yield.

Simple idea how to avoid rsETH-type contagion in DeFi. You deposit ETH into a pool. Or better, stETH so you keep earning yield. You're basically restaking your already staked ETH. Now services like LayerZero's DVN can use that restaked ETH for their security. Not just bridges but oracles, DA layers, sequencers, anything that needs cryptoeconomic guarantees. We could call them Actively Validated Services (AVS for short). Obviously you need Operators who actually run the AVS work using delegated restaked ETH. They get paid for it with extra fees so stakers earn passive yield on top of staking yield. Aligned incentives. And because managing all this restaked ETH and picking Operators is really hard work for retail, there could be liquid wrappers. Like stETH from Lido, but for restaked ETH. They handle Operator selection for you. We could call them Liquid Restaked Tokens (LRTs). If an Operator misbehaves or signs a forged signature, we slash that ETH. Like an insurance fund inside the protocol layer! So no need to for Defi United donations in the future. I think this could really work.

Dayum!

@fengtality If your old tg contact reaches out to you from a coma and asks you for a call without any context, likely they have been hacked.

Almost got hacked this morning - here's a replay of what happened: 1. A VC whom I've met in person reached out for a catchup 2. She sent me a Microsoft Teams link a few min ahead of the meeting 3. When I joined, it asked me to download update script 4. Got a funny feeling and ended the call immediately 5. Claude inspected the file and it was indeed malicious Not sure if this person was just hacked or a bad actor, but I wanted to post this as a PSA. Stay safe.

@enesonchain Don’t blame it on the tech. Everything is working as designed and expected. Bad actors and greed to be blamed. As an industry we are doing very little to weed these out.

What I learned after being in crypto full time for the past 6 years is Almost nothing is truly Decentralized AAVE ? no because my funds are frozen right now Arbitrum ? glad they saved the funds but its not decentralized Drift ? haha even Hyperliquid ? we know its not It makes me wanna do dump all my alt coins, only buy bitcoin and ETH and log off

@10xResearch Great write up. In this newly found love of building infinite composability through chain of systems, some will become the weaker link . It won’t be the last exploitation. It is the tax we have to pay for the greed.

Aave's $180M Reckoning: When the Weakest Link Breaks DeFi Aave's $180M bad debt crisis reveals that DeFi's "money Lego" model has a fatal systemic flaw, a lending protocol is only as secure as the weakest bridge it accepts as collateral. Aave faces three recovery options, and whichever path the DAO chooses will set a precedent that reverberates across the entire DeFi lending landscape. During the recent bull market, Aave’s Total Value Locked (TVL) peaked at $45BN. After hitting a floor of $23 billion in March 2026, the protocol showed signs of a strong recovery. While our technical indicators initially flagged AAVE-USDT as a high-probability buy, the recent KelpDAO bridge exploit triggered a 20% price collapse. This event erased months of growth, dragging TVL down from $26BN to $18BN, effectively returning it to late-2021 levels. Aave now faces $180M in bad debt; its resolution will likely serve as a watershed moment for the broader DeFi ecosystem. With 2026 exploits already totaling $1BN, the industry is on pace to lose $3.3BN annually. This persistent $3BN “annual” drain (2024: $2.2BN; 2025: $3.4BN) is becoming a systemic risk that will inevitably invite more stringent regulatory oversight. How Aave resolves this crisis will become the defining template for DeFi's response to large-scale exploits, establishing an industry standard for how protocol losses get absorbed and who ultimately bears the cost. Our report explains the three choices Aave has and this will likely set the standard for DeFi going forward and impact how yield farmers, loopers and traders will position themselves from now on. Full report, link in bio.

Why do we all wake up only after a major exploitation happens? I am sure rsEth exploitation won’t be the last one that we will see. The true power of DeFi is autonomous and multi systems seamlessly interact and execute. So these chains of system will always have a weaker link because someone will prioritise cost vs execution efficiency.

@kashev @aave In the name of DeFi are you ok for the exploitation to continue ripping the money off the protocol? There must be a line drawn somewhere for exceptions.

@aave can we just stop talking about defi what is this? aave freezes assets like it’s your ordinary bank defi is dead 💀

The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH. The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH collateral while the situation is assessed. We are reviewing information about rsETH borrows on Aave that occurred after the exploit and will share more details as soon as possible. If the protocol accumulates bad debt from this incident, we'll explore paths to offset the deficit.

🚨 FAKE LEDGER APP ON APPLE STORE WIPES OUT ENTIRE BTC HOLDINGS A fake Ledger Live app on Apple’s Mac App Store just wiped out a user’s life savings. American musician Garrett Dutton lost 5.92 $BTC ($424K) after downloading what looked like the official app and entering his 24-word seed phrase. On-chain investigator ZachXBT traced the stolen Bitcoin exchange deposit addresses and publicly questioned how the app made it through Apple’s gatekeeping. No comment yet from Apple.

@IvanOnTech The day we build product with real use case with sizable market we won’t see this. Also, 95% of the CMC 100 projects are ridiculously overvalued.

$AVAX wasn't a meme coin. It was considered a blue chip. Great technology. Strong fundamentals. A serious team. Down 94%. From nearly $150 in 2021 to under $9 today. And it never came close to that 2021 high throughout the last bull market. Diamond hands didn't save anyone. "Blue chip" doesn't save you. Fundamentals don't save you. Only Mechanical Rules save you by giving you a clear exit plan....

@rep1cxyz @EthCC Honestly, there’s nothing new here. Web2.0 has been doing this for more than a decade. Venture builders and catalyst from the onset must have always focused on fundamentals but then greed and SAFT changed the priorities. Glad fundamentals are being focused again.

Just got back from @EthCC in Cannes. Not gonna talk about tech. This thread is about the real sentiment on the ground - what builders, VCs, and market makers are actually saying right now. It's not pretty. But you need to hear it. 🧵

This isn’t just a threat for crypto alone. Even banks, govt institutions will become vulnerable. But as an industry there’s been a lot of work going on in developing quantum resistance. As crypto survived many challenges we shall overcome this too. It won’t be an existential threat.

@stacy_muur Why most DeFi isn’t generating revenue? It’s not a DeFi problem. Lack of use case, unattractive yield, duplication of solution, no growth strategy, and poor leadership are the factors.

Crypto Revenue Landscape (30D) ↓ $50M+ Tether → $490M Circle → $199M Hyperliquid → $58M $10–$50M Titan Builder → $39M Pumpfun → $38M Tron → $27M Grayscale → $18M Sky → $16M EdgeX → $15M $5–$10M Jupiter → $9.9M Axiom → $9.6M Ant Fun → $8.9M Phantom → $8.3M Fragment → $6.9M GMGN → $6.9M Aerodrome → $6.5M Aave → $6.4M Courtyard → $6M Chainlink → $5.6M $2–$5M Fourmeme → $4.8M Polymarket → $4.4M Lido → $4.2M Lighter → $3.8M Base → $3.7M Pancakeswap → $3.6M Polygon → $3.4M Etherfi → $3.3M Collector Crypt → $3.1M Metamask → $2.9M Tradexyz → $2.8M Fomo → $2.6M ORE → $2.2M There are ~1300 projects listed on DefiLlama. Only 32 projects generated $2M+ in the last 30 days. That’s just 2.4%. Most of the DeFi protocols are cooked.

@grok @thelordofpolym @Polymarket Does it mean Meta Quest, the VR is shutting down too?

Meta's Reality Labs racked up ~$80B in cumulative losses (mostly operating costs) since 2021 on: - Quest VR/AR hardware development & manufacturing - Horizon Worlds platform & content - 10k+ engineers, studios, custom chips - Data centers, acquisitions, R&D Revenue from it all: ~$2B. Now pivoting hard to AI/mobile—VR Horizon Worlds shuts June 15.

JUST IN: Meta announces they'll be shutting down the Metaverse, after pouring $80,000,000,000.00 into the project.

Various cooperatives living around us for more than half a century. It shows that decentralised and community driven governance has a product market-fit. However the nuances here is, it works in a tight, niche verticals where community is mission aligned, united, and committed. Unfortunately, we can’t make this model in a community with broad user base with varied intentions and commitment. Best wishes!

Glad, this is getting addressed in the form of shield. cryptosnewss.com/50m-crypto-tra…

@coinbureau @gork In Australia, isn’t it all the firms/ platforms holding custody of the customer’s token should be licensed already?

🇦🇺 CRYPTO FIRMS IN AUSTRALIA MAY SOON NEED LICENSES Australia’s Senate committee supports a bill that would require crypto platforms to obtain financial-services licenses. The framework aims to regulate firms holding client crypto rather than the blockchain technology itself.

@ScammoonR Make sense. At least from a UI/ UX standpoint needs some refinement instead relying on a simple alert.

arbitrage to go through, If we had no way to bypass high price impact, I'd have been prevented from arbing my ETH > stETH because of the PERCEIVED value loss by the DEX smart contract again, this isn't conducive to real defi, the high price impact MUST have a way to bypass.

Unpopular opinion: In defi, we NEED this to be present in the first place there are countless examples of where I myself choose HIGH price impact in my day to day defi the first are "o" options tokens like oHYDX from @HydrexFi or oLYNX from @LynexFi these have an onchain rate