protect

Famous trader Killa stated that after Bitcoin fell below $60,000, large buy orders appeared below the market price of BTC on Binance, referred to as the "plunge protection team" returning. Killa also demonstrated that after similar buy walls appeared previously, Bitcoin often experienced a rebound following a short-term suppression.

According to Gate market data, BTC has dropped to around $67K, and ETH has fallen to $1,821. The BTC $75K Put and ETH $2,100 Put, which the market had been focusing on, have fully entered the deep in-the-money range, significantly increasing the value of protective positions. Meanwhile, VOL has quickly rebounded from a low point, and a trend of expanding market volatility is forming. Under the Short Gamma structure, market makers' hedging behavior may further amplify price fluctuations.In an environment of expanding volatility, more and more traders are beginning to manage risks and trade volatility through options. Data shows that Gate options trading volume in May increased by 69.4% month-over-month, the number of trading users grew by 33.6%, active new users increased by 27%, and liquidity and user participation continue to rise.Gate options have recently continued to upgrade their multi-asset ecosystem, now supporting BTC, ETH, gold, and crude oil options trading, with quoted spreads leading competitors by 42.6%. They have also launched combination strategy ordering and dynamic hedging (DDH) functions to help users manage risks and seize market opportunities more efficiently.

According to GlobeNewswire, global insurance and risk management giant WTW announced the acquisition of the digital asset insurance platform Redefind to strengthen its digital asset protection service layout.According to the disclosure, Redefind provides an end-to-end cryptocurrency and digital asset insurance access platform. WTW plans to first launch a non-custodial loss recovery insurance scheme in the UK to support forensic investigations, asset tracking, and legal recovery related costs for digital assets that are stolen or lost.

The Southern District Prosecutors' Office of Seoul, South Korea, has detained and prosecuted 2 individuals and prosecuted 3 individuals without detention in relation to the Rug Pull case of the Solana meme coin CATFI on decentralized exchanges (DEX). The prosecution stated that this is the first case applying the unfair trading provisions of the Virtual Asset User Protection Act and also the first case to detain and prosecute the main perpetrator of a DEX Rug Pull case.

Cointelegraph posted on the X platform that the governor of South Carolina has signed Bill S.163. The bill protects the self-custody rights of Bitcoin, prohibits discriminatory taxes on Bitcoin, and safeguards the rights of proof-of-work mining in the state.

Glassnode stated that the signals from various Bitcoin derivatives markets are diverging, and the overall structure is beginning to weaken. A significant shift in selling pressure has been observed, with the cumulative volume delta (CVD) for spot trading plummeting by 848.7%. Nevertheless, spot trading volume has increased by 4.2%, indicating a rise in trading activity, but this may stem more from trading interest rather than bullish sentiment. Open interest has slightly decreased by 2.9%, reflecting a cautious attitude towards leverage in an uncertain environment. However, the funding rate paid by the long side has surged by 136.6%, showing a rebound in demand for long positions and an increase in bullish sentiment among traders. Yet, the CVD for perpetual contracts has sharply declined by 278.7%, highlighting significant selling pressure and indicating that bearish sentiment still dominates.The 25-Delta Skew for options has risen by 42.75%, as traders seek more downside protection, with the market clearly turning bearish. Meanwhile, open interest and volatility spreads for options have increased by 1.7% and 124.52% respectively, indicating heightened market participation and increased expectations for future price volatility. The MVRV of the US spot ETF has decreased by 6.1%, with net flows for the ETF deteriorating sharply, reflecting a decline in institutional confidence. However, ETF trading volume has risen by 7%. On-chain activity presents a mixed picture: the number of active addresses has decreased, while the adjusted transfer volume has increased, suggesting relatively low network usage, but large amounts of capital continue to move.Overall, as momentum, spot demand, and speculative positions weaken across the board, the Bitcoin market structure is beginning to soften. Options traders are increasingly hedging against downside risks, liquidity and profitability indicators continue to cool, and the market structure remains relatively stable, but stable liquidity and the strength of long-term holders still provide some resilience to the market.

Bitget announced the launch of the Delta Neutral Mode in its unified account. This feature will apply a differentiated automatic deleveraging (ADL) sorting mechanism to eligible hedging positions when the account meets preset Delta neutral conditions, thereby reducing the likelihood of reasonable hedging strategies being forcibly deleveraged in extreme market environments.The Delta Neutral Mode supports users in combining spot, full-margin leverage, and full-margin contract trading within the unified account framework, with the system synchronously assessing directional exposure at the account and asset level. This feature is suitable for funding rate arbitrage, basis trading, multi-market hedging strategies, and quantitative neutral strategies, among others.

Aave CEO Stani tweeted that the latest draft of the market structure bill in the United States has been released. This bill can provide strong legal protection for DeFi developers in the U.S., allowing them to confidently build and maintain decentralized protocols without being forced to bear heavy obligations that are only suitable for centralized models. If the U.S. successfully establishes this framework, other regions around the world will follow.Stani emphasized that regulatory clarity is more important for DeFi than yield. The passage of the Clarity Act is expected to bring significant tailwinds to DeFi, similar to what the Genius Act has done for stablecoins.

At the Consensus 2026 Miami conference, Zcash Open Development Lab CEO Josh Swihart announced that Zcash will launch a quantum recoverable wallet within a month and fully achieve post-quantum status within 12 to 18 months.Additionally, the independent scaling solution aims to achieve Mastercard/Visa-level throughput within a similar timeframe. On the user side, the Electric Coin Company's wallet has enabled cross-chain swaps from assets like BTC, SOL, and USDC to privacy ZEC through the integration of Near Intents, with approximately $600-700 million in funds flowing through this route since its launch. The Near ecosystem's 30-day processing volume is close to $800 million, with Ethereum, Solana, and Zcash being the main chains.Furthermore, the project community is discussing reducing the Zcash block time from 75 seconds to 25 seconds, and the cross-chain bridge with Solana and Hyperliquid has gone live. A voting feature for token holders will also be launched, serving as an opinion layer for the project's existing consensus model. Currently, Zcash's shielded pool accounts for 30% of the circulating supply, reaching an all-time high. Analysts believe that if this ratio continues to grow with rising prices, this round of increase will be driven by real adoption rather than mere speculation.

The Japan Crypto Asset Business Association (JCBA) officially released the "Best Practices for Crypto Asset Staking Operations" guidelines, covering various aspects such as operational requirements, emergency response, information disclosure, compliance management, external auditing, and tax accounting, aiming to enhance the security and transparency of domestic staking services.

According to The Block, Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), stated that the CFTC is considering establishing rules to solidify its protective stance towards non-custodial software developers. In March of this year, the CFTC issued a no-action letter regarding the cryptocurrency wallet Phantom, indicating that it would not take enforcement action for not being registered as a broker and clarified that eligible self-custody wallet software developers do not need to register as brokers. Selig mentioned that the CFTC is seeking to formally incorporate this stance into rulemaking.Additionally, Selig reiterated that prediction markets fall under the exclusive jurisdiction of the CFTC and that it will continue to sue states that violate federal jurisdiction. The CFTC has previously sued Wisconsin, Illinois, Arizona, Connecticut, and New York.

Paradigm general partner Dan Robinson proposed the "Proof of Address Control Timestamp" (PACTs) mechanism, aimed at providing a protection path for Bitcoin addresses against potential threats from quantum computing.This solution allows holders to generate address control proofs through BIP-322 and create on-chain commitments using a random salt value, completing time anchoring with OpenTimestamps to establish ownership proof without disclosing wallet information. If quantum-vulnerable addresses are frozen in the future through a soft fork, users can submit STARK zero-knowledge proofs to unlock their assets when spending. This mechanism also provides a potential recovery path for wallets derived from BIP-32, but its implementation still relies on Bitcoin introducing STARK verification capabilities and gaining community consensus.

Members of the U.S. Senate Banking Committee announced a compromise text on the "Clarity Act" on Friday, which allows cryptocurrency companies to continue implementing stablecoin reward programs but prohibits them from offering stablecoin yields equivalent to bank deposit functions or economic benefits.

Researcher Dan Robinson from Paradigm proposed a new scheme called PACT (Verifiable Address Controlled Timestamp), aimed at protecting long-dormant bitcoins, including Satoshi's early addresses, from future quantum computing attacks.This mechanism allows users to prove their control over an address through a timestamp without the need to transfer assets or expose on-chain behavior. Once future quantum attacks occur, assets can be recovered in a quantum-resistant version of the Bitcoin network based on that proof. Compared to mandatory migration schemes (like BIP-361), PACT avoids the privacy exposure issues caused by actively transferring assets, providing long-term holders with a more flexible preemptive protection path.

According to SBS Biz, the Personal Information Protection Commission of South Korea has launched an investigation into Upbit and Bithumb for sharing order books with overseas exchanges, focusing on whether there is any cross-border transfer of personal information in the process. The commission has completed written investigations and on-site inspections and is currently in the phase of determining legality, with results expected to be finalized in the second half of the year.An order book is a list of buy and sell orders on an exchange, and sharing it with overseas entities can increase liquidity. However, if user identification information is transmitted along with it, it may violate personal information protection laws (cross-border transfers require user consent). It is reported that Upbit shares its order book with Southeast Asia's Upbit APAC and the Tether market, while Bithumb has shared its order book with Australia's Stellar.

The Lido research forum has launched a new proposal suggesting that the DAO authorize a temporary reduction of the first loss protection trigger threshold for the EarnETH treasury during the Kelp event. According to current rules, the protection mechanism of Lido Earn only triggers when the treasury loss exceeds 1% of the holdings. However, the proposal points out that if the shortage of rsETH is resolved through DeFi United, the actual loss may be less than 1%.To ensure that EarnETH users receive full compensation, the proposal suggests a one-time exception during this event, allowing the use of the first loss fund to cover losses below the 1% threshold. The current estimated residual borrowing rate loss is about 400 to 600 ETH.The proposal emphasizes that this move is a one-time arrangement for user protection, brand reputation, and business considerations, and does not change the general 1% rule. Since the rsETH event is expected to be resolved within 5 to 10 days, and the standard voting window is 7 days, the proposal also has a sense of urgency.

The proposer of the "Bitcoin Strategic Reserve Act," U.S. Senator Cynthia Lummis, stated that concerns about the developer protection provisions of the "CLARITY Act" are not a new issue. Efforts are currently underway to improve these provisions, aiming to ensure the safety of non-fund transfer developers while holding wrongdoers accountable.

The Bank for International Settlements (BIS) released a report indicating that cryptocurrency exchanges are gradually providing bank-like services, such as lending and earn products, but lack the regulation and deposit protection found in traditional financial systems, posing systemic risks.The report states that these high-yield products are essentially closer to "unsecured loans," where user assets are often used by the platform for high-risk operations such as lending, trading, or market making, and users only hold a creditor position against the platform. If the platform encounters problems, users will be directly exposed to repayment risks. The BIS also noted that leading cryptocurrency platforms have evolved from single exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, but lacking transparency and risk isolation mechanisms. The previous collapses of Celsius Network and FTX are typical cases of such structural risks. Additionally, the report mentioned that the flash crash in the cryptocurrency market in October 2025 triggered approximately $19 billion in forced liquidations, highlighting the chain reaction risks under high leverage and opaque structures.

According to official news, KelpDAO stated that over the past few days, the team has been continuously advancing the handling of related events with the support of partners, allies, and the community. Discussions are progressing in a positive direction, and efforts are being accelerated to reach a suitable solution. The project party emphasized that it always adheres to the core principle of "user first," and subsequent measures will be gradually implemented with the aim of safeguarding the overall interests of users.In the past four days, the Kelp team has been working around the clock in collaboration with multiple parties, maintaining close communication with all relevant parties, and making substantial progress on several potential solutions. This includes measures taken by the Arbitrum Security Council to freeze the stolen funds, as well as SEAL 911 participating in the preliminary investigation to provide objective and clear analytical support for the incident.Kelp stated that the current focus of work remains on protecting user asset security and strengthening the protocol itself. This incident is not only of critical significance to the project but also has enlightening value for the entire industry. The team will continue to disclose subsequent progress through official channels and thanks the ecological partners and community for their ongoing support.Previous reports indicated that the KelpDAO hacker has essentially laundered $175 million in ETH into BTC.

Lido stated on platform X that its EarnETH treasury was affected by the theft of 116,500 rsETH (approximately $29.2 million) from the Kelp DAO cross-chain bridge on April 18.EarnETH holds approximately $21.6 million in rsETH risk exposure through leveraged positions in rsETH/ETH on Aave, accounting for about 9% of the total assets in the treasury. The EarnETH team is currently actively deleveraging to reduce risk, and the outcome depends on the final decisions made by Kelp, LayerZero, and Aave regarding loss sharing and bad debt handling.Lido further stated that EarnETH has a $3 million "first loss protection mechanism" funded by the Lido DAO treasury, which will be used to cover losses if necessary. The treasury has currently suspended redemption processing to assess the losses. This incident does not affect stETH and wstETH, and the core staking protocol of Lido is not involved.