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first_img Franklin Templeton expands tokenized collateral services to Bybit

According to CoinDesk, Franklin Templeton has expanded its "Over-the-Counter Collateral Program" to Bybit, allowing users of the exchange to use their tokenized money market fund shares for cryptocurrency trading. Users can use the shares as collateral to borrow stablecoins USDT or USDC, while the underlying assets continue to generate returns. The relevant shares represent approximately $686 million in net assets.The underlying assets will not be transferred to Bybit but will be held off-chain by the regulated custody platform ByCustody, with their value mirrored in the Bybit trading environment, thereby generating returns while releasing trading liquidity. The shares are issued through the Benji technology platform, which is Franklin Templeton's proprietary blockchain-integrated record-keeping and transfer agency infrastructure, currently paying an annualized return of 3.7% based on the latest 7-day interest rate.This is not Franklin Templeton's first foray into over-the-counter collateral partnerships, as it has previously offered tokenized money market funds to Binance and OKX clients. Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, stated that investors can now use collateral more efficiently across major exchanges and earn returns from it, which is crucial for ecosystem growth. This expansion also reflects industry trends, with platforms like Crypto.com and Deribit allowing qualified users to use BlackRock's BUIDL fund as trading collateral.

first_img SEC updates cryptocurrency FAQ, stating that token buybacks and network upgrades do not necessarily constitute securities

The U.S. Securities and Exchange Commission's Division of Corporation Finance updated its frequently asked questions document on cryptocurrency assets on Friday, clarifying that token buybacks, network upgrades, and marketing promotions do not automatically make cryptocurrency assets securities. The division stated that announcing a buyback plan for an already functioning cryptocurrency network does not, by itself, make the associated tokens constitute an investment contract; however, for networks that are not yet operational, if the issuer promotes the buyback as a source of returns for holders, this conclusion may not necessarily apply.Regarding the ongoing development issues of cryptocurrency projects after their launch, the document pointed out that once a cryptocurrency system is operational, services used to protect, maintain, improve, or enhance that system and its functions, or to promote network effects, do not fall under the managerial efforts referred to in the Howey test. The existing uses of marketing networks generally do not create profit expectations, and statements regarding future functionalities are similarly true, provided that profit potential is not promoted. The document reiterated that specific judgments still heavily depend on the actual circumstances of each case.This document is based on the interpretive guidance issued by the SEC in March of this year regarding the application of securities laws to cryptocurrency assets, released just weeks after the Clarity Act failed to advance in the Senate, with regulators continuing to operate under existing laws. Additionally, the U.S. Commodity Futures Trading Commission updated its cryptocurrency FAQs on Thursday, stating that futures companies and clearinghouses may invest customer funds in tokenized versions of previously permitted assets, provided that investment and custody requirements are met; regulated companies may use blockchain for record-keeping but must be able to provide relevant records when the blockchain or its block explorer is not operational.

first_img OpenAI opens the Daybreak cybersecurity tool to the Ukrainian government

OpenAI announced that it is opening its AI vulnerability detection tool Daybreak to Ukraine's Ministry of Digital Transformation to locate and fix software vulnerabilities before they are discovered by Russian hackers. The news was announced on Wednesday during the United Nations General Assembly by Dmytro Kushneruk, Ukraine's Consul General in San Francisco, and Sasha Baker, OpenAI's National Security Policy Lead.Daybreak is based on OpenAI's flagship large model GPT-5.6 Sol and can scan outdated systems for weaknesses, verify whether suspected vulnerabilities can be exploited, and confirm whether patches actually close the vulnerabilities before they are released. OpenAI has previously opened the model to cybersecurity agencies in France, Germany, and Poland, where Poland's CERT Polska discovered six vulnerabilities in commercial router software, all of which have been fixed by the vendors.Ukraine's CERT-UA handled nearly 6,000 cyberattacks in 2025, a 37% increase from 2024, with local governments and government agencies being the hardest hit. This opening follows OpenAI's commitment to a $1 billion subsidy program announced on September 3, which is said to expand to "partner countries" in the coming weeks. Jamie MacColl, a researcher at the Royal United Services Institute, told the BBC that Western companies can also gain valuable intelligence from active conflict zones.

first_img The Cyberspace Administration of China is investigating DeepSeek and the Dark Side of the Moon for allegedly leaking data to Claude

According to The Information, citing informed sources, China's National Internet Information Office has launched an investigation into AI companies DeepSeek and Moonshot AI, triggered by Anthropic's allegations that the two companies secretly routed sensitive user data to their servers. Reports indicate that regulators visited the offices of both companies, interviewing executives and employees, focusing on whether sensitive data related to law enforcement, military, and state-owned enterprises has flowed into U.S. servers.The trigger for this investigation was Anthropic's fourth threat intelligence report released on September 10. This 154-page document accuses seven Chinese labs—Alibaba, Moonshot AI, DeepSeek, Z.ai, MiniMax, SenseTime, and Xiaomi—of engaging in what it calls "illegal distillation," which involves using the outputs of large models to train smaller models. Anthropic states that distillation itself is a legitimate practice, but it opposes its implementation through fraudulent accounts. The National Internet Information Office initially summoned all seven companies named in the report, but later narrowed the investigation to DeepSeek and Moonshot AI. Anthropic claims that Moonshot AI routed over 23 million interactions to Claude through 5,380 fraudulent accounts, while DeepSeek generated over 12.1 million interactions within a 14-day window in July.The timing of the investigation is quite delicate for both companies.

first_img Cryptocurrency travel platform Travala launched a permanent AVA strategic reserve, with monthly buybacks doubling

According to Chainwire, the crypto travel booking platform Travala and AVA Foundation announced a matching buyback arrangement. Travala will fund the buyback independently and in addition to the existing rewards supplementary buyback from AVA Foundation, increasing the monthly open market buyback amount from 1 times the member rewards to 2 times. The matched AVA purchased will be transferred to a new Travala AVA strategic reserve wallet, which is multi-sig custodial, and Travala commits that the AVA in it will never be sold or transferred out.Under the existing mechanism, AVA Foundation repurchases an amount of AVA each month equivalent to the amount of AVA distributed to AVA Smart members in the previous month and transfers it back to the ecological incentive wallet, with a historical total of 4,824,722 AVA repurchased. The first matched buyback has been completed: the Foundation repurchased 369,881.04 AVA in September, corresponding to the member rewards in August; Travala independently matched and purchased another 369,881.04 AVA, totaling 739,762.08 AVA. The Travala portion has been transferred to address 0x7bed1889c21d9eb3560463c14cd74fe29f2d03b6, and both buybacks can be verified on-chain separately.The AVA transferred to this wallet is permanently locked, with the monthly portion removed from the circulating supply and excluded from the official circulating supply through the AVA circulating supply interface. Travala will submit the reserve wallet address to CoinMarketCap and CoinGecko, and both parties will publicly report the numbers of the two buybacks each month.

Japan National Police Agency: North Korea's cyber attack organization WaterPlum launched a large-scale attack targeting IT technicians

According to a joint alert issued by the Japanese National Police Agency, FBI, ASD/ACSC, BND, and BfV, the North Korean-backed cyber attack organization "WaterPlum" (also known as Contagious Interview) targets job seekers by disguising itself as an AI, cryptocurrency, and NFT company to post fake job listings. This lures job seekers into downloading NPM packages containing malware such as BeaverTail, InvisibleFerret, and OtterCookie, which then steal cryptocurrency wallet information and confidential data.As of July 2026, the organization has infected over 30,000 devices in more than 100 countries and regions worldwide, stealing information from over 7,000 cryptocurrency wallets, with the wallets under its control receiving at least approximately 1.7 billion yen (about 10.71 million USD) in cryptocurrency. The Japanese National Police Agency has discovered and dismantled a "notebook farm" established by local "supporters" for the first time in the country, where North Korean IT laborers remotely control PCs within the supporters' residences to conduct business, with the related amount involved reaching several hundred million yen.The police and FBI assess that WaterPlum and some North Korean IT laborers are under the unified command of the 313 Bureau of the Ministry of Military Industry of the Workers' Party of Korea, with the profits directly flowing into North Korea's national funding pool. The police remind IT technicians and corporate issuers to remain vigilant and avoid executing third-party code in unverified environments.
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