Microsoft CEO: The era of superintelligence cannot rely on AI "black boxes"; an external control and audit system must be established.
Microsoft CEO Satya Nadella wrote that as Super Intelligence systems rapidly advance in capability, the industry needs to rebuild the AI trust architecture and cannot leave responsibility for the actions carried out by AI to the model providers.
When traditional software systems were widely deployed over the past few decades, people could trace the specific code paths corresponding to program behavior. But today's frontier AI models, although their capabilities already exceed those of traditional software systems, cannot clearly attribute model outputs to specific training data or model weight configurations. Enterprises are currently exposing complex AI agents to sensitive data and giving them the ability to perform critical tasks, so superintelligent systems cannot be treated as incomprehensible "nested black boxes," with their recommendations simply accepted or rejected. Instead, controllable systems must be built that can observe behavior, test boundaries, and restrict actions at any time.
Regarding governance principles, Nadella proposed that superintelligent systems need to have:
- Model diversity: avoid relying on a single model as the sole dependency for critical decisions;
- Comprehensive observability: all important AI behavior should leave tamper-proof and human-readable records;
- Continuous validation capability: continuously test how the system performs under failures, attacks, and anomalous conditions;
- Independent control and audit: models should not simultaneously control system behavior and the evidence used to verify their own behavior;
- Risk isolation mechanisms: assume by default that models may fail, and provide the ability to pause or shut them down at any time;
- Incident disclosure mechanisms: promptly disclose causes and improvement measures when failures or security incidents occur.
Nadella also emphasized that chain-of-thought (CoT) transparency is an important foundation for AI governance, but CoT transparency alone is not enough, because it still cannot be guaranteed that model outputs will always have reliable interpretability. The most trustworthy superintelligent systems in the future are not the "most trustworthy models," but systems that can still operate safely even if the model cannot be fully trusted.
The Ledger incident continues to escalate: attackers have moved $7.45 million in ETH to Tornado Cash.
Addresses associated with the CryptoBilis Ledger hardware wallet incident deposited 2,990.3 ETH, worth about $7.45 million, into Tornado Cash between October 9 and 10.
Monitoring data shows that the attackers had previously withdrawn the related funds in a dispersed manner to 14 addresses, then used NEAR Intents to bridge the funds to the ZEC network and further carried out privacy-preserving processing. There are signs of address linkage during the attackers' fund transfers. Some withdrawal transactions reused wallet addresses previously used for deposits; other withdrawal transactions were initiated by wallets associated with the wallet address that paid gas fees when the funds were stolen, helping researchers trace the flow of funds.
At present, the related funds have been transferred and hidden through multiple on-chain paths. Previously, CryptoBilis was reported to be involved in a Ledger hardware wallet supply chain security incident. Ledger has confirmed that an affected user's device contained an unauthorized hardware implant and said it is cooperating with relevant parties and law enforcement agencies in the investigation. Ledger previously reminded users who purchased devices from affected distribution channels and have not yet completed initialization not to use them for the time being; users who have already completed setup may consider migrating assets to a new device using a new seed phrase.
Data: CRO, ARB, and other tokens will see large unlocks next week, with CRO's unlock worth about $69.5 million.
Token Unlocks data shows that tokens including CRO, ARB, and STRK will see large unlocks next week, among them:
Cronos (CRO) will unlock about 1.17 billion tokens at 9:03 a.m. Beijing time on October 17, about 2.33% of circulating supply, worth about $69.5 million;
Arbitrum (ARB) will unlock about 92.65 million tokens at 8:00 p.m. Beijing time on October 16, about 1.56% of circulating supply, worth about $18.4 million;
Starknet (STRK) will unlock about 127 million tokens at 8:00 a.m. Beijing time on October 15, about 3.37% of circulating supply, worth about $13.9 million;
deBridge (DBR) will unlock about 618 million tokens at 8:00 a.m. Beijing time on October 17, about 10.25% of circulating supply, worth about $12 million;
Aptos (APT) will unlock about 11.31 million tokens at 4:00 a.m. Beijing time on October 12, about 0.64% of circulating supply, worth about $9.5 million;
Sei (SEI) will unlock about 55.56 million tokens at 8:00 p.m. Beijing time on October 15, about 0.84% of circulating supply, worth about $3.7 million.
Michael Saylor once again posts Bitcoin Tracker information, possibly to disclose holdings changes next week.
Michael Saylor once again posted Bitcoin Tracker-related information on X, with the caption "There's always room for more orange." Based on previous patterns, Strategy usually discloses Bitcoin holdings changes the day after such messages are posted.
U.S. Treasury Secretary Bessent: Trump expects no military conflict before the midterm elections.
U.S. Treasury Secretary Bessent said that U.S. President Trump expects no military conflict before the midterm elections, that diesel transactions with Russia are beneficial to Americans, and that we will use all legal authorities to conduct diesel transactions with Russia.
Trader Killa: BTC may rally before the U.S. midterm elections, with the target focused on the $95,000 range.
Trader Killa posted his view on Bitcoin's (BTC) future price action, saying the most ideal scenario is for BTC to continue rising before the U.S. midterm elections, strengthening the bullish market narrative and breaking above its previous high; afterward, the market may correct after the midterm elections as in past cycles, but this pullback is not expected to lead to the formation of a new cycle low, and may instead establish a higher low.
Killa said that if BTC chooses to decline before the midterm elections, he believes the market is more likely to see a rebound after the election, with the target focused near $95,000. Midterm elections are usually seen by the market as a potential bullish or bearish catalyst. But based on current price action, market sentiment, and recent long liquidations, he believes shorts currently face higher risk than longs. He also cited historical data saying that in the past 4 U.S. midterm elections, 3 saw weaker market conditions 1 to 2 months after the election, which by that sample implies a probability of about 75%. Therefore, he believes the market may be more inclined to see a clear release of risk after the midterm elections rather than before them.
However, Killa emphasized that his judgment is based on historical data and market statistics, not simply a hope that prices will rise. He said he still holds the previously established 10x BTC long position, as well as long positions established near $62,600 and $76,400, and all positions remain at full size.
Ledger supply chain attack suspected to have spread to Europe, user says hardware implant found in device from official distributor.
Security researcher Johannes disclosed that a hardware wallet purchased by a user from an official Ledger distributor in Europe was found weeks after purchase to contain an unauthorized hardware implant. It is said that suspicious wiring not present in normal Ledger hardware appeared inside the device, indicating that the device may have been physically tampered with before sale. The researcher said the implant appears to use an earlier design, while newer implant components may be hidden behind the screen, making detection more difficult.
It is worth noting that no fund theft has occurred from the device so far. The researcher said it is still unclear whether the implant is malfunctioning or whether the attacker is still waiting for more user devices to be compromised.
Previously, the CryptoBilis Ledger incident had already raised concerns about hardware wallet supply chain security. As suspected related cases have appeared one after another in Asia, South America, and Europe, market concerns about the scope of impact of this supply chain attack have further intensified. In addition, the researcher pointed out that Ledger's official software Genuine Check is mainly used to verify device authenticity and may not be able to detect unauthorized physical hardware modifications if the original Secure Element has not been compromised.
Analyst: Bitcoin may need to break through $84,000-$85,000 to determine the next trend.
Crypto analyst Darkfost said that when Bitcoin's price reached $83,000, about 53% of capital cost was above that price, meaning current buyers' holding costs are higher than those of more than half of market participants.Darkfost pointed out that the $84,000 to $85,000 range is the largest concentration zone of Bitcoin holdings, where many investors will react at this key price level. This zone is an important resistance level that Bitcoin needs to break through for its subsequent trend. If the price pulls back, the $79,000 to $77,000 range may become a potential support zone.
PaperTrade responds to fairness and manipulation concerns: queuing mechanism ensures fairness, some users manipulating BBO cannot sustain profits
PaperTrade published a post responding to community discussions after its launch, stating that its fair launch mechanism, small-order priority, and BTC/ETH market volatility issues were all considered during the design phase. Trading volume in the first 6 hours after launch exceeded that of the stock market during the same period. One day after launch, the platform has been running as an exchange supporting 100x leverage, with liquidity pool (LP) size reaching $5 million, and $25 million in rewards have been distributed to staking users.
Regarding the controversy over the fair launch mechanism, PaperTrade said that under technical constraints, it is impossible to give small orders exactly the same priority as large orders, otherwise the front end could face a large number of spam requests causing congestion and affecting the overall trading experience. The team said the existing queuing mechanism is as fair a solution as possible designed under these constraints. As for abnormal trading and manipulation concerns in the BTC/ETH market during the launch period, PaperTrade said this was not an omission in a mechanism designed over 6 months, but rather due to a relatively loose open interest cap (OI cap) set to cope with large demand in the early launch period. The team said that during periods of heavy queuing pressure, tightening position limits too early could further worsen the user experience.
PaperTrade said that as early launch traffic declined, the team has begun tightening OI limits on-chain and at the relay layer to reduce room for market manipulation. The team said that in such systems, manipulation is always possible, and the key is to use parameter adjustments to make manipulation difficult to profit from economically and to make related attempts costly. Some users who tried to manipulate the Hyperliquid BBO (best bid and offer) ultimately did not sustain profits. One relevant user continued trying to operate after making a profit and ultimately returned most of the profit to the platform through subsequent operations. Some users also chose to cancel affected trades in exchange for corresponding Paper points rewards. The team hopes to build a trading mechanism that operates at scale in an adversarial environment and to continuously optimize market parameters to avoid either the platform or traders gaining an unreasonable advantage.
Billionaire Adam Weitsman buys 117 Pudgy Penguins NFTs
Billionaire Adam Weitsman posted that last weekend he bought 117 Pudgy Penguins on-chain. Weitsman said the project is currently going through a difficult period, but he wants to support one of his favorite collections.
In August last year, Adam Weitsman purchased more than 5,000 NFTs from Yuga Labs, including Otherdeeds, Mega Kodas, and Weapon Kodas, to continue expanding his collection.
XRP Ledger Foundation clarifies misunderstandings related to security fix: vulnerability did not mint additional XRP, community consensus drove the patch
The XRP Ledger Foundation published a post clarifying questions raised by a recent XRP Ledger security fix. First, the vulnerability did not create any new XRP. The total supply of XRP was fixed at 100 billion when the ledger launched, and no transaction can mint additional tokens. The vulnerability could once bypass this rule and was fixed in version 3.4.1 (about two weeks ago). All ledger data is publicly verifiable, and approximately 99.986 billion XRP currently exists.
As to why the vulnerability was not discovered in time, the foundation said ordinary payment transactions are far from enough to trigger it; hundreds of deliberately constructed operations are required. AI enables both malicious attackers and security researchers to discover such vulnerabilities more quickly. Going forward, it will strengthen formal verification, AI adversarial testing, collaboration with security researchers, and its bug bounty program.
On decentralization and the method of fixing it. The foundation said a public amendment vote would expose the vulnerability's location in advance. The community (including XRPLF, RippleX, core developers, and validators) reached social consensus and directly released a fix patch. No single party could make this decision unilaterally. Every validator and node operator can independently choose which software to run; enforcement of version 3.4.1 was carried out based on the regular "amendment" voting mechanism: it required more than 80% validator support and had to be maintained for two weeks. Protocol changes still follow the amendment process.
Coinbase CEO: After fine-tuning the Qwen3.5-9B model, fraud prevention has lower cost and faster speed
Coinbase CEO Brian Armstrong said that after the company used proprietary data internally to fine-tune the open-weight model Qwen3.5-9B, it outperformed frontier large models on the specialized task of fraud prevention, while also being lower cost and faster. Armstrong said this model will become more common within enterprises in the future: frontier models are good at general tasks, while specialized models for niche domains will perform better. Coinbase is simplifying the process for internal employees to fine-tune models, even providing internal skill instructions to help quickly start training, and expects some backend services could be completely replaced by this kind of architecture.
Two Ethereum Foundation-linked wallets transferred 4,393 ETH to Kraken in 4 hours, about $11.13 million
Two Ethereum Foundation-linked wallets transferred 4,393 ETH (about $11.13 million) to the exchange Kraken 4 hours ago. The wallet that sent out ETH today received 59,751 ETH from an Ethereum Foundation wallet 10 years ago, of which 49,751 ETH were gradually transferred to the exchange Kraken over the past 10 years at an average price of about $658.
Jeonbuk Bank in South Korea launches a Korean won loan program collateralized by Bitcoin
Jeonbuk Bank, under JB Financial Group, launched South Korea's first Korean won loan program linked to digital assets in the banking sector. Initially it is only available to corporate clients, with Bitcoin as the sole collateral, and loan proceeds are limited to business operating funds. The bank does not directly hold or manage Bitcoin; instead, it is custodied by a qualified virtual asset service provider. In the event of default, the bank does not acquire ownership of the virtual assets, but instead, under the revised Civil Execution Rules, recovers the claim after liquidating the collateral through court auction and other procedures. Jeonbuk Bank has completed stress testing and established a valuation system based on the weighted average price across multiple global exchanges.
Binance bStocks will distribute Micron Technology stock dividends to MUB holders
Binance will distribute Micron Technology (MU) stock dividends to users holding MUB through bStocks. After deducting applicable withholding taxes, fees, and other related expenses, the net cash dividend will be automatically reinvested in the same underlying security, and eligible users will receive dividends in the form of MUB stock tokens. Users holding MUB balances on-chain will receive bStocks dividends through a multiplier adjustment.
The snapshot time for dividend eligibility is October 14 at 8:00 (UTC+8). Binance will suspend the 1:1 exchange service between MU stock and MUB bStocks, as well as MUB deposits, withdrawals, and conversion functions, on October 14 at 07:30 (UTC+8), and will automatically resume after the distribution is completed. Dividends generated by other accounts will be credited to the spot account.
South Korea's KOSPI index extends decline to 3%, SK Hynix falls more than 4%
South Korea's KOSPI index extended its decline to 3%, now at 6427.08 points. SK Hynix fell more than 4%, and Samsung Electronics fell nearly 4%.