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Evercrest (KelpDAO) has filed a civil claim in British Columbia against LayerZero and CEO Bryan Pellegrino over the April 2026 rsETH bridge exploit. KelpDAO alleges LayerZero failed to disclose technology risks or prevent its security infrastructure from being compromised after reviewing and approving KelpDAO’s deployment and configuration in writing. The exploit resulted in about 116,500 rsETH, worth roughly $292 million at the time, being stolen. Pellegrino called the claims meritless and said he would defend the case in Vancouver.

The Federal Reserve’s latest 25 basis point rate hike is rippling through markets far beyond what the size of the move suggests. According to The Kobeissi Letter, Fed Chair Kevin Warsh signaled the central bank remains firmly committed to its 2% inflation target regardless of political pressure, and markets are now pricing in a full 100 basis points of additional hikes by next summer. Bond markets have reacted sharply, trading as though the Fed should have raised rates by 50 basis points instead of 25. An attempted intervention by the US Treasury barely moved the needle, a sign Kobeissi called a major shift in sentiment. The average 30-year mortgage rate jumped 17 basis points to 7.45%, its highest level since November 2023.

Japan’s 10-year government bond yield surged to 3.055%, its highest level in three decades. Higher yields raise borrowing costs, add pressure on Japan’s heavily indebted government, and make cheap yen-funded trades less attractive. The move tracked a broader rise in US Treasury yields, which UOB said had climbed to near two-decade highs across the curve. Earlier this month, Japan’s benchmark borrowing costs also touched a three-decade high after US Treasury Secretary Scott Bessent signaled he expects Tokyo and the Bank of Japan to support the weakening yen.

The CFTC says it will move forward with clear crypto market rules on its own, despite the CLARITY Act failing to pass. “The agencies have a ton of existing statutory authority. The President was prepared for it, we’re prepared for it, and so it’s go time,” said Chairman Mike Selig. Selig said the agency will “continue to ship rules,” signaling the CFTC intends to establish defined crypto regulations independently rather than waiting for Congress to revisit the legislation.

Bitcoin and Ethereum face a combined $18 billion options expiry this Friday, the largest single expiry of 2026. Bitcoin’s 184,000 contracts carry $15.9 billion in notional value, with max pain at $75,000, while calls dominate at $9.4 billion versus $6.5 billion in puts, crowded around $90,000 and $100,000 strikes. Ethereum’s 777,000 contracts total $2.1 billion notional, with max pain at $2,250. Calls lead there too, $1.32 billion versus $813 million in puts, spread across strikes from $3,000 to $4,000, signaling traders are heavily positioned for upside on both assets.

Former quant trader Beni questioned Kalshi’s reported crypto trading volumes, citing about $539 million in 24-hour ETH-PERP volume against roughly $3.1 million in open interest. Kalshi’s crypto lead IcoBeast said Beni had confused prediction markets with perpetual futures and noted that rebates are not offered for crypto prediction markets. He also defended the platform’s market-making incentives and denied claims that Kalshi selects its self-clearing members. Beni said he received new non-public information and plans to disclose more after consulting lawyers.

USD/JPY nearly hit 158 even after the Bank of Japan raised rates by 25 basis points and hinted at further hikes ahead. Normally, a BOJ rate hike strengthens the yen, but this time the Fed also hiked rates, with another increase expected this month, keeping the US-Japan rate gap from narrowing and leaving yen borrowing still profitable. That leaves the BOJ in a difficult spot. If rate hikes alone can’t strengthen the yen, intervention becomes the remaining option, likely through selling US Treasuries.