Security Shakes, Geopolitical Jitters Shape Crypto Markets (2026-05-16)

ZachXBT: Suspect Dritan Kapllani Jr. has transferred approximately $2.59 million

On-chain investigator ZachXBT stated in his Telegram channel that the suspect Dritan Kapllani Jr. transferred approximately $2.59 million (1.99 million DAI and 259 ETH) today from an address beginning with 0x4487d to an address beginning with 0x67ec1 via three hops; the funds remain held at this destination address.

Previously, on May 12, ZachXBT published an investigation revealing that U.S.-based threat actor Dritan Kapllani Jr. conspired with Trenton Johnson to carry out a $19 million cryptocurrency theft via social engineering. Dritan has been named as a co-conspirator (CC-1) in Trenton’s criminal complaint but has not yet been formally charged.

[Foresight News]

According to officials: Israel is preparing to resume military operations against Iran

Late on the 15th local time, a senior Israeli official stated that Israel is preparing for the imminent resumption of military operations against Iran, which could “last for several days or even weeks.” The official said: “The Americans understand that negotiations with Iran have made no progress.”

He added: “We are preparing for combat operations lasting several days or even weeks and await President Trump’s final decision. We will learn more within the next 24 hours.”

[Odaily]

Whale Loracle.hl added 122,305 HYPE to its HYPE airdrop short position, worth $5.40M.

According to Onchain Lens monitoring, whale Loracle.hl added 122,305 HYPE short orders, worth $5.40 million.

Currently, he holds 1.36 million HYPE short orders, worth $59.90 million, with a liquidation price of $61.71.

[Odaily]

4 wallets withdrew over 89,000 ETH worth nearly $200.00M from FalconX and Kraken

On May 16, according to Onchain Lens monitoring, 4 wallets withdrew 89,026 ETH worth $197.85 million from FalconX and Kraken.

[PANews]

Analysis: US Treasury yields show signs of getting out of control, Walsh faces a “big test” at the beginning of his term

The recent sharp fluctuations in the U.S. Treasury market pose a significant early test for incoming Federal Reserve Chairman Kevin Warsh.

Subadra Rajappa, Head of U.S. Rates Strategy at Société Générale, said in a Bloomberg Television interview on May 15 that bond yields have shown clear anomalies due to expectations of accelerating inflation.

Rajappa pointed out that the surge in energy prices triggered by the Iranian war is exacerbating inflationary pressures in the United States, which will limit Warsh’s room to push for interest rate cuts, a policy direction he has previously supported and that U.S. President Trump has demanded. She bluntly stated, “I’m starting to get a little worried because bond yields do look a little out of control, and we should pay close attention to the signals the bond market is sending.”

Expectations in the interest rate market have also shifted rapidly. Bloomberg-compiled data shows that traders now expect the Fed to raise interest rates by nearly two-thirds before December. On February 27, the day before the U.S. and Israel took military action against Iran, the market generally bet on more than two rate cuts this year.

[Odaily星球日报]

Foreign media: Anthropic is seeking another $30 billion in funding.

On May 15, according to The Wall Street Journal, Anthropic is seeking to raise an additional $30 billion in funding.

The artificial intelligence laboratory is currently absorbing the majority of venture capital funding in the sector.

[PANews]

Lombard gradually phases out LayerZero, planning to migrate $1.00 billion in BTC collateral assets to Chainlink

Cross-chain infrastructure security is once again under scrutiny as Kelp DAO’s LayerZero bridge suffers a $292.00 million theft. DeFi protocols Kelp DAO, Solv Protocol, Re, and crypto exchange Kraken have all taken similar migration measures, with the total value of this outflow reaching approximately $4.00 billion.

Decentralized finance protocol Lombard has become the latest project to join the migration wave, announcing that it will gradually abandon LayerZero and migrate over $1.00 billion in Bitcoin-backed assets to Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Lombard issues Bitcoin-related tokens including LBTC and BTC.b.

It is reported that Lombard’s first batch of migrated assets covers the Solana, Etherlink, Berachain, Corn, and TAC chains, and the use of LayerZero on Morph and Swell will also be terminated. As of now, LayerZero has not responded to requests for comment.

[CoinDesk]

Euler will directly operate the HyperEVM lending market, and HypurrFi has completed the brand transfer.

Euler Labs tweeted that its lending protocol, Euler, will directly operate the market coverage on the HyperEVM network within its own ecosystem.

Previously, HypurrFi operated Mewler (a lending market based on Euler) on HyperEVM through authorized deployment. With the closure of the HypurrFi brand and the transfer of the Euler contract stack, the Hyperliquid lending market will also be integrated into the official Euler interface. Clearstar Labs will continue to serve as the Curator for Prime, Yield, and other markets on HyperEVM.

Euler stated that this is a transition at the operational level and not a security incident. Users holding HypurrFi positions should refer to HypurrFi’s migration process.

[Foresight News]

Euler takes over HypurrFi Mewler market operations, HypurrFi will be gradually shut down and the migration will be completed.

Euler Finance has announced that it will take over the maintenance and operation of the Euler contract stack, known as Mewler, under HypurrFi on Hyperliquid EVM. The related infrastructure is undergoing a smooth handover, and Clearstar Labs will continue to serve as the risk manager for the Prime, Yield, and Earn vaults. HypurrFi Scale and Pooled Markets will be gradually phased out and orderly liquidated as planned in the coming weeks, but all existing markets will remain solvent and operating normally, with no security vulnerabilities or emergency parameter adjustments.

During the migration, the new lending function for some Pooled assets has been frozen, but HYPE, USDC, and USDT0 can still be used for liquidity provision to allow borrowers to gradually close their positions. Euler emphasized that its isolated lending architecture on HyperEVM will continue to serve as core infrastructure, jointly maintained by Euler and Clearstar Labs.

The HypurrFi team stated that user deposits, positions, and collateral assets remain fully secure, and that this adjustment is a proactive strategic migration rather than a security incident or protocol failure. According to the plan, Euler Prime and Yield markets will become the main lending and yield market entry points on HyperEVM in the future; the HypurrFi brand will be gradually phased out, and related support services will be closed after May 28, with full market liquidation expected to be completed by July 15, 2026.

HypurrFi also reminded users to be aware of risks and phishing links during the migration process, to only operate through official channels, and to use the built-in migration tool to migrate Pooled positions to Euler Prime or Yield markets.

[Odaily]

THORChain: Asgard Vault Attacked, Losing Approximately $10.70 Million, Trading Functionality Suspended

THORChain has issued an announcement confirming that one Asgard vault has been compromised, and trading has been temporarily suspended. Preliminary indications suggest that user funds remain secure, with only the protocol’s own capital affected. THORChain stated that the network automatically detected anomalous behavior and halted signing activities, thereby preventing further fund withdrawals. The estimated loss is currently around $10.70 million.

The announcement states that out of six Asgard vaults, one is suspected to have been breached; the associated node has triggered the RUNE staking slashing mechanism due to unauthorized transfers. Churn activity across the network has been paused, and new node onboarding—as well as related operations—will be delayed until the investigation and remediation are complete.

THORChain indicated that preliminary findings show users’ individual swap transactions remain unaffected. It has also instructed all node operators to immediately audit their infrastructure, key management systems, and runtime environments for any anomalies.

[ChainCatcher]

Sources say SpaceX stock may be listed as early as June 12.

According to Reuters, sources said that SpaceX will determine the initial public offering price as early as June 11, and the stock will be listed on June 12.

SpaceX will choose Nasdaq as the listing location for its initial public offering, and SpaceX shares will be traded under the code “SPCX”.

[Odaily Planet Daily]

THORChain: Confirms Asgard vault was attacked, with losses of approximately $10.70 million, user funds unaffected

THORChain announced on Twitter that one of its six Asgard vaults was attacked, with estimated losses currently at approximately $10.70 million. Only the protocol’s own funds were affected; users’ individual swap transactions remain unaffected.

After the network automatically detected anomalous behavior, signing activities were suspended to prevent further outbound transactions. Currently, Churn activities have been paused, and the addition of new chains and any operations requiring Churn will be delayed until the network stabilizes.

THORChain has instructed all node operators to immediately inspect their infrastructure and key management systems for anomalies. Node operators involved with the compromised vault have had their staked RUNE automatically slashed by the protocol as a result of the unauthorized outbound transaction. The investigation is ongoing.

[Foresight News]

Hyperliquid Responds to Regulatory Pressure, Stating That On-Chain Perpetual Contracts Are More Transparent and Efficient

The Hyperliquid Policy Center stated that Hyperliquid, as an on-chain perpetual futures trading platform, offers a new model for market integrity and transparency. The organization noted that Hyperliquid publicly discloses all on-chain trading records in real time, aiding regulatory bodies and law enforcement agencies in monitoring, identifying, and investigating activities—thereby reducing risks of insider trading and price manipulation.

Earlier reports indicated that ICE and CME are engaging with U.S. regulators to urge the CFTC to strengthen oversight of Hyperliquid, citing concerns that its 24/7 commodity trading could pose manipulation risks to markets such as global oil prices.

Hyperliquid has recently experienced rapid growth in the commodity trading sector, partly due to its support for non-traditional trading hours—including weekends. This week, 21Shares and Bitwise also launched ETFs linked to Hyperliquid, highlighting increased trading activity in oil and metals on the platform.

The Hyperliquid Policy Center, however, argues that round-the-clock trading actually enhances market efficiency: price movements do not halt during traditional exchange closures, continuous trading helps mitigate gaps between trading sessions, and improves price discovery.

[Odaily]

IREN Limited Secures $3 Billion to Transition From Bitcoin Mining to AI Infrastructure Services

IREN Limited closed a $3 billion convertible notes offering to shift focus from cryptocurrency mining to AI services.

The notes have a 1% annual coupon, mature in 2033, and were sold privately to institutional buyers, raising $2.96 billion net proceeds.

Analyst: Clarity Act legislation still faces obstacles

The U.S. Senate Banking Committee has advanced the crypto market structure bill, the Clarity Act, by a vote of 15 in favor and 9 opposed. This bill aims to establish, for the first time at the federal level, a comprehensive regulatory framework for the crypto industry and has garnered support from Democratic Senators Ruben Gallego and Angela Alsobrooks.

Although the industry widely views this committee passage as a positive development, analysts believe the bill still faces significant hurdles before becoming law. TD Cowen raised its probability estimate for the bill’s passage from roughly one-third to 40%, noting that some Democratic lawmakers have already expressed willingness to find pathways to support it—yet substantive disagreements remain unresolved.

Previously, the bill had long been hindered by issues including stablecoin yield arrangements, conflicts of interest, and ethics provisions. Additionally, to overcome filibuster obstacles in the Senate, the bill still requires more Democratic support than it currently holds. Benchmark analysts also pointed out that the current tally of supporting votes is insufficient to guarantee final passage.

[The Block]