Author: Gabby

RippleX is taking a rigorous approach to security by applying formal verification to the XRP Ledger’s upcoming native lending system. This advanced technique, which uses mathematical models to prove the absence of certain bugs, goes beyond traditional testing to catch hidden flaws in the Layer-1 code. The review covers the XLS-66 Lending Protocol and XLS-65 Single Asset Vaults, aiming to ensure the system’s safety before it goes live on the Mainnet.

The process involves collaboration with Common Prefix, a protocol research firm. Together, they create abstract models of the intended behavior and use machine-checkable methods to test safety rules against the actual implementation. This approach can detect edge cases that standard tests might miss, especially in complex financial systems where errors like small accounting discrepancies could amplify over time.

Vet, an XRPL Foundation validator, has dubbed this initiative “Fortress XRP,” noting that the technology typically used to safeguard nuclear power plants and aircraft is now being applied to the XRP Ledger. However, Vet clarified that the label is his personal assessment, not an official certification. The formal verification process cannot guarantee complete absence of bugs, as each proof depends on the specific model and properties chosen.

XLS-66 proposes fixed-term, uncollateralized loans funded through Single Asset Vaults. Loan brokers would set terms and manage risks, while off-chain credit assessments would evaluate borrowers before on-chain fund transfers. The design includes optional first-loss capital to cushion defaults and supports XRP and issued assets, with compliance features like freezing or clawing back tokens. Despite the progress, the lending protocol still requires validator approval through the amendment process to be activated on the Mainnet.

This security review follows a previous flaw discovered in the Batch transaction feature, which led to its removal in version 3.1.1. The ongoing use of formal verification highlights Ripple’s commitment to building a secure and reliable Layer-1 financial infrastructure.

Blockchain investigator ZachXBT has concluded that the $31 million exploit affecting Humanity Protocol was not an insider theft. After analyzing how the stolen funds were moved, he determined that the incident stemmed from a genuine private key compromise rather than a scheme orchestrated by the project team.

The initial suspicion of insider involvement arose because of unusual market-making and over-the-counter trades occurring just before the June 25 token unlock. However, ZachXBT now believes these activities were unrelated to the security breach. The hacker likely exploited an already inflated token price, which had been driven up by aggressive trading in the weeks leading up to the attack.

On June 9, attackers drained over 17 wallets associated with Humanity Protocol, causing the H token to lose more than 80% of its value. The perpetrator converted roughly $23.7 million into Ethereum, with about $7.9 million remaining in H. Later, on BNB Smart Chain, the attacker gained proxy administrator rights and minted an additional 100 million H tokens, valued at around $12.9 million.

Humanity Protocol CEO Terence Kwok confirmed that a private key belonging to a foundation member was compromised. He advised users to avoid interacting with the project’s bridge or liquidity pools while investigations continued. Despite the clarification, questions persist about the project’s market-making agreements and the token’s price manipulation before the hack.

H reached an all-time high of $0.844 on June 2 but plummeted to about $0.123 after the exploit, with trading volume surging past $605 million. The scheduled token unlock on June 25 may have contributed to the vulnerability, as some early investors chose immediate release over longer vesting.

BNB has experienced a significant decline of over 16% from its peak near $720, and a prominent megaphone pattern on the daily chart indicates that the token may test the $500 support level. The price currently hovers around $602 after bouncing from a low of $560 during a market-wide liquidation event that saw nearly $1.8 billion in forced closures across crypto derivatives. This sell-off was exacerbated by weak risk appetite, as US spot Bitcoin ETFs faced consecutive outflows and capital shifted toward AI stocks.

On the weekly chart, a multi-year ascending trendline that once served as support has been broken and is now acting as resistance between $700 and $750. A failed retest of this level confirms bearish control over the longer-term trend. Even though the ecosystem continues to grow—with Binance launching the BNB Hack AI Trading Agent Edition—the price remains under pressure. The RSI on the weekly timeframe has dropped to around 40, and the MACD is still below zero, indicating that buyers lack strength.

The daily chart reveals a megaphone pattern characterized by expanding highs and lows, a setup that often signals heightened volatility. After testing the upper boundary near $720, BNB fell sharply to the lower boundary at $560, where buyers stepped in. However, the token remains beneath the Supertrend resistance at $673, which is a key level to watch. If the price fails to break above this threshold, it could revisit the lower edge of the megaphone pattern and the major support zone near $500. On the upside, a move above $673 might allow a retest of $720 and the weekly resistance area.

Liquidation data suggests that short positions are clustered above current prices, meaning a rally toward $650–$680 could trigger a squeeze and fuel further gains. For now, traders are focused on the battle between support at $560 and resistance at $673, with the outcome likely determining whether BNB recovers or slides toward the critical $500 level.

LINK changed hands near $7.86 on June 9 as a notable increase in wallet numbers contrasted with a languid price structure. The token slipped more than 11% over the past week and remained under $8, according to crypto.news data.

Analytics provider Santiment reported over 535,000 wallets now hold at least one LINK, reaching the highest tally since December 2022. While this signals growing network participation, the asset still hovers far from previous cycle peaks. The upward trend in wallet count suggests broader user adoption, yet price action must reclaim key moving averages before a breakout can be confirmed.

LINK traded between $7.81 and $8.12 in the last 24 hours. Its market capitalization stood near $5.72 billion with daily volume around $286 million. The token remains below its nine-day moving average of roughly $8.03 and the 21-day moving average of $8.78. This positioning confirms that recent price weakness persists relative to short-term norms.

Technically, a daily close above $8.03 would offer the earliest sign of strengthening momentum. Bulls would then need to tackle $8.78 before targeting the 50-day exponential moving average near $9.04. Immediate support sits around $7.80; a breakdown could expose $7.48, then $7.15, and eventually the recent low near $6.99. Since February, LINK has traded below $10 after six straight monthly declines. Recovering above $9.04 and $9.48 would improve the broader outlook, while the 200-day moving average at roughly $10.70 remains a major resistance.

The Chaikin Money Flow indicator reads around -0.10, meaning selling pressure still dominates. This negative signal tempers the wallet growth narrative, as many new holders may own only small amounts. The relative strength index recently recovered from oversold territory to near 35, indicating selling has eased but buying conviction is still weak. The MACD and its signal line remain below zero, confirming a bearish undertone despite the recent stabilization attempt.

Institutional demand has been a bright spot. US spot Chainlink ETFs recorded roughly $1.81 million in net inflows on Monday, lifting total net assets to $101.21 million, per SoSoValue data. These funds have avoided negative daily flows since their December 2 launch, providing a base of spot demand. Derivatives activity also picked up, with open interest rising over 4% to $373.06 million, futures volume around $480.8 million, and liquidations totaling about $320,000 in 24 hours, according to Coinglass. The open-interest-weighted funding rate turned positive to 0.0024% after briefly dipping to -0.0023%, showing mild demand for longs but still lacking strong bullish conviction.

Chainlink’s network utility remains significant. Cross-chain and oracle infrastructure has secured over $110 billion in value by late May, according to related reporting. For LINK to reclaim $8.78, it must first defend $7.80 and close above $8.03. A successful push beyond $8.78 could clear a path toward $9.04 and $10. Conversely, losing $7.80 would put $7.48 and $6.99 back in play.

SBI Shinsei Bank, a Japanese financial institution, has rolled out a new promotional campaign that ties deposit interest to cryptocurrency vouchers. Under this program, customers earning interest on their deposits will receive extra rewards worth 20% of that interest in the form of vouchers. These vouchers can later be exchanged for Bitcoin, Ether, or XRP.

The campaign runs for three months starting on Wednesday and applies to both regular deposits and time deposits with maturities ranging from three months to five years. Customers will receive their standard interest in Japanese yen, plus the additional vouchers. To convert these vouchers into digital assets, customers need to open an account with SBI VC Trade, the cryptocurrency exchange owned by SBI Group. The vouchers can be redeemed during a specified period.

This initiative gives traditional savers a new way to gain exposure to cryptocurrencies without directly buying them on an exchange. It is part of SBI Group’s broader strategy to integrate digital assets into its financial services. Earlier this year, the group partnered with Visa and Aplus on a crypto rewards credit card that lets users earn Bitcoin, Ethereum, and XRP through everyday spending. Additionally, SBI VC Trade launched a retail USDC lending service in March, where users can lend stablecoins to the exchange for a fixed period to earn yield. The group has also been expanding its exchange operations, including a potential acquisition of Bitbank and the absorption of Bitpoint Japan. Investment products like crypto-focused trusts and ETFs are also in development through SBI Securities.

Humanity Protocol has reported a security breach resulting in the theft of over $36 million worth of H tokens. The exploit occurred after attackers gained unauthorized access to administrative keys for the protocol’s bridge infrastructure on Ethereum and BNB Smart Chain.

According to the project’s June 9 update, the attack began when a compromised employee laptop allowed the hacker to obtain control over bridge administration systems. Using three of six compromised Gnosis Safe owner keys for the Ethereum bridge’s Hyperlane ProxyAdmin, the attacker transferred ownership to their wallet, upgraded the contract to a malicious version, and moved approximately 141.2 million H tokens in one transaction.

On BNB Smart Chain, the attacker similarly took over three of five Safe owner keys, enabling them to deploy a contract with an unlimited mint function and create 200 million H tokens across two transactions. On-chain analyst Specter initially reported losses near $19 million, but later tracking raised the figure above $30 million, with roughly $23.7 million swapped for Ethereum and $7.9 million remaining in H tokens.

Humanity Protocol has suspended deposits and withdrawals on affected bridges and is coordinating with exchanges and law enforcement to investigate and recover funds. CEO Terence Kwok stated the team is working with security specialists but has not announced a reimbursement plan. The protocol’s native token plummeted over 90% in market reaction. Humanity Protocol operates a zkEVM-based identity network using zero-knowledge proofs and palm biometrics for verification.