Researchers found that Polymarket’s five-minute Bitcoin prediction markets create incentives to manipulate spot prices around contract settlement, proposing longer settlement windows as a potential fix. Researchers at Stanford University and Singapore Management University found that Polymarket’s five-minute Bitcoin prediction markets create incentives for traders to manipulate spot prices around settlement, allowing sophisticated participants to profit at the expense of retail traders. The study examined contracts in which traders bet on whether Bitcoin’s price would end above or below a predetermined level after five minutes. Because the contracts settle using Chainlink price feeds based on Bitcoin’s price at the end of each trading window, traders have an incentive to influence the spot market immediately before settlement. Analyzing trading activity before and after Polymarket introduced the contracts in July 2024, the researchers found sharp increases in Bitcoin spot-market order flow just before settlem...
Dubai’s Virtual Assets Regulatory Authority approved the London-headquartered fintech company for broker-dealer, management and investment, and exchange services in the UAE. UK-based financial company Revolut has received approval from the Virtual Assets Regulatory Authority (VARA) of Dubai to offer crypto-related services in the United Arab Emirates (UAE). In a Wednesday notice, Revolut said that, following a green light from the Central Bank of the UAE for payment activities, VARA gave in-principle approval for the company to offer broker-dealer, management and investment, and exchange services in the UAE. The company said its services via the app and the Revolut X exchange would allow UAE-based users to buy, sell and hold digital assets. “This approval lays the foundation for Revolut to introduce its trusted virtual asset services within a regulated environment,” said Revolut’s head of digital assets in the UAE free zone establishment, Joseph Khair. Read more
President Donald Trump’s pick for US Attorney General faced criticism from members of the Senate Judiciary Committee on his approach to crypto enforcement and the pardon of former Binance CEO Changpeng Zhao. Acting US Attorney General Todd Blanche faced backlash Wednesday over the Justice Department’s (DoJ) enforcement of crypto-related crimes and other actions as President Donald Trump’s former personal attorney appeared before a Senate hearing considering his nomination to lead the agency. The ranking Democrat, Senator Dick Durbin, used part of his opening statement at the Senate Judiciary Committee hearing to criticize Trump’s AG pick for what he described as “dismantling DoJ’s enforcement team and shutting down ongoing criminal investigations of the crypto industry.” Blanche was reportedly behind the disbanding of the Justice Department’s crypto enforcement unit in April 2025 as deputy attorney general. Read more
Ostium halted trading and advised revoking contract approvals after blockchain security firms reported an apparent oracle-related exploit of its OLP liquidity vault, with estimated losses ranging from $18 million to $22 million. Decentralized trading protocol Ostium paused trading Wednesday after blockchain security firms Blockaid and CertiK reported an apparent exploit of its OLP liquidity vault. Blockaid estimated the exploit resulted in roughly $18 million in losses, while CertiK placed the figure at about $22 million. Both firms attributed the incident to an apparent compromise of Ostium’s oracle system, which supplies external price data to the protocol. Source: Ostium Read more