BlockAI News editorial desk — breaking stories and market signals from the Web3 × AI frontier.
defi
DeFi TVL dropped $13B in 48 hours after Kelp DAO's $292M exploit, but most of that wasn't real capital leaving — it was looping strategies unwinding. Spark TVL meanwhile jumped from $1.8B to $2.9B, suggesting capital rotation, not abandonment.
AI
A CUNY and King's College London study tested five frontier chatbots on prompts involving delusions, paranoia and suicidal ideation; xAI's Grok 4.1 Fast came out worst, while Claude Opus 4.5 and GPT-5.2 Instant scored safest.
Bitcoin
BIP-361, drafted by Jameson Lopp and other core devs, would phase out Bitcoin's current cryptographic signatures and freeze ~5.6M dormant BTC (~$440B, 28% of supply) to protect them from quantum attacks. Critics say it would shatter Bitcoin's core value prop in a single day.
AI
Maine Governor Janet Mills vetoed L.D. 307, which would have set the first statewide data center moratorium through November 2027, citing the bill's lack of an exemption for a locally supported project in Jay.
Regulation & Policy
KBC, BBVA, DZ Bank and Societe Generale are now wiring BTC and ETH directly into existing brokerage and payments rails under MiCA. EU crypto ownership is projected to hit ~25% by 2030, up from 9% in 2024.
Web3 Security
Litecoin rolled back 13 blocks — about 32 minutes of chain history — after attackers exploited a MWEB consensus bug. The Litecoin Foundation called it a zero-day, but CoinDesk found the fix was privately developed between March 19 and 26.
Regulation & Policy
The CFTC sued New York to block state enforcement against prediction markets, while 38 attorneys general backed Massachusetts' case against Kalshi — a dual-front fight over who actually regulates event contracts.
defi
A coalition led by Aave Labs and joined by Kelp DAO, LayerZero, EtherFi and Compound has filed a Constitutional AIP asking Arbitrum to release ~30,766 ETH (~$71M) into a DeFi United relief effort for rsETH holders.
AI
Alchemy CEO Nikil Viswanathan argues crypto's always-on, programmable, identity-light design fits AI agents far better than legacy finance, with humans guiding the strategy and agents running the engine.
AI
Coinbase's Jesse Pollak says AI agents need programmable money, with roughly $48M flowing through the x402 payments standard so far and about 95% of those transactions settling on Base.
Bitcoin
Project Eleven estimates roughly 6.9 million BTC sit in addresses with exposed public keys, including Satoshi's coins, and resource estimates for a full 256-bit elliptic-curve break have fallen below 500,000 physical qubits.
Web3
A zero-day in Litecoin's MimbleWimble Extension Block let attackers slip an invalid MWEB peg-out past outdated mining nodes, triggering a 13-block reorg that wiped roughly three hours of history.