Bitcoin Red Team scans hundreds of projects, identifies over 1,000 critical vulnerabilities using AI

Today in crypto, US spot Bitcoin ETFs extended their inflow streak as the Coldcard wallet hack reignited the self-custody debate, Russian President Vladimir Putin signed a law establishing a regulated cryptocurrency market set to take effect in 2026 and Mysten Labs co-founder Sam Blackshear left the company to join Anthropic for AI security research.Bitcoin ETF inflows accelerate as Coldcard hack sparks self-custody debateUS spot Bitcoin ETFs extended their inflow streak this week, coinciding with the recent Coldcard wallet exploit that has reignited debate over the risks of self-custody.Bloomberg ETF analyst Eric Balchunas noted that several major US spot Bitcoin ETFs, including BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB and ARK 21Shares’ ARKB, have attracted inflows every trading day since the weekend hack, totaling about $620 million. While the timing has fueled speculation that some investors may be shifting toward regulated investment products, Balchunas stressed there is no evidence linking the two events.“I’m not saying it’s connected, we just don’t know,” Balchunas said. “[Although]  long-term I can’t imagine there aren’t some who migrate over.”The Coldcard exploit resulted in the theft of more than $116 million in Bitcoin from over 5,200 wallet addresses, according to TRM Labs, renewing concerns over hardware wallet security and the operational risks of managing private keys.The incident also revived the long-running custody debate. Binance co-founder Changpeng “CZ” Zhao argued that centralized exchanges may now be “statistically safer” than self-custody, while acknowledging that many self-custody losses go unreported. The discussion comes as AI-assisted cyberattacks continue to increase across the crypto industry.Russian president signs crypto law, core rules take effect in 2026Russian President Vladimir Putin has signed a law creating a regulated framework for cryptocurrency markets in the country.Putin signed bill No. 1194918-8, titled “On Digital Currencies and Digital Rights,” into law on Tuesday, according to official records from the State Duma, Russia’s lower house of parliament. The legislation establishes rules for crypto market participants, including exchanges, brokers, custodians and other crypto service providers.The law requires crypto exchange operators to meet regulatory requirements and join a financial market self-regulatory organization. It limits retail investors to buying approved crypto assets through intermediaries, with an annual cap of 300,000 rubles ($3,700) per intermediary. Qualified investors will be allowed to purchase any cryptocurrency without such restrictions.The core provisions of the law take effect on Sept. 1, 2026, while some measures, including rules for non-resident digital depositories, will take effect on July 1, 2027. The law also maintains a ban on using crypto assets to pay for goods and services inside Russia.The State Duma approved the legislation after final readings in late July. Under the law, the Bank of Russia will oversee the regulated crypto market, issue related rules and determine which crypto assets licensed intermediaries can offer.Mysten Labs tech chief joins Anthropic to work on AI securitySam Blackshear, the co-founder and chief technology officer of Mysten Labs, has announced he will be stepping down to join Anthropic to work on defensive security research.Blackshear, along with four former Meta executives, founded Mysten Labs — the creator of the Sui blockchain — in September 2021. Blackshear said Mysten Labs co-founder and CEO Evan Cheng will step in to set the “technical vision” for Mysten going forward.“When I reflect on my career, I have been happiest doing hands-on technical work while exploring new problem domains,” said Blackshear. “This is an opportunity to do both, and I’m motivated to work on security at a time when the balance of power between attackers and defenders is shifting.”His departure comes as AI is increasingly being used to identify software vulnerabilities, automate phishing campaigns and accelerate attacks on blockchain infrastructure.