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first_img White House crypto advisor denies Trump's crypto interests hindered the Clarity Act

Patrick Witt, the Executive Director of the White House Digital Asset Advisory Committee, defended President Trump's cryptocurrency connections at the Financial Markets Quality conference held at Georgetown University on Wednesday, denying that his personal crypto interests led to the failure of the Clarity Act in the Senate last week. He stated that the Democrats have politicized the issue and questioned why the recently passed housing bill did not require strict government ethics review provisions. The negotiations for the Clarity Act have consistently failed to bypass ethical controversies, which target conflicts of interest in cryptocurrency held by senior government officials, with Trump being a primary target.Witt stated that Trump agreed to two unprecedented ethical provisions: in addition to ultimately being willing to accept rules mandating the divestment of crypto assets or placing them in a blind trust, the White House is also prepared to concede by allowing state attorneys general to sue him if the federal government fails to address ethical violations. He also mentioned that the accusation of Trump having a conflict of interest while controlling crypto assets and leading digital asset policy is "quite ironic," as several senators on the banking committee involved in the discussions hold and actively trade stocks of financial services companies they regulate.Witt's main responsibility is to push the Clarity Act into law, which faced setbacks in the Senate last week. He stated at the CoinDesk policy and regulatory event on Tuesday that the focus is not on the year-end lame duck session, but rather on the core work shifting towards federal regulatory agencies like the Securities and Exchange Commission. He also accused banking lobbyists of pushing to shelve the bill due to concerns that stablecoin rewards might compete with interest-bearing bank deposits, claiming that this opposition was initiated by large banks and spread to community banks.

first_img Aave Founder: Aave V4 defaults to risk isolation, securing 1.2 billion dollars in deposits

The founder and CEO of the decentralized lending protocol Aave, Stani Kulechov, responded to various statements regarding Aave V4. He stated that the Hub and Spoke of Aave V4 are by default isolated according to risk characteristics, allowing risk-adjusted markets to share liquidity within set limits through the Hub to support new use cases while avoiding unnecessary fragmentation of liquidity. He believes that completely isolating liquidity often splits funds, reduces utilization, and increases user costs, which becomes more apparent after the incentives used to guide liquidity end.Stani mentioned that in V4, Spoke represents the lending market, and the Hub can share liquidity between these markets, allowing isolated risk characteristics to utilize the capital pool, thereby improving utilization and capital efficiency. Unlike typical curation vaults that start with zero liquidity and require funds or incentives to guide them, V4 Spoke can rely on the entire Hub balance sheet from the first day of launch. He also stated that the V4 architecture is simpler and remains flexible, with the overall codebase significantly smaller than Aave V3.According to him, Aave V4 has secured $1.2 billion in deposits and is deployed across multiple networks, including Ethereum, Avalanche, and Arc. V4 has supported third-party curators like EtherFi, allowing curators to build and manage complete market structures and participate in the economic distribution of a broader lending market, rather than just charging fees for managing deposit scales.

first_img Chief Legal Advisor of the U.S. SEC's Cryptocurrency Working Group Elaborates on the Path for Cryptocurrency Custody Rules

According to CoinDesk, Taylor Lindman, the Chief Legal Counsel of the U.S. Securities and Exchange Commission (SEC) Crypto Working Group, stated at the CoinDesk Policy & Regulation event held in Washington that the SEC is advancing rules for the custody of crypto assets. The relevant proposal has been submitted to the Office of Management and Budget (OMB) for review, covering investment companies and broker-dealers. She indicated that the rule aims to inform the market about how to hold non-securities crypto assets within broker-dealers without special registration and clarifies that investment advisors can store client assets in institutions such as state-chartered trusts.Once the proposal passes the review by the Office of Management and Budget, the SEC will formally present it and seek feedback from the industry and the public. Lindman also mentioned that the SEC will issue an employee statement in December 2025 as a transitional arrangement, guiding broker-dealers on handling crypto custody matters before the rules are implemented, and will allow investment advisors to store client assets in state-chartered trusts as qualified crypto custodians starting in September 2025.Lindman described the SEC's recent work as "laying the groundwork," including previously proposed rules allowing crypto issuance and exemptions for tokenized securities. She stated that the SEC is working to ensure that existing securities intermediaries and market participants can confidently use blockchain to hold and trade crypto assets. Previously, the SEC's attempts at custody rules under Gary Gensler in 2023 were abandoned, and a leadership supportive of crypto was appointed after the Trump administration took office.

U.S. Department of Justice: California woman sentenced to prison for concealing $2.6 million in cryptocurrency crime proceeds

The U.S. Department of Justice announced that Iris Rabaya Au, a 37-year-old woman from Irvine, Orange County, California, was sentenced to 18 months in federal prison for failing to report over $2.6 million in illegal income to the Internal Revenue Service (IRS). She was also ordered to pay $1.484 million in restitution and had multiple luxury cars, high-performance vehicles, designer handbags, and three "Godfather" sculptures confiscated. Au is the ex-girlfriend of cryptocurrency scammer Adam Iza.Prosecutors stated that between 2020 and 2024, Iza fraudulently obtained Meta advertising accounts and credit lines, selling account access and earning millions of dollars in unreported income. At Iza's direction, Au set up shell companies and opened bank accounts, using the related funds to pay approximately $1 million to Los Angeles County Sheriff's Department (LASD) officers and to purchase or lease luxury homes, cars, jewelry, and clothing. They also spent nearly $10 million on entertainment and purchased about $16 million in cryptocurrency for Iza. Between 2020 and 2023, Au transferred over $2.6 million into her personal bank accounts but did not accurately report it on her federal tax returns. She pleaded guilty to one count of false tax return in March 2025. Iza pleaded guilty in January 2025 to charges including conspiracy to infringe rights, wire fraud, and tax evasion, with a sentencing hearing scheduled for October 5. He was also sentenced to 15 years in federal prison for his involvement in an attempted Bitcoin robbery and kidnapping case in Connecticut in August 2024.

The mastermind behind the armed robbery of a cryptocurrency practitioner in Singapore was sentenced to 12 years and 11 months in prison and received 24 lashes

According to the United Morning News, seven Malaysian gangsters targeted players attending a poker game, breaking into a luxury private residence in Bukit Timah late at night, armed and stealing over 4.9 million dollars, quickly splitting into two groups to escape Singapore. Six of them pleaded guilty in the High Court on Monday (September 14), with the two masterminds sentenced to 12 years and 11 months in prison, 24 strokes of the cane, plus a fine of 4,000 dollars.In court, it was revealed that the masterminds, Wu Wentong (30 years old) and Huang Zhishan (35 years old), learned from a friend who had previously attended the poker game that the house often held poker games at night. After scouting the location, they discovered that the front door of the house would not be locked during the game. Wu Wentong and Huang Zhishan then recruited five other accomplices, specifically coming to Singapore to commit the crime. This armed robbery occurred around 2 a.m. on April 18, 2024, at a residence in the upscale Alper Wang Garden area, where 11 men and women were playing poker in the living room.According to the case details, around March 2024, Wu Wentong and Huang Zhishan decided to rob the poker players at the house due to financial issues. They knew that they could not carry out such a large-scale robbery with just the two of them, so they contacted Hamidun, who runs a private security company and provides debt collection services, to help gather a team, promising a reward of 1.5 million ringgit (approximately 470,000 Singapore dollars). After the group succeeded, they left in a multi-purpose vehicle, splitting into two groups to leave Singapore via the Tuas and Woodlands checkpoints. At the same time, several players in the private residence managed to free themselves from their restraints and reported the robbery to the police. With the assistance of the Royal Malaysia Police, the six defendants were arrested between late April and November 2024 and were extradited to Singapore for prosecution. The police have since recovered virtual currency worth 1.69 million dollars, while the remaining funds and property are still missing.

first_img Aave Labs proposed to deploy V4 isolated Hub for accessing custodial collateral

On September 14, Aave Labs released an ARFC on the Aave governance forum, seeking approval to deploy a new Aave V4 Isolated Hub and Spoke to integrate institutional custody collateral as collateral for stablecoin loans. Institutional borrowers will deposit collateral with Anchorage and maintain custody during the loan period, with the custody balance represented on-chain by non-transferable custody collateral tokens CoCT, minted and burned by CustodySync designed by Chainlink.Borrowers will stake CoCT on the Spoke and withdraw stablecoins from the Isolated Hub. The entire loan lifecycle, including liquidation, is synchronized between the custodian and Aave through Chainlink infrastructure. The proposal is limited to a single Isolated Hub and a single Spoke governed by the Aave DAO, without altering existing Hubs, Spokes, or reserves. The underlying assets will always remain in custody, with Anchorage holding the assets as the custodian and acting as the counterparty for account control protocols; Chainlink does not hold the assets.CoCT is a restricted transfer ERC-20, only allowing Hub, Spoke, and CustodySync, with minting and burning exclusive to CustodySync, and each borrower's position corresponding to a contract. The initial plan is to launch a CoCT for BTC held in custody by Anchorage. The next steps involve ARFC discussions, and if supported, it will proceed to Snapshot, followed by submitting the final parameters for AIP.
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