Here’s what happened in crypto today

Source: Michael Saylor BIP-110 is one of the more notable protocol-level disputes in the Bitcoin development community since the Blocksize Wars between 2015 and 2017, when ecosystem participants debated whether it was worth risking a chain split to raise the block size limit for scalability. BIP-110 was introduced by pseudonymous Bitcoin developer “Dathon Ohm” with the support of Ocean protocol founder Luke Dashjr. Hedera-based lending protocol Bonzo Lend lost about $9 million after an attacker manipulated the price of SAUCE used as collateral, allowing the account to borrow assets far beyond the value deposited. In a preliminary incident report published Saturday, Bonzo said the attacker deposited 250 SAUCE, worth only a few dollars, before submitting a price update that inflated the token’s value by roughly 12 orders of magnitude. The wallet then borrowed 6.63 million USDC and 34.5 million wrapped HBAR from the lending pool. The case illustrates how oracle failures can turn low-value collateral into a tool for draining large amounts of liquidity from lending protocols, even when the application and underlying network continue operating as designed. Bonzo attributed the incident to a flaw in Supra’s on-chain oracle verifier, which accepted a manipulated SAUCE price carrying a zeroed signature. The protocol said Supra acknowledged the issue and deployed a fix, while stressing that the incident was not a vulnerability in Bonzo Lend’s contracts or Hedera’s core network. Estimated economic impact of the incident. Source: Bonzo Finance The US Department of Justice is reportedly moving to drop charges against the founder of BitClub Network, a purported crypto mining platform that allegedly defrauded investors of $722 million between 2014 and 2019. A court filing shows Matthew Goettsche’s attorneys wrote to New Jersey district court Judge Claire Cecchi on Wednesday, stating that the parties “reached an agreement in principle” to resolve the pending charges “but need time to finalize the terms.” Goettsche’s attorneys' letter to New Jersey district court Judge Claire Cecchi. Source: Bloomberg Law The filing came after the deputy attorney general’s office in Washington reportedly ordered the New Jersey attorney general’s office to dismiss the case against Goettsche with prejudice, according to a report on Friday from Bloomberg Law, citing two sources familiar with the matter. Goettsche was indicted in December 2019 and was set to face trial in October for conspiracy to commit wire fraud and selling unregistered securities. A reversal would mark one of the more notable changes in US crypto enforcement history, particularly given that three of his former colleagues, Silviu Balaci, Joseph Abel and Gordon Beckstead, have pleaded guilty for their involvement in the scheme. The potential reversal follows an April 2025 memo from Deputy Attorney General Todd Blanche, who directed the DOJ to end its “regulation by prosecution” strategy against the digital asset industry. More on the subject