CZ warns of supply chain attack risks for Ledger hardware wallets, with a single distributor suspected of selling counterfeit or tampered devices.

Decentralized derivatives protocol Ostium has unveiled an updated design for its Phase 2 loss recovery plan for OLP holders. For users who suffered losses exceeding 1,000 USDC and did not opt for the convenience distribution scheme, two recovery options are available: Default Scheme A offers installment USDC repayments, while Scheme B allows converting part or all of unrecovered losses into equity in Ostium Labs. Scheme A will distribute funds recovered from Phase 1 settlements and future recoveries proportionally, with a portion allocated from protocol and Gateway revenues for compensation. The current plan earmarks 50% of Ostium’s open position fees as the funding source, and partner incentives or revenue shares may be added in the future. Scheme B allows eligible users to convert part or all of their remaining unrecovered losses into equity at the valuation of Ostium Labs’ next financing round. The equity class matches that of the team, though specific allocation ratios and thresholds are still pending. The Phase 2 portal is scheduled to open on October 30. Eligible users’ outstanding losses will be credited to the Scheme A contract, enabling them to claim repayments proportionally later. Users may also pre-set the proportion of losses to convert to equity, though this intent is non-binding. Once the next financing round is priced, users will receive an official selection window. If total equity applications exceed the set cap, allocations will be proportional, with unconverted amounts remaining in Scheme A. Ostium emphasized that this recovery plan is voluntary, does not guarantee full recovery of all losses, and equity allocation ratios, specific mechanisms, and various thresholds are still being finalized.

According to market data from BIT (Bit.com), U.S.-listed crypto-related stocks rose broadly. Specific gains include: MSTR up 3.89%, COIN up 5.45%, CRCL up 7.69%, SBET up 0.23%, BMNR up 1.81%, HOOD up 2.41%, and HYPE Treasury firm PURR up 0.72%.

US consumer confidence declined further in early October, with consumers’ assessment of current economic conditions hitting an all-time low as persistently high inflation strains American households’ finances. The preliminary survey released Friday by the University of Michigan showed that the October Consumer Sentiment Index fell to 46.3, its lowest level since May. Among its components, the Current Economic Conditions Index plummeted from 50.9 in September to 44.7, marking an all-time low on record. Meanwhile, the Consumer Expectations Index rose from 46.3 to 47.3, the first increase since July. US consumer confidence has continued to deteriorate amid sustained high gasoline prices, rising borrowing costs, and slowing hiring activity. The survey found that consumers expect prices to rise 4.7% over the next year, up from 4.6% in September. Long-term inflation expectations for the next 5 to 10 years rose to an average of 3.5%, slightly higher than September’s level. Joanne Hsu, director of the University of Michigan’s consumer surveys, said in a statement that this month, confidence indices dropped notably among low-income consumers and those with smaller stock portfolios.

Starknet published a post introducing the Quantum-Safe Bitcoin (QSB) scheme, stating that StarkWare researchers have verified on Bitcoin’s mainnet a quantum-safe locking mechanism that requires no soft fork, no new opcodes, and no modification to consensus rules. The first QSB output was spent on August 26, 2026, in Bitcoin mainnet block 964,199, with associated GPU computing costs dropping from an initial ~$320 to around $50. Designed by StarkWare researcher Avihu Levy, the scheme’s core approach is to use hash calculations to build locking mechanisms, avoiding reliance on elliptic curve private keys vulnerable to quantum computer cracking. However, QSB does not mean Bitcoin has achieved full quantum resistance: each transaction requires massive computing power, and transferring existing assets into the scheme still involves traditional transactions with quantum risks. Additionally, QSB transactions do not comply with Bitcoin Core’s default relay rules, requiring submission by miners willing to directly accept such transactions, and there are currently no supporting wallets, address formats, or recovery processes. StarkWare emphasized that QSB is an emergency research solution, not a replacement for Bitcoin’s quantum-resistant upgrade. Long-term solutions will still require a soft fork to introduce post-quantum signature mechanisms. In contrast, Starknet noted that its underlying STARK proofs have used hash-based security mechanisms from their inception and has developed a quantum migration roadmap, but as an Ethereum Layer 2, its full quantum resistance still depends on the progress of Ethereum’s underlying upgrades. At Token2049, StarkWare CEO Eli Ben-Sasson also raised an open question: whether Starknet should transition to a Layer 1 to independently advance post-quantum security upgrades without fully waiting for Ethereum’s upgrade timeline. This idea has not yet become an official decision.

Binance’s Head of Trading and Trading Business, Shunyet Jan, stated that future competition among financial platforms will no longer be limited to crypto asset trading, but will focus on integrating services such as investment, payments, lending, and asset management to build a comprehensive financial ecosystem covering both traditional finance and crypto markets. Jan, who has approximately 30 years of work experience at Goldman Sachs, Morgan Stanley, and JPMorgan, believes traditional finance holds advantages in regulation, risk management, and functional segregation, while the crypto industry is more competitive in 24/7 trading, fast settlement, and openness. He noted that the two sectors will accelerate integration in the future. Binance aims to let users leverage the financial value of their underlying assets without selling them, via features including unified accounts, cross-asset margin, tokenized assets, and stablecoin payments, and is exploring using AI to simplify asset selection and risk management. Jan revealed Binance currently has over 300 million users, most of whom come from emerging markets; around 90% of its users for direct stock and tokenized stock products are from emerging markets. He added that Binance’s long-term goal is to expand its user base from 300 million to 3 billion, and become a financial infrastructure accessible to more people.

US President Donald Trump is stepping up efforts to oust Federal Reserve Governor Philip Cook. The White House announced Friday it has established a "select committee" to investigate allegations that Cook made false statements in one or more mortgage documents. The move marks the latest step in Trump’s ongoing bid to reshape the Federal Reserve’s leadership. With the Fed’s next monetary policy meeting just weeks away, Fed officials voted unanimously to raise interest rates last month, a decision that runs counter to Trump’s longstanding call for interest rate cuts.