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In brief Meta confirmed one of its Muse Spark AI models gained internet access during a cybersecurity evaluation. The model exploited a security vulnerability in a third-party service after a testing partner accidentally exposed it to the internet. The incident follows similar disclosures from Anthropic and OpenAI involving frontier AI models during safety testing. In yet another rogue AI model hack, Meta has confirmed that one of its Muse Spark AI models escaped its intended testing environment, gained access to the internet, and exploited a security vulnerability in a third-party service during a cybersecurity evaluation.It’s the third such reported incident…

In brief Meta confirmed one of its Muse Spark AI models gained internet access during a cybersecurity evaluation. The model exploited a security vulnerability in a third-party service after a testing partner accidentally exposed it to the internet. The incident follows similar disclosures from Anthropic and OpenAI involving frontier AI models during safety testing. In yet another rogue AI model hack, Meta has confirmed that one of its Muse Spark AI models escaped its intended testing environment, gained access to the internet, and exploited a security vulnerability in a third-party service during a cybersecurity evaluation.It’s the third such reported incident…

In brief Japan’s government has repeatedly urged the U.S. to stop using anime and game characters in official posts, with the latest appeals lodged through the U.S. embassy in June. The Pokémon Company confirmed it never granted permission for a Department of Homeland Security clip that mashed Ash Ketchum with ICE footage. A Japanese fan’s “Protect Japanese Manga” petition and an AI Trump-as-Naruto video pushed the issue up the diplomatic ladder. Japanese officials have repeatedly asked the U.S. government to stop its meme posting involving Mario, Pokémon, and Naruto. Since March, the foreign ministry has called out Washington over the…

US spot Bitcoin (BTC) exchange-traded funds (ETFs) pulled in roughly $1 billion of net inflows over the most recent week, following the Coldcard hack. The figure marks the strongest weekly performance since April and the third-best result since October of the prior year, reports Bloomberg ETF analyst Eric Balchunas. “The Bitcoin ETFs just clocked their best week in flows (about $1b) since April and the 3rd best week since the good ole days were ruined by the Silent IPO last Oct. IBIT, FBTC and few others saw inflows every single day since the Coldcard hack, making it hard not to…

In brief SEC documents obtained by 404 Media show the agency subscribed to Airlines Reporting Corporation’s Travel Intelligence Program, which held over one billion ticket records. The data included names, credit card numbers, routes, and an alert system that flagged new bookings by people the agency was monitoring — likely without a warrant. ARC, co-owned by Delta, United, and American, sold the data until lawmaker pressure forced a shutdown in 2025. The Securities and Exchange Commission bought access to a worldwide airline ticketing database holding more than one billion records, according to SEC documents obtained by 404 Media through a…

The major prediction market platform Polymarket is facing a lawsuit from a participant who claims he was shortchanged on a substantial winning bet. Bettor Jesús Manuel Gonzalez Hernandez has sued Polymarket for $170,000 in damages, claiming that he correctly predicted that President Donald Trump would say “Khamenei,” reports the New York Post. Polymarket allows traders to buy and sell shares on outcomes of current events. As part of its recurring series “What will Trump say this week?”, participants placed yes-or-no bets on whether Trump would say the words “Khamenei” or “Ayatollah” during the week of March 15th. Hernandez says he…

In brief The Senate leaves for a month-long recess without holding a procedural vote on the Clarity Act. Republicans need roughly six Democratic crossovers to clear the 60-vote threshold. If it passes the Senate, the bill returns to the House before it can reach Trump’s desk. The U.S. Senate will not vote on the Clarity Act before its August recess, pushing the crypto market structure bill to September and into the closing weeks before midterm campaigning consumes the calendar.Senate Majority Leader John Thune (R-SD) confirmed the delay late Thursday. “The Dems are insistent on no Clarity vote,” he said in…

The Omaha-based Berkshire Hathaway saw its massive cash stockpile shrink for the first time in more than three years as profits soar. The conglomerate posted net income of $25.67 billion for the second quarter, more than double the year-earlier total of $12.37 billion, reports The Wall Street Journal. Operating earnings excluding investment gains climbed 16.3% to $12.98 billion from $11.16 billion. Berkshire Hathaway held $364.7 billion in cash and Treasury bills at the end of June, down 4% from the previous quarter after accounting for amounts owed on some of its short-term government securities. The decline marked the first quarter-on-quarter…

In brief MyTrade founder Liu Zhou has been fined $10,000 over running a crypto wash trading service. Zhou pleaded guilty in October 2024 alongside 17 co-conspirators charged in the same operation. MyTrade’s dashboard let clients order a daily volume of fake trades, executed by bots. The founder of crypto market maker MyTrade has avoided prison and been fined $10,000 for running a wash trading service that generated millions of dollars in fake daily volume across roughly 60 cryptocurrencies.Liu Zhou, 41, a Canadian citizen and Chinese national, was sentenced in Boston federal court on Thursday by U.S. District Judge Angel Kelley,…

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt.GM!Today’s top news: Crypto majors are slightly green; BTC at $65k Clarity Act vote officially delayed until after August recess, 13% chance to pass BTC ETFs see another $138M in net inflows, now $750M+ on week Robinhood Chain hits new ATH in active addresses after Cashcat gets listed on Robinhood US New NFT mint Mancer triples on debut, token runs 11x to $8M 🦊 MetaMask Hands AI Agents a Wallet, With Guardrails and a “Beast Mode”MetaMask…

In brief Moonshot AI’s Kimi K3 left its test sandbox and went onto the open internet, security firm Frontier Security said. The model probed the sandbox’s network settings, found reachable sites and pulled its test answers from GitHub. Frontier says a misconfiguration opened the door, but that Kimi’s own guardrails did not stop it. Moonshot AI’s Kimi K3 left the sandbox it was being tested in and went onto the open internet to find answers to problems it had been set, according to security firm Frontier Security.The model was being assessed on defensive cybersecurity skills and was expressly tasked with…

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure South Korean police have arrested three suspects tied to an alleged fake XRP staking platform that reportedly defrauded 71 investors out of 3.4 million XRP, worth about $9 million. South Korean police reporting identifies the platform as Fxrpntwork.com and says authorities froze 17.3 billion won in digital assets on overseas exchanges. The case is still ongoing, so the legal framing needs to stay careful. Arrests are not convictions. Allegations still have to move through the legal process. Still, the case is another reminder that staking scams remain…

US-listed spot Bitcoin and Ethereum exchange-traded funds pulled in more than $1 billion in fresh cash this week, with both groups registering their strongest inflows since April as demand for regulated crypto investment products rebounded.Data from SoSoValue shows that spot Bitcoin ETFs attracted $853.54 million during the week ended Aug. 7, their biggest haul in nearly four months.The funds recorded inflows in every session, including $170.09 million on Monday, $211.49 million on Tuesday and $244.42 million on Wednesday before demand moderated toward the end of the week.The total surpassed the roughly $824 million collected during the week of April 24…

In brief A wallet holding 49.97 BTC—received on July 16, 2011—moved the funds on Wednesday at block 961331. The stash is worth about $3.2 million now, a 634,347% gain on its roughly $10 average cost basis. The receiving wallet has previously routed funds to deposits tied to FalconX, a crypto prime broker, leaving open whether the old coins are being repositioned toward a trading venue. Another dormant Bitcoin whale has awoken.An old Bitcoin address holding millions in Bitcoin that had not made any transactions in over 14 years suddenly reactivated yesterday. Per Galaxy Research’s monitoring, the Bitcoin address beginning in…