Ethereum developers are advancing a zero-knowledge protocol to strengthen privacy in blockchain transactions. The initiative features a Secret Santa matching system using zero-knowledge proofs and transaction relayers to preserve user anonymity while preventing Sybil attacks, according to research shared via an Ethereum community forum.

Financial services firm Cantor Fitzgerald disclosed a $1.28 million stake in the Volatility Shares Solana ETF, holding 58,000 shares as of mid-November, according to an SEC filing. The investment marks Cantor's first documented exposure to a regulated Solana-based product. The disclosure comes as multiple Solana ETF launches follow the SEC's September approval of generic listing rules for commodity-based trusts.

The Federal Deposit Insurance Corporation will submit its initial regulatory proposal for stablecoin issuers under the GENIUS Act to the House Financial Services Committee by December 31, acting Chairman Travis Hill announced on December 2. The framework will establish capital requirements, liquidity standards, and reserve asset diversification rules for federally supervised stablecoin issuers.

Balancer has initiated a reimbursement program to return approximately $8 million to liquidity providers affected by a November exploit of its v2 pools. Whitehat hackers and internal teams recovered funds across Polygon, Ethereum, Base, and Arbitrum networks. The protocol will distribute recovered assets following KYC verification, with whitehat contributors receiving a 10% bounty.

Web3 investment firm DWF Labs unveiled a $75 million fund on November 26 to back next-generation decentralized finance infrastructure. The capital will support teams building perpetual decentralized exchanges, money markets, and yield protocols on Ethereum, BNB Chain, Solana, and Base. The firm will prioritize projects with functional products addressing liquidity provisioning, settlement systems, and on-chain risk management.

The UK Serious Fraud Office arrested two individuals in connection with the collapse of Basis Markets, a cryptocurrency fund that allegedly misappropriated $28 million from investors. A man in his 40s and another in his 30s were detained in south London and West Yorkshire on suspicion of fraud and money laundering. The arrests represent the SFO's first major cryptocurrency investigation, according to Director Nick Ephgrave.

Strategy (MSTR) could face nearly $2.8 billion in passive fund outflows if MSCI removes it from key equity indices on January 15, 2026, according to JPMorgan analysts. An additional $8.8 billion remains at risk should other index providers follow suit. The company holds over 638,000 BTC worth approximately $72 billion, representing roughly 3% of Bitcoin's total supply.

A wallet holding Hyperliquid's second-largest losing position closed leveraged Bitcoin and Ethereum longs, realizing losses exceeding $10 million before opening a 6x leveraged ETH short. Another trader exited positions with a $6.2 million loss and initiated a 2x leveraged short on Ethereum worth approximately $60.4 million. The moves signal bearish positioning amid heightened market volatility.

A crypto trader has accumulated $24 million in unrealized profits from a Bitcoin short position held for over six months on Hyperliquid's perpetual futures market. The trader maintains a 1,232 BTC short valued at approximately $113.27 million with 20x leverage, entered at $111,499.30. The position faces liquidation at $101,641.11, with Bitcoin trading around $91,509.