Trump's World Liberty Tied to Flagged Chinese AI Models

World Liberty Financial is working with an AI company offering models from Chinese tech firms the Trump administration has flagged over national security concerns, Reuters reported. The collaboration aims to expand use of the venture's USD1 stablecoin.

Hong Kong-based WorldClaw provides access to 90 AI models, 43 of them built by Chinese developers including Alibaba, Baidu, and Z.ai, alongside offerings from OpenAI and Anthropic. The platform accepts USD1 as payment for model access.

Z.ai landed on the Commerce Department's Entity List in January 2025, restricting its access to American technology. The Pentagon designated Alibaba and Baidu as Chinese military companies in June, barring Defense Department business, a label Alibaba called arbitrary and capricious while vowing to sue.

World Liberty executive Ryan Fang advises WorldClaw, while Donald Trump Jr. and Eric Trump have promoted it. A spokesperson called the platform independent, noting major US firms also host both Chinese and American models in what he described as a widely accepted approach.

Kraken Brings US Stock Trading to European Customers

Kraken launched US stock trading for eligible customers across every European Economic Area member country, following a limited rollout in Germany, the Netherlands, and France. Customers can trade more than 7,000 American shares with no trading commissions.

The firm says it now offers the only regulated account pairing traditional US-listed shares with more than 700 tokenized equities. Those xStocks have generated over $38 billion in transaction volume since launching in June 2025, with service provided through a Cyprus investment firm.

Bitpanda Hit With Europe's First Published MiCA Penalty

Austria's Financial Market Authority fined Bitpanda 70,000 euros, roughly $82,000, in the first publicly disclosed enforcement penalty under the bloc's crypto rulebook. The Vienna firm failed to submit a white paper to the regulator 20 working days before publishing it.

The authority also found marketing circulated before the underlying white paper appeared, plus a missing disclaimer and contact details. Breaches were procedural rather than fraud, though the ruling is legally final and signals how MiCA will be policed.

Harmony Plans Rollback After 3 Trillion Tokens Forged

Harmony will roll back both shards to a point preceding last week's exploit, discarding every block and transaction after the forged mint. A reconstruction found 3.01 trillion ONE created across six transactions into four attacker wallets.

One wallet moved nearly 2.4 trillion tokens, worth almost $3 billion at pre-attack prices, inside two minutes. The team weighed burns, blacklisting, and migration before calling a rollback fairest, with the flaw traced to cross-shard receipts processed repeatedly.

Data of the Day

Total value locked in Robinhood Chain has surged past $540 million, climbing more than 45% in August. Tokenized real-world assets reached $32 million, up 120% month over month, yet their share of chain TVL collapsed from nearly a third in July to just 6%.

Stablecoin capitalization hit roughly $640 million, with USDe accounting for $286 million after climbing nearly 50% this month. House token USDG has stalled around $340 million, having commanded 92.7% of supply during the chain's opening week.

More Breaking News

• South Korea ordered domestic access to Polymarket blocked, joining more than 30 other jurisdictions restricting the platform after regulators rejected its peer-to-peer defense.
• Metaplanet took a 96% stake in Super League using 2,100 bitcoin plus cash, a $135 million deal creating a US-listed vehicle to be renamed Superplanet.
• BitBox said internal AI audits found two severe firmware flaws, shipping a fix after discovering bugs that could have loaded malicious code onto genuine devices following a phishing attack.
• Curve founder Michael Egorov said FATF pressure could help push DeFi protocols toward minimizing privileged access, arguing smart contract architecture is the most objective measure of decentralization.
• Ripple partnered with South Korea's Jeonbuk Bank for real-time cross-border remittances, its third Korean tie-up this year as XRP slipped slightly over the day.
• Tom Lee's Bitmine now owns 4.8% of Ethereum supply after buying another 9,926 ether, lifting the ETH treasury to 5.815 million tokens worth about $11 billion.
• The US Treasury opened public comment on stablecoin rules under the GENIUS Act, seeking clarity on when a token counts as issued domestically ahead of the January 2027 effective date.
• China added eight banks to its digital yuan network, lifting authorized operators to 30 as Beijing widens access for regional enterprises across China.
• Strategy sold $334 million in MSTR shares without touching bitcoin, lifting its dollar reserve to $4.8 billion while its bitcoin treasury stayed at 840,447 coins.