Crypto's week split in two: a cleanup, a crime wave, and a regulated stablecoin

The cleanup

Aave is cleaning house. LlamaRisk proposed offboarding assets from Aave V3 Core, according to Galaxy Digital's weekly research brief, and the proposal covers $1.33 billion of collateral assets. The move reads as risk reduction: collateral that no longer meets the protocol's standards leaves, rather than waiting for a market event to force the question. m:…1796

Ethereum has its own governance fight. Kayleen Fulton filed a lawsuit against the Ethereum Foundation and Vitalik Buterin, Galaxy's brief reports, and the foundation's mandate included a Source Seppuku License clause. Fulton and Trent Van Epps were fired on April 6, according to the brief. The brief gives no detail on what the lawsuit seeks. m:…1796

The same brief notes that the New York Stock Exchange plans to settle tokenized stocks on the Avalanche blockchain, a sign that traditional market infrastructure is moving onto crypto rails even as crypto's own institutions argue among themselves. m:…1796

The crime wave

The crime wave moved faster than the cleanup. Binance lost approximately $6.34 billion in digital assets on October 29, 2026, according to KnowBe4's Threat Lab, which attributes the attack to the Lazarus Group. The lab tracked a 128.9% surge in cryptocurrency impersonation threats between October 29 and November 2, 2026. m:…2057

The speed is the story. Attackers are 5.4 times faster at responding to headlines in 2026 than they were in 2022, KnowBe4 reports, and Binance rose from the 73rd to the 23rd most impersonated organization in the lab's dataset within 48 hours of the attack. The United States was the target for nearly 70% of cryptocurrency phishing hits following the breach, with the UK at 18%. The insurance industry accounted for 32.4% of the attacks, finance for 26.9% and the legal industry for 19.4%. m:…2057

The regulated route

The regulated route moved in the opposite direction. Wealthsimple and Tetra Digital Group have partnered to make the CADD stablecoin available to retail investors, and Wealthsimple is the first regulated financial institution to offer CADD to its clients. The stablecoin is 100% backed by low-risk Canadian-dollar assets including cash, money market funds and short-term Canadian government debt, and is redeemable on a 1:1 basis for Canadian dollars. m:…9766

The offer comes with limits stated up front: CADD is not legal tender in Canada and is not backed by any government, and holdings are not insured by the Canada Deposit Insurance Corporation or the Investor Protection Fund. Wealthsimple is offering a promotional rewards program for eligible clients holding CADD, with a 3.25% annual yield. Tetra Trust Company is an Alberta-registered trust company supervised by the Alberta Treasury Board and Finance. Wealthsimple serves more than 4 million Canadians and holds approximately $155 billion in assets under administration as of June 30, 2026. m:…9766

Put together, the week describes a market splitting in two. One side is building guardrails: offboarding risky collateral and launching regulated stablecoins with the limits printed on the label. The other side is exploiting every breach within hours. The guardrails are winning the announcements. The attackers are winning the speed. The gap between the two is the story to watch, because it decides whether the cleanup ever catches up with the crime. m:…1796 m:…2057 m:…9766