Episode · September 9, 2026

Final Settlement | AI Cybersecurity Just Stole $500M AGAIN (What's Next?)

Timestamps:

00:00 - The first ever Final Settlement live stream

01:37 - 4,000 Bitcoin drained from the Liquid Network

04:21 - How the LBTC supply was inflated

06:11 - Hot keys, quorums, and why TradFi moves slowly

09:21 - The added risk of moving off the base chain

12:54 - A spectrum of risk, from Mt. Gox to open protocols

15:45 - Ben Carmen open sources Lightspark's LSP

18:56 - GPT-6 Astra, Claude 5.1, and the AGI question

22:27 - Matt Pines, StarCloud, and physical superintelligence

24:26 - 21 banks line up behind a joint stablecoin

25:24 - Why the collateral layer is the real prize

29:37 - Transfer agents, T+0, and who owns the ledger

37:16 - Felix Pago, Open Reserve, and Circle buying Tazapay

41:39 - The rumor: tokenized funds from ARK, BlackRock, Fidelity

45:49 - Pledging your ETF and the daisy chain risk

48:34 - AMC's CEO versus Robinhood on tokenized stock

52:54 - Meme coins paired to tokenized equity


The TLDR:

Roughly 4,000 Bitcoin, about $320 million, was drained from the Liquid Network after an exploit let the attacker inflate the supply of LBTC and peg out against reserves the sidechain did not have. Most of the coins have since been offered back, with around 600 retained as a bounty, and a fix for the vulnerability was known but not yet deployed across every signer in the federation. Twenty one banks, including Bank of America, Citigroup, Goldman Sachs and Wells Fargo, committed to a joint dollar stablecoin targeted for 2027. The SEC has proposed overhauling transfer agent rules to support blockchain records, and rumors point to an innovation exemption that would let ARK, BlackRock and Fidelity trade tokenized funds through a transfer agent alone. AMC's chief executive publicly attacked Robinhood over tokenized stock issued without the company's consent.


Know Someone Who'd Find This Interesting?

Follow Early Riders on X and LinkedIn for more insights on the future of finance.

Episode Links:

Listen on Spotify and Apple Podcasts.

All Podcasts Older →

Saddle Up

Get the weekly Early Riders newsletter on Bitcoin, AI, and digital asset markets — a front-row seat to the singularity, delivered directly to your inbox.