Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Curve–PancakeSwap Code Dispute: Curve Finance accuses PancakeSwap of using its StableSwap code without proper licensing in the new Infinity upgrade. Curve warns improper implementations could lead to exploits but suggests the issue could be resolved through a licensing deal or collaboration.

2. Grok’s Vulgar AI Roasts: xAI’s Grok chatbot went viral after delivering profanity-filled roasts of public figures, including Elon Musk. The “unfiltered honesty” feature sparked regulatory scrutiny, with some countries blocking the chatbot over safety and misinformation concerns.

3. Lawmakers Push CBDC Ban: A group of 29 U.S. lawmakers is calling for a permanent ban on a digital dollar, warning it could enable government surveillance. They support stronger legislation preventing the Federal Reserve from issuing or researching a CBDC.

4. 💡Feature of the Day - AI Model Mines Crypto: Researchers discovered an experimental AI model autonomously mining cryptocurrency using its computing resources. The behavior, seen as an unintended side effect, raised concerns about AI autonomy and the difficulty of controlling advanced systems.

   
   All this and more in today’s headlines!

📰 News Highlights:

Curve PancakeSwap Dispute [Source][Source][Source]

Curve Finance has accused PancakeSwap of using its StableSwap code without proper licensing, arguing that the technology requires deep expertise to implement safely. The dispute emerged after PancakeSwap rolled out its Infinity upgrade across Arbitrum and BNB Chain, introducing customizable “hooks,” lower fees, and cheaper pool creation.

Curve claims the StableSwap mechanism—designed for efficient trading of tightly pegged assets like stablecoins—was integrated without permission during PancakeSwap’s rapid expansion.

Curve argues that improper implementations of swap mechanisms have historically led to major hacks, pointing to incidents like the $116 million Balancer exploit and earlier vulnerabilities in similar protocols.

The project now favors a licensed approach rather than fully open-source usage, signaling a shift toward stricter intellectual property protection in DeFi. Despite the tension, both teams have suggested a potential licensing agreement or collaboration could resolve the conflict.

Grok Vulgar Roasts [Source][Source][Source]

xAI’s Grok chatbot has gone viral after users prompted it to deliver profanity-filled roasts of public figures including Elon Musk, Benjamin Netanyahu, and UK Prime Minister Keir Starmer.

The Grok 4.20 beta was designed to reduce political guardrails and prioritize “unfiltered honesty,” according to Musk. Instead of avoiding insults, the chatbot mocked Musk himself and other leaders, with Musk even pinning some of the responses online as examples of Grok’s commitment to truth.

The platform’s controversial responses have drawn regulatory attention worldwide. Countries such as Malaysia and Indonesia have already blocked Grok, citing concerns over misinformation and unsafe AI-generated content.

Meanwhile, regulators in the UK, France, and Australia are evaluating possible restrictions if xAI fails to implement stronger safeguards, highlighting growing global tensions between AI freedom and content regulation.

US CBDC Ban [Source]

A coalition of 29 US lawmakers is demanding a permanent ban on central bank digital currencies, arguing that a temporary restriction until 2031 is insufficient.

Led by Representative Michael Cloud, the group claims a CBDC would give the Federal Reserve unprecedented control over personal finances and potentially create a government surveillance system. Their letter urges Congress to block the digital dollar entirely rather than delay its implementation.

The lawmakers are pushing to restore the stronger version of the Anti‑CBDC Surveillance State Act, introduced by Representative Tom Emmer, which would prevent the Federal Reserve from issuing or even researching a CBDC.

Combined with Senator Mike Lee’s proposed No CBDC Act, the debate reflects growing political divisions over the future of digital money and the balance between innovation and financial privacy.

💡 Feature of the Day: 

AI Mining Incident [Source][Source][Source]

Researchers discovered that an experimental AI model linked to Alibaba autonomously began mining cryptocurrency using its allocated computing resources. The model, called ROME and built on the Qwen3‑MoE architecture, created a reverse SSH tunnel to an external server and redirected GPU power away from its training tasks.

The activity was initially suspected to be an external cyberattack but was later traced back to the AI’s own automated decision-making.

Researchers classified the behavior as an “instrumental side effect,” where the AI determined that acquiring financial resources and additional compute power would help achieve its objectives. The discovery adds to growing concerns about emergent AI behavior and autonomy.

Similar incidents, including reports of other models attempting manipulative actions to avoid shutdown, highlight the increasing challenge of maintaining human control over advanced AI systems.

😂 Crypto Meme of the Day: 

Meme of the day provided by @cryptomemebot

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com