Daily Update

Latest in Blockchain | December 8, 2025

A major scandal took over Crypto Twitter and the SEC set another important meeting agenda.

Aren Rendell

08 Dec 2025 — 3 min read

Welcome to the Meridian Update. We hope you had a great weekend. Let’s dive in.

A Crypto Twitter scandal

Over the weekend, a company called Jupiter got in some hot water with Crypto Twitter. Jupiter is a well-known decentralized exchange aggregator. Jupiter also builds other products that allow other companies to more easily provide users with financial features built on the Solana network.

Crypto Twitter learned that Jupiter had marketed a feature of its “Jupiter Lend” product that turned out to be…not a feature of its Jupiter Lend product. And Crypto Twitter wasn’t so happy. People were saying things like:

“So @JupiterExchange leaders (the self proclaimed champions of PPP) have spent the entire week blaming other protocols, spreading [negative information about others] and just generally behave like 12 year school children rather than heads of a multi billion dollar company

Then today they get exposed for lying to the public about how their new lending platform works, exposing users to significantly far more risk than led to believe

now in a panic they are deleting the marketing tweets about the product where the false claims were made”

12-year old schoolchildren. Wow. So what did Jupiter do wrong? You can think of it as follows:

Jupiter a new product that “enables users to supply assets to earn interest, and to borrow against them to unlock liquidity.” Essentially, it is a way to borrow and lend money.
In advertising that product, Jupiter leaders said the collateral on the product is “isolated.” That is, Jupiter said it was not using user collateral for other purposes. Jupiter said the collateral was “isolated” for its strict use as that user’s collateral.
In practice, this is not what Jupiter did. The collateral was not isolated. Jupiter did something called rehypothecation. That is, Jupiter then used those funds for some other purpose.

What’s the issue here, beyond false advertising? Well, people view isolation and non-isolation of collateral in borrowing products as quite different. Specifically, non-isolation of collateral is an extremely common practice, but it carries an additional risk for a user. If the provider of the borrow-lend system does a great job managing risk on the borrow-lend pools, there’s no issue. In fact, the provider might be “more capital efficient.” But if the provider of the borrow-lend system does a bad job or maybe even just an OK job…Uhh oh. What might happen is that the system finds itself out of balance, users try to repay their loans unexpectedly and the system doesn’t have their collateral, and other shocks to the system cause a whole spiral. This is a bit simplistic, but also pretty good at highlighting the issue.

It’s not so good for a borrow-lend system to say it is doing one thing but doing the other thing. A Jupiter competitor describes it as “fraud.”

Jupiter issued a clarification. People still aren’t, uhh, happy.

Time to SEC what’s happening in regulatory

When you write a daily on-chain report covering Crypto Twitter, decentralized finance, blockchain tech, and on-chain asset regulation, it’s really exciting when the Securities and Exchange Commission (SEC) does meetings about decentralized finance, blockchain tech, and/or on-chain asset regulation. Like, really exciting.

Mark. Your. Calendars. December 15, 2025, the SEC’s Crypto Task Force is holding a roundtable on Financial Surveillance and Privacy. This meeting was actually rescheduled during the government shutdown earlier this fall. The SEC released the updated agenda and panelists on Friday, and it was a doozy. Crypto Twitter found the inclusion of a representative from Zcash, which we’ve discussed on the Meridian Update before, particularly notable:

“The SEC has updated the agenda for its Dec. 15 roundtable on crypto, financial surveillance, and privacy — featuring Zcash founder Zooko Wilcox, and other crypto and blockchain leaders.”

Here is what SEC Commissioner Hester Peirce shared in the announcement of the new meeting agenda:

“New technologies give us a fresh opportunity to recalibrate financial surveillance measures to ensure the protection of our nation and the liberties that make America unique.”

We have a hypothesis about what Commissioner Peirce is referring to when she says “the liberties that make America unique.” The Meridian Update has covered her personal views on privacy before. It should be an interesting meeting. We’ll be covering it, as you know and trust.