Good morning. Crypto firms are racing to backstop the industry’s biggest decentralized lender after North Korea-linked hackers absconded with $190 million from the platform. As of Wednesday, Aave has raised approximately $307 million from industry players in what many are calling the largest recovery effort in DeFi history.

• Wealthy backers: Consensys and its founder Joseph Lubin, Circle Ventures and crypto billionaire Justin Sun are among those who have pledged funds to Aave, which held as much as $75 billion in deposits last year. Decentralized lenders pay users interest for keeping their tokens on the platform, and then lend those assets to others.
   
• Feeling the squeeze: Aave has faced significant pressure since April 18, when hackers affiliated with North Korea’s Lazarus Group gained access to a project unrelated to Aave, and stole some $290 million in cryptocurrency derivatives, according to Chainalysis. The hackers posted the stolen derivatives as collateral on Aave, borrowing $190 million from the platform. Aave was stuck with as much as $230 million in bad debt.
   
• Bank run: The novel attack triggered a panic among Aave depositors, who have withdrawn more than $10 billion since then. As the initial wave of users rushed to exit, Aave reached its limits on how much it could lend out, effectively freezing the remaining assets and leaving subsequent users unable to withdraw. Borrowing rates on Aave surged into double digits as stranded lenders scrambled to borrow stablecoins against their locked collateral.

OpenAI sued by seven families over mass shooting suspect’s ChatGPT use.

Families of seven victims in the Canadian mining town shattered by a mass shooting in February are suing OpenAI over its failure to flag the shooting suspect’s ChatGPT activity to police.

The families filed the suits against the artificial-intelligence company Wednesday, alleging it acted in negligence, violated product liability standards and aided and abetted the shooting, which killed eight people and injured more than 25 in Tumbler Ridge, British Columbia.

CFTC names new whistleblower director.

The U.S. Commodity Futures Trading Commission named one of its former enforcement lawyers to head up its whistleblower program, Risk Journal reports (free link).

The CFTC said Wednesday that Raagnee Beri, a senior assistant general counsel at the regulator, will take over the office responsible for rewarding and protecting whistleblowers who come forward with information about wrongdoing in commodities markets.

• The U.S. wants to ban China’s high-tech cars, but they’re already in El Paso.
   
• The former head of internal audit for electric vehicle company Canoo settled a Securities and Exchange Commission case alleging he traded on insider knowledge about a 2022 deal with Walmart.
   
• A federal judge has sentenced OxyContin maker Purdue Pharma to pay the government $225 million, ending the government’s yearslong criminal case and allowing the pharmaceutical company accused of fueling the opioid epidemic to wrap up a settlement deal to resolve many lawsuits.
   
• Finland's Kone agreed to buy German rival TK Elevator for almost $24 billion in a deal that would create the world’s biggest elevator maker by sales. Analysts warned that the deal, which consolidates a market with four big players into three, could face regulatory hurdles.
   
• Lululemon founder Chip Wilson sent a letter to shareholders urging them to vote for his three board nominees, as he critiqued the company’s new selection for CEO as evidence of “broken governance.”

The global energy order is breaking down.

The Iran war is scrambling the longstanding foundations of the oil market, ushering in a more fragmented and potentially more volatile energy world. The free flow of petroleum across oceans is out. Resource nationalism is in.

The latest rupture of the global energy map came Tuesday, when the United Arab Emirates said it would leave the Saudi Arabia-led Organization of the Petroleum Exporting Countries, dealing a major blow to a cartel of oil producers that was designed in part to tame an industry famed for booms and busts. Instead, the U.A.E. is striking out on its own.

That and other moves are accelerating a shift from an oil market structured around economic efficiency toward one shaped by politics and conflict.

• The U.A.E.’s OPEC Bombshell Signals a New Middle East Order

Iranians feel the pain as their economy descends into a death spiral.

War has imposed a heavy cost on Iran’s economy: more than a million people out of work, soaring food prices and a prolonged internet shutdown that has slammed online businesses.

The question is how much more pain Iran’s leaders are willing to tolerate as they try to negotiate a favorable end to the war.

Talks between the U.S. and Iran have stalled. American officials are betting that Iran will soon crack because of the deepening economic crisis. Iran is betting the U.S. will crack first and end its blockade of Iranian ports to calm global markets and bring down American gasoline prices.

• Lloyds Banking Group Warns About War’s Hit to U.K. Economy

• President Trump said Wednesday that he and Russian President Vladimir Putin discussed a pause in military action in Ukraine during a phone call.
   
• The U.S. charged the governor of Mexico’s Sinaloa state and other officials with drug trafficking, stepping up pressure against the country’s government in the fight against powerful cartels.
   
• The eurozone economy weakened at the start to the year, and is likely to struggle ahead as a jump in energy prices curbs consumer spending and delays a hoped-for recovery in industry.
   
• Taiwan’s economy expanded at its fastest pace in 39 years, supercharged by demand tied to artificial intelligence, despite lingering risks from the Middle East conflict threatening to halt that momentum.

The Dow Jones Risk Journal Summit London on May 7 will convene senior business professionals for discussions on a range of corporate risks including supply chains, artificial intelligence, geopolitics and financial crime. Speakers include: Kathy Wengel, EVP, Chief Technical Operations and Risk Officer, Johnson & Johnson; Nish Imthiyaz, Global Privacy and Responsible AI Counsel, Vodafone; and Will Mayes, Chief Executive, Cyber Monitoring Centre.

Request a complimentary invitation here using the code COMPLIMENTARY. Attendance is limited, and all requests are subject to approval.

• AI startup offices in New York City are flashy but mostly empty.
   
• The Canadian government authorized a generic version of Ozempic developed by Dr. Reddy’s Laboratories, making it the first G7 country to approve a generic version of the massively popular GLP-1 diabetes treatment.
   
• The Supreme Court on Wednesday sharply restricted states from using race to draw voting districts that help minority communities elect their preferred candidates.
   
• Internships are more crucial than ever and even harder to find.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com and Richard Vanderford at richard.vanderford@wsj.com.

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