Cryptocurrencies

€34 million in crypto seized from eXch for facilitating money laundering

German authorities have seized cryptocurrency and server infrastructure worth €34 million ($37.4 million) from the now-defunct eXch crypto exchange. Prosecutors allege the platform operated without proper licences, facilitating money laundering for North Korean hackers involved in the Bybit hack.

The exchange reportedly processed transactions without implementing necessary anti-money laundering controls, attracting criminals seeking to launder stolen funds.

Authorities also claim that eXch was involved in laundering millions from multiple high-profile crypto thefts, including the $1.4 billion Bybit hack. The exchange’s services were available on both the clearnet and the darknet, and advertised on underground criminal platforms.

In addition to cryptocurrency holdings, the confiscated assets include server hardware and other digital infrastructure linked to the exchange’s operations.

While eXch announced its closure last month, blockchain analytics firm TRM Labs suggested that it continued operating. The exchange’s involvement in illicit activities, including refusal to block addresses linked to phishing schemes, has sparked further scrutiny.

As Germany prepares to discuss North Korean crypto hacks at the G7 summit, these latest developments are likely to be high on the agenda.

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McGregor proposes Bitcoin reserve in Irish presidential campaign

Conor McGregor has proposed the creation of a national Bitcoin reserve for Ireland, calling it a move to return financial power to the people.

The former UFC champion announced his independent candidacy for president in March. He shared the Bitcoin proposal in a post on X, linking it to crypto’s core values of decentralisation and empowerment.

His proposal comes during a sharp upswing in the Bitcoin market, with the cryptocurrency recently surging to over $104,000. McGregor aims to host a public X Spaces discussion, inviting major Bitcoin figures to help shape the plan.

Crypto influencers Anthony Pompliano and David Bailey have already shown interest, and McGregor responded positively to their involvement.

Despite the bold idea, the path forward is uncertain. Ireland has never explored a sovereign Bitcoin reserve, and implementing such a strategy could face political and regulatory resistance.

McGregor’s credibility in the crypto space is also under scrutiny. His previous blockchain venture, REAL, collapsed after failing to meet its funding goal and was forced to refund investors. Legal challenges, including an appeal against a civil assault conviction, further complicate his campaign.

Bitcoin, meanwhile, is holding above $103,000 after peaking at $104,765. However, momentum is weakening, with RSI and MACD indicators suggesting reduced buying pressure. If the price drops below $103,000, further downside may follow. For now, traders are watching key support levels closely.

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Stripe launches AI payments model and stablecoin accounts

Fintech leader Stripe has introduced what it calls the world’s first AI foundation model designed specifically for payments. Trained on billions of real transactions, the model captures fine-grained signals that traditional fraud detection systems often miss.

Stripe claims the new system has already improved fraud detection for large enterprises by 64 percent, and it will now be rolled out across its full payments suite.

Alongside its AI launch, Stripe announced new stablecoin-based money management tools, following its $1.1 billion acquisition of crypto platform Bridge in 2023.

Businesses in 101 countries can now open financial accounts in stablecoins, hold balances, receive funds across crypto and fiat rails, and send stablecoins globally.

Stripe said the new accounts will especially benefit entrepreneurs in countries with unstable currencies by providing inflation protection and easier access to international markets.

The company also confirmed deeper ties with major partners. Nvidia has migrated its entire subscriber base to Stripe’s billing infrastructure, while PepsiCo is expanding its use of Stripe’s platform to modernise payments across its United States operations.

Meanwhile, Bridge and Visa have launched the first global debit card linked to stablecoin wallets, further embedding crypto capabilities into traditional finance systems.

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Changpeng Zhao applies for presidential pardon after legal settlement

Changpeng Zhao, founder and former CEO of Binance, has confirmed he formally applied for a presidential pardon after previously denying media reports about it.

In an interview on Farokh Radio on 6 May, Zhao revealed his legal team filed the request following intense media speculation. He mentioned that after reports from Bloomberg and The Wall Street Journal linked him to a pardon, he decided to officially apply.

Zhao cited US President Donald Trump’s pardons of three BitMEX executives as a key motivator behind his decision. In November 2023, Zhao pleaded guilty to violating the Bank Secrecy Act.

It resulted in Binance paying a $4.3 billion fine, with Zhao personally contributing $50 million. He was sentenced to four months in prison and barred from holding a management position at Binance.

Though a pardon would not erase his conviction, it could potentially clear the way for Zhao to return to leadership at Binance.US. However, Zhao, who stepped down as CEO and served his sentence, has said he has no intention of returning to the company’s helm.

He now focuses on advisory roles, helping countries like Pakistan and Kyrgyzstan with crypto regulation.

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Insider trades suspected before MELANIA token launch

A Financial Times investigation has revealed that select wallets bought millions of dollars’ worth of the MELANIA memecoin just minutes before its public launch. These early trades generated nearly $100 million in profits, raising concerns over transparency and potential insider activity.

The MELANIA token, launched on 19 January 2025, was promoted by Melania Trump only two days after the Official Trump token debuted.

Both Solana-based memecoins have faced heavy criticism for lacking utility and appearing more like speculative assets. One wallet alone made over $39 million within 12 hours of launch, having invested just before the token was publicly announced.

Despite the apparent unfair advantage, such actions remain legal under current US regulations, as memecoins are not classified as securities. Still, blockchain analysts have linked MELANIA’s team to other memecoin sniping and pump-and-dump schemes.

Meanwhile, the Official Trump token, run by a separate team, has generated over $1.1 billion in profits, primarily benefiting a small group of large holders.

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New EU regulation to track crypto transfers and ban privacy coins

The European Union is set to introduce new measures under its Anti-Money Laundering Regulation (AMLR) to track cryptocurrency transfers. The EU aims to gather data on both senders and recipients of funds, expanding transparency within crypto-asset service providers.

From 1 July 2027, cryptocurrency exchanges and custodial services will be prohibited from dealing with anonymous wallets and privacy coins. The regulation also mandates ‘intrusive checks’ for self-hosted wallets, requiring verification for transactions over €1,000.

However, this move has sparked concerns within the cryptocurrency industry, with critics arguing that it could limit privacy and push the sector into less transparent markets.

Monero developer Riccardo Spagni and other industry figures fear the regulations could drive privacy-focused firms to relocate to jurisdictions that support privacy rights.

They warn that the EU’s approach could hinder innovation and push parts of the crypto economy into the black market.

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SEC official says crypto ETF process was mishandled

The head of the US SEC Crypto Task Force, Hester Peirce, criticised the way the agency handled the approval process for spot Bitcoin ETFs. She described the process as ‘terribly mismanaged.’

Speaking on Bloomberg’s Trillions podcast, she said the delays had alienated crypto innovators. She urged the industry to remain patient as the regulator works through litigation and policy issues.

Peirce, known as ‘Crypto Mum’ for her pro-crypto stance, noted that many ETF applications remain in limbo, with the SEC currently reviewing 72 filings.

Recent postponements suggest decisions may be pushed to the October deadlines, as the agency weighs legal challenges and broader implications for the financial system.

Despite ongoing discussions and industry roundtables, Peirce reminded listeners that SEC approval does not mean the product is a good investment.

She stressed that it’s up to individuals to decide whether such products suit their needs, as approval only confirms legal compliance—not quality.

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US Senate blocks stablecoin regulation bill

The US Senate voted against advancing the GENIUS Act on Thursday, which sought to regulate stablecoins. The vote, which was 48-49, failed to secure the 60 votes needed to begin formal debate, signalling a setback for the crypto industry’s regulatory hopes.

Bipartisan negotiations had progressed for months, with the Senate Banking Committee previously approving the bill.

However, late opposition from Senate Democrats, who raised concerns about safeguards against illicit finance and foreign stablecoin issuers, derailed momentum.

Some lawmakers also pointed to how Donald Trump has connections to crypto as a complicating factor.

Despite the setback, key figures remain hopeful. Senator Mark Warner stated that the bill isn’t finished yet and still requires revisions to protect Americans.

On the other hand, Republican leaders, such as Senator Cynthia Lummis, warned that delays could hinder US crypto innovation. The debate may continue next week, as lawmakers push for further revisions.

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LockBit ransomware platform breached again

LockBit, one of the most notorious ransomware groups of recent years, has suffered a significant breach of its dark web platform. Its admin and affiliate panels were defaced and replaced with a message linking to a leaked MySQL database, seemingly exposing sensitive operational details.

The message mocked the gang with the line ‘Don’t do crime CRIME IS BAD xoxo from Prague,’ raising suspicions of a rival hacker or vigilante group behind the attack.

The leaked database, first flagged by a threat actor known as Rey, contains 20 tables revealing details about LockBit’s affiliate network, tactics, and operations. Among them are nearly 60,000 Bitcoin addresses, payload information tied to specific targets, and thousands of extortion chat messages.

A ‘users’ table lists 75 affiliate and admin identities, many with passwords stored in plain text—some comically weak, like ‘Weekendlover69.’

While a LockBit spokesperson confirmed the breach via Tox chat, they insisted no private keys were exposed and that losses were minimal. However, the attack echoes a recent breach of the Everest ransomware site, suggesting the same actor may be responsible.

Combined with past law enforcement actions—such as Operation Cronos, which dismantled parts of LockBit’s infrastructure in 2024—the new leak could harm the group’s credibility with affiliates.

LockBit has long operated under a ransomware-as-a-service model, providing malware to affiliates in exchange for a cut of ransom profits. It has targeted both Linux and Windows systems, used double extortion tactics, and accounted for a large share of global ransomware attacks in 2022.

Despite ongoing pressure from authorities, the group has continued its operations—though this latest breach could prove harder to recover from.

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Meta plans new blockchain-based payment system

Meta is assessing the use of stablecoins to facilitate cross-border payments. The company is particularly focused on low-cost transfers for digital content producers on platforms such as Instagram.

The move reflects a renewed interest in integrating blockchain technology following the company’s unsuccessful Diem initiative.

Reportedly in early talks with several cryptocurrency infrastructure providers, the firm has yet to commit to a specific stablecoin issuer.

However, the project is reportedly aimed at enabling low-value international payments for creators and freelancers operating across multiple markets.

Leading the effort is Ginger Baker, Meta’s vice president of product. She previously held senior roles at fintech firm Plaid and currently serves on the board of the Stellar Development Foundation.

The initiative aligns with broader financial sector trends, as companies like Visa, Fidelity, and Bank of America explore the use of stablecoins in regulated digital payment systems.

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