Cryptocurrencies

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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Gemini Nano boosts scam detection on Chrome

Google has released a new report outlining how it is using AI to better protect users from online scams across its platforms.

The company says AI is now actively fighting scams in Chrome, Search and Android, with new tools able to detect and neutralise threats more effectively than before.

At the heart of these efforts is Gemini Nano, Google’s on-device AI model, which has been integrated into Chrome to help identify phishing and fraudulent websites.

The report claims the upgraded systems can now detect 20 times more harmful websites, many of which aim to deceive users by creating a false sense of urgency or offering fake promotions. These scams often involve phishing, cryptocurrency fraud, clone websites and misleading subscriptions.

Search has also seen major improvements. Google’s AI-powered classifiers are now better at spotting scam-related content before users encounter it. For example, the company says it has reduced scams involving fake airline customer service agents by over 80 per cent, thanks to its enhanced detection tools.

Meanwhile, Android users are beginning to see stronger safeguards as well. Chrome on Android now warns users about suspicious website notifications, offering the choice to unsubscribe or review them safely.

Google has confirmed plans to extend these protections even further in the coming months, aiming to cover a broader range of online threats.

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LockBit ransomware Bitcoin addresses exposed

Nearly 60,000 Bitcoin addresses linked to LockBit’s ransomware operations have been exposed following a major breach of the group’s dark web affiliate panel.

The leak, which included a MySQL database dump, was shared publicly online and could assist blockchain analysts in tracing LockBit’s financial activity instead of leaving such transactions untracked.

Despite the scale of the breach, no private keys were leaked. A LockBit representative reportedly confirmed the incident in a message, stating that no sensitive access data was compromised.

However, the exposed database included 20 tables, such as one labelled ‘builds’ that contained details about ransomware created by affiliates and their targeted companies.

Another table, ‘chats,’ revealed over 4,400 messages from negotiations between victims and LockBit operators, offering a rare glimpse into the inner workings of ransomware extortion tactics.

Analysts believe the hack may be connected to a separate breach of the Everest ransomware site, as both featured identical messages, hinting at a possible link.

The incident has again underscored the central role of cryptocurrency in the ransomware economy. Each victim is typically given a unique address for payments, making tracking difficult.

Instead of remaining hidden, these addresses now give law enforcement and blockchain experts a chance to trace payments and potentially link them to previously unidentified actors.

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Xapo Bank introduces Bitcoin-backed loans for long-term holders

Xapo Bank’s CEO, Seamus Rocca, sees Bitcoin-backed loans as the next logical step as investor confidence grows. As Bitcoin’s price hovers between $95,000 and $97,000, more investors are choosing to borrow against their BTC instead of selling it.

Xapo Bank’s lending product, launched in March, allows clients to borrow up to $1 million using Bitcoin as collateral.

The demand for such loans is fuelled by a shift in market sentiment, with investors moving from short-term speculation to a longer-term outlook.

Rocca highlighted that institutional adoption, including Bitcoin ETFs, is contributing to this change in attitude. The bank offers flexible loan-to-value (LTV) ratios, allowing borrowers to access liquidity while keeping their BTC.

With conservative LTV levels, Bitcoin prices would need to drop significantly for borrowers to face liquidation, making this an appealing option for long-term holders.

The product helps investors manage emergency expenses without selling their Bitcoin. It’s enabling them to continue benefiting from potential price appreciation while maintaining liquidity.

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Bitcoin scholarships launched at Lomond School

Lomond School has introduced the Satoshi Scholarships, offering 42 scholarships for students passionate about economics and innovation. These cover the prestigious International Baccalaureate (IB) programme, including 21 two-year day and 21 two-year boarding scholarships.

The initiative is backed by economist Dr. Saifedean Ammous, who will help develop a new Austrian economics curriculum. The curriculum will focus on sound money, decentralised finance, and the ethics of financial liberty.

Dr. Ammous expressed his enthusiasm for the project, emphasising the importance of teaching future generations about sound economics. In addition, students will engage with Bitcoin mining hardware and gain practical knowledge of monetary systems.

Lomond School is now seeking 43 founding benefactors to support the scholarships and help shape the next generation of economic thinkers. Interested parties can learn more by contacting the school directly.

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