Democratic leaning organizations and members of Congress have announced plans to protest what they describe as the sale of access to the office of the US president, in reference to Donald Trump’s memecoin dinner on May 22. The event’s attendees are said to have collectively spent over $100 million for the chance to meet with the US president. Since Trump’s memecoin project, Official Trump (TRUMP), announced that its top 220 tokenholders would have an opportunity to apply for an exclusive dinner with the president, many leaders in the crypto industry and US lawmakers have criticized the event, saying Trump was opening his office to potential bribery and corruption. The memecoin dinner prompted some Democratic lawmakers to withdraw support for crypto-related legislation in Congress, including the market structure and stablecoin bills. “Trump collecting gifts from foreign governments is unconstitutional,” a spokesperson for the consumer advocacy organization Public Citizen, which is planning to protest near the memecoin dinner on May 22, told Cointelegraph. “Collecting foreign government investments through his memecoin is not much better. American foreign policy should not be for sale.” Source: Public Citizen Crypto industry figures such as Tron founder Justin Sun, Kronos Research chief investment officer Vincent Liu, Hyperithm co-CEO Oh Sangrok, and Synthetix founder Kain Warwick are among the tokenholders expected to attend the dinner at the Trump National Golf Club outside Washington, DC. The memecoin project said all applicants had to pass a background check and could not be from a “[Know Your Customer] watchlist country.” Related: Democrats seek suspicious activity reports linked to Trump crypto ventures Public Citizen, in partnership with progressive political organization Our Revolution, will hold a rally near the golf club, which Oregon Senator Jeff Merkley is expected to attend. In addition, the Arlington and Loudoun Democrats will be hosting a separate event to urge US officials to “hold [Trump] accountable,” and Democratic leadership in Congress has scheduled two press events on May 22 ahead of the dinner. “Americans cannot and will not accept President Trump’s view that positions of power exist only to benefit the holder of that power,” Ryan Ruzic, chair of the Loudoun County Democratic Committee, told Cointelegraph. “We have a moral responsibility to speak out against corruption, whatever the result may be.” Pushback on TRUMP memecoin affected crypto legislation Some lawmakers initially cited the memecoin dinner and the Trump family’s involvement with the crypto platform World Liberty Financial in opposing passage of the GENIUS Act, a bill to regulate payment stablecoins. World Liberty Financial began issuing its own USD1 stablecoin in March, prompting concerns about Trump’s conflicts of interest. However, the legislation passed a key procedural vote in the Senate on May 19 with support from Democrats, setting the bill up for debate in the chamber. “Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans,” said Sen. Mark Warner in a statement before the May 19 vote, adding: “But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.” Senator Chris Murphy, who voted against advancing the GENIUS Act, called for bipartisan support in amending the bill to specifically bar a US president from issuing stablecoins. He also called on the White House to release a complete list of attendees to the memecoin dinner, suggesting that some or all of them would “try to get something from the president” in exchange for purchasing the tokens. Murphy and Senator Elizabeth Warren will attend a press event with representatives for Public Citizen on May 22. California Representative Maxine Waters, ranking member of the US House Financial Services Committee, announced a separate press conference for the same day, with plans to introduce a bill to “block Trump’s memecoin and stop his crypto corruption, once and for all.” As of May 21, the exact number of attendees to the dinner was unknown. A smaller group of 25 tokenholders also qualified to apply for “VIP tour” and reception — presumably at the White House — with Trump, but the complete list of those planning to attend was also unknown at the time of publication. Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

The Texas House of Representatives has passed the third reading of SB 21, a bill that seeks to establish a strategic Bitcoin reserve in the state. The bill passed via a 101-42 vote and will now go to Texas Governor Greg Abbott’s desk for either a signature or a veto. SB 21, authored by state Senator Schwertner, establishes a Bitcoin (BTC) reserve that is managed by the state’s comptroller. The legislation allows the comptroller to invest in any cryptocurrency with a market cap above $500 billion over the previous 12-month period. Currently, the only cryptocurrency fitting the requirements is Bitcoin. Rep. Capriglione presenting SB 21. Source: Bitcoin Laws Before the vote, state representative Capriglione said to the chamber that the bill was a “pivotal moment in securing Texas’s leadership in the digital age with the passage of our strategic Bitcoin reserve. Now, we embrace a modern asset with traditional properties for future promise.” This is a developing story, and further information will be added as it becomes available.

Stablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector. After failing to gain support from key Democrats on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66–32 procedural vote on May 20 and is now heading to a debate on the Senate floor. The bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws. Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K “This act doesn’t just regulate stablecoins, it legitimizes them,” said Andrei Grachev, managing partner at DWF Labs and Falcon Finance. “It sets clear rules, and with clarity comes confidence. That’s what institutions have been waiting for,” Grachev told Cointelegraph during the Chain Reaction daily X spaces show on May 20, adding: “Stablecoins aren’t a crypto experiment anymore. They’re a better form of money. Faster, simpler, and more transparent than fiat. It’s only a matter of time before they become the default.”Source: CointelegraphSenate bill seen as path to unified digital system The GENIUS Act may be the “first step” toward establishing a “unified digital financial system which is borderless, programmable and efficient,” Grachev said, adding: “When the US moves on stablecoin policy, the world watches.” Republican Senator Cynthia Lummis, a co-sponsor of the bill, also pointed to Memorial Day as a “fair target” for its potential passage. Grachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted. Yield-bearing stablecoins issuance. Source: Pendle Yield-bearing stablecoins now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21. Related: Stablecoins seen as ideal fit for real-time collateral management GENIUS Act regulatory gaps don’t address offshore stablecoin issuers Despite broad support for the GENIUS Act, some critics say the legislation does not go far enough. Vugar Usi Zade, the chief operating officer at Bitget exchange, told Cointelegraph that “the bill doesn’t fully address offshore stablecoin issuers like Tether, which continue to play an outsized role in global liquidity.” He added that US-based issuers will now face “steeper costs,” likely accelerating consolidation across the market and favoring well-resourced players who can meet the new thresholds. Still, Zade acknowledged that the legislation could bring greater “stability” to regulated offerings, depending on how it is ultimately worded and enforced. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Hong Kong’s Legislative Council has passed the Stablecoin Bill, paving the way for a regulated framework that could position the region as a global leader in digital assets and Web3 development. In a May 21 post on X, Legislative Council member Johnny Ng Kit-Chong said the bill passed its third reading, clearing the final hurdle for adoption. “It is expected that by the end of this year, major institutions will be able to apply to the Hong Kong Monetary Authority to become licensed stablecoin issuers,” Ng said. Image of the legislative assembly session. Source: Johnny Ng Kit-Chong According to the new Hong Kong legislation, stablecoins must be backed by fiat currency as underlying assets. Ng said Hong Kong is welcoming “global enterprises and institutions interested in issuing stablecoins to apply in Hong Kong,” offering to personally assist with introductions and collaboration: “I am also happy to facilitate connections and collaborate with all stakeholders to advance the development of Web3 in Asia and globally, with Hong Kong at the center.“ Related: Hong Kong introduces crypto staking rules, reaffirms Web3 commitment Hong Kong aims to become a web3 powerhouse Ng said the legislation marks the first step on the road toward building Web3 infrastructure in Hong Kong. “The most crucial step is to develop more real-world applications.” Ng said stablecoin adoption has the potential to drive innovation in retail payments, cross-border trade, and peer-to-peer transactions. He added that he encourages the development and adoption of stablecoins, since “they represent a major financial innovation.” Regarding enhancing market stability, Ng suggested distributing interest earnings to stablecoin holders. Related: HashKey receives Hong Kong approval to offer crypto staking services Interest for stablecoin holders According to Ng, “providing interest will strengthen the competitiveness of stablecoins.” This increased competitiveness, he explained, incentivizes broader participation and expands stablecoin market share, which supports what he views as sustainable growth. Ng’s remarks that yield-bearing stablecoins are more competitive follow recent data showing that this is the case. Recent research indicates that yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market, a steep climb from just $1.5 billion and a 1% market share at the start of 2024. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Bitcoin Suisse secured an in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), marking a major step in the Swiss crypto firm’s expansion beyond the European Union. The Swiss crypto financial service provider has received in-principal approval through its subsidiary BTCS (Middle East), according to a May 21 press release. The IPA is a precursor to a full financial services license, which will allow Bitoin Suisse to provide regulated crypto financial services such as digital asset trading, crypto securities and derivatives offerings, as well as custody solutions. The approval reflects the firm’s “strong commitment to maintaining the highest standards of transparency, security, and regulatory compliance,” according to Ceyda Majcen, head of global expansion and designated senior executive officer of BTCS (Middle East). Source: Bitcoin Suisse “Abu Dhabi, one of the Middle East’s fastest-growing financial centers, presents a compelling opportunity for growth. We look forward to working closely with the FSRA to obtain our full license,” Majcen wrote in a May 21 X announcement. Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K This marks Bitcoin Suisse’s first expansion outside of the European Union. Founded in 2013, Bitcoin Suisse played a significant role in developing the country’s crypto ecosystem and has been a key contributor to Switzerland’s Crypto Valley — a Switzerland-based blockchain ecosystem valued at more than $500 billion. Crypto Valley Unicorns. Source: CvVc.com Related: Hoskinson promises audit, is ‘deeply hurt’ by $600M Cardano treasury claims Crypto firms bet on Middle East as next global crypto hub Increasingly more crypto firms are expanding into the Middle East, seeing the region as the next potential global crypto hub due to its business-friendly regulatory licensing environment. On April 29, Circle, the issuer of the world’s second-largest stablecoin, USDC (USDC), received an in-principle approval from the FSRA, coming one step closer to the full license to become a regulated money service provider in the United Arab Emirates. A day earlier, the Stacks Asia DLT Foundation partnered with ADGM, becoming the first Bitcoin-based organization to establish an official presence in the Middle East, Cointelegraph reported on April 28. As part of the partnership, the Stacks Foundation aims to advance progressive regulatory frameworks in the Middle East. “We’re not just focused locally — our team is engaged in global conversations, advocating for frameworks that balance decentralization, security, innovation, and compliance surrounding the unlocking of Bitcoin capital,” Kyle Ellicott, executive director at Stacks Asia DLT Foundation, told Cointelegraph. The foundation is also developing the Bitcoin Capital Activation Framework, described as a comprehensive policy blueprint to help regulators enable Bitcoin utility in their jurisdictions. Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest, May 11 – 17

Mobile-first crypto exchange and payment platform Crypto.com has secured a license allowing it to offer cryptocurrency financial derivatives in the European Economic Area. According to a May 21 announcement, Crypto.com secured a Markets in Financial Instruments Directive (MiFID) licence. “We have already expanded our brand presence in Europe since receiving our MiCA licence and we now look forward to providing customers across the region even more ways to engage with our platform through these new offerings,” Crypto.com’s co-founder and CEO, Kris Marszalek, said. Source: Crypto.com The announcement follows Crypto.com receiving in-principle approval to operate across the European Union under a Markets in Crypto-Assets (MiCA) license in mid-January. The company received regulatory approval for its acquisition of Cyprus-based trading services firm A.N. Allnew Investments from the Cyprus Securities and Exchange Commission (CySEC). Crypto.com has not immediately answered Cointelegraph’s request for comment. Related: Coinbase’s Deribit buy shows growing derivatives market A popular strategy This is not the first crypto company to have obtained a MiFID license by acquiring a Cyprus-based financial firm in recent times. On May 20, cryptocurrency exchange Kraken announced the launch of regulated derivatives trading on its platform under the European Union’s Markets in Financial Instruments Directive (MiFID II). Like Crypto.com, a Cyprus-based entity plays a role in the strategy, with Kraken relying on MiFID II-regulated entity Payward Europe Digital Solutions to offer its derivatives. The launch follows Kraken completing its acquisition of the futures trading platform NinjaTrader earlier in May as its first-quarter revenue jumped 19% year-on-year to $471.7 million. Related: CFTC mulling probe of Crypto.com over Super Bowl contracts: Report Crypto derivatives are all the rage Recently, Coinbase CEO Brian Armstrong said his firm will continue to look for merger and acquisition opportunities, after acquiring crypto derivatives platform Deribit. The comments came after the publicly listed US crypto exchange earlier this month agreed to acquire Deribit, one of the world’s biggest crypto derivatives trading platforms. Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Lastly, decentralized finance platform Synthetix also plans to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive. Crypto.com has also gone through its fair share of acquisitions. Those include Fintek Securities Pty., Charterprime, Orion Principals and SEC-registered broker-dealer Watchdog Capital. Magazine: How crypto laws are changing across the world in 2025

United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce said many nonfungible tokens (NFTs), including those with mechanisms to pay creator royalties, likely fall outside the purview of federal securities laws. In a recent speech, Peirce said that NFTs that allow artists to earn resale revenues do not automatically qualify as securities. Unlike stocks, NFTs are programmable assets that distribute proceeds to developers or artists. The SEC official said the model mirrors how streaming platforms compensate musicians and filmmakers. “Just as streaming platforms pay royalties to the creator of a song or video each time a user plays it, an NFT can enable artists to benefit from the appreciation in the value of their work after its initial sale,” Peirce said. Peirce added that the feature does not provide NFT owners any rights or interest in any business enterprise or profits “traditionally associated with securities.” SEC never prohibited NFT royalties Oscar Franklin Tan, chief legal officer of Enjin core contributor Atlas Development Services, told Cointelegraph that the recent remarks by Peirce on NFTs and creator royalties have been widely misunderstood. Peirce had clarified that NFTs that send resale royalties to artists are not necessarily securities, a view Tan says is legally sound but mischaracterized in some media reports. “So Hester Peirce said that an NFT that sends royalties back to the creator after a sale is not a security. This is correct, but the way some media reported this is completely out of context,” Tan told Cointelegraph. “The actual context is that this is not controversial, and it was never considered a security.” The lawyer said US securities law focuses on regulating investments and not compensating creators for their work. “The artist or creator is not an investor, not a passive third party in the NFT,” he said, noting that royalty payments are not considered investment income. Instead, Tan told Cointelegraph that this type of earning is “analogous to business income,” which the SEC does not regulate. He added: “The SEC never prohibited contracts where artists and creators get royalties from secondary sales of their work, not royalties from paper contracts or blockchain protocols.” Tan explained that the legal distinction becomes more complicated when NFTs promise shared profits from royalties to multiple holders beyond the original creator. Tan also urged regulators and market participants to apply traditional legal reasoning to new blockchain technologies. “Ask yourself, if this were done by pen and paper instead of blockchain, would there still be a regulatory issue?” he said. “If none, slow down.” Source: Oscar Franklin Tan Related: SEC charges Unicoin crypto platform over alleged $100 million fraud OpenSea calls on the SEC to exempt NFT marketplaces from oversight While NFT royalties may not have been a controversial SEC issue, NFT marketplaces are a different case. In August 2024, NFT trading platform OpenSea received a Wells notice from the SEC, alleging that NFTs traded on the marketplace could qualify as unregistered securities. On Feb. 22, OpenSea CEO Devin Finzer announced that the SEC has officially closed its investigation into the platform. The executive said that this was a win for the industry. Following the conclusion of the SEC's investigation, OpenSea's lawyers penned a letter to Peirce, who leads the SEC's Crypto Task Force. OpenSea general counsel Adele Faure and deputy general counsel Laura Brookover said in an April 9 letter that NFT marketplaces don't qualify as brokers under US securities laws. The lawyers said the marketplaces don't execute transactions or act as intermediaries. The lawyers urged the SEC to “clearly state that NFT marketplaces like OpenSea do not qualify as exchanges under federal securities laws.” Magazine: NBA star Tristan Thompson misses $32B in Bitcoin by taking $82M contract in cash

South Korea is tightening rules around digital asset transactions as it prepares to allow institutional players into its crypto market, introducing new guidelines for nonprofit crypto sales and stricter listing standards for exchanges. On May 20, the Financial Services Commission (FSC) of South Korea said it had finalized sweeping new measures during its fourth Virtual Asset Committee meeting. Set to take effect in June, the updated rules allow both nonprofit organizations and virtual asset exchanges to sell cryptocurrencies but under new compliance standards. Nonprofit entities must have at least five years of audited financial history to be permitted to receive and sell virtual asset donations. They will also need to establish internal Donation Review Committees to assess the appropriateness of each donation and the liquidation strategy. To reduce risks of money laundering, all donations must be routed through verified Korean won exchange accounts, with verification responsibilities placed on banks, exchanges and the nonprofits themselves. Furthermore, only cryptocurrencies listed on at least three major domestic exchanges will be eligible, and liquidation is expected to occur immediately upon receipt. Guidelines regarding nonprofits selling crypto donations. Source: FSC Related: Top South Korean presidential hopefuls support legalizing Bitcoin ETFs Exchange sales to be restricted Crypto exchanges will be allowed to liquidate user fees paid in crypto, but only to cover operational costs. Sales will be capped at daily limits, typically no more than 10% of the total planned amount. Furthermore, sales will only be permitted for the top 20 tokens by market cap across five won-based exchanges. Importantly, exchanges are barred from selling tokens on their own platforms to prevent conflicts of interest. South Korea is also tightening standards for listing digital assets. The revised rules aim to curb instability from sudden price spikes by requiring a minimum circulating supply before a token is allowed to trade and temporarily restricting market orders post-listing. So-called zombie tokens (with low volume and thin market caps) and memecoins without clear utility will now face more scrutiny. For instance, exchanges must delist tokens if they fail to meet liquidity benchmarks or community engagement thresholds. Starting in June, exchanges and nonprofits can apply for real-name accounts to facilitate these sales. Later this year, the FSC plans to extend real-name accounts to listed firms and professional investors. Cointelegraph contacted South Korea’s Digital Asset eXchange Association for comment, but had not received a response by publication. Related: RedotPay enters South Korea with crypto-powered payment cards South Korean candidates push pro-crypto agenda South Korea’s Democratic Party leader Lee Jae-myung has proposed launching a stablecoin pegged to the Korean won, aiming to curb capital flight and bolster the country’s financial autonomy. Speaking at a recent policy forum, Lee said a won-based stablecoin could help retain domestic wealth and reduce dependence on foreign-backed digital currencies such as USDt (USDT) and USDC (USDC). The initiative is part of Lee’s broader push for digital asset reforms, which also includes legalizing spot crypto exchange-traded funds (ETFs). His rival, Kim Moon-soo of the ruling People Power Party, has also expressed support for introducing spot crypto ETFs, signaling bipartisan momentum on the issue. Magazine: NBA star Tristan Thompson misses $32B in Bitcoin by taking $82M contract in cash

Haliey Welch, better known as the “Hawk tuah girl,” says the Federal Bureau of Investigation briefly probed her after her “memecoin disaster” — the failed launch of a token in her image that she promoted. Welch said in a May 21 episode of her “Talk Tuah” podcast that the FBI showed up at her grandmother’s house looking to speak to her over the Hawk Tuah (HAWK) crypto token, which many crypto commentators have called an exit scam. “After the coin launch, the feds came to granny’s house and knocked on her door, and she called me, having a heart attack, saying: ‘The FBI is here after you, what have you done?’” Welch said she handed over her phone to the FBI and met with agents who “interrogated me, asking me questions and everything else related to crypto.” “They cleared me, I was good to go,” Welch said. Welch went viral for her response about an oral sex technique in a vox pop interview posted to YouTube in June. The HAWK memecoin, based on her viral catchphrase, launched in early December and almost immediately lost 90% of its value and blockchain analytics firm Bubblemaps’ alleged insider wallets and snipers bought up and dumped massive quantities of the token at launch. Haliey Welch speaking on her Talk Tuah podcast about the HAWK memecoin. Source: YouTube Welch said on her podcast that the Securities and Exchange Commission also asked for her phone, and she sent it off “for two or three days” before she was cleared. Welch’s lawyer James Sallah told TMZ in March that the SEC “closed the investigation without making any findings against, or seeking any monetary sanctions from, Haliey.” “I trusted the wrong people” Welch admitted knowing very little about crypto before the HAWK memecoin and said she “trusted the wrong people” for the launch. She claimed a company, which she said she couldn’t name for legal reasons, was in full control of her X account, which posted videos of her promoting the memecoin. Welch said she was sent lines to record on video, which were then posted on her X account by someone she trusted but could also not legally name. She added that on the day of HAWK’s launch, she “kind of knew something was up” and was pulled into a room where a team of people told her to talk on a livestream with YouTuber Stephen Findeisen, better known as Coffeezilla. “Coffeezilla got on there and they're like ‘Mute it, mute it,’” Welch said. “Nobody warned me about this guy at all, like nobody at all, they didn't tell me he was like a crypto wizard, that's exactly what he is — he ate me the fuck up.” Related: Justin Sun to attend Trump's dinner with memecoin backers Welch said she was only paid a marketing fee and “did not make a dime from the coin itself,” which she said had been totally spent on legal and public relations fees. A now-deleted post where Welch shared the HAWK token’s tokenomics before it launched. Source: X Despite being cleared of any legal wrongdoing, Welch took some accountability, admitting that she let many of her fans down who invested in the coin: “It makes me feel really bad that they trusted me, and I led them to something that I did not have enough knowledge about. I did not have enough knowledge about crypto to be getting involved with it. And I knew that, but I got talked into it, and I trusted the wrong people.” A group of HAWK buyers sued the alleged creators of the token in December, claiming Alex Schultz, the token’s backing Tuah the Moon Foundation, the token launchpad overHere Limited, and its founder Clinton So promoted and sold HAWK as an unregistered security. Welch wasn't named as a defendant. Magazine: ‘Normie degens’ go all in on sports fan crypto tokens for the rewards

The US Securities and Exchange Commission has charged crypto platform Unicoin and three of its executives, alleging they made false and misleading statements about its crypto assets that raised $100 million from investors. The SEC said on May 20 that it charged Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez with misleading investors about certificates that conveyed rights to receive Unicoin tokens and stock. Mark Cave, associate director in the SEC’s Division of Enforcement, claimed the trio “exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings.” Related: SEC crypto task force to release first report 'in the next few months' “The real estate assets were worth a mere fraction of what the company claimed, and the majority of the company’s sales of rights certificates were illusory,” Cave added. The SEC’s complaint, filed in a Manhattan federal court, charged Unicoin and the three executives with various securities laws violations and asks for permanent injunctive relief, along with paying back the allegedly ill-gotten gains. Magazine: SEC’s U-turn on crypto leaves key questions unanswered

After weeks of speculation among crypto enthusiasts and news outlets, Tron founder Justin Sun has claimed he owns the wallet that purchased the largest amount of Donald Trump’s memecoin, allowing him to qualify for a dinner and reception with the US president. In a May 19 X post, Sun said he had received an invitation to attend Trump’s dinner at his golf club outside Washington, DC, as part of a reward for the top 220 memecoin holders. The Tron founder claimed he controlled the top wallet on the TRUMP token leaderboard under the username “Sun,” which held roughly $19 million worth of the memecoin at a price of $13.20. According to Sun, he plans to network at the May 22 memecoin dinner, “talk crypto,” and “discuss the future” of the industry. It’s unclear why the Tron founder chose to announce his planned presence at the event now, when the leaderboard was finalized on May 12. Cointelegraph reached out to a spokesperson for Sun for comment, but had not received a response at the time of publication. Source: Justin Sun Though not a surprise to many who speculated that Sun was the individual behind the memecoin purchases, his attendance at the dinner only deepens his ties to the Trump administration and the president’s family. In addition to the dinner for the 220 tokenholders, Trump said he would hold a reception and “VIP tour” for the top 25 wallets on the leaderboard. Related: What to expect at Trump’s memecoin dinner Sun spent $75 million on tokens through World Liberty Financial, the crypto platform backed by Trump’s three sons, including a $30 million investment a few weeks after the 2024 election. The Tron founder is also an adviser to the company. Before Trump won the November election, Sun had been facing a lawsuit from the US Securities and Exchange Commission (SEC) filed in 2023 over the alleged “orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting of crypto asset securities.” In February, roughly a month after Trump took office and appointed Commissioner Mark Uyeda as acting chair of the SEC, the regulator and Sun jointly filed a motion for a federal judge to stay the case, which was granted. Memecoin’s potential conflicts of interest are affecting Congress Sun’s and others’ involvement in Trump’s crypto ventures has prompted calls for investigations and oversight among many Democratic lawmakers, who argued that some individuals could use digital assets to essentially purchase influence with the president. The concerns initially slowed progress on a bill to regulate stablecoins in the Senate, the GENIUS Act, complicated by World Liberty Financial’s own stablecoin, USD1. The chamber voted to move forward on the bill on May 19, a few hours before Sun’s announcement. “How convenient: the day after the Senate advances the GENIUS Act, Justin Sun — a major investor in the Trump family crypto venture — announces he’s getting a private dinner as the president’s top crypto buyer,” said Massachusetts Senator Elizabeth Warren, according to Bloomberg. “It’s critical that everyone understands the GENIUS Act doesn’t stop this type of corruption — it greenlights it.” At a May 20 oversight hearing, Maryland Representative Glenn Ivey questioned SEC Chair Paul Atkins on Sun’s case being stayed, as well as his investments in World Liberty Financial and Trump’s memecoin. Though the case was stayed before Atkins was sworn in as chair, Ivey expressed concern about the timeline between Sun’s investments and the SEC not pursuing its own enforcement action. The memecoin dinner applicants are likely still subject to background checks before meeting Trump in person. As of May 20, those planning to attend included Kronos Research chief investment officer Vincent Liu, Hyperithm co-CEO Oh Sangrok, Synthetix founder Kain Warwick, a consultant named Vincent Deriu, crypto user Morten Christensen, a World Liberty Financial adviser going by the pseudonym “Ogle,” and a representative from the startup MemeCore. Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

US Securities and Exchange Commission (SEC) Paul Atkins appeared before lawmakers in one of his first hearings since becoming chair of the financial regulator, addressing questions about his plans for the cryptocurrency industry. In a May 20 hearing discussing oversight of the SEC, Atkins reiterated his pledge to make regulating digital assets a “key priority” while chair. In response to questions from North Carolina Representative Chuck Edwards, the SEC chair did not directly answer how much of the regulator’s funds were used to support the crypto task force headed by Commissioner Hester Peirce, and said its findings were “still under development.” “We should be having something here in the next few months with proposed steps forward,” said Atkins in response to the task force’s first report. The SEC chair’s appearance at the oversight hearing was one of his first since being sworn into office in April. Nominated by Donald Trump, Atkins, also a former commissioner, was seen by many lawmakers and those in the digital asset industry as someone who could radically change the SEC’s approach to crypto. This is a developing story, and further information will be added as it becomes available.

Argentine President Javier Milei has dissolved a task force established to investigate the fallout from LIBRA, the scandalous cryptocurrency project the head of state promoted on his social media channel before it crashed to zero. The Investigative Task Force (ITU) was dissolved via a May 19 decree signed by Milei and Justice Minister Mariano Cúneo Libarona, government documents revealed. “The Research Task Unit is dissolved” after completing its mandate, the translated version of the decree read. The task force is being dissolved despite pressure from opposition groups, which are seeking to activate an investigative commission as soon as May 20, local media outlet Clarin reported. A screenshot of Milei’s tweet endorsing LIBRA. Source: TRM Labs Government officials established the UTI on Feb. 19, mere days after President Milei promoted LIBRA on his official X account. His endorsement briefly sent LIBRA soaring from practically worthless to $5 a token and a nearly $5 billion market capitalization, before quickly crashing to zero in what appeared to be a classic pump-and-dump scheme. The fallout from LIBRA sparked allegations of insider trading and manipulation, with President Milei caught in the crosshairs. In addition to facing an investigation, Milei’s credibility suffered at home, with nearly 58% of Argentinians saying they no longer trust the president for his role in the scandal. This is a developing story, and further information will be added as it becomes available.

US Senate Democrats are getting flak after they helped move stablecoin legislation ahead for discussion on the Senate floor. On May 19, 16 Democratic senators broke from the party line to pass a motion to invoke cloture, which will now set the bill up for debate on the Senate floor. Some of the same Democrats had held up the bill in early May when they withdrew support, citing corruption concerns over President Donald Trump’s cryptocurrency dealings. The bill’s opponents hailed lawmakers’ refusal to support it but were soon taken aback when the senators reversed their position. The lightly amended legislation contained no provisions regarding World Liberty Financial, the Trump family’s crypto venture. Some activists have said that the Democrats supporting the bill should be ousted in the upcoming Democratic primaries in 2026, reflecting a growing rift in the Democratic Party over cryptocurrencies. The Senate voted 66-32 to move the bill ahead. Source: Stand With CryptoDemocratic lawmakers’ approach to crypto shows split in party On May 19, moderate Democratic Senator Mark Warner announced he would support progressing the bill, stating that it was “not perfect, but it’s far better than the status quo.” Warner set corruption concerns aside, stating, “Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight [...] But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.” Warner concluded it would be better for the US to move on imperfect stablecoin legislation than to fall behind other jurisdictions. Democratic Senator Kirsten Gillibrand, one of the bill’s sponsors, also pushed aside Trump corruption concerns, saying they should be addressed separately. Related: US Senate moves forward with GENIUS stablecoin bill “A lot of what President Trump is engaged in is already illegal,” she said, adding that she didn’t want the president’s scandals to “distract us from the important goal of having a clear regulatory structure in the United States that can onshore this industry.” During the vote, progressive Democrats disagreed. Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee and a vocal critic of the crypto industry, reportedly got into a heated argument with Gillibrand on the Senate floor. Warren argued on the Senate floor ahead of the vote, “A bill that turbocharges the stablecoin market, while facilitating the President’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all.” Democrats opposing the bill aren’t giving up either. Senator Michael Bennet of Colorado, who voted against the GENIUS Act, immediately introduced another bill, jokingly named “the STABLE GENIUS Act,” combining the names of the bills in the Senate and House of Representatives. The bill would prevent the president, vice-president and members of Congress from “issuing or endorsing digital assets” and require them to place any assets they hold in a blind trust while in office. While the bill has little chance of passing — numerous acts that would limit members’ of Congress financial activities have fizzled out — it shows the Democrats are split on how they should provide opposition. Democratic activists lambast Democratic GENIUS supporters The progressive and activist wings of the Democratic party have roundly criticized Congressional leadership for compromising with Republicans on measures that, they claim, should be deal breakers. In March, activists were enraged when Senator Chuck Schumer, a Democrat from New York and minority leader in the Senate, voted with the Republicans on a continuing resolution for government funding. One progressive observer accused him of giving up leverage and weakening the Democratic position. Then, in April, disagreements over how Democrats should fight Trump’s mass deportations further deepened the rift. Now, crypto has become another wedge between the activist wing, which provides crucial voter activation during elections, and centrists in Congress. Ezra Levin, co-founder and co-executive director of progressive activist organization Indivisible, wrote on BlueSky: Ezra Levin commenting on crypto bill. Source: Ezra Levin Public communications strategist Murshed Zaheed, who formally worked for the offices of Senator Harry Reid and Representative Louise Slaughter, urged people to call their senators to come out against the bill. “Any Democrat who votes for this today — should never be taken seriously again if they send out emails, text and do videos [...] talking a big game about Trump’s corruption,” he said. Related: What to expect at Trump’s memecoin dinner Chris Kluwe, a former American football player who has since become a prominent activist within Democratic politics, said on May 20 he was “excited to get a chance to speak at the CA state Dem convention on May 31st, I’m sure [the bill] won’t come up at all in the 4 minutes I’ve been allotted.” On BlueSky, labor researcher and media law historian Peter Labuza posted “Primary List” in reply to a post of the 16 Democratic senators who helped support the bill. The subject of primary elections, the intra-party elections to decide who will represent the party in a given district, has also grown contentious. On May 12, the Democratic National Convention (DNC) voted to void the results of an internal party vote nominating David Hogg as a vice chair. The decision essentially strips Hogg of his title at the DNC and, with it, the ability to promote his controversial policy of sponsoring progressive challengers in Democratic primary elections. Hogg had planned to spend $20 million to support progressive and young candidates in Democratic Party primaries as part of the “Leaders We Deserve” campaign — an activist group that aims to elevate younger leaders with a more combative tone against the Trump administration. With the stablecoin bills in the House and Senate poised to move ahead, the Democrats seem ill-suited to mount an effective opposition to the bills. Internal struggles and interests within Congress have disunited lawmakers, while activists want a new crop of congresspeople to represent them next term. In the Democratic Party’s internal battle between the anti-crypto progressive wing and the pro-crypto pragmatists, the latter is winning out, so far. Magazine: Father-son team lists Africa’s XRP Healthcare on Canadian stock exchange

Robinhood has submitted a 42-page proposal to the US Securities and Exchange Commission (SEC), calling for a national framework to regulate tokenized real-world assets (RWAs). The brokerage firm is seeking to modernize financial infrastructure by making tokenized assets legally equivalent to their traditional counterparts and enabling compliant onchain settlement, Forbes reported on May 20. In the proposal, Robinhood also reveals plans for creating the Real World Asset Exchange (RRE), a trading platform offering offchain trade matching and on-chain settlement for efficiency and transparency. Robinhood is advocating for uniform federal standards to replace the patchwork of state-level securities regulations that currently apply. The platform would also integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) tools through partners like Jumio and Chainalysis to meet global compliance expectations. Related: Central banks testing smart contract toolkit under BIS Project Pine Robinhood asks for token-asset equivalence A key feature of the proposal is the push for token-asset equivalence. Under Robinhood’s plan, a token representing a US Treasury bond, for instance, would be treated as the bond itself — not a derivative or synthetic product. That would allow institutions and broker-dealers to handle tokenized RWAs within the existing regulatory system, potentially streamlining custody, trading and settlement processes. Source: Cointelegraph Technically, RRE will be built on a dual-chain architecture utilizing Solana and Base, according to an overview of the proposal by Franklin Elevator. The system is designed to combine high-frequency offchain trade matching with onchain settlement. Franklin Elevator said Robinhood projects the platform will achieve sub-10 microsecond matching latency and throughput of up to 30,000 transactions per second. This could compress the US capital market’s standard settlement time from T+2 to T+0, cutting trading costs by an estimated 30% annually. “RWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework,” Robinhood CEO Vlad Tenev said. Related: SEC Chair: Blockchain ‘holds promise’ of new kinds of market activity Tokenization gains momentum Robinhood’s proposal comes amid a renewed wave of interest in RWA tokenization, with major players from both traditional finance and crypto making headlines last week. On April 30, BlackRock filed to create a blockchain-based share class for its $150 billion Treasury Trust Fund, allowing a digital ledger to mirror investor ownership. On the same day, Libre revealed plans to tokenize $500 million in Telegram debt via its new Telegram Bond Fund. On May 1, MultiBank Group inked a $3 billion tokenization deal with UAE real estate firm MAG and blockchain provider Mavryk. “The recent surge isn’t arbitrary. It’s happening because everything’s lining up,” Eric Piscini, CEO of Hashgraph, told Cointelegraph. “Rules are getting clearer in major markets. The tech is stronger, faster, and ready to scale. And big players are actually doing it,” he added. Magazine: Father-son team lists Africa’s XRP Healthcare on Canadian stock exchange

Cryptocurrency exchange Kraken announced the launch of regulated derivatives trading on its platform under the European Union's Markets in Financial Instruments Directive (MiFID II). According to a May 20 announcement, Kraken’s perpetual and fixed maturity crypto futures contracts will be available for trading by retail and institutional customers in the European Economic Area (EEA). The announcement follows the exchange acquiring a MiFID license in early February through the acquisition of a Cypriot investment firm, approved by the Cyprus Securities and Exchange Commission. Kraken’s head of exchange, Shannon Kurtas, said “Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions.” “Clients and partners increasingly seek comprehensive offerings within a regulated framework,” he added. Source: Kraken ProRelease the Kraken Kurtas said that following the deployment of the new derivatives products, “they [users] can seamlessly trade futures as part of a full suite of products” on the platform. Derivatives, he said, will improve “capital efficiency, access to liquidity, reliability and enable sophisticated strategies and position management.” Kraken’s derivatives will be offered through a Cyprus-based MiFID II-regulated entity Payward Europe Digital Solutions. The launch follows Kraken completing its acquisition of the futures trading platform NinjaTrader earlier this month, as its first quarter revenues jumped 19% year-on-year to $471.7 million. Crypto derivatives see lots of activity Recently, Coinbase CEO Brian Armstrong said his firm will continue to look for merger and acquisition opportunities after acquiring crypto derivatives platform Deribit. The comments came after the publicly listed US crypto exchange agreed to acquire Deribit earlier this month, one of the world’s biggest crypto derivatives trading platforms. Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Gemini’s head of Europe, Mark Jennings, said in a May 9 statement: “Once we commence business activities, we will be able to offer regulated derivatives throughout the EU and EEA [European Economic Area] under MiFID II.” Decentralized finance platform Synthetix also plans to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive. The transaction is subject to approval from both the Synthetix and Derive communities. Magazine: How crypto laws are changing across the world in 2025

India’s Supreme Court has questioned the government’s lack of regulatory clarity on cryptocurrencies despite imposing taxes on digital assets like Bitcoin. According to Indian legal news outlet LawChakra, the country’s Supreme Court expressed concern over the growing use of Bitcoin (BTC) and other cryptocurrencies while remaining largely unregulated. “This is a whole parallel economy running with such coins and is a danger to the economy of the country,” Justice Surya Kant reportedly said during a recent hearing related to an ongoing investigation into a Bitcoin transaction. Kant further highlighted that while the government has implemented crypto taxation, it has failed to regulate the space. “If you can tax it at 30%, also please regulate it as you have recognised it by taxing it,” the judge said. Related: Indian high court orders steps to block Proton Mail Government says review may follow The Additional Solicitor General of India — a senior legal officer representing the government of India — reportedly answered the request by saying that the government “will take instructions, my lord,” indicating that the government may consider reviewing the country’s current cryptocurrency regulation. The report follows a May 5 hearing by the Supreme Court of India during which Kant and lawyer Mahesh Jethmalani shared their views on cryptocurrency. Jethmalani explained that Bitcoin is already seeing widespread usage worldwide, noting that “in Europe, you can walk into a car showroom and buy a car using just one Bitcoin.” Related: Coinbase plans India comeback with FIU registration While this scenario is not as common as this statement may suggest, buying a car with Bitcoin is possible at specialized sellers. The lawyer also showed that he misunderstood the pseudonymous nature of Bitcoin’s creator, Satoshi Nakamoto, claiming that he was from Japan: “It was created by someone from Japan who used a fake name.”Concerns over misuse Kant also expressed concern over the misuse of cryptocurrencies during the hearing. He said that “there is some system of rules that applies to this.” Kant also said that “some Bitcoins are genuine, but some might not be.” However, it’s unclear whether he meant to suggest that counterfeit Bitcoin are in circulation (there are none) or that illegal activities taint some. The latter appears likely since the statement was followed by the judge saying that “it has also become a possible way to do illegal business.” India’s government has not yet introduced comprehensive legislation to govern cryptocurrencies, though it taxes gains and requires firms to report certain activities to financial regulators. The lack of regulation has drawn criticism from both the industry and policymakers amid the asset class’s continued growth. Magazine: India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express

Binance has filed a motion to dismiss a $1.76 billion lawsuit brought by the FTX estate, accusing the defunct crypto exchange of trying to deflect blame for its own failure. Filed on May 16 in the Delaware Bankruptcy Court, Binance’s legal team called the suit “legally deficient,” stating that FTX’s collapse was not triggered by market manipulation or hostile action but by internal misconduct. “Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history,” the filing said, pointing to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy. FTX’s estate alleges that Binance received billions in crypto during a 2021 buyback deal, funded improperly with customer assets. Binance rejects this claim, stating that “FTX remained a going concern for 16 months” after the share repurchase and that there was “no plausible claim” the exchange was insolvent at the time. Binance filing to dimiss FTX’s lawsuit against the exchange. Source: Law360news Related: Binance wants arbitration for all members of securities class suit Zhao’s tweet and FTT crash The lawsuit also accuses former Binance CEO Changpeng Zhao of triggering a collapse through a tweet on Nov. 6, 2022 announcing the liquidation of FTT tokens. In response, Binance argued that Zhao’s tweet was based on publicly known concerns. “Binance’s decision to liquidate its remaining FTT was, in fact, ‘due to recent revelations’—in particular, the November 2, 2022 CoinDesk article” that exposed Alameda Research’s balance sheet. The company further defended Zhao’s comment that Binance would aim to minimize market impact. “The Complaint contains no such facts” to prove Binance had no intention of following through. CZ announcing plans to liquidate FTT holdings in 2022. Source: CZ In challenging the court’s jurisdiction, Binance said none of the foreign entities named “are incorporated in or maintain their principal place of business in the United States” and thus fall outside the court’s reach. The filing also criticizes the plaintiff’s narrative as “a grab bag of state law claims” based on “pure conjecture—much of it sourced from a convicted fraudster’s hindsight speculation.” Binance has asked the court to dismiss all claims with prejudice. The FTX estate has not yet filed its response. Related: FTX EU creditors can now withdraw money from Backpack exchange FTX to disburse $5 billion in second round of creditor repayments FTX is set to begin its second round of repayments to creditors more than two years after filing for bankruptcy. In a May 15 notice, the FTX Recovery Trust announced that over $5 billion will be distributed starting May 30 through BitGo and Kraken, targeting parties in the second eligible group under the exchange’s reorganization plan. According to the plan, five creditor groups categorized as “convenience classes” are expected to receive between 54% and 120% of their claims. In total, FTX may repay up to $16 billion, depending on the final number of valid claims. Magazine: Father-son team lists Africa’s XRP Healthcare on Canadian stock exchange

A recent data breach at crypto exchange Coinbase has raised concerns about user safety after hackers gained access to sensitive information including home addresses. Coinbase, the world’s third-largest cryptocurrency exchange, confirmed that less than 1% of its transacting monthly users were affected in an attack that may cost the exchange up to $400 million in reimbursement expenses, Cointelegraph reported on May 15. However, the “human cost” of this data breach may be much higher for users, according to Michael Arrington, the founder of TechCrunch and Arrington Capital. “Very disappointed in Coinbase right now. Using the cheapest option for customer service has its price,” Arrington said in a May 20 X post, adding: “Something that has to be said though - this hack - which includes home addresses and account balances - will lead to people dying. It probably has already.”Source: Michael Arrington While no passwords, private keys or account funds were exposed, cybercriminals reportedly bribed overseas customer service contractors to access internal systems. This allowed them to steal user data that could be used in social engineering scams or even physical extortion attempts. Related: Hoskinson promises audit, is ‘deeply hurt’ by $600M Cardano treasury claims With Bitcoin (BTC) trading above $100,000, crypto wealth has become a growing target for criminals. Experts warn that leaked address data could expose high-net-worth individuals to real-world risks. On May 16, Cointelegraph reported on six violent robberies that targeted cryptocurrency investors, aiming to extort digital assets via kidnapping or torture. In a ruthless attack on May 4, the father of a French crypto entrepreneur was abducted in Paris, France. The kidnappers cut the victim’s finger and sent a video to his son, demanding 5 million euros in crypto. The victim was held for two days before French police were able to find and rescue him. According to CNN, five people were arrested in connection with the kidnapping. Related: US crypto funds top $7.5B inflows in 2025 as investor appetite grows Crypto exchanges need “layered” cybersecurity To prevent similar user data breaches, crypto exchanges need to adopt a “layered defense strategy,” according to Ronghui Gu, the co-founder of CertiK Web3 security firm. “This can include privileged access management, zero trust architecture, multi-factor authentication across internal systems, and continuous monitoring with behavioral analytics,” Gu told Cointelegraph, adding: “Preventive measures such as regular phishing simulations, tailored security training, and restricting third-party access to sensitive systems may help reduce these risks.” However, crypto platforms will need to “rethink their security posture” as attackers “increasingly target human vulnerabilities rather than technical ones,” added Gu, warning of the rising threat of social engineering schemes. Incidents and losses in 2024 by month. Source: CertiK Social engineering schemes, such as phishing scams, were the most significant security threat of 2024, which cost the industry over $1 billion across 296 incidents, according to CertiK. Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest, April 13 – 19

Genesis has launched a pair of lawsuits against its parent company, Digital Currency Group (DCG), and its CEO, Barry Silbert, accusing them of fraud, reckless mismanagement, and siphoning more than a billion dollars in value from the now-bankrupt crypto lender. On May 19, the Delaware Court of Chancery unsealed a complaint detailing how DCG allegedly used Genesis as a corporate ATM, draining funds through self-serving loans and concealed transfers while presenting a false image of financial health. Through their court-appointed Litigation Oversight Committee (LOC), Genesis creditors claim that over a million digital coins — worth approximately $2.1 billion — were funneled away, even as Genesis edged toward collapse. As per the complaint, Genesis creditors are still owed approximately $2.2 billion worth of crypto assets, including 19,086 Bitcoin (BTC), 69,197 Ether (ETH), and over 17.1 million other tokens, along with significant unpaid fees and interest as of Feb. 9, 2025. At the core of the lawsuit is the claim that Silbert and other insiders ignored basic risk controls and pushed Genesis into reckless lending practices that ultimately served to benefit DCG’s crown jewel, Grayscale Investments. DCG withdrew $1.2 billion from Genesis before bankruptcy The complaint describes Genesis as having operated without a board or independent oversight, with key decisions made to enrich DCG at the expense of depositors. “In particular, Silbert, Kraines, and Murphy orchestrated sham transactions at the end of the second and third quarters of 2022, when Genesis’s books closed, to deceive Genesis lenders into believing that DCG was providing liquidity and equity to Genesis,” the complaint states. Genesis also said it was forced to accept illiquid Grayscale Bitcoin Trust (GBTC) shares as collateral and was barred from selling them, creating major valuation risks. “GBTC was illiquid because it could not be sold for six months after its purchase due to a lockup period imposed by the SEC, and DCG prohibited Genesis from re-selling GBTC even after the lockup period ended,” the complaint states. The complaint names DCG, Barry Silbert, former Genesis CEO Michael Moro, former DCG CFO Michael Kraines, DCG President Mark Murphy and DCG’s investment banker Ducera Partners as defendants. Source: GenesisLOC Related: Bankrupt crypto firm Genesis completes restructuring A second complaint, filed in the US Bankruptcy Court for the Southern District of New York, alleges that DCG and its affiliates withdrew over $1.2 billion in US dollars and cryptocurrencies during the year leading up to Genesis’s bankruptcy. These withdrawals, the LOC argues, were timed around major market events such as the collapses of Terra-Luna, Three Arrows Capital, and FTX — moments when Genesis was already insolvent. Internal filings suggest insiders recovered 100% of their funds, while retail and institutional creditors were left exposed. Genesis seeks to recover billions In total, Genesis is seeking to recover more than $3.3 billion through the two separate lawsuits. In April 2025, a New York judge ruled that most of the New York Attorney General’s civil fraud lawsuit against DCG, Silbert, and former Genesis CEO Michael Moro can move forward. The suit accuses DCG and its bankrupt lending arm Genesis of misleading investors after the collapse of crypto hedge fund Three Arrows Capital, allegedly masking a $1 billion shortfall with a 10-year, low-interest promissory note. While Gemini and Genesis have settled, DCG and the executives have fought the charges, arguing they didn’t sell securities. Genesis filed for bankruptcy in early 2023 with $14 billion in outstanding loans. Magazine: Father-son team lists Africa’s XRP Healthcare on Canadian stock exchange