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Facebook-Powered Crypto Scam Ring Exposed in New York City, Targeting Russian Speakers

New York Attorney General Letitia James has announced a decisive crackdown on a crypto scam ring operating through social media.

Authorities froze $300,000 in assets and seized an additional $140,000, along with domain names and email accounts linked to the fraud.

This operation, coordinated with multiple local law enforcement agencies, underscores the growing prevalence of social media-driven scams within the crypto industry.

My office, @BrooklynDA, and @NYDFS stopped a group of cryptocurrency scammers that targeted Russian-speaking New Yorkers using deceptive ads on Facebook.

Hundreds of New Yorkers fell victim to these fraudulent ads and lost hundreds of thousands of dollars.

— NY AG James (@NewYorkStateAG) June 18, 2025

Despite the Southern District of New York’s recent pledge to temper enforcement actions against crypto cases, AG James—an outspoken critic of the sector—has taken a firm stance.

The scam was orchestrated by a Vietnam-based group that targeted Russian-speaking investors with deceptive ads promoting fake exchanges, defrauding hundreds and stealing millions.

She noted:

“Hundreds of New York investors thought they were putting their hard-earned money in safe, high-return investments, only to be defrauded out of millions of dollars. My office, together with [law enforcement], took action to stop these scammers and protect New Yorkers. I urge all New Yorkers to be vigilant of online cryptocurrency investment ads.”

How the Scam Unfolded

The full scope of the scam remains uncertain, but investigators first flagged suspicious Facebook activity in October 2024.

The fraud ring primarily targeted Russian-speaking residents in Brooklyn, though its reach extended across all five boroughs and throughout New York State.

While total losses have not been disclosed, Brooklyn alone saw over $1 million stolen.

DFS, in collaboration with the Brooklyn DA's Office and the Office of the Attorney general, has successfully concluded an investigation into a crypto scam network that stole over $1 million from victims in Brooklyn alone.

For more information, visit https://t.co/TRrptFqxQi. pic.twitter.com/v2jpHA45gU

— NYDFS (@NYDFS) June 18, 2025

The perpetrators, operating out of Vietnam, masked their presence using proxies to run deceptive ads and lured victims into private Telegram chats.

There, they showcased fake exchange accounts with fabricated growth metrics to entice larger investments.

Despite their efforts to erase their digital trail, authorities uncovered and dismantled key parts of the operation—seizing $140,000 in cryptocurrency, freezing an additional $300,000, and taking down associated domain names and email infrastructure.

Investigators estimate the scammers spent at least $1 million of stolen funds attempting to cover their tracks, a costly and ultimately ineffective effort that likely diminished their returns.

Although the team behind the scam remains at large in Vietnam, a court order has named three individuals, with references to additional unnamed conspirators.

AG James, a long-standing critic of the crypto industry, has made good on her promise to aggressively pursue crypto-related fraud.

While her stance often puts her at odds with more crypto-friendly city officials, this successful multi-agency operation highlights a rare moment of coordinated enforcement under her leadership—despite broader federal moves to scale back crypto prosecutions under Trump’s second term.

Russian Authorities Shut Down $700K-a-Year Illegal Crypto Mining Farm Disguised as Industrial Facility

Russian authorities have dismantled a large-scale illegal crypto mining operation in Nazarovo, Krasnoyarsk Krai, revealing a scheme reportedly generating over 4.6 million rubles ($58,000) per month.

According to a Telegram statement from the Krasnoyarsk Krai Prosecutor’s Office, the mining farm operated openly on a 30,000-square-meter plot of state-owned land, falsely registered as containing a non-residential building that did not actually exist.

The site, secured with barbed wire, was densely packed with mining rigs and extensive power infrastructure.

Prosecutors revealed that all equipment had been leased under the pretense of renting space in the nonexistent facility.

The company lacked legal rights to the land and failed to obtain necessary permits.

Russian Authorities Bust Massive $700K-a-Year Illegal Crypto Mining Farm Hidden as Industrial Plant$BTC $ETH #Bitcoinhttps://t.co/3qjCjGGmZi

— Blake Carter (@BlakeInCrypto) June 18, 2025

Compounding the violations, the operation was illegally connected directly to the town’s power grid, bypassing authorisation and risking outages and safety hazards.

Local energy officials warned that this unauthorised electricity use heightened the risk of emergency blackouts.

Additionally, authorities cited serious fire safety breaches and noncompliance with public safety regulations.

Despite multiple warnings, the company persisted until a court ordered an immediate suspension of operations.

The prosecutor’s office is actively monitoring enforcement.

This crackdown highlights ongoing challenges posed by illegal crypto mining in Russia, even as the country has moved to legalise and regulate the sector.

In 2023, Russia introduced a taxation framework expected to generate billions of rubles annually from legal mining activities.

However, due to power limitations, mining remains restricted in certain Siberian areas, including parts of Krasnoyarsk.

While legal across much of Russia, many miners avoid registration and high electricity costs by tapping into the grid illegally or exploiting residential electricity rates.

These practices strain infrastructure and pose risks to local communities.

Earlier this year, an energy company employee in Krasnoyarsk was arrested for accepting bribes to overlook similar unauthorised mining connections, where electricity theft reportedly amounted to over 9 million rubles ($119,000).

Russia Intensifies Efforts to Combat Rising Crypto Mining Thefts and Malware Attacks

In Russia’s Republic of Buryatia, authorities uncovered yet another illicit crypto mining operation—this time hidden inside a KamAZ truck.

During a routine inspection on 14 June, inspectors discovered 95 mining rigs powered by a 10-kilovolt line intended to supply electricity to a nearby village.

Illegal #Bitcoin mining has become mobile. In Russia, miners put a farm on the truck...

Specialists in Buryatia found an illegal mining farm in a truck: the intruders unauthorizedly connected to a 10-kilovolt power line.

Inside the truck they found 95 mining devices and a… pic.twitter.com/AsAcI0C7RP

— Vladimir S. | Officer's Notes (@officer_cia) June 14, 2025

Two individuals fled the scene in an SUV before law enforcement could intervene.

According to Buryatenergo, a regional division of Rosseti Siberia, this marks the sixth case of electricity theft linked to crypto mining in the region since January.

Officials warn that such unauthorised operations place immense strain on local power grids and pose a serious risk of blackouts.

To mitigate these risks, Buryatia bans crypto mining from 15 November to 15 March each year—its peak winter season—except for officially registered operators in designated districts.

The enforcement effort is part of a broader federal crackdown on mining during energy-intensive periods.

In late 2024, the Russian government extended mining restrictions to several regions, including Dagestan, Chechnya, and parts of eastern Ukraine under Russian control.

Since April, Irkutsk—one of Russia’s largest crypto mining hubs—has faced a complete ban on mining activity.

The restrictions have significantly impacted firms like BitRiver, which runs some of the country’s largest data centers in Irkutsk.

The region has long attracted miners due to its low electricity costs, but mounting power constraints have turned it into a flashpoint in Russia’s evolving crypto policy.

Adding to the country’s crypto-related challenges, cybersecurity firm Kaspersky has reported an alarming uptick in cyberattacks linked to crypto mining.

A sophisticated hacking group known as Librarian Ghouls—also referred to as Rare Werewolf or Rezet—has been hijacking business computers across Russia and the broader CIS region.

The campaign, active through May 2025, targets industrial companies and engineering schools, installing unauthorised Monero mining software while simultaneously stealing sensitive data, including crypto wallet credentials and private keys.

Digital Yuan Set for Global Push as China Challenges US Dollar’s Reserve Currency Status

Pan Gongsheng, China’s central bank chief, has reaffirmed the country’s commitment to expanding the digital yuan’s global presence, outlining an ambitious vision for the future of its central bank digital currency (CBDC), known as e-CNY.

Speaking at the Lujiazui Forum—a premier gathering of domestic and international financial leaders—Pan announced plans to establish an international operations hub for the digital yuan in Shanghai.

At the heart of China’s strategy is the push for a “multipolar” currency system—one in which multiple national currencies share the responsibilities of supporting global trade and finance.

This approach stands in sharp contrast to the current system, dominated by the US dollar and the euro.

𝗖𝗵𝗶𝗻𝗮’𝘀 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗕𝗮𝗻𝗸 𝗪𝗮𝗻𝘁𝘀 𝘁𝗵𝗲 𝗬𝘂𝗮𝗻 𝘁𝗼 𝗠𝗮𝘁𝘁𝗲𝗿 𝗠𝗼𝗿𝗲 𝗚𝗹𝗼𝗯𝗮𝗹𝗹𝘆, 𝗕𝘂𝘁 𝗕𝗶𝗴 𝗛𝘂𝗿𝗱𝗹𝗲𝘀 𝗥𝗲𝗺𝗮𝗶𝗻

China’s central bank governor, Pan Gongsheng, announced a new plan on June 18, 2025, to make the yuan more important in the… pic.twitter.com/5jd9Wki411

— The Rio Times (@TheRioTimes) June 18, 2025

Pan suggested that recent developments, including unpredictable tariff policies under President Donald Trump, have eroded investor confidence in the dollar's long-term reliability.

He also emphasized the growing importance of digital technologies in reshaping global finance, arguing that traditional cross-border payment systems are increasingly exposed to geopolitical risks.

He noted:

“Traditional cross-border payment infrastructures can be easily politicized and weaponized, and used as a tool for unilateral sanctions, damaging global economic and financial order."

China will establish an international operation center for the digital yuan to promote the internationalization of the digital currency and the development of financial market services, PBOC Governor Pan Gongsheng said at the #LujiazuiForum yesterday. pic.twitter.com/QqdaHVvdSX

— Yicai 第一财经 (@yicaichina) June 19, 2025

The Race Between Stablecoins and CBDCs to Dominate Global Payments

Stablecoins—typically pegged to the US dollar—have emerged as one of the most practical and widely adopted applications of cryptocurrency, particularly for cross-border payments.

Their decentralised design and ease of transfer stand in contrast to CBDCs, which are state-issued and centrally managed.

While stablecoins continue to gain traction globally, many governments are forging ahead with their own CBDC initiatives, each with distinct strategic and regulatory goals.

Hong Kong is currently piloting a stablecoin programme, positioning itself as a digital asset hub within Asia.

In Europe, momentum continues to build around the digital euro, backed by policymakers across the EU.

The United Arab Emirates is also advancing quickly, aiming to launch the digital dirham by the end of 2025, while Israel has unveiled a preliminary blueprint for its proposed digital shekel.

Yet enthusiasm around CBDCs is not uniform.

A 11 February report from the Official Monetary and Financial Institutions Forum (OMFIF) noted that 31% of central banks surveyed are delaying rollout plans due to regulatory uncertainty and evolving macroeconomic conditions.

Despite this slowdown, China remains a clear outlier.

Having initiated its CBDC research as early as 2014, Beijing is pushing forward with efforts to expand the digital yuan both at home and abroad.

These efforts are part of a broader strategy to reduce reliance on the US dollar—a currency it has long sought to challenge, particularly since trade tensions escalated during the Trump administration’s tariff campaign.

Meta Pool Suffers $27M Exploit, But Early Detection Limits Attacker to Just $132K

A hacker exploited a vulnerability in Meta Pool’s smart contract to mint nearly $27 million worth of mpETH tokens—but ultimately made off with only about $132,000 in Ether due to limited liquidity and swift intervention by the protocol’s team.

In a blog post on Tuesday, Meta Pool explained that the attacker used a flaw in the “fast unstake” functionality to generate 9,705 mpETH tokens without providing the corresponding collateral.

Meta Pool Security Incident Report: mpETH Contract on Ethereum & Next Steps

We’ve published a full update on the recent incident involving the mpETH contract on Ethereum, including actions taken and what comes next.

Read more:https://t.co/qSSjfpqXAZ

— Meta Pool (@meta_pool) June 17, 2025

Typically, unstaking requires a delay before assets become transferable, but fast unstaking bypasses that wait under certain conditions.

The exploit hinged on a critical bug in the ERC4626 mint() function, which allowed the unauthorised token creation.

Blockchain security firm PeckShield confirmed the flaw and noted that low liquidity in mpETH swap pools severely constrained the attacker’s ability to convert the minted tokens into significant gains—limiting the theft to just over 52.5 ETH.

Our analysis shows that the @meta_pool staking contract has a critical bug that allows for free mint of mpETH.

This specific tx freely mints 9700+ mpETH ($27m), but the low-liquidity of mpETH limits the profit to ~10 ETH. https://t.co/5quBgM6JyP pic.twitter.com/IE9p8UEMXP

— PeckShield Inc. (@peckshield) June 17, 2025

Meta Pool emphasized that its early detection systems identified the suspicious activity in time for the team to pause the affected smart contract, halting any further unauthorised actions.

Co-founder Claudio Cossio shared in an X (formerly known as Twitter) post that the exploit was rooted in an unintended minting mechanism linked to the fast unstake feature.

Update on ETH exploit on Meta Pool:

- All ETH staked on Meta Pool is SAFU.
- The amount that was taken by the attacker is approx $47,000 USD
- The exploit affected the fast unstake functionality, allowing the attacker to mint mpETH.
- The attacker minted around 10,600 mpETH.
-…

— Claudio Cossio (@ccossio) June 17, 2025

Vulnerability Exploited as Hacker Drains Crypto from Swap Pools

After minting the unauthorised mpETH tokens, the exploiter used them to drain approximately 52.5 ETH from various swap pools across the Ethereum mainnet and Optimism.

According to Meta Pool, one of the impacted Optimism pools had relatively low liquidity and trading volume, which helped limit the overall damage.

The Meta Pool team stated:

“It needs to be cleared that all the Ethereum staked is safe, delegated in the SSV Network operators which is validating blocks and accruing staking rewards on the Ethereum mainnet.”

The team has announced that a full post-mortem report and a recovery plan will be released within the next two days.

In the meantime, the compromised mpETH contract remains paused as the investigation unfolds.

Meta Pool has committed to reimbursing all affected users and ensuring that those impacted by the exploit are fully compensated.

International Law Enforcement Cracks Down on Monero-Powered Dark Web Market

Archetyp, the largest drug marketplace on the dark web, has been shut down following coordinated police raids that yielded extensive data on its employees, vendors, and buyers.

Renowned for exclusively using the privacy-focused cryptocurrency Monero (XMR) for all transactions, Archetyp operated for five years and facilitated over $250 million in trade volume, establishing itself as a dominant force in the illicit online drug trade.

🚨🚨Archetyp Darknet Market, the world's largest Darknet Market, has been seized by law enforcement. pic.twitter.com/ZhMXXQ4m4J

— Dark Web Informer - Cyber Threat Intelligence (@DarkWebInformer) June 16, 2025

While dark web markets continue to evolve in complexity and sophistication, this takedown highlights the increasing effectiveness of international law enforcement efforts to disrupt and dismantle these clandestine networks.

The Growing Effort to Track Down Dark Web Crypto Markets

While the 2025 crypto landscape still contends with criminal activity, dark web drug markets often feel like echoes from an earlier era.

Many of the once-dominant platforms have vanished, and surviving Bitcoin wallets are frequently labelled “ancient.”

Yet the recent takedown of Archetyp—the world’s largest active dark web drug marketplace—serves as a striking reminder that this illicit ecosystem remains alive, and increasingly in the crosshairs of international law enforcement.

Archetyp’s anonymous admin claimed in a statement:

“I’m sorry to say, but I was arrested on June 11 in by special forces of the Spanish Policía Nacional…on behalf of the Public Prosecutor General’s office in (Germany) and supported by police forces in the Netherlands, Spain, Sweden, Romania, the US, as well as Europol and Eurojust.”

Market has been updated on the platform to reflect the seizure. pic.twitter.com/rtcho57b5F

— Dark Web Informer - Cyber Threat Intelligence (@DarkWebInformer) June 16, 2025

The seizure of Archetyp was not just another headline—it marked a major victory in an ongoing global crackdown.

Operating for over five years, the platform facilitated more than $250 million in transactions and built a reputation as a high-security “hidden bazaar.”

It enforced stringent operational protocols: Tor-only access, PGP-encrypted messaging, two-factor authentication, escrow services, and an invite-only membership model.

Most notably, Archetyp relied solely on Monero, a privacy-focused cryptocurrency, distancing itself from traceable Bitcoin transactions.

Despite these safeguards, authorities successfully penetrated the marketplace’s infrastructure, gaining access to sensitive intelligence on developers, vendors, and users alike.

Law enforcement agencies seized $7.8 million in assets—though official statements did not specify the breakdown between crypto, narcotics, and hardware.

The arrest of Archetyp's core staff signals not only a rare law enforcement win in an increasingly encrypted world but also the fragility of even the most sophisticated dark web operations.

While history suggests such markets may reemerge under new names, few have achieved the scale, longevity, or ideological commitment of Archetyp.

For a corner of the crypto world long associated with radical libertarian ideals and digital anonymity, this takedown is more than a disruption—it’s a defining blow.

Thailand Grants Five-Year Tax Break on Crypto Gains to Spur Innovation

Thailand has formally approved a five-year tax exemption on profits from cryptocurrency sales, signalling a strategic push to solidify its position in the digital asset landscape.

Announced by Deputy Finance Minister Julapun Amornvivat, the policy will waive capital gains tax on crypto transactions made through licensed digital asset service providers from 1 January 2025, to 31 December 2029.

This move is part of a broader initiative to position Thailand as a regional leader in blockchain innovation and a global financial hub.

Authorities say the exemption aims not only to attract investment but also to promote regulated crypto trading under the oversight of the Thai Securities and Exchange Commission (SEC), and in alignment with Anti-Money Laundering (AML) standards set by the Financial Action Task Force (FATF).

[📢 เดินหน้าเต็มสูบ! รัฐบาลเร่งส่งเสริมไทยเป็นศูนย์กลางสินทรัพย์ดิจิทัลของโลก 🇹🇭🌐]

ผมมีข่าวดีมาบอกครับ! วันนี้คณะรัฐมนตรี (ครม.) ได้อนุมัติมาตรการภาษีเพื่อส่งเสริมการเป็น Digital Asset Hub ตามที่กระทรวงการคลังเสนอ…

— จุลพันธ์ อมรวิวัฒน์ (@jamornvivat) June 17, 2025

Previously, profits from crypto trading were taxed as personal income under a progressive rate structure—a policy that drew criticism from retail investors and institutions alike, many of whom explored more favourable jurisdictions.

With the new exemption in place, the Thai government hopes to reverse that trend by incentivising domestic activity and increasing international interest in its blockchain sector.

However, the benefits come with boundaries.

The tax break applies exclusively to transactions conducted on government-authorised platforms.

Unlicensed trading remains subject to existing tax rules and could incur penalties, underscoring the government’s dual commitment to innovation and regulatory control.

Thailand’s New Crypto Chapter

Thailand's recent introduction of a tax-free period marks a strategic move within its broader national vision to establish itself as a leading hub for digital asset innovation.

The government is actively fostering a vibrant financial technology ecosystem, encompassing cryptocurrencies, tokenised assets, and blockchain-based financial services, signalling a shift toward a more open and progressive digital economy.

NEW: 🇹🇭 Thailand Approves 5-Year Crypto Tax Break

Thai cabinet approves a personal income tax waiver on digital asset profits from Jan 1, 2025 to Dec 31, 2029.

The move aims to boost crypto adoption, draw foreign investment, and support Thailand’s financial hub ambitions. pic.twitter.com/KHlVkvjfg1

— Bitcoin News (@BitcoinNewsCom) June 17, 2025

Notably, the Securities and Exchange Commission endorsed the use of stablecoins like Tether’s USDt and Circle’s USDC on regulated exchanges in early 2024, while discussions around crypto-linked debit and credit cards for tourists further underscore efforts to digitise spending and boost financial inclusion.

Industry stakeholders view these policies as transformative, and social media reactions have been overwhelmingly positive, with crypto influencers praising Thailand’s progressive stance compared to more restrictive regimes elsewhere.

Leading exchanges such as Bitkub are poised to benefit significantly, especially following Bitcoin’s recent rally, with its substantial user base and high trading volumes positioning it well for renewed investor interest.

The government also emphasizes the potential of crypto assets in fundraising, projecting that these innovations could contribute at least 1 billion baht ($30.7 million) to the economy in the medium term, exemplifying a strategic move toward integrating crypto into the nation’s financial fabric—highlighted further by plans to enable crypto payments for tourists as part of ongoing regulatory reforms.

Thailand Offers Crypto Tax Breaks—But Keeps a Watchful Eye on the Fine Print

The recent policy has sparked a wave of optimism within Thailand’s digital asset sector, yet it also prompts cautious scrutiny from industry experts.

While the removal of taxes on highly volatile and speculative assets may invigorate market activity, concerns linger about potential revenue losses for a government already stretched thin, especially as digital assets increasingly serve as stores of value.

Critics warn that introducing speculative capital could destabilise Thailand’s financial markets if regulatory safeguards are insufficient, raising fears about investor protection—particularly for less experienced retail traders lured by the prospect of tax-free gains without a full understanding of associated risks.

In response, the Securities and Exchange Commission has taken decisive action, reaffirming its commitment to stringent licensing standards and vigilant market oversight.

Recent efforts include cracking down on unlicensed platforms like Bybit and OKX, effectively restricting their access to Thai users.

泰国将于6月28日封锁Bybit、OKK等5家加密货币交易所。泰国证券交易委员会（SEC）于5月29日发布公告，Bybit、1000X、CoinEx、OKX和https://t.co/uDTs5k4xJX等平台将于6月28日起在泰国境内无法访问。SEC表示，此举是为了"保护投资者权益，并打击涉嫌洗钱等违法活动的交易平台"。… pic.twitter.com/pcMY8SIgSq

— 刘红林律师 (@Honglin_lawyer) June 16, 2025

Additionally, the cabinet has approved amendments to the Digital Asset Business Act aimed at bolstering investor protection, enhancing cybercrime defenses, and increasing transparency within the cryptocurrency industry—reflecting a balanced approach to fostering innovation while safeguarding market integrity.

AI Bots Becoming Go-To for Daily News, New Poll Reveals

A growing number of people are turning to generative AI chatbots like ChatGPT to keep up with daily news, according to a new report published Tuesday.

The annual survey from the Reuters Institute for the Study of Journalism—affiliated with Oxford University—reveals for the first time that a notable segment of the public relies on chatbots for headlines and updates, as noted by director Mitali Mukherjee.

PARIS, France — People are increasingly turning to generative artificial intelligence chatbots like ChatGPT to follow day-to-day news, a respected media report published Tuesday found. https://t.co/YP5SnbqffU

— The Manila Times (@TheManilaTimes) June 17, 2025

While just 7% of respondents across 48 countries reported using AI to access news, usage climbs to 12% among those under 35 and 15% for under-25s.

OpenAI’s ChatGPT leads as the most popular chatbot, followed by Google’s Gemini and Meta’s Llama.

Users value the personalised and relevant news these tools provide.

Beyond direct news consumption, many employ AI for summarising (27%), translating (24%), recommending articles (21%), and nearly one in five engage chatbots to ask questions about current events—highlighting an evolving relationship between audiences and AI-powered news tools.

Distrust Persists as Many Believe AI Threatens News Transparency and Reliability

Scepticism persists, with many survey respondents expressing concern that AI could undermine the transparency, accuracy, and trustworthiness of the news.

Unlike traditional programming, today’s advanced AI systems—known as large language models (LLMs)—are trained on vast datasets drawn from the internet, including news articles and video reports.

These models generate text and images based on user queries but are prone to “hallucinations,” a phenomenon where AI fabricates plausible yet false information by extrapolating patterns from its training data.

In a bid to capitalise on shrinking revenues, some news organisations have partnered with AI developers to share content, while others have taken legal action over alleged unauthorised use—most notably, the New York Times suing OpenAI, creator of ChatGPT.

Beyond AI’s impact, the Reuters Institute report highlights a broader media shift: traditional outlets like TV, radio, newspapers, and news websites are losing ground to social networks and video platforms.

Se publicó el Digital News Report que hace el Instituto Reuters cada año. Datos de "temor" sobre las preferencias de las personas al momento de informarse y sus posibles derivaciones a ser permeables a fakes y a sesgos informativos potenciados. pic.twitter.com/2JylbJbUG3

— Gabriel Delgado (@GabrieLoloDelga) June 16, 2025

Nearly half of 18- to 24-year-olds now rely on social media—especially TikTok—as their primary news source, a trend especially pronounced in emerging markets such as India, Brazil, Indonesia, and Thailand.

This shift has strained traditional media’s finances and empowered politicians like US President Donald Trump and Argentina’s Javier Milei, who bypass conventional media gatekeepers to communicate directly with voters.

OpenAI Deepens Defense Ties with New $200M Pentagon AI Pilot

OpenAI has signed a $200 million, year-long pilot contract with the US Department of Defense to explore the use of artificial intelligence in both national security and government operations.

Announced by the Pentagon on Monday, the agreement marks a pivotal expansion of OpenAI’s footprint in the public sector and signals a deeper alignment between Silicon Valley and federal agencies.

The project is the first major undertaking under OpenAI’s newly launched “OpenAI for Government” division, which will serve as the central hub for all of the company’s government-focused initiatives.

OpenAI is officially a military contractor.

The generative AI powerhouse joins an army of Big Tech players making big bets on the Department of Defense.

And one imagines that OpenAI's newly announced $200 million contract with the Pentagon is just the beginning... pic.twitter.com/IeRuy9OeTB

— Jonathan Guyer (@mideastXmidwest) June 17, 2025

Among these is ChatGPT Gov—a secure, tailored version of the chatbot designed specifically for public sector use.

According to OpenAI, the pilot will investigate how AI can assist with military and civilian tasks ranging from improving healthcare access for service members to enhancing cybersecurity.

In a statement, OpenAI emphasized that this Department of Defense partnership represents a cornerstone of its broader public sector ambitions.

The new division will also oversee ongoing collaborations with agencies such as NASA, the National Institutes of Health, the Air Force Research Laboratory, and the US Treasury.

This latest contract builds on OpenAI’s growing involvement in national defense, following its 2024 partnership with Anduril Industries to develop AI-powered counter-drone systems.

OpenAI Steps Into Washington as Key AI Partner on Security and Ethics

OpenAI has reaffirmed its commitment to developing AI technologies that align with democratic principles, reinforcing that stance with key leadership appointments.

The company recently brought on a former senior Pentagon official to lead its national security policy strategy and named the former head of the National Security Agency (NSA) to its board of directors—moves that underscore its deepening ties to the defense and intelligence community.

The $200 million pilot contract with the Department of Defense arrives amidst growing debate in Washington over how generative AI should be integrated into government.

While the technology promises increased efficiency, enhanced security, and modernisation across agencies, it also raises critical concerns around transparency, accountability, and the protection of civil liberties.

This latest partnership further solidifies OpenAI’s role at the center of the federal government’s evolving AI agenda.

OpenAI has landed a $200 million contract with the @DeptofDefense for a year-long pilot aimed at exploring the role of artificial intelligence in military administration and security. This marks a major step in OpenAI’s deepening involvement with federal agencies and signals the… pic.twitter.com/mYAnFLJq2p

— AIM (@Analyticsindiam) June 17, 2025

As US agencies push to modernise operations and maintain a strategic edge over global competitors such as China and Russia, collaboration with leading private-sector firms like OpenAI is becoming increasingly vital.

For the company, the Pentagon pilot not only represents a major financial achievement but also a strategic foray into high-risk, high-impact applications of its technology.

The company said:

“We see this as an opportunity to demonstrate the safe, responsible deployment of AI in the service of national interest.”

The pilot programme is set to launch immediately, with findings from the one-year effort expected to shape how AI is deployed across both defense and civilian government agencies in the future.

Tech Leaders Join Army Reserve Amidst Growing Military-AI Alliance

Last week, four prominent technology executives were sworn into the US Army Reserve with the rank of lieutenant colonel, marking a novel step in the military’s push to deepen ties with Silicon Valley.

Officially part of a new unit known as Detachment 201, these leaders bring high-level expertise at a time when artificial intelligence is rapidly becoming a core focus of national security strategy.

Among those commissioned were Meta’s Chief Technology Officer Andrew Bosworth, OpenAI’s Chief Product Officer Kevin Weil, Palantir’s CTO Shyam Sankar, and Bob McGrew, a senior advisor at Thinking Machines Lab and former Chief Research Officer at OpenAI.

GEN George and I are thrilled to welcome four brilliant minds from the tech sector to the @USArmy! Today, we commissioned four exceptional individuals as Lieutenant Colonels in the Army's Detachment 201 (Executive Innovation Corps).
Their unique skills will be instrumental in… pic.twitter.com/zyZTaDNKOW

— Secretary of the Army (@SecArmy) June 14, 2025

According to the Army’s announcement, these executives will serve part-time as senior advisors within the Reserve, supporting projects designed to deliver fast, scalable technology solutions to some of the military’s most complex challenges.

Their enlistment reflects a growing recognition that solving modern defense problems will require close collaboration between the public and private sectors—and that the technical fluency of top industry leaders can be a vital asset in shaping future-ready military capabilities.

Trump Organisation Readies ‘Trump Mobile’ Launch This August

The Trump Organisation is making a bold entrance into the US wireless market with the launch of Trump Mobile, a new telecom brand set to debut in August.

The company plans to offer gold-coloured smartphones priced at $499, manufactured in the United States and powered by 5G service through all three major carriers—Verizon, AT&T, and T-Mobile.

The announcement comes just 24 days after President Donald Trump publicly threatened to impose a 25% tariff on Apple and Samsung for producing devices overseas—raising questions about whether this move is as much political as it is commercial.

According to trademark attorney Josh Gerben, DTTM Operations LLC, the Trump Organisation’s trademark arm, recently filed two new applications with the US Patent and Trademark Office for the names "TRUMP" and "T1."

The filings cover retail services for mobile phones, accessories, and chargers.

🚨 JUST IN: The Trump Organization has launched "Trump Mobile," a new U.S.-made phone service, introducing American-manufactured devices to the market, get more from your wireless service.
If you one to get one free follow , repost and drop ❤️ pic.twitter.com/IONcSAP84Q

— John F. Kennedy Jr (@Real_JFK_Jr_) June 17, 2025

Both applications were submitted under "intent-to-use" status, signalling that while the products aren’t yet on the market, the Trump brand has concrete plans to enter the space.

Trump Mobile Brings US-Manufactured Phones and 5G to the Market

Trump Mobile is set to debut with a flagship plan that includes 5G connectivity, telehealth services, and free international calling to more than 100 countries.

The initiative is being spearheaded by Donald Trump Jr., executive vice president of the Trump Organisation, marking the company’s first foray into the telecom sector.

He expressed:

“Trump Mobile is going to change the game. We’re building on the movement to put America first, and we will deliver the highest levels of quality and service.”

Historically rooted in real estate, hospitality, and branded merchandise, the Trump brand has never ventured into wireless services—until now.

Gerben said:

“While a trademark filing doesn’t guarantee a product launch, the specificity of the applications points to serious consideration.”

Trump Jr. framed the move as a natural extension of the MAGA ethos, suggesting it offers supporters “not just red hats, but potentially red phones in their pockets.”

🚨Good Monday: Eric Trump & Don Jr. Trump Organization just announced Trump Mobile, a new phone service featuring devices made in the USA. #MondayVibes #MondayMoodhttps://t.co/bLnABBNkTi pic.twitter.com/x1J5kdPXhh

— AJ Huber (@Huberton) June 16, 2025

The launch also appears to align closely with the former president’s political messaging.

Just weeks earlier, on 23 May, Donald Trump warned tech giants Apple and Samsung that they could face tariffs if they continued manufacturing phones abroad.

Trump’s 25% Tariff Warning to Smartphone Giants; including Apple and Samsung; if they continue assembling in India, is a direct blow to Modi’s so-called “Make in India” dream.

Kaveri Engine🔥

SUPPORT MAKE IN INDIA 🇮🇳🙏

Make it 1 million !!!!#FundKaveriEngine pic.twitter.com/9c3i0N1E1u

— Sumit (@SumitHansd) May 26, 2025

Now, in a pointed follow-up, his own company is preparing to release US-made smartphones.

The symbolism—and timing—are hard to ignore.

T-Mobile Poised to Fight Trump’s T1 Trademark Filing

The inclusion of “T1” in Trump Mobile’s recent trademark filing could lead to a legal showdown.

Two things:

T1 Mobile will be determined to be a trademark infringement of T Mobile & Trump will have to change the name. This should have been glaringly apparent from the get-go (who is advising them?).

The design looks too much like iPhone Pro…oops. Apple won’t be happy.

— Lee Roges (@Lee_Roges) June 16, 2025

Trademark attorney Josh Gerben notes that T-Mobile may challenge the application, arguing that the name is confusingly similar to its own brand.

Given the overlap in industry and services, T-Mobile could claim that consumers might mistakenly believe T1 is affiliated with its network.

That confusion—if proven—would form the basis for a formal opposition or even a lawsuit if the name is used commercially.

Gerben emphasized that T-Mobile is unlikely to overlook a competing wireless brand using a “T” moniker, especially one operating in the same market.

Allowing another “T”-branded telecom could dilute its trademark and weaken its legal standing in future disputes.

They literally copy and pasted the ⁦@TMobile⁩ logo. 🤣 pic.twitter.com/5AYakDLiuV

— OUT OF FUQS QWEEN 💬 (@SanteenaR) June 16, 2025

If Trump Mobile proceeds with the T1 name, the conflict could escalate to court.

Legal risks aside, Trump Mobile enters a highly competitive landscape.

The wireless market is dominated by three major carriers—Verizon, AT&T, and T-Mobile—as well as a growing number of MVNOs (mobile virtual network operators) offering budget plans by leasing bandwidth from those giants.

Trump Mobile aims to follow that MVNO model, using existing infrastructure while differentiating itself through patriotic branding and pro-America messaging.

It is an ambitious leap.

Since 2017, Trump-affiliated entities have filed 27 trademarks, primarily related to hotels, merchandise, and political branding.

But telecom is a different arena—one where reliability, customer service, and technical performance drive long-term success.

Selling slogans is one thing.

Competing on call quality and download speeds is another.

BNB Chain Sees Persistent Sandwich Attacks as DEX Users Face Ongoing Exploits

BNB Smart Chain (BSC) is once again grappling with a resurgence in sandwich attacks, a form of on-chain market manipulation that has now affected more than 120,000 decentralised exchange (DEX) traders in just the past week.

This spike coincides with increased trading activity on the network and follows a trend that began in mid-May, according to Dragonfly data analyst Hildobby on X (formerly known as Twitter).

The attack volume has intensified, with more than 100,000 users targeted for two consecutive weeks and over $1 billion in related trading activity.

sandwiches are back on BNB, what happened to the good will alliance? pic.twitter.com/6HyRMOO7Kc

— hildobby (@hildobby_) June 15, 2025

Sandwich attacks exploit the transparent structure of blockchain transactions.

In these attacks, a malicious actor identifies a pending trade in the public memory pool—or mempool—and places their own transactions before and after it.

This artificially drives up the price of the target token, allowing the attacker to buy low, inflate the price, and sell high within seconds, extracting profit at the victim’s expense.

These exploits are commonly automated using Maximum Extractable Value (MEV) bots, which are programmed to scan and reorder transactions for optimal gain.

The architecture of DEX makes them particularly vulnerable to such tactics.

Because all pending transactions are publicly visible before inclusion in a block, attackers can pay higher fees to incentivise validators or miners to prioritise and reorder trades in a way that benefits them.

While this remains a pressing issue on BSC, it is far from unique—networks like Ethereum and Solana also contend with similar challenges.

BSC has seen this pattern before.

On 1 December 2024, more than a third of all blocks on the chain included transactions impacted by sandwich attacks.

The scale of the problem is underscored by high-profile MEV operators like the address known as Jaredfromsubway.eth, which reportedly generated over $40 million in revenue—and $6.3 million in profit—in less than three months through sandwich attacks alone.

BNB Chain Has Dealt With Sandwich Attacks Before

Earlier this year, BNB Chain took proactive steps to combat the growing threat of sandwich attacks by introducing MEV protection across several key wallets.

The initiative offered users three distinct options: automatic protection, manual setup, or customisable safeguards tailored for advanced users.

Sandwich attacks in crypto exploit MEV by manipulating trades before and after a victim's transaction, profiting from price movements; BNB Chain's proactive measures protect users from these attacks and ensure a fair trading environment.

— Ferro (@ferrowerro) June 15, 2025

Automatic protection was integrated into widely used wallets such as Trust Wallet, Binance Wallet, OKX Wallet, TokenPocket, and SafePal, while users of other wallets had the flexibility to implement protections manually.

Initially, this approach showed promising results.

Between late March and early May 2025, sandwich attacks on BNB Chain declined noticeably, suggesting the mitigation strategies were effective.

Yet, as DEX activity surged again in late May and early June, so did the presence of sandwich attacks—raising questions about the durability of the implemented defenses under high-volume conditions.

Interestingly, the resurgence in attacks has had only a limited impact on the broader network.

According to Dune data, BNB Chain processed approximately 58.45 million transactions in the final week of May and a staggering 69 million in the first week of June.

Despite this intense activity, sandwich attacks accounted for a relatively small share: just over 776,000 transactions were affected in the first week of June, and around 207,000 the week prior.

These figures are dwarfed by the total transaction volume, indicating that while the attacks have returned, their reach remains comparatively narrow.

Perhaps even more notable is the sharp decline in the number of active sandwich bots.

Since early April, BNB Chain has seen fewer than 300 such bots operating weekly—down dramatically from a peak of nearly 9,000 in mid-February.

This steep reduction suggests that while MEV protection may not have eliminated the threat entirely, it has significantly raised the barrier to exploitation.

As network activity continues to climb, BNB Chain's evolving security architecture will likely be tested again.

BSC Sees Uptick in Transactions Amidst Ecosystem Growth

The recent surge in transaction volume on BSC can be largely attributed to the launch of the Binance Alpha programme on 20 May.

Designed to spotlight early-stage Web3 projects, the initiative grants users early access to tokens and airdrops—an enticing incentive that has rapidly attracted a wave of new participants to the network.

As a result, DEX activity on BSC has soared to record highs.

Data from DeFiLlama reveals that over the past 30 days, BSC has dominated all other networks in DEX trading volume, recording an impressive $147.18 billion.

This figure significantly outpaces Solana, which ranks second with $79.31 billion. On a daily basis, BSC continues to lead with a trading volume of $3.63 billion, solidifying its position as the most active DEX ecosystem in the current market cycle.

The impact of the Binance Alpha programme extends beyond raw volume.

Notably, BSC has overtaken Solana in meme coin trading—an area often seen as a proxy for retail user engagement and speculative activity.

Memecoin trading on BNB has flipped Solana

(driven by the Binance Alpha program) pic.twitter.com/yOUIj6ymP1

— Yano 🟪 (@JasonYanowitz) June 14, 2025

This shift underscores the broad appeal and reach of the initiative across both seasoned traders and newer crypto participants.

However, the meteoric rise has not been without scepticism.

Some analysts suggest that a significant portion of this trading activity may be artificially inflated through wash trading, as users attempt to maximise their rewards by farming points within the Alpha programme.

If true, this raises important questions about the sustainability and authenticity of BSC’s recent growth—highlighting a tension between incentivised engagement and genuine network utility.

Coinbase Supports Trump Parade—Has Crypto Lost Its Rebel Spirit?

Coinbase’s sponsorship of a military parade in Washington, D.C., on 14 June has reignited questions about whether the crypto industry is drifting from its anti-establishment origins.

The event, held in honor of the US Army’s 250th anniversary, coincided with President Donald Trump’s 79th birthday and unfolded against the backdrop of nationwide “No Kings” protests—demonstrations condemning Trump’s immigration policies and perceived authoritarianism.

Despite its ceremonial purpose, the parade drew sparse, subdued crowds and faced criticism for its political overtones.

Among the 22 corporate sponsors were major tech players like Amazon and Palantir—the latter known for building AI-driven surveillance systems used across federal agencies.

Coinbase, the largest US-based crypto exchange and the third-largest globally, stood out not only for its financial support but also for a previous $1 million donation to Trump’s inauguration.

The company even received public acknowledgment during the event’s closing remarks.

For many in the crypto community, the optics of Coinbase aligning itself with a politically charged, government-sanctioned spectacle have raised a deeper concern: Is crypto abandoning its founding vision of decentralisation and resistance to centralised power in favour of institutional validation?

Is the Crypto Movement Selling Out to the Mainstream?

When Satoshi Nakamoto mined the first Bitcoin in January 2009, he embedded a message in the Genesis block referencing a Times headline about the UK’s plan to bail out banks following the 2008 financial crisis.

It was not just a timestamp—it was a statement.

Bitcoin’s creation was a response to a system that had, time and again, shifted the burden of corporate failure onto ordinary citizens.

Nakamoto’s innovation offered a radical alternative: a decentralised, peer-to-peer financial network free from government and central bank control.

This foundational ethos attracted early adopters who were largely technologists, libertarians, and privacy advocates—individuals sceptical of surveillance and state power.

Bros I don’t think crypto is a counter culture movement anymore https://t.co/QhD5kijbZh

— fejau (@fejau_inc) June 15, 2025

Crypto was seen not just as a new form of money, but as a countercultural movement aimed at disrupting the entrenched financial order.

That is why Coinbase’s recent sponsorship of a military parade celebrating the US Army—a core institution of centralied authority—has stirred controversy. For many, it marks a stark departure from crypto’s roots.

Was that seriously a coinbase sponsored military parade 🤣

— JB (@jamie247) June 15, 2025

Crypto Community’s Reaction Has Been No Less Scathing

Many users echo the sentiment that the industry had abandoned its original ethos—or perhaps never embodied it at all.

One user on X (formerly known as Twitter) remarked that crypto ceased to be a countercultural force “three years ago.”

It hasn't been for at least 3 years. Majority of crypto has been retards gambling since then, it feels like AI slop churners and draft kings had a baby. There will always be parts of crypto that are counter culture though and others that aren't

— Kiryu (@Kiryu_0x) June 15, 2025

Others questioned the necessity of corporate sponsorship for the parade, which was projected to cost around $45 million in public funds.

In a pointed jab, one commenter asked whether Coinbase would also be sponsoring repairs for D.C.’s “tank-mangled streets.”

Will Coinbase sponsor repairs to DC's tank mangled streets as well ?

— (Lizzie)🏳️🌈🇺🇦🏳️🌈 (@pip-kin.bsky.social) June 15, 2025 at 3:05 PM

Still, not everyone was surprised by Coinbase’s involvement.

It makes sense, like 30 percent of the crypto community went from libertarian types to some boot licking version of MAGA. Was sad to see.

— generic (@Scott_OBthatsme) June 15, 2025

For some, it was a predictable reflection of crypto’s steady march toward mainstream assimilation.

Others pushed back against the prior framing altogether.

One user argued that in any bottom-up, permissionless system, divergence is inevitable—as participants shape the ecosystem in unpredictable ways.

Among holders and investors, reactions were more tempered.

A bottoms up, permisionless system will usually evolve in ways that participants may not approve of

Better this than specific groups dictating what should and shouldn’t be

We can’t eat our cake and have it too!

— Publius (@publius_val) June 15, 2025

Many interpreted Coinbase’s sponsorship as a strategic decision to align with institutional power and optimise for long-term gains—reserving judgment rather than condemning the move outright.

Small Investors Hit as Brazil Imposes 17.5% Flat Tax on Crypto Profits

Brazil has eliminated the tax exemption for small-scale crypto profits, instituting a flat 17.5% tax on all capital gains from digital assets.

Announced under Provisional Measure 1303, this move is part of the government’s broader strategy to boost revenue through financial market taxation.

Previously, Brazilian residents were exempt from income tax on crypto sales up to 35,000 Brazilian reals (about $6,300) per month, with progressive tax rates starting at 15% and climbing to 22.5% on transactions exceeding 30 million reals.

The new flat tax applies uniformly to all investors, regardless of transaction size, as reported by Portal do Bitcoin.

BRAZIL ENDS CRYPTO TAX EXEMPTION, INTRODUCES 17.5% FLAT TAX ON ALL PROFITS

Starting June 14, Brazil will apply a 17.5% flat tax on all crypto gains, eliminating previous exemptions.

The new law affects all users, including those using self-custody wallets, regardless of profit… pic.twitter.com/jJ3VKXzUSI

— Crypto Town Hall (@Crypto_TownHall) June 15, 2025

While this change increases the tax burden for smaller investors, it may reduce it for high-net-worth individuals, who previously faced rates between 17.5% and 22.5% on trades above 5 million reals.

Under the new system, many large-scale traders could benefit from a lower effective tax rate.

Self-Custody and Offshore Crypto on Brazil’s Hit List

Brazil’s new provisional measure significantly broadens the scope of its crypto tax regime.

For the first time, digital assets held in self-custody wallets and foreign-based crypto holdings will be subject to taxation—marking a clear signal that the government is tightening oversight across decentralised and offshore channels.

According to official sources, taxes will now be calculated quarterly, with investors permitted to offset losses incurred over the previous five quarters.

However, starting in 2026, that deduction window will be shortened, potentially raising the long-term tax burden for frequent traders.

This sweeping reform is not limited to crypto.

It also affects traditional financial instruments that were previously tax-exempt.

Profits from fixed-income securities such as Agribusiness and Real Estate Credit Letters (LCAs and LCIs), as well as Real Estate and Agribusiness Receivables Certificates (CRIs and CRAs), will now face a 5% income tax.

The betting sector was not spared either—the tax rate on betting revenues has jumped from 12% to 18%.

These adjustments follow the government’s failed attempt to increase the Financial Transaction Tax (IOF), a proposal that was ultimately scrapped after facing fierce resistance from financial markets and lawmakers.

In its place, the finance ministry appears to be taking a more targeted, yet comprehensive, approach to raising revenue—aiming not just at crypto, but at a broader set of previously untapped financial flows.

Brazil Contemplates Permitting Bitcoin Salary Payments

In March, Brazilian legislators introduced a proposal that could mark a significant shift in how wages are paid—by allowing partial compensation in cryptocurrencies such as Bitcoin.

🇧🇷 BRAZIL PROPOSES A BILL TO ALLOW EMPLOYERS TO PAY SALARIES IN #BITCOIN

THIS IS HUGE!!! pic.twitter.com/ejGNsNvdvY

— Vivek⚡️ (@Vivek4real_) March 17, 2025

The draft bill sets clear boundaries: no more than 50% of a salaried employee’s income may be paid in digital assets.

Full payment in crypto would be restricted to specific cases, such as foreign workers or independent contractors, and only under conditions approved by Brazil’s central bank.

Importantly, the legislation prohibits paying standard employees entirely in crypto, underscoring a cautious approach to protecting workers from volatility while embracing innovation.

Freelancers and independent contractors, however, would be permitted to receive their full compensation in digital currency if both parties agree to it contractually.

To ensure transparency and regulatory compliance, all crypto disbursements must be calculated using exchange rates provided by Central Bank-authorised entities.

If passed, the measure could position Brazil at the forefront of integrating digital assets into everyday financial systems—while raising important questions about stability, risk, and regulatory oversight.

Crypto Ransom Plot Fizzles as TikTok Influencer’s Wallet Fails to Impress His Captors

In a troubling and unusual case that has sparked widespread discussion within the crypto community, a 26-year-old TikTok influencer and cryptocurrency trader was reportedly kidnapped in Juvisy-sur-Orge, France, over the weekend.

The incident occurred overnight from Friday to Saturday as the individual was returning home.

According to reports, four assailants abducted the trader—who commands an audience of 40,000 followers on TikTok—forcing him into a stolen Renault Clio before physically assaulting him and demanding €50,000 in cryptocurrency as ransom.

The story took an unexpected turn when the kidnappers allegedly discovered that their victim had been fully invested in XRP since 2018—an asset choice that appears to have left him with limited liquidity.

In a surprising twist, they not only abandoned their ransom demand but reportedly sent him 1,000 USDT before releasing him.

NEW: 26-YEAR-OLD TIKTOK INFLUENCER AND TRADER ALLEGEDLY KIDNAPPED IN FRANCE, BEATEN, AND HELD FOR €50K IN CRYPTO - RELEASED AFTER KIDNAPPERS DISCOVERED THE VICTIM HAS BEEN ALL IN ON XRP SINCE 2018 AND SENT HIM $1000 USDT

— Gordon (@AltcoinGordon) June 15, 2025

The victim has since been granted six days of temporary work incapacity, and the case has been transferred to France’s Organised and Specialised Crime Division.

While this incident may not be directly tied to market dynamics, it highlights the growing security risks faced by high-profile figures in the crypto space.

It also raises deeper questions about how certain digital assets—such as XRP—are perceived in terms of value, liquidity, and credibility.

As the cryptocurrency market remains highly reactive to external events and social sentiment, episodes like this could influence the behaviour of retail investors, particularly those active on platforms like TikTok.

In a world where digital visibility can attract both followers and threats, traders must remain acutely aware of the intersection between personal security, online presence, and market exposure.

Was XRP Affected by This Incident?

From a market perspective, this incident—while isolated—may carry nuanced implications for XRP and the broader crypto landscape.

A 26-year-old TikTok “trader” was abducted in France.

Kidnappers wanted €50k in crypto, checked his wallet, found pennies, and let him go.

Reminder: most trading KOLs are LARPs.

Just Use Aavehttps://t.co/2HgmtoxmIZ

— Marc “Billy” Zeller 👻 🦇🔊 (@lemiscate) June 15, 2025

Shortly after news of the kidnapping broke, XRP experienced a modest 1.2% dip, signalling a brief surge in negative sentiment among traders.

At the same time, trading volume spiked by 8%, surpassing $1.2 billion across key pairs like XRP/USDT and XRP/BTC, a movement that could suggest either heightened retail interest or a wave of reactive selling.

Currently, XRP is priced at $2.18—up 1.73% over the past 24 hours, yet down 2.63% over the past week, per CoinMarketCap.

While these fluctuations are not extraordinary by crypto standards, the context of the incident adds a layer of complexity to market interpretation.

Though there is no direct link to equities or broader stock market dynamics, the growing association between crypto-related crime and perceived asset risk often catches the attention of institutional investors.

Such events, particularly those that gain viral traction, can influence broader risk sentiment and asset allocation decisions—pushing capital from speculative crypto positions toward perceived safe havens like tech stocks or diversified ETFs.

In short, this episode underscores how non-market events can ripple through crypto pricing and behaviour, especially for assets like XRP that are heavily influenced by retail sentiment.

SEC Rolls Back Crypto Oversight from Biden-Gensler Era

The US Securities and Exchange Commission (SEC) has formally rescinded a series of proposed rules introduced during the Biden administration, including two that would have significantly impacted crypto custody practices and decentralised finance (DeFi) platforms.

In a notice issued Thursday, the agency announced it is “withdrawing certain notices of proposed rulemaking” dating back to March 2022 and stated it does not intend to finalise these proposals.

Should its stance change, the SEC said it would introduce new rulemakings in the future.

This move aligns with President Donald Trump’s broader deregulatory push, which includes efforts to scale back oversight in both crypto and traditional financial markets.

Coinbase chief legal officer Paul Grewal posted on X (formerly known as Twitter):

“Down goes 3b16, qualified custodian, and all the other unfinished Gensler rule proposals.”

Down goes 3b16, qualified custodian, and all the other unfinished Gensler rule proposals. @secgov just issued final notices rescinding them all.

— paulgrewal.eth (@iampaulgrewal) June 12, 2025

Notably, among the 14 proposals withdrawn was a controversial amendment to Rule 3b-16, which sought to broaden the definition of “exchange” under the Securities Exchange Act.

The amendment would have classified many DeFi protocols as securities exchanges by including systems that facilitate communication and trading interest between buyers and sellers.

Originally proposed under then-acting Chair Mark Uyeda, the rule had faced significant industry pushback for its sweeping implications.

Its withdrawal now signals a potential shift in how federal regulators approach oversight of digital assets.

The SEC is officially withdrawing dozens of proposed rules issued between March 2022 and November 2023 including key policies from the Gensler era.

Notably dropped:
• The expanded Custody Rule
• Rule 3b-16 redefining DeFi exchanges
• Enhanced ESG disclosure requirements

The… pic.twitter.com/5960j8Zveq

— Bitcoin.com News (@BTCTN) June 13, 2025

Rules That Have Been Rescinded

The SEC has also withdrawn a proposed rule from March 2023 that would have significantly tightened custody requirements for crypto assets.

Known as the Safeguarding Advisory Client Assets rule, the proposal aimed to expand the Custody Rule under the Investment Advisers Act of 1940 to cover a broader range of client assets—including digital ones.

Though framed to apply universally, the rule carried major implications for the crypto industry by requiring investment advisers to store assets with “qualified custodians,” typically regulated banks or broker-dealers.

This posed a serious challenge for most crypto exchanges and wallet providers, which generally do not meet the SEC’s definition of a qualified custodian.

Had the rule gone into effect, many advisers might have been forced to switch custodians or exit the crypto space entirely.

In March, Commissioner Mark Uyeda had already urged staff to reconsider the proposal’s future.

In addition to scrapping the custody rule, the SEC also withdrew several other proposals with relevance to digital assets.

These included rules on cybersecurity risk management and reporting for investment advisers and funds—both of which could have imposed new compliance burdens on crypto fund managers and custodians.

Also withdrawn was a rule requiring position reporting for large security-based swaps, which might have affected firms with significant crypto derivatives exposure.

Lastly, the agency reversed its push for stricter ESG reporting requirements for public companies, marking another step back from the regulatory agenda pursued under the Biden administration.

GENIUS Stablecoin Bill Set for Senate Floor Vote 17 June

The US Senate is set to hold a final vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on Tuesday, 17 June, a key step toward shaping federal regulation of stablecoins.

According to a Thursday notice on the Senate Democrats’ official website, the exact timing will be determined by the Majority Leader in coordination with the Democratic Leader.

UPDATE 🚨

The U.S. Senate will hold a final vote on the GENIUS Act stablecoin regulation bill, on June 17.📆🇺🇸

— Moby Media (@mobymedia) June 13, 2025

The GENIUS Act aims to create a unified regulatory framework for stablecoins, marking a potentially transformative moment for the digital asset industry.

The announcement comes on the heels of a procedural vote held on 12 June, signalling momentum for the bill’s advancement.

If passed, the legislation could provide long-awaited regulatory clarity as stablecoin trading and on-chain activity continue to gain traction.

John Thune Sees Stablecoin Bill as Key to Everyday Crypto Use

Speaking on the Senate floor Wednesday, Majority Leader John Thune urged his colleagues to support the GENIUS Act—a sweeping piece of legislation aimed at positioning the US as a global leader in digital assets.

The bill, which echoes several of former President Donald Trump’s pro-crypto policy positions, passed a key procedural hurdle in a 68-30 vote, more than a month after its introduction.

A bipartisan group of senators, including several Democrats, voted to invoke cloture, paving the way for floor debate and a final Senate vote before the bill moves to the House.

⚠️BREAKING⚠️#GENIUS Act just passed the Senate Cloture vote (68-30) 🏛️💥

THE PATH IS NOW CLEAR FOR FINAL APPROVAL! 👀🔥$TEL | $eUSD | Stablecoins | TELCOIN | #bank | $XRP | DeFi | Fintech | #DigitalCash pic.twitter.com/WqBKkHehiy

— ℙ𝕣𝕠𝕗. ⓣo𝖒𝖒y 𝔾𝕖𝕜𝕜⭕️ (@Thomash83191) June 12, 2025

Thune emphasized that the GENIUS Act would help integrate cryptocurrency into daily life and laid out a broader vision for future legislative action.

He also referenced the CLARITY Act, a separate digital asset market structure bill currently gaining traction in the House, where two committees voted Tuesday to advance it toward a full vote.

Analysts suggest the GENIUS and CLARITY Acts together could give the US a regulatory edge on the global stage, offering a comprehensive legal framework that may shape how other nations govern cryptocurrencies.

Elizabeth Warren Presses Senate to Stand Up to Trump’s Corruption

While the passage of the GENIUS Act was met with celebration, Senator Elizabeth Warren of Massachusetts delivered a pointed critique on the Senate floor, warning of “serious issues” embedded in the legislation.

She expressed frustration that the chamber failed to consider key bipartisan amendments, suggesting that the bill moved forward without adequate scrutiny.

Warren echoed concerns raised by fellow Democrats over former President Trump’s ties to World Liberty Financial—a crypto platform reportedly backed by his family.

She pointed to troubling allegations that holders of Trump’s meme coin could receive exclusive perks such as private dinners or privileged access to the former president.

More gravely, Warren argued that Trump’s crypto venture opens the door to unprecedented influence-peddling, potentially allowing him to exchange presidential favours—such as tariff relief, pardons, or government appointments—in return for massive sums from foreign governments, wealthy elites, and corporate interests.

According to Warren, by enacting the GENIUS Act without stronger safeguards, the Senate is not only ignoring these risks but enabling the spread of political corruption.

She further criticised the bill’s lack of robust consumer protections, financial oversight, and security standards.

Though many Democrats supported advancing the bill by voting to invoke cloture, some are still urging Republicans to reconsider amending the legislation.

Whether the GENIUS Act ultimately garners enough support in a narrowly Republican-controlled Senate remains uncertain.

Singapore Police Uncover Widespread Crypto Laundering Network Involving 49 Suspects

Active investigation by Singapore police for 49 individuals suspected of involvement in a sophisticated money laundering network linked to cryptocurrency accounts, are ongoing, according to a 12 June announcement.

The suspects—35 men and 14 women, aged between 18 and 58—were apprehended during a coordinated islandwide operation carried out from 13 to 30 May.

The enforcement effort, spearheaded by the Anti-Scam Command and supported by digital payments firm StraitsX, resulted in the seizure of more than $200,000 in assets.

Singapore Police Probe 49 Suspects in Crypto-Linked Money Laundering Case https://t.co/z2pSZR5nLs

— Krypton AI Pad (@KryptonAIPad) June 12, 2025

Preliminary investigations reveal that the suspects were allegedly recruited via encrypted messaging platforms such as Telegram and WhatsApp.

They were reportedly promised cash incentives ranging from $400 to $3,000 in exchange for granting access to their cryptocurrency wallets or Singpass accounts.

In several instances, scammers provided step-by-step instructions, asking for personal details, login credentials, and screenshots to complete the handover.

These compromised accounts were then used to launder illicit proceeds from online scams.

Authorities underscored that relinquishing control of financial accounts—whether bank or crypto—could result in severe legal consequences.

Collaboration with StraitsX was instrumental in uncovering unusual transaction patterns, which enabled investigators to swiftly identify and trace those involved.

Reaffirming a zero-tolerance stance on financial crime, the police warned that anyone found complicit in money laundering activities would be prosecuted to the full extent of the law.

They also urged the public to remain vigilant and to reject any offers promising quick profits in exchange for account access—stressing that such proposals are frequently fronts for criminal operations.

Individuals convicted of facilitating the retention of criminal proceeds may face up to three years’ imprisonment, a fine of up to $50,000, or both.

🚫 Singapore cracks down on unlicensed crypto firms.
New MAS directive tells firms serving overseas clients: get licensed or get out.
What looks like a policy shift is part of a global crackdown on money laundering & terrorism financing. 🌍🔍#CryptoRegulation #Singapore #MAS pic.twitter.com/3MPZkuj9Jy

— The Coin Republic (@TCR_news_) June 7, 2025

Bitget and Bybit Trim Their Singapore Footprint

Bitget and Bybit are preparing to scale back their operations in Singapore following a directive from the Monetary Authority of Singapore (MAS) aimed at tightening oversight of unlicensed crypto activity.

The MAS has issued a final notice requiring digital asset service providers operating without a full license to cease serving overseas customers by 30 June.

The order applies broadly—regardless of a firm's licensing status—and targets entities with offshore clients or key personnel based in Singapore.

Singapore -- MAS -- Regulations

"MAS now mandates that any Singapore-based or incorporated entity offering digital token services to overseas clients must secure a DTSP license. The move closes a long-standing regulatory loophole and brings Singapore closer in line with… https://t.co/4Cg5OnwBrN pic.twitter.com/mEAOZ9LbrB

— Chad Steingraber (@ChadSteingraber) June 5, 2025

Bitget has already begun relocating staff to more crypto-friendly jurisdictions such as Dubai and Hong Kong, where regulatory frameworks are clearer and more supportive.

Bybit is reportedly exploring similar options, though it has yet to confirm its relocation plans.

As regulatory scrutiny intensifies in traditional financial hubs, Dubai and Hong Kong have positioned themselves as attractive alternatives, with Dubai’s Virtual Asset Regulatory Authority already licensing over 20 crypto firms, including Binance and Bybit, and offering incentives like tax breaks and legal certainty.

Retail Cyber Breaches Lead to Blocked Orders and Product Shortages

Recent cyberattacks and data breaches targeting major retailers are beginning to directly impact shoppers worldwide.

United Natural Foods, a key supplier to Whole Foods and other grocers, recently disclosed a system breach that disrupted order fulfillment, leaving numerous stores without essential products.

Meanwhile, in the UK, Marks & Spencer’s website was inaccessible for over six weeks, and customers faced limited in-store selections after hackers compromised the retailer’s systems.

Similarly, a cyberattack on the Co-op grocery chain led to empty shelves in some locations.

There's seems to be little public knowledge or concern about the cyberattack on our food infrastructure that is causing huge shortages in grocery stores.

The cashier at my local co-op said it started on Thursday. Their supplier, UNFI wasn't able to accept or place any orders.… pic.twitter.com/uOKwiRTvZr

— KylieRose (@KylieRoseMM) June 11, 2025

While cyber threats have escalated across industries, breaches in consumer-facing businesses carry heightened risks.

Beyond halting product sales, these attacks jeopardise customer data, increasing vulnerability to future phishing schemes and fraud.

Despite continuous efforts to strengthen cybersecurity defenses, experts warn that attacks are on the rise.

Cliff Steinhauer, director of information security at the National Cybersecurity Alliance, noted a significant increase in retail victims over the past year.

He said:

“Cyber criminals are moving a little quicker than we are in terms of securing our systems.”

Ransomware—where hackers demand payment to restore compromised systems—constitutes a growing portion of these crimes.

According to data from the NCC Group, industrial sectors were the primary targets in April, followed closely by consumer discretionary companies.

Attackers deliberately target well-known brands to maximise disruption and leverage daily consumer reliance on these products.

🚨 ATTENTION SHOPPERS! 🚨 A massive cyberattack on United Natural Foods Inc., the primary distributor for Whole Foods, is leaving grocery store shelves EMPTY across the US! Hackers struck last week, forcing UNFI to take systems offline, disrupting deliveries of fresh produce,… pic.twitter.com/89W4Ma1agn

— @XTexasGirlX (@XtexasgirlX) June 11, 2025

Steinhauer stated:

“Creating that chaos and that panic with consumers puts pressure on the retailer.”

Ade Clewlow, associate director at NCC Group, highlights the severe consequences on food supply chains.

Following cyberattacks on M&S and Co-op, supermarkets in remote UK areas, already struggling with inventory shortages, experienced further product scarcity, underscoring the widespread ripple effects of these digital breaches.

Clewlow noted:

“People were literally going without the basics.”

Personal Data Under Increasing Threat

Cyber breaches not only disrupt business operations but also put customer data at serious risk.

Depending on the extent of the attack, stolen information can range from basic details like names and email addresses to highly sensitive data such as credit card numbers.

Experts urge consumers to remain vigilant in the face of these threats.

Clewlow expressed:

“If (consumers have) given their personal information to these retailers, then they just have to be on their guard. Not just immediately, but really going forward.”

Fraudsters often exploit breaches by sending phishing emails that mimic legitimate retailers, urging account holders to reset passwords or enticing them with fake promotions to click malicious links.

The safest approach is to pause before interacting with any suspicious message and independently verify its authenticity by visiting the company’s official website or contacting customer service directly.

Additionally, experts caution against reusing passwords across multiple sites.

A breach on one platform can lead to “credential stuffing,” where hackers use stolen login details to access other accounts.

Steinhauer emphasizes that enabling multifactor authentication wherever possible adds a critical layer of protection against unauthorized access.

Recent Cybersecurity Incidents Reported by Major Companies

Several consumer-facing companies have recently reported cybersecurity incidents, some severe enough to disrupt operations.

On 5 June, United Natural Foods—a major distributor for Whole Foods and other North American grocers—took parts of its systems offline after detecting unauthorised activity.

The company disclosed in a securities filing that the breach impacted its ability to fulfill and distribute customer orders.

Although United Natural Foods reported steady progress in restoring services, some product shortages persisted this week.

Whole Foods, owned by Amazon and partnered with United Natural Foods through May 2032, confirmed efforts to replenish store shelves promptly.

Similarly, Victoria’s Secret experienced a security breach last month that forced the temporary shutdown of its US online store for nearly four days and interrupted certain in-store services.

The lingerie retailer later revealed that its corporate systems were also affected, resulting in a delayed first-quarter earnings report.

In the UK, prominent retailers including Marks & Spencer (M&S), Harrods, and Co-op have all felt the impact of recent cyberattacks.

M&S’s incident, first reported around Easter, halted online order processing and caused some store shelves to empty.

The company estimated a £300 million cost from the attack but has since announced partial restoration of online operations, with more services expected to resume in the coming weeks.

That cyber attack shut down M&S online orders for a month and a half. And it’s just coming back online now.

That’s a huge amount of downtime.

It really is.

You’d think they would have been able to reset something sooner.

It does show how vulnerable some of the infrastructure… pic.twitter.com/QVMKV4OOAm

— TheMekon_Venus (@TheMekon_Venus) June 10, 2025

Other breaches have targeted customer data.

Brands such as Adidas, The North Face, and reportedly Cartier disclosed recent compromises of contact information.

The North Face attributed the breach to a “small-scale credential stuffing attack” affecting 1,500 customers but confirmed no credit card data was accessed.

Adidas reported unauthorised access to data, primarily contact details, via a third-party customer service provider.

Whether these breaches are related remains unclear.

Experts like Steinhauer highlight that hackers often exploit vulnerabilities in widely used software to target multiple organisations, though varying tactics suggest the involvement of different threat actors.

Corporate disclosures vary in detail and timing, with many companies not immediately clarifying whether ransomware was involved.

Nevertheless, Steinhauer observes that ransomware remains a “highly likely” factor in today’s cybersecurity landscape, often indicated by companies taking systems offline or delaying financial reports.

Overall, experts stress the critical importance of strengthening “cyber hygiene” — proactive security measures and preparedness — across organizations to mitigate such threats and minimise operational disruptions.

Clewlow concluded:

“Cyber is a business risk, and it needs to be treated that way.”

Australian Woman Banned for a Decade After $9.6M Crypto ‘Safe Investment’ Scam

The Australian Securities and Investments Commission (ASIC) has issued a ten-year industry ban against former financial adviser Glenda Maree Rogan for allegedly misappropriating $9.6 million in client funds and funneling them into a crypto scam disguised as a fixed-income investment.

The ban, effective 6 June, prohibits Rogan from providing financial services or holding any leadership or control roles in related businesses.

According to ASIC, Rogan directed the funds into a fraudulent crypto scheme between March 2022 and June 2023 while operating under Private Wealth Pty Ltd and the Fincare group.

The regulator claims she misled clients about the investment’s risk, liquidity, and nature, presenting it as a safe, interest-bearing product.

Rogan’s alleged deception and misuse of funds form the basis of one of ASIC’s most severe recent enforcement actions.

[Cryptocurrency]

🇦🇺 ASIC | ASIC Bans Financial Adviser for Cryptocurrency Scam

• ASIC bans Glenda Maree Rogan from providing financial services for ten years due to misleading conduct in a cryptocurrency-based investment scam. • Ms. Rogan transferred at least $14.8 million…

— RegFlow Hub (@RegFlowHub) June 12, 2025

The regulator added:

“ASIC also found it had reason to believe that Ms Rogan is not a fit and proper person, is not competent to participate in the Australian financial services industry, and is likely to contravene a financial services law.”

Adviser Promised Safe Returns, Sent Funds to Suspicious Crypto Site

Rogan, a former financial adviser operating in Sutherland Shire and Wollongong under the Fincare group of companies, has been banned from the financial services industry for ten years following allegations of deceptive conduct involving a multi-million-dollar crypto scam.

According to the ASIC, between March 2022 and June 2023, Rogan misled clients, friends, and family by promoting what she described as a “high-yield fixed interest account.”

Australia Slaps 10-Year Ban on Adviser Over $9.6M Crypto Scam https://t.co/6GRYSVj7q9
The Australia securities watchdog has imposed a decade-long ban on a former financial adviser who allegedly funneled millions in client funds into a crypto scheme disguised as a fixed-inco... pic.twitter.com/saFhRpBujI

— Al Hadath (@AlHadath_net) June 12, 2025

In reality, the funds—totalling at least A$14.8 million (approximately US$9.6 million)—were funnelled into cryptocurrency and transferred to wallets linked to a suspicious trading platform known as the Financial Centre, a UK-based entity already flagged on ASIC’s blacklist.

ASIC alleges that Rogan falsely claimed she was acting as a representative of Fincare and used personal and business accounts to receive and move investor funds.

By late 2022, the regulator concluded Rogan likely knew, or should have suspected, that the platform was fraudulent.

The watchdog determined she is unfit to provide financial services or hold any control or management roles in the sector and warned there is a significant risk of her reoffending.

Rogan, who had held directorships within Fincare and was an authorised representative of Private Wealth Pty Ltd until early 2025, has been added to ASIC’s banned and disqualified register.

She may appeal the decision to the Administrative Appeals Tribunal, while the investigation into her conduct continues.

Elite Soccer Stars Investigated in Spain for Investor-Fuelled Crypto Fraud

A high-profile investigation is underway in Spain following allegations that a cryptocurrency project promoted by several elite footballers defrauded investors of more than $3.4 million.

The focus of the probe is Shirtum Europa SLU, a company that marketed NFTs linked to player image rights but vanished shortly after failing to deliver a functional platform.

The case, currently before the Fifth District Court of Barcelona, names six prominent players—including World Cup winners and former stars of Barcelona and Sevilla—Alejandro Gómez, Lucas Ocampos, Ivan Rakitić, Javier Saviola, Nico Pareja, and Alberto Moreno.

The athletes are accused of lending credibility to the project, despite Shirtum lacking a viable product.

Filed by 12 alleged victims and supported by expert testimony, including analysis from economist Prosper Lamothe, the complaint claims investors were misled by promises of exclusive digital assets and future returns.

🚨 Former Barça & Sevilla players under investigation in Spain over alleged crypto scam tied to Shirtum. Fake NFTs, useless SHI token, >11K wallets impacted. Promo used athlete clout to rug retail. ⚽💸 #CryptoScam #NFTs #Shirtum #Rugpull #Web3Drama pic.twitter.com/TDim4OqZGE

— Bull Crypto (@BullMarketx100) June 11, 2025

Instead, they were left with tokens that had no practical use or market value. The case raises broader questions about accountability in celebrity-backed crypto ventures.

NFTs Marketed, Platform Abandoned Without Delivery

Shirtum marketed its $SHI token as the exclusive currency for purchasing NFTs tied to the personal brands of high-profile footballers, with some digital items priced at over $500.

Yet the platform failed to offer users any way to trade or withdraw their tokens, effectively trapping investor funds.

According to court filings, developers allegedly structured Shirtum’s operations across Spain and Andorra in an intentionally opaque way—aimed at minimising tax exposure and shielding the founders from legal responsibility.

Central figures in the venture include Argentine businessman David Rozencwaig and Catalan entrepreneurs Manel Ángel Torras, Marc Alberto Torras, and Manuel Morillas.

The project's credibility was amplified by the public involvement of several star players, who appeared as co-founders and faces of Shirtum’s promotional campaigns.

Among them, Papu Gómez is said to have played a pivotal role, personally recruiting other footballers to join and promote the platform.

🚨 A Spanish court has launched an investigation into six well-known footballers — including Papu Gómez, Lucas Ocampos, Ivan Rakitić, and Javier Saviola — over their role in promoting the failed NFT project @Shirtum, which left investors with $3.4M in losses.

More news 👉… pic.twitter.com/AceWj6GBCo

— NFT NEWS (@NFTNews_EU) June 11, 2025

Following the collapse of Shirtum, the complaint alleges, the players quietly removed any references to the project from their social media accounts.

In 2022, the company claimed its funds were wiped out in a cyberattack, though no official police report was ever filed.

Investigators now suspect the funds may have been misappropriated for personal use.

Global Football Stars Tied to Omegapro Promotions

Shirtum is far from the only crypto project to enlist the star power of professional footballers.

According to a separate investigation by El Diario, at least 20 current and former players are now facing legal action for their involvement in promoting Omegapro—an alleged global Ponzi scheme that reportedly raised over €3 billion from investors.

Omegapro lured participants with promises of 300% returns within 14 months and relied heavily on high-profile endorsements from football legends including Ronaldinho, Kaká, Luis Figo, Iker Casillas, Carles Puyol, Roberto Carlos, and Vinícius Jr. Legal teams representing victims argue that these celebrity endorsements were instrumental in establishing credibility and fuelling the scheme’s international reach.

🛑 Funds locked on #Tricebit or #Omegapro?
You’re not alone — these platforms are tied to withdrawal scams and rug pulls.

✅ Many victims have already recovered their crypto — you can too.

📩 DM now to start your recovery journey.#CryptoRecovery #CryptoScam #Tricebit #Omegapro pic.twitter.com/lVwxktZw5I

— Dariyan (@dfwjasper) June 12, 2025

Now, several of those athletes are under scrutiny for potentially misleading the public by lending their names to unregulated financial ventures.

Rising Crypto Scams Use Celebrities and AI Tricks

The Shirtum and Omegapro scandals reflect a broader—and increasingly sophisticated—trend in crypto fraud: the strategic use of celebrity endorsements to build trust and attract unsuspecting investors.

Experts warn that sports figures and influencers, whether complicit or simply careless, often blur the line between endorsing a product and actively participating in its promotion.

Their vast followings make them ideal tools for fraudsters looking to legitimise questionable projects.

A June 2025 report by crypto exchange Bitget underscores just how advanced these scams have become.

In 2024 alone, over $4.6 billion was lost to crypto-related fraud—a 24% increase from the previous year.

Nearly 40% of these cases involved deepfake technology, with scammers using AI-generated media to impersonate executives, forge documents, and fabricate entire identities.

Bitget CEO Gracy Chen emphasized that the rise of emotionally manipulative tactics combined with hyper-realistic visuals makes such scams increasingly difficult to detect.

Today’s fraudulent platforms often mimic legitimate ones, complete with gamified user experiences, fabricated audit certificates, and viral referral schemes.

Chen cautioned:

“Scams today aren’t amateur operations.”

Accused Crypto Kidnappers in NYC Plead Not Guilty to Torture Charges

Two men accused of kidnapping and torturing an Italian tourist in New York City’s SoHo neighbourhood last month have pleaded not guilty to all charges.

During a Wednesday hearing at the New York Supreme Criminal Court, John Woeltz and William Duplessie entered their pleas in connection to the alleged abduction and imprisonment of Michael Valentino Teofrasto Carturan.

2 men plead not guilty in NYC crypto kidnapping and torture case https://t.co/L90iAqeyH4 pic.twitter.com/8cVVd27HJ3

— 1010 WINS on 92.3 FM (@1010WINS) June 11, 2025

Prosecutors claim the pair, believed to be acquaintances of the victim, subjected Carturan to beatings and electric shocks over a span of nearly three weeks in an effort to extract access to his cryptocurrency wallet.

The charges—first-degree kidnapping, assault, and unlawful imprisonment—could carry a life sentence if the men are convicted.

Justice Gregory Carro ordered both defendants held without bail pending their next court date on 15 July.

A third suspect was also arrested in the case but has since been released.

Carturan reportedly escaped and alerted police, leading to the arrests.

The case has also drawn scrutiny over potential lapses in security: two NYPD officers assigned to Mayor Eric Adams' private security detail were placed on modified duty after allegedly driving the victim from the airport to the apartment where he was later held.

The mayor’s office said in a statement:

“Every city employee is expected to follow the law, including our officers, both on and off duty. We are disturbed by these allegations, and as soon as it came to our attention, the officers were placed on modified duty.”

As of Wednesday, neither officer faced criminal charges.

Claims of Accuser Laughing and Smiling Surfaced

Despite the serious charges of kidnapping and torture, recently surfaced footage has cast doubt on aspects of the prosecution’s case.

The alleged victim—reportedly a former business associate of both Woeltz and Duplessie—appears in videos walking freely around the apartment where he claims he was held, prompting scepticism about the circumstances of his captivity.

New bombshell videos and photos reveal that kind of wild, bacchanalian atmosphere during the bizarre crypto kidnapping case that's landed John Woeltz and William Duplessie in jail.

See more: https://t.co/fTnmCaFOjU pic.twitter.com/evDEoYJDLh

— TMZ (@TMZ) June 6, 2025

The prosecutor said:

“Victims of abuse are not always going to act the way we expect them to.”

Defense attorneys argue that their client’s behaviour in the footage, which allegedly shows him laughing, smoking crack cocaine, and engaging in group sex, contradicts the image of someone being held against his will.

Lawyers for both Woeltz and Duplessie contend that the accuser was not confined and had freedom of movement throughout the city on the days in question.

Woeltz’s attorney further cited eyewitness accounts claiming the man was not restrained and moved about freely.

Sam Talkin, Duplessie’s lawyer stated in criminal court on Wednesday:

“The story that he is selling doesn’t make sense.”

However, prosecutors maintain the evidence tells a far more disturbing story.

Assistant District Attorney Sarah Khan suggested the leaked footage was selectively released to create a misleading counter-narrative.

Prosecutors say the victim was bound, beaten, electrocuted, and subjected to psychological torment in an attempt to access his crypto wallet.

Police recovered items including a loaded firearm and a chainsaw, which authorities say corroborate the victim’s account.

Shocking images have also emerged, showing the man with a gun to his head and others allegedly depicting him being set on fire—acts prosecutors say were carried out with enough restraint to avoid lasting injuries, including dousing flames with urine.

Authorities are now investigating the possibility of additional victims, suggesting this may not have been the first time the defendants held someone against their will.

NYC Leadership Eyes a Warmer Welcome for Crypto Industry

Adams has positioned New York City as a crypto-forward hub, hosting a digital asset summit at his official residence and advocating for innovative tools like Bitcoin-backed municipal bonds.

He has also been a vocal critic of the state’s BitLicense regime—a regulatory framework in place since 2015 that requires any digital asset firm operating or managing crypto investments for New York residents to obtain a license.

But recent events have complicated that vision.

The high-profile kidnapping and alleged torture of a crypto holder in Manhattan marks the latest in a troubling global pattern of attacks targeting individuals believed to hold or manage significant cryptocurrency assets.

🚨 Crypto Kidnapping Case: Two Plead Not Guilty

John Woeltz and William Duplessie have entered not guilty pleas in a shocking New York City case involving the alleged kidnapping and false imprisonment of Michael Valentino Teofrasto Carturan.

The defendants are accused of… pic.twitter.com/Radwst7qps

— 👁 KOLYAN TREND | NFT and METAVERSE 👁 (@kolyan_trend) June 11, 2025

As New York seeks to attract more blockchain investment, the case raises urgent questions about how to balance innovation with safety and oversight.