This group aims to give a method of reporting losses for victims who are currently without a clear path to do so. According to official government data, United States residents lost more than $11 billion to cryptocurrency fraud in 2025 alone. The FBI’s 2025 Internet Crime Report shows that there were 181,565 complaints involving cryptocurrency, with total losses exceeding $11.3 billion. This represents a 21% jump in complaint volume from the previous year. Investment scams were the biggest contributor to the total amount, accounting for $7.2 billion of those losses.

A report from blockchain analytics firm TRM Labs found that wallets linked to illegal activity received $158 billion in cryptocurrency during 2025, a sharp increase from $64.5 billion in 2024. These losses were driven largely by sanctions evasion and nation-state actors. However, it is worth noting that illegal activity as a share of all crypto activity actually fell slightly to 1.2% in 2025. The FBI reports that, more than any age group, people over 60 filed 44,555 complaints and lost $4.43 billion to crypto scams.

United States legislators submit a new bill to go after fraudsters

In the United States, the bureau’s 2025 Internet Crime Report logged 181,565 complaints involving cryptocurrency, with total losses exceeding $11 billion, representing a 21% jump in complaint volume from the prior year. The FBI has launched initiatives like Operation Level Up to identify and notify victims while a scam is still happening, and that has helped save an estimated over $500 million since it began in 2024. In 2025 alone, the operation saved $225.8 million. There were also 3780 recorded victims that year.

The bill, called the Federal Cryptocurrency Theft Enforcement and Coordination Act, was introduced by Republican Rep. Lance Gooden and Democratic Rep. Josh Gottheimer as a means to give victims, who currently have no single place to turn for help, a place to make reports. Rep. Lance Gooden is a Texas Republican who sits on the House Judiciary Committee, while Rep. Josh Gottheimer is a New Jersey Democrat on the House Financial Services Committee.

Rep. Gooden said in a statement that Americans lack a coordinated strategy to stop the crypto criminals who are stealing millions from them. The task force would be based in the Department of Justice and would bring together the FBI, Department of Homeland Security, and the Treasury Department. Its job is to coordinate investigations, create a standard playbook for local police on handling crypto theft, and provide better support for victims. The Trump administration disbanded the Department of Justice’s National Cryptocurrency Enforcement Team (NCET) in 2025.

Officials at the time argued that the previous administration had used the team to regulate crypto through lawsuits rather than focusing on catching criminals, and now the new bill will fill that gap, albeit with a different approach. Federal enforcement of crypto-related crime is currently split across multiple agencies and has overlapping but fragmented rules that have produced inconsistent responses, leaving investigators and victims to navigate the inconsistent framework.

The Digital Chamber, a crypto policy organization, endorsed the idea, saying law enforcement needs better tools and training. Dennis Porter of the Satoshi Action Fund said the bill would give “victims, investigators, and local law enforcement the unified federal response they have been missing.” The bill still needs to pass through committees or be attached to a larger legislative package to become law.

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a16z crypto said the investment reflects increasing demand from financial institutions for blockchain systems that protect sensitive information while supporting regulated financial activity. 

The funding also highlights a broader shift in the industry, where transparency on public ledgers is increasingly viewed as a challenge for banks, asset managers, and businesses seeking confidentiality.

The investment comes as privacy-related digital assets have recorded strong market performance. 

Monero has gained more than 100% over the past year, while Zcash rose more than 700% at its peak. 

Canton’s native token, CC, has also expanded significantly, reaching a market capitalization above $6.3 billion. 

The token trades near $0.16, with a circulating supply of 38.8 billion and no maximum supply cap.

Institutions prioritize privacy on blockchain networks

In a January post discussing privacy trends for 2026, a16z general partner Ali Yahya described privacy as “the most important moat in crypto this year.” 

Yahya, who co-authored the investment memo alongside Noah Levine, stated that privacy is “critical for the world’s finance to move on-chain.”

Industry leaders have expressed similar views. Stellar Development Foundation chief executive Denelle Dixon said on the organization’s blog that “Unless you can protect my information, I can’t do anything on the blockchain.”

Dixon explained that concerns from a major global bank centered on competitive intelligence rather than consumer information. 

Areas of concern included payment volumes, deposit flows, and counterparty relationships.

Bitwise chief investment officer Matt Hougan echoed the argument in a May blog post, writing that transparency becomes a disadvantage when businesses expose trading activity, or employees reveal salary information through publicly accessible blockchain records.

Canton gains traction among major financial firms

Unlike privacy-focused retail cryptocurrencies, Canton uses a public permissioned layer-1 structure designed for regulated institutions. 

According to Digital Asset, participants only access transaction details relevant to them while maintaining interoperability across applications.

Digital Asset was founded in 2014 by Yuval Rooz, Eric Saraniecki, and Shaul Kfir. Kfir developed libsnark, a cryptographic library later used by Zcash.

The network already supports significant financial activity. DTCC is tokenizing Treasury securities on Canton, while Broadridge processes more than $400 billion in daily U.S. Treasury repo volume through a Canton subnet. Tradeweb also operates continuous repo trading and settlement on the network.

Privacy projects attract major capital inflows

JPMorgan is moving its tokenized deposit product to Canton. Goldman Sachs has issued debt instruments and a money market fund on the network and plans to operate a Super Validator node. 

More than 40 Super Validators, including Visa, Apollo, Circle, and Chainlink, support the Canton Global Synchronizer.

Canton is part of a wider trend. Alongside Circle’s Arc and Stripe-backed Tempo, privacy-oriented blockchain projects have attracted more than $1 billion in funding at valuations exceeding $10 billion. 

According to Hougan and a16z, regulatory progress through the GENIUS Act and advancing the CLARITY Act has strengthened institutional confidence in digital asset infrastructure.

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The U.S. Securities and Exchange Commission announced the proposal on June 11, beginning a 60-day public comment period. 

According to TD Cowen managing director Jaret Seiberg, any final regulatory changes are expected during the first quarter of 2027.

The proposal targets two long-standing provisions of the Regulation National Market System, commonly known as Reg NMS. 

Rule 611, often called the trade-through or order protection rule, prevents stock orders from being executed at prices inferior to those available on competing trading venues. 

Rule 610(e) prohibits exchanges from displaying quotations that create locked or crossed markets relative to other exchanges.

SEC reviews long-standing market structure rules

The SEC said the proposed changes would eliminate Rules 611 and 610(e) along with related definitions and conforming provisions. 

The regulations were originally designed to protect investors from poor execution prices across a fragmented network of trading venues.

However, SEC Chairman Paul Atkins argued that the rules have produced unintended consequences. 

In a statement released alongside the proposal, Atkins said it was “high time” for the Commission to revisit regulations that had “hindered, rather than enhanced, the long-term growth of our markets.”

Atkins has opposed the trade-through rule since its adoption more than two decades ago. At the time, he and former Commissioner Cynthia Glassman dissented, arguing that market competition would generate more efficient outcomes than regulatory mandates.

Public consultations helped shape the proposal

The proposal follows two public consultations on equity market structure conducted by the SEC last year. 

The agency gathered feedback from exchanges, broker-dealers, and market makers before advancing the proposed revisions.

In remarks delivered during the Commission meeting, Atkins referenced those discussions and said the SEC had approached the issue through a transparent process before introducing the proposal. 

The review forms part of a broader effort to reduce regulatory burdens affecting U.S. public markets.

The Tokenized securities sector watches closely

The proposal has attracted attention from participants in the tokenized securities market. During a May 28 speech at Stanford’s Rock Center for Corporate Governance, Atkins discussed broader efforts to remove regulatory barriers that he believes have contributed to a decline in U.S.-listed companies since the mid-1990s.

Galaxy Digital Research executive Alex Thorn described the proposal as “one of the biggest unlocks yet for tokenized stock trading on decentralized exchanges.” 

He noted that automated market makers on decentralized exchanges cannot comply with Rule 611 because prices are determined by liquidity pool conditions during transaction validation.

Even if adopted, the proposal would not remove existing requirements involving exchange registration, alternative trading systems, clearing, settlement, or other securities regulations governing market operations.

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The futures and derivatives exchange operator has stated that its existing 1-ounce gold futures will start to trade every hour of every day on July 26. A new 10-barrel WTI crude oil contract, which is one-tenth the size of its current Micro WTI futures, will then follow with an August 30 launch. Both of the new products are still subject to regulatory approval. Gold trades under COMEX rules, while the new crude oil product will be listed on NYMEX, CME Group’s energy exchange, and all the newly created contracts are cash-settled.

CME Group unveils new markets on its trading platform

The newly created 10-barrel crude oil contract was launched to drop the barrier to entry for low liquidity traders who find standard-sized futures too large for their portfolios. CME Group’s options on WTI crude hit a record average daily volume of 320,000 contracts in the first quarter of 2026, according to the company’s announcement. WTI crude oil still remains the global benchmark to assess crude oil pricing globally.

In addition, the demand for smaller crude contracts has also risen. Micro WTI futures saw a total of 272,000 contracts per day in May 2026, which represents a 317% jump from the demand in May 2025, according to data from the CME Group. On the other hand, gold’s 1-ounce contract launched on the platform in January 2025 and has seen almost 90,000 contracts per day in 2026. CME Group’s gold benchmark products accrue almost $100 billion in total value traded every day, the company stated.

Derek Sammann, CME Group’s senior managing director and global head of commodities markets, has pointed to geopolitical risk as the motivation behind the 24/7 expansion of these contracts. “Traders are increasingly looking to diversify their portfolios across commodity markets in the face of geopolitical uncertainty,” Sammann said, according to the company’s press release. “Our new WTI and Gold futures provide regulated products that are right-sized and available 24/7, ensuring traders can manage exposure whenever news breaks.”

The move to offer round-the-clock trading for these specific commodities fits strongly with the CME Group’s existing push into uninterrupted trading for equities and cryptocurrency products. The extension of this model into commodities like crude and gold points to a shift in trader preference to markets that are consistently available and never close.

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The development has now given way to a conflict in the commodity markets between raising the interest rates needed to fight inflation and the risks associated with geopolitics, with effects being felt in trade flows and central bank calculations globally. The decline in the precious metal market in China followed the global sell-off, with prices for spot gold falling to as low as $4,022.09 per ounce, levels last seen in November, Reuters reports. Yet the yellow metal recovered somewhat to close at $4,089.12 per ounce, driven by short covering.

According to reports, what led to the fall was issues related to whether the US Fed would hike rates before the end of the year. The latest US Consumer Price Index report noted that the inflation rate rose to its highest in the past three years, owing to rising energy prices. This comes amid the tensions between the US and Iran. It has changed the odds. Traders are now seeing a greater than 70% chance of rate hikes within the coming months as per the CME FedWatch Tool.

Shanghai Futures Exchange sees gold futures selloff

Gold becomes less attractive as the interest rates rise, since there is no earnings capacity associated with it. As per Matt Simpson, a market analyst with StoneX Group, quoted by Reuters, $4,000 represents an” obvious level of support that could prompt bears to book a quick profit or tempt battered bulls from the sideline.” Unless the upcoming Producer Price Index (PPI) report surprises the markets, a technical rebound for the precious metal can be expected.

While gold and silver fell in Shanghai, the rest of China’s futures board moved in the opposite direction. Polysilicon led the morning session with gains exceeding 4%, and low-sulfur fuel oil climbed nearly 4%. Palladium, liquefied petroleum gas, SC crude oil, methanol, and lithium carbonate each rose more than 3%. This is an indication of how the tensions in Iran have had different impacts on the international commodities market. Energy prices respond positively to any disruption in their supply chain.

Iran announced that it had blocked the Strait of Hormuz following new attacks from America, and oil prices went up by over $2 on Thursday. This is the energy price shock that has led to inflation levels that pose a threat to gold through interest rates. The response by China to increased energy prices has been to handle imports in terms of pricing. According to the Reuters report, columnist Clyde Russell indicated that China has reduced its imports to 29 per cent, a level not experienced in the past 8 years.

He also noted that it is now as low as 7.79 million barrels per day in May, because of the premium that was being charged for Saudi crude oil. Instead of paying for their energy at such high rates, China decided to use its stored energy during the low prices of Russian and Iranian crude. Copper imports also softened, falling 7% in the first five months of 2026 compared to the same period in 2025, as London copper prices rose 9.6% year-to-date.

Aluminium moved the other way: Chinese producers ramped exports to 632,000 tons in May, capitalising on higher international prices caused by Middle East supply losses. The gold sell-off occurs at a time when the structure of global gold demand is changing. According to Metals Focus, a consultancy firm dedicated to delivering statistics, analysis, and forecasts for the precious metals markets, physical investment will surpass jewellery for the first time in becoming the biggest form of gold demand in 2026.

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The attack targeted code that the Solana-based decentralized exchange phased out five years ago. According to Infra, a Raydium team member, no current users were affected because the pools had been inaccessible through the platform’s interface for years. Infra also stated that “full compensation will be handled by Raydium’s treasury.” According to Infra, “the vulnerability was caused by a self-contained logic flaw, not a key compromise or authority-level issue, so there is no propagation risk.”

Raydium suffers a $1.34 million loss to hackers

Security researcher Param stated on X that the attacker found a flaw in Raydium’s 2021-era code. The attacker identified five abandoned liquidity pools still holding funds and generated fraudulent ownership receipts. Those fake LP tokens tricked the legacy smart contract into treating the attacker as a legitimate liquidity provider, allowing a full withdrawal of pool assets. Blockchain security firm F12 corroborated the submissions, tracing the attack on-chain.

The exploit relied on a fabricated LP token with a supply of just one unit. When the attacker submitted a withdrawal using that token, the old program released the entire pool balance. PeckShieldAlert reported that the attacker’s wallet was initially funded through KuCoin. After draining the pools on Solana, they bridged the stolen funds to Ethereum via deBridge, yielding roughly 810 ETH. The attacker then deposited the bulk of that haul into Tornado Cash, the mixing protocol frequently used to obscure transaction origins.

After that, the attacker then moved 7 ETH through FixedFloat, according to PeckShieldAlert’s analysis. According to the Raydium team, the exploiter’s address is 4WnPebowR4HHfumvNPaDjG6Pa5Hi1jxLm6xmmBq33QVk. Raydium’s current programs are still active, per Infra. The protocol holds $796.56 million in total value locked on Solana and has processed over $1.1 billion in DEX volume in the past seven days, according to DefiLlama data.

The AMM V3 program that was exploited is separate from the pools currently in use. However, this is not the first time Raydium has suffered from a security breach. In December 2022, the protocol lost $4.4 million after a private key compromise. The latest breach adds to what has become a near-daily check-in for crypto exploits in 2026. Cryptopolitan has previously reported that CertiK logged 60 confirmed security incidents in May alone, totaling $68.3 million in gross losses, the highest monthly incident count of the year. Code vulnerabilities accounted for over $45 million of those losses.

A few days before the Raydium exploit, attacks on Gnosis Pay and TesseraDAO cost projects at least $2.5 million, and the Flooring Protocol vulnerability spread to its fork, Asterisk, through shared code. As of the end of May, the cumulative losses as a result of crypto exploits in 2026 approached $1.3 billion. Bridge-related attacks alone account for $340.7 million of that figure, PeckShield has reported. The Raydium team stated that its core contributors are conducting a security review on all their mainnet programs.

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The decline became sharper around July 2025, when corporate ETH treasury strategies began moving from experiments into a wider accumulation trend.

Exchange balances are closely watched because they show how much ETH may be available for immediate sale on trading venues such as Binance or Coinbase. 

When coins remain on exchanges, they can reach order books quickly. When they move into treasury wallets or staking contracts, that supply becomes less available for short-term trading.

Record low supply meets weak price action

The supply drain is unfolding while ETH trades near $1,650, down about 44% year to date. Market sentiment also remains in extreme fear, adding pressure to a weak price backdrop. 

May closed with an 11.07% decline, while spot Ethereum ETFs recorded their second-largest monthly outflow since launch at $540.88 million.

The contrast is notable because Ethereum is facing its tightest exchange supply conditions on record during one of its weakest price periods of the cycle. 

A lower exchange balance does not automatically lift prices, but it reduces the amount of ETH available if demand returns.

Treasury buying accelerated after July 2025

CryptoQuant data shows ETH exchange reserves held near 20 million for much of 2024 before breaking lower in July 2025. 

That timing aligned with a major shift in corporate treasury activity. BitMine began its ETH treasury pivot in June 2025 after raising $250 million and has continued accumulating.

BitMine now holds more than 5.5 million ETH valued at $9.21 billion, making it the second-largest crypto treasury after Strategy. 

SharpLink follows as one of the largest ETH treasury holders, with 868,699 ETH at the time of writing. Much of the ETH held by these firms is staked, placing those coins away from order books.

The exchange reserve indicator only tracks coins leaving or entering exchanges. It does not identify the destination of those assets. 

However, the sharp reserve decline occurred during the same period when large treasury holders began locking ETH into longer-term balance sheets.

Thin float changes market structure

A shrinking float does not guarantee a price bottom. ETH can remain weak while sentiment stays negative and treasury holders sit on unrealized losses. 

The current setup shows that fewer coins are available on exchanges than at any previous point.

That condition matters because a thinner float can amplify market moves. When demand is low, a reduced supply may have little impact. 

But if buyers return in size, fewer exchange-held coins could make each new bid move through a smaller available supply base.

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PiggyBank says the LAB hedge became unsustainable

The DeFi yield protocol said its USDC vault now faces an estimated 15% drawdown, while its SPYx and JitoSOL products are expected to fall by about 12% and 9%, respectively. The project released a drawdown report on June 10 outlining how the position affected its vaults.

PiggyBank said it allocated around $100,000, equal to roughly 2% of its assets at the time, to a basis trade involving locked LAB tokens. The strategy involved buying the tokens through an OTC channel at a discount and opening a perpetual short position as a hedge.

According to the report, LAB later experienced “violent manipulation,” thin liquidity, and deeply negative funding rates. PiggyBank said those conditions made keeping the short position “economically irrational,” prompting the protocol to close the hedge to reduce further losses.

The locked LAB tokens are valued at about $1.35 million at market prices, more than 13 times the entry value. However, PiggyBank excluded the position from net asset value calculations because the tokens cannot be sold before the first unlock on August 14.

ZachXBT had warned about the LAB structure

The LAB exposure drew scrutiny because on-chain investigator ZachXBT had raised concerns about the token weeks earlier. In a May 14 analysis, he described LAB as a case study in “retail extraction” and pointed to opaque loans, OTC transactions, vesting changes, and market-making activity.

ZachXBT said more than 95% of the LAB supply was controlled by insiders. He identified the founders as Vova Sadkov and a co-founder known as Mark, and said the token launched through a Token Generation Event in October 2025.

His findings also said the LAB team changed the cliff for Legion public sale participants from three months to nine months without consent. He linked wallets used for LAB loan contracts to public buybacks and fund flows reaching founder-linked exchange accounts on Bybit and Gate.

According to ZachXBT, OTC offers had circulated since January 2026, including loans, discounted purchases, and KOL allocations for promotions. He connected the LAB infrastructure to a market-maker pattern he had previously associated with RAVE, RIVER, SIREN, MYX, and SKYAI.

Compensation pledge follows DeFi backlash

After PiggyBank disclosed the issue on June 6, ZachXBT said user assets had been gambled on “blatant scam coins.” The criticism triggered concern among depositors and DeFi observers.

PiggyBank has pledged compensation for users but has not specified the total losses, payment amounts, or timeline. The episode has renewed focus on strategy disclosure, illiquid token risk, and funding-rate exposure in DeFi vaults.

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CZ noted on X that “Bitcoin won’t be ‘dead’ for too long,” adding a reference to Douglas Adams: “Don’t panic, in large friendly letters.” The post saw thousands of interactions as BTC hovered around $62,600. On June 8, Strive announced it had purchased an additional 32 BTC for approximately $2.1 million at an average price of roughly $63,911 per coin, according to Cole’s post on X. The announcement came two days after he told followers he believes “the debt crisis won’t improve, debasement will continue,” adding that “we’re moving toward a Bitcoin future.”

Strive CEO backs Bitcoin to overcome bearish momentum

The Strive CEO also stated that “digital credit” is the best medium of exchange during what he sees as the long transition from fiat to a Bitcoin-denominated world. “The dollar is broken but is still the reserve currency,” Cole wrote on X on June 9. “Any security/commodity can easily be used as a medium of exchange today.” In an X post made on June 8, Cole stated that he and the Strive team are scheduled to appear at BTC Prague this week alongside Michael Saylor for a fireside chat.

The bullish posturing arrives during one of Bitcoin’s roughest stretches in recent memory. BTC fell from approximately $82,000 in early May to around $63,000 on Monday, a decline of over 20%. It briefly slipped below $60,000 last week for the first time since October 2024. Wall Street broker Bernstein pointed to capital rotation into artificial intelligence as the main culprit for the poor Bitcoin inflows. Bitcoin treasury companies and ETFs have attracted roughly $12 billion of inflows in 2026.

According to reports, the figure represents a steep drop from the $60 billion they received during 2025, Bernstein analysts led by Gautam Chhugani wrote. Spot BTC ETFs alone have recorded about $2.6 billion in net outflows from a $75 billion asset base this year, with corporate buyers led by Strategy (formerly MicroStrategy) accounting for most of the remaining demand, according to the report.

Crypto proponents and critics share different theories about the market

Cryptopolitan has previously reported on the broader dynamic at play: while critics are eager to declare Bitcoin dead, the liquidity squeeze has less to do with crypto-specific failures and more to do with capital chasing AI-related IPOs and infrastructure buildouts across equities markets. Bernstein’s analysts echoed that framing. “Bitcoin still may offer some diversification from the unusual singular AI-driven momentum markets we have experienced this year,” the report stated.

The firm also noted that the strongest-performing corners of crypto in 2026 have been tokenized equities and commodities, not Bitcoin itself. Despite the price pain, Bernstein argued that Bitcoin’s ownership structure has matured. Unlike prior cycles dominated by retail speculation, today’s holder base spans ETFs, corporate treasuries, wealth-management platforms, pension funds, and sovereign investors, according to the report. That diversification may explain why Cole and CZ are willing to buy and talk bullishly into a 50% drawdown.

Cole backed his words with capital, adding to Strive’s Bitcoin position at prices that would have seemed cheap a year ago and expensive two years before that. CZ offered no specific thesis beyond optimism. Whether the “dead” label sticks depends largely on whether AI continues to vacuum capital from risk assets or whether institutional buyers see current prices as an entry point. Readers watching this story should keep an eye on weekly ETF flow data and corporate treasury announcements heading into the summer.

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The federal lawsuit, filed Tuesday in Oxford, Mississippi, names xAI, its subsidiary MZX Tech, and SpaceX as defendants. Elon Musk is not named in the case. Three residents brought the complaint on behalf of a proposed class they estimate exceeds 10,000 members. Plaintiffs’ attorney Robert Wiygul framed the case in personal terms. “Our homes are supposed to be a sanctuary for us against the world. When they are invaded by noise 24 hours a day, it takes that fundamental peace of a good and decent life away from us.”

Residents sue xAI and SpaceX, alleging the effect of noise on daily life

Those residing in the area of interest say that the turbines have significantly interfered with their daily life due to their noise and vibration, which amounts to negligence and public nuisance. The noise and vibrations, according to Reuters, citing court filings, started in or about June 2025 and have continued to this day. The plaintiffs are suing for damages for their emotional distress, the diminution of the value of their property, and the disaggregation of profits.

xAI purchased a vacant power plant in Southaven and installed natural gas turbines to supply electricity to its data center operations across the Tennessee border in Memphis. The company has since committed more than $20 billion to expand data center infrastructure in Mississippi, a project backed by Governor Tate Reeves. The public and local media have said that xAI put up a sound barrier to mitigate its effect, but residents continued to complain about the noise

The class action comes after a separate April lawsuit filed by the NAACP, on behalf of the Southern Environmental Law Center, claiming that xAI is breaking federal Clean Air Act laws by operating the turbines without the proper environmental permits. Under Mississippi regulations, temporary or portable turbines can operate for up to one year without an air permit. The NAACP and its attorneys argue that the threshold has been exceeded.

The Justice Department signaled last month that it may intervene in the environmental case, saying it raises significant legal and policy questions involving the federal government’s role in AI infrastructure development. As Cryptopolitan earlier reported, xAI has already faced scrutiny over environmental and permitting concerns tied to its growing data center operations and power infrastructure. The new lawsuit increases the legal pressure on xAI as it continues to invest heavily in data centers and power infrastructure across Mississippi.

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