Crypto Legal & Regulatory & Market Analysis News - 2025-05-18

Today's Cryptocurrency Highlights

Welcome to your daily crypto news digest. Here's what's making waves in the blockchain world today.

Legal & Regulatory

Former Binance CIS Executive Vladimir Smerkis Arrested on Fraud Charges

Former Binance CIS Executive Vladimir Smerkis Arrested on Fraud Charges

Vladimir Smerkis, co-founder of the Blum project and a former Binance CIS executive, has been arrested in Moscow on allegations of large-scale fraud. The charges stem from earlier ventures where investors reportedly lost at least $15 million.

Background on Allegations

• Smerkis previously operated The Token Fund and Tokenbox, two projects that collectively raised $15 million ($8 million and $7 million respectively). Both ventures eventually collapsed, leaving investors with significant losses.

Recent Developments

• On May 15, Smerkis announced his resignation from Blum, stating that he no longer holds any role within the project.


• The Blum project team has since issued a statement affirming that operations are continuing as normal and distancing the project from Smerkis’s legal troubles.

The case highlights the ongoing risks and challenges in the cryptocurrency sector, particularly regarding investor protections and the accountability of project leaders.

Market Analysis

This Week's Top Crypto Market Highlights

This Week's Crypto Market Highlights

1. U.S. and China Reduce Tariffs for 90 Days

In a significant development for global trade, the United States and China have agreed to reduce tariffs for a 90-day period. While not directly related to cryptocurrencies, this move could impact global markets and investor sentiment, including within the crypto space.

2. Strategy Acquires 13,390 BTC for $1.34 Billion

A major acquisition has taken place as a prominent entity has purchased 13,390 Bitcoin for a staggering $1.34 billion. This reinforces institutional interest in Bitcoin as a long-term investment.

3. Arizona Governor Vetoes Two Crypto Bills

The Governor of Arizona has vetoed two proposed cryptocurrency-related bills. These vetoes may signal challenges for crypto-friendly legislation in the state and could impact local blockchain initiatives.

4. Gold Drops Below $3,160, Down 10% From High

The price of gold has fallen below $3,160, marking a 10% decline from its recent high. This drop may have implications for Bitcoin, often considered a digital alternative to gold.

5. Russia Includes Bitcoin in Financial Risk Review

The Russian government has added Bitcoin to its financial risk review, underscoring the growing attention cryptocurrencies are receiving from regulatory bodies worldwide.

6. FTX to Start Second Creditor Distribution on May 30

FTX announced it will commence its second creditor distribution process on May 30. This is part of the ongoing effort to resolve the exchange's bankruptcy proceedings.

7. U.S. Charges Tornado Cash Co-Founder Roman Storm

Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has been charged by U.S. authorities. This highlights the increasing scrutiny on privacy-focused crypto tools.

8. Judge Rejects SEC-Ripple Motion to Reduce Penalty

A judge has rejected the SEC and Ripple's joint motion to reduce penalties, signaling that the legal battle between the two parties remains contentious.

These developments underscore the dynamic nature of the cryptocurrency and blockchain ecosystem, with implications spanning regulation, institutional adoption, and international markets.

Upbit's Parent Company Dunamu Holds Over 16,000 BTC, Study Reveals

Upbit's Parent Company Dunamu Holds Over 16,000 BTC, Study Reveals

A recent study has unveiled that Dunamu, the parent company of South Korea's largest cryptocurrency exchange, Upbit, held a staggering 16,839 BTC as of December 2024. This substantial Bitcoin holding highlights the significant role of the exchange in the cryptocurrency market.

Accumulation Through Trading and Withdrawal Fees

The study further revealed that Dunamu's Bitcoin reserves were primarily accumulated through Bitcoin market trading fees and BTC withdrawal fees. This demonstrates how transaction fees contribute to the financial holdings of major cryptocurrency exchanges, particularly in markets with high trading volumes.

The findings underscore the growing importance of exchanges not only as trading platforms but also as significant players in the cryptocurrency ecosystem through their own asset holdings.

Source: Not specified in the original text.

Project Update

Tinian Government to Launch USD-Backed Stablecoin on eCash Network

Tinian to Issue USD-Backed Stablecoin, a U.S. Public Sector First

The government of Tinian, part of the Northern Mariana Islands, is set to make history as the first U.S. public entity to issue a USD-backed stablecoin. This innovative move highlights the growing adoption of blockchain technology by public institutions.

Powered by the eCash Network

The stablecoin will be launched on the eCash network, chosen for its unique features, including low transaction fees, scalability, and a gasless design. These attributes make eCash an attractive option for institutions exploring blockchain solutions for financial applications.

This milestone underscores the increasing integration of blockchain technology in the public sector, paving the way for further advancements in decentralized finance and government-backed cryptocurrency initiatives.

Regulation

Judge Denies SEC and Ripple's Joint Motion to Reduce $125M Penalty

Judge Rejects SEC and Ripple's Motion to Reduce Penalty

A U.S. federal judge has denied a joint motion by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs to reduce Ripple's penalty from $125 million to $50 million. The court ruled that the request was “procedurally improper.”

Court's Rationale

The judge cited that the motion did not meet the standards of Rule 60, which outlines the conditions under which a court may relieve a party from a final judgment or order. The court emphasized that such motions require compelling circumstances, are rarely granted, and must demonstrate that the requested relief serves the public interest.

Next Steps for Ripple and the SEC

While the joint motion was denied, the court indicated that the parties may refile their request. However, the judge's comments suggest that obtaining such relief will be challenging.

This decision marks another development in the ongoing legal battle between Ripple Labs and the SEC, which has significant implications for the broader cryptocurrency industry.

Follow our Steem account @ireh for daily crypto updates and insights.