Crypto News This Week: Tornado Cash Founder Convicted, CME Considers Spot Trading

This week’s crypto news roundup highlights the newest developments and trends in the cryptocurrency market.

Alexey Pertsev, the developer behind the controversial privacy tool Tornado Cash, has been in the news following a series of legal challenges in the Netherlands.

Pertsev, who was arrested in August 2022, faces accusations of money laundering through Tornado Cash, alleged to involve $1.2 billion, including funds from the Axie Infinity Ronin exploit.

In other news, the Chicago Mercantile Exchange (CME) is reportedly considering expanding into the spot Bitcoin trading market, which could make it?a direct competitor to major cryptocurrency exchanges like Binance and Coinbase.

Tornado Cash Founder Found Guilty

On May 14, a Dutch judge at the s-Hertogenbosch court convicted Pertsev of money laundering. The trial followed an indictment that stated Pertsev had engaged in a pattern of money laundering between July 9, 2019, and August 10, 2022.

Despite these serious charges, a Dutch court has allowed him the possibility of release pending trial. This comes amidst broader debates within the crypto community about developer accountability and the ethical implications of crypto privacy tools.

Tornado Cash Developer Found Guilty of Laundering $1.2 Billion of Crypto (Wired)

CME Considers Spot Bitcoin Trading

The CME is reportedly considering expanding into the spot Bitcoin trading market, which could make it?a direct competitor to major cryptocurrency exchanges like Binance and Coinbase. CME is known for futures trading, and its potential entry into spot trading could enhance the liquidity and stability of Bitcoin trading.

Futures exchange CME plans to launch bitcoin trading (Financial Times)?

FTX Founder Seeks 18-Months Sentence

Ryan Salame, a former executive at FTX, is seeking a lenient sentence of 18 months in prison after pleading guilty to significant financial crimes. Salame admitted acting as a “straw donor” to funnel illicit funds to political campaigns, exploiting a loophole to bypass federal campaign finance laws.

Former FTX Executive Ryan Salame Seeks 18-Month Sentence, Citing Cooperation and Remorse (Cryptonews.com)

Telegram’s Notcoin Launches

The cryptocurrency known as Notcoin recently debuted on the Telegram Open Network (TON) blockchain, achieving a significant market debut with a fully diluted valuation (FDV) of $1 billion. The launch is particularly notable given the increasing integration of blockchain technology within Telegram’s ecosystem.

Notcoin (NOT) Launches With A $984M Market Cap (CoinMarketCap)

Biden Bans China-Tied Mining Company

President Biden ordered a halt to the MineOne operation, a China-tied Bitcoin mining project located near Warren Air Force Base, citing national security risks due to the facility’s Chinese ownership and its proximity to critical military infrastructure.

US bans China crypto-miner from nuclear base area (BBC)

Circle Files for IPO in the US

Circle, the issuer of the USDC stablecoin, has officially filed for an IPO in the United States. The decision follows a previously planned public offering through an SPAC deal that did not materialize. The number of shares and price range for the IPO have not been disclosed yet.

Stablecoin Issuer Circle Files to Shift Legal Home to U.S. From Ireland Ahead of Planned IPO (CoinDesk)

Senate Votes to Kill SEC’s Crypto Accounting Policy

The U.S. Senate joined the House of Representatives on Thursday in seeking to erase the controversial SEC crypto policy known as Staff Accounting Bulletin No. 121. However, President Joe Biden has vowed to veto the resolution. The Senate voted 60-38 on the effort to overturn the policy.

Senate votes to kill SEC crypto accounting rule (Axios)

Vanguard to Refrain from Launching Bitcoin ETF

The incoming CEO of Vanguard has confirmed that the company will not reverse its decision to refrain from launching a Bitcoin ETF. The stance aligns with Vanguard’s cautious approach to cryptocurrency investments, emphasizing their focus on broader financial stability and traditional investment products rather than the highly volatile crypto market.

Incoming Vanguard CEO Won’t Reverse Decision Not to Launch Bitcoin ETF (Yahoo! Finance)

Wisconsin Invests in BlackRock’s Bitcoin ETF

The State of Wisconsin has invested nearly $100 million in BlackRock’s spot Bitcoin ETF, marking a significant move into cryptocurrency by a major state investment fund. The purchase underscores a growing trend of institutional investors embracing digital assets as a viable component of diversified investment portfolios.

The State of Wisconsin Purchased $163 Million in Bitcoin ETFs (Insider)

French Regulator Issues Warning Against Bybit

The French securities regulator has issued a warning against the crypto exchange Bybit. The regulator said the exchange was an unregistered crypto platform operating illegally in the country, offering digital asset services on behalf of third parties.

French regulator warns investors Bybit provided services ‘illegally’ (Cointelegraph)

Hong Kong ETFs See Outflows

On Monday, the Bitcoin and Ethereum ETFs based in Hong Kong experienced a notable outflow of $39 million. The figure represents a substantial increase compared to previous outflows, which typically hovered around the $6 million mark.

Hong Kong’s Shaky Crypto ETF Debuts Dent Global Hub Aspirations (Bloomberg)

Coinbase Experiences Outage

Coinbase recently experienced a three-hour system-wide outage. The exchange displayed the “503 Service Temporarily Unavailable” message, which commonly indicates that the servers are either undergoing maintenance or experiencing overload.

Coinbase Resumes Normal Operations Following Major Outage (Techopedia)

DTCC Completes Tokenization Pilot

The Depository Trust & Clearing Corporation (DTCC), in collaboration with Chainlink, JPMorgan, Franklin Templeton, and BNY Mellon, has completed a pilot program to accelerate fund tokenization. The initiative is part of a broader effort to integrate blockchain technology into traditional financial services, enhancing the efficiency and security of fund management.

DTCC completes blockchain pilot with Chainlink (ThePaypers)