The Digest contains the following:

• Reuters charges Binance with Facilitating Money Laundering $2.4 billion – the SEC investigates the exchange.

• Falles below $30k following May’s $120 billion loss in market cap

• Gemini is sued by IRA Financial for $36 Million in Bitcoin theft.

• New York approves bill that will limit crypto mining using fossil fuels

• Indonesian crypto exchange Pintu raises $113 million in race to become “the Coinbase (NASDAQ:) of Southeast Asia”.

Reuters Accuses Binance of Facilitating Money Laundering of $2.4 Billion – the SEC Investigates the Exchange

Global news agency Reuters has accused the world’s largest crypto exchange, Binance, of becoming a hub for hackers, fraudsters and drug traffickers. Reuters asserts that Binance’s minimal requirements to use it have made it an appealing platform for laundering money.

The investigation revealed that Binance was used as a channel for laundering at least $2.35 trillion in illicit funds, between 2017-2021. Reuters claims that Lazarus used Binance to process a portion the $5.4million stolen from Eterbase during hack.

Reuters reported that Binance was used to process a part of the $622million stolen from Ronin in March 2022. Hydra, a Russian darknet market, also used Binance for payments totalling $780 millions.

The Securities and Exchange Commission (SEC), in an investigation unrelated to this revelation, is looking into whether Binance Holdings violated securities regulations when it launched its BNB token (ICO) as an initial coin offerings (ICO).

Flipsider:

• Binance has refuted Reuters‘ claim, stating it has identified and frozen more than $5 million connected to the Ronin sidechain hack.

What You Need to Care About

With accusations already levied towards the exchange in regards to “bad business etiquette,” the Reuters report serves to mount regulatory pressure on Binance, which already faces multiple investigations by regulators.

Bitcoin falls below $30k following a $120 Billion market cap loss in May

Investors had anticipated the beginning of a bull market after breaking the 9-week bearish streak, which saw 7% pumping. Just a few days after reaching $31,700 the Bitcoin price has fallen below $30,000.

Losing 6% over the last 24 hours, the price of Bitcoin plunged to as low as $29,300, fully erasing the week’s gains. Bitcoin currently trades at $29,000.

Here is the 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap

In the 24 hour period, there has been a notable dip. The liquidation was approximately $143.08m, with 84% of it coming from long positions. Bitcoin has been trading in the sub-50k range since 2022, and this loss adds to bearish pressure.

Bitcoin’s market capital fell by $120 billion during May. Its price plummeted from $37720 to $31,200, closing the month with a loss of $37,720. Bitcoin opened May with an estimated market capital of $732 billion but ended the month at $605 billion.

Flipsider:

• Despite the current bearish trend in Bitcoin, many investors continue to add to their Bitcoin portfolios.

• CoinShares reports that the net inflows to publicly traded Bitcoin products reached $126 million last Wednesday, according to CoinShares.

Gemini Sued By IRA Financial Over $36 Million Bitcoin and Ethereum Theft

IRA Financial Trust, a platform for managing self-directed retirement accounts and pension plans, has launched a lawsuit against the Gemini Trust for allegedly failing to secure the IRA’s crypto assets.

Hackers stole $15 million worth of Ethereum and $21 million in Bitcoin from retirement accounts at IRA Financial Trust that were located on the Gemini platform in February.

IRA blames Gemini for the hack, stating that the exchange “failed to freeze accounts within a sufficient time frame immediately following the incident.” IRA alleges that Gemini’s delay in freezing the account led to the theft reaching $36 million.

The lawsuit further outlines that the Gemini crypto exchange platform’s API was designed with a point of failure, demonstrating a lack of transparency with its cyber security procedures.

Flipsider:

• IRA indicated that it plans to use the money from the lawsuit in order to compensate the customers who were affected by the hack.

Why you should care

Gemini, which denies the suit, claims that it has the most stringent security measures in the sector.

New York adopts a law to restrict crypto mining using fossil fuels

New York passed legislation that prohibits crypto mining using fossil fuel-generated electricity. This bill marks the United States’ first such legislation.

This legislation will impose a moratorium for two years on the issuance and renewal of air permits for electric generators that generate fossil fuel-generated electricity for crypto mining. The measure marks part of the state’s efforts to reduce statewide greenhouse gas emissions by 85% by 2050.

If signed by Governor Kathy Hochul into law, the NY State Assembly Bill (A7389C) would prohibit Proof of Work (PoW), mining for two years. The governor, however, has stated that she is still deciding whether or not to sign the bill.

She said that it was necessary to balance the protection of the environment, which is the primary purpose of the bill, with the preservation and expansion of jobs from mining.

Flipsider:

• This bill doesn’t disclose whether changes in bitcoin mining could increase renewable energy demand. It also does not explain how they can lower emissions. Galaxy Digital’s Amanda Fabiano has expressed concern that other states could follow this “bad example”.

Why you should care

With the intention to preserve the environment in New York City, the bill was approved. New York is quickly becoming one of America’s most popular mining areas.

Indonesian Crypto Exchange Pintu Raises $113 Million in Race to Become “the Coinbase of Southeast Asia”

Today, Indonesian cryptocurrency exchange and wallet ‘Pintu’ announced that it has raised $113 million in a Series B funding round to expand its services to the burgeoning local market. Pintu has raised $41million in Series A, A+ and C rounds by 2021.

Pintu plans to use the funds to expand its product range and Pintu Academy, its education arm. Pintu offers over 65 cryptocurrency assets. This includes a native PTU token.

Pintu will be able to increase its operation by listing more tokens and increasing blockchain compatibility. It also allows for increased staff size and the creation of new products.

Pintu’s latest funding round was backed by Lightspeed, Pantera Capital, Northstar Group, and Intudo Ventures. Eddy Chan, a founding partner at Intudo, believes Pintu will become “the Coinbase of Southeast Asia.”

Flipsider:

• The Indonesian government introduced a crypto income tax in April of 0.1% and a crypto purchase VAT.

Why you should care

Pintu is a new crypto market in Indonesia. This could make it a catalyst to encourage crypto adoption.

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