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DOJ Charges Google Engineer Over $1.2M Polymarket Insider Trading Profits
The U.S. Department of Justice charged Google software engineer Michele Spagnuolo, known as “AlphaRaccoon” on Polymarket, with commodities fraud, wire fraud, and money laundering. Prosecutors allege he used confidential Google data to place prediction market bets, generating more than $1.2 million in profits from October to December 2025. DOJ said he wagered approximately $2.75 million on markets tied to nonpublic Google information.

Asia's weekly TOP10 crypto news: Korean Firms Compete for Crypto Exchange Stakes, HKMA Tightens Mainland Investor Checks, Trend Research Sells Altcoins at Huge Loss，Russia Proposes 1% Capital Cap on Banks’ Crypto Asset Exposure，Binance Set to Re-Enter Philippines. For the complete article and weekly curated reports, subscribe to our Substack:

1. Korean Financial, Securities & IT Firms Rush to Acquire Crypto Exchange Stakes link
As South Korea advances the institutionalization of the Korean won stablecoin, domestic financial, securities, bank card, IT and foreign institutions are stepping up efforts to acquire equity stakes in local cryptocurrency exchanges. Hana Bank has announced plans to purchase a 6.55% stake in Dunamu, the operator of Upbit, for approximately 665 million US dollars. Samsung Securities, Samsung SDS and Samsung Card intend to jointly acquire a 4% stake in Dunamu, while Hanwha Investment & Securities plans an additional 3.90% stake purchase. Separately, Mirae Asset Consulting has decided to acquire a 92.06% stake in Korbit for around 88.5 million US dollars, and Korea Investment Securities and OKX Ventures each plan to obtain roughly a 20% equity interest in Coinone.
2. South Korea Crypto Trading Volume Slumps to One-Tenth of KOSPI Turnover link
Following the crash of the digital asset market in October 2025 and the Korea Composite Stock Price Index (KOSPI) repeatedly hitting new all-time highs, trading activity in South Korea’s domestic cryptocurrency market dropped to one-tenth of that of the stock market. Data shows that in May this year (as of the 26th), the total cryptocurrency trading volume of South Korea’s five compliant exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) only accounted for 8% of the concurrent stock trading volume of the KOSPI. In December 2024, when Donald Trump’s election as US President triggered a crypto bull run, this proportion once surged to 323%.
3. China’s State Council Boosts Blockchain for Urban Governance & Digital Housing Transactions link
According to the circular issued by the State Council on printing and distributing the 15th Five-Year Plan for Urban Renewal, authorities will enhance urban governance capacity, advance the comprehensive digital transformation of cities, develop a basic platform for City Information Modeling (CIM), and build an intensive, unified, data-integrated and highly coordinated urban digital infrastructure. Authorities will improve the basic CIM database and standard system, and expand the application scenarios of “CIM+” in urban renewal. Unique codes will be assigned to housing buildings and municipal facilities, and a national basic information database for housing buildings and municipal facilities will be constructed. Blockchain technology will be leveraged to empower housing transactions and property right registration. A three-tier national, provincial and municipal platform system for urban operation, management and services will be refined to realize integrated online management of urban operations.
4. Supreme People’s Court to Deepen Research on Judging Rules for Virtual Currency Cases link
At the press conference themed “Kicking Off the 15th Five-Year Plan” held by the State Council Information Office, Liu Guixiang, Member of the Judicial Committee of the Supreme People’s Court at the Vice Ministerial level and Second-Class Grand Justice, stated that people’s courts will conduct in-depth research on judgment rules for new types of cases involving virtual currencies and cross-border finance, and formulate judicial interpretations on civil compensation related to insider trading and market manipulation as soon as possible, so as to safeguard the steady operation of the capital market and effectively protect the legitimate rights and interests of small and medium-sized investors.
5. HKMA Rolls Out Three New Supervision Rules for Mainland Investors, Retrospective Account Checks Back to Jan 2023 link
According to CLS.cn, in response to reports that some banks in Hong Kong require customers to sign declarations when opening investment accounts, the Hong Kong Monetary Authority (HKMA) issued a response today stating that the relevant regulatory requirements were issued to all authorized institutions on May 22. Documents provided by the HKMA show that registered institutions are required to implement three additional measures when opening and managing investment accounts for mainland investors: first, close investment accounts opened with suspicious or forged documents, and identify customer investment accounts opened with suspicious or forged documents including identity documents from January 2023 or any other period specified by the HKMA; second, close dormant zero-balance investment accounts, referring to investment accounts held by mainland investors that carry no asset balances as of May 22, 2026 and record no customer-initiated activities within the 12 months preceding the reference date; third, obtain written declarations from mainland investors upon opening new investment accounts to confirm that all funds supporting investment activities and relevant settlements stem from legal sources outside mainland China.
Relevant documents indicate that the newly added additional regulatory measures apply solely to investment accounts, including investment sub-accounts within integrated bank accounts, and exclude accounts with non-investment functions such as ordinary savings, current and time deposits, payment services, loans and credit cards. Meanwhile, these extra measures target individual customers and do not extend to corporate or institutional clients.
6. Central Bank of Russia Proposes 1% Capital Cap on Banks’ Crypto Asset Exposure link
The Central Bank of Russia plans to cap banks’ investment risks related to crypto assets at 1% of a single banking group’s capital. This restriction only applies to a bank’s own crypto asset positions, excluding crypto assets invested in or custodied by bank customers through the bank. For customers’ crypto assets, the Central Bank of Russia intends to categorize them separately under operational risk, which mainly covers risks such as hacker attacks and information security incidents, and plans to impose a 50% risk weight on customer positions. The Central Bank of Russia stated that these requirements are formulated mainly in light of the extreme price volatility of crypto assets and the risk of asset seizure.
7. Abu Dhabi Investment Firm Completes $30M Settlement via DDSC Stablecoin link
International Holding Company (IHC) of Abu Dhabi completed a $30 million transaction on ADI Chain using DDSC, a stablecoin backed by UAE dirhams. This transaction ranks among the largest single stablecoin transactions in the region. DDSC was jointly launched by IHC, First Abu Dhabi Bank and Sirius International Holding, with ADI Foundation supplying blockchain infrastructure support. The project is intended to facilitate compliant digital transactions, cross-border payments and trade settlements.
8. Binance Set to Re-Enter Philippines Market with Local Regulatory Licenses link
Binance has partnered with Philippine local firm BlockShoals Technologies to expand its footprint in the Philippine market. BlockShoals stated it has registered as a Crypto Asset Intermediary in compliance with the crypto asset service provider rules set by the Philippine SEC and will act as Binance’s local service provider. Both parties noted that they have maintained regulatory communications with the Philippine SEC regarding the partnership for over two years and secured an in-principle approval to enter the regulatory sandbox in November 2025.
9. Nine Enterprises Including Hitachi Complete Automated Inter-Corporate DCJPY Transaction Tests link
Hitachi, Ltd. announced that it has completed an inter-enterprise transaction test based on the Japanese yen tokenized deposit DCJPY together with nine companies including Decalete DCP, Fujitsu, Kao Group Customer Marketing and Tsurui Holdings. The test leveraged the Invoice Chain platform co-developed by Hitachi to link inter-enterprise order and delivery data with DCJPY settlement procedures, and automatically generated reconciliation documents for writing off accounts receivable, realizing automation covering order processing, payment settlement, account write-off and accounting procedures.
10. Trend Research Under Yi Lihua Liquidates All UNI & COMP Holdings, Suffering Over $40M Losses link
Trend Research, a secondary investment institution under Yi Lihua, transferred 2.705 million UNI tokens (approximately 8.71 million US dollars) and 114,000 COMP tokens (approximately 2.13 million US dollars) to Binance, which is suspected to be a full liquidation. The institution purchased 5.41 million UNI tokens at an average cost of about 9.5 US dollars and 228,700 COMP tokens at an average cost of about 49.3 US dollars during the market rebound last July. In May this year, it sold UNI at an average price of about 3.3 US dollars and COMP at an average price of about 19.4 US dollars, with an estimated total loss of around 40.29 million US dollars.
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Phantom Earns Over $20.6 Million Through Hyperliquid Builder Program
CoinGecko data shows Phantom has generated over $20.6 million in cumulative revenue as the largest builder on Hyperliquid, accounting for 31.8% of the top 10 builders’ total revenue. Based ranked second with $15.1 million, while MetaMask ranked fourth with $6.5 million despite charging the highest builder fee of 0.1% among the top 10.

Vietnam's Finance Ministry Proposes Allowing SMEs to Use Digital and Virtual Assets as Loan Collateral
According to Viet Nam News, Vietnam's Ministry of Finance has proposed allowing SMEs to use digital assets, virtual assets and intellectual property as collateral for bank loans, in a bid to improve financing access for private companies and tech startups.
The proposal has been included in a draft amendment to the Law on Support for SMEs and is currently open for public consultation. The draft would expand the range of acceptable collateral, allowing businesses to apply for loans using future-formed assets, property rights, digital assets, virtual assets and other lawful assets.

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JPMorgan CEO slams Clarity Act: Banks won't bow to Coinbase lobbying
On May 29, 2026, JPMorgan Chase CEO Jamie Dimon expressed dissatisfaction with the Clarity Act during an interview on Fox Business. He believes the act allows crypto platforms to effectively pay interest on deposits and stablecoins while doing nothing for AML and BSA, leaving it with almost no legal protections.
Dimon stated that the banking industry will not accept this approach, warning that such a system would eventually blow up. He stated that the banking industry will fight the bill to the end and firmly refuse to bow down to Coinbase and its CEO, who are actively pushing the bill, claiming that they are spending hundreds of millions of dollars on lobbying in Washington, and considering their claim of representing the entire industry to be full of shit.

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SpaceX's Bitcoin Bet Is Larger Than Most People Thought
On May 27, 2026, Bloomberg reported that SpaceX's latest regulatory filing (S-1) reveals the company currently holds 18,712 Bitcoin, with a total value reaching $1.3 billion.
SpaceX treats these Bitcoin holdings as a treasury reserve asset, similar to cash or bonds. Ahead of what is anticipated to be the world's largest IPO, SpaceX's sophisticated finance team likely views this as a long-term hedge against inflation or a strategic reserve for excess cash. Furthermore, the filing indicates that SpaceX has not sold any Bitcoin since the end of 2024.

$100M Crypto Trader Accused of Holding $30M Business Partner Captive for 17 Days Over Bitcoin Password
NBC News reported that New York authorities arrested crypto trader John Woeltz, estimated to be worth around $100 million, for allegedly kidnapping and torturing an Italian business partner worth about $30 million in an attempt to obtain access to the victim’s Bitcoin wallet. The victim escaped after 17 days and alerted police. Authorities said the parties had been business partners for years.

1. Sui Mainnet Suffers Severe Outages for Two Consecutive Days link
Sui officials stated that the mainnet has encountered a malfunction, on-chain activities may be suspended, and the core team is conducting an investigation and will release a post-mortem report on the incident. Previously on May 28, the Sui mainnet suffered a block production outage and transaction suspension due to a failure in the validator layer, which lasted for several hours before recovery. Data from Sui Status shows the Sui mainnet has experienced Major Outage incidents for two consecutive days, stemming from mainnet settlement issues. Block explorers indicate that no new blocks have been produced for over an hour.
Sui announced that the mainnet has resumed operation, and both the current and previous outages stemmed from interaction conflicts between the Address Balances feature and gas billing logic introduced in version 1.72. The temporary fix deployed earlier carried a known issue that could trigger outages with an extremely low probability.
Sui noted that due to problems arising during the epoch transition process, the Sui mainnet has temporarily stopped accepting user transactions. Validator nodes remain operational and continue generating system transactions, yet user transactions cannot be processed by the network for the time being. The Sui Core team is investigating the root cause and will release further updates at a later date.
2. Hyperliquid Launches Official Off-Chain Event Prediction Markets link
Hyperliquid announced that it now supports official prediction markets based on off-chain events. Such markets are published by automated news feed software run daily by validators, who will vote on the deployment and settlement of official prediction markets based on factors including clarity of rules, accuracy of outcomes and the subjective quality of markets.
3. Layer 2 Base Rolls Out Azul Upgrade on Mainnet link
Layer 2 network Base announced the launch of the Azul upgrade on its mainnet, introducing the Multiproof mechanism combining TEE and zero-knowledge proofs (ZK) to boost network decentralization and cut withdrawal confirmation times. Base stated that the new client architecture has reduced empty block volume by approximately 99% and supports peak loads of 5,000 TPS on multiple occasions. As of the end of May, Base’s TVL stood at around $4.4 billion.
4. Arbitrum Foundation Proposes $43.5 Million Funding for 2027 Operations link
The Arbitrum Foundation has submitted a new funding application to the Arbitrum DAO, requesting 16 million US dollars worth of stablecoins, 1,740 ETH and 230 million ARB tokens with a total value of approximately 43.5 million US dollars. The funds will cover the foundation’s operating expenses in 2027, including technical infrastructure, ecosystem development, marketing and governance support. The 230 million ARB tokens account for roughly 3.7% of the total supply, and the Arbitrum DAO generated around 23.49 million US dollars in revenue in 2025. The proposal is currently under governance discussion.
5. Polymarket Rolls Out Trader KYC to Mitigate Regulatory and Sanction Risks link
According to The Information, prediction market Polymarket is pushing traders to complete KYC identity verification to address regulatory, sanctions and potential legal risks. The report states that some users still take part in market transactions related to restricted regions via automated trading bots, creating grey access routes in areas such as Russia, while certain developers divert trading traffic through tools including Telegram.
In response to market reports claiming that prediction market Polymarket is mandating identity verification for traders amid sanctions and legal risks, Josh Stevens, a representative of Polymarket, refuted the claims as false. He explained that Polymarket is launching a new beta product accessible only to selected users, with KYC requirements applying exclusively to this testing phase. The existing Polymarket platform will not impose new KYC rules following this launch, and KYC will not be required to use the product once the beta testing concludes.
6. Ondo Finance Founder Nathan Allman Passes Away Unexpectedly; Ian De Bode Takes Over as CEO link
RWA project Ondo Finance released an announcement stating that its founder Nathan Allman has passed away unexpectedly. The announcement noted that Nathan Allman’s vision, modesty and execution have shaped Ondo’s development direction, and his philosophy of building a more open and inclusive financial system will be carried forward. Ondo also announced that Ian De Bode, who has served as President and been in charge of strategy and daily operations for more than two years, will take over as CEO.
7. Socket Exposes TrapDoor Supply Chain Attack Targeting npm, PyPI and Crates.io link
Socket’s research team published an article disclosing an active supply chain attack dubbed TrapDoor that steals cryptocurrency. The attack spans npm, PyPI and Crates.io, covering more than 34 malicious packages together with over 384 associated versions and artifacts, targeting developers working on cryptocurrency, DeFi, Solana, Sui, Move and AI projects. Socket stated that these malicious packages are capable of stealing developer private keys, crypto wallet data, SSH keys, cloud credentials, browser data, environment variables, API keys and other sensitive information. They execute malicious code via npm postinstall hooks, remote JavaScript triggered upon PyPI imports, and build.rs files on Crates.io.
8. Yuga Labs Restructures ApeCoin Organization, ApeCo Head Cam Steps Down link
Michael Figge, CEO of Yuga Labs, posted on X that the firm will roll out adjustments to ApeCoin. The overhaul aims to cut coordination costs between Yuga Labs and ApeCo (formerly the Ape Foundation) and reset the organizational framework.
Cam, the lead of ApeCo, will step down. The core technical and business development teams behind ApeChain will collaborate directly with Yuga Labs, while some ApeCo staff will exit the organization. The entire transition process is scheduled to wrap up on June 5.
9. Aave Labs Proposes Standardized Technical Asset Listing Framework link
Aave Labs has released an ARFC proposal proposing the adoption of a standardized technical asset listing framework applicable to new asset listings, continued listings and major parameter expansions on Aave V3, Aave V4 and Horizon. The framework aims to unify the technical requirements for assets listed on Aave, improve the consistency, transparency and reproducibility of asset review and monitoring processes in governance proposals, and establish a baseline for continuous monitoring. The framework covers requirements such as ERC20 compatibility, oracles, access control, minting and burning, pause and blacklist functions, upgradability, yield mechanisms, token architecture, cross-chain bridge risks, audit and security history, external dependencies and composability. Relevant technical findings shall be converted into clear governance and risk management outcomes, including lowering supply caps, borrowing caps and LTV ratios, prohibiting collateral usage, enhancing monitoring, requiring rectification by issuers, conducting regular updated assessments, or recommending delays to listing or expansions.
10. Vitalik Praises Privacy Protocol Interfold, Stating It Realizes His Long-Championed MACI Vision link
Vitalik Buterin, co-founder of Ethereum, wrote that more people ought to learn about the Interfold protocol. He pointed out that the protocol basically fulfills the vision he has advocated for nearly a decade for building based on the Minimal Anti-Collusion Infrastructure (MACI) concept and presents it in a more generalized form. Interfold is a privacy protocol optimized for scenarios such as voting and anonymous auctions. Its mechanism generates threshold encryption keys, allows users to submit ballots on-chain, and leverages zero-knowledge proofs (ZKPs) to verify eligibility.
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Kyle Samani: Hyperliquid Is Just Binance 2.0 Without a Marketing Team
Former Multicoin Capital co-founder Kyle Samani stated that Hyperliquid is just “Binance 2.0 without a marketing team.” He argued that during development, Hyperliquid made thousands of technical decisions that work well in a centralized environment but are fundamentally incompatible with a permissionless decentralized setting, leaving the project several steps behind. Samani also added that no legitimate U.S. company would be willing to partner with Hyperliquid today.

ZachXBT: $12.6M in Zama cUSDC Frozen After Circle Blacklisting
ZachXBT revealed that Circle may have blacklisted the contract address of privacy protocol Zama’s confidential USDC (cUSDC) on Ethereum around seven hours ago, freezing approximately $12.6 million in user funds. Further analysis showed the address had recently participated in an Overnight Finance governance vote on treasury allocation. Some users had previously accused the project team of conducting a rug pull.
ZachXBT also noted that one of the plaintiffs in a civil lawsuit against Overnight Finance is Patagon Management, an entity known for hostile DAO takeovers and attacks on protocol residual value. He suggested the plaintiff may have misrepresented the connection between the frozen address and the Zama contract to the court, while the Zama team appeared to have received no prior notice before the freeze was executed.

ZeroTier CEO: Attackers Are Already 'Harvesting Now, Decrypting Later' Crypto Network Traffic for Quantum Era
Andrew Gault, CEO of network firm ZeroTier, warned the Bitcoin industry's focus on quantum threats may be misguided. He stated the greatest risk isn't compromised wallet keys, but encrypted authentication data currently transmitted between institutions and exchanges. Gault noted attackers could adopt a "store now, decrypt later" strategy to hoard network traffic and digital signatures, making inter-institutional data transmission a severe challenge for the future financial system.

According to SoSoValue data, on May 29 (ET), U.S. spot Bitcoin ETFs recorded a total net outflow of $125 million, marking the 10th consecutive day of net outflows. U.S. spot Ethereum ETFs saw a total net outflow of $17.91 million, extending their outflow streak to 14 consecutive days.

Lummis Says This Congress May Be the Last Crypto Legislation Window Before 2030
U.S. Senator Cynthia Lummis said the next window for digital asset legislation after this Congress may not come until 2030 if lawmakers fail to act now. She argued that, without new legislation, developers will remain without legal protections while law enforcement will lack the tools needed to hold bad actors accountable. Lummis said the CLARITY Act is designed to address both issues.

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Michael Saylor: Keep Your Kidney, but Hold On to Your Bitcoin
Strategy founder Michael Saylor said in a May 21 interview with When Shift Happens that Bitcoin is a stronger form of capital preservation than traditional assets.
When liquidity is needed, he said people should first sell assets with shorter "half-lives," rather than Bitcoin that could benefit future generations. Saylor compared selling Bitcoin to buy a Ferrari to an ancestor giving up generational wealth for a fancy carriage. Responding to a viral meme, he added: "You should keep your kidney, but more importantly, hold on to your Bitcoin."

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Vitalik Buterin: The crypto ecosystem must not go down the path of OpenAI（ARCHIVE FOOTAGE ）
On July 3, 2025, Ethereum co-founder Vitalik Buterin stated in an EthCC speech video that the crypto industry must not repeat the mistakes of OpenAI, which first gave up openness for safety, and then sacrificed safety for rapid growth.
He believes that many projects in Web1, Web2, and the crypto space eventually move towards corporatization because they become driven by financial incentives and social connections once they form entities. Vitalik Buterin stated that the ecosystem should establish more diverse funding and reward models, ensuring that core principles like open source, privacy, and censorship resistance are strictly taken into account alongside commercial success.

FBI Seizes Over $8B in Crypto, Largest Forfeiture in U.S. History
According to Fox News, the FBI has seized more than $8 billion worth of cryptocurrency and arrested nearly 300 suspects as part of a global crackdown on scam compounds operating across Myanmar, Cambodia, Thailand and the UAE. The bureau said the seizure marks the largest cryptocurrency forfeiture in U.S. government history. The operation also helped free nearly 2,000 people allegedly forced to work in scam centers, while Starlink disabled more than 7,000 terminals in Myanmar allegedly linked to fraud activities.

Jamie Dimon: Banks Will Oppose the Current Version of the CLARITY Act, Criticizes Brian Armstrong’s Lobbying Efforts
JPMorgan CEO Jamie Dimon said banks plan to oppose the CLARITY Act in its current form, arguing that it would allow crypto firms to offer stablecoin-based rewards without the same regulatory safeguards required of banks and does not adequately address AML and Bank Secrecy Act requirements. Dimon also criticized Coinbase CEO Brian Armstrong for lobbying in support of the legislation.

Coinbase Opens Access to Global Crypto Options and Perpetual Futures Markets for U.S. Institutions
Coinbase announced that U.S. institutional clients can now access global crypto options and perpetual futures liquidity through Coinbase Financial Markets (CFM), its CFTC-regulated futures commission merchant. Through a single regulated platform, clients can access international venues including Deribit, eliminating the need to trade through offshore entities.

DWF Ventures Invested $41.92 Million in 47 Seed and Pre-Seed Projects in 2025
DWF Labs Managing Partner Andrei Grachev said DWF Ventures participated in 47 Seed and Pre-Seed investments in 2025, deploying a total of $41.92 million. He said he only realized the scale of the firm’s early-stage investment activity over the past year after reviewing the investment data.