Binance Monitors Hyperliquid Case as China Intensifies Crypto Money Laundering Crackdown
Chinese authorities have recently uncovered three cases of cryptocurrency money laundering involving Hyperliquid, a decentralized exchange (DEX) known for its high-leverage trading engine. The platform's liquidation mechanism was exploited to disguise illicit profits through coordinated losses on Hyperliquid and offsetting gains on centralized exchanges. Mirror Tang, founder of Web3 security firm Salus, noted the scheme's sophistication, highlighting the growing challenges regulators face in tracking cross-platform crypto transactions. This development underscores the need for enhanced compliance measures across both decentralized and centralized exchanges, including industry leaders like Binance, as global regulators tighten oversight of digital asset flows. The case also demonstrates how bad actors are innovating to exploit DeFi mechanisms, potentially prompting exchanges to revisit their risk management frameworks amid increasing scrutiny from financial watchdogs worldwide.
Chinese Authorities Investigate Hyperliquid in Money Laundering Crackdown
Chinese authorities have uncovered three cases of cryptocurrency money laundering involving Hyperliquid, a decentralized exchange (DEX) known for its high-leverage trading engine. The platform's liquidation mechanism was exploited to disguise illicit profits through coordinated losses on Hyperliquid and offsetting gains on centralized exchanges.
Mirror Tang, founder of Web3 security firm Salus, noted the scheme's resemblance to recent trades by James Tang, who faced multiple liquidations. Hyperliquid's trading volumes surged to 50% of Binance's derivatives market during the investigation period, drawing regulatory scrutiny.
The DEX retains 40X leverage capabilities, attracting high-profile traders despite risks. This crackdown highlights growing regulatory focus on cross-platform arbitrage strategies used for fund obfuscation.
Corporate Bitcoin Holdings Surge to $85 Billion as Institutional Adoption Accelerates
Corporate treasuries now hold 809,100 BTC, valued at approximately $85 billion, a dramatic increase from 312,200 BTC just one year ago. Binance Research reports nearly 100,000 BTC added since early April, driven by renewed institutional interest as Bitcoin approaches all-time highs.
"Bitcoin's resurgence has triggered corporate FOMO, with firms seeking balance sheet upside and inflation hedges," the report notes. While BTC remains the Core reserve asset, some diversification into ETH, SOL, and XRP is emerging. The trend reflects improving regulatory clarity and upcoming accounting changes in 2025.
The Trump administration's pro-crypto stance has further fueled adoption. During his 2024 campaign, President Trump pledged to establish the U.S. as the global crypto leader, backing favorable legislation and strategic initiatives to cement this position.
CZ Denies NY Times Allegations of Ties to Trump Meme Coin Promoter
Binance founder Changpeng "CZ" Zhao has publicly rebuked The New York Times for what he calls a baseless attempt to LINK him to Tianying "Sky" He, an attendee of a pro-Trump meme coin dinner in Washington D.C. The dispute centers on questions from the NY Times about potential personal or business connections between Zhao and He, including He's company LuckyFuture and his online interactions with CZ.
Zhao dismissed the inquiries as manufactured FUD, sharing the reporter's questions on his X account and mocking their premise. He clarified that his only connection to He was a single follow on social media, deriding the implication of deeper ties as desperate or paid smears. The NY Times noted He's X profile photo with Zhao and his use of the term "big cousin," which CZ dismissed as irrelevant.
Whale Transfer Sparks Volatility Fears for Ethena (ENA) Amid Bearish Metrics
A wallet linked to Mirana Ventures deposited 72.17 million ENA tokens—worth $21.45 million—into Binance, raising concerns of an imminent sell-off. The transfer follows a series of large inflows from the Ethena proxy, suggesting coordinated positioning. While such moves often signal bearish intent, the immediate price impact remains uncertain as markets assess the liquidity influx.
On-chain metrics paint a grim picture for Ethena. Over 56% of holders are underwater, with the 'In the Money' metric at -43.21%, reflecting eroding confidence. Whale activity declined by 0.03%, while large transactions dropped 7%, indicating waning institutional interest. Network growth stagnates at 0.89%, underscoring weak adoption.
Despite the bearish backdrop, technical indicators hint at potential upside. Spot taker-buy dominance and an oversold RSI suggest the token may be primed for a short-term rebound. Market participants now weigh whether the whale transfer will trigger a sell-off or if oversold conditions will prevail.
