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Indian Supreme Court Backs Crypto Regulation Over Ban
The post Indian Supreme Court Backs Crypto Regulation Over Ban appeared first on Coinpedia Fintech News The Supreme Court of India has made it clear that cryptocurrency should be regulated, not banned. The Court pointed out that profits from Bitcoin are already taxed at 30%, which shows that crypto is legally recognized to some extent. If it’s being taxed, it makes sense to regulate it properly. This statement marks a major step toward clearer crypto laws in India, signaling a shift toward acceptance and proper oversight of digital assets.

coinpedia 2025-05-20 09:16
SEC delays decision on Solana ETF applications citing market manipulation concerns
The U.S. Securities and Exchange Commission has delayed its decision on four proposed Solana exchange-traded funds, including filings from Bitwise, 21Shares, VanEck, and Canary. The announcement, shared on a May 19 filing , indicates that the agency will “institute proceedings” to assess whether the ETF proposals meet regulatory standards. This procedural move allows the SEC to extend the review period and open a public comment window. The agency stressed that the institution of proceedings “does not indicate that the Commission has reached any conclusions” on the filings. Instead, the SEC says it needs more time to examine the proposals under the requirements of the Securities Exchange Act, particularly provisions related to fraud prevention and investor protection. Among the delayed filings is the Bitwise Solana ( SOL ) ETF, which was first submitted in January through Cboe’s BZX Exchange. Bitwise’s fund would hold SOL directly, with prices tracked against the CME CF Solana-Dollar Reference Rate. Similarly, 21Shares, already known for its spot Bitcoin ( BTC ) and Ethereum ( ETH ) ETFs, filed its own Solana proposal earlier this year. You might also like: 72 crypto ETFs are awaiting SEC approval, from altcoins to memecoins Despite growing demand, no altcoin ETFs linked to Solana have been authorized in the U.S. to date. The SEC’s cautious approach to growing crypto-based investment products, particularly for assets other than Bitcoin and Ethereum, is reflected in the delays. The SEC is assessing whether the proposals comply with Exchange Act Section 6(b)(5), which requires that listed products be made to “protect investors and the public interest” and “prevent fraudulent and manipulative acts and practices,” according to the filing. The delay also comes amid a wider regulatory bottleneck for digital asset ETFs. Several filings for additional cryptocurrency ETFs, including those for Dogecoin ( DOGE ) and XRP ( XRP ), are still being examined. James Seyffart and Eric Balchunas, Bloomberg ETF analysts, remain hopeful. They estimate a 90% chance of approval for Solana and Litecoin ETFs by late 2025, citing favorable commodity classifications and rising institutional demand. But the future is still unclear. Investors may be left in limbo if the SEC’s request for public input causes the timeline to be further extended. Read more: Crypto languished in ‘SEC limbo’ for years: Paul Atkins reaffirms crypto commitments

crypto.news 2025-05-20 08:53
GENIUS Stablecoin Bill Passes to Next Stage of Voting
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, passed in a 66-32 Senate vote on May 20. “The motion to invoke cloture on the motion to proceed to the consideration of the GENIUS Act has passed,” reported Fox’s Eleanor Terrett. She added that more than 15 Democrats flipped their votes from no to yes, but Senate Minority Leader Chuck Schumer voted no. The passage has cleared a key procedural hurdle after Democratic senators initially blocked the bill earlier in May. This vote to invoke cloture, a procedural motion that limits debate on a matter and requires a super-majority vote, now sets up the bill for floor debate. BREAKING: GENIUS BILL PASSES THROUGH CLOTURE VOTE WITH 60 VOTES pic.twitter.com/ZDmZHe3qh4 — Dennis Porter (@Dennis_Porter_) May 20, 2025 Stablecoin Regulation Moves Forward The GENIUS Act was introduced by Senator Bill Hagerty in February with the goal of regulating the $248 billion stablecoin market. The legislation would require stablecoins to be fully backed, undergo regular security audits, and receive approval from federal or state regulators. It restricts issuance to licensed entities and imposes limitations on algorithmic stablecoins and those without full backing. “This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century,” said Senator Hagerty on X. He added that it will ensure US dollar dominance and protect customers. He also predicted that “the demand for US Treasuries will balloon to the tune of more than $1 trillion, and innovation in the digital asset space will thrive in the United States going forward.” “Digital assets are the future, and now we’re one step closer to ensuring America leads the way,” commented Senator Cynthia Lummis. Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century. The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will… — Senator Bill Hagerty (@SenatorHagerty) May 20, 2025 Democratic senators had previously withdrawn support, citing concerns about potential conflicts with President Trump’s crypto investments and anti-money laundering concerns. However, the legislation was subsequently revised to secure enough bipartisan support to move forward. It now heads to the floor where the Senate will engage in a formal debate on the bill, discuss its merits, propose amendments, and express concerns. Urgency Urged by Lummis Senator Lummis indicated she hopes to complete this process by May 26 (Memorial Day), suggesting an accelerated timeline for the remaining procedural steps. The stablecoin market is currently dominated by Tether, which has a commanding 61% market share with $151 billion USDT in circulation. Its closes rival, Circle, has a 24% market share with just over $60 billion USDC issued. In early April, related legislation, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, was passed by the House Financial Services Committee. The post GENIUS Stablecoin Bill Passes to Next Stage of Voting appeared first on CryptoPotato .

Crypto Potato 2025-05-20 08:09
SEC’s Peirce States Many NFTs Don’t Qualify as Securities, Including Creator-Compensating Tokens
Commissioner Hester Peirce, head of the newly established SEC Crypto Task Force, shared her perspective on the regulatory status of non-fungible tokens (NFTs) at the SEC Speaks event on Monday. She said that, while many NFTs do not qualify as securities, certain NFTs designed to compensate creators over time could also fall outside the scope of federal securities laws. The SEC’s Crypto Task Force , led by Peirce since Jan. 2025, was created as part of the agency’s broader effort to establish clearer regulations in the rapidly growing and often confusing cryptocurrency sector. Under her leadership, the task force has been actively working on providing more defined regulatory guidance. This includes guidance for crypto assets, such as NFTs and stablecoins. ICYMI: HEAD OF CRYPTO TASK FORCE HESTER PEIRCE SHARES VIEW ON NFTS – "MANY NON-FUNGIBLE TOKENS (“NFTS”) ALSO ARE NOT SECURITIES, INCLUDING NFTS DESIGNED TO COMPENSATE THEIR CREATORS OVER TIME" pic.twitter.com/5ETIaIQRxM — DEGEN NEWS (@DegenerateNews) May 19, 2025 Hester Peirce Clarifies That Many NFTs, Including Creator Royalties, Are Not Securities Peirce, known as “Crypto Mom” for her vocal dissents on SEC enforcement actions against crypto firms, further clarified her position. She stated that many NFTs do not offer the economic rights typical of securities. These include those designed to compensate creators with royalties over time. These NFTs are powered by smart contracts. They allow artists to earn a portion of the resale price every time the NFT is sold. This works similarly to how streaming platforms pay royalties to creators. Peirce argued that these “creator royalties” do not involve ownership rights in a business. Additionally, they do not promise profits typically associated with securities. While Peirce has classified many NFTs as non-securities, the SEC itself has not yet provided its own official clarification on the matter, leaving ambiguity in how these digital assets should be regulated. This distinction shows her position as an advocate for clearer and more specific guidance from the agency. Peirce Champions for Understanding the ‘Economic Realities’ of Crypto to Shape Future Regulations Since her appointment to lead the SEC’s Crypto Task Force, Peirce has made significant progress in engaging with the industry. The task force has hosted multiple roundtables and received numerous public submissions. Additionally, it has worked closely with lawmakers to develop potential legislation for crypto’s complex regulatory landscape. Her leadership marks a shift from the approach of former chairman Gary Gensler, who was known for his skepticism of crypto. Peirce’s comments on NFTs focus on those that do not involve security-like rights. However, she also acknowledged the challenges posed by other digital assets. These assets might blur the lines between securities and non-securities, she noted. Further, she pointed to the importance of understanding the “economic realities” of these assets, rather than simply their form, to determine their regulatory classification. Looking ahead, Peirce stressed the need for clearer rules to facilitate the growth of the crypto market while ensuring investor protection. The post SEC’s Peirce States Many NFTs Don’t Qualify as Securities, Including Creator-Compensating Tokens appeared first on Cryptonews .

cryptonews 2025-05-20 07:51
U.S. Senate advances GENIUS Act in major step toward stablecoin regulation
The U.S. Senate voted on Monday, May 19, to move forward with the GENIUS Act, a landmark bill that would create a regulatory framework for stablecoins. According to the results published on the Senate’s website, the bill passed by a 66-32 vote, meaning it will move to the next stage. The bipartisan vote cleared the cloture hurdle, a procedural move that allows the bill to advance to full debate and potential amendments on the Senate floor. The bill, introduced by Sen. Bill Hagerty (R-TN), would require stablecoin issuers to hold full reserves in dollars or highly liquid assets, submit to regular audits, and follow stricter guidelines if issuing more than $50 billion worth of tokens. It also includes oversight for foreign issuers, aiming to limit financial risk and prevent misuse. Just two weeks ago, on May 8, a similar vote failed 48-49 after several Democrats raised red flags. Their concerns included weak protections for consumers, a lack of accountability for corporate issuers, and the bill’s exclusion of former President Donald Trump, a known crypto supporter, from ethics rules. Trump is also tied to World Liberty Financial, a group that recently launched a dollar-pegged stablecoin. You might also like: What happens on day one after the GENIUS Act passes? | Opinion But the political tide turned after behind-the-scenes negotiations, as reported by Punchbowl News. Some Democrats secured concessions related to consumer protections, big tech ethics, and conflicts of interest. One provision ensures that ethics rules apply to “regular and special government employees, including Elon Musk.” However, critics note that Trump remains exempt from these standards, raising continued opposition from figures like Sen. Elizabeth Warren (D-MA), who said the bill is “worse than no bill at all.” Several Democrats who initially opposed the GENIUS Act, including Sens. Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-PA), Angela Alsobrooks (D-MD), and Kirsten Gillibrand (D-NY), reversed course and voted in favor Monday night. The bill passed the Senate Banking Committee on Mar. 13 with bipartisan support. Though the most recent version no longer has Democratic sponsors, it has gained traction with both parties. If passed, the law would create one of the clearest federal frameworks yet for how stablecoins can be issued and regulated in the U.S. A final vote on the GENIUS Act could happen later this week. Read more: 90% of financial institutions now use stablecoins: report

crypto.news 2025-05-20 07:26
XRP Futures Go Live on CME: Hidden Road Clears First Block Trade
The post XRP Futures Go Live on CME: Hidden Road Clears First Block Trade appeared first on Coinpedia Fintech News XRP just hit a milestone—regulated futures are now live on the CME, one of the world’s largest exchanges. This is the first regulated XRP futures contract in the U.S and could be a game-changer for XRP’s price, boosting the chances of an XRP ETF approval in the near future. A Win for Institutions? The regulated futures for XRP and Micro XRP will allow traders to bet on XRP’s price without owning it. CME already offers futures for Bitcoin, Ethereum, and Solana, plus options for Bitcoin and Ethereum. CEO Brad Garlinghouse commented on this development, calling it a “key institutional milestone for XRP”. He added that as soon as CME trading for XRP futures began, the first large trade (block trade) was successfully processed by Hidden Road, a financial firm that acts as a clearing partner. The launch of regulated XRP Futures on @CMEGroup marks a key institutional milestone for XRP…and very excited to report that Hidden Road cleared the first block trade on CME at the opening! https://t.co/Njj8AUSY5K — Brad Garlinghouse (@bgarlinghouse) May 19, 2025 The futures reached over $15.6 million in trading volume by 9:20 PM UTC. CME saw 120 standard contracts trade at around $2.40 each, totaling about $14.3 million (each contract equals 50,000 XRP). Besides, 206 micro contracts (2,500 XRP each) added $1.2 million in volume. CME Group’s Giovanni Vicioso explained that the rising interest in XRP and its ledger (XRPL) from both institutions and retail traders has driven the launch of new futures contracts. These contracts offer investors efficient tools to support their trading and risk management strategies. Could an ETF Be Next? Nate Geraci, President of ETF Store , said that since CME-traded XRP futures are now live, spot XRP ETFs are just a matter of time and could arrive soon. Bitcoin price surged when Bitcoin launched on the CME futures market but quickly crashed. A similar reaction was expected for XRP, an initial price spike followed by a correction. However, XRP has remained muted to the announcement until now. Nevertheless, XRP bulls are optimistic over the new futures trading that could bring in institutional money, boost volume, and price stability. XRP is currently trading around $2.38, with bulls eyeing a return to $3, a level not seen since 2018. However, analyst Ali Martinez warned that XRP could return to $2 if it loses the critical $2.30 support level. It is still facing pressure from its unsettled lawsuit that is yet to be finalised. Any positive developments in the case could improve the chances of an XRP ETF approval shortly.

coinpedia 2025-05-20 07:25
Senate Votes 66-32 to Advance GENIUS Act, Marking Progress in Stablecoin Regulation
The Senate made big progress on stablecoin regulation Monday, advancing the GENIUS Act with a bipartisan vote of 66-32. This bill, which would regulate stablecoins for the first time at the federal level, marks a key step toward establishing comprehensive oversight for digital currencies pegged to fiat currencies, like the US dollar. The vote to advance the bill came after a week of intense negotiations. Sixteen Senate Democrats joined Republicans in support of the bill, overcoming a previous deadlock that had stalled the legislation two weeks ago. Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century. The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will… — Senator Bill Hagerty (@SenatorHagerty) May 20, 2025 Cloture Vote on GENIUS Act Sets Stage for Stablecoin Regulation The critical procedural vote, known as cloture, was necessary to move the bill forward. However, a final vote on passage is not expected until after Memorial Day, 26 May, 2025. The GENIUS Act is designed to create the first regulatory framework for stablecoin issuers, addressing issues of consumer protection, financial stability, and transparency. While the bill is expected to provide clarity for issuers, it also includes new provisions on ethics standards for tech company leaders, which could impact high-profile figures like Elon Musk and David Sacks. These changes helped to sway Democratic support after earlier resistance over national security and anti-money laundering concerns. The Senate voted 66-32 to advance the GENIUS Act, which would regulate stablecoins for the first time at the federal level. A total of 16 Democrats voted to invoke cloture on the motion to proceed, a critical first step. A final passage vote isn't likely until after Memorial Day — Brendan Pedersen (@BrendanPedersen) May 20, 2025 Key Senators Broker Deal on Amendments to GENIUS Act, Swaying Democratic Support Key negotiators, including Senators Bill Hagerty, Cynthia Lummis, Mark Warner, Kirsten Gillibrand, Angela Alsobrooks, and Ruben Gallego, reached an agreement on amendments to the bill that added safeguards for consumers and restricted tech companies from issuing stablecoins. The GENIUS Act is designed to create the first regulatory framework for stablecoin issuers. It aims to address issues of consumer protection, financial stability, and transparency. This amendment has helped unlock support from Democrats who initially blocked the bill. According to sources, the amendment addresses some of their concerns. However, Democratic leaders have committed to backing the bill, even if it fails. Despite bipartisan backing for the bill, some Republicans, including Senators Rand Paul and Jerry Moran, voted against advancing the legislation. GENIUS Act Earlier Faced GOP Resistance Over National Security and Anti-Money Laundering Provisions The bill’s journey has been complicated by previous opposition. Some Republicans, including Paul and Josh Hawley, have called for more robust provisions on national security and anti-money laundering measures. Senate Majority Leader John Thune criticized the delay. He pointed out that the underlying bill had not changed since it was first blocked. The GENIUS Act includes provisions to prevent conflicts of interest among public officials. One clause specifically prohibits any member of Congress or senior executive branch official from issuing a payment stablecoin product while in office. However, the bill does not restrict crypto ventures by private citizens. This includes ventures involving the Trump family, which has raised concerns among some Democrats. While the road to final passage remains uncertain, the bill’s advancement signals growing momentum for stablecoin regulation in the US. The GENIUS Act’s introduction could pave the way for clearer rules governing the growing crypto industry, particularly for stablecoin issuers, who have long operated in regulatory uncertainty. The legislation’s next phase will involve final negotiations and potential adjustments before the Senate takes up the matter again after the Memorial Day break. The post Senate Votes 66-32 to Advance GENIUS Act, Marking Progress in Stablecoin Regulation appeared first on Cryptonews .

cryptonews 2025-05-20 07:20
Breaking: U.S. Senate Moves GENIUS Act Forward with 66-32 Vote
The post Breaking: U.S. Senate Moves GENIUS Act Forward with 66-32 Vote appeared first on Coinpedia Fintech News The U.S. Senate has passed a motion to move forward with the GENIUS Act. The motion to invoke cloture — which allows the Senate to proceed with debating the bill — was approved with a 66-32 vote. Interestingly, more than 15 Democratic senators, including Catherine Cortez Masto, Adam Schiff, Mark Warner, and Ruben Gallego, changed their earlier ‘no’ votes to ‘yes.’ However, Senate Minority Leader Chuck Schumer voted against the motion. Senator Josh Hawley was absent during the vote. However, this vote does not mean the GENIUS Act has become law. It simply allows the Senate to begin discussing, debating, and potentially amending the bill before a final vote. Why This Matters for Crypto Investors The GENIUS Act includes regulations for stablecoins — digital currencies tied to traditional assets like the U.S. dollar. Many in the crypto community see this as a positive step because it introduces clear rules, ensuring stablecoin issuers hold proper reserves like U.S. treasury bonds. It also demands more transparency about how these stablecoins are backed. JUST IN: Motion to invoke cloture on the motion to proceed to the consideration of the GENIUS Act has PASSED. 15+ Dems flipped their votes from no to yes including @CortezMasto , @SenAdamSchiff , @MarkWarner , @SenRubenGallego , @SenatorWarnock and others. Senate Minority leader… — Eleanor Terrett (@EleanorTerrett) May 20, 2025 Experts say this could strengthen trust in the crypto market and protect users from risks seen in the past when some stablecoin companies lacked proper financial backing. Concerns Around Stablecoins and Politics There’s ongoing debate about private tech companies like Meta or Square issuing their own stablecoins. Some see it as risky without strict regulations. Another concern is about political leaders, including President Trump, having financial interests in crypto-related projects, raising questions about fairness and possible conflicts of interest. While having government figures support crypto might sound positive, experts warn it could lead to future problems if decisions appear to benefit insiders. As reported by Eleanor Terrett, Josh Vlasto, spokesperson for CIFonX, said, “We congratulate the Senate on today’s vote. This action, and eventually passage of a stablecoin bill, clears the path for Congress to act on the mandate of voters to pass market structure legislation which creates clear rules of the road for digital assets.”

coinpedia 2025-05-20 04:52
SEC Chair Unleases Plan to Merge Crypto and Securities Under One Roof
A sweeping regulatory revolution is underway as the SEC unveils bold plans to unify crypto and securities oversight, slashing red tape and embracing market innovation. SEC Chair Declares New Crypto Era With Push for Unified Market Rules U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins, addressing the SEC Speaks conference on May 19, delivered

Bitcoin.com 2025-05-20 04:30
Coinbase Confirms DOJ Investigation Following Major Security Incident
The US Department of Justice (DOJ) has initiated an investigation into a significant security breach at Coinbase, the largest US-based cryptocurrency exchange. According to sources familiar with the matter cited by Bloomberg, the DOJ’s criminal division in Washington is examining the circumstances surrounding the breach, which has raised serious concerns about cybersecurity within the crypto sector. Coinbase Collaborates With DOJ Amid Major Data Breach Coinbase disclosed that the breach involved criminal actors bribing employees and contractors in India to gain access to sensitive client data. Paul Grewal, Chief Legal Officer of Coinbase, stated: We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement’s pursuit of criminal charges against these bad actors. Related Reading: Dogecoin On The Edge: Major Breakout Or Breakdown Imminent? Importantly, the exchange’s CLO clarified that while Coinbase itself is not under investigation, the DOJ is focused on the criminals involved in the breach. The incident first came to light when Coinbase received an email from an unidentified threat actor on May 11, claiming to possess information about certain customer accounts alongside internal documents. The company anticipates losses ranging from $180 million to $400 million due to the cyberattack. $20 Million Reward Fund After Rejecting Ransom While the attackers managed to steal some data, including names, addresses, and email addresses, the exchange confirmed that login credentials and passwords were not compromised. In a statement on May 15, Coinbase reassured its users via social media platform X (formerly Twitter) that it would not succumb to the attackers’ demands. The criminals had requested a ransom of $20 million. Related Reading: Pundit Says XRP Price Will Stabilize At $1,000 And Become ‘Very Expensive’ Instead of paying the ransom, Coinbase announced the establishment of a $20 million reward fund aimed at encouraging information leading to the arrest and conviction of those responsible for the attack. At the close of trading on Monday, the company’s stock (COIN) was trading at $263. Featured image from DALL-E, chart from TradingView.com

NewsBTC 2025-05-20 01:47
Roman Storm’s Defense Team Accuses U.S. Government Of Withholding Key Exculpatory Evidence
The defense team of Tornado Cash developer, Roman Storm, is accusing prosecutors from the U.S. federal government of withholding key evidence that could see the crypto founder set free in a new letter to U.S. District Judge Katherine Polk Failla on Friday. Exculpatory Evidence Discovered, Lawyers for Roman Storm Say According to Storm’s counsel , the government has “possessed exculpatory materials” regarding evidence pertinent to the developer’s criminal trial since August 2023. NEW: Tornado Cash developer Roman Storm's attorneys moved to reconsider case dismissal, alleging prosecutors hid exculpatory 2023 FinCEN communications suggesting non-custodial cryptocurrency mixers aren't "money transmitting businesses." pic.twitter.com/9LmpyQtkIh — Bitcoin News (@BitcoinNewsCom) May 19, 2025 The defense lawyers claim that the federal prosecutors’ view of Tornado Cash as a “money-transmitting business” goes against their August 2023 statement where FinCEN officials claimed that fellow crypto mixer, Samourai Wallet, does not count as a money transmitter given its non-custodial nature. Given that Tornado Cash is also non-custodial, Storm’s team argues that the government is going against its own stance by indicting the crypto developer . “The disclosures in the Samourai case reveal that the government, at the very least, played fast and loose and, at worst, affirmatively misled this court,” the letter reads. U.S. Prosecutors Defend Their Stance Meanwhile, prosecutors are pushing back on the defense’s claims after Storm’s team expressed “concern about the government’s belated disclosures in the Samourai case” in a May 8 letter. “The Government disclosed all known substantive communications between the prosecution team and FinCEN regarding Samourai Wallet months in advance of pretrial motions and trial,” U.S. prosecutors said in a recent filing. “Indeed, the defendants will have seven months to make use of the information before trial,” they added. “Nothing more is warranted.” U.S. Sees Changing Crypto Regulations The controversial Tornado Cash case comes amid shifting crypto regulations in the United States as President Donald Trump relaxes rulemaking on the blockchain sector . On April 7, the Deputy Attorney General’s Office released a memorandum stating it would, in part, “no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations.” The post Roman Storm’s Defense Team Accuses U.S. Government Of Withholding Key Exculpatory Evidence appeared first on Cryptonews .

cryptonews 2025-05-20 01:40
Cardano Audit Probes $600M ADA Gap – Was Treasury Looted?
Key Takeaways: Artist Masato Alexander claims that a 2021 hard fork allowed Cardano’s team to move 318M ADA from presale wallets to reserves. Intersect confirms it received only $7M, far short of the $619M in question. The controversy rekindles old doubts about Cardano’s early token distribution and governance mechanisms. The Cardano Foundation is preparing to release an audit of its treasury holdings after new allegations surfaced accusing founder Charles Hoskinson of misappropriating over $600 million worth of ADA tokens. The controversy centers on a 2021 transaction during the Allegra hard fork, in which 318 million ADA, valued at around $619 million at the time, was moved from presale addresses into the Cardano reserves. The move has also sparked accusations of unilateral control and manipulation of the blockchain ledger. Cardano Faces Tough Questions Over ADA Transfers Non-fungible-token artist Masato Alexander brought the claims to light, alleging that Hoskinson used a “genesis key” to rewrite the ledger. Alexander described the hard fork as a “two-step maneuver” that effectively erased the original UTxOs holding the ADA and reallocated them to the reserves controlled by Hoskinson’s team. In 2021, Charles Hoskinson unilaterally used his genesis keys to REWRITE the Cardano ledger and take control of ₳318m ($619m) By comparison, when the DAO hack happened in 2016, the Ethereum community forked over $60m. One of the largest ledger reorgs in blockchain history: — masato_alexander (@masatoalexander) May 7, 2025 Alexander also pointed to a second transaction involving Cardano’s “Move Instantaneous Rewards” (MIR) feature, which was used to withdraw the funds from reserves. He argued that most of the original token holders never reclaimed their funds and questioned how such a large sum could be moved without the consent of the original buyers. Hoskinson addressed the claims on May 6, stating that the “vast majority” of the funds were either redeemed by original ICO buyers or donated to Intersect, the member-based organization involved in Cardano’s governance. According to Intersect’s interim executive director, the group received around $7 million in funding, far less than the alleged $318 million . It’s unclear how much, if any, of the withdrawn funds went elsewhere. Critics have also raised concerns about the lack of transparency surrounding the funds, which were reportedly staked and earned an additional 25 million ADA in rewards. Hoskinson expressed frustration over the accusations and what he described as a lack of trust from the community. “It’s not possible for anyone to not take this personally,” he wrote on X . The one advantage in a crisis or an event that tests people is that you rapidly get to see who your friends truly are and who's fairweather. I'd like to thank all the support and kind words both privately and publicly. The downside is that I believe there will be a cold… — Charles Hoskinson (@IOHK_Charles) May 18, 2025 “To not be given the benefit of the doubt here without strong evidence to the contrary means I don’t have the connection I thought with some people,” Hoskinson stated. He added that the experience has left him “deeply hurt” and he plans to change how he interacts publicly. “After the audit report comes out, I’m going to likely turn my X account over to a media team and change the format of my AMAs and X spaces.” The upcoming audit is expected to provide clarity on the movement and use of the funds, but it may not be enough to resolve the community’s concerns. For many, the controversy has reopened old wounds about Cardano’s early token distribution and raised broader questions about accountability in blockchain governance. Cardano Market Dips as Hoskinson Defends Vision Amid Treasury Concerns ADA slipped 4.6% to $0.7352 following allegations of treasury mismanagement, with trading volume rising by over 27% to $1.05 billion in 24 hours, according to CoinGecko . Source: CoinGecko In a recent interview, Cardano founder Charles Hoskinson responded to criticism by reaffirming the network’s long-term goals and acknowledging its current limitations. “We know what’s wrong, and we know how to fix it,” he said, addressing growing concerns from both the investor community and broader crypto space. Cardano has been repeatedly criticized for trailing behind in key areas like DeFi growth and stablecoin adoption. Its DeFi total value locked remains below $320 million, far behind Solana’s $7 billion. Additionally, the network has yet to attract major stablecoins like USDT or USDC or build momentum around meme coin communities that have energized rival chains. Still, Hoskinson pointed to Cardano’s $1.5 billion treasury as a major advantage and positioned the network as the ideal foundation for Bitcoin DeFi. “It’s the biggest opportunity of our lives,” he said. “And Cardano’s architecture is the best to unlock it.” The post Cardano Audit Probes $600M ADA Gap – Was Treasury Looted? appeared first on Cryptonews .

cryptonews 2025-05-19 22:50

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