Today's top news highlights:

Regulation & Macro

The U.S. SEC has approved the registration of a Paxos subsidiary as a liquidation firm.

The U.S. Securities and Exchange Commission (SEC) has approved Paxos subsidiary Paxos Securities Settlement Company's registration as a clearinghouse, making it the first blockchain-native company to receive this qualification. Paxos stated that this approval marks a key component of financial infrastructure as blockchain technology continues to integrate with traditional capital markets, removing barriers for banks and brokers to build crypto infrastructure.

157 government and enterprise websites became "stepping stones" for pornography; hackers were sentenced for using cryptocurrency to hide illicit funds.

157 government and enterprise websites were used as stepping stones for pornography; a hacker was sentenced for using cryptocurrency to hide illicit funds. Between August 2023 and June 2025, the defendant, Zhou, illegally gained control of over 150 servers, causing links generated by these servers to automatically redirect to overseas pornographic websites. He then resold the access for profit. All of Zhou's illegal gains were settled in cryptocurrencies such as USDT and TRX, and dispersed and hidden in multiple encrypted wallets. Following the guidance of the procuratorate, the police extracted key evidence such as mnemonic phrases and login passwords for the cryptocurrency wallets, and seized cryptocurrency equivalent to over 42 million yuan. Zhou voluntarily pleaded guilty and accepted punishment, returning over 28 million yuan of illegal gains. He was sentenced to four years and four months imprisonment and fined.

The US CFTC sued the state of Rhode Island to maintain its exclusive jurisdiction over prediction markets.

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit in the U.S. District Court for the District of Rhode Island to block the state from applying its gambling laws to CFTC-registered contract markets. The CFTC chairman stated that CFTC-registered exchanges face numerous lawsuits aimed at restricting U.S. participation in event trading, which undermines the CFTC's exclusive jurisdiction over prediction markets. Event trading is a commodity derivative and falls entirely under the CFTC's regulatory purview. The CFTC faces similar jurisdictional challenges in states such as Arizona, Connecticut, Illinois, New York, and Minnesota.

South Korea's DAXA tightens controls on cryptocurrency APIs to crack down on the misuse of shared keys.

The Korea Digital Asset Exchange Alliance (DAXA) has introduced new compliance standards requiring exchanges to cancel API keys suspected of being improperly shared among users, in order to combat market manipulation and fraudulent orders using shared or leaked API credentials. When suspicious API sharing is detected, users will be required to undergo mandatory re-authentication after enhanced monitoring and user warnings. Upbit, Bithumb, Coinone, Korbit, and Gopax, all regulated by DAXA, will also deploy IP whitelisting systems to restrict API access to only approved addresses. The Financial Supervisory Service of Korea stated that automated trading currently accounts for approximately 30% of domestic cryptocurrency trading volume.

Project Updates

Binance HODLer airdrop launches Genius Terminal (GENIUS), the 65th project.

Binance HODLer is airdropping its 65th project, Genius Terminal (GENIUS), a machine intelligence network that is an open infrastructure layer for artificial intelligence. From 08:00 on May 11, 2026 to 07:59 on May 14, 2026, users who subscribe to BNB-protected earning or on-chain earning products will receive airdrop allocations, which are expected to be distributed to their spot accounts within 5 hours.

Aave Labs has proposed establishing a unified, standardized framework for listing technology assets.

Aave Labs has released an ARFC proposal, suggesting the establishment of a standardized technical asset listing framework for Aave V3, V4, and Aave Horizon, unifying the technical requirements for asset listing, parameter expansion, and continuous monitoring. The framework covers core areas such as ERC20 compatibility, oracles, access control, minting and burning logic, suspension and blacklist mechanisms, upgradeability, exchange rate and yield mechanisms, token architecture, cross-chain bridge risks, auditing and security history, and external dependencies. It does not replace market risk analysis and governance judgment, but only provides a technical qualification baseline. The framework aims to address hidden risks such as unlimited issuance, weak upgrade permissions, inconsistent bridging supply, opaque redemption paths, and reliance on off-chain custody, with particular emphasis on additional scrutiny of cross-chain assets, yield-generating assets, and off-chain dependent assets such as RWA. Assets with significant technical flaws may face reduced lending limits, restrictions on collateral parameters, delayed listing, or even recommendations to refuse protocol access.

Binance Futures will launch QNTXUSDT U-margined Pre-IPO perpetual contracts.

Binance Futures will launch QNTXUSDT U-margined Pre-IPO perpetual contracts on May 29, 2026 at 16:15.

Binance Alpha will remove several tokens including DIGI, K, and SKI.

Binance Alpha will remove the following tokens on May 29, 2026 at 14:0 ...

Superfortune: The attack was caused by the signer's private key being leaked, not by address poisoning; it was not an inside job.

Superfortune, incubated by Manta, updated its security statement, stating that the attack was not perpetrated by insiders but rather by a leaked signer's private key. The multi-signature mechanism uses a 3/5 model, and one signer's private key was leaked and used to initiate a transaction. The attacker independently held the private key and submitted a transaction with a forged address 43 minutes after the correct transaction. The forged address matched the first and last four characters of the correct address, used to disguise the transaction in the Safe interface preview. Approximately 2784 ETH were stolen and stored in three Ethereum cold wallets, while approximately 170,000 USDT were transferred out across blockchains. The attacker also created numerous spoofed addresses and used Unicode forged token symbols to send fake transfer events, obfuscating tracking and indicating an industrial-scale operation.

GoPlus: $15.5 million in funds and LPs still urgently need to save themselves after the DxSale security incident.

Security firm GoPlus stated that the DxSale security incident may have been caused by an inside job, and that $15.5 million in funds and limited partners (LPs) still urgently need to be rescued. They advised the project team to immediately check if LPs are locked in contracts 0xEb3a9C56, 0x81E0eF68, 0x2D045410, and 0x5b5e9448, and if so, to withdraw immediately. The initial funds originated from Bybit, and KYC tracing is recommended; the final withdrawal channels were multiple Binance addresses, and it is suggested to request the freezing of the attacker's addresses. GoPlus called on the project to strengthen its security mechanisms, requiring key administrator functions to have time locks and owner permissions to use multi-signature. As of now, DxSale has not issued any public response statement.

ApeCoin restructures its operations: ApeCo's head departs, and the core team merges into Yuga Labs.

Yuga Labs CEO Michael Figge announced a restructuring of ApeCoin's operational framework, eliminating the independent head of ApeCo, and the departure of Cam, the head of ApeCo. The core ApeChain technology and business development team will work directly with Yuga Labs, while other members will also leave. The transition is scheduled to be completed on June 5th. Previously, the parallel coordination model used due to regulatory ambiguity led to inefficiencies; the decision to simplify the structure has been made in response to changes in the regulatory environment.

Intercontinental Exchange CEO: We are discussing business overlap and potential cooperation opportunities with Hyperliquid.

Intercontinental Exchange CEO Jeff Sprecher stated that he has met multiple times with the Hyperliquid team to discuss business overlap and potential cooperation opportunities. Hyperliquid's trading of oil over a weekend when traditional oil markets are closed has attracted attention, and it has also launched trading in SpaceX derivatives. He anticipates that when SpaceX goes public on June 11, it will be worth watching whether the price discovered in the private market will affect the IPO, as retail investors may invest a significant amount of money in this IPO, potentially exceeding the IPO's own size.

Impossible has acquired the Rarible brand and core platform assets from the NFT marketplace.

NFT marketplace Rarible announced that Impossible has acquired the Rarible brand and core platform assets, marking Impossible's first foray into mergers and acquisitions and brand expansion. The RARI Foundation ecosystem and RARI tokens remain independently managed by the respective foundation entities. The team stated they will continue to support artists, collectors, and the community.

Grayscale's Hyperliquid ETF is in talks for a seed investment of approximately $115 million in HYPE tokens.

Grayscale disclosed in its updated Hyperliquid ETF filing that it is in talks with Hyper Holdings Global LP to exchange approximately 2 million HYPE tokens (about $115 million) as seed investment for fund shares. The filing changed the fund name from Grayscale HYPE ETF to Grayscale Hyperliquid Staking ETF, with the Nasdaq ticker HYPG. Previously, Grayscale's Hyperliquid ETF application had entered the final pre-listing registration stage and added the option to offer staking functionality.

Sui: The mainnet has resumed operation. The network was previously suspended due to a vulnerability in the Gas billing logic of version 1.72.

Sui officials have stated that mainnet activities have resumed, after the network was suspended due to a vulnerability in the Gas billing logic introduced in version 1.72. A full recap of the incident will be released in the coming days.

Sui's mainnet experienced a network outage, and transactions were temporarily suspended.

Sui officials stated that Sui Mainnet is experiencing a network outage, and the Sui Core team is investigating and resolving the issue. During this period, on-chain transactions may be suspended.

Investment and financing news

OKX confirms it will invest $53 million to acquire nearly 20% of the shares of South Korean cryptocurrency exchange Coinone.

OKX Ventures announced it will acquire a 19.6% stake in South Korean licensed cryptocurrency exchange Coinone, investing 80 billion won (approximately US$53 million). Korea Investment & Securities will also invest the same amount, giving both companies a 19.6% stake in Coinone each, making them the third-largest shareholders. The investment will be made through a combination of acquiring existing shares and subscribing to new shares.

Anthropic completes a $65 billion Series H funding round, valuing the company at $965 billion post-money.

AI unicorn Anthropic has completed a $65 billion Series H funding round, bringing its post-money valuation to $965 billion, surpassing OpenAI for the first time. The round was led by Altimeter Capital, Dragoner, Greenoaks, and Sequoia Capital, and also included $15 billion in previously committed investment from hyperscale cloud providers, with Amazon contributing $5 billion.

Market news: SpaceX will lower its IPO valuation target to at least $1.8 trillion.

Market sources say SpaceX will lower its IPO valuation target to at least $1.8 trillion.

Cryptocurrency trading company FalconX has filed for an IPO with the U.S. Securities and Exchange Commission (SEC).

Cryptocurrency trading firm FalconX has confidentially filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), taking the first step toward a potential IPO. FalconX has hired Wall Street giant Cantor and other banks as IPO advisors, but due to volatile market conditions, the IPO is not expected to be completed before the end of the year. Founded in 2018, FalconX primarily provides digital asset bulk brokerage services to institutional clients. In 2022, it completed a $150 million Series D funding round at a valuation of $8 billion.

Opinions & Analysis

Changpeng Zhao: AI will continue to exist and grow exponentially, but most AI companies will go bankrupt.

Binance founder Changpeng Zhao stated in an article on the X platform that AI will continue to exist and grow exponentially, but most AI companies will fail due to their sheer number. Even the survivors will face significant price volatility, while new survivors will constantly enter the market, just like any other emerging industry.

Analysis: Bitcoin's exit strategy and USDT's regaining dominance.

Crypto analytics platform Swissblock indicates that Bitcoin is retreating into a risk-averse mode, USDT's dominance is rebounding, and funds are rotating back to a protection-oriented approach. The risk index is rapidly entering high-risk territory, Bitcoin is losing structural strength, and the market is prioritizing survival over upside potential.

Analysis: An unusually large number of put option buys appeared in the Ethereum options market.

10x Research analysis indicates an unusually large volume of put option buying in the Ethereum options market, with contract volume at strike prices of $1800 and $1900 approximately five times the normal level. The firm believes that while Ethereum is cheap, cheap does not equate to a buying opportunity; fundamentals ultimately determine price, and marketing narratives can only maintain a deviation for a limited time.

Standard Chartered Bank reiterated its year-end price target of $4,000 for ETH and its 2030 price target of $40,000.

Standard Chartered analysts reiterated their year-end price target of $4,000 for Ethereum and their 2030 price target of $40,000, believing that the current price does not reflect the growth in on-chain transaction volume and the value deposited by DeFi applications. Ethereum dominates the stablecoin and tokenization markets, which are poised for rapid growth. Year-to-date, stablecoins account for 33% of Ethereum transactions, and the Ethereum Foundation-backed economic zone, launching this summer, will further boost on-chain activity. If RWA grows 50-fold as expected, Ethereum's importance will increase dramatically, and transaction volume and total value locked will continue to reach new all-time highs.

Bitwise: With the growing demand for HYPE ETFs, Hyperliquid may drive the future development of finance.

Ryan Rasmussen, Head of Research at Bitwise, stated that investor demand for Hyperliquid exposure is surging with the launch of the HYPE ETF. Bitwise maximizes returns for ETF investors through internal HYPE staking and allocates 10% of its management fees to purchasing HYPE tokens to align with the Hyperliquid community. Hyperliquid has the potential to become one of the systems upon which most traditional financial operations will rely in the future, and its ecosystem is expanding into areas such as perpetual contracts, prediction markets, and spot trading. 99% of the fees in Hyperliquid's token economy are used to buy back and burn HYPE, similar to traditional stock buybacks. Regulatory scrutiny of the perpetual contract market in the US, inflation, and geopolitical tensions remain major risks. Wealth managers' focus has shifted from whether cryptocurrencies will go to zero to asset allocation, tokenization, and stablecoins.

Important data

Bitcoin spot ETFs saw a total net outflow of $229 million yesterday, marking the ninth consecutive day of net outflows.

Ethereum spot ETFs saw a net outflow of $121 million yesterday, marking the 13th consecutive day of net outflows.

Bitcoin and Ethereum options with a notional value of $7.48 billion expire and settle today.

May 29th options settlement data showed that 84,000 BTC options expired, with a put-call ratio of 0.88, a maximum support level of $75,000, and a notional value of $6.2 billion; 639,000 ETH options expired, with a put-call ratio of 0.81, a maximum support level of $2,200, and a notional value of $1.28 billion. This week, Bitcoin quickly fell below $75,000, with both BTC and ETH experiencing large-scale expirations. However, due to the rapid decline, the market did not find support at the maximum support level. Only 20% of options expired this month, and the concentration of options holdings in June will rise sharply to 40%. Bulls failed to regain key positions before settlement, and risk appetite continued to decline, with altcoins and ETH beta facing more significant pressure. The PCRs for BTC/ETH were 0.88 and 0.81 respectively, not considered extremely bearish. The market had not previously made large-scale bets on a one-sided plunge, maintaining an overall neutral to slightly defensive stance. Implied volatility (IV) for major maturities rebounded slightly, but remained below 35% across the board. The market's next focus is on whether funds can flow back in, and whether BTC can regain $75,000 and ETH can recover $2,100.

A whale deposited 2.16 million UNI tokens into Binance and lost $6.39 million after holding them for a year.

Strategy deposited 411 BTC, equivalent to approximately $30.3 million, into Coinbase Prime.

Ethereum treasury firm FG Nexus deposited 5,000 ETH, worth approximately $10.06 million, into Galaxy Digital.

Whale Loracle's 5x leveraged short position in HYPE has already incurred a floating loss of over $29 million.

The SPACEX-USDH perpetual contract on Hyperliquid experienced a 45% flash crash last night.

On the evening of May 28th, the SPACEX-USDH perpetual contract on Hyperliquid plummeted from $2277 to a low of $1254 within 30 minutes, a drop of nearly 45%, before partially recovering to $2157. This flash crash resulted in the liquidation of 1393 positions from 405 users, with a notional value loss of $1.51 million. The median margin of the liquidated positions was only $31, indicating that they were primarily held by retail investors. This contract was a synthetic perpetual contract based on the market valuation of SpaceX. Because SpaceX is not yet publicly listed, there is no publicly available price benchmark, and the market depth is insufficient to absorb such large sell orders.

Trust Wallet integrates Hyperliquid forecasting and perpetual contract trading.

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