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Attorneys for Tornado Cash developer Roman Storm filed a motion asking the court to reconsider the motion to dismiss the case due to the prosecution withholding exculpatory evidence in the form of communications with the Financial Crimes Enforcement Network (FinCEN) dating back to 2023.

According to a May 16 letter from Storm's attorneys to Judge Katherine Polk Failla, the FinCEN documents show that non-custodial crypto mixers do not fall under the legal definition of a "money transmitting business" and that prosecutors have known this since at least 2023.

Despite having knowledge of the FinCEN guidance on crypto mixers, state prosecutors still proceeded with cases against the Samourai Wallet developers and Tornado Cash, the attorneys alleged.

Letter sent by Roman Storm’s attorneys to Judge Failla. Source: Court Listener

US prosecutors denied they withheld the evidence, claiming they submitted the FinCEN communications within the stipulated timeframe to produce the documents for the defense and the court during legal discovery.

Storm's defense cited the same legal documents and the same argument the Samourai Wallet developer’s attorneys posed to the court in a May 5 legal letter. Storm's attorneys wrote:

Telegram founder Pavel Durov said he rejected pressure from a European Union (EU) country to censor political content on the social media platform ahead of the May 18 presidential elections in Romania.

According to Durov, a Western European government, which he hinted at with a baguette emoji, approached the platform and requested it censor conservative voices, which he flatly denied. Durov wrote in a May 18 Telegram post:

"You can't 'defend democracy' by destroying democracy. You can’t 'fight election interference' by interfering with elections. You either have freedom of speech and fair elections — or you don’t. And the Romanian people deserve both."

The Telegram founder is an ardent defender of free speech, who is highly regarded in the crypto community for his stances on freedom of expression, autonomy, privacy, and individual liberty.

Source: Pavel Durov

Related: Pavel Durov says Telegram would exit markets before betraying users

Durov thrust into the spotlight following arrest in France

Pavel Durov was arrested in France in August 2024, sparking widespread condemnation from the crypto community and free speech advocates worldwide, who accused the French government of orchestrating a politically-motivated arrest.

Crypto industry executives are beefing up personal security and demanding more bodyguard services in response to a recent string of kidnapping and ransom attempts worldwide — particularly in France — targeting investors and professionals in the sector.

According to a Bloomberg report, Infinite Risks International, a private security firm based in Amsterdam, Netherlands, is seeing more inquiries into bodyguard services and more long-term clients signing up for a private security detail.

Additionally, French law enforcement officials recently announced enhanced security measures for crypto entrepreneurs and investors, following at least three separate kidnapping incidents so far in 2025.

The measures include security briefings and expedited access to police lines in the case of emergencies for the entrepreneurs and their families.

French law enforcement authorities also advised crypto investors not to advertise their wealth or wear crypto-branded clothing, lessening their chances of becoming targets. The disturbing string of incidents highlights the need for proactive safety measures and vigilance for crypto investors and industry professionals.

Key points:

Ether price rose 3% to $2,550 on May 18, triggering $22 million in short ETH liquidations.

A bull flag on the chart suggests a $3,700 target, with analysts predicting Bitcoin’s price to go as high as $5,000 in May.

Ether’s (ETH) price was up on May 18, rising more than 2.5% over the last 24 hours to trade at $2,536. This recovery reinforces the optimism among traders that ETH price could hit $3,000 in May, citing strong technicals.

Ether wipes out $7.5 million shorts in an hour

Data from Cointelegraph Markets Pro and Bitsamp shows that ETH rose by more than 4.5% to an intraday high of $2,551 on May 18 from a low of $2,440 the previous day.

Opinion by: Igor Mandrigin, co-founder and CTPO of Gateway.fm

Every couple of weeks, it seems another layer 2 rolls out, much to the chagrin of some Web3 industry commentators who are concerned about fragmentation. A recent Gemini Institutional Insights report actually noted how a new Ethereum L2 solution is launched approximately every 19 days. In response to the seemingly endless conveyor belt of new zkEVMs and optimistic rollups coming to market, the chorus of criticism continues to grow louder: “This is definitely the saturation point, no more chains are needed.”

Some of the most outspoken critics of L2s argue that L2s are redundant, but this is narrow thinking. In many ways, the idea that creating new L2s should be slowed down is like arguing that there were too many websites in 1998. The proliferation of L2s is not causing the Web3 space to become overly bloated or fragmented at all. The number of chains today isn’t too many. It’s laughably few, and right now is the early innings of a multi-decade explosion in specialized, modular blockchain infrastructure.

The rise of L2s is far from a passing fad

While some contend that this L2 surge we’ve been experiencing is merely a temporary frenzy led by DeFi degenerates, it’s really an enterprise-grade infrastructure expansion, as banks (including Deutsche Bank), game studios (gaming activity on some L2 blockchains rose by over 20,000% in February 2025), logistics networks and global manufacturers get on board. 

Industries like banking and logistics, which are typically risk-averse, don’t make major tech pivots lightly. They do so because they have to, and in many cases, public blockchains do not meet their needs. Returning to their inherent risk-averse DNA, large enterprises and institutions in these sectors generally won’t want to build on shared, general-purpose L1s. Instead, they’ll want to deploy their own chains where they can enjoy custom performance, predictable costs, jurisdictional compliance and granular-level privacy.

Key points:

Bitcoin is convincing traders that an upside breakout is around the corner, with all-time highs in sight.

One target demands $116,000 next week, moving BTC/USD firmly out of its narrow range.

A quick dip before continuing higher is among the options for BTC price action into the new week.

Bitcoin (BTC) reduced volatility to a minimum into the May 18 weekly close as traders bet on a fresh breakout.

Economist and author of The Bitcoin Standard, Saifedean Ammous, has weighed in on the ongoing debate over spam inscriptions on the Bitcoin network, suggesting he would “throw in a few sats” to fund a full-time developer focused on making Bitcoin spamming more difficult and expensive.

Ammous made the remarks in response to a thread initiated by the pseudonymous developer GrassFedBitcoin, who called for Bitcoin Core to merge pull request #28408, which would enable node operators to filter inscriptions more easily.

According to GrassFedBitcoin, the lack of inscription filtering tools contributes to unnecessary blockchain bloat and undermines Bitcoin (BTC)’s role as a monetary protocol.

“No one running a node wants to relay inscriptions,” he wrote, arguing that the OP_RETURN limit increases were justified in the past under false assumptions. He pushed for a configurable, default policy discouraging the use of Bitcoin for storing JPEGs rather than monetary data.

Blockstream CEO Adam Back challenged the proposal, describing inscription filtering as an “arms race.” He noted that spam data embedded in Bitcoin transactions can be endlessly modified using code structures, requiring constant updates to filtering tools.

Retired artist Ed Suman lost over $2 million in cryptocurrency earlier this year after falling victim to a scam involving someone posing as a Coinbase support representative.

Suman, 67, spent nearly two decades as a fabricator in the art world, helping build high-profile works such as Jeff Koons’ Balloon Dog sculptures, according to a May 17 report by Bloomberg.

After retiring, he turned to cryptocurrency investing, eventually accumulating 17.5 Bitcoin (BTC) and 225 Ether (ETH) — a portfolio that comprised most of his retirement savings.

He stored the funds in a Trezor Model One, a hardware wallet commonly used by crypto holders to avoid the risks of exchange hacks. But in March, Suman received a text message appearing to be from Coinbase, warning him of unauthorized account access.

After responding, he got a phone call from a man identifying himself as a Coinbase security staffer named Brett Miller. The caller appeared knowledgeable, correctly stating that Suman’s funds were stored in a hardware wallet.

United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026 as part of a broader effort to improve crypto tax reporting, the UK government said.

Everything from the user’s full name, home address and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved, the UK Revenue and Customs department said in a May 14 statement.

Details of companies, trusts and charities transacting on crypto platforms will also need to be reported.

Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user. The UK Revenue and Customs department said it would inform companies on how to comply with the incoming measures in due course.

However, UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness.

The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.

Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder HK$118 million ($15 million), local news outlets reported.

The syndicate was dismantled on May 15, resulting in the arrest of nine men and three women in mainland China and Hong Kong.

The suspects allegedly recruited others to open bank accounts to receive proceeds from fraud cases, which were then converted into crypto at crypto exchange shops to launder the illicit funds, Hong Kong Commercial Daily reported on May 17.

The criminal organization rented a residential unit in the Hong Kong neighborhood of Mong Kok to plan and carry out its money laundering activities. Of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Caught in action

The bust followed police surveillance on May 15, when two recruits left the syndicate’s Mong Kok base — one visiting a bank, the other an ATM — before both went to convert the cash into crypto at a crypto exchange shop in the neighborhood of Tsim Sha Tsui.

Public internet infrastructure is the critical speed and performance constraint on high-throughput blockchain networks, according to Austin Federa, co-founder and CEO of DoubleZero, a project developing high-speed fiber optic communication rails for blockchains.

"The downside of the public internet is it was never built for high-performance systems. It was always built for this sort of relationship of one big server talking to one little server," Federa told Cointelegraph in an interview at Consensus 2025. The executive explained:

"We have validators all around the world. Rotating leader schedules all the time. And then they switch from having to be massive consumers of data to extremely massive broadcasters of data. So that means that they need huge amounts of resources both on ingress and egress."

The executive added that the constraint posed by public internet infrastructure is now the limiting factor in blockchain performance and not compute power or software development.

Austin Federa giving a presentation on DoubleZero at Consensus 2025 in Toronto, Canada. Source: Cointelegraph/Vince Quill

Networks like DoubleZero will make blockchains faster, decrease spreads in decentralized finance (DeFi) trades, lower transaction fees, and open up new use cases for blockchain networks that were previously unavailable due to communication infrastructure constraints.

Related: Blockchains ready for institutions, lawyers hesitate: DoubleZero CEO

Moody's credit rating agency downgraded the credit rating of the United States government from Aaa to Aa1, citing the rising national debt as the primary driver behind the reduction in creditworthiness.

According to the May 16 announcement from the rating agency, US lawmakers have failed to stem annual deficits or reduce spending over the years, leading to a growing national debt. The rating agency wrote:

"We do not believe that material multi-year reductions in mandatory spending and deficits will result from the current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat."

The credit downgrade is only one degree out of the 21-notch rating scale used by the company to assess the credit health of an entity.

An overview of the US national debt. Source: US National Debt Clock

Despite the negative short to medium-term credit outlook, Moody's maintained a positive outlook on the long-term health of the United States, citing its robust economy and the status of the US dollar as the global reserve currency as strengths, reflecting "balanced" lending risks.

Related: Asia’s wealthy shifting from US dollar to crypto, gold, China: UBS

Michael James, the head of institutional business development at Douro Labs — the company that developed the Pyth high-speed blockchain oracle network — told Cointelegraph that oracle networks like Pyth are disrupting the $50 billion financial data industry that provides critical price information to exchanges, brokerages, trading firms, and other institutional entities.

In an interview at Consensus 2025, the executive said that Pyth Network's data pull model sets it apart from traditional pricing oracles, allowing customers to pay for data on demand, reducing costs for institutions reliant on real-time market data.

Differences between pull and push models in oracle systems. Source: Pyth Network

According to the executive, the financial data industry is currently monopolized by around eight major providers that continually raise prices on clients arbitrarily. James added:

"These data vendors have no competition in traditional finance, and so they have all the pricing power in the world. There is no substitutability; whether you are a banker or hedge fund and you are trading more or less — you still have to buy that data for compliance reasons."

The high costs of financial data stifle innovation and prohibit small to medium-sized businesses from taking part in the global financial services industry, further concentrating the sector in the hands of a few large players and preventing novel use cases from emerging.

Related: Asset tokenization expected to speed capital flows, says Chainlink's Nazarov

South Africa’s Garden Route, famed for its lush forests, expansive beaches and charming towns, has become a testbed for Bitcoin adoption.

From Mossel Bay to Witsand and Plettenberg Bay to Knysna, Bitcoin has become popular among shop owners and travelers alike for a multitude of reasons.

“We’re seeing the early signs of a parallel, permissionless economy emerging across an entire region,” James Caw, founder of SimplB — a local crypto asset provider — told Cointelegraph, “where small businesses benefit from faster, lower-cost digital payments and where people have more options to earn, send and receive sound money securely.”

For tourists, the benefits are immediate: no currency exchange hassles, no international card fees, and the ability to pay instantly and securely. For locals, Bitcoin (BTC) offers a hedge against inflation, protection from currency volatility and new economic opportunities.

Here’s a taste of what a Bitcoin-friendly trip along the Garden Route is like.

Opinion by: Merlin Egalite, co-founder at Morpho Labs

Fintechs in the front, decentralized finance (DeFi) in the back: the DeFi Mullet.

Today’s fintech companies offer excellent user experiences but are constrained by traditional financial infrastructure — siloed, slow, expensive and inflexible. Meanwhile, DeFi provides lightning-fast, cost-effective, interoperable infrastructure but lacks mainstream accessibility.

The solution? Combine fintech’s distribution and user experience with DeFi’s efficient back end.

The mullet is inevitable

Fintech companies heavily rely on traditional financial (TradFi) infrastructure that is siloed, slow to deploy and run, and costly to maintain. This inefficiency limits their control over costs and product offerings and has potential infrastructure risks. Fintechs have a strong incentive to transition to building on autonomous, credibly neutral public infrastructure.

Bitcoin’s next explosive move could send the asset to $250,000 by the end of 2025, according to Scott Melker, a crypto analyst and host of The Wolf of All Streets podcast.

Speaking in a recent interview, Melker cited growing institutional interest and diminishing volatility as key factors that could drive the next leg up.

“250K this year, totally possible,” Melker said, adding that Bitcoin (BTC)’s volatility has declined significantly in recent years.

“It used to be about three times as volatile as the S&P. Now it’s less than two times.” He pointed to increased involvement from pension funds and ETF issuers as evidence of a more mature, stable market.

The shift, he argued, reflects a broader trend of institutional adoption. “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be,” Melker explained.

The US Securities and Exchange Commission (SEC) has held discussions with Everstake, one of the largest non-custodial staking providers globally, to explore clearer regulatory definitions around staking in blockchain networks.

The meeting, which also involved the SEC’s Crypto Task Force, comes at a time when over $193 billion in digital assets are staked across major proof-of-stake (PoS) networks.

However, despite the massive scale of participation, staking remains in a legal gray zone in the US as regulators wrestle with its classification under existing securities law.

The previous SEC administration also took enforcement actions against major players such as Kraken, Coinbase, and Consensys due to their staking services. The agency, under pro-crypto President Donald Trump, has recently dismissed these enforcement actions.

During the meeting, Everstake told the SEC that non-custodial staking should not be classified as a securities transaction. The company said that users maintain full control over their digital assets throughout the staking process and do not transfer ownership to a third party.

A man from Wellington, the capital city of New Zealand, has been arrested in connection with an FBI-led investigation into a global cryptocurrency fraud operation that allegedly stole $450 million New Zealand dollars ($265 million).

According to New Zealand Police, the man is one of 13 individuals charged after authorities executed search warrants across Auckland, Wellington, and California over the past three days.

The charges stem from allegations that members of an organized criminal group manipulated seven victims to obtain large amounts of cryptocurrency, which was then laundered through multiple platforms between March and August 2024.

The US Department of Justice has indicted the man under federal law, including charges of racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering, per the announcement.

Source: New Zealond Police

Related: Germany seizes $38M in crypto from Bybit hack-linked eXch exchange

Panama City Mayor Mayer Mizrachi has hinted at establishing a city-level Bitcoin reserve in a cryptic post following his meeting with two of El Salvador’s Bitcoin policy leaders.

“Bitcoin Reserve,” Mizrachi wrote to X on May 16 after meeting El Salvador-based Bitcoiners Max Keiser and Stacy Herbert.

While Mizrachi didn’t share details about his discussions with Keiser and Herbert, the timing of the post came 11 days before the Bitcoin 2025 conference in Las Vegas, where Mizrachi is scheduled to speak.

Source: Mayer Mizrachi

The creation of a Bitcoin reserve in Panama City would follow a recently approved measure permitting the use of crypto for public payments, including taxes, fines and municipal fees.

Bitcoin (BTC), Ether (ETH), Tether (USDT) and USDC (USDC) will be accepted once the crypto-to-fiat payment rails are established, Mizrachi said at the time.

Paraguayan law enforcement has deported three individuals and arrested another for attempting to steal crypto miners at a facility near the country’s Itaipu hydroelectric dam.

According to a May 15 statement from Paraguayan prosecutor Irene Rolón, the men were caught by police soon after breaking into a locked section of Teratech SA’s facility in Coronel Bogado, leading to their arrest.

Prosecutors believe the men may have had ties to Teratech as independent contractors, but are still waiting on official confirmation from the company’s CEO.

The three deported were Chinese nationals Jinping Duan, Tian Jianyun and Zheng Guanglong, who did not have official entry records into the country. Paraguayan authorities and Interpol believe the men illegally entered through Brazil or Bolivia.

The three deported Chinese nationals pictured before leaving the country. Source: PDS Radio Y TV Digital

The other person arrested, Nahun María Velázquez Garcete, is a legal resident in Paraguay but is believed to be part of a criminal organization.