Court Ruling in Mango Markets Case 

U.S. District Judge Arun Subramanian overturned fraud and market manipulation convictions against Avraham Eisenberg, accused of a $110 million fraud in Mango Markets. The court ruled there was insufficient evidence that Eisenberg made serious misrepresentations to the platform. This weakens the government’s case and acquits Eisenberg of one charge. Eisenberg had inflated the MNGO token price by over 1300% in a short time and used those gains as collateral to withdraw $110 million from Mango Markets. 

Record Inflows into Bitcoin ETFs 

U.S.-based spot Bitcoin ETFs recorded a total inflow of $2.75 billion this week, about 4.5 times the $608 million inflow the previous week, according to Farside data. BlackRock’s IBIT fund notably saw $430.8 million daily inflows for eight consecutive days. In contrast, Grayscale’s GBTC fund experienced outflows of $89.2 million, and ARK 21Shares’ ARKB fund saw $73.9 million withdrawn. 

Trump’s Crypto Dinner Under Investigation 

Thirty-five members of the U.S. House of Representatives sent a letter on May 22 to the Department of Justice requesting an investigation into Trump’s memecoin investors dinner. They asked Edward Sullivan to probe whether the event violated federal bribery laws or the U.S. Constitution’s “Foreign Emoluments Clause.” 

Most attendees were reportedly foreign nationals linked to crypto exchanges, according to Bloomberg. The letter stated: 

“U.S. law prohibits foreign persons from contributing to U.S. political campaigns. However, the $TRUMP memecoin, including the promotion of a dinner promising special access to the president, opens the door for foreign governments to buy influence with the president without disclosing their identities.” 

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The post What Happened in the Crypto Market? Key Developments appeared first on Coin Engineer.

Third-Party Review Underway

According to internal Slack messages obtained by Blockworks, Movement co-founder Cooper Scanlon said the team is still “exploring various routes” of the investigation, with nothing definitive yet. A spokesperson confirmed that an external firm is involved but didn’t reveal its identity.

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Movement said the review is “a standard best practice to ensure full transparency and accountability.”

Co-Founder Manche Takes Temporary Leave

Multiple sources confirmed that co-founder Rushi Manche has taken a temporary leave of absence. He missed the company’s recent San Francisco onsite and was reportedly absent from Slack for a few days.

However, Manche told Blockworks he’s still active and conducting ecosystem meetings, claiming his Slack access was restored by Monday evening.

Binance Offboards Market Maker Over MOVE Token

This situation escalates just weeks after Binance removed a market maker over “misconduct” tied to the MOVE token. Although the exchange didn’t reveal the party’s name, crypto sleuth ZachXBT pointed toward Web3Port. Blockworks’ analysis shows Web3Port had recently engaged with Movement Labs’ content online.

The ongoing investigation marks a pivotal moment for Movement Labs. In a volatile industry like crypto, restoring trust through third-party reviews and transparent communication is crucial. Investors and community members should closely monitor developments as the investigation progresses.

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A major development has shaken the crypto investment world. Well-known on-chain investigator ZachXBT has claimed that the so-called “Hyperliquid whale,” who trades with 50x leverage on the Hyperliquid exchange, is in fact a cybercriminal gambling with stolen funds.

This whale managed to survive liquidation attempts by crypto investors and secured an impressive $9 million in net profit. ZachXBT emphasized that this whale has no connection to the North Korea-backed Lazarus Group. Earlier this year, in February 2025, ZachXBT had linked the $1.5 billion Bybit hack to that hacker collective. Now, he has followed the trail to this Hyperliquid whale.

“Crypto Twitter Is Speculating, But the Truth Is More Sinister”

ZachXBT made the following statement on X (Twitter):

“It’s funny watching CT speculate on the ‘Hyperliquid whale’ when in reality it’s just a cybercriminal gambling with stolen funds.”

Responding to a follower’s question regarding potential ties to the Lazarus Group, ZachXBT replied:

“No, there’s no connection to Lazarus.”

Some users asked ZachXBT to reveal the whale’s identity. However, he responded by saying:

“We’ll see, it’s just not enjoyable posting investigations on X/Twitter anymore.”

Failed Attempts to Liquidate the Whale

For weeks, the crypto market has speculated about who the Hyperliquid whale is and how they could be stopped. The whale had opened 40x and 50x short positions on Bitcoin (BTC) and Ethereum (ETH), drawing massive attention.

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The whale notably opened a $450 million short position on BTC, which triggered a major reaction across the market. Traders attempted to counter this by aggressively buying up BTC, trying to force a liquidation. However, they ultimately failed. According to Lookonchain, the whale deposited an additional $5 million USDC to increase margin and avoid liquidation.

Aside from BTC and ETH, the whale also opened a $31 million short position on Chainlink (LINK) with 10x leverage and placed short orders on GMX.

A Major Threat in the Crypto Market: Stolen Funds and High-Leverage Trades

ZachXBT’s comments have reignited concerns about stolen funds re-entering circulation through decentralized finance (DeFi) protocols. The situation also highlights how cybercriminals exploit high-leverage trading to gamble with illicit funds, posing a significant risk to the overall market.

While the true identity of this whale remains undisclosed, the broader question for the crypto ecosystem is how to address these high-risk scenarios and prevent bad actors from destabilizing the markets.

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India’s Enforcement Directorate (ED), the country’s financial crime investigation agency, confiscated ₹1,646 crore worth of crypto assets related to BitConnect. A February 15 local report stated:

“The ED unit in Ahmedabad has seized cryptocurrency worth ₹1,646 crore as part of its investigation into the BitConnect cryptocurrency fraud, in which numerous investors were allegedly duped under the guise of securities investment.”

Authorities Seize Additional Assets

In addition to cryptocurrencies, Indian officials also confiscated ₹13,50,500 (approximately $15,582), an SUV, and several electronic devices during raids conducted in Gujarat on February 11 and 15.

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BitConnect, which launched in 2016, collapsed within just two years, leaving thousands of investors with heavy losses. BitConnect founder Satish Kumbhani, who was charged by the U.S. Department of Justice in February 2022, is accused of building a global network of promoters, offering commissions to push the Ponzi scheme.

BitConnect Victims Took Matters Into Their Own Hands

Some BitConnect victims attempted to take action on their own. In August 2024, Indian authorities revealed that investor Shailesh Babulal Bhatt, who had lost money in BitConnect Coin (BCC), allegedly kidnapped two BitConnect employees in an attempt to recover his funds. According to reports, Bhatt and his accomplices extorted:

• 2,091 Bitcoin
• 11,000 Litecoin
• $1.7 million (approximately ₹145 million)

Authorities stated that Bhatt took these drastic measures to recover his investment.

FBI Cracks Down on Crypto Fraud

Global authorities continue to crack down on crypto-related fraud. The FBI’s “Operation Level Up” reportedly prevented $285 million in potential crypto fraud between January 2024 and January 2025.

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