Snyder stated, “These actions misled investors and directly contributed to the largest crypto collapse in history.” The lawsuit, filed shortly after Do Kwon received a 15-year prison sentence, raises questions about the accountability of institutional players in the crypto market. Terraform Labs filed for bankruptcy in 2024 and settled with the SEC for $4.47 billion in penalties.

Jump Trading’s Market Interventions and Allegations

Court filings indicate that Jump Trading aggressively bought UST whenever the price fell below $1, attempting to maintain the peg. The liquidator claims these actions created a false sense of stability, hiding structural weaknesses in the Terra ecosystem. Jump reportedly profited around $1 billion and obtained LUNA tokens at preferential prices. Key allegations include:

• Exploiting UST price fluctuations for profit

• Gaining early access to tokens through secret agreements

• Misleading investors into believing the system was stable

• Leveraging corporate positions and liquidity advantages

• SEC reports show Jump’s Tai Mo Shan unit purchased $20 million UST in May 2021, generating $1.28 billion in gains

Jump Trading’s high-speed data processing and advanced high-frequency trading infrastructure amplified the market impact of its trades. The lawsuit also notes that Terra’s May 2022 collapse wiped out an estimated $40 billion in UST and LUNA, magnifying the damage from the prior illusion of stability.

SEC Findings and Tai Mo Shan Agreement

The U.S. Securities and Exchange Commission (SEC) revealed that Jump’s Tai Mo Shan unit bought $20 million worth of UST in May 2021 after the stablecoin briefly lost its dollar peg. Tai Mo Shan received unlocked LUNA tokens early, which it could sell on the market. The SEC claimed that Jump and Terraform misled investors about the stablecoin’s functionality, with Tai Mo Shan profiting $1.28 billion. The unit later agreed to pay around $123 million in fines.

A Jump spokesperson described the lawsuit as a “desperate attempt to shift blame from Terraform and Kwon” and stated the company intends to vigorously defend itself.

Impact on the Crypto Market

The case highlights the responsibility boundaries of market makers and the importance of transparency in crypto markets. A ruling in favor of Terraform Labs could increase disclosure and investor protection requirements for institutional trading firms. It may also improve compensation for affected investors and lead to a re-evaluation of risk management and reliability of algorithmic stablecoins. Snyder emphasized, “This action is a necessary step to hold Jump Trading accountable for illegal conduct.” Jump Trading has not publicly responded but is expected to mount a strong defense.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Terraform Labs Files $4 Billion Lawsuit Against Jump Trading appeared first on Coin Engineer.

This article explores what insider trading means, how it works, its legal framework, and why it matters in the crypto ecosystem. Executives, employees, or advisors may access undisclosed information such as mergers, earnings, or product launches before they are public. Trading based on such privileged data is considered insider trading.

For instance, a manager buying shares before a positive earnings release and selling them afterward exemplifies classic insider trading — often punished by market regulators such as the SEC (U.S.), ESMA (EU), or SPK (Turkey).

Legal vs. Illegal Insider Trading

Not every insider transaction is illegal. Executives may purchase company shares if the process is transparent and reported properly. Illegal insider trading, however, involves using confidential information for personal gain before it becomes public, damaging market integrity and investor confidence.

Insider Trading Risks in Crypto

The decentralized nature of blockchain complicates detection. Still, exchanges, project teams, or investors may gain early access to private data.

A common example: knowing about a token listing before it’s announced and buying it early. This practice is widespread across DEXs and launchpads.
Other manipulative acts like pump and dump schemes are also frequent, highlighting the need for transparency.

Many crypto projects now employ audited smart contracts, token lockups, and transparency reports to maintain investor confidence and prevent unethical trading.

How It Happens in Crypto

Crypto insider trading generally appears in three forms:

• Pre-Listing Information: Using advance knowledge of exchange listings.

• Team-Based Access: Core members trading before official announcements.

• Investor Networks: VCs or whales exploiting early sale data or unlock schedules.

Such actions harm retail investors and distort fair market dynamics.

Notable Crypto Insider Trading Cases

Coinbase – Ishan Wahi Case

In 2022, Coinbase product manager Ishan Wahi, his brother, and a friend traded based on confidential listing data. After selling post-announcement, they made $1.1 million. The SEC charged them in the first-ever crypto insider trading case, and Wahi was sentenced to two years in prison in 2023.

OpenSea NFT Scandal – Nate Chastain

OpenSea’s product head Nate Chastain used insider information to buy NFTs before they appeared on the homepage. He earned $57,000 and was convicted in 2023. Although his conviction was overturned in 2025, the case reshaped NFT ethics discussions.

Regulation and Prevention

Global regulators are tightening control to ensure fair and transparent crypto markets. Web3 projects must adopt principles similar to traditional finance — transparency, equal access, and data security.

Key preventive steps include:

• Confidentiality agreements for team members

• Timestamped token and listing records

• Independent audit reports

• Restrictions on insider trading before announcements

These actions enhance investor trust and reduce reputational risks.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates

The post What Is Insider Trading? appeared first on Coin Engineer.

However, the rapid surge sparked divided opinions among analysts. Some highlighted unusual whale activity, while others emphasized that weak liquidity created conditions for potential manipulation. CoinWings reported limited whale selling activity, suggesting reduced immediate selling pressure. 

Why is MYX Token Rising? 

MYX serves as the native token of the decentralized exchange (DEX) facilitating on-chain perpetual contract trading. Bitget accounted for 66% of MYX’s trading volume, which significantly boosted market momentum. Meanwhile, nearly 39 million tokens were unlocked during the sharp rally, raising questions about timing. 

Crypto analyst Dominic pointed out that over $10 million in short positions were liquidated in a single day. He noted that whales deliberately pushed the price upward to trigger liquidations, creating artificial demand. On-chain data also revealed coordinated small buys routed to a central wallet and repeated across PancakeSwap, Bitget, and Binance. These movements signaled a structured pump targeting retail traders. 

Sustainability of the Rally Remains Unclear 

MYX Finance recently secured the “Volume Powerhouse” title at the BNB Chain Annual Awards. This recognition further fueled the rally and reinforced investor attention. Yet, past explosive gains followed by steep corrections urged traders to remain cautious. 

Analysts underlined that the price spike reflects strong market interest but also shows classic manipulation patterns. Ultimately, MYX’s performance presents a complex picture shaped by surging demand and suspicious whale activity. The crypto community now closely watches whether this move will evolve into a sustainable trend or fade into a short-lived pump. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Why MYX Finance (MYX) is Rising? appeared first on Coin Engineer.

Although the information in the report has not been directly confirmed by primary sources, it is based on three anonymous insiders. Binance’s founder Changpeng Zhao (CZ) strongly denied the accusations and announced he is considering a defamation lawsuit. However, his statement did not directly refute any of the technical details mentioned in the report. 

How Deep is the Connection Between Binance and USD1? 

There is no documented concrete partnership between Binance and Trump yet. However, the report emphasizes that their link is not superficial. For example, USD1 quickly reached a $2 billion market cap, while its circulating supply remained extremely limited. This suggests that the majority of the stablecoin is controlled by specific actors. 

Analysis in Bloomberg’s article claims that a significant portion of this supply is still held by Binance, and market manipulation occurs through buying and selling activities. Moreover, the process reportedly provides steady income to the Trump family, creating a financial interest. Binance founder Changpeng “CZ” Zhao reacted to the news here: 

4. FUD. Bloomberg just wrote another hit piece (sponsored by a competitor) containing so many factual errors I don't even know where to begin.

Might have to sue them again for defamation. https://t.co/FevGMArHj8

— CZ BNB (@cz_binance) July 11, 2025

The listing of USD1 on Binance attracted more attention with other Trump-linked crypto assets also moving to the platform. Additionally, a $32.8 million transfer of Trump’s memecoins directly to Binance further strengthened this connection. 

Allegations Continue, Parties Remain Silent 

Trump’s White House representatives declined to comment on the news. Officials from World Liberty Financial described the report as an “attempt to create political agenda.” CZ’s statements mostly contained personal criticisms directed at the reporters. A Binance spokesperson reminded that CZ no longer holds an official role in the company but did not provide data that would directly disprove the allegations. 

It is worth recalling that CZ was previously convicted on money laundering charges and later applied for a presidential pardon. At that time, his denials were later confirmed to be false. Therefore, public trust remains low. 

In the end, only a court process can clarify whether the allegations are true or not. If Binance indeed wrote the code for USD1 and financially benefited the Trump family during this process, it will raise both ethical and legal controversies. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Binance and Trump USD1 Stablecoin Allegations Emerge! appeared first on Coin Engineer.

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.” 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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

Coinbase Suspends MOVE Token

This sharp decline in MOVE came as a shock to investors, especially since it had only been listed on Coinbase a few months earlier. Following the development, MOVE’s price dropped to as low as $0.20. 

We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on recent reviews, we will suspend trading for Movement (MOVE) on May 15, 2025, on or around 2 PM ET.

— Coinbase Assets (@CoinbaseAssets) May 1, 2025

The long-awaited MoveDrop event was postponed again due to deteriorating market conditions. The postponement was announced on the day the airdrop was expected, causing significant disappointment among users who had been collecting points. 

The MOVE team had prepared 740 million tokens for distribution. Additionally, 5% of the MOVE supply on Binance had been allocated for this airdrop. 

Insider Selling and Market Manipulation Revealed 

The MOVE token project initially appeared to be trustworthy. The project raised $40.4 million and built an ecosystem offering DeFi applications and developer tools. The platform had $122 million in total value locked and stablecoin liquidity of around $23 million.

However, MOVE collaborated with malicious market makers. A firm called Web3Port sold 66 million MOVE on Binance, causing the price to fall. Binance banned this firm. Later, the team partnered with Rentech, which artificially pumped the price and then applied selling pressure through aggressive sales. 

Heavily promoted on social media, the MOVE token was also bought by the Trump family’s fund, World Liberty Fi. However, the fund sold all its MOVE tokens shortly after. 

After being listed on major exchanges like Binance and Coinbase in December 2024, the MOVE token rose as high as $1.40. However, due to insider selling allegations and airdrop delays, the price plummeted. MOVE is currently trading at $0.0197. 

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post MOVE Token Crashed: Delisted by Coinbase, Airdrop Cancelled! appeared first on Coin Engineer.

Ethereum Dropped by 50% After the Post

Since Eric Trump’s post on February 4, 2025, Ethereum’s price has dropped by approximately 51%, falling to around $1,410. Back then, ETH was trading near the $3,000 mark, making this a significant loss within just two months. Analysts attribute the drop to a mix of macroeconomic uncertainty and weakening investor confidence.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Investors React: “Pump or Mislead?”

Many users on social media have criticized Eric Trump’s statement, calling it speculative. Some investors claim they suffered losses after acting on his suggestion, sparking debates about market manipulation in crypto. The incident has reignited concerns over the power of high-profile social media posts to influence crypto prices.

Crypto experts continue to warn against making financial decisions based on social media posts. They emphasize the importance of conducting technical and fundamental analysis, and caution investors not to follow unverified recommendations without doing proper research.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Eric Trump’s “Great Time to Buy” ETH Post Resurfaces After 50% Drop in Price! appeared first on Coin Engineer.

CLS Global Caught in FBI’s NexFundAI Trap

The FBI launched a fake token, NexFundAI, as part of an undercover investigation in May 2024. CLS Global, along with Hong Kong-linked ZM Quant Investment and Russia-linked Gotbit Consulting, agreed to provide fraudulent market-making services, manipulating token volume to deceive investors.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

The SEC filed fraud charges in October 2024 against CLS Global and its employee Andrey Zhorzhes.

What Is Wash Trading?

Wash trading involves artificially inflating trading volume by repeatedly buying and selling the same asset. This gives a false impression of demand.

A report from Chainalysis in January 2025 estimated at least $2.6B in wash traded volumes — about 2% of total daily crypto market volume.

However, the US National Bureau of Economic Research suggested in 2022 that up to 70% of activity on unregulated exchanges could be wash trading.

Who Is CLS Global?

Founded in 2017, CLS Global was created to fill the demand for “high-quality market-making solutions.” CEO Filipp Veselov, formerly of Latoken, leads the firm. Their CRO, Pavel Singaevskii, was previously with Stex, which allegedly shut down unexpectedly in 2023.

Despite the charges, CLS Global still operates and maintains over 110,000 followers on X.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post US Court Fines CLS Global $428K for Wash Trading! appeared first on Coin Engineer.

US authorities revealed that Gotbit and its executives fell for the NexFundAI (NEXF) “trap token” created by the FBI to catch market manipulators. The company allegedly engaged in wash trading, artificially inflating the trading volume of crypto assets to help projects secure listings on platforms like CoinMarketCap.

Serious Allegations Against Gotbit Executives!

The US Department of Justice announced that a federal grand jury had indicted Gotbit founder Aleksei Andriunin, along with executives Fedor Kedrov and Qawi Jalili, on charges of market manipulation and fraud. Authorities claim that the executives earned tens of millions of dollars between 2018 and 2024 through these tactics.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

26-year-old Russian national Aleksei Andriunin is also accused by US officials of transferring part of these illegal proceeds to his personal Binance account. Authorities stated that Gotbit executives admitted to using these strategies in a 2019 interview.

Facing Up to 20 Years in Prison!

If convicted, Aleksei Andriunin could face up to 20 years in prison and a fine of up to $250,000. Additionally, he could be forced to forfeit assets and repay twice the amount of illicit gains.

The US Securities and Exchange Commission (SEC) also filed a fraud lawsuit against Gotbit and its executives in October 2024. These allegations further highlight the increasing scrutiny of the crypto industry by regulators.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Gotbit Founder Extradited to the US: Fraud Charges! appeared first on Coin Engineer.

Insiders Pulled $107 Million

On-chain analytics platform Lookonchain reported that at least eight wallets linked to the Libra team drained liquidity from the token, withdrawing 57.6 million USDC and 249,671 SOL (worth approximately $49.7 million).

Lookonchain stated:

“The LIBRA team has cashed out $107 million! Eight wallets linked to the LIBRA team acquired 57.6 million USDC and 249,671 SOL by adding liquidity, removing liquidity, and claiming fees.”

This massive rug pull happened just three hours after the token was listed on decentralized exchanges.

How Did Libra Token Collapse?

Initially, Libra surged to a market capitalization of $4.56 billion shortly after launch. However, following the insider cashouts, the token’s market cap plummeted to $257 million within 11 hours.

Following the collapse, Argentine President Javier Milei deleted his X (formerly Twitter) post endorsing the token. Later, he issued a statement blaming political opponents, saying:

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

“To the filthy rats of the political caste who want to take advantage of this situation to cause harm, I want to say that every day they confirm how vile politicians are, and they only strengthen our conviction to kick them out.”

Warnings Were Issued Before the Collapse

Several blockchain analysis firms had already warned investors about Libra’s flawed tokenomics. Bubblemaps revealed that 82% of the token supply was unlocked and could be sold immediately, raising serious concerns.

Additionally, the project failed to provide any preliminary information about its tokenomics—another major red flag for experienced crypto traders.

Memecoin Craze Continues

Despite the risks, celebrity-endorsed memecoins continue to attract significant investor interest. On January 18, Donald Trump launched his Trump (TRUMP) token, followed by Melania Trump‘s Melania Meme (MELANIA) token on January 19.

Although these speculative projects are highly volatile, some investors manage to profit from them. On February 14, a crypto trader made $28 million in profit by buying the Broccoli memecoin, inspired by Binance co-founder Changpeng Zhao’s dog. However, speculation remains that this wallet may have been an insider.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Milei-Backed Libra Token Crashes: $107 Million Rug Pull! appeared first on Coin Engineer.