PA Daily | Strategy purchased another 4,020 BTC, with a year-to-date return of 16.8%; Cetus released a report on the theft incident, and will promote LP recovery plans and strengthen security audits

Today's news tips:

1. Trump Media Group denies plan to raise $3 billion to buy cryptocurrency

2. Strategy purchased another 4,020 BTC, with a year-to-date return of 16.8%

3. Vitalik: For L2, features such as fast withdrawals and anti-censorship take precedence over the complete decentralization of the sorter

4. Cetus releases a report on the theft incident, will promote LP recovery plans and strengthen security audits

5. MoveDrop’s Movement Mainnet Phase is now open, and users can now claim MOVE tokens

6.Binance Wallet will launch the 19th exclusive TGE project Elderglade (ELDE) on May 27

7.SBF's sentence was reduced by four years and he is expected to be released from prison by the end of 2044

8. James Wynn's Bitcoin long position increased to 5,676 BTC, with a liquidation price of $108,010

Regulatory/Macro

U.S. SEC Crypto Working Group Discusses Security Tokenization with Nasdaq, DeFi Startups

The U.S. Securities and Exchange Commission (SEC) Crypto Working Group met with Nasdaq, Plume Network and Etherealize last week to focus on the regulatory framework for public chain securities tokenization. All three parties proposed to set up a "regulatory sandbox" pilot: Nasdaq suggested creating a new trading venue "ATS-Digital" to support the listing of digital asset contracts and commodity tokens; Plume Network (based on Arbitrum) advocated adapting decentralized financial terms to securities laws; Etherealize called for the revision of transfer agent rules to recognize the legitimacy of blockchain as a shareholder registration system. Industry representatives called for clear asset classification, modular rules and phased testing, but did not question the SEC's investor protection principles. The working group will evaluate sandbox models, dedicated trading venues and rule update plans. Previously, SEC Commissioner Mark Uyeda has expressed support for the regulatory sandbox mechanism.

US crypto legislation enters a critical period, market structure and stablecoin bills face August deadline

The legislative process of the US Congress on crypto market structure and stablecoin regulation has entered the sprint stage. French Hill, chairman of the House Financial Services Committee, announced that the second full hearing will be held on June 4, and the bill will be reviewed on June 10. The August 4 legislative deadline set by President Trump is less than 70 days away, but the industry is skeptical about whether the market structure bill can be passed in time.

At the same time, the SEC's crypto working group has held 104 meetings with the industry, continued to promote the exploration of regulatory paths, and communicated with projects such as Ripple on regulatory clarity and the "safe harbor" mechanism. In terms of stablecoin legislation, the GENIUS Act may be sent to the House of Representatives after being passed by the Senate and then to the President for signature, and is expected to be implemented before the market structure bill.

Congress is on recess this week, and some pro-crypto lawmakers and officials will attend the Bitcoin conference in Las Vegas. The conference will feature speeches from Vice President JD Vance, Senators Lummis and Hagerty, Michael Saylor, and members of the Trump family.

Trump Media Group Denies Plan to Raise $3 Billion to Buy Cryptocurrency

The Financial Times cited six anonymous sources as saying that Trump Media & Technology Group (TMTG) plans to raise $3 billion through stock sales to invest in Bitcoin and other cryptocurrencies. The company strongly denied this, stating that "stupid reporters from the Financial Times listened to even stupider sources."

The Blockchain Group announced the issuance of 63.3 million euros of convertible bonds, and it is expected to increase its holdings by 590 BTC

According to the official announcement, The Blockchain Group (Euronext code: ALTBG), the first listed company with Bitcoin reserves in Europe, completed two rounds of convertible bond issuance through its wholly-owned subsidiary in Luxembourg: the first round of 5 million euros was subscribed by Moonlight Capital, with a conversion price of 3.809 euros per share (30% premium over the closing price on May 23); the second round of 58.3 million euros was subscribed by Fulgur Ventures (55.3 million euros) and UTXO Management (3 million euros), with a conversion price of approximately 0.707 euros per share. All bonds were subscribed in the form of Bitcoin, and it is expected that 590 BTC will be added, bringing the company's potential total Bitcoin holdings to 1,437. This financing continues its "Bitcoin Finance Company" strategy, that is, while developing data intelligence and AI businesses, it continues to increase Bitcoin holdings, with the goal of increasing Bitcoin reserves per share.

Strategy purchased another 4,020 BTC, with a year-to-date return of 16.8%

Strategy (formerly MicroStrategy) raised $427 million through three ATM stock issuance programs and purchased 4,020 BTC for approximately $427.1 million between May 19 and May 25, with an average purchase price of $106,237. So far this year, the company's BTC investment has an annualized return of 16.8%. As of May 25, the company holds a total of 580,250 BTC, with a total investment of $40.61 billion and an average holding cost of $69,979.

Matador Completes Private Fundraising of Approximately $1.575 Million CAD to Support Bitcoin Purchases

Canadian technology company Matador Technologies Inc. announced that it has completed a non-brokered private placement, issuing a total of 2,863,818 units at a price of C$0.55 per share. Each unit consists of one common share and half a common share subscription warrant. Each subscription warrant entitles the holder to subscribe for one additional common share of the company at a price of US$0.75 per share within twelve months from the date of issuance. The total amount of funds raised is C$1,575,099. The funds will be used to purchase Bitcoin, advance gold acquisitions, and for general corporate purposes.

French authorities arrest 12 suspects in cryptocurrency kidnapping case

According to Cointelegraph, citing local media reports, French authorities have arrested 12 suspects in connection with two high-profile cryptocurrency kidnappings in Paris, including several minors. They are charged with crimes including kidnapping, attempted kidnapping and criminal conspiracy. French investigators are investigating whether there are criminal organizations behind two recent cryptocurrency-related kidnappings that use social media networks for recruitment.

Viewpoint

Vitalik: For L2, features such as fast withdrawals and anti-censorship take precedence over complete decentralization of the sorter

Jesse Pollak, head of Base, recently said that Base is pushing its network to achieve indicators such as " fastest (target 200ms), lowest fee (<$0.01), and high throughput (200 TPS) ", and gradually decentralize by implementing the Phase 1 and 2 plans proposed by Vitalik. In response to the outside world's doubts about the centralization of the sequencer, Jesse responded that more sequencer nodes will be gradually introduced in the short and medium term, and emphasized that the key goal is to achieve CR properties (neutrality, anti-sandwich transactions, etc.), not just relying on the decentralization of the sequencer. Vitalik also pointed out that for L2, functions such as fast withdrawals and anti-censorship channels take precedence over the complete decentralization of the sequencer.

Matrixport: Market sentiment is extremely optimistic, which may indicate that the short-term market will stagnate or pull back

Matrixport analysis shows that Bitcoin's option skewness (the difference between the implied volatility of put options and call options) has fallen to nearly -10%. This means that the implied volatility of call options is 10% higher than that of put options, suggesting that traders are currently more focused on chasing upside rather than hedging downside risks.

As a rule of thumb, when option skewness reaches similar levels, it usually indicates that market sentiment is extremely optimistic. This extreme sentiment is often a contrarian signal, which may indicate that the short-term market is about to stagnate or face a correction. As mentioned in yesterday's report, although the bullish judgment has been maintained since mid-April, it may be the right time to gradually control risk exposure at this stage. The essence of trading is to balance risk and reward. In the context of generally bullish market sentiment, it may be a more prudent choice to remain patient and wait for more attractive entry points.

Project News

Binance Wallet will launch the 19th exclusive TGE project Elderglade (ELDE) tomorrow

According to the Binance Wallet announcement, the 19th exclusive TGE project Elderglade (ELDE) will be available for purchase on Binance Wallet through PancakeSwap from 8:00 to 10:00 (UTC) on May 27, which is 16:00 to 18:00 Beijing time. Users need to use Binance Alpha points to participate, and there will be an additional 16 million ELDE for promotional activities in the future. Specific details will be announced soon.

Binance: You need at least 198 Alpha points to participate in the TGE project Elderglade (ELDE), and 15 points will be deducted for the event

According to the Binance announcement, the 19th TGE project Elderglade (ELDE) will be available for subscription from 16:00 to 18:00 (UTC+8) on May 27. Binance users with 198 or more Binance Alpha points can participate in the TGE event through the Alpha event page. Participating in this TGE event will deduct 15 points.

SBF's sentence was reduced by four years and he is expected to be released from prison by the end of 2044

According to Business Insider, Sam Bankman-Fried, who was sentenced to 25 years in prison for the FTX fraud case, is currently expected to be released on December 14, 2044, with his prison term reduced to less than 21 years. The sentence reduction is mainly based on "good behavior time" and participation in prison programs. In addition, he has been detained for two months before sentencing, which is also counted towards his sentence. His former partner, former Alameda CEO Caroline Ellison, also shortened her sentence to May 2026 in a similar way .

Circle denies reports it considered selling to Coinbase or Ripple

Stablecoin issuer Circle has officially responded to Fortune magazine's report, denying that it has had informal talks with Coinbase or Ripple on a sale. A company spokesperson stressed to PYMNTS that "Circle is not for sale and its long-term goals remain unchanged." It was previously reported that Circle insisted on a valuation of at least $5 billion in IPO and acquisition negotiations, and had rejected Ripple's initial offer of $4-5 billion.

Huma Finance now lists HUMA tokens and enables redemption and staking

Huma Finance announced that its decentralized PayFi network HUMA is now officially online. Users can claim $HUMA and participate in staking through the claim.huma.finance page from 20:30. Staking will receive rewards, holding PST or mPST can add Feather Points, and staking for 6 consecutive months will obtain Vanguard status. The claim window will close at 23:59 (UTC) on June 26.

Lagrange Labs to Launch LA Token Airdrop Registration on May 28

Lagrange Labs, a developer of the zero-knowledge proof network, announced that it will open LA token airdrop registration from May 28 to June 2. LA will be used as a utility token to pay for ZK proof fees and mortgages, and the initial airdrop allocation accounts for 10% of the total supply. To qualify for the airdrop, you must have participated in the Turing Roulette game and completed identity and uniqueness verification. The project is based on EigenLayer and plans to drive the entire proof ecosystem economic model through LA tokens.

Alpaca Finance announced the termination of all product operations after being delisted by Binance

Alpaca Finance announced that it will gradually terminate all product operations, plans to stop opening new positions in all liquidity pools in the first week of June 2025, and automatically close all remaining active positions by June 30. The project said that after Binance delisted its ALPACA tokens in April, the token liquidity and fund deployment capabilities were severely restricted, coupled with the current intensified competition in the DeFi field, and finally made the decision to shut down. The team said that the decision was made after careful internal evaluation and aimed to ensure the safe and orderly exit of user assets. Binance has not previously specified the reason for the delisting, but usually makes decisions based on a combination of factors such as project progress, liquidity and team commitment.

Coingecko data shows that the price of ALPACA tokens fell by 26.2% in 24 hours.

MoveDrop’s Movement Mainnet Phase is now open, and users can now claim MOVE tokens

According to the official announcement of Move Industries Foundation (formerly Movement Labs), MoveDrop's Movement mainnet phase is now open, and users can apply for MOVE tokens through the claim page. The ecosystem has launched four core functions: 1) The DeFi Spring plan provides 250 million MOVE incentives, and users can participate by depositing tokens in more than 10 partner applications; 2) The Parthenon system supports upgrading NFTs and obtaining rewards through on-chain interactions; 3) The NFT section has introduced well-known series such as Arkai and Capygo, and more projects will be launched through the Tradeport platform; 4) The ecological application matrix includes the upcoming Coral Finance (ecological points pre-sale), Canopy (income mining), CoScriptionAI (AI model trading), etc.

The team said that the launch of the mainnet marks a key progress in its construction of a modular blockchain ecosystem, and will continue to expand application scenarios in the future.

Cetus releases report on theft, will promote LP recovery plan and strengthen security audit

Cetus officially released a report on the theft of the CLMM liquidity pool on May 22. The attacker exploited a vulnerability in the open source library to lower the pool price to build a position, injected inflated liquidity by taking advantage of the overflow check defect, and then removed liquidity to extract assets many times, ultimately stealing funds. Cetus responded immediately, and with the support of most Sui verification nodes, urgently froze the attacker's two Sui wallet addresses containing the main stolen funds, and the remaining funds have been transferred across the chain by hackers. Currently, Cetus is working with the Sui security team and auditing agencies to review the contract and conduct a joint audit to ensure that the service will be restored after safety, and will also strengthen on-chain monitoring and auditing. At the same time, Cetus is developing an LP recovery plan, calling on Sui validators to support voting, and issuing an ultimatum to the attacker, and will continue to inform the community of progress in the future.

Sui to invest an additional $10 million to strengthen ecological security construction

In response to the recent Cetus protocol security incident, Sui Network announced that it will invest an additional $10 million to improve ecological security protection. The funds will be used for smart contract audits, bug bounty programs, formal verification, etc. The specific plan will be jointly formulated with the developer community. The team emphasized that the root cause of this incident was a vulnerability in the Cetus math library, not a security flaw in Sui's underlying layer or Move language, but admitted that this was the "growing pains" that must be faced in the development of the Sui ecosystem.

Sui said that a series of security plans have been launched, including strengthening developer support tools, optimizing security development practice guidelines, etc. Sui called on ecological project parties to learn lessons from the incident and improve overall security through code reinforcement.

Resolv will open airdrop applications today, but the airdrop will be in a pledged state and will take 14 days to unstake.

The Resolv Foundation officially announced that it will open airdrop applications today (May 27), but the RESOLV tokens after application will be in a pledged state (stRESOLV). stRESOLV cannot be traded or transferred, and can only be exchanged for RESOLV by unstaking. Unstaking requires a 14-day cooling-off period, which means that it will take 14 days (June 10) at the earliest to unlock the liquidity of the airdrop tokens.

Musk retweeted the meme coin Shoggoth, and its market value rose by more than 90% in a short period of time before falling back

According to GMGN market data, perhaps affected by Musk's retweet of AI Meme coin Shoggoth, Shoggoth's market value briefly exceeded 17 million US dollars, rising by more than 90% in nearly 1 hour, and has now fallen back to 12.47 million US dollars.

Investment and Financing

YZi Labs Announces Investment in Avalon Labs to Promote Bitcoin Financial Network Expansion

YZi Labs announced that it has invested in Avalon Labs, which is committed to building a Bitcoin-native on-chain capital market. Avalon currently serves more than 20,000 BTC, has more than 300,000 active users, and has a total locked value of more than US$500 million. Its Bitcoin stablecoin USDa has become the second largest CDP project on DeFiLlama. Avalon plans to use the new round of financing to promote compliance and institutional business expansion, aiming to become the first regulated Bitcoin on-chain financial institution.

Important data

A trader copied James Wynn and made a profit of $5.6 million in 3 days

According to Lookonchain, a trader went short when James Wynn was long, and shorted and longed James Wynn, making a profit of $5.6 million in just three days.

• On May 24, when James Wynn was long BTC, trader 0x2258 started shorting BTC and ETH;
• On May 25, when James Wynn closed his BTC long position, trader 0x2258 closed his short position and made a profit of $1.36 million.
• On May 25, when James Wynn switched from long to short and opened a BTC short order, trader 0x2258 went long on BTC and ETH;
• On May 26, when James Wynn closed his BTC short position, trader 0x2258 closed his long position and made a profit of $2.54 million.
• On May 26, when James Wynn went long on BTC again, trader 0x2258 went short on BTC and ETH again, with a current floating profit of $1.7 million.

Trader "BiozYn" liquidated Fartcoin and LAUNCHCOIN 4 hours ago, making a profit of approximately $6 million and $1.8 million respectively

According to Lookonchain monitoring, trader "BiozYn" sold all Fartcoin and LAUNCHCOIN 4 hours ago, making a profit of about $6 million and $1.8 million respectively. Previously, he had made a profit of about $3.3 million from trading ZEREBRO.

"ETH IC0 1 million ETH whale" transferred 999 ETH to OKX, worth about 2.58 million US dollars

According to @ai_9684xtpa, the “ETH ICO 1 million ETH whale” sold ETH again after a month, and recharged 999 ETH to OKX 2 minutes ago, worth $2.58 million, with a cost as low as $0.31. Currently, the whale still holds 53,619 ETH, worth $138 million; 24,000 of them were transferred to a new multi-signature address 22 hours ago, and may be sold in the near future.

James Wynn's Bitcoin longs increased to 5,676 BTC at a liquidation price of $108,010

According to Lookonchain, trader James Wynn continues to increase his long positions in Bitcoin and currently holds 5,676 BTC, worth about $623 million, with a liquidation price of $108,010. If BTC falls by 1.53%, it will trigger liquidation risk.