A US grand jury has indicted the founder of blockchain startup Amalgam Capital Ventures over allegations he defrauded investors out of over $1 million with a fake blockchain.

Jeremy Jordan-Jones was arrested and indicted on May 21 and charged with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft, the Department of Justice said on May 21.  

Manhattan US Attorney Jay Clayton claimed Jordan-Jones “touted his company as a groundbreaking blockchain startup,” but alleged that, in reality, the “company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”

FBI Assistant Director Christopher Raia alleged that Jordan-Jones defrauded investors of more than 1 million dollars through “misrepresentations of his purported company’s capabilities, partnerships, and investment intentions.”

Raia claimed the Amalgam founder’s “blatant lies” funded his personal lifestyle at the expense of unknowing victims.

An excerpt from the indictment of Jeremy Jordan-Jones. Source: US Department of Justice

According to an indictment filed in a Manhattan federal court, from January 2021 to November 2022, Jordan-Jones deceived investors and financial institutions using fabricated documents, fake sports partnerships, and misleading claims, ultimately misappropriating over $1 million for personal use.

Related: Ex-Cred execs plead guilty to wire fraud over $150M crypto collapse

Amalgam claimed to offer point-of-sale systems and blockchain-based payment and security solutions, the filing states.

The indictment alleged the firm had “no operable products, few, if any, customers, and zero legitimate business partnerships.”

The filing alleged that instead of channeling the funds into tech development and crypto exchange listings as promised, Jordan-Jones spent the money on luxury vehicles, high-end vacations, clothing and fancy restaurants in Miami. 

Charges carry decades in prison

Jordan-Jones was also accused of submitting a fake bank statement claiming Amalgam held over $18 million in order to secure a company credit card, but prosecutors claimed there were no funds in the bank account and it had been closed in late 2021. 

Wire fraud and security fraud carry potential penalties of up to 20 years in prison per count, while making false statements to a bank carries up to 30 years.

Jordan-Jones was also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

The government is seeking forfeiture of any property or money traceable to the fraud, including substitute assets if the original funds are unavailable.

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A crypto whale has expanded an existing 40x leverage long Bitcoin bet to $1.1 billion on the decentralized exchange Hyperliquid, which has stunned the crypto community and is believed to be the first-ever position exceeding $1 billion on the platform.

The X account “James Wynn” claims to be behind the position, which is now up $36 million on the trade, data from Hypurrscan’s block explorer shows.

A $28.4 million margin position was used across several trades to increase the Bitcoin (BTC) position, now worth $1.13 billion. The average Bitcoin entry price was $108,065.

Perp futures positions of wallet address “0x507.” Source: Hypurrscan

“He did it fellas,” crypto analyst Sigma^2 wrote on X. “First position [on Hyperliquid] to exceed $1B.”

Wynn’s long position was at a loss of about $16.3 million before it shot back up as Bitcoin broke through $110,000 on May 21. The position sits comfortably above its liquidation price of $103,790, as Bitcoin has well surpassed $110,000 and neared $112,000 in early trading on May 22.

HyperDash data shows the crypto whale started closing some Bitcoin long positions when Bitcoin was trading around $106,000 on May 20.

Change in profit and loss (PnL) from Wynn’s wallet over the last 24 hours. A small amount of that PnL includes a position held in kPEPE. Source: HyperDash

“That mfer has nerves of steel,” crypto influencer Follis wrote, while others called the trader an “absolute mad man” or questioned his sense in making the trade.

Who is “James Wynn”?

Wynn describes himself as a high-risk leverage trader and memecoin maxi who supposedly called Pepe (PEPE) a buy when its market cap was at $600,000.

Related: Is Bitcoin price close to a cycle top? — 5 indicators that help traders decide

The crypto whale started using Hyperliquid two months ago, depositing $4.65 million worth of the stablecoin USDC (USDC) onto the platform, Hypurrscan data shows.

They’ve completed 32 trades since then, which have included long positions on XRP (XRP), the Official Trump (TRUMP) token, Fartcoin (FARTCOIN) and Toncoin (TON).

Hyperliquid’s DEX is the flagship product on the Hyperliquid layer 1 blockchain, which also offers spot trading and borrowing and lending services, among other things.

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BlackRock’s iShares Bitcoin Trust (IBIT) has seen its largest inflow in the past two weeks as traders allocate to US spot Bitcoin exchange-traded funds (ETFs) to scoop up the rocketing cryptocurrency.

IBIT’s May 21 net inflows hit $530.6 million, its biggest single-day net inflow since it took in $531.2 million on May 5, according to Farside Investors. The ETF hasn’t had an outflow since April 9.

In one day alone, IBIT has accumulated over 10 times the amount of Bitcoin (BTC) mined over the same timeframe, with it scooping up 4,931 BTC against just 450 BTC produced for the day.

IBIT also saw its largest volume day since January, according to the ETF tracking X account Trader T. 

“Given trading volume today, expect these inflow numbers to increase,” said ETF Store president Nate Geraci. 

BlackRock IBIT net flows. Source: Trader T

The total inflow figure for all 11 spot ETFs was $607.1 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) seeing the second-most inflows for the day at $23.5 million. 

Related: BlackRock’s Bitcoin ETF posts $356 million inflows, marking the longest streak of 2025

Bloomberg ETF analyst Eric Balchunas called the ETF inflows a “classic feeding frenzy” caused by Bitcoin’s recent price rally, which has seen it extend to nearly $112,000 in early May 22 trading. 

Balchunas added that the last time ETF trading volumes soared to current levels was in January, around Bitcoin’s then all-time high. “All the Bitcoin ETFs are elevated, most are gonna see 2x their average flows incoming,” he said.

IBIT trading volume surges to January levels. Source: Eric Balchunas 

The big ETF inflow and volume day came as Bitcoin notched a new all-time high above $110,000 late on May 2, and it has continued to rally to a top of just under $111,897 on Coinbase, according to TradingView.

Bitcoin ETF pile in to continue 

Jeff Mei, operations chief at the crypto exchange BTSE, told Cointelegraph in a note that investors are “crowding into Bitcoin ETFs,” which saw $3.6 billion in net inflows in May.

“We believe this trend will continue as long as companies continue to tap public markets for more capital,” he added. “This could even accelerate if the Fed decides to cut interest rates in the coming months.” 

Jupiter Zheng, HashKey Capital partner, anticipated more volatility once Bitcoin breaks above $110,000, telling Cointelegraph that it was “entering uncharted price discovery territory, while unstable geopolitical and macroeconomic factors lead investors to consider the long-term value of Bitcoin.”

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest

Decentralized finance platform Synthetix has axed its $27 million plan to acquire crypto options platform Derive after negative community feedback.

A Synthetix spokesperson told Cointelegraph on May 22 that its acquisition proposal, pitched to its community and to Derive’s, “did not resonate,” and both projects agreed to “step back from the proposed acquisition.”

Synthetix said on May 14 that it would acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million, pending approval from both communities. 

Synthetix strategy lead Ben Celermajer told Cointelegraph that other community concerns were the three-month token lock-up period and the deal’s price, part of which Synthetix tried to address with no lock-up for holders of less than 1 million DRV. 

“While we understand the commercials did not resonate with all community members, a number of holders from both communities believed the deal was fair and acceptable,” he said.  

“However, we acknowledge that the response fell short of expectations, and we have no intention of moving forward with something that was intended to be a collaborative and constructive endeavor.” 

Celermajer said Synthetix will continue evaluating opportunities for building a decentralized derivatives platform on the Ethereum mainnet.

Source: SynthetixDerive community concerned on deal’s benefits

Derive community members expressed concerns over the deal on the project’s forum, particularly around the token exchange rate and the deal’s overall benefit to the platform.

Derive user “Ramjo” wrote on May 14 that the token exchange rate is “a poor reflection of the value of derive as a platform,” and the “equivalent of selling the bottom and locking in lows.” 

Related: Synthetix founder threatens SNX stakers with ‘the stick’ to fix SUSD depeg

Another user, “AlvaroHK,” called the deal “difficult to justify,” as they claimed that Derive generates more revenue than Synthetix, and there was no clause in the agreement to stop Synthetix from “printing millions of new tokens and keep diluting us.”

AlvaroHK claims Derive generates more revenue than Synthetix, which makes the deal a tall order to justify. Source: Derive

“I have found the guidance that Synthetix plans to issue an additional 170 million SNX to increase its supply to 500 million from 330 million,” AlvaroHK added in a follow-up post.

“Why this information is not disclosed when asked about it? It will dilute an additional 60% off the value of the offer made to Derive,” they added. 

Derive, which Synthetix started in 2021 as Lyra, operated as a decentralized options protocol but remained part of the Synthetix ecosystem.

It eventually rebranded to Derive and took steps to operate independently from Synthetix, such as moving away from using Synthetix’s sUSD stablecoin and liquidity.

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

Bitcoin has topped $110,000 for the first time in a recent rally that has seen it gain 3% over the past day to break through past price highs from earlier this year.

Bitcoin (BTC) hit a new all-time high of $110,788.98 on Coinbase late on May 21, just before 11:30 pm UTC, according to TradingView.

Bitcoin has gained around 3% over the last 24 hours, surpassing its all-time high of $109,458 that it hit earlier in the day, which was the first time it traded above its previously long-held Jan. 20 peak.

The world’s largest cryptocurrency has now gained 17.5% so far this year and is up 47% since its slump to $75,000 on April 7, triggered by US President Donald Trump enacting sweeping tariffs that tanked global markets.

Bitcoin’s new peak comes as US stock markets were rattled by a weak 20-year bond auction, which sent treasury yields soaring on May 21. The S&P 500 fell 80 points in half an hour while the Nasdaq and Dow Jones mirrored the move, with all US indexes trading down on the day. 

Bitcoin’s weekly chart shows it has climbed out of a slump earlier this year. Source: TradingView

Caroline Bowler, CEO of the Australian crypto exchange BTC Markets, said in a note to Cointelegraph that Bitcoin’s new high “reflects a mature interest in digital assets worldwide, not the speculative surge seen in past cycles.”

“Today’s demand is driven by institutional-grade infrastructure and stronger regulatory clarity. Investor sentiment has shifted decisively, reflecting institutional-style allocations,” she added. 

According to Google Trends, searches for Bitcoin have been trending down since November and are at lows typical of crypto bear markets, indicating a low retail interest in the cryptocurrency.

Meanwhile, the Crypto Fear & Greed Index, which tracks market sentiment, was at a score of 72 out of 100 on May 22, indicating “greed.” The index is down from its 2025 high of 84 on Jan. 22, which came two days after Trump’s inauguration.

Related: How high can Bitcoin price go?

Edward Carroll, head of global markets and corporate finance at MHC Digital Group, told Cointelegraph in a note that growing demand driving the price higher in the medium-term could push Bitcoin to at least $160,000 by the fourth quarter of this year and $1 million by 2030.

Trader’s leveraged Bitcoin bet tops $1.1B

Meanwhile, leverage trader James Wynn’s Bitcoin long position on the crypto platform Hyperliquidity has become the largest onchain margin trade when it exceeded $1.1 billion amid Bitcoin’s price peak. 

The entry point for the 40x leveraged position was $108,065 and it has an unrealized profit of $20 million. It will be liquidated if Bitcoin’s price falls to $103,800.

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest

Crypto influencer Anthony Pompliano’s fintech-focused blank-check company, ProCap Acquisition Corp (PCAPU), rose 7% on its debut Nasdaq listing after a last-minute upsizing of its initial public offering.

ProCap had boosted its IPO from $200 million to $220 million on May 20, a day before its public launch, pricing its 22 million shares on offer at $10 each.

ProCap shares closed the May 21 trading day up 7% at $10.70, which continued with a 1.6% bump after-hours to $10.87, Yahoo Finance data shows.

PCAPU’s share price closed up 7% on its debut trading day. Source: Yahoo Finance

The company has offered underwriters a 45-day option to buy up to 3.3 million additional shares at the IPO price to cover extra demand.

ProCap said in an April 30 regulatory filing that the firm will be a Special Purpose Acquisition Company (SPAC) that will look to invest in, and potentially take public, companies in the financial services, digital asset, asset management or healthcare sectors.

Pompliano is one of the crypto industry’s biggest cheerleaders, hosting a Bitcoin and finance-focused podcast and leading investment firm Professional Capital Management.

Pompliano told CNBC on May 21 that he had been itching to take a company public over the last five years but hadn’t seen enough demand in the private market until six months ago, citing recent changes to the US regulatory landscape affecting financial markets.

Related: Texas House passes strategic Bitcoin reserve bill

He hinted that his blank-check firm would invest in crypto-native and traditional finance businesses as he expects the sectors to converge in the coming years.

“The reason why I use the term financial services is basically the new digital world and the old incumbent world are all merging.”SPACs haven’t been done right in the past, Pomp says

On CNBC, Pompliano was pressed on why he chose to make ProCap a SPAC, which have historically seen high failure rates due to sponsor conflicts, dilution, speculative valuations and regulatory scrutiny.

Pompliano said SPACs have gotten a bad reputation because companies often treat them like public venture capital, targeting high-growth companies that are losing a lot of money at high valuations.

Pompliano noted he has put “millions of dollars” of his own money on the line.

“We’ve got real skin in the game,” Pompliano said, adding: “I’m taking a huge reputation risk.”

Brent Saunders, CEO of health products firm Bausch + Lomb, also joined as a strategic adviser. Saunders completed over $300 billion worth of mergers and acquisitions over the last 17 years.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Australia’s financial regulator will seek the High Court’s permission to appeal a lower court’s ruling favoring fintech firm Block Earner, which found the company’s crypto-linked fixed-yield earning service is not a financial product.

The Australian Securities and Investment Commission said on May 21 that it wants to ask the High Court of Australia to clarify what the definition of a financial product is and clarify the circumstances when an interest-earning product and the conversion of assets from one form to another are regulated.

“The definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,” the watchdog said.

“This clarification is important as it applies to all financial products and services whether they involve crypto-assets or not.”

On April 22, Federal Court Justices David O’Callaghan, Wendy Abraham and Catherine Button found that Block Earner’s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme or a derivative under the Corporations Act.

ASIC said the court will consider its application. Special leave is required in an appeal to the High Court, and it’s only granted in cases where it would answer significant legal questions or matters of public interest.

A Block Earner spokesperson told Cointelegraph the matter has now escalated to a “broader legal question” around the definition of a financial product, which extends “well beyond Block Earner, and the crypto sector.” 

“We believe the Full Federal Court’s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,” the spokesperson said. “We remain confident in the soundness of that judgment and will respond to ASIC’s application through the appropriate legal channels.” 

Legal saga ongoing since 2022

ASIC first launched legal proceedings against Block Earner in November 2022, arguing the company needed a financial services license to offer its yield product, which was available from March 17, 2022, until the company shut it down on Nov. 16, 2022.

Related: Australia outlines crypto regulation plan, promises action on debanking

ASIC was arguing Block Earner needed a financial services license to offer its crypto-linked fixed-yield earning product. Source: ASIC

In February 2024, an Australian court initially ruled the fintech firm would need a financial services license to operate its crypto yield-bearing products. 

Another June 2024 ruling in Australia’s Federal Court released Block Earner from any financial penalties because it had “acted honestly” and pursued its legal opinions before launching the products, which ASIC appealed.

Block Earner appealed the Federal Court’s decision that it needed a financial services license on July 9, 2024. 

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

VanEck plans to launch a private digital assets fund in June targeting tokenized Web3 projects built on the Avalanche blockchain network, the asset manager said in a statement shared with Cointelegraph.

The VanEck PurposeBuilt Fund, available only to accredited investors, aims to invest in liquid tokens and venture-backed projects across Web3 sectors, including gaming, financial services, payments, and artificial intelligence. 

Idle capital will be deployed into Avalanche (AVAX) real-world asset (RWA) products, including tokenized money market funds, VanEck said.

The fund will be managed by the team behind VanEck’s Digital Assets Alpha Fund (DAAF), which oversees more than $100 million in net assets as of May 21. 

“The next wave of value in crypto will come from real businesses, not more infrastructure,” Pranav Kanade, portfolio manager for DAAF, said in a statement.

RWAs are among crypto’s fastest-growing segments. Source: RWA.xyz

Related: Tokenized stocks could top $1T in market cap — Execs

Thematic crypto funds

VanEck’s PurposeBuilt Fund is the latest in a series of funds from the asset manager and rivals designed to offer exposure to projects and companies in fast-growing segments of Web3. 

On May 14, VanEck launched a new actively managed exchange-traded fund (ETF) to invest in stocks and financial instruments providing exposure to the digital economy.

In April, VanEck launched another ETF investing in a passive index of companies operating in the crypto space. 

Asset managers such as VanEck are requesting the US Securities and Exchange Commission’s (SEC) permission to list upward of 70 crypto ETFs. 

The wave of ETF filings is in response to US President Donald Trump softening the agency’s regulatory stance toward crypto after Trump took office in January.

Avalanche TVL as of May 21. Source: DefiLlamaAvalanche RWA ecosystem

Avalanche has emerged as a hub for real-world assets (RWAs) and other institutional-oriented crypto projects.

Its interrelated networks, called subnets, allow institutions to run Ethereum-style smart contracts in a controlled environment. On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, targeting institutional investors

Avalanche has around $1.5 billion in total value locked (TVL) as of May 21, according to data from DefiLlama. 

“We’re seeing a shift away from speculative hype toward real utility and sustainable token economies,” John Nahas, chief business officer at Ava Labs, said in a statement.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions — Sky Wee

A Democratic representative in the US Congress will support a blockchain bill at a time when many left-leaning lawmakers are blocking crypto-related pieces of legislation due to concerns with President Donald Trump’s potential conflicts of interest.

In a May 21 notice, Minnesota Representative Tom Emmer said he had reintroduced the Blockchain Regulatory Certainty Act, a bill that “solidifies that digital asset developers and service providers that do not custody consumer funds are not money transmitters.” Emmer, a Republican, said Democratic Representative Ritchie Torres would co-lead the bill, making it a bipartisan effort in Congress.

“The Blockchain Regulatory Certainty Act reflects a thoughtful, bipartisan effort to get digital asset policy right,” said Torres. “While similar language was voted down in markup last Congress, we took that feedback seriously and returned with a smarter, sharper framework that protects innovation without compromising oversight.”

Reintroducing the Blockchain Regulatory Certainty Act on May 21. Source: Tom Emmer

Representatives of advocacy organizations, including the Crypto Council for Innovation, Solana Policy Institute, Digital Chamber, Coin Center, DeFi Education Fund and Blockchain Association, said they would support the proposed blockchain regulatory bill. It was unclear whether Emmer and Torres had a majority of votes in the House of Representatives for the legislation to pass.

Torres has supported many bills and policies favorable to the crypto industry since assuming office in 2021. Together with Emmer, he has led the Congressional Crypto Caucus to advance crypto-friendly policies in the House since March.

A bipartisan blockchain bill amid memecoin concerns?

Other Democratic House members, including Representative Maxine Waters, have suggested they intend to block any legislation related to crypto and blockchain until Republicans address Trump’s connections to the industry, such as his family’s stake in World Liberty Financial and his TRUMP memecoin. The president is planning to host a dinner with up to 220 people holding the most significant amounts of his memecoin on May 22.

Related: Interest groups, lawmakers to protest Trump’s memecoin dinner

Cointelegraph reached out to Torres’ office for comment but had not received a response at the time of publication.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Kristin Johnson of the US Commodity Futures Trading Commission (CFTC) has announced that she plans to depart the agency before 2026.

In a May 21 notice, Johnson said she planned to step down from the CFTC “later this year,” having completed her term, which ended in April. The commissioner filling a Democratic seat at the financial regulator had served since March 2022 after being nominated by former President Joe Biden.

In her farewell message, Johnson cited her work as a sponsor of the Market Risk Advisory Committee, which dealt with “nascent issues that arise with the introduction of decentralized financial products such as digital assets or cryptocurrency and other emerging markets.” 

CFTC Commissioner Kristin Johnson. Source: CFTCJohnson on X

Her departure could come before US President Donald Trump nominates a replacement and has them confirmed by a Senate majority. Commissioners Summer Mersinger and Christy Goldsmith Romero previously said they would step down on May 30 and May 31, respectively, and acting CFTC Chair Caroline Pham said she planned to move “to the private sector” if Brian Quintenz were to be the next Senate-confirmed head of the agency.

One position on the five-seat CFTC panel has been empty since the departure of former chair Rostin Behnam in February. Under CFTC guidelines, commissioners can continue to serve beyond the end of their terms until a “successor is appointed and has qualified,” provided it is before the next session of Congress.

Related: KuCoin’s settlement with CFTC in flux after Trump policy shift

CFTC shakeup amid proposals for crypto market structure

Johnson’s notice suggested that the entire leadership of one of the most significant financial regulators in the US could be replaced by Trump’s picks as early as 2026. The president nominated Quintenz to serve as CFTC chair in February, but the Senate had not moved for a vote to confirm him in more than three months. 

Along with the Securities and Exchange Commission (SEC), the CFTC has handled specific regulatory and enforcement issues related to digital assets. However, the lack of “clear rules of the road,” according to some lawmakers and industry leaders, has led to calls for a law establishing a digital asset market regulatory structure, clarifying the roles each agency would have to play.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered