17 May Crypto News- Today’s Developments In The Crypto Markets
Crypto News– Over the past six months, more than 80% of the tokens listed on Binance have decreased in value compared to their initial listing price. Crypto and macro researcher Flow highlighted this trend, noting that out of 31 newly listed tokens, only five have appreciated. These include the new memecoin (MEME), Ordi token (ORDI), Solana-based Jupiter (JUP), Jito (JTO), and Dogwifhat (WIF), as detailed in Flow’s May 17 post on X.
Additionally, the Solana memecoin tool pump.fun has reported issues involving a former employee, and the U.S. Senate has passed a resolution urging the SEC to reconsider a crypto regulation affecting banks.
Pump.fun Claims Former Employee Responsible for $2M Exploit
Pump.fun, a memecoin creation tool, has reported that a former employee exploited their system, stealing approximately $1.9 million. This individual allegedly used their privileged access to manipulate the “withdraw authority” and compromise the protocol’s systems. As a result, trading on pump.fun was temporarily paused, impacting the total $45 million held in their bonding curve contracts.
The exploit involved the use of flash loans from the lending protocol Raydium. The former employee borrowed Solana (SOL) and used it to purchase as many coins as possible. When these coins reached 100% on their respective bonding curves, the exploiter gained access to the bonding curve liquidity, allowing them to repay the flash loans.
In a series of cryptic posts on X (formerly Twitter), a user named STACCoverflow hinted at their involvement, claiming they were about to change the course of history and expressing indifference towards the consequences, noting they were already fully doxxed.
Pump.fun has stated that they are collaborating with law enforcement but did not name the former employee involved.
US Legislators Approve Resolution to Revoke SEC Regulation on Financial Institutions
The United States Senate has passed a joint resolution urging the SEC to reverse a rule affecting financial institutions that engage with digital asset firms.
On May 16, Senators voted to nullify the Commission’s Staff Accounting Bulletin No. 121, which mandates that banks include customers’ crypto balances on their balance sheets.
According to the Blockchain Association, a crypto-focused advocacy group, the vote sends a strong signal that both houses of Congress, across the political divide, clearly disapprove of this rule.
However, despite the resolution’s approval, President Joe Biden has indicated that he intends to veto the bill in order to protect investors in crypto-asset markets and to safeguard the broader financial system.
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