Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…

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Last updated: 

July 8, 2025

Tether, the issuer of the world’s largest stablecoin USDT, has made a new investment in Crystal Intelligence, a blockchain analytics firm.

In a blog post, Tether shares its growing focus on improving transparency and combating illicit use of stablecoins across blockchain networks.

Crystal Intelligence, originally launched by blockchain software firm Bitfury, provides data-driven tools for analyzing blockchain transactions. The firm is used by law enforcement, regulators, and financial institutions to detect and investigate suspicious crypto activity.

With this investment, Tether said it aims to deepen its collaboration with Crystal and further integrate advanced analytics into its compliance and monitoring systems.

Building on Past Collaboration: Scam Alert Platform

Earlier this year, the two firm’s launched Scam Alert, a public platform that flags wallet addresses linked to fraud, hacks, and other malicious activity. The platform is designed to enhance transparency and give the crypto community and regulators more visibility into bad actors.

Through the Scam Alert initiative, Tether and Crystal said they have already provided insights into addresses associated with phishing schemes and other illicit activity.

The continued partnership will likely lead to broader data-sharing efforts and more sophisticated tools aimed at preventing criminal use of stablecoins.

A Proactive Approach to Stablecoin Risk

Tether said it has frequently faced criticism for its role in the broader crypto space, particularly regarding the potential misuse of its USDT token in illicit finance. However, this investment shows a more proactive and cooperative approach to addressing regulatory concerns.

“We believe that combining Tether’s resources with Crystal’s analytics capabilities will significantly enhance our ability to identify and respond to illicit activities,” said Tether’s CEO Paolo Ardoino.

The company has also emphasized its ongoing commitment to working closely with global regulators and law enforcement agencies to ensure its stablecoin remains a safe and transparent tool for global finance. As the demand for stablecoins continues to grow, so does the need for stronger compliance frameworks.

Tether Unveils Plans for Decentralized AI Platform

Tether is expanding beyond stablecoins and into artificial intelligence with the upcoming launch of Tether AI, a decentralized, open-source AI platform designed to run on peer-to-peer networks.

Unveiled by CEO Paolo Ardoino on May 5, Tether AI will support direct payments in USDT and Bitcoin, and will operate without centralized servers or API keys.

It’s described as a modular AI runtime capable of running on any device, offering developers greater privacy, autonomy, and security.

At its core is a concept called “Personal Infinite Intelligence”, suggesting customizable AI agents tailored to user needs and hardware.

Tether’s in-house AI models are already powering tools like a translation service, voice assistant, and Bitcoin wallet assistant, according to Ardoino.

Solana’s largest decentralized exchange aggregator, Jupiter, has decided to halt all community voting through next year and keep its governance Treasury sealed until 2027, citing community burnout and a need to prioritize building new products.

The move temporarily disables one of the main utilities for Jupiter’s native token, JUP, which powers governance proposals and decisions within the Jupiter DAO.

Voting activities will be on hold until at least the end of 2025, according to a statement shared by team member Kash Dhanda.

He wrote:

“Recently, one thing has become clear: the current DAO structure isn’t working as intended. We hear the complaints. We see the breakdown in trust. We feel the perpetual FUD cycle that grows with every vote.”

The statement added that the team intends to shift energy away from frequent governance votes and toward strengthening the project’s product suite and market position.

The governance pause comes as Jupiter’s DEX remains a major player on Solana, with more than $2.2 billion locked on the platform and daily fees averaging $1.6 million. It handles upwards of 80,000 token swaps each day, serving over 18,000 daily active traders.

However, Jupiter’s aggregator has lost momentum in recent months, with user traffic dropping by up to 60% and competitors like PumpSwap dominating the meme coin niche, now accounting for a majority of that trading volume on Solana.

Treasury closed until 2027

Under the new plan, the DAO’s fund, known internally as the Litterbox Trustm will remain inaccessible for new spending or budget proposals for the next two years.

Revenue from staking services such as jupSOL will continue to feed the Treasury, but fresh JUP minting for workgroups and governance rewards has been suspended.

Regular staking will still be available to token holders, with about 50 million JUP reserved for ongoing staking incentives. Aside from an upcoming 700 million token distribution, part of the final phase of the Jupuary airdrop, no additional JUP emissions are planned.

The team expects the break in governance rewards to help reduce selling pressure on the token, which has recently hovered near annual lows of around $0.40.

A redesigned governance structure is set to be introduced in 2026, aiming to address past disputes and streamline decision-making before the Treasury fully reopens the following year.

Mentioned in this article

Binance co-founder Changpeng “CZ” Zhao proposed creating a dark pool perpetual swap decentralized exchange (DEX) to prevent market manipulation.

In a June 1 X post, Zhao said that he has “always been puzzled with the fact that everyone can see your orders in real-time on a DEX.”

“The problem is worse on a perp DEX where there are liquidations,” he said.

Zhao added, “If you’re looking to purchase $1 billion worth of a coin, you generally wouldn’t want others to notice your order until it’s completed.” This is to prevent front-running and maximum extractable value (MEV) bot attacks, which can result in increased slippage, worse prices and higher costs.

His comments follow the liquidation of nearly $100 million in Bitcoin long positions on Hyperliquid reportedly held by a trader known as James Wynn. The event, which occurred after Bitcoin fell below $105,000, sparked claims on X that some users had coordinated to “hunt” Wynn’s liquidation.

One X user claimed that Tron co-founder Justin Sun showed interest in participating, but the claim remains unconfirmed. He also went so far as to invite Eric Trump, the son of the United States’ President Donald Trump, to the group.

Related: Financial freedom means stopping crypto MEV attacks — Shutter Network contributor

What are dark pools?

Zhao said that “large traders in TradFi use dark pools, often 10 times bigger” than traditional, transparent pools. Dark pools are private trading venues where large orders are hidden from public view until after they are executed.

This prevents front-running, slippage and MEV attacks by concealing order size, price and intent. Still, implementing decentralized dark pools would require complex systems such as zero-knowledge proofs (ZK-proofs) or delayed settlement mechanisms.

Maria Carola, CEO of instant exchange StealthEX, told Cointelegraph that “the fundamental challenge in building a dark pool-style perp DEX is achieving both privacy and verifiability.” She noted that ZK-proofs and encrypted order matching are promising avenues for development. She added:

“I think one concrete approach is leveraging zk-SNARKs or zk-STARKs to validate trade execution and settlement without revealing trade details.“

The obstacles are not just technical in nature. Carola highlighted that “launching an onchain dark pool, especially for perpetuals, enters a complex regulatory landscape.”

Related: Protecting Web3 users’ integrity by preventing malicious MEV — Here’s how

Trade privacy is critical to derivatives

Zhao argued that privacy is particularly important in derivatives markets. He said public visibility of liquidation levels exposes large traders to coordinated attacks that could force premature liquidation:

“If others can see your liquidation point, they could try to push the market to liquidate you. Even if you got a billion dollars, others can gang up on you.“

The Binance co-founder admitted that there are counter-arguments to such designs, with the added transparency potentially allowing market makers to absorb large orders. He said that this is “possibly true.”

“I won’t get into an argument on which is right or wrong. Different traders may prefer different types of markets,“ he said.

StealthEX’s Carola added that “opacity is a double-edged sword,” noting that it reduces front-running, but “also obscures manipulation attempts, especially in a leveraged environment.” “To address this, a ‘dark’ perp DEX must implement adaptive risk engines and behavioral anomaly detection, ideally with cryptographic accountability baked in,“ she said.

Zhao concluded by encouraging developers to launch an onchain dark pool decentralized exchange with perpetual swaps. He said this could be achieved “either by not showing the orderbook, or even better, not showing deposits into smart contracts at all, or until much later.”

Magazine: How crypto bots are ruining crypto, including auto memecoin rug pulls

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The US Securities and Exchange Commission (SEC) has unveiled plans to host four more crypto-focused roundtables in Washington, D.C., as part of its broader initiative to reshape digital asset regulation.

According to a March 25 statement, these sessions will explore key areas such as crypto trading, custody, tokenization, and DeFi.

The first event, Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading, is set for April 11. Discussions on custody, tokenization, and DeFi will follow on April 25, May 12, and June 6.

All roundtables will be available via live stream on the SEC’s website to encourage public engagement.

These events are part of the Commission’s ongoing effort to modernize its oversight of the crypto sector. Since launching its Crypto Task Force, the financial regulator has emphasized the need for balance—protecting investors while supporting innovation.

The initiative builds on the Commission’s first crypto roundtable on March 21. Despite varying opinions, participants shared a common demand—regulatory clarity. The dialogue emphasized the need for updated policies that better reflect the unique challenges of crypto markets.

Why SEC roundtables?

According to the SEC, the planned roundtables would help the “Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.”

SEC Commissioner Hester Peirce, who leads the Crypto Task Force, stressed the importance of direct engagement with industry experts. She noted that the sessions offer meaningful debate opportunities, helping shape a more effective regulatory path forward.

According to her:

“The Crypto Task Force roundtables are an opportunity for us to hear a lively discussion among experts about what the regulatory issues are and what the Commission can do to solve them.”

Meanwhile, this development comes amid a dramatic shift in the SEC’s stance under the Trump administration.

The agency has dismantled its crypto-enforcement program and dropped several high-profile cases and investigations involving firms like Coinbase, Kraken, Ripple, Gemini, and OpenSea.

The changes point to a significant transition—from broad enforcement actions to a clearer, more structured regulatory environment for the US crypto industry.

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Bybit announced a bounty platform designed to combat crypto-related crime titled LazarusBounty.com following.

The initiative employs a structured, four-pronged approach to identifying illicit activity, holding hackers accountable, and enhancing crypto security. 

The effort follows a hack perpetrated against Bybit on Feb. 21, which resulted in the loss of nearly $1.5 billion in Ethereum (ETH) and ETH synthetic tokens. According to blockchain security firm Elliptic, this is the largest hack in history.

War against Lazarus

LazarusBounty.com consolidates blockchain security data from leading firms, including Chainalysis, Arkham, and GoPlus, into a unified security repository. This real-time database provides investigators and the broader community with critical insights to detect, analyze, and counteract illicit activities. 

LazarusBounty.com mobilizes blockchain forensic specialists, such as ZachXBT and Yu Xian of SlowMist, to conduct in-depth investigations when significant breaches occur.

These experts have forensic tools and methodologies to trace stolen funds, identify attackers, and coordinate responses with law enforcement and affected platforms. The initiative is a proactive deterrent against cybercrime, strengthening the industry’s ability to respond to security threats.

Bybit CEO Ben Zhou said:

“In today’s blockchain landscape, transparency isn’t just a principle — it’s our most potent weapon against cybercrime. With LazarusBounty.com, we are taking a stand to ensure that every transaction is visible and every hacker is held accountable. Our multifive-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift.”

Moreover, LazarusBounty.com has a bounty leaderboard that tracks and rewards contributions based on the effectiveness of efforts to recover stolen funds. The site catalogs verified intelligence, recognizing security researchers and ethical hackers who help unmask cybercriminals. 

An automated notification system enhances response times by immediately alerting exchanges and platforms to freeze illicitly obtained funds before they can be laundered.

Bybit has also assembled a security advisory board comprising chief security officers from major blockchain networks. This decentralized council collaborates to enhance security protocols, share intelligence, and reinforce protective measures across the crypto ecosystem.

Tracking the funds

According to on-chain data highlighted by Arkham, the funds extracted in the Bybit hack are being swapped for Bitcoin (BTC) and DAI via the multichain protocol Thorchain and the OKX Web3 Swap feature. So far, the hackers swapped $6.2 million to BTC.

Blockchain analytics platform SpotOnChain also noted that roughly $250 million has already been laundered.

Due to the structure of the attack and the subsequent laundering process, analysts suspect that the North Korean Lazarus Group is behind the Bybit hack.

Elliptic highlighted that Lazarus uses various layering tactics, including sending funds through numerous crypto wallets, using cross-chain bridges to transfer assets across blockchains, converting assets via decentralized exchanges or swap services, and leveraging mixers like Tornado Cash.

These techniques are intended to buy time for launderers before attempting to cash out the illicit funds. Lazarus seems to be currently performing the third step, using multichain solutions to layer funds.

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