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5 May 2026, 07:00

Crypto Firms In South Korea Raise Concerns Over AML Crackdown: Report

South Korean courts have been stepping in to block a wave of regulatory sanctions against the country’s biggest crypto exchanges — and now the industry is taking its fight to the rulemaking process itself. Industry Body Warns Of Reporting Overload The Digital Asset eXchange Alliance, known as DAXA, submitted formal comments opposing proposed changes to South Korea’s anti-money laundering framework. The group speaks for 27 registered virtual asset service providers, including the five largest exchanges in the country: Upbit, Bithumb, Coinone, Korbit, and Gopax. At the center of the dispute is a rule that would require exchanges to flag every overseas crypto transfer worth 10 million Korean won — roughly $6,800 — as a suspicious transaction, regardless of whether the transfer shows any sign of wrongdoing. DAXA says the math doesn’t work. Reports from South Korea’s five major platforms totaled around 63,000 suspicious transaction cases last year. Under the new rule, that number would climb to more than 5.4 million annually — an 85-fold increase. The alliance argues the volume would make meaningful compliance nearly impossible. DAXA also pushed back on a separate requirement to verify the accuracy of customer data, saying it goes beyond what the underlying law actually requires. The Financial Services Commission and the Financial Intelligence Unit jointly put forward the amendments on March 30. A public comment window runs through May 11, with final rules expected in July after regulatory and legal review. Three Exchanges Win Temporary Court Relief The proposed rule changes come as multiple exchanges are already battling sanctions tied to existing AML requirements. Upbit’s parent company, Dunamu, won a first-instance court ruling on April 9 that canceled a three-month partial business suspension. The sanction had been linked to alleged failures in customer due diligence and transactions with unregistered foreign platforms. Regulators appealed that decision on April 30, according to Yonhap News Agency. Bithumb followed a similar path. The Seoul Administrative Court agreed to pause enforcement of a six-month partial suspension while the main case works its way through the system. That sanction stemmed from an inspection conducted by the Financial Intelligence Unit that found alleged violations of South Korea’s Financial Information Act. Coinone faces both a three-month partial suspension and a fine of 5.2 billion won over AML-related failures. It too received a temporary halt on enforcement after filing a legal challenge. Exchanges And Regulators On Collision Course The pattern is hard to miss. South Korean authorities have been pushing harder on crypto AML enforcement, and the industry has been pushing back — in comment letters, in court, and through its trade group. The outcome of both the rulemaking process and the pending legal cases could shape how crypto compliance works across one of Asia’s most active digital asset markets. Featured image from Nathan Benn/Getty Images , chart from TradingView

5 May 2026, 06:57

ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows

Blockchain investigator ZachXBT has built a reputation for repeatedly calling out crypto platforms and entities he believes are involved in suspicious or illegal activity. In his latest allegation, he has turned attention to Tokenlon, a relatively lesser-known decentralized exchange with around 17,000 followers on X. Tokenlon Draws Scrutiny ZachXBT has alleged that a large share of trading activity on decentralized exchange Tokenlon may be tied to illicit sources. These include romance scams, human trafficking, investment fraud, and underground markets in China. He also mentioned Tokenlon’s co-founder, Ben He Bin, and suggested that possible future actions could be taken against Tokenlon and ImToken. In addition, the investigator also pointed to other platforms which he believes are connected to illegal fund flows, such as Butter Network, HiFiSwap, Bridgers/SWFT, and Tokenlon, calling for them to be prioritized for enforcement attention. A user shared that their friend’s mother was scammed out of 270 ETH, and the funds were reportedly sent to Tokenlon. In response, ZachXBT said he has seen many similar cases from victims. Although the platform presents itself as decentralized, he claimed that it does not fully function as one in practice. In response, Tokenlon acknowledged that it is aware of the discussions regarding illicit funds on-chain and their interaction with decentralized protocols and asserted that it does not custody user funds, while adding that transactions are publicly traceable on-chain. It maintained that it “absolutely does not facilitate crime.” “We recognize that permissionless infrastructure can be exploited. Combating this requires a “unified defense” across wallets, security firms, and law enforcement.” Decentralization Claims Questioned Interestingly, ZachXBT cited a 2022 report by Cryptoforensic Investigators, which questioned Tokenlon’s decentralization claims. It explained that while platforms like Uniswap and 1inch operate fully through immutable smart contracts, Tokenlon behaves differently in practice. The report said Tokenlon, linked to the imToken wallet and imToken PTE Ltd., allows users to swap Bitcoin through its “imBTC DApp.” According to its analysis, this setup resembles a centralized OTC service rather than a true decentralized exchange. It described a process where BTC is sent to Tokenlon-controlled wallets, recorded off-chain in their system, and later converted into imBTC before being swapped for USDT. The report further alleged that imBTC functions like a centralized asset pegged to Bitcoin, with Tokenlon retaining custody of the underlying BTC, similar to how stablecoin issuers manage reserves. Additionally, a 53-page working paper titled “How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering,” first posted on 28 March 2024, also found that around 57-60% of all Tokenlon swaps during 2022-23 involved addresses linked to scam networks. It claimed that victim funds in ETH or USDC often pass through Tokenlon and are later converted into USDT or DAI before reaching centralized deposit accounts. The post ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows appeared first on CryptoPotato .

5 May 2026, 06:00

Solana Co-Founder Warns AI Could Break Post-Quantum Crypto Schemes

Solana co-founder Anatoly Yakovenko has warned that the most pressing risk around post-quantum cryptography may not be quantum computers themselves, but the possibility that AI could expose weaknesses in the signature schemes designed to defend against them. His comments add a sharper edge to Solana’s recent quantum-readiness push, which has centered on Falcon signatures, migration planning and wallet-level resilience. The exchange began after developer Dean Little highlighted progress on a Solana Falcon implementation, saying version “0.1.2 now costs just ~173–183k CUs to verify,” with Lean and Kani proofs expected next. That prompted Yakovenko to suggest deeper native support inside Solana’s transaction architecture, writing : “Syscall to lift PDA is_signer to the transaction processor, charge fees to valid signers at the end of the block. Make it so, pls.” Solana’s Post-Quantum Plan Gets New Scrutiny The more consequential remark came shortly after, when Yakovenko framed the problem less as a simple migration from today’s cryptography to post-quantum signatures, and more as a security-design issue with unresolved unknowns. “I think the biggest risk is that pqc signature schemes will get broken by ai,” Yakovenko wrote. “We don’t know all the implementation footguns even, let alone the math footguns. So we need to support 2/3 wallets for them. @fusewallet or ideally natively with PDAs in the tx processor.” The point is notable because Solana’s official messaging on quantum readiness has been broadly confident. In an April 27 developer post, Solana said quantum computing remains “years away” and that, if the threat materializes, migration work is “well-researched, understood, and ready to deploy.” The post described a roadmap built around continued research, adoption of a post-quantum scheme for new wallets if needed, and migration of existing wallets to the selected scheme. Solana’s current research track has converged around Falcon , a post-quantum digital signature scheme identified independently by Anza and Firedancer, two major validator client developers in the Solana ecosystem. According to Solana, both teams reached the same conclusion: the network would need a compact post-quantum signature format suited to high-throughput blockchain use. Initial implementations are already available through Firedancer and Anza repositories, while Solana argues that the transition would be manageable and should not create a meaningful performance hit. Yakovenko’s warning does not directly contradict that roadmap. It narrows the focus. Rather than questioning whether Solana can migrate to post-quantum cryptography when necessary, he is pointing to the fragility of assuming any single new cryptographic scheme will remain safe once both implementation details and mathematical assumptions are exposed to increasingly powerful AI-assisted analysis. That distinction matters for builders. The quantum-readiness debate often treats post-quantum signatures as the endpoint: once a chain can verify Falcon or a similar scheme efficiently, the network has a path forward. Yakovenko’s comments suggest the safer architecture may be one that avoids dependence on one scheme, even after migration. His preference for “2/3 different signature schemes” indicates a defense-in-depth model, where wallets or transaction processors could require threshold approval across multiple cryptographic primitives.Michael Egorov, founder of Curve Finance, asked whether “proper formal verification” might help address the concern. Yakovenko’s reply was cautious: “If we know exactly what to verify. I’d still like 2/3 different signature schemes.” That response captures the unresolved part of the debate. Formal verification can reduce implementation risk when the target properties are precisely defined. Yakovenko’s concern is that the industry may not yet know all the relevant failure modes, especially if AI systems become better at finding edge cases, deployment flaws or deeper mathematical weaknesses in post-quantum constructions. At press time, SOL traded at $84.03.

5 May 2026, 03:28

Ethereum Price Coiling Tight, Explosive Move Could Trigger Anytime

Ethereum price started a fresh increase and remained stable above $2,355. ETH is now consolidating and might aim for more gains if it clears $2,400. Ethereum started a steady increase above the $2,365 zone. The price is trading above $2,350 and the 100-hourly Simple Moving Average. There is a bullish trend line forming with support at $2,350 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to move up if it stays above the $2,300 zone. Ethereum Price Looks To Claim $2,400 Ethereum price managed to stay above the $2,320 support and started a fresh increase, like Bitcoin . ETH price gained pace for a move above $2,340 and $2,350. The price even climbed toward $2,380. A high was formed at $2,398, and the price is now consolidating gains . There was a minor decline below the 23.6% Fib retracement level of the upward move from the $2,220 swing low to the $2,398 high. Ethereum price is now trading above $2,360 and the 100-hourly Simple Moving Average. There is also a bullish trend line forming with support at $2,350 on the hourly chart of ETH/USD, If the bulls remain in action above $2,350, the price could attempt another increase. Immediate resistance is seen near the $2,380 level. The first key resistance is near the $2,400 level. The next major resistance is near the $2,420 level. A clear move above the $2,420 resistance might send the price toward the $2,500 resistance. An upside break above the $2,500 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,550 resistance zone or even $2,565 in the near term. Another Pullback In ETH? If Ethereum fails to clear the $2,400 resistance, it could start a downside correction. Initial support on the downside is near the $2,350 level and the trend line. The first major support sits near the $2,330 zone. A clear move below the $2,330 support might push the price toward the $2,310 support or the 50% Fib retracement level of the upward move from the $2,220 swing low to the $2,398 high. Any more losses might send the price toward the $2,285 region. The main support could be $2,250. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is now above the 50 zone. Major Support Level – $2,350 Major Resistance Level – $2,400

5 May 2026, 02:52

Bitcoin Price Holds Firm Near Highs, More Gains Could Follow

Bitcoin price started a fresh increase and cleared the $80,500 zone. BTC is consolidating and might aim for more gains above the $81,200 level. Bitcoin managed to stay above $78,500 and started a fresh increase. The price is trading above $78,800 and the 100 hourly simple moving average. There is a bullish trend line forming with support at $79,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair might extend gains if it stays above the $79,200 and $78,800 levels. Bitcoin Price Eyes Fresh Highs above $81K Bitcoin price found support near $78,500 and started a fresh increase . BTC gained pace for a move above the $78,800 and $79,200 resistance levels. The bulls even pushed the price above $80,500. A high was formed at $80,770, and the price started a consolidation phase above the 23.6% Fib retracement level of the upward move from the $74,940 swing low to the $80,770 high. Bitcoin is now trading above $79,200 and the 100 hourly simple moving average . There is also a bullish trend line forming with support at $79,200 on the hourly chart of the BTC/USD pair. If the price remains stable above $79,200, it could attempt a fresh increase. Immediate resistance is near the $80,500 level. The first key resistance is near the $80,800 level. A close above the $81,200 resistance might send the price further higher. In the stated case, the price could rise and test the $81,650 resistance. Any more gains might send the price toward the $82,000 level. The next barrier for the bulls could be $82,500. Another Drop In BTC? If Bitcoin fails to rise above the $81,200 resistance zone, it could start another decline. Immediate support is near the $79,200 level. The first major support is near the $78,500 level. The next support is now near the $77,850 zone and the 50% Fib retracement level of the upward move from the $74,940 swing low to the $80,770 high. Any more losses might send the price toward the $77,150 support in the near term. The main support now sits at $76,500, below which BTC might struggle to recover in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $79,200, followed by $78,500. Major Resistance Levels – $80,500 and $81,200.

5 May 2026, 02:00

8,500 Bitcoin Moved To Exchanges In Days – Find Out If The Market Can Keep Absorbing It

Bitcoin is holding above $78,000 as the market navigates a backdrop of heightened uncertainty driven by ongoing US-Iran tensions that have kept risk appetite cautious across global markets. The price is resilient — but analyst Axel Adler has just published an exchange flow analysis that adds a specific structural layer to the current picture, and what it describes is a market that is more complicated beneath the surface than the held price level suggests. The Bitcoin Exchange Netflow data tells a story of supply arriving on exchanges without the selling that would normally follow. Over the past week, net inflows totaled approximately 8,512 BTC across all exchanges — concentrated in two significant spikes on April 27 and April 30. Those are not small movements. Combined, those two sessions brought roughly 16,800 BTC onto exchange platforms in a compressed window. What is notable is what did not happen next. During the most aggressive inflow period, the price did not decline — it rose. The market absorbed the arriving supply without immediate price damage, suggesting that demand at current levels was sufficient to match what holders were moving toward the sell side. Since May 1, flows have moderated to near-neutral levels. The coins are on exchanges. The selling has not started. Adler’s analysis describes this as a dry powder structure — and the question of when, and whether, that powder gets used is what defines Bitcoin’s next move. The Supply Is Positioned. The Selling Has Not Started Adler’s second chart adds the cumulative picture that completes the netflow analysis. Total Bitcoin exchange reserves across all platforms stood at 2,685,541 BTC as of May 4 — up 5,773 BTC from the 2,679,768 recorded on April 28. The weekly peak of 2,686,791 BTC was hit on April 30, after which reserves began a modest decline over the following days. That modest decline is the most constructive recent development in the data. When reserves fall alongside stable or rising prices, it suggests the market is digesting available supply rather than allowing it to accumulate into a growing overhang. The direction of the reserve over the coming sessions will determine whether the current structure resolves constructively or becomes a risk. Adler names the current setup with precision: dry powder. Supply has been deposited on exchange platforms by holders positioning for potential sales. But the conversion of that deposited supply into actual market selling has not yet been confirmed. The coins are present. The pressure is not — at least not yet. The risk the analysis identifies is mechanical and specific. If the market stops absorbing new inflows — if demand falters at current price levels while the reserve remains elevated — the overhang can transition into real selling pressure quickly. The buffer between positioned supply and active selling is thinner than the held price level suggests. The confirmation signal Adler points toward is equally specific: a further decline in exchange reserves alongside continued price growth would validate that the market structure is genuinely healthy rather than artificially supported. Until that combination appears, the dry powder remains loaded. Bitcoin Tests $79K As Price Compresses Between Key Moving Averages Bitcoin is trading near $79,000 after extending its recovery from the February capitulation low, but the structure remains transitional rather than fully bullish. The chart shows a clear shift from a downtrend into a developing higher-low sequence, with price reclaiming the short-term moving average and pushing back above the $74,000–$75,000 zone, which previously acted as resistance and is now being tested as support. This level is technically significant. It aligns with both the 50-day moving average and a prior consolidation range, making it a key validation point for the current recovery. So far, buyers have defended it on pullbacks, suggesting demand is present, but not aggressive. At the same time, Bitcoin is approaching the $80,000–$82,000 region, where the 200-day moving average continues to trend downward. That creates a confluence of dynamic resistance overhead. The price is effectively compressed between rising short-term support and declining higher-timeframe resistance. Volume does not confirm a breakout yet. Participation has been relatively muted compared to the selloff phase, which implies the move higher may be driven more by reduced selling pressure than strong new demand. If Bitcoin holds above $74,000, the structure favors continuation. Failure to hold it would likely send price back toward the $65,000–$67,000 demand zone. Featured image from ChatGPT, chart from TradingView.com