cryptoscandal

A major crypto scandal has rocked the markets after an alleged data leak triggered a precision-engineered price attack on $MMT — wiping out an estimated $127 million in short positions overnight.


According to insider reports, confidential margin and liquidation data from an unnamed exchange were allegedly leaked directly to Amber Group, setting the stage for what traders are calling “the most surgical liquidation event of 2025.”



⚙️ The Chain Reaction: How It Happened




🔐 Insider leak: Exchange data, including leverage levels and short targets, reportedly exposed.


⏰ Timing: Coordinated midnight pump sent $MMT’s price vertical within minutes.


💥 Impact: $127M in short positions wiped out almost instantly.


📈 Market cap: Soared from $1.8B → $4B, before crashing back just as fast.




One trader summed it up bluntly:



“It was a short-seller crematorium. Even 1x leverage couldn’t survive.”




🧩 The Perfect Setup


Analysts believe the event was carefully engineered, with several red flags ignored before the explosion:




❗ Airdrop delay froze investor expectations.


❗ Liquidity throttled — with only 2% of supply in circulation, volatility spiked uncontrollably.


❗ Feed manipulation — Bybit’s price data desynchronized from other exchanges.




These conditions created the ideal trap for short traders — a liquidity vacuum primed for manipulation.



💼 The Twist: Who’s Really Responsible?


While Bybit initially took the blame for “spread instability,” new chatter inside Telegram and Discord groups suggests the real source of the leak may have been another top-tier exchange.


Blockchain analysts tracking the trades describe “coordinated buy walls” matching patterns from high-frequency desks previously linked to Amber Group.


Still, no official proof of insider collusion has surfaced — and as usual, digital paper trails are vanishing fast.



“Someone risked everything for one perfect play,” one analyst noted. “And they got away with it.”




📉 Liquidation Data (Coinglass – Nov 5, 2025)

CategoryAmount% TotalTotal Liquidations$127M100%Shorts$114M90%Longs$13M10%


🕰 History Repeats Itself


Veterans were quick to draw parallels with the 2023 Spartan Group incident, where a leading exchange was accused of leaking short data to industry insiders.

That scandal ended partnerships overnight — yet the playbook appears unchanged: leaked data, violent liquidation, and corporate silence.


Once again, the pattern points to a deeper systemic issue — information asymmetry that puts retail traders at an impossible disadvantage.



⚠️ Truth or Trap?


While the “Amber connection” remains under investigation, no direct proof of collusion has been established.

Still, traders across the market are rattled, fearing that CEX integrity is becoming more illusion than fact.



“In crypto, your opponent might be the exchange itself,” one veteran trader warned.




💡 The Takeaway


This event underscores a timeless rule in crypto markets:




🚫 Don’t overleverage.


🚫 Don’t trust rumors.


✅ Assume data isn’t private.




Until exchanges prove transparency, even 1x positions can be destroyed when insiders see your cards.





#CryptoScandal #MMT #AmberGroup #CEXLeak



📢 Disclaimer:

Includes third-party opinions and market commentary. Not financial advice. May include sponsored content. Always DYOR (Do Your Own Research).

Ben Armstrong, known in the crypto world as "BitBoy", is back in the spotlight — but this time, not for market tips. He’s making headlines for all the wrong reasons after being arrested in Florida on March 25 following claims that a warrant had been issued for his arrest.

📩 “Warrant Issued Over Emails to Judge,” Armstrong Says
On March 21, Armstrong posted on X that he could “confirm there are arrest warrants” against him — allegedly due to emails he sent to Georgia Superior Court Judge Kimberly Childs while acting as his own attorney.
He also claimed that the judge deleted her social media accounts as a result of his messages. No information about Armstrong’s legal representation has been made available, and he has not issued any public comments since.

👮 Not His First Run-In With the Law
This isn’t the first time Armstrong has faced legal trouble. In September 2023, he was arrested during a livestream while confronting a former business partner he accused of holding his Lamborghini.
Earlier, in March 2023, he was also named in a class-action lawsuit for allegedly promoting Binance, which was accused of selling unregistered securities. The case was later settled in August 2024, with Armstrong and NBA star Jimmy Butler agreeing to pay $340,000 without admitting guilt.

🥋From Courtroom to Cage: Armstrong’s Crypto Fight Night
Aside from legal battles, Armstrong stepped into a very different kind of arena in February 2024, taking on pseudonymous memecoin developer "More Light" in a Karate Combat match in Mexico.
After three two-minute rounds, Armstrong won by unanimous decision. Despite the hype, More Light later stated there was “no bad blood” between them in real life and described Armstrong as a “good guy” in person.

🚫 BitBoy Brand Cuts Ties Over Alleged Misconduct
In August 2023, Hit Network — the company behind the BitBoy Crypto brand — officially severed ties with Armstrong, citing alleged substance abuse issues and unprofessional behavior toward staff.
Armstrong denied the accusations and called it an attempted takeover of the brand he helped build.

#CryptoDrama , #CryptoNewss , #CryptoScandal , #SEC , #CryptoNewsCommunity

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

From $0.18 → $75 → CRASHED to $16

810,000+ wallets SHATTERED.

Launched before Trump’s inauguration, $TRUMP looked like the next political moonshot...

But what followed was a crypto bloodbath wrapped in controversy:

1 wallet turned $1.1M → $109M in 48 HOURS
Trump-linked insiders reportedly raked in $100M+ in fees
Whispers of manipulation, shadow wallets & insider trades
Retail investors left holding the bag

Is this the future of political tokens—or a warning shot for every investor chasing hype?

Crypto isn’t a casino.

It’s time to expose the shadows, demand accountability, and protect the chain.

Crypto App Founder Sentenced to Additional 3.5 Years in Prison
Firoz Patel, the founder of a crypto payment app, has been sentenced to an additional 41 months in prison after attempting to hide 450 bitcoins that he was ordered to forfeit. The ruling was handed down by U.S. federal judge Dabney Friedrich in Washington, D.C., based on charges of obstruction of justice.
Attempt to Conceal Multi-Million-Dollar Assets
Patel attempted to hide bitcoins currently valued at over $43.5 million from the court handling his 2020 case. At that time, he had pleaded guilty to conspiracy to operate an unlicensed money transmission business and money laundering.

Back in 2020, he was sentenced to three years in prison and two years of supervised release for operating Payza, which, according to prosecutors, processed transactions in the U.S. without proper licensing. The platform was also allegedly used for money laundering and fraudulent schemes, including Ponzi and pyramid scams.
Manipulating Bitcoin Transactions
As part of his original sentence, Patel was required to identify and surrender all assets acquired through Payza. However, he falsely claimed to have only $30,000 in his retirement account.
After his conviction and before beginning his sentence, Patel started moving BTC linked to Payza. He first attempted to deposit the funds on Binance, but the exchange eventually shut down his account in 2021. He then opened an account on Blockchain.com under his father’s name and attempted to transfer the bitcoins there. When the exchange flagged the transaction, it froze the funds. Patel then instructed a business associate to submit false identification in an effort to unfreeze the assets.
Escape Plan Foiled by Investigators
While serving his sentence, Patel learned that investigators were tracking his hidden bitcoins. To avoid further prosecution, he hired an individual posing as a lawyer to deceive authorities and delay his release. He intended to flee the U.S. upon being freed, but investigators uncovered the scheme before his scheduled release.
Additional Penalties and Asset Seizure
Judge Friedrich not only imposed additional prison time but also ordered Patel to undergo three years of supervised release and forfeit assets worth over $24 million. Additionally, he lost claim to 450 BTC, which are currently held by Blockchain.com.

#bitcoin , #CryptoNewss , #CryptoScandal , #CyberSecurity , #cryptocurrencies

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

🚨 The Crypto Empire That Crashed Overnight

In 2022, FTX, one of the world’s largest cryptocurrency exchanges, imploded in spectacular fashion—wiping out billions in customer funds and shaking the entire crypto industry.

✔️ Founded by Sam Bankman-Fried (SBF), FTX was seen as a crypto savior, backed by celebrities and venture capital giants.

✔️ Behind the scenes, customer funds were secretly funneled to SBF’s hedge fund, Alameda Research.

✔️ When the truth surfaced, FTX filed for bankruptcy, and SBF was arrested for fraud.

This wasn’t just a crypto crash—it was a modern-day financial scandal with global consequences.

💰 The Rise – From Dorm Room to Crypto Royalty

🚨 SBF launched FTX in 2019, promising transparency and innovation.

🚨 The exchange grew rapidly, handling billions in daily trading volume.

🚨 FTX secured naming rights to stadiums, ran Super Bowl ads, and became a symbol of crypto legitimacy.

But beneath the surface, a house of cards was forming.

🔥 The Collapse – A Tweet That Triggered a Meltdown

✔️ In November 2022, a leaked balance sheet revealed Alameda’s heavy reliance on FTX’s own token, FTT.

✔️ Binance CEO CZ tweeted doubts, sparking a bank run on FTX.

✔️ Within days, FTX halted withdrawals, filed for bankruptcy, and SBF resigned.

The crypto world was stunned. Over $8 billion in customer funds vanished.

⚖️ The Fallout – Trials, Trust, and Regulation

🚨 SBF was charged with fraud, conspiracy, and money laundering.

🚨 The collapse led to calls for stricter crypto regulation worldwide.

🚨 Investors, celebrities, and politicians who backed FTX faced scrutiny.

FTX’s downfall wasn’t just a crypto story—it was a cautionary tale about hype, trust, and unchecked power in digital finance.

#FTXCollapse #CryptoScandal #SamBankmanFried #FinancialHistory
#Write2Earn 🚀🔥

Customers of the bankrupt cryptocurrency exchange FTX are moving to strengthen their class-action lawsuit against the law firm Fenwick & West, which the exchange had previously retained. They claim that newly uncovered evidence from investigations and court proceedings shows the firm played a central role in how the fraud within FTX was carried out.
According to a court filing earlier this week, “the FTX fraud was only possible because of Fenwick’s significant assistance,” which allegedly included designing and approving corporate structures that facilitated the misuse of customer funds. FTX clients allege that the firm agreed to establish and represent highly conflicted entities such as sister company Alameda Research and subsidiary North Dimension, which “lacked any safeguards to prevent the loss of billions of dollars.”

Court Proceedings Reveal New Details
The amended complaint states that criminal proceedings against former FTX CEO Sam Bankman-Fried revealed new information about Fenwick’s involvement. FTX co-founder Gary Wang, former Alameda CEO Caroline Ellison, and ex-CTO Nishad Singh testified that Fenwick had been informed of the misuse of funds and gave advice on how to conceal such practices. Singh specifically claims the firm helped disguise unauthorized loans and falsified financial statements.

Independent Examiner: Fenwick Was Deeply Embedded in FTX’s Operations
A report from an independent examiner appointed by the bankruptcy court stated that Fenwick was “deeply connected” to FTX’s leadership and involved in most key decisions that enabled unlawful conduct. The examiner claimed the firm helped create shell companies to mask asset transfers and was behind the introduction of automatic deletion of messages in the Signal app used by FTX executives.

New Legal Claims
The amended lawsuit adds two new counts — alleged violations of securities laws in Florida and California. Fenwick is accused of actively participating in the design, promotion, and sale of unregistered securities, specifically the FTX Token (FTT) and yield-bearing accounts offered by FTX.
Fenwick has consistently denied any wrongdoing, maintaining that its actions were within the scope of legal representation. A similar lawsuit was previously filed against another law firm, Sullivan & Cromwell, but later withdrawn due to insufficient evidence.

#FTX , #CryptoFraud , #CryptoScandal , #CryptoCrime , #DigitalAssets

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

You think you know the story? Think again. Last year, German authorities made headlines for seizing nearly 50,000 BTC from the piracy site Movie2K. They sold it for a quick $2.8 billion... a move that now looks like a colossal mistake. The Bitcoin they offloaded is now worth over $5 billion. 💰📉

​But here's the shocking twist: Blockchain analytics firm Arkham just revealed another 45,000 BTC, also tied to Movie2K, that's been sitting untouched since 2019! This digital treasure chest is worth almost $5 billion today. 🤯

​Why haven't they seized it? Legal red tape! Prosecutors need to legally prove the funds' origin in court before they can touch them. Until then, it's a frozen vault of digital gold.

​This situation highlights a critical point: Governments are sitting on massive crypto stashes, but they're still learning how to play the game. They chose quick cash and left billions on the table, proving that in crypto, the blockchain never forgets, and patience favors the bold. 🧠

​

The crypto world is wild, unpredictable, and sometimes downright bizarre. This past week, we've witnessed events that even Hollywood screenwriters couldn't dream up. From an unexpected live stream disaster, to a viral dog marketing stunt, and even political turmoil tied to crypto.
Here’s a breakdown of the six craziest moments that rocked the market!
1. NEAR Protocol’s Accidental NSFW Livestream – Token Pumps 6%
In the crypto world, any publicity is good publicity – and NEAR Protocol just proved that.
During a public conference call, a former NEAR Protocol manager accidentally live-streamed explicit content. What was supposed to be a routine meeting turned into an awkward viral moment that spread across the crypto space in minutes.
The result? NEAR’s token pumped 6%.
Apparently, in crypto, scandals make for bullish price action! 🚀📈

2. Vitalik Buterin Tweets About Communism – ETH Pumps 5%
Ethereum’s co-founder, Vitalik Buterin, is known for his deep thoughts on decentralization, but this week, he took things in a different direction. He tweeted:
🟥 "Make communism great again Milady." 🟥
ETH’s price immediately jumped by 5%.
Who would have thought that communism could be bullish?! 😆

3. CZ Doxxes His Dog "Broccoli" – BSC Goes Crazy 🐶🥦
Former Binance CEO Changpeng "CZ" Zhao pulled off a surprise marketing stunt by introducing the world to his dog, Broccoli.
The goal? Bring more liquidity to Binance Smart Chain (BSC).
And it worked like magic – within hours, over 1,000 "Broccoli"-themed meme coins were launched!
Turns out, even a dog can pump the crypto market. 🐕💰

4. Central African Republic President Launches a Token – Then It All Falls Apart 🌍💸
The President of the Central African Republic announced the launch of a new token via Twitter.
Investors rushed in, pumping its value to $500 million.
Then, suddenly:
🚨 The official Twitter account was suspended.
🚨 The project’s website went offline.
🚨 Concerns about token supply manipulation emerged.
Within hours, the token crashed 96% – another reminder that political crypto projects can be risky AF. 🤦‍♂️

5. Argentina’s President Milei Launches LIBRA – The Pump and the Dump
Argentine President Javier Milei launched a new token called LIBRA, which soared to a market cap of $4.5 billion in no time.
But what happened next?
👀 Developer wallets started draining liquidity, pulling out over $87 million.
📉 LIBRA’s price crashed by 90%.
This turned into one of the biggest crypto rug pulls of the year.

6. Impeachment Incoming? Milei Under Investigation for LIBRA
Just days after LIBRA’s collapse, rumors started flying about a possible impeachment for President Milei.
Independent crypto sleuths are investigating potential ties between Milei and crypto insiders who helped launch LIBRA.
The result? One of the biggest political-crypto scandals of the year – and possibly, the first-ever impeachment triggered by a meme coin. 🏛️🔥

What’s the takeaway?
This week in crypto was a rollercoaster of insanity, proving once again that this space has no rules, only vibes.
🔹 Scandals pump tokens.
🔹 One tweet can move markets.
🔹 A dog named Broccoli can spark a meme coin frenzy.
🔹 Politicians are jumping into crypto – and it’s not always ending well.
What do you think about this week’s craziness? Which event shocked or entertained you the most? Drop your thoughts in the comments! ⬇️💬

#CryptoScandal , #CryptoNewss , #nearprotocol , #JavierMilei , #VitalikButerin

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Notice: This article is for educational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry risks and may result in financial losses.

🚨
$ETH
A political and financial firestorm has erupted in Argentina following allegations that President Javier Milei’s endorsement of the meme coin $LIBRE triggered a massive pump-and-dump scheme. The rapid collapse of the token wiped out hundreds of millions in investor funds, sparking national outrage and calls for impeachment. Now, the government is under intense scrutiny, and the crypto community is watching closely.$BNB

🔥 How It All Unfolded

🔹 Late Friday night, Milei took to X (formerly Twitter) to endorse $LIBRE, leading to an explosive surge in value.
🔹 The token’s price skyrocketed from $0.006 to nearly $5 in just a few hours, drawing in thousands of investors.
🔹 Within six hours, the coin crashed back to $0.84, igniting accusations of market manipulation.$SOL
🔹 Milei’s post was quickly deleted, but the damage was already done.

⚖️ Political Fallout & Demands for Justice

🔸 Opposition leaders, led by Leandro Santoro, have condemned the scandal as a national embarrassment, calling for Milei’s impeachment.
🔸 Former President Cristina Fernández de Kirchner criticized the incident, describing it as a deliberate financial trap that devastated retail investors.
🔸 KIP Protocol, the entity behind $LIBRE, denied government involvement, later revealing that Kelsier Ventures, headed by Hayden Davis, was responsible for launching and managing the token.

🔎 Investigations & The Road Ahead

✔ Milei has distanced himself from the controversy, claiming he had no direct involvement.
✔ The Anti-Corruption Office (OA) has launched an official probe into possible misconduct.
✔ A special Investigation Task Unit ($UTI) has been formed to examine potential insider trading and financial fraud.

With Congress in turmoil and investors demanding accountability, the coming days will determine whether Milei can weather the storm—or if this scandal will mark the end of his presidency. Stay tuned as this high-stakes political and financial drama unfolds! 🎭💥