South Korean prosecutors say they have arrested and indicted five people in what they describe as the country’s first criminal case targeting a rug pull conducted on a decentralized exchange. Authorities allege the CATFI token scheme on a Solana-based DEX left 256 investors with about 900 million won (roughly $600,000) in losses, while organizers took around 400 million won in illicit profits.

On May 27, Nansen identified a "Smart Money" wallet holding 20x leveraged shorts worth $7.4M in bitcoin and $8.7M in ether on Hyperliquid, alongside leveraged longs in TradFi index perps. The same wallet is long $5.09M on XYZ100 (4x) and $3.46M on the S&P 500 (2x), with combined unrealized profit of about $1.35M. With 20x leverage, a 5% rise in BTC or ETH could put the $16.1M short legs at liquidation risk.

Ethereum co-founder Vitalik Buterin highlighted Kohaku's wallet feature that generates a new Ethereum address for each dapp a user connects to, arguing that relying on one global address is a privacy norm that needs to change. The approach aims to reduce onchain metadata linking across activities such as DEX use and lending, while Kohaku also advances privacy tooling through its v0.0.1-alpha.21 update that enables ERC-4337 relaying for Railgun transactions.

Two U.S.-listed spot ETFs tied to Hyperliquid's HYPE token—21Shares' THYP and Bitwise' BHYP—absorbed 1.04% of HYPE's market cap within their first 10 trading days and gathered $72.38M in total assets. On May 27, one newly created wallet withdrew 501,250 HYPE worth about $30.93M from Coinbase Prime, pointing to large-scale holdings moving off exchange.

On May 27, U.S. President Donald Trump appointed former Attorney General Pam Bondi to the Presidential Council of Advisors on Science and Technology (PCAST), a White House AI advisory body co-chaired by David Sacks. Bondi will join members including Jensen Huang, Mark Zuckerberg, and Larry Ellison, as the council’s recommendations may affect how regulators approach AI-enabled crypto products.

Exchange OS has launched on OKX's Xlayer, enabling developers to deploy spot markets, perpetual futures, and prediction markets without requiring approval. Glassnode has been named the official onchain data provider, delivering unified onchain, spot, and derivatives data to the protocol. The launch comes as decentralized perps competition remains led by Hyperliquid, which posted $170.29B in 30-day volume and $5.53B in TVL.

Two large onchain wallets opened leveraged long positions in Chainlink (LINK) and Dogecoin (DOGE) on May 26, totaling about $4.3 million. One wallet, 0x3109, also set limit orders worth $8.04 million at LINK $9.44 and DOGE $0.10, which would lift combined exposure across both assets above $13 million if filled.

On May 26, Kraken deposited 5.06 ETH worth about $1.07M into Ethereum restaking protocol Eigencloud, according to EmberCN. The move comes as Eigencloud reports more than $6.53B in TVL while its EIGEN token trades near $0.25, roughly 96% below its $5.65 all-time high.

On May 26, a pseudonymous onchain trader exited an ether short worth over $100 million for a $260,000 loss, then moved into a 20x leveraged bitcoin long sized at $13.43 million. The new position represents 175.04 BTC at $76,662, implying liquidation risk on roughly a 5% adverse move. At the time of the trade, ETH was at $2,090.55 and BTC was at $76,662.