Crypto

Binance, which was founded in China in 2017, allows users to trade digital assets and is estimated to have more than 300 million registered users worldwide.

The company said in 2024 that it had more than $160bn in assets under its custody.

A lot of the fear right now from Binance users – and the crypto industry at large – is whether or not Binance will actually be capable of covering this enormous financial loss.

The company has said repeatedly that customer funds will be covered and that the firm is strong enough to weather the storm.

But crypto history watchers have been pointing out online that this is exactly the kind of message that FTX CEO Sam Bankman-Fried gave before his crypto exchange collapsed in 2022, leading to huge losses for customers and the industry.

Several experts have warned customers not to regard Binance’s promise to cover losses as legally binding and said they may need to pursue litigation to recover them.

Daniel Tunkel, of the London-based Edwin Coe law firm, said that would “come down to what [customers] have been promised in their contracts”, and “where Binance can be sued for non-performance, if it comes to it”.

Binance has been subject of regulatory scrutiny around the world.

Meanwhile, AI-powered investigations company TRM Labs said that several elements of the attack resembled earlier North Korean-linked incidents, including the Bybit hack.

In the last five years the crypto industry has been beset by enormous losses from hackers.

In nearly all cases investigators have blamed hackers from North Korea, pointing to the infamous Lazarus Group – also know as TraderTraitor. The names refer to clusters of cyber criminals accused of working directly for the regime.

Chainalysis, a crypto analytics firm, said it had “high confidence” that a North Korean is linked to the hack.

North Korea is an impoverished country with very little industry and heavy international sanctions and experts say the regime uses cyber crime as a way to bring money in.

North Korea has always denied this, but the wealth of evidence from cryptocurrency flow analysis and insider interviews from defectors is compelling.

It makes North Korea likely to be the only nation that uses hacking as a way to raise public funds.

President Javier Milei’s role in cryptocurrency launch does not translate into a fraudulent scheme, judge says.

An Argentinian federal judge has dropped a criminal investigation into President Javier Milei and his sister Karina Milei over the collapse of a cryptocurrency he promoted online.

Judge Marcelo Martinez de Giorgi issued the decision on Friday, according to court records, ending an inquiry into Milei’s role in the launch of the $Libra token, which crashed after a brief rally.

“The reported events do not constitute a criminal offence,” the judge said in a ruling. He also wrote that investor losses and the rise and fall in the currency’s price were insufficient to establish fraud.

In his ruling, Martinez de Giorgi said that Milei’s institutional standing could have given the launch “greater impact” when he posted about it, but that does not translate into a fraudulent scheme.

Javier Milei recommended the little-known meme coin in a post on X in February 2025. He later deleted the post and denied any link to the cryptocurrency, whose value soon plunged.

The judge also dismissed an investigation into US businessman Hayden Davis, who described himself as a “launch adviser” for the token. Davis has acknowledged that he held close to $100m after the crash and denies any wrongdoing.

“For the first time in history, a President of the Nation was investigated with complete freedom, resulting in absolute proof of his innocence,” read a post shared on X by the official presidential office.

“The question that remains is this: Who will take responsibility for having wasted Argentine taxpayers’ money and the President of the Nation’s time in a failed attempt at an institutional coup?”

Milei’s friendship with Trump

Milei is one of US President Donald Trump’s closest allies. Trump firmly backed him a year ago and has called him his “favourite president”.

Trump made clear the support hinged on a victory for Milei’s party.

“I’m with this man because his philosophy is correct,” he said ahead of a White House lunch with the Argentinian leader last year. “If he wins, we’re staying with him. And if he doesn’t win, we’re gone.”

Earlier this month, Milei urged Trump to emerge stronger from the US midterm elections, saying the vote mattered for the West as a whole.

Austerity at home

Since taking office in 2023, Milei has laid off thousands of state employees, shut ministries, cut subsidies and reduced government-funded programmes. The measures were meant to fight high inflation, which has fallen to about 2 percent a month.

Milei says his plan is working, claiming that Argentina has grown for 27 consecutive months and is expanding at four times its historical rate.

When the coin crashed, Milei said he had acted “in good faith” and accused his political rivals of trying to exploit the situation.