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Pump.Fun, the recently surging memecoin launchpad, suffered a $2 million exploit perpetrated by a company insider. The team quickly moved to upgrade their contracts, mitigating any further damage.

U.S. Senators voted to repeal the SEC’s controversial crypto accounting rule. Lawmakers are urging President Biden to take stock of the resolution’s bipartisan support, as the President could veto the vote.

The DTCC published findings from a pilot exploring bringing NAV data on-chain using Chainlink. Ten major financial institutions, including JP Morgan and Franklin Templeton, participated in the pilot.

Plus, the Department of Justice may have legitimized MEV extraction, and SEI rallied on news of the project’s v2 roadmap.

✍️ In today’s newsletter:

Pump.Fun suffers $2M exploit perpetrated by an insider
U.S. Senate votes to repeal SEC crypto accounting rule
DTCC taps Chainlink to pilot bringing data on-chain
DoJ indictment legitimizes MEV extraction
Sei bounces 25% on V2 roadmap reveal

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💰Memecoin Launchpad Pump.Fun Loses Nearly $2M In Exploit

Pump.Fun, the booming memecoin launchpad, lost 12,300 SOL, worth around $2 million to an exploit leveraged flashloans to withdraw funds from the platform. The team quickly upgraded their contracts to prevent further losses, and said that wallets connected to the platform are safe.

🔎Pump.fun Identifies Ex-Employee in $1.9M Breach

A postmortem of the hack targeting Pump.Fun accused a former employee of perpetrating the attack. The project said the former insider "illegitimately took access of the withdraw authority" to execute the hack.

🗳️U.S. Senate Rejects SEC’s Crypto Accounting Rule But Biden May Veto The Vote

The U.S. Senate passed a resolution overturning an SEC accounting rule criticized as posing significant barriers to U.S. financial institutions providing custody services to crypto firms. Although President Biden may still overturn the vote by veto, lawmakers are urging him to take note of the significant bi-partisan support for the resolution.

👀️Did U.S. Regulators Just Legitimize MEV Extraction?

Web3 experts believe the U.S. Department of Justice may have just legitimized the practice of MEV extraction. On May 14, the DoJ brought a landmark indictment against a pair of brothers who made off with $25 million after taking advantage of three MEV bots. The DoJ described the pair as having “fraudulently obtained” the funds by “exploit[ing] the very integrity of the Ethereum blockchain.”

⛓️️DTCC Leverages Chainlink for Smart NAV Pilot

The Depository Trust & Clearing Corporation (DTCC), a core institution within the U.S. financial system, has published findings from a pilot program leveraging Chainlink’s Cross-Chain Interoperability Protocol. The pilot explored bringing Net Asset Value on-chain, and featured participation from 10 leading financial institutions.

📈Sei Token Pops on V2 Roadmap

SEI is rallying after the project revealed its v2 roadmap, notching a 25% gain since dropping the announcement. Sei plans to introduce parallelized EVM execution with the upgrade.

🌍 ELSEWHERE

Dolce & Gabbana sued by customer who spent $6,000 on NFT outfits to wear in the metaverse (Financial Post)
Binance executive denied bail in Nigeria over money laundering charges (The Guardian)
Hong Kong pilots first-ever digital yuan payment system for cross-border transactions (CryptoSlate)
BNB Smart Chain to Feature Its Own Blobs to Compete With Ethereum (Unchained)