Crypto traders lose $320m in Binance-driven plunge, judge allows bankrupt Genesis mediation extension

Traders liquidated for $320m after Binance hit by SEC lawsuit

Digital asset traders were liquidated for over $320 million over the past day, as news of a US Securities Exchange Commission lawsuit against crypto exchange Binance saw the market take a dive.

The liquidations added up to the largest seen in over three months, CoinDesk reported, citing data firm Coinglass.

Binance and its CEO Changpeng Zhao are targets of the SEC on allegations they offered the sale of unregistered securities, among other possible violations.

Those include mixing user funds and lying about trade volume numbers.

NOW READ: Bitcoin, Coinbase tank as SEC’s Binance complaint spooks traders

Bankrupt Genesis awarded more mediation time by judge

Bankrupt crypto lender Genesis will have more time to mediate with creditors, after a judge extended its mediation period to June 16.

In a Monday hearing, US Bankruptcy Court Judge Sean Lane ordered to extend talks after the mediation period deadline was breached in late May. Among the creditors is crypto exchange Gemini, which partnered with Genesis on its Gemini Earn product, and said that an extension on talks would only stand to further harm investors.

Judge Lane rebuffed Gemini’s claim and stated that to shorten the mediation would “not shorten the case,” but would add clarity that might expedite the final stages of the deal.

NOW READ: Binance’s CEO micromanaged who bought hoodies. The SEC says that shows his regulatory dodging tactics

Layer 2 Optimism set to launch ‘Bedrock’ upgrade

Layer 2 scaling protocol Optimism will implement its new “Bedrock” upgrade on Tuesday, with developers expecting a 90% drop in deposit-confirmation times, as well as drastically reduced gas fees.

Optimism runs on the Ethereum blockchain, or layer 1, and already offers substantially lower fees than its parent network. The Bedrock upgrade is a major step towards realisation of the protocol’s roadmap, which it calls “Superchain.”

The Superchain will theoretically reduce fees and deposit times further, which will place pressure on Arbitrum, the current leading layer two on Ethereum.

Institutional investors pull $329m in funds from crypto markets since April

Institutional investors have pulled over $329 million in funds from crypto markets since April, according to a Monday report by Coinshares. Much of the removed funds consisted of investors who closed out short positions after a 56% rally in crypto markets over the past year.

The Tron blockchain saw the largest outflows, with $51 million withdrawn last week alone.

NOW READ: A 162-page bill would give the CFTC big chunks of US crypto markets. Here’s what else is in it

Former Minnesota Vikings co-owner sentenced to six years in jail for $740mn fraud scheme

A former part owner of the Minnesota Vikings was sentenced to six years in prison on Monday, and was ordered to forfeit $740 million in illegal proceeds from a crypto bank fraud scheme.

Reginald Fowler admitted to lying to banks to facilitate hundreds of millions of dollars worth of unregulated crypto transactions under the company name Crypto Capital Corp, and pleaded guilty last April.

Prosecutors have accused Fowler of opening accounts in the dozens without knowledge or consent from banks, to facilitate transactions for crypto firms such as Bitfinex.

NOW READ: ‘Your security posture sucks’: Atomic Wallet slammed after hacker swipes $35m

More web3 news from around the web…

Binance SEC lawsuit could be preview of what Coinbase may face, Berenberg says — CoinDesk

Robert F. Kennedy Jr. silent on Bitcoin and CBDC during Twitter talk with Elon Musk — Decrypt

CFTC approves Cboe Clear Digital to clear margined digital asset futures — The Block