JPEX scandal masterminds still at large as 11 suspects taken into custody: Report

Central banks are experimenting with smart contracts to implement monetary policy in tokenized environments, signaling a growing interest in integrating blockchain technology into traditional finance (TradFi).According to a joint research study by the Federal Reserve Bank of New York’s Innovation Center and the Bank for International Settlements (BIS) Innovation Hub Swiss Centre, smart contracts could offer central banks flexible, rapid-response tools in a tokenized financial system.The study, dubbed Project Pine, tested a prototype “generic customizable monetary policy tokenized toolkit” for further research by central banks, according to a BIS report published May 15.“The smart contract toolkit was fast and flexible,” the BIS wrote. “In hypothetical scenarios, the central bank was able to add and change tools instantly.”The report emphasized that if tokenization becomes widely adopted for money and securities, smart contracts could play a central role in how monetary policy is executed.Project Pine system overview. Source: BISRelated: Bitcoin more of a ‘diversifier’ than safe-haven asset: ReportThis marks a “first step” in highlighting the potential benefits of tokenization for central banks, according to the BIS.The framework “speed and consistency” was “validated” within a 10-minute hypothetical scenario where central banks quickly changed collateral criteria and exchanged liquid collateral for illiquid amid falling collateral values.The smart-contract framework also allowed central banks to deploy a new facility offering reserves and changing the interest rates on the reserves in an “immediate” implementation.Project Pine, smart contract operations. Source: BISRelated: Coinbase faces $400M bill after insider phishing attackSmart contracts, tokenization may help central banksSmart contracts and tokenization technology may help central banks’ rapid response to “extraordinary events,” the BIS report said:“This speed, coupled with the ability to adjust any of the parameters at any time, gives central banks flexibility in responding to unforeseen events and fast-moving crises.”While promising, the report also acknowledged that central banks will likely face infrastructure challenges, as most existing systems are not designed for these advanced use cases.Smart contract testing scenario. Source: BISProject Pine employed Ethereum’s ERC-20 token standard combined with another standard for “access control.”Financial institutions have increasingly embraced tokenization in recent years.At the Consensus 2025 conference, Joseph Spiro, product director at DTCC Digital Assets, called stablecoins the “perfect” financial instrument for real-time collateral management for financial transactions such as loans or derivatives.Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest, April 13 – 19

The Pacific US territory of the Northern Mariana Islands has passed a bill allowing its small constituent island of Tinian to launch a stablecoin, overriding an earlier veto by the territory’s governor.The 20-member Northern Mariana Islands House voted 14-2 to undo Governor Arnold Palacios’ April 11 veto of the bill, which allows the Tinian local government to issue licenses to internet casinos and includes a provision for the Tinian treasurer to issue, manage and redeem a “Tinian Stable Token.” The territory’s nine-member Senate had revived the bill on May 9, voting 7-1 in a two-thirds majority to override the veto, which then needed a two-thirds majority in the House to pass.Representative Marissa Flores (top left) had urged for “thoughtful deliberation” on the internet gaming and stablecoin bill. Source: YouTubeOriginally, a four-member Tinian delegation to the Marianas legislature had unanimously passed the bill to Governor Palacios on March 12.It may put the Tinian government in the lead to be the first US public entity to issue a stablecoin, which it must do before July if it’s to beat the state of Wyoming government, which is aiming to issue a stablecoin by then.Tinian has just over 2,000 residents and a largely tourism-based economy. Its local government, the Municipality of Tinian and Aguiguan, is one of four municipalities in the Commonwealth of the Northern Mariana Islands, a US territory in the Pacific Ocean north of Guam.Governor Palacios said in a letter that he vetoed the bill as it “presents several legal issues and may be unconstitutional,” would regulate an activity that could not “be clearly restricted” to Tinian and that it lacked needed enforcement measures to counter illegal gambling.The stablecoin is called the Marianas US Dollar (MUSD) and will be backed by cash and US Treasury bills held in reserve by the Tinian Municipal Treasury, according to statements shared with Cointelegraph in March.The Tinian government chose local tech services firm Marianas Rai Corporation as the exclusive infrastructure provider for MUSD, which will be launched on the eCash blockchain, a network that rebranded from Bitcoin Cash ABC in 2021 and is a fork of Bitcoin Cash, a blockchain forked from Bitcoin.A Marianas Rai Corp. spokesperson did not comment beyond telling Cointelegraph the company would announce more on MUSD on May 19.“Bitter pill to swallow”Before the vote, House lawmakers heard from the public and discussed overturning Governor Palacios’ veto before they voted it through, with independent House floor leader Marissa Flores airing concerns over the bill.Marianas Rai Corp. co-founder and technology chief Vin Armani had urged lawmakers to undo the veto, saying the bill would “attract billions of dollars of investment and tax revenue” from the crypto industry without the government having to pitch in.Clyde Norita, a Marianas Rai Corp. director and local legal cannabis mogul, told the House that the local economy was “dying out” and the bill would allow business in the region “without affecting our culture, without affecting our environment, without affecting our immigration status.”Representative Flores, who voted against the override, said, “Every time we talk about casinos, there’s always some kind of bitter pill to swallow.”Related: Stablecoin regulation ‘next catalyst’ for crypto industry — Aptos head “It is true, we are in dire need of money, but what I don’t like is when we are desperate, and we are now forced to make a decision because we are desperate once again,” she added. “Every time we’re desperate, it always seems that we come back to casinos.”“I don’t like to be pushed to a corner to make a decision based on fear,” Flores said.Others were more supportive of the measure, with Republican Representative Patrick San Nicolas, a Tinian delegation member who initially voted on the bill, saying it would help pull the region out of “a deep economic crisis.”“We need this legislation to unlock our potential,” he added. “This bill does not depend on tourists or federal subsidies — it builds a digital industry generating revenue from a licensed jurisdiction.”Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight 

Coinbase stock dipped after news broke of a cyberattack that exposed customer data and an ongoing Securities and Exchange Commission investigation over misstated user numbers in 2021.The double whammy of bad news rattled investors as company stock (COIN) slid 7% in a fall to $244 in after-hours trading on May 15, according to Google Finance.  Coinbase stock 24 hours. Source: Google Finance Coinbase has since confirmed the report from The New York Times, which stated the SEC has been investigating whether Coinbase misstated its user numbers in past disclosures, an inquiry that began during the Biden administration and has continued under the Trump administration.“This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public,” confirmed Coinbase chief legal officer Paul Grewal to Cointelegraph. “We also disclosed – and continue to disclose – the more relevant metric of ‘monthly transacting users’ – the number of people who use our platform in a given month,” he said before adding: “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” The regulator took specific umbrage at Coinbase’s claim of “100+ million verified users” that appeared in its marketing and IPO documentation in 2021. However, the exchange stopped reporting this metric in 2022.In its 2022 financial statement, the firm stated it would stop reporting the metric as it no longer believed it provided meaningful information to its business performance. Source: SECThe probe has continued despite the SEC dropping its 2023 enforcement lawsuit against Coinbase under the Trump administration. Coinbase has hired law firm Davis Polk & Wardwell to assist with its response to the SEC.Coinbase refuses to pay ransomOn May 15, Coinbase reported that it was attacked with a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data.“These insiders abused their access to customer support systems to steal the account data for a small subset of customers,” the firm stated. Related: Coinbase to become the first crypto firm to join the S&P 500Coinbase refused to pay the ransom but said it would reimburse victims of phishing attacks as a result of the data breach, with expected remediation and reimbursement expenses ranging from $180 million to $400 million.Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets