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SEC about crypto: Auditors under the gun. Why no one wants to work with crypto exchanges

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SEC about crypto

SEC about crypto – The U.S. Securities and Exchange Commission is scrutinizing audits of crypto exchanges, raising concerns about their legitimacy.

Since the collapse of FTX, one-by-one cryptocurrency companies have turned to auditors to provide assurances to customers and potential investors. However, the SEC believes that asset integrity reports should be treated with skepticism. Against this backdrop, even companies like Tether are often mistrusted.

According to Acting Chief Accountant Paul Munter, the commission is scrutinizing cryptocurrency companies’ audit reports.

“We’re deepening our understanding of what’s going on in the market,” he commented. “If we find facts that we think are troubling, we will consider referring the case to the enforcement department.”

And because many platforms don’t fall under the jurisdiction of the federal securities regulator, the SEC is issuing a warning not only to investors but also to accounting firms that are risking their reputations.

SEC cryptocurrency news: auditors refuse to cooperate with cryptocurrency exchanges

Against the backdrop of the events unfolding around FTX, exchange auditors Prager Metis and Armanino have come under scrutiny. Although both firms are still operating at the moment, FTX’s new CEO John Ray said that their reports were highly unreliable.

The world’s largest cryptocurrency exchange, Binance, is having trouble attracting auditors after suspending operations with Mazars. The firm conducted an independent audit of Binance’s reserve evidence, but its report contained little financial information. Without expressing an opinion in the report and without confirming the numbers, Mazars suspended work with Binance and removed the report from its website. Now Binance claims that even the Big Four auditors are unwilling to audit the exchange’s reserves.

Many in the community believe that the lack of effective internal controls at cryptocurrency companies will jeopardize the credibility of financial statements. Meanwhile, audit firms are reconsidering their treatment of cryptocurrencies due to concerns about the risk of lawsuits, reputational damage and increased regulatory scrutiny.

Insurance companies are following auditors’ lead

Insurance companies are also increasingly questioning their relationships with cryptocurrencies. In light of the risks, they either deny insurance coverage to cryptocurrency-related businesses or significantly limit it.

But another group of specialists has got more work in the last year: due to a series of crashes of cryptocurrency companies, the business of bankruptcy lawyers is flourishing.

Earlier, we reported that analysts named the time of the last cryptocurrency market crash in the current cycle.

Cryptocurrency

Analyst: Skip Bitcoin FOMO, Altcoins Offer Better Gains Now

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Bitcoin (BTC) has sent the crypto community into delirium, hitting a new all-time high (ATH) of almost $119,000 after brief stops around $113,000 and $116,000.

However, despite the excitement, prominent analyst CrediBULL Crypto has cautioned traders not to chase the rally blindly, suggesting that the real opportunity lies in altcoins, not Bitcoin.

Why BTC FOMO Could Be Costly

With BTC currently over 650% above its ideal accumulation zone, CrediBULL posted a stark warning on X:

“The big opportunity for gains is on ALTS even if Bitcoin is the one that is ‘leading’ this move.”

He added that anyone buying the asset at this particular point should only do so for an active trade with a clear setup.

“If you can’t identify a trade setup then there is no reason to buy Bitcoin at these levels as there are much better opportunities in alts from a R/R perspective at current levels.”

His comments echoed a broader sentiment emerging from key market voices, including former BitMEX CEO Arthur Hayes and YouTuber Crypto Rover, who likened the current market cycle to November 2024, when a major altcoin rally followed Bitcoin’s price surge.

In a recent tweet, Hayes said he had reversed his previously bearish stance, citing Bitcoin’s strong breakout and the rising dominance of Ethereum (ETH).

“Get ready for a monster alt szn,” he wrote, signaling increased institutional confidence. The crypto entrepreneur also reported that his Maelstrom Fund is ramping up altcoin exposure amid expectations of favorable political and macroeconomic shifts.

Observers have described the flagship cryptocurrency’s latest move as structurally different from past bull cycles. According to CryptoQuant, it isn’t driven by speculative angst, but rather by strategic accumulation and restrained selling activity.

Additionally, metrics like the MVRV ratio, currently 2.2 vs. over 2.7 in previous tops, SOPR, and MPI all hint at a sustainable rally with long-term potential. The drop in exchange balances, down over 21% in four months, also suggests that holders are in no rush to exit their positions.

Altcoins on the Mend

However, even with BTC in price discovery mode, Ethereum and several other altcoins are beginning to outshine it in percentage gains. ETH, for instance, is up by more than 18% in the last seven days, beating Bitcoin’s 8.9% rise in the same period. It has also reclaimed the $3,000 level and is setting its sights on $3,350–$3,500.

Meanwhile, Cardano (ADA) has pumped 23.7% across the week, reclaiming critical support at $0.64 and eyeing a return to $1. Hyperliquid (HYPE) is up nearly 19%, having set a new all-time high at $46.25, and is now targeting the $50 psychological threshold.

Even Solana (SOL) is catching a bid, with prices climbing above $164 and showing potential for a rally beyond $180.

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Cryptocurrency

XRP Breaks Free With Double-Digit Gains — Flips USDT in Market Shake-Up

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TL;DR

  • The consolidation phase for many altcoins, including XRP, seems to be over, and Ripple’s native token is on the run again toward $3.
  • On its way up, it managed to surpass USDT in terms of market cap and is now back in the third spot after months of hiatus.
XRPUSD. Source: TradingView
XRPUSD. Source: TradingView

The graph above clearly demonstrates the price stagnation XRP had to endure for the past month or so. Its upper boundary was at around $2.6, while it also tested the lower one at $1.9 during the darkest hours of the war between Israel and Iran.

Nevertheless, each attempt met immediate rejections, and the cryptocurrency was pushed south to a tight range between $2.2 and $2.3. However, there were multiple signs that the consolidation could be coming to an end, and one analyst even warned that most traders will miss the breakout.

Such a price surge indeed started to materialize in the past few days, and especially today. XRP has been among the top performers on a daily scale, having surged by 20% at one point and coming close to $3 on most exchanges.

Although it was stopped there and now sits just under $2.8, it’s still up by over 12% since yesterday. Its market cap has spiked above $160 billion for the first time in months, and XRP has now become the third-largest cryptocurrency, by overtaking Tether’s USDT.

The move north was quickly picked up by the XRP Army, many of whom praised the asset’s performance and provided some bullish (and outrageous) predictions.

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Bitcoin Breaks ATH, Hayes Flips Bullish: ‘Maelstrom Is Backing Up the Truck’

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BitMEX co-founder Arthur Hayes has decisively flipped bullish and even announced that Maelstrom Fund is “backing up the truck.” The exec’s comments came as Bitcoin (BTC) broke through its all-time high above $118K on strong volume.

He also revealed that Ethereum (ETH) began to follow with potential outperformance, and markets began pricing in a Trump administration’s readiness to ease trade tensions.

From Bearish to Bullish

This pivot follows Hayes’ prior cautious stance, which was rooted in concerns about a Treasury General Account (TGA) refill draining liquidity.

In his previous essay, Hayes explained that the US Treasury Secretary, whom he calls “The Big Bessent Cock (BBC),” faces an impossible task: funding ballooning deficits without causing a bond market revolt. To manage this, the government is turning to innovative liquidity engineering, including stablecoin adoption by “too big to fail” (TBTF) banks, which could unlock up to $6.8 trillion in T-bill buying power.

Hayes also noted that if the Fed stops paying interest on reserves, it could unleash another $3.3 trillion, bringing the total potential liquidity injection to $10.1 trillion.

He argued this approach was the modern replacement for QE, by maintaining equity markets and crypto afloat despite the Fed’s tightening posture. The exec warned that the TGA refill could briefly interrupt crypto’s bull momentum.

Despite this, Bitcoin’s resilience in busting through resistance while Ethereum appears to be positioning for a “monster alt season.”

“Frontloading Ahead of Trump Tariffs”

Adding to this backdrop, QCP Capital, in its latest analysis, also identified frontloading ahead of potential Trump tariffs as a key macro driver. Manufacturers are accelerating imports and production to preempt implementation, which has led to increased trade and manufacturing credit and improved liquidity conditions.

The firm views the current environment as supportive for continued crypto upside, with steady ETF inflows and strong structural demand boosting momentum.

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