The month of June 2022 has brought a lot of attention to the cryptocurrency industry, although not always for the right reasons. There are investigations, falling prices, the Terra collapse, and much more to talk about. The future of the cryptocurrency industry hangs in the balance, although there is no reason to despair yet.
June 2022 Is A Crypto Rollercoaster
There isn't too much to be too excited about when it comes to cryptocurrencies today. Following several key developments last month, we see numerous market approach levels not seen since 2019 and earlier. Additionally, tremendous regulatory scrutiny affects various projects and individuals, which may create bigger shockwaves in the coming months. Even so, these investigations are necessary if cryptocurrency gains more legitimacy.
Binance Suspected Of Laundering $2.35 Billion In Five Years
Binance is the biggest cryptocurrency exchange and trading platform worldwide. However, a new report by Reuters indicates the exchange may have been used to launder money. More specifically, the investigation hints at a crypto theft by Lazarus being laundered through the exchange through various anonymous accounts. However, the findings go much further and hint at $2.35 billion in illicit procedures going through the exchange between 2017 and 2021.
Analyzed money flows pertain to various hacks, investing fraud, drug sales, etc. Being, the largest crypto exchange attracts all kinds of attention, although the criminal activity is always problematic. Additionally, the exchange refutes the claims by Reuters - and especially the numbers - but the Binance team confirms they are further "improving their ability to detect illegal crypto activity". Analyzing every transaction of an estimated monthly volume of hundreds of billions of dollars will not be easy, but it proves necessary.
Elon Musk Remains Committed to Dogecoin
When people talk about Dogecoin, it is impossible to avoid the name Elon Musk. The community-chosen "CEO of Dogecoin" continues to orchestrate the DOGE price with his Tweets. However, one must also acknowledge Musk is bringing Dogecoin to a new level of his own accord. Tesla Accepts DOGE for payments for merchandise, and Musk confirmed SpaceX would follow a similar path. That doesn't mean you can start booking SpaceX flights with Dogecoin, but enabling more payment uses for this asset is a positive development.
Every time Musk comments on Dogecoin, the asset's price will go up. The recent comments regarding SpaceX saw the DOGE price soar by nearly 9%, even if all crypto markets remain very bearish. Ongoing support by Musk may continue to create hype cycles for DOGE, even if the current continues its overall downtrend from the mid-2021 all-time high.
However, Musk is also being sued for $258 billion for his alleged role in a Dogecoin pyramid scheme. Keith Johnson claims Musk, Tesla, and SpaceX are "racketeering by touting Dogecoin and driving up its price before it collapses again." Many feel DOGE has no intrinsic value, making it a plaything among influencers to pump and dump its price. The complaint, filed in federal court n Manhattan, may not necessarily lead to a trial.
Bitcoin Keeps Drifting Lower
People keeping a close eye on the Bitcoin price will have seen the ongoing decline. Unfortunately, the world's leading cryptocurrency hit its lowest level in 18 months in June 2022 and continues to struggle for astable support levels. Dropping below $20,000 confirms people remain bearish on BTC - and other crypto assets - making it very difficult to note a strong comeback.
That bearish outlook is fuelled by several industry developments, including Celsius suspending withdrawals and various companies laying off up to 10% of their employees. Additionally, concerns regarding Three Arrows Capital (3AC) have many people on edge. It remains unclear if the Summer of 2022 will offer much-needed market relief, as the downward market pressure remains firmly in place.
Terra's Do Kwon Gets Investigated For Tax Evasion
The collapse of Terra and UST has been a significant catalyst for the bearish market conditions. Many people blame Terraform Labs CEO Do Kwon, the "father of UST", for the ecosystem's demise. It now seems South Korean prosecutors agreed and opened an investigation into Do Kwon and his alleged tax evasion efforts. Sources claim Kwon profited by evading taxes worth $39 million, although those events predate the issues affecting the Terra collapse.
The tax evasion investigation coincides with the investigation of the Terra collapse. More specifically, some people claim Kwon owed $78 million in taxes, which may have led him to trigger the Terra collapse. None of these rumours have been confirmed at this time, although officials are not letting go of Terra and Terraform Labs yet.