CZ Proposes Dark Pool DEX to Combat Front-Runs

Changpeng “CZ” Zhao has proposed a dark pool-style perpetual DEX to shield traders from front-running and liquidation attacks, citing the perils of full transparency on decentralized platforms. He made the suggestion, saying “if others can see your liquidation point, they could try to push the market to liquidate you.”

His timing follows high-profile liquidation drama involving trader James Wynn, who publicly turned $4 million into $100 million before crashing to zero on overleveraged Bitcoin longs. “Even if you got a billion dollars, others can gang up on you,” CZ warned.

The proposed exchange would hide order flow, deposits, and positions until settlement using zero-knowledge encryption, atomic swaps, and cross-chain non-custodial architecture. “Such a solution must be trustless, non-custodial, cross-chain, and secure,” said Komodo CTO Kadan Stadelmann.

DeFi figures say the idea reopens a key debate: transparency benefits bots, not big traders. Meanwhile, a lead developer at Base decentralized exchange Alien Base claimed that building dark pools is not technically challenging, but doing it well is not as easy.

Ulbricht Receives 300 Bitcoin From Anonymous Wallets

Silk Road founder Ross Ulbricht received 300 Bitcoin from wallets using the mixing service Jambler, worth over $31 million. Blockchain analyst ZachXBT dismissed claims it was a self-donation, noting both source wallets had activity while Ulbricht was in prison. The transactions triggered speculation online about the origins and intent behind the transfer.

ZachXBT said the wallets had prior exchange ties and flagged compliance risks, but lacked any direct link to Ulbricht himself. One wallet was active in 2014, and another moved dormant coins from 2019 through early 2025. Ulbricht, recently pardoned by President Trump, now oversees wallets that still contain hundreds of unmoved Bitcoin.

Consensys Buys Web3Auth To Upgrade MetaMask Onboarding

Ethereum software giant Consensys acquired wallet infrastructure firm Web3Auth to improve usability for its flagship product, MetaMask. While financial terms weren’t disclosed, the deal focuses on onboarding improvements and eliminating seed phrase dependency. Web3Auth’s login tech is already used in thousands of decentralized apps and will now power MetaMask’s new flows.

Consensys said 35% of users fail to back up their seed phrases, creating unnecessary risk. With Web3Auth, users will gain web2-style access and recovery options, pushing MetaMask toward “account abstraction” standards. The company also said developers will benefit from streamlined SDK tools and improved blockchain integration options.

Musk Promotes XChat With Questionable Bitcoin Claim

Elon Musk unveiled a new encrypted messaging feature called XChat, claiming it uses “Bitcoin-style encryption” and a Rust-based architecture. Bitcoin developers quickly challenged the description, pointing out that Bitcoin doesn’t use encryption for privacy. Experts criticized the terminology as misleading and lacking technical accuracy.

XChat will include encrypted calls, disappearing messages, and file transfers, as part of Musk’s all-in-one app vision. The announcement follows X’s rollout of a new wallet product and Musk’s exit from his government role in D.O.G.E. No whitepaper or documentation for XChat’s architecture has been released, leaving security details unclear.

Data of the Day

Decentralized exchanges reached a new milestone in May, accounting for 25% of global crypto spot trading volume. Platforms like PancakeSwap, Aerodrome, and PumpSwap led the $410 billion surge, generated by meme coin trading and on-chain growth. It marks a jump from the previous record of 20% set in January.

Analysts say the shift reflects growing distrust in centralized exchanges after multiple scandals and collapses. Improved wallet tools and cross-chain capabilities also pushed more users toward DEXs. Hashed CEO Simon Kim said the change is structural and predicted decentralized platforms will overtake centralized ones by 2028.

More Breaking News

• Singaporean crypto exchanges have until June 30 to halt overseas services or face penalties nearing $200,000 under its new regulatory directive.
• Tether launched a gold-backed cryptocurrency as an omnichain stablecoin on TON, expanding access to tokenized bullion across multiple blockchain networks.
• Certik says DeFi hacks drove May’s $302M in crypto losses, with one massive exploit accounting for most of the month’s damage.
• Japan’s Metaplanet now holds 8,888 BTC worth nearly $1B after another major purchase, affirming its spot among top corporate holders.
• Michael Saylor’s Strategy bought $75M in Bitcoin this week, bringing its total BTC holdings to more than $60 billion in value.
• Circle is seeking a $7.2B valuation in its upsized IPO, planning to sell 32M shares at up to $28 each on the NYSE.
• Wintermute warned that Ethereum’s new Pectra upgrade is fueling wallet-draining attacks via EIP-7702-enabled malicious contracts.
• Taiwan’s BitoPro confirmed a $11.5M exploit involving multiple blockchains, but claimed all user funds and withdrawals remain unaffected.

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