The Blockchain Bulletin May 17:  Tornado Cash Co-Founder Faces Trial Soon

Hey folks! Welcome once more to our latest edition of the Blockchain Bulletin, where we bring out the latest happenings in the market within 24 hours. The tiny island of Tinian in the Northern Mariana Islands has become the first U.S. public entity authorized to issue a USD-backed stablecoin. Following the House of Representatives’ override of the governor’s veto, the “Tinian Stable Token” (MUSD) will be launched on the eCash network, a fork of Bitcoin Cash ABC. The stablecoin will be backed by U.S. cash and Treasury notes held by the Tinian Municipal Treasury. The legislation also allows the island to license online casinos, tying digital assets to tourism and iGaming as part of its economic revitalization strategy. 

Roman Storm, co-founder of crypto mixing service Tornado Cash, will stand trial in New York within two months, as confirmed by U.S. prosecutors. Despite an April DOJ memo indicating it would no longer prosecute crypto platforms for users’ actions, the Department of Justice emphasized that the charges against Storm—money laundering, sanctions evasion, and transmitting illicit funds—remain consistent with the updated policy. Notably, one charge was dropped: operating an unlicensed money transmission business. The DOJ’s decision, announced in a letter to Judge Katherine Polk Failla by Acting U.S. Attorney Jay Clayton, followed a review by the DOJ and the Office of the Deputy Attorney General. 

In a bold strategic pivot, Brazilian fintech firm Méliuz S.A. (B3: CASH3) has officially adopted Bitcoin as its core treasury asset. Following shareholder approval on May 15, the company purchased an additional 274.52 BTC for $28.4 million, bringing its total holdings to 320.25 BTC—now valued at over $33.3 million. Chairman Israel Salmen confirmed the shift via X, stating the company’s new mission: “to maximize the amount of Bitcoin per share.” The average acquisition cost stands at $101,703.80 per BTC.

More than two years after its infamous collapse, crypto exchange FTX is set to return over $5 billion to creditors starting May 30. This follows a $1.2 billion initial distribution in February 2025. Payouts will be processed via BitGo and Kraken, with most recipients expected to receive funds within one to three business days. Class 5A Dotcom claims will receive 72%, Class 5B U.S. customers 54%, and General Unsecured and Digital Asset Loan claims 61%. Class 7 Convenience Claims will be fully repaid at 120%.

Ethereum network transaction fees have plummeted to just $0.09, even as the asset’s price rose 2.94% to $2,612.76. Gas metrics show base fees at 1.615 Gwei—the lowest in recent history—reflecting minimal network congestion and renewed investor confidence. Average and high-priority fees remain at 1.665 and 1.948 Gwei, respectively.

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