Today in crypto, rising social media attention on the Federal Reserve could signal a warning for the crypto market, Aave token stumbles on rumors of different token allocation from World Liberty Financial. Meanwhile, Thai police have arrested a South Korean man accused of helping a call center gang launder over $50 million in crypto into gold.
Rising Fed rate chatter may be a red flag for crypto: Santiment
The surge in social media chatter around the highly anticipated US Federal Reserve September interest rate decision could be a warning sign for crypto, says sentiment platform Santiment.
It comes after the crypto market rallied on Friday and market sentiment returned to greed following Fed Chair Jerome Powell’s dovish remarks at the annual Jackson Hole economic symposium. He hinted that the first rate cut of 2025 could come in September.
“Historically, such a massive spike in discussion around a single bullish narrative can indicate that euphoria is getting too high and may signal a local top,” Santiment said in a report on Saturday. The firm said that social media mentions of keywords tied to the Fed and interest rate cuts have jumped to their highest level in 11 months.
“While optimism about a rate cut is fueling the market, social data suggests caution is warranted,” Santiment said.
Aave token falls on World Liberty Financial allocation rumors
Decentralized finance (DeFi) protocol Aave’s token (Aave) fell by over 8% on Saturday, after rumors began circulating on social media that the protocol would receive a different token allocation from DeFi platform World Liberty Financial (WLFI).
The rumors started after blockchain reporter Colin Wu said that spokespeople from WLFI told him that news of the deal was “fake,” which sent the price of the Aave token tumbling by over $30 before the price rebounded to current levels.
A proposal was submitted to the WLFI community forum in October 2024 outlining a deal that would see the AaveDAO, which manages the Aave protocol, receive 7% of the WLFI circulating supply and 20% of platform revenues from WLFI.
Decentralized finance has come into sharper focus as institutional involvement in the sector grows. The total value locked (TVL) within DeFi protocols is over $168 billion at the time of this writing, according to DeFiLlama.
Korean man arrested over $50M crypto-to-gold laundering scheme
Thai authorities have arrested a South Korean man accused of helping a call center gang launder cryptocurrencies into gold worth more than $50 million.
The Technology Crime Suppression Division (TCSD) said officers apprehended Han, 33, at Bangkok’s Suvarnabhumi Airport on Saturday under a warrant issued in February, according to a report from The Nation. He faces charges of fraud, computer crimes, money laundering, and involvement in a criminal syndicate.
The case stems from a large-scale call center scam that began in early 2024. Victims were lured into “investment opportunities” promising 30%–50% returns. Initial payouts created a false sense of security, but as deposits grew, withdrawals were blocked with claims that investors had failed to meet requirements.
Dozens of complaints eventually reached the TCSD, prompting a probe that has already led to the arrest of ten suspects, including five alleged launderers and five mule account holders.
