The White House has accused Moonshot AI of secretly using Anthropic’s technology to develop Kimi K3, days after the Chinese model took first place on the Frontend Code Arena.

Michael Kratsios, director of the White House Office of Science and Technology Policy, alleged in a July 22 X post that the U.S. government had obtained information linking K3’s development to Anthropic’s Fable model. Kratsios did not publish technical records or other evidence with his claims.

According to the White House official, Moonshot built an internal platform capable of extracting knowledge from U.S. models through large-scale distillation. Kratsios alleged that the system allowed the Beijing-based company to change access methods quickly, making its activity harder for American developers to detect.

“We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model.”

Model distillation typically involves training a smaller or less expensive system with responses produced by a more powerful model. Kratsios acknowledged that developers can use the technique to create efficient products, but he accused Moonshot of applying it secretly and on an industrial scale.

Moonshot AI had not issued a public response to Kratsios’ allegations at the time of writing. The White House also had not released supporting material that would allow independent researchers to assess whether K3 incorporated proprietary Anthropic technology.

Kimi K3’s benchmark win raises scrutiny

Kratsios’ accusations arrived less than a week after Kimi K3 overtook several U.S. systems on a closely watched coding benchmark. As reported by crypto.news on July 17, the model reached first place on the Frontend Code Arena while performing close to leading products in several other evaluations.

The preliminary Frontend Code Arena ranking gave K3 a score of 1,679, placing it ahead of Anthropic’s Claude Fable 5 at 1,631. Moonshot has presented K3 as a 2.8-trillion-parameter open-weight model, although its full weights are scheduled for release on July 27, leaving outside researchers unable to complete a full technical review before then.

Following the benchmark result, former White House crypto and AI czar David Sacks warned that heavy U.S. regulation could help Chinese laboratories close the performance gap. Sacks described K3’s result as concerning because the model also ranked near the frontier across other tests.

In Sacks’ view, federal approval requirements, restrictions on data center construction and separate state rules could slow U.S. developers without limiting Chinese competitors. He argued that America became a technology leader during the internet era by allowing companies to build products without first securing government permission.

Kratsios drew a different line between normal development and the conduct he attributed to Moonshot. While supporting “free and fair” AI development, the White House official argued that covert distillation designed to obtain protected U.S. technology could not be treated as ordinary competition.

“Large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.”

During a Fox Business interview, Bessent warned that the United States could sanction overseas AI companies found to have stolen American intellectual property. The New York Post separately reported that Anthropic, OpenAI and Google had raised concerns about Chinese laboratories using unauthorized model distillation.

AI competition intensifies across capital and talent

Alongside the model dispute, Chinese AI companies have continued seeking the capital needed to compete with well-funded U.S. laboratories. DeepSeek has reportedly entered early discussions with investors about a funding round that could value the company at about $71 billion before the new capital is added.

DeepSeek’s previous external financing valued the startup at $7 billion before the investment and approximately $52 billion afterward. The company has also started early preparations for a possible initial public offering, with a domestic Chinese listing reportedly under consideration.

Competition for funding has developed alongside a fight for technical and entrepreneurial talent. During an appearance on the VALR podcast, Hyperliquid co-founder Jeff Yan argued that artificial intelligence’s rising social status was drawing promising young founders away from cryptocurrency and financial technology.

Yan urged entrepreneurs to judge industries by the problems they could solve rather than their public appeal. According to the Hyperliquid co-founder, rebuilding financial systems through on-chain markets still gives founders an opportunity to turn academic research into products that can operate at scale.

U.S. authorities have also been changing how American frontier models reach overseas users. Earlier in July, the Commerce Department lifted export restrictions covering Anthropic’s Fable 5 and Mythos 5, allowing the company to restore international access after adding safeguards.

Separately, Commerce Secretary Howard Lutnick granted around 100 selected businesses and government agencies limited access to Mythos 5 under specific controls, according to a letter sent to Anthropic co-founder Tom Brown. Those decisions have placed access to advanced American models at the center of Washington’s effort to protect domestic technology without slowing commercial adoption.

Moonshot’s benchmark lead and Kratsios’ allegations have now brought those competing goals into the same dispute. Sacks has presented K3 as evidence that strict domestic rules could weaken U.S. companies, while Kratsios has framed the model’s development as a possible case of proprietary technology being extracted through concealed access methods.

• Whale bought about 200 million DOGE near the $0.07 support.
• Dogecoin has stayed below its 20-day EMA for a record 65 days.
• Bulls must reclaim $0.075-$0.08 to improve momentum.

Dogecoin has struggled to keep pace with the broader cryptocurrency market, even as Bitcoin and several large-cap digital assets have posted stronger performances in recent weeks.

The popular memecoin is trading at $0.07267, down 0.7% over the past 24 hours, with its price confined to a narrow $0.07207–$0.07381 trading range.

While the subdued price action reflects weaker momentum, on-chain activity and technical indicators suggest a cautious outlook.

Whale buying contrasts with weak price action

One of the notable developments in recent days has been renewed whale activity.

Reports indicate that a large investor acquired roughly 200 million DOGE, a purchase valued at about $14 million, while the token traded near the $0.07 level.

Large purchases of this size often attract attention because they can signal confidence from investors with significant capital.

However, the buying has not yet translated into a broader recovery in price.

Dogecoin remains nearly 90.1% below its all-time high of $0.7316, reached in May 2021, although it is still more than 83,000% above its all-time low recorded in 2015.

The muted reaction reflects the broader slowdown in the memecoin market, where trading enthusiasm has eased compared with earlier phases of the crypto cycle.

Technical indicators show key support facing an important test

Price action continues to revolve around the $0.07-$0.071 support zone, an area identified by several market analysts as a key technical level.

Holding above this range would preserve the possibility of a recovery, while a decisive move below it could expose Dogecoin to additional downside toward the $0.060-$0.058 region.

On the upside, resistance begins around $0.07394, which aligns with the 20-day exponential moving average.

Additional resistance sits near $0.075, followed by the 50-day EMA around $0.07950.

Beyond that, traders are watching the $0.08 level, with $0.08736 near the 100-day EMA and the 200-day EMA around $0.10368 representing higher resistance levels.

The technical picture remains challenging because Dogecoin has now spent 65 consecutive trading sessions below its 20-day moving average, the longest streak on record.

Investor Jordi Visser said this prolonged weakness suggests retail participation has yet to return to the market, raising questions about whether the broader crypto rally has fully expanded beyond Bitcoin and other leading assets.

Despite the bearish trend, momentum indicators are beginning to show signs of exhaustion.

The monthly Stochastic RSI has moved into oversold territory, a condition that technical analyst Trader Tardigrade compared with previous market cycles that were later followed by strong recoveries.

$Doge/monthly#Dogecoin bounces every single time it touches this support trendline — and the pump after each touch is accelerating.

2017: Touch → Pump
2020: Touch → Bigger pump
2026: Touch → ?

This is a long-term support that has held for nearly a decade. Every bounce gets… pic.twitter.com/4paJozoI6j

— Trader Tardigrade 🧬 (@TATrader_Alan) July 22, 2026

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Oversold readings alone do not guarantee a reversal, but they indicate that selling pressure may be weakening.

DOGE’s recovery depends on reclaiming key resistance levels

Dogecoin’s technical outlook now depends on whether Dogecoin can maintain support above $0.07.

A sustained move above $0.075 would represent an early improvement in momentum, while reclaiming $0.08 would strengthen the short-term outlook.

Some technical models point to $0.105 as a potential upside target if support continues to hold and buying momentum builds.

Other longer-term projections have suggested that Dogecoin could revisit the $0.15-$0.22 range under favourable market conditions.

Those projections, however, depend on stronger participation across the cryptocurrency market and a broader recovery in memecoin sentiment rather than current price action alone.

For now, Dogecoin remains in a consolidation phase, and whether it can defend the $0.07 support zone and reclaim nearby resistance levels is likely to determine the next significant move for the memecoin.

Bitcoin price has fallen more than 1% below $66,000 as renewed U.S.-Iran threats have lifted oil prices and increased expectations for another Federal Reserve rate hike this year.

According to data from crypto.news, Bitcoin (BTC) price was trading near $65,700 on July 22 after reaching an intraday high of roughly $66,886, leaving the cryptocurrency under pressure as traders weighed another escalation around the Strait of Hormuz.

President Donald Trump warned in a Truth Social post that the United States would destroy one Iranian bridge or power plant each time Iran attacks a ship in the waterway. Trump added that the targets could include infrastructure located in or close to Tehran.

The warning followed the collapse of the interim ceasefire terms agreed under the Islamabad Memorandum of Understanding. The agreement, signed in June, called for the restoration of commercial traffic through Hormuz and the gradual removal of the U.S. naval blockade.

Iranian authorities have threatened to respond against regional infrastructure if Washington attacks the country’s bridges or electricity network, according to Iran’s Tasnim News Agency. Tasnim also reported that Iran’s Islamic Revolutionary Guard Corps had targeted Amazon data infrastructure in Bahrain during an earlier missile operation.

Shipping risks have increased further after Iran-backed Houthi forces threatened to block the Bab el-Mandeb Strait. Seven tankers had already changed course following the threat, which placed another key energy route under pressure while traffic through Hormuz remained disrupted.

Rising oil prices have revived inflation concerns

Brent crude climbed above $95 per barrel on July 22, reaching its highest point in six weeks as traders priced in risks to Gulf exports. Brent touched $95.24 before easing to about $94.40, representing a daily gain of more than 3%.

Around 20% of global petroleum consumption passes through the Strait of Hormuz, according to the U.S. Energy Information Administration. Continued disruption can therefore raise transport and fuel costs for countries that depend on Gulf oil, particularly if the Bab el-Mandeb route also faces restrictions.

Those energy risks have changed interest-rate expectations days before the Federal Open Market Committee meets on July 28–29. CME FedWatch data cited by MarketWatch placed the probability of a July increase at 33.7%, up from 25.7% one day earlier.

Polymarket traders, meanwhile, assigned a 65% probability to at least one Fed rate hike during 2026. The contract covers the rest of the year rather than only the July meeting, where futures traders continued to favor unchanged rates.

Before the latest oil increase, softer U.S. inflation data had reduced expectations for immediate tightening. A July 14 Reuters report showed that traders then assigned only a 10% chance to a July hike after annual headline inflation slowed to 3.5% in June from 4.2% in May.

The Federal Reserve’s June meeting minutes showed that policymakers were already watching energy-driven price pressure. Fed staff estimated that headline personal consumption expenditure inflation reached 4.1% in May, while core PCE inflation stood at 3.4%, according to the central bank.

Bitcoin price faces resistance between $67,000 and $69,340

Bitcoin’s daily chart shows that price has remained below Supertrend resistance at $67,303 despite recovering from its late-June low near $58,000. The daily Relative Strength Index has risen to 59.36, above its signal average of 53.96, indicating improving momentum without reaching overbought territory.

On the 4-hour chart, BTC has traded inside an ascending channel since early July. Price recently tested the channel’s upper boundary near $66,986 before retreating, while the 78.6% Fibonacci retracement at $65,021 now forms the first visible support.

A deeper pullback would place the 61.8% retracement at $63,478 in focus, followed by the channel floor near $64,000. The 4-hour MACD histogram has moved slightly negative, and the MACD line has slipped below its signal line, showing that momentum weakened after the rejection near $67,000.

ADX has remained at 20.62, indicating that the current trend lacks strong directional force. A confirmed move above $66,986 and daily Supertrend resistance at $67,303 would be needed to improve the chart structure, while a break below $65,021 could expose the lower channel support.

Order-book data shared by crypto analyst Ted Pillows showed buy orders concentrated between $64,500 and $65,500, with sell orders stacked from $67,000 to $68,000. Commenting on the setup, Pillows wrote:

“If Bitcoin breaks above it, a rally to $70,000 will happen quick.”

Another barrier sits at $69,340, which crypto analyst Ali Charts identified as the short-term holder realized price. According to Ali, every Bitcoin rebound since November has been rejected around this on-chain cost basis, making the level an important test if buyers clear the immediate sell wall.

CoinGlass’s three-day liquidation heatmap supports the same resistance picture, showing the largest overhead liquidity cluster near $67,300, followed by dense positions around $68,000. Below the market, notable liquidation pools appear near $65,000, $64,400 and $63,500, leaving Bitcoin exposed to sharp moves in either direction as traders respond to oil prices, military developments and the July Fed decision.

A self-proclaimed crypto rugpuller claims he was robbed of $14,000 worth of SOL by a group of drunk Australian girls while partying in Bali.

Ronnie Magrehbi, who has previously admitted to using the stories of cancer-afflicted babies to pump and dump crypto, shared footage of himself drinking shots with a group of female strangers he’d met at a beach club in Bali.

According to Magrehbi, he gave his unlocked phone to one of the girls so that she could look up and follow her Instagram account for him. 

When she returned his phone, he noted that the vibe shifted and the girls disappeared after going to the bathroom.  

Read more: FC Barcelona Instagram hacker made $26K in Pump Fun rewards

Upon checking his phone, he realised that $14,000 worth of SOL had been transferred from his Phantom mobile wallet to a wallet he’d never interacted with before. 

Footage appears to show him confronting the girls and accusing them of stealing his funds. One girl panics, while another stands silent as he films. 

Magrehbi subsequently called the police, leading to 12 undercover officers tracking the girls down and arresting them.

He then continued to film the girls in a police station, where he’s heard saying, “They wanna steal and not follow the law of the land, they can deal with the consequences. All of them. How about that.”

Bali crypto robbery karma for Magrehbi’s crimes

Magrehbi, who goes by the name “29” on X, was 19-years-old when he was charged in January 2020 with armed robbery and burglary after police caught him and three accomplices robbing a man at gunpoint and stealing his jacket and bag. 

Later that year, Magrehbi was charged with conspiracy to commit wire fraud after allegedly taking over the social media account of a National Football League (NFL) player and holding it ransom. 

Magrehbi allegedly took a ransom payment from the athlete, but never relinquished access to the account. Authorities claim his accomplice, Trevontae Washington, targeted both NFL and National Basketball Association players.

In 2025, Magrehbi was branded a “scumbag crypto scammer” after he rug-pulled investors with Pump Fun memecoins that appeared to exploit children with cancer.

Afterwards, he was recorded apparently mocking the children and “thanking” them for helping him make thousands of dollars. 

Read more: UK gang who posed as cops to steal $5.4M in crypto jailed

In an interview with YouTuber THURL DES, Magrehbi also admitted to “draining” crypto wallets with malware.

He’s also linked to the alias “Ronny Fargo,” and he has repeatedly claimed to have hacked the Twitter and Pinterest accounts of Mark Zuckerberg back in 2017. 

Another YouTuber, Atozy, doubted these claims, noting that there’s no reported connection between hacking group OurMine, which hacked Zuckerberg, and Magrehbi’s other alleged NFL social media takeovers.

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Blockchain intelligence firm TRM Labs has claimed in a new analysis that Justin Sun-owned HTX has been “rotating its wallet infrastructure on a rapid cycle” following sanctions issued by the UK Foreign, Commonwealth, and Development Office (FCDO) against Huobi Global S.A.

The FCDO sanctions, which landed in May, claimed that Huobi Global S.A. was being used by the A7 Network in Russia to bypass sanctions meant to target Russia.

HTX quickly claimed that “the listed entity Huobi Global S. A. is distinct from the online HTX exchange.”

The U.S. Department of Justice has filed five civil forfeiture complaints seeking more than $25 million in cryptocurrency it alleges is linked to international romance and investment frauds that targeted victims in both Canada and the United States. According to the U.S. Attorney’s Office for the District of Columbia and the U.S. Secret Service, the case stems from separate investigations conducted by the Cyber Fraud Task Force.

Prosecutors say victims were persuaded into believing they were making legitimate digital asset investments, only for their funds to be routed through laundering networks designed to obscure the origin and movement of stolen crypto. The DOJ describes tactics that frequently blend social engineering, fraudulent trading platforms, and layered wallet transfers to make recovery difficult.

Key takeaways

• The DOJ is pursuing five civil forfeiture actions targeting more than $25 million in crypto tied to romance and investment scams.
• One complaint seeks about $12.1 million connected to romance schemes affecting more than 200 victims.
• Another action seeks $10.4 million tied to suspected victim transactions involving more than 270 people.
• Authorities allege the launderers were largely based in Southeast Asia, with related IP activity associated with China, Malaysia, and Cambodia.
• International enforcement has recently intensified against similar social engineering–to-crypto laundering pipelines, including Interpol’s Operation First Light 2026.

DOJ targets crypto tied to romance and fake investment platforms

In a statement, the U.S. Attorney’s Office for the District of Columbia and the U.S. Secret Service said the assets were recovered as part of investigations associated with the Cyber Fraud Task Force. DOJ officials allege that scammers identified thousands of victims worldwide and misled them into believing they were investing in digital assets.

The largest complaint seeks approximately $12.1 million and is tied to romance-based frauds that reportedly defrauded more than 200 victims. Prosecutors say proceeds were routed through intermediary addresses and commingled with funds from other victims—an approach that can complicate attribution and recovery efforts.

A second complaint seeks $10.4 million and involves more than 270 suspected victim transactions. DOJ also filed three smaller complaints, which prosecutors describe as involving fake investment accounts and an additional “recovery” scheme—an escalation pattern seen in many fraud ecosystems, where initial victims are later targeted again with offers to help them get their money back for a new fee or deposit.

Where laundering allegedly operated—and how identities were masked

The DOJ said the alleged laundering infrastructure was predominantly located in Southeast Asia, while related IP addresses were associated with China, Malaysia, and Cambodia. While the filing describes these characteristics at a high level, the enforcement theory is consistent: criminals sought to break the on-chain connection between victim payments and the addresses that ultimately benefited.

Prosecutors frame the problem as more than a direct “investment” fraud. They argue that crypto-enabled romance scams typically rely on social engineering to build trust, then steer victims toward fraudulent trading or investment platforms. After funds are placed, investigators say the money is moved through multiple wallet layers and networks that help conceal the stolen funds’ trail.

Interpol operation highlights the scale of social engineering to crypto laundering

This DOJ filing follows broader international enforcement activity focused on social engineering scams and the financial networks used to launder their proceeds. According to earlier reporting from Cointelegraph, Interpol-coordinated Operation First Light 2026 involved 97 countries and territories. Interpol said the operation led to 5,811 arrests and the interception of $283 million in illicit assets.

Interpol also reported that the operation identified more than 142,000 victims and blocked more than 31,000 bank accounts. Within the operation, Thai authorities reportedly uncovered a network that allegedly converted romance-scam proceeds into crypto. Investigators also described the use of cross-chain token swaps to further obscure the movement of funds.

Cointelegraph reported that a wallet associated with a suspected money launderer processed more than $122.5 million in crypto over a period of 10 months. While that figure comes from Interpol-linked reporting rather than the DOJ civil forfeiture filings themselves, the overlap underscores the same operational playbook: trust-building scams, movement of funds into crypto, then multi-step transfers and trading-like activity to frustrate tracing.

Earlier U.S. actions show stablecoin laundering patterns

The DOJ’s move also fits into a wider pattern of U.S. enforcement against crypto used in romance and investment frauds. Cointelegraph previously noted that, in February, federal agents seized over $61 million in USDT stablecoin from addresses allegedly associated with laundering proceeds tied to fraudulent investment platforms.

In that earlier account, investigators described a workflow similar to the one now reflected in the forfeiture complaints: scammers build trust through romantic relationships, steer victims to fake trading platforms, and then move funds across multiple wallets. The DOJ complaint language adds further detail about how schemes can evolve into “recovery” scams and about how funds can be commingled among victims—both of which affect how law enforcement attempts to dismantle networks and how victims may later attempt to locate assets.

For readers, the key point is practical: these cases show that the fraud often shifts from social manipulation to financial plumbing. Even when victims send funds into what appears to be a legitimate digital asset transaction, the traceable parts can be deliberately fragmented through intermediaries, layered transfers, and cross-network activity.

As the forfeiture cases proceed, the next watchpoints are straightforward: whether courts allow the government to establish ownership and tracing theories at the complaint stage, and whether additional actions follow targeting other wallets or infrastructure tied to the same alleged laundering clusters.