The Daily: Trump pardons CZ, memecoin lawsuit claims, MegaETH whitepaper leak, legacy asset manager joins crypto ETF race, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Thursday! Bitcoin is testing traders' patience, with the market in a "proof-of-conviction" phase, according to analysts, as long-term holders take profits and participants await Friday's CPI print for the next macro cue.

In today's newsletter, President Trump pardons Binance co-founder and former CEO Changpeng "CZ" Zhao, a class action lawsuit alleges Meteora co-founder Ben Chow orchestrated the Melania and Libra memecoin frauds, legacy asset manager T. Rowe Price files for its first crypto ETF, and more.

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Trump pardons CZ

President Trump has pardoned former Binance CEO Changpeng "CZ" Zhao, signaling a major policy shift in Washington's approach to cryptocurrency regulation.

• White House Press Secretary Karoline Leavitt said the Biden administration had waged a "war on cryptocurrency" and pursued Zhao without evidence of fraud or victims.
• "The Biden Administration's war on crypto is over," Leavitt added.
• The Wall Street Journal first reported the news, and Binance has yet to comment publicly on the decision.
• Zhao previously denied an earlier WSJ report stating that he was lobbying for a pardon, but later confirmed he had formally submitted a request after that story was published.
• The pardon raises questions about whether Zhao could return to lead Binance despite being handed a lifetime ban under his 2023 plea deal.
• Zhao served four months in prison and paid a $50 million fine after pleading guilty to compliance failures that also cost Binance $4.3 billion in penalties in one of the largest corporate settlements on record.

Class action lawsuit claims Ben Chow orchestrated Melania, Libra memecoin fraud

Meteora and its co-founder Ben Chow are accused in a class action lawsuit of orchestrating a coordinated memecoin fraud involving at least 15 tokens, including Melania and Libra.

• The complaint claims Chow and his partners used figures like Melania Trump and Javier Milei as "window dressing" to lend legitimacy to the alleged schemes orchestrated by Meteora and Hayden Davis-led marketing firm Kelsier Ventures.
• Plaintiffs allege the tokens followed a pattern of rapid surges and crashes, with developers accused of dumping them after launch.
• Chow, who denied receiving tokens or insider information, resigned from Meteora in February after the controversy first surfaced.

JPMorgan says bitcoin miners are decoupling from BTC price as they pivot to AI

Bitcoin mining stocks have sharply diverged from the BTC price since July as miners increasingly pivot toward artificial intelligence infrastructure, JPMorgan analysts led by Nikolaos Panigirtzoglou said in a report.

• The report noted that miners' valuations are increasingly driven by AI-related revenue potential rather than bitcoin exposure, marking a "clear breakdown" in correlation.
• The analysts estimate the average cost to mine one bitcoin is about $92,000, projected to rise to $180,000 after the 2028 halving, squeezing profitability further amid the already high energy and hardware costs.
• The AI shift is offering miners more stable and higher-margin revenue streams and is expected to slow bitcoin hashrate growth, benefiting large, well-capitalized miners, while smaller firms explore alternatives like Ethereum and Solana treasuries, they said.

Legacy asset manager T. Rowe Price files for its first crypto ETF

T. Rowe Price, a legacy asset management company with $1.77 trillion in AUM, filed an S-1 with the SEC to launch its first crypto ETF.

• The actively managed fund aims to outperform the FTSE Crypto US Listed Index by investing in leading cryptocurrencies such as Bitcoin, Ethereum, Solana, and XRP.
• "Can't overstate significance of T. Rowe Price filing for an actively managed crypto ETF out of left field," NovaDius Wealth Management President Nate Geraci said. "A firm founded in 1937 is now building out the full infrastructure to handle crypto trading and manage a crypto ETF."
• Geraci pointed out that this shows how legacy asset managers are scrambling to figure out how to integrate crypto assets into their strategies. "Hoping crypto goes away is not a good biz strategy," he said.

MegaETH's MiCA whitepaper reveals tokenomics with 9.5% team allocation

Ethereum Layer 2 project MegaETH confirmed the authenticity of its leaked MiCA-format whitepaper on Thursday, outlining a fully regulated MEGA token sale, legal structure, and technical roadmap compliant with EU crypto rules.

• The document details a 9.5% team allocation, 53.3% KPI staking rewards designed to bootstrap onchain activity, and novel infrastructure designs, including sequencer rotation and proximity markets to optimize latency and liquidity.
• While MiCA compliance opens EU retail access via licensed custodians, MegaETH acknowledged that strict KYC, refund, and disclosure mandates could impact broader retail participation.

In the next 24 hours

• The latest U.S. CPI inflation data is due for release at 8:30 a.m. ET on Friday. Est. MoM 0.4%; Core 0.3%. Est. YoY 3.1%; Core 3.1%.
• Lugano Plan ₿ Forum kicks off in Switzerland.

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