Crypto News, June 22: Jared from Subway Big Exploit and Its Legal Battle, UK Advances Stablecoin Regulations, Polymarket Accused of Fake Betting

Crypto markets woke up to pure chaos this Monday, and the Jared from Subway exploit, advancing UK stablecoin regulation, and Polymarket allegations are among the biggest crypto news stories dominating every feed. The hunter has become the hunted, regulators finally admitted they overreached, and one prediction market alleged for staging its own success.

Fresh developments are still landing this morning, and the biggest story rocking on-chain right now involves the infamous Jared from Subway MEV bot. After years of sandwiching traders and raking in millions, the bot got drained for $15 million over the weekend.

What’s interesting is that the attacker didn’t hack any smart contract code; it simply tricked the bot’s automated logic with fake tokens and liquidity pools that appeared to be profitable MEV opportunities. Once the approvals were granted, the funds in WETH, USDC, and USDT disappeared in a classic counter-MEV honeypot play.

Just this morning, Jared from Subway dropped an on-chain message offering a 50% white-hat bounty if the attacker returns 2,150 ETH within 48 hours. Otherwise, they threatened to pursue every legal and law enforcement remedy available.

jaredfromsubway.eth just offered 50% white hat bounty to the exploiter.

“Well played. We are willing to offer a 50% white hat bounty if you return 2150 ETH to this address in the next 48 hours, otherwise we will pursue all available legal and law-enforcement remedies.” pic.twitter.com/0lr69EqWpt

Now, can Jared from Subway actually pursue this in court? Sandwich attacks sit in a legal gray zone because they exploit public mempool data. That’s why Jared from Subway was able to operate so openly for years. The extractor’s move, however, looks more like fraud, using deceptive contracts to trick the bot into granting approvals it would never have given.

The bounty-plus-legal-threat approach makes practical sense with permanent on-chain evidence, and if the attacker tries to cash out on centralized exchanges, KYC could eventually link identities.

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UK stablecoin rules have also gotten a glow-up this morning. The Bank of England published its long-awaited policy statement and draft Code of Practice for systemic stablecoins. They openly admitted earlier proposals were too strict and scrapped the £20,000 individual and £10 million business holding caps.

JUST NOW: UK SOFTENS ITS STABLECOIN RULES AFTER ADMITTING THEY WERE TOO STRICT

The Bank of England has released new draft rules, allowing regulated UK stablecoins to operate from 2027.

Changes include dropping its £20,000 individual holding cap, while keeping a £40 BILLION… pic.twitter.com/Rj1xviIiUp

As for now, the new rules require issuers to keep at least 30% of reserves in deposits at the Bank, with the rest in high-quality UK assets, plus a temporary £40 billion issuance cap per stablecoin. Regulated UK stablecoin products could now realistically launch as early as 2027 under joint oversight.

As of today, data shows that 8% of adults are holding crypto assets, or more than 4.5 million people, although awareness is pretty high at 91%. With the Bank of England’s new stablecoin rules removing strict holding caps and setting a clearer framework, the high level of public awareness could translate into stronger adoption and a gradual rise in ownership over the coming years.

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The drama didn’t stop there. A Polymarket alleged scandal broke late yesterday. The Wall Street Journal reviewed 1,105 videos from creators paid through a contractor. None of the big “winning bets” shown was actually real.

A WSJ investigation found Polymarket secretly paid creators (via a firm called Virality) to flood TikTok/Instagram/YouTube with staged "winning bet" videos pushing US users toward its offshore platform.

Creators used fake mirror sites to simulate wins that never happened on real… pic.twitter.com/BJXr1Vn9rx

According to WSJ, these creators used dummy sites that looked like Polymarket to stage everything, depicting roughly $1.9 million in fake wagers. Some quietly added partner tags after journalists started asking questions. Polymarket has since said it will audit its promotional content.

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Moving away from the prediction market, reports indicate the US Senate is resuming negotiations on the Bitcoin and Crypto Clarity Act today. The bill has already cleared the Senate Banking Committee and now needs final polishing.

NEW: US SENATE TO RESUME #BITCOIN AND CRYPTO CLARITY ACT NEGOTIATIONS TODAY

LIKE, IF YOU WANT THE UNITED STATES TO PASS THE THIS BILL IMMEDIATELY pic.twitter.com/dm6MtHLubI

Why is this big? Clearer rules around digital commodities versus securities would be a massive win for the entire industry. Every exploit and regulatory admission is just another data point proving the space is maturing. Projects are hardening their code, regulators are finally listening instead of overreacting, and lawmakers are moving from endless talk to actual legislation.

Despite today’s drama, we are expecting healthy growing pains. The same infrastructure that lets bad actors get rugged also allows white-hat recoveries and better rules to emerge faster than traditional finance could ever manage. With the Senate back at the table and clearer UK stablecoin pathways opening, the foundation for the next leg up is quietly being laid.

Bullish? Absolutely. The clowns provide entertainment, but the builders and institutions keep stacking.

Follow us here for more updates from the crypto market today.

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The post Crypto News, June 22: Jared from Subway Big Exploit and Its Legal Battle, UK Advances Stablecoin Regulations, Polymarket Accused of Fake Betting appeared first on Cryptonews.