TLM Plummets 560.91% Amid Regulatory Scrutiny and Technical Failures

On May 29, 2025, TLM’s price plummeted 560.91% in 24 hours to $0.005405. Over the past week, it fell 375.34%, declining 911.39% month-over-month and 5,937.38% year-over-year. The sharp decline reflects a confluence of regulatory challenges, technical vulnerabilities, and investor sentiment shifts.

Regulatory Scrutiny Intensifies

The U.S. Securities and Exchange Commission (SEC) announced an investigation into TLM’s compliance with anti-money laundering (AML) protocols. The probe centers on transactions linked to a decentralized finance (DeFi) platform integrated with TLM’s blockchain. The SEC’s focus on AML compliance has heightened scrutiny over TLM’s governance structure, with regulators questioning the transparency of its smart contract audits.

Technical Vulnerabilities Exposed

A coordinated 51% attack on TLM’s network was reported earlier this month. Attackers exploited weaknesses in TLM’s consensus algorithm, enabling them to double-spend over $2.3 million in transactions. This incident has raised concerns about the platform’s security infrastructure. A technical analysis revealed that the attack was executed using specialized mining hardware, highlighting vulnerabilities in TLM’s proof-of-work mechanism.

Analysts Weigh In on Future Outlook

Analysts project further declines unless TLM addresses core issues. Chainalysis researchers noted that TLM’s hash rate dropped 40% in the past month, signaling reduced mining activity. “The combination of regulatory pressure and security breaches has eroded trust,” said a senior analyst at CryptoRisk, a blockchain analysis firm. “Without a credible upgrade roadmap, recovery appears unlikely.”

Market Impact and Investor Response

The price crash has triggered margin calls for leveraged positions in TLM derivatives, amplifying selling pressure. Retail investors, who accounted for 68% of TLM’s trading volume in Q1, have largely exited the market. Institutional investors, already cautious, have paused allocations pending clarity on regulatory outcomes.

TLM’s developers have yet to publicly address the 51% attack or the SEC investigation. The coin’s market cap now stands at $1.2 million, down from $75 billion at its peak in 2021.

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