Značka: Hodler’s Digest

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Judge revokes Sam Bankman-Fried’s bail, remands him to custody

FTX’s former CEO, Sam “SBF” Bankman-Fried, had his bail revoked by a federal judge in response to the release of information to The New York Times allegedly intended to intimidate witnesses. During a hearing on Aug. 11, Judge Lewis Kaplan revoked Bankman-Fried’s bail and remanded him to custody, likely at the Putnam County Correctional Facility. Once his October trial begins, he could be moved to the Metropolitan Detention Center in Brooklyn. Bankman-Fried was reportedly led out of the courtroom in handcuffs. In Kaplan’s view, Bankman-Fried’s interviews with NYT reporters resulted in sharing information with the likely intention “to hurt and frighten” former Alameda Research CEO Caroline Ellison, his former colleague and girlfriend.

The U.S. Securities and Exchange Commission (SEC) has delayed a decision on whether to approve or disapprove the spot Bitcoin exchange-traded fund (ETF) proposed by ARK Investment Management and 21Shares. ARK originally filed to list the ETF in May, giving the SEC a maximum of 240 days — until January 2024 — to reach a final decision. The SEC’s latest move is fueling expectations that a final verdict will come as part of a batch that includes applications from key players on Wall Street, including BlackRock and Fidelity Investments.

SEC to seek appeal and stay in Ripple Labs court case

The U.S. SEC is moving to appeal a court decision from its lawsuit against Ripple Labs. In a letter to Judge Analisa Torres — the presiding judge in the case — the SEC said it believed her decision warrants a fresh look by an appellate court. The commission asked Judge Torres to put the case on hold during the appeal, saying there are multiple other pending court cases that could be affected, depending on the appeal’s outcome. The SEC is currently in a legal battle with a number of crypto firms, including Binance and Coinbase, over alleged securities violations. Judge Torres ruled, in July, that Ripple’s native token, XRP, is not a security when sold to retail investors. Torres plans to schedule the jury trial for the second quarter of 2024.

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The decentralized finance (DeFi) ecosystem experienced a challenging week after a seismic security incident led to over $61 million being stolen from Curve Finance’s pools, leaving several protocols facing broader contagion risks. This attack exposed vulnerabilities across DeFi projects and sparked efforts to recover stolen funds over the past few days, hammering the performance of tokens and even stablecoins as a result of the dramatic ups and downs in this story. As the community navigates the aftermath of this exploit, Cointelegraph compiled the week’s events, presenting a timeline of what happened since the hack on July 30.

US DoJ is concerned about a run on Binance should prosecutors bring fraud charges

The United States Department of Justice is reportedly considering charging cryptocurrency exchange Binance with fraud, but hesitating based on costs to consumers. According to people familiar with the matter, Justice Department officials are concerned about an indictment against Binance causing a run similar to what happened with FTX in November 2022. The officials are considering fines or non-prosecution agreements for Binance rather than criminal charges in an effort to reduce the harm to consumers. Binance has been targeted by a criminal probe in the U.S. for allegedly violating the country’s sanctions on Russia and has also faced lawsuits from U.S. regulators.

Hong Kong debuts retail crypto trading with HashKey and OSL

Digital asset firm HashKey has successfully obtained all necessary licensing to broaden its business from serving professional investors to taking on retail users, as Hong Kong expands its cryptocurrency trading to individual investors. The first license, Type 1, allows HashKey to operate a virtual asset trading platform under Hong Kong’s securities laws. The second one, Type 7, officially enables the firm to provide automated trading services to both institutional and retail users. OSL, another local crypto firm, received an upgrade to its existing license from Hong Kong’s Securities and Futures Commission, allowing it to offer Bitcoin (BTC) and Ether (ETH) trading to retail investors immediately.

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Crypto bills pass congressional committee in ‘huge win’ for US crypto

A key United States House panel has approved a pair of bills that could finally deliver some regulatory clarity to crypto firms in the country. On July 26, lawmakers voted in favor of the Financial Innovation and Technology for the 21st Century Act, which establishes rules for crypto firms on when to register with either the Commodity Futures Trading Commission or the Securities and Exchange Commission. The panel also approved the Blockchain Regulatory Certainty Act, which sets out guidelines that remove hurdles and requirements for “blockchain developers and service providers” such as miners, multisignature service providers and decentralized finance platforms. Despite the passage of these acts, a number of Republicans and Democrats refused to support another proposed piece of legislation dubbed the Digital Assets Market Structure bill.

Worldcoin token launch sparks response from Vitalik Buterin

Vitalik Buterin, the co-founder of the Ethereum network, released a long-form essay with his thoughts on the recently launched Worldcoin human identity verification system, addressing the larger concept in discussion with the release of the Worldcoin token — proof-of-humanity. Worldcoin initiated its public launch on July 25 after nearly two years of development and beta testing, but criticism of it erupted almost immediately. The United Kingdom’s Information Commissioner’s Office is deciding whether to investigate the project for violating the country’s data protection laws. The French National Commission on Informatics and Liberty also questioned Worldcoin’s legality. In response to criticism of its data collection practices, the project released an audit report on July 28.

Putin signs law on introduction of digital ruble in Russia

Russia is moving forward with its central bank digital currency as President Vladimir Putin signed the digital ruble bill into law on July 24. With this approval, the digital ruble law is officially scheduled to take effect from Aug. 1, 2023. Individuals in the country will have the choice to choose whether or not to use the digital ruble. According to Bank of Russia Deputy Governor Olga Skorobogatova, the government doesn’t expect mass adoption of the digital ruble in Russia before 2025.

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Chair Gensler says SEC reaction to Ripple decision is mixed, still under consideration

U.S. Securities and Exchange Commission Chair Gary Gensler has commented publicly about the recent ruling on the agency’s suit against Ripple, saying the SEC is “still looking at it and assessing that opinion.” Gensler declined to comment further on the case, but said the commission is pleased with the court’s decision stating that XRP was a security when sold to institutional investors, but disappointed with the non-security ruling for retail investors and other XRP distributions. Comments made by the regulator on July 21 in a lawsuit hinted that it might appeal the decision. In the crypto community, however, some believe it is unlikely to happen as the SEC benefits from the “current confusion.”

Bipartisan bill to regulate DeFi, crypto security risks introduced into US Senate

A bipartisan bill was introduced into the U.S. Senate, tightening regulations and sanctions requirements for decentralized finance (DeFi). The bill would subject DeFi operations to the same requirements as “other financial companies, including centralized crypto trading platforms, casinos, and even pawn shops.” The proposal also makes “anyone who controls that project” liable for the use of the DeFi service by sanctioned persons. The bill also set new requirements for operators of crypto kiosks (or ATMs) to prevent their use in money laundering. Kiosk operators would be required to verify the identities of both counterparties in a transaction.

Altcoins ‘bled’ as Bitcoin gained dominance in Q2: CoinGecko

The second quarter of the year has been a solid one for Bitcoin’s performance as its market dominance gained against altcoins, which “bled” throughout the period, according to CoinGecko’s industry report. Bitcoin (BTC) and Ether (ETH) continued to build their market share over the past months, while Binance Coin (BNB), XRP (XRP), and Cardano (ADA) suffered double-digit losses over the quarter. DeFi tokens were hit particularly hard during the quarter, with Uniswap (UNI), Chainlink (LINK) and Lido (LDO) taking double-digit losses as well. The top five metaverse and play-to-earn tokens by market cap also marked losses up to 40%.

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Judge rules XRP is not a security in SEC’s case against Ripple

Ripple Labs scored a victory in a district court in New York on July 13, with Judge Analisa Torres ruling partially in favor of the company in a case brought forth by the U.S. Securities and Exchange Commission (SEC) dating back to 2020. According to court documents, Judge Torres granted summary judgment in favor of Ripple Labs, ruling that the XRP token is not a security, but only in regard to programmatic sales on digital asset exchanges. XRP’s price skyrocketed within minutes of the news breaking. The case has been ongoing since December 2020, when the SEC sued Ripple and two of its executives over allegations of offering an unregistered security. Despite the positive outcome, several lawyers warned against celebrating too soon, noting the ruling is only partial and does not set a precedent. In addition, the SEC may appeal the decision, which could result in a reversal by a higher court.

XRP becomes 4th largest crypto after Ripple’s partial win over SEC

XRP has become the fourth-largest cryptocurrency by market capitalization this week after Ripple’s partial victory over the SEC. The price of XRP surged as much as 98% in the hours following the decision, reaching as high as $0.93, according to data from TradingView. Meanwhile, its market cap surged a whopping $21.2 billion to reach a new yearly high of $46.1 billion. The new ruling has also sparked a fresh wave of re-listing activity from mainstay U.S. exchanges, with Coinbase, Kraken and iTrustCapital making the token available for trading on their respective platforms.

Celsius Network fined $4.7B by FTC, and CEO arrested under criminal fraud charges

U.S. authorities have announced charges against the former CEO of bankrupt crypto lender Celsius, Alex Mashinsky, over securities fraud, commodities fraud and wire fraud. Former chief revenue officer Roni Cohen-Pavon and Mashinsky will also face charges of conspiracy, securities fraud, market manipulation and wire fraud related to manipulating the price of the Celsius token. Authorities arrested Mashinsky as part of the indictment, which includes seven criminal counts. In parallel, the Commodity Futures Trading Commission announced a complaint against Celsius along with a $4.7 billion fine, claiming its co-founders marketed the platform as a “safe place” for consumers to deposit their cryptocurrency while misappropriating over $4 billion in consumers’ assets. Under similar allegations, the SEC also filed a lawsuit against the company. While Celsius is cooperating with regulators, Mashinsky pleaded not guilty to charges of misleading customers and inflating the CEL token.

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Larry Fink, the CEO of BlackRock, has recently delivered pro-crypto remarks, claiming “Bitcoin is an international asset” and suggesting U.S. regulators consider how an ETF directly linked to Bitcoin could democratize finance in the country. Under Fink, BlackRock has attempted to launch a spot BTC ETF with crypto exchange Coinbase acting as a surveillance partner. It’s unclear if the U.S. Securities and Exchange Commission (SEC) will approve the investment vehicle, given its track record of rejecting all previously filed spot BTC ETF applications to date.

Gemini files lawsuit against Digital Currency Group and Barry Silbert over Genesis and Earn program

Gemini has announced legal action against the conglomerate Digital Currency Group (DCG) and its CEO, Barry Silbert, claiming “fraud against creditors.” Genesis, a DCG subsidiary, had been the crypto lender responsible for operating an Earn program in partnership with the crypto exchange. The suit follows an open letter published by Gemini co-founder Cameron Winklevoss, which slammed Silbert for allegedly trying to play the victim card while owing over a billion dollars to Earn’s investors. “Not even Sam Bankman-Fried was capable of such delusion,” Winklevoss wrote in the letter.

Bitcoin bull run incoming: Binance CEO Changpeng Zhao reveals when

Binance CEO Changpeng “CZ” Zhao has delivered his prediction for the next Bitcoin bull market. In a July 5 “ask me anything” session on Twitter, CZ gave his thoughts on the next bull run, explaining that the price of Bitcoin has historically moved in four-year bull cycles, and his best bet was that this would continue to occur. While admitting he couldn’t predict the future, Zhao emphasized the upcoming Bitcoin halving event in 2024 and declared 2025 to be the most likely year for the next bull market, stating: “The year after Bitcoin halving is usually the bull year.“

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US SEC deems spot Bitcoin ETFs filings as inadequate

There may be a longer wait for a spot Bitcoin exchange-traded fund (ETF) in the United States, as the Securities and Exchange Commission labeled investment managers’ recent applications inadequate. The SEC told the Nasdaq and the Chicago Board Options Exchange that their filings are not “sufficiently clear and comprehensive.” The regulator returned the filings, citing the lack of information regarding the proposed surveillance-sharing agreement. Asset managers can still resubmit their applications.

Cathie Wood’s ARK reportedly ‘first in line’ for a spot Bitcoin ETF

ARK Investment Management is reportedly ahead of BlackRock in the race for a spot Bitcoin ETF, as it still has a previous application pending with the United States securities regulator. ARK and 21Shares filed their third application for a spot BTC ETF in April, and amended it this week to include a surveillance-sharing agreement, making it similar to BlackRock’s filing. Since BlackRock’s application on June 16, other investment firms such as Valkyrie, WisdomTree and Invesco have reapplied for spot Bitcoin ETFs.

Binance to lose support of its euro banking partner

Crypto exchange Binance informed users that its current euro banking partner, Paysafe Payment Solutions, will no longer support the exchange after September 25. Binance said it will switch to a new service provider for euro deposits and withdrawals via SEPA bank transfer, though it didn’t name which provider that would be. In recent months, Binance has been facing waves of backlash from regulators around the world, leading to a cessation of operations in various countries.

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‘The Great Accumulation’ of Bitcoin has begun, says Gemini’s Winklevoss

Recently renewed optimism for an approved Bitcoin spot exchange-traded fund (ETF) is igniting “The Great Accumulation Race” for Bitcoin, according to industry pundits. Over the past week, Fidelity, Invesco, WisdomTree and Valkyrie have followed investment giant BlackRock in applying for a Bitcoin spot ETF with the United States Securities Exchange Commission, which some analysts believe is the reason for Bitcoin’s price surge in the past days.

Binance.US solves USD withdrawal issues but warns it won’t last long

Crypto exchange Binance.US informed customers that it has resolved U.S. dollar withdrawal issues after working with its banking partners, though it warned the relief may not last. The exchange suspended dollar deposits and notified its customers of an incoming pause to fiat withdrawal channels on June 9, amid its ongoing battle with the SEC. Binance.US has encouraged customers that have a failed withdrawal attempt to resubmit their requests. Any remaining USD balances held in customer accounts will be converted into Tether at a future date.

Atomic Wallet gives major update on hack but questions remain unanswered

Atomic Wallet users have been left wanting more answers, despite the decentralized wallet provider finally releasing a full “event statement” about the June exploit — which some estimate has run up to $100 million in losses. In the statement, Atomic didn’t point to what exactly led to the exploit, only laying out the four most “probable” causes, including a virus on user devices, an infrastructure breach, a man-in-the-middle attack or malware code injection. According to the company, “less than 0.1%” of app users were affected, but the figure is still rebuffed by many online.

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US lawmakers file ‘SEC Stabilization Act’ to fire Gary Gensler

United States Representative Warren Davidson has introduced the “SEC Stabilization Act” into the House of Representatives. One of the bill’s main provisions is to fire Securities and Exchange Commission (SEC) Chair Gary Gensler. The bill would remove Gensler from office and redistribute power between the SEC chair and commissioners. It would also add a sixth commissioner to the agency, disallow any party from holding a majority on the commission and create an executive director position. The SEC declined to comment on the matter.

BlackRock applies for spot Bitcoin ETF — a US first if approved

BlackRock, the world’s largest investment company, has filed an application for a Bitcoin spot exchange traded fund (ETF). It would be the first crypto spot ETF in the United States, if it receives approval. According to the filing, Coinbase Custody Trust Company would be the custodian of the fund and Bank of New York Mellon would custody its fiat. The SEC has not approved a spot Bitcoin ETF so far despite numerous applicants. The world’s first spot traded Bitcoin ETF was Canada’s Purpose Bitcoin ETF, set up in early 2021.

Binance CEO Changpeng Zhao denies rumors of selling Bitcoin to bolster BNB

Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB token. The rumors have come from several market commentators in the past days, accusing the exchange of intentionally manipulating the market to artificially inflate the value of BNB. CZ said that Binance had not sold any of its BTC or BNB, adding that the crypto exchange still held “a bag” of FTX Token — the native token of the now-defunct crypto exchange FTX.

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U.S. SEC sues Binance and Coinbase amidst crypto crackdown

Binance and Coinbase have been targeted in a new round of lawsuits by the U.S. Securities and Exchange Commission (SEC) against crypto businesses. The regulator pressed 13 charges against Binance on June 5, including those involving unregistered offerings and sales of tokens, and failing to register as an exchange or broker-dealer. The commission also went after Coinbase on similar grounds, alleging that popular cryptocurrencies offered by the exchange are securities. Trading volume across the major decentralized exchanges jumped 444% in the hours following the legal actions. In the six months after FTX’s bankruptcy, SEC crypto-related enforcement actions rose 183%.

SEC lawsuits: 67 cryptocurrencies are now seen as securities by the SEC

The total number of cryptocurrencies the United States securities regulator has labeled as a “security” has now reached an estimated 67, after adding a few more to the list in its lawsuit against crypto exchanges Binance and Coinbase. In its case against Binance, the SEC introduced 10 cryptocurrencies into the securities classification, while it named 13 cryptocurrencies in its Coinbase suit. The “security” label now applies to over $100 billion worth of the market, or around 10% of the $1.09 trillion total crypto market capitalization.

Coinbase CEO’s stock sale was probably not planned to occur a day ahead of SEC suit

Coinbase CEO Brian Armstrong sold company shares the day before the SEC lawsuit against the exchange. The transaction caused a minor stir in the Twitter cryptoverse, as Armstrong avoided a sharp loss by doing so. SEC records show that Armstrong sold 29,730 shares of the company on June 5, the day before the SEC suit. Armstrong has been selling Coinbase stock regularly since November under a 10b5-1 plan adopted in August, which determines the timing and size of transactions in advance. The net worths of Armstrong and Binance CEO Changpeng Zhao have suffered heavy blows due to the suits. Within 30 hours, Armstrong’s net worth plummeted by $289 million and Zhao’s by $1.33 billion. 

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Dogecoin investors accuse Elon Musk of insider trading in amended class-action lawsuit

A group of Dogecoin investors has requested leave to amend a class-action lawsuit against tech entrepreneur Elon Musk, alleging he is responsible for insider trading of DOGE and asserting the token is a security under U.S. Securities and Exchange Commission regulations. According to the complaint, Musk profited off DOGE trading at the expense of other investors by causing the price of the token to spike through actions including changing Twitter’s logo to the Dogecoin logo. As one of the world’s richest people, the Twitter CEO has made frequent statements about Dogecoin to his millions of followers since 2019, often causing the price of the token to surge.

Satoshi Nak-AI-moto: Bitcoin’s creator has become an AI chatbot

Satoshi Nakamoto may have effectively disappeared over 12 years ago, but two artificial intelligence dabblers are seeking to revive the ability to chat with the famed Bitcoin creator. The model, essentially, is OpenAI’s ChatGPT trained on a limited data set, including Nakamoto’s public emails and forum posts, as well as other Bitcoin sources. In testing, the chatbot generates responses that are typically uncertain of the future of fiat currencies and hopeful about Bitcoin. Its goal is to show that AI tools could potentially be used in education, one of the creators said.

Buying a bank won’t solve crypto’s debanking issue — Binance CEO

Binance CEO Changpeng “CZ” Zhao has considered acquiring a bank amid the ongoing debanking of crypto firms across the globe. However, according to CZ, regulatory complexity and capital requirements make it unwise for Binance. “The reality is much more complex than the concept,” said the crypto executive. Binance has recently lost its fiat on-ramp and off-ramp partner in Australia — after difficulties finding a bank partner in the United States earlier this year. The company has been seeking a new payment provider in the country. 

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Binance suspends deposits for bridged tokens, seeks clarity from Multichain team

Crypto exchange Binance suspended deposits for 10 bridged tokens following days of uncertainty surrounding the Multichain protocol. Transactions on the cross-chain protocol have been delayed over multiple bridges in the past few days, with little information from Multichain’s team about the ongoing issues. In a tweet from May 24, Multichain said that some cross-chain routes were unavailable “due to force majeure,” noting that the time for service restoration was unclear. Binance was not the only company to take steps amid the unexplained downtime — the Fantom Foundation removed 449,740 MULTI ($2.4 million) from liquidity on SushiSwap. The MULTI token plunged during the week. On Twitter, rumors circulated that Multichain’s team had been arrested by the Chinese police, with $1.5 billion of smart contract funds under authorities’ control.

FTX 2.0 launching soon? Court filing shows a reboot plan in the works

Bankrupt crypto exchange FTX’s revival plans could soon become reality. According to court filing documents, FTX’s new management had a series of meetings with creditors and debtors in the past month, reviewing plans for restarting the exchange and finalizing the material required for its rebooting as FTX 2.0. The documents also suggest FTX could soon enter into a bidding process. Previous reports pointed out that a reboot could come as early as 2024, as the exchange has already recovered over $7 billion in assets.

Sam Altman’s Worldcoin secures $115M for decentralized ID

The bear market didn’t stop Worldcoin from raising $115 million this week in a Series C round led by Blockchain Capital. Funds will be used to support its decentralized World ID and recently released gas-free crypto wallet, World App. The project was co-founded by OpenAI CEO Sam Altman and built by Tools for Humanity developers to address issues emerging from the exponential complexity of artificial intelligence, such as proving personhood. Worldcoin’s token, WLD, is not available in the United States and some other countries.