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USDC stablecoin issuer Circle neither “finances Hamas” nor does it bank Tron blockchain founder Justin Sun, the fintech firm’s chief strategy officer has asserted. Although Circle had past business dealings with Sun, this ended in February 2023 when it terminated his accounts and those of affiliated companies. Circle Subject to ‘Multiple Regulatory Regimes’ Circle, the issuer of the USDC stablecoin, has rejected allegations that it finances Hamas directly or indirectly, nor does it bank Tron blockchain founder Justin Sun. In a fiery open letter, Circle’s Chief Strategy Officer (CSO) Dante Disparte said his organization is “subject to multiple regulatory regimes” and the applicable anti-money laundering and terror funding laws. In his formal letter addressed to U.S Senators Sherrod Brown and Elizabeth Warren, Disparte suggested that Circle felt obligated to respond to a Nov. 9 letter sent to the two politicians by the Campaign for Accountability. The letter reportedly detailed Circle’s close ties with Sun and Tron’s alleged financing of Hamas, Hezbollah, and the Palestinian Islamic Jihad. In his pushback against Campaign for Accountability’s “false claims,” the Circle CSO referenced his organization’s long history in combating illicit finance activities as well as its partnership with law enforcement agencies. Disparte also addressed claims that the USDC stablecoin was among $93 million in digital currencies that had been marked for seizure by Israeli law enforcement. “Most importantly, public blockchain ledgers show that of the $93 million in digital assets wallets identified by the Israeli government, only $160 was transferred in USDC among those wallets, and none of that was acquired from Circle,” Disparte said. Regarding Circle’s relationship with Justin Sun, the CSO acknowledged that Circle had past dealings but suggested that this was above board because the U.S. government “has not specifically designated Sun or his entities as Specially Designated Nationals.” However, Disparte said Circle stopped dealing with Sun sometime in February 2023 when it terminated his accounts. Disparte ends the letter by reiterating that his organization is willing to collaborate with the two Senators on ways to strengthen regulation in the digital assets space. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

In the past six months, Bitcoin miners’ revenue has dropped by more than 30%, with November revenues approximately $270 million lower than October revenues. The drop in Bitcoin miners’ revenue is attributed to Bitcoin price volatility, increased competition, and higher electricity prices. Gradual Decline in Miner Revenue Bitcoin miners’ revenues have fallen by over 30% in the past six months, despite the gradual increase in the price of Bitcoin from its March 10 low of just over $20,000 to just over $38,000 on Dec. 1, 2023. According to banklesstimes.com data, miners’ November revenue of $615.1 million is approximately $300 million less than the January revenue. Since reaching a high of $918.8 million in January, miners’ revenue has gradually declined in the months that followed. The month of October was the only time this trend was bucked, with miners securing the second-highest monthly earnings of 2023 at $885 million. Commenting on the drop in miner revenue, Alice Leetham, an analyst at Banklesstimes, said: This downturn has sparked widespread interest and concern within the cryptocurrency community, prompting us to delve into the factors contributing to this substantial decline. In the Banklesstimes report, BTC price volatility is identified as one key factor explaining the drop in miners’ revenue. Meanwhile, an earlier report by Galaxy attributes the drop in revenue to what it described as the “incredible increase in network hashrate during the first half of the year.” The increase in the hashrate is due to improved mining economics, the oversupply of second-hand ASICs in the secondary market, as well as the plugging in of new generation mining rigs. Other publications have attributed the revenue drop to the surge in energy prices. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Galaxy Digital CEO Mike Novogratz expects the price of bitcoin to be significantly higher when the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). “We will see a pretty successful shift of psychology … when the government says ‘you are allowed to buy bitcoin,'” he described. Mike Novogratz’s Bullish Bitcoin Prediction Galaxy Digital CEO Michael Novogratz explained why the price of bitcoin is poised to rise “significantly higher” in an interview on Bloomberg TV Wednesday. His bullish prediction hinges on the potential approval of the first U.S. spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC). Novogratz detailed: “There’s a bunch of good things happening for bitcoin. We are going to get an ETF. Right now there’s a lot of anticipation. Some of that is built into the price.” He added that when you actually get a spot bitcoin ETF announcement, which he believes to be two months before it starts trading, Blackrock, Ark, Fidelity, as well as his own firm will “have their sales forces out convincing people to adopt bitcoin.” The Galaxy Digital boss emphasized: The price is going to be significantly higher especially at the time when the Fed is probably cutting rates. “So, could we go to old highs by this time next year? Of course, we could,” he added. Regarding whether the price of bitcoin could rise higher than its all-time high by this time next year, Novogratz pointed out: “Remember, prices are set on the margin, and there aren’t that many sellers of bitcoin. We’re going to have the halving next year which means that the daily supply or inflation rate gets cut in half, so you are really setting up for a wonderful story.” Moreover, he noted: “We’re also going into election year and that uncertainty should help bitcoin in the fact that the U.S., Europe, and Japan still can’t come close to fiscally being responsible.” Once spot bitcoin ETFs enter the market, Novogratz predicted that billions of dollars should flow into the ETF space, if not more. He emphasized: That’s all new money. We will see a pretty successful shift of psychology … when the government says ‘you are allowed to buy bitcoin’ and institutions say ‘this is great.’ SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications. Many expect the SEC to approve multiple spot bitcoin ETFs at once early next year. Do you agree with Galaxy Digital CEO Mike Novogratz’s prediction? Let us know in the comments section below. View the full article

Ripple’s chief legal officer says the U.S. Securities and Exchange Commission (SEC) is “anything but infallible,” emphasizing that the regulator is “bloated, broken, and beleaguered.” He advised investors not to be intimidated when having to deal with the securities watchdog. ‘SEC Is Anything But Infallible’ Ripple’s chief legal officer, Stuart Alderoty, slammed the U.S. Securities and Exchange Commission (SEC) on social media platform X on Thursday. Quoting an article published in the Wall Street Journal stating that the Supreme Court has repeatedly ruled against the SEC in recent years, Alderoty stressed that the securities regulator is “anything but infallible,” noting that the agency is “bloated, broken, and beleaguered.” He also advised investors: “Don’t be intimidated when they come knocking.” Commenting on Alderoty’s statement, lawyer John Deaton shared: “I remember when I sued the SEC and some people said: ‘You’re crazy.’ Why? The SEC is only good at one thing: intimidating people because they have the unlimited resources of the American taxpayer. And some people also get intimidated because maybe fighting the SEC will mean the SEC calls the IRS [Internal Revenue Service] on you as well. This country was born fighting against government oppression and intrusion. It is most American to fight back!” The securities regulator recently lost several legal cases against crypto firms. Last month, Alderoty highlighted three consecutive wins for Ripple Labs against the SEC, including the July 13 decision ruling that as a matter of law XRP is not a security, the Oct 3 decision denying the SEC’s bid for an interlocutory appeal, and the SEC dropping its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The SEC also lost against Grayscale Investments in a lawsuit regarding the conversion of Grayscale’s bitcoin trust (GBTC) into a spot bitcoin exchange-traded fund (ETF). In August, the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale, stating: “The denial of Grayscale’s proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products. We therefore grant Grayscale’s petition and vacate the order.” The court subsequently ordered the SEC to reevaluate Grayscale’s bitcoin ETF conversion application. Many people have criticized SEC Chairman Gary Gensler for taking an enforcement-centric approach to regulating the crypto industry. Gensler has repeatedly stated that crypto is a field rife with hucksters, fraudsters, and non-compliant parties. This month, the securities regulator sued Kraken for the second time this year after the crypto exchange paid $30 million to settle a lawsuit with the regulator in February. There is currently a bill in Congress seeking to remove Gensler as the chair of the SEC. Do you agree with Ripple’s chief legal officer about the SEC? Let us know in the comments section below. View the full article

Ocean, a Bitcoin mining pool that recently raised $6.2 million in a seed funding round led by former Twitter (now known as X) CEO Jack Dorsey, is currently filtering ordinal inscription transactions. Giacomo Zucco, a bitcoiner, confirmed that Ocean was using Knots as a node, a software developed by Luke Dashjr known to filter Ordinal inscriptions. Ocean Bitcoin Mining Pool Filtering Ordinal Inscriptions Ocean, a Bitcoin mining pool, has acknowledged that it is currently applying a filter that affects Ordinals-related transactions. The pool, which recently closed its $6.2 million seed round led by former X CEO Jack Dorsey, excludes certain Bitcoin Ordinals transactions using Knots, a Bitcoin node known to apply these filtering policies. Giacomo Zucco, who was part of the conference as part of the relaunch of the pool, confirmed this fact, stating that it was currently using several filtering policies, excluding what he called “spam.” Zucco stated: Some ‘inscription’ spam is done this way, so it’s filtered away from Knots, which Ocean uses right now for centralized template creation. So shitcoin spammers will have to wait [for] phase2 of Ocean (the real deal) to create their own templates full of sh*t. I guess they are impatient. Ocean’s Bitcoin Mechanic also acknowledged this, stating that the pool would “continue to filter inscriptions spam,” inviting others to mine with other pools if this bothered them. The issue was first raised by checksum0, co-founder and CTO at Pow.re, a Bitcoin mining company, when he found that Ocean was excluding high-value transactions “costing on average 5-10% in fees, much more sometimes.” He declared: Doing spot check of high-paying transactions, I have seen no transactions including any data after op_false … Mining with Ocean WILL cost you money. The findings divided the cryptocurrency community, with some considering this filtered data as spam and agreeing with the measure, while others rejected this behavior, stressing that this was considered censorship. F2Pool, another Bitcoin mining pool, recently admitted it had been excluding transactions from OFAC-flagged addresses but ceased after facing a backlash from the community. What do you think about the transaction filtering policies of Ocean? Do you believe they constitute censorship? Tell us in the comments section below. View the full article

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on yet another cryptocurrency mixing platform, labeling Sinbad.io as a “key money-laundering tool” used by the North Korean Lazarus Group crime syndicate. Sinbad.io, in addition to handling transactions originating from the Democratic People’s Republic of Korea (DPRK), has also been linked to processing transactions associated with drug trafficking and sales on darknet marketplaces. OFAC Sanctions Sinbad.io; Agency Claims Mixer Helped Obscure Funds Stolen From Harmony Bridge, Axie, and Atomic Wallet The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) and OFAC have turned their attention towards digital currency mixing protocols. While Tornado Cash and Blender.io were previously targeted by both agencies, the latest subject of scrutiny is the mixer known as Sinbad.io. This service operates as a bitcoin (BTC) mixing platform, and according to OFAC, its primary function is to obscure transaction details, effectively concealing the flow of funds on the blockchain. OFAC’s investigation has revealed that this mixer has been utilized by the infamous North Korean hacking group, Lazarus Group. Furthermore, it has been implicated in laundering funds obtained from the Harmony Horizon Bridge and Axie Infinity hacks. OFAC has now identified it as the “preferred mixing service” for the Lazarus Group, following the takedown of Blender.io. “Sinbad was used to launder a significant portion of the $100 million worth of virtual currency stolen on June 3, 2023, from customers of Atomic Wallet,” OFAC detailed. “Mixing services that enable criminal actors, such as the Lazarus Group, to launder stolen assets will face serious consequences,” said Wally Adeyemo, the deputy secretary of the Treasury. “The Treasury Department and its U.S. government partners stand ready to deploy all tools at their disposal to prevent virtual currency mixers, like Sinbad, from facilitating illicit activities.” This development comes in the wake of FinCEN’s recent update in late October, where it introduced new regulations requiring financial institutions to report transactions involving international cryptocurrency mixing services. At the time, Andrea Gacki, the director of FinCEN, and Adeyemo expressed their determination to combat illicit activities linked to digital currency mixing services. Even before the proposed rules, the Treasury’s OFAC had been actively taking enforcement actions against mixers such as Blender and Tornado Cash. Simultaneously, OFAC had identified and flagged numerous sanctioned cryptocurrency addresses across various networks. The Treasury also warns that U.S. persons who “engage in certain transactions with the entity designated today may themselves be exposed to sanctions.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Over the past year, the mining pool titan Foundry USA has consistently led the network in terms of hashrate. However, this month, the bitcoin mining operation Antpool has edged ahead of Foundry, albeit marginally, in hashrate rankings. In November, out of the 4,436 blocks that were mined, Antpool was responsible for uncovering 1,218 of them, translating to 27.46% of the month’s global hashrate. Antpool Edges Out Foundry, Leads November Bitcoin Mining Surge After a lengthy period where Foundry dominated, Antpool has recently emerged as a frontrunner in hashrate achievement. Particularly in November, Antpool succeeded in mining the highest number of blocks. Over the recent three-day span, a total of 427 blocks were mined, with Antpool unearthing 126 blocks and Foundry uncovering 114. This translates to Antpool commanding a three-day average hashrate of 29.51%, while Foundry holds 26.70%. For the entire month of November, Antpool’s tally stood at 1,218 blocks, representing 27.46% of the blocks mined over the 30-day period. Foundry was close behind, having mined 1,216 blocks, accounting for slightly less at 27.41%. Notably, Antpool was responsible for mining 12 of the 16 empty blocks during this period. However, in the all-time ranking according to btc.com, Antpool still trails F2pool in the total number of blocks mined since each pool’s inception. F2pool has amassed a lifetime total of 82,410 blocks, while Antpool has mined 79,990, marking 9.76% of all blocks mined. In comparison, F2pool’s percentage stands at 10.06% as of December 1, 2023. Despite Foundry’s consistent lead throughout 2022 and 2023, its overall block count is 30,684, equating to 3.75% of all blocks mined. This places Foundry behind other mining pools like Btc.com, Braiins (formerly Slush), Viabtc, and the now-defunct Btc Guild. Yet, in the past year, Foundry’s dominance is clear: it mined 16,335 out of the 53,811 blocks, contributing 30.36% of the year’s total mining. Antpool, in comparison, discovered 12,041 blocks, making up 22.38% of the total. Both significantly outperform the year’s third largest pool, F2pool, which mined 7,316 blocks, or 13.60% of the year’s total. What are your thoughts on Antpool taking the lead over the past 30 days? Let us know what you think in the comments section below. View the full article

Charles Hoskinson, co-founder of Input Output Global (IOHK) and the Cardano blockchain initiative, recently expressed his frustration in a video over the U.S. regulator’s decision to categorize the cryptocurrency cardano as a security. He’s perplexed and critical about the exemption of bitcoin from being tagged as a security, mocking the situation as a “pathetic joke” and pointing out the apparent free pass granted to “Team Orange.” Hoskinson Shows Frustration Over ‘Team Orange’ Getting a Pass In a video clip shared by Altcoin Daily on a social media platform referred to as X, Charles Hoskinson passionately discussed his views on cardano’s (ADA) classification as a security, contrasting it with bitcoin (BTC) and others in the crypto space. He questions the logic, highlighting what he perceives as inconsistencies and unfair treatment in the regulatory approach. Hoskinson, in the video, questions the absence of expectation of profit among fervent bitcoin supporters, known as the “Orange pill moon boys.” He criticizes the perceived decentralization of Bitcoin, noting that subpoenaing or targeting a few entities could potentially lead to a 51% attack on the network due to the nature of its hashpower distribution. He lambasts this oversight as a glaring, “pathetic f***ing joke.” Following the video’s release by Altcoin Daily, users of platform X reacted to Hoskinson’s assertions. In a thread on X, Blockstream founder Adam Back responded, tagging Hoskinson. Back simplified the distinction, stating, “[Charles Hoskinson] it’s very simple: Bitcoin did not do an ICO, most people thought it had no value, it was mined from zero, it is decentralised, there is no CEO, ICO warchested ‘foundation,’ incorporation etc. so Cardano, ETH etc clearly pass Howey, Bitcoin is a commodity and does not.” Responding to Back, Hoskinson clarified that Cardano didn’t have an ICO. Instead, he detailed an airdrop and subsequent trading of ADA by a diverse group of individuals who also used the platform for various projects. He further elaborated: A voucher sale of a different asset outside of the United States, priced in Yen, settled in Bitcoin, explained in Japanese to Japanese citizens, and without a single U.S. participant does not constitute an ICO of ADA. As per Cardano’s Genesis records, these ADA token vouchers were distributed through sales in Asia from October 2015 to early January 2017. A Japanese company facilitated these sales, which garnered 108,844.5 BTC. The debate continued with Back countering Hoskinson’s explanation, suggesting that an airdrop, premine, and some market activity still classify as an ICO. He also pointed to the reliance on a management team for profit expectations. Hoskinson: ‘I’m Done With Team Orange Lobbying the U.S. Government to Criminalize Everything but Bitcoin’ Hoskinson refuted the notion that an airdrop equates to an initial coin offering (ICO), citing even the SEC’s ambiguity on the matter. He pointed to the SEC’s settlement with EOS and Block.one as a case in point. Hoskinson emphasized that ADA was not publicly offered by a centralized entity, contrasting it with Ethereum’s ICO for ether, which has not been classified as a security. Expressing his frustration, Hoskinson criticized the bitcoin community for labeling non-Bitcoin projects as inferior or fraudulent. He condemned what he perceived as efforts by Bitcoin advocates to push U.S. authorities to outlaw cryptocurrencies other than Bitcoin. He also dismissed the argument that Bitcoin’s mining process was fundamentally different, noting that Satoshi Nakamoto, Bitcoin’s creator, initially had complete control over the network and remained anonymous due to legal uncertainties. The Blockstream executive responded by comparing bitcoin with gold and diamonds, arguing that none of these are securities. Despite claims that gold prices are influenced by sovereign entities and diamond prices by companies like Debeers, Back asserted that they, like bitcoin, are commodities. He maintained that ether, ADA, and similar cryptocurrencies are, in contrast, securities. Furthermore, he emphasized that these assets are “both unregistered, and unregisterable securities too.” What do you think about the debate between Charles Hoskinson and Adam Back? Share your thoughts and opinions about this subject in the comments section below. View the full article

The Singapore-based payment gateway Alchemy Pay has been granted the money services license by the U.S. state of Iowa. Both this license and the money transmitter license obtained from Arkansas nearly two months earlier underline Alchemy’s “dedication to compliance.” Alchemy Now in the Same League as Established Payment Providers Alchemy Pay, a crypto on-ramp and payment gateway, recently said it has been granted the money services license by the U.S. state of Iowa’s banking division. In a statement, the Singapore-based payment gateway said it secured the Iowa license just a few months after obtaining the money transmitter license (MTL) in the state of Arkansas. According to the gateway’s Nov. 23 statement, obtaining both licenses puts Alchemy in the same league with key players in the U.S. crypto market such as Coinbase, X (formerly Twitter), and Moonpay. Robert McCracken, the ecosystem lead at Alchemy, said the license acquisitions demonstrate his firm’s desire to remain compliant whilst improving user experience. “The acquisition of our second Money Services License in the United States underlines Alchemy Pay’s global payment capabilities and our dedication to compliance. We continue to obtain licenses in countries and regions around the globe, improving our user’s experience, and strengthening our network coverage,” McCracken said. In addition to the two licenses, the payment provider said it has completed the application process for MTL licenses in more states with outcomes expected to come in the next few months. Besides the United States, Alchemy has scored similar license successes in Lithuania, Indonesia, and Canada. Alchemy Pay said it also intends to secure licenses in the United Kingdom and Hong Kong. These licenses not only solidify Alchemy’s standing in the crypto payment sector but also extend its credibility into the traditional payment sector. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Steve Hanke, professor of applied economics at Johns Hopkins University, has discussed how U.S. policies have driven central bank gold purchases to record levels this year. In an interview, Hanke stated that these purchases were motivated by the weaponization of fiat currencies like the dollar, which has driven countries in “de-dollarization mode” to take refuge in gold. Steve Hanke Believes Rise in Central Bank Gold Purchases Has to Do With U.S. Dollar Weaponization Professor of Applied Economics at Johns Hopkins University Steve Hanke, a Bitcoin critic and dollarization proponent, has given his take on the return of gold as a reserve currency for central banks. In a recent interview on Jesse Day’s Commodity Culture, Hanke revealed his position about the future of gold as a reserve asset and how U.S. policies have influenced a rise in central bank gold purchases. Hanke believes that the recent rise in U.S. sanctions, the weaponization of the U.S. dollar, and a climate of uncertainty have caused central banks to purchase gold at record levels. He explained: You never exactly know what these central banks are going to do, but the trend right now is a lot of central bank buying, and the reason behind this is that there is a lot of uncertainty, everything has become more politicized in the realm of fiat money. As a result, central banks that had not been players in the gold market have now risen as significant buyers, more so those that are in what Hanke calls “de-dollarization mode” and want to reduce their exposure to the U.S. dollar due to the increasing enactment of sanctions. Bullish Stance Hanke emphasized that since the 9-11 events, the utilization of sanctions has been steadily increasing, but that in the Biden administration, they are “on steroids.” Hanke called this trend “utter stupidity,” causing countries like China and Poland to increase their gold purchases. Poland, which has not traditionally been a strong gold buyer, has accumulated 105 tonnes of gold year-to-date, in line with its policy of having 20% of its reserves in gold, according to statements from National Bank of Poland (NBP) President Adam Glapiński. This situation has caused Hanke to declare a bullish stance on gold for the future, explaining that from a fundamentals perspective, gold looks pretty strong, even if he is not a gold bug in the vein of Peter Schiff, another famous economist. What do you think about the future of gold markets in relation to de-dollarization? Tell us in the comments section below. View the full article

The European Banking Authority (EBA) has recently launched a new consultation process concerning implementing the so-called travel rule for cryptocurrency transactions. The institution is seeking feedback on the defined procedures that crypto assets service providers (CASPs) must complete to collect the needed information to comply with the travel rule, and the actions they must take when getting this information is not possible. European Banking Authority Holds Consultation on Guidelines for Travel Rule Adoption The European Banking Authority (EBA) has opened a new consultation that seeks to receive feedback on the procedures proposed to apply the travel rule to transfers that use wallets hosted by crypto asset service providers. The rules are focused on “preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes” and complement another consultation process made by the institution in June that dealt with due diligence procedures for anti-money laundering processes. In its most recent Opinion about money laundering and terrorism financing risks, the EBA found that most competent European authorities believe risks related to crypto assets service providers (CASPs) are significant or very significant. These risks are derived from many factors, including “the pseudo-anonymity of transactions, the interaction with the dark web, the use of crypto-assets in predicate offenses such as cybercrime, complex fraud schemes, crypto-investment scams, increasing money laundering, and circumvention of sanctions.” Guideline Details The presented guidelines leave out the application of the travel rule for transactions between unhosted wallets, given that these exclude the intermediation of a CASP. However, incoming transactions from an unhosted wallet to a wallet hosted by a CASP will have to comply with the travel rule if the amount involved is over 1,000 euros ($1,096). The guidelines describe a set of procedures that CASPs must apply to determine if the user starting the transaction is in control of both addresses involved. These involve advanced analytical tools, taking photos or videos of the user, sending a predefined amount to the CASP’s account, signing a specific message in the account and wallet software, and requesting the customer digitally sign a message into the account and wallet software, among other actions. CASPs should use at least two procedures to obtain the required data. Nonetheless, if CASPs cannot collect the information after these processes, they should leverage more processes to complete the required information. The consultation will run until February 26, 2024. What do you think about the EBA’s consultation on the travel rule procedures? Tell us in the comment section below. View the full article

A federal judge has barred former Binance CEO Changpeng Zhao (CZ) from leaving the U.S. until the court has made a decision on the U.S. government’s motion to prevent his return to the United Arab Emirates (UAE) before sentencing. The government filed the motion in response to a release order issued by a magistrate judge, granting the former Binance chief permission to go back to the UAE while awaiting sentencing. CZ Cannot Leave the U.S. for Now A federal judge has issued an order restricting former Binance CEO Changpeng Zhao (CZ) from leaving the U.S. until the court determines whether to approve the government’s motion to force the ex-Binance boss to stay in the U.S. until sentencing. “This matter comes before the Court upon the United States’ motion for review of Magistrate Judge’s ruling on defendant [CZ]’s presentencing travel restrictions,” states the order signed by District Judge Richard A. Jones on Monday. “Having considered the briefing, and the files and pleadings herein, the Court determines it will review the decision of Magistrate Judge Brian A. Tsuchida permitting Defendant to return to the United Arab Emirates pending sentencing pursuant to the conditions of his appearance bond.” The order continues: It is ordered that the condition permitting Defendant to return to the UAE pending sentencing is STAYED until such time as this Court resolves the government’s motion for review. Last week, Zhao pleaded guilty to failing to maintain an effective anti-money laundering program and stepped down as the CEO of the world’s largest cryptocurrency exchange. The government also filed a parallel information against Binance for failing to comply with provisions of the Bank Secrecy Act and U.S. sanctions law. As part of the settlements with the U.S. Department of Justice (DOJ), the Treasury Department, the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC), Binance and Zhao will pay a historic sum of more than $4.3 billion. Magistrate Judge Tsuchida issued a release order last week with bail conditions, allowing the former Binance chief to return to the UAE while awaiting sentencing. However, the U.S. government then filed a motion to prevent Zhao from returning home before sentencing. In response, CZ has asked the court to reject the government’s motion, contending that Judge Tsuchida determined he poses no flight risk, having voluntarily appeared before the court to take responsibility and plead guilty. The U.S. government states in its motion that the former Binance chief executive may face up to 18 months in prison. Under Magistrate Judge Tsuchina’s order, the bail conditions require that CZ “post a $175 million personal recognizance bond, secured by two guarantors with cash pledges of $100,000 and $250,000, respectively, and a third guarantor with real property located in Los Angeles, California, valued at more than $5 million,” his legal team described. Do you think CZ should be able to leave the U.S. and return home to the UAE while waiting for sentencing? Let us know in the comments section below. View the full article

In an interesting turn of events, the U.S. Securities and Exchange Commission (SEC) faces challenges in its billion-dollar lawsuit against cryptocurrency figure Richard Heart. A recent court filing reveals that the SEC has yet to successfully serve Heart, complicating the high-profile case. Legal Impasse Delays Billion-Dollar Case Against HEX Creator Richard Heart The SEC’s legal battle with Richard Heart, a well known name in the crypto sphere, took an unexpected twist. According to a court filing, the SEC has encountered difficulties in serving legal documents to Heart. This development raises questions about the progress and future of the lawsuit, which alleges Heart and his entities Hex, Pulsechain, and Pulsex of securities law violations. The lawsuit, filed on July 31, 2023, places Heart at the center of a significant legal dispute over the operation of his crypto entities. The SEC’s complaint accuses him and his companies of engaging in activities that contravene U.S. securities laws, and raising more than $1 billion through unregistered securities offerings. Millions, contends the SEC, were utilized to fund Heart’s extravagant personal acquisitions. Heart, whose real name is Richard Schueler, resides in Helsinki, Finland, complicating the SEC’s efforts to serve him. Efforts to serve Heart began on August 22, 2023, when the SEC requested the Finnish Ministry of Justice’s assistance under the Hague Service Convention. However, as of the latest filing, the SEC has not received confirmation of successful service in Finland. The U.S. regulator told the court that the delay is significant, as it impedes the legal process, potentially prolonging the resolution of the case. The SEC is expected to provide an update to the court by December 15, 2023, regarding their efforts to serve Heart. If unsuccessful, the regulator plans to seek alternative methods of service in line with federal procedural rules. This next step could be crucial in determining how the case moves forward and underscores the legal hurdles in prosecuting international cases involving digital assets. What do you think about the SEC’s issue serving Richard Heart? Share your thoughts and opinions about this subject in the comments section below. View the full article

On November 26, 2023, a stroke of remarkable luck befell a solo miner when they discovered block 818,588, verifying a total of 4,193 transactions. This achievement garnered the miner a total of 6.887 BTC, inclusive of the 6.25 BTC subsidy and transaction fees. Solo Miner’s Slim Odds Pay Off: Claims Bitcoin Block Reward With Mere 2 PH/s Hashrate Echoing a similar event from the end of October, this miner, also affiliated with Solo Ckpool, successfully mined the block. Ckpool is designed to support independent miners, allowing them to retain the entire block reward, unlike other pools where rewards are shared. Con Kolivas, the developer overseeing Solo Ckpool, remarked that this was the 279th block successfully mined by the pool. He noted the rarity of such an event, stating, “A miner of this size would solve a block on average only once every 5 years,” underscoring the miner’s extraordinary luck in this instance. For context, the Bitcoin network’s total hashpower stands at approximately 488 exahash per second (EH/s), or 488 quintillion hashes per second. In comparison, the solo miner’s contribution of 2 PH/s, or 2 quadrillion hashes, represents a mere 0.0004% of the network’s collective hashpower, highlighting the improbability of their success. What do you think about the solo miner discovering a block with such a small amount of hashrate? Share your thoughts and opinions about this subject in the comments section below. View the full article

The crypto community was initially baffled by the massive fee of 83.65 bitcoin, originally attributed to a costly mistake. However, recent revelations paint a darker picture. According to a social media account on X called “@83_5BTC,” hackers stole the funds from the unnamed individual and immediately swept the bitcoin to a different wallet. Alleged Hacking Incident Tied to Bitcoin’s Massive 83.65 Bitcoin Fee Error The alleged victim, @83_5BTC, revealed that after transferring 139 BTC to a new cold wallet, the funds were immediately swept to another wallet by the attackers. The transaction split the sum, sending 55.77 BTC to the hackers’ wallet, while the rest, a staggering 83.65 BTC, was paid as a transaction fee. This incident surpasses the previous high-fee record of 19.8 BTC. Mononaut, the anonymous operator behind the mempool.space bitcoin explorer, weighed in on the incident. He suggested that “the most likely explanation is that the wallet was generated from bad entropy.” In layman’s terms, this means the wallet’s security was compromised due to weak randomization in its creation process. Mononaut’s insight provides a crucial understanding of the technical flaw that may have led to this unfortunate event. Further complicating the issue is the method used for escalating the transaction’s priority, known as “replace-by-fee” (RBF). Mononaut speculates that if the wallet had low entropy, it might have been targeted by multiple attackers, each trying to outmaneuver the other. This competition could explain the unusually high transaction fee, as attackers might use high fees to prevent others from replacing their transactions. @83_5BTC attempted to prove ownership of the affected wallet by sharing a signed message on social media. Mononaut verified the message but cautioned that since the wallet was compromised, it’s uncertain who actually signed the message — the victim or the hacker. This uncertainty further complicates the situation, especially regarding the potential return of the fees by Antpool. As the crypto community grapples with this incident, the focus shifts to wallet security and the importance of proper entropy in wallet creation. Mononaut’s advice is clear: “Let this be a reminder not to take shortcuts with your entropy, and ideally to use multisig for very large sums.” This incident serves as a stark reminder of the risks tied to crypto ownership and the crucial need for heightened security measures. What do you think about the alleged hack and the massive fee that was paid? Share your thoughts and opinions about this subject in the comments section below. View the full article

Amid the rapidly evolving landscape of Ethereum layer two (L2) solutions, Blast, a new entrant, has sparked a wave of discussions in the crypto community. Spearheaded by Pacman, known for his work on the non-fungible token (NFT) marketplace Blur, Blast has garnered both significant funding and scrutiny. Despite being a lead investor in the project, Paradigm’s head of research, Dan Robinson, highlighted issues with “the messaging and execution” of Blast’s launch strategy, while Pacman defends the platform’s mechanics and vision. Paradigm Addresses Blast Launch Dan Robinson of Paradigm, a key investor in the Ethereum L2 platform Blast, has recently discussed the project’s launch via the social media platform X. Robinson cited issues with the messaging and execution, particularly the decision to launch the bridge before the L2 and the restriction on withdrawals for three months. He remarked, “We at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the bridge before the L2, or not to allow withdrawals for three months, since we think it sets a bad precedent for other projects. We also think much of the marketing cheapens the work of a serious team.” Despite these concerns, Robinson acknowledged the team’s proven track record, including their previous work on Namebase and Blur. He stated, “We backed Pacman and his cofounder because they demonstrated an ability to build great products over many years.” Robinson also shared insights into his collaboration with the team on the NFT-collateralized lending protocol, Blend, emphasizing their technical talent and vision for scaling Blur through the L2 chain. Paradigm, known for its role in investing in the crypto ecosystem, takes its responsibility seriously, according to Robinson. He mentioned ongoing discussions with the Blast team and Paradigm’s commitment to investing in strong, independent founders. “We invest in strong, independent founders who we don’t always agree with. But we understand that people may look to us to set an example on best practices in crypto. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously,” said Robinson. Pacman Refutes Allegations Addressing the allegations of Blast being a Ponzi scheme, Pacman, the entrepreneur behind the platform, offered an explanation of the yield mechanics. He clarified that the yields come from sources like Lido and Makerdao, stating, “The yield that Blast provides users can feel too good to be true, so this meme is understandable. But to put it simply, the yield Blast provides comes (initially) from Lido and Makerdao.” Pacman also refuted claims about Paradigm’s involvement in Blast’s go-to-market (GTM) strategy, emphasizing the independence of their approach. “Paradigm had zero involvement in Blast’s GTM. Candidly, they probably would have asked me to change a lot about Blast’s launch if they had been involved,” he explained. He highlighted Paradigm’s expertise in technical design and their contributions to Ethereum development. In response to criticism over Blast’s invite rewards system, Pacman justified the approach as essential for building a robust community. He argued that such mechanisms are not new and are crucial for the growth of the platform. “If you are a user and help make Blast a thriving L2 by bringing friends along, you are providing real value and should be rewarded for that. That’s why invite rewards exist,” Pacman concluded. What do you think about Paradigm’s statement? What do you think about Pacman’s defense? Share your thoughts and opinions about this subject in the comments section below. View the full article

PRESS RELEASE. ReadON, a leading Web3 content layer and application chain, and MOBOX, a pioneer in the Web3 gaming community, are excited to announce a strategic partnership. This collaboration aims to unify the Web3 gaming content community, enhance user experience, and transcend the boundaries of on-chain assets. Content Meets Gaming: A Unified Community Gaming and content are complementary domains. As users engage with games, they consume content that enhances their experience. This partnership integrates these two spheres, with ReadON’s decentralized content community providing foundational support for MOBOX’s impact in the Web3 gaming sector. The Ambitions of the Alliance Through this alliance, ReadON and MOBOX aim at: Expanding Cultural-Geographical Boundaries: ReadON DAO’s strong presence in Northeast Asia provides a platform for MOBOX to influence this market with diverse cultural insights. Building Organic Gaming-Content Infrastructure: ReadON’s mature, decentralized content curation, aggregation, and distribution mechanism will provide robust infrastructural content support for MOBOX. Innovating on Asset Utility: The collaboration aims to break down existing silos of NFT functionality, allowing for deeper engagement and personalization across various application scenarios. MOBOX & ReadON: United for the Upcoming Topic Raffle Season 3 To demonstrate our commitment to building and empowering our communities, ReadON will join forces with MOBOX in launching the Topic Raffle Season 3, featuring the release of co-branded Catto NFT topic parts. This upcoming season expands upon the traditional offerings with an extended prize pool that will include massive READ tokens and MBOX Tokens. To further engage our communities, the probability of winning awards will be both random and dynamically adjusted in relation to the number of participating tickets. Don’t miss out on the MOBOX Topic Raffle Season 3, set to launch at the end of November. Be part of this thrilling event! About ReadON ReadON is a decentralized Web3 content layer and application chain that focuses on addressing revenue sharing and content moderation issues of Web2. Today, ReadON has over 100 B2B clients, including leading cryptocurrency exchanges and growth platforms. It runs several proprietary content services and launched a Web3 content aggregation and distribution community, ReadON DAO, which has already been adopted by over 700,000 users. About MOBOX MOBOX, a beacon of innovation in decentralized gaming, is redefining the landscape by fostering innovation and nurturing the Web3 gaming community. As a community-driven platform, MOBOX offers a unique metaverse experience with interoperable assets and a multitude of thriving games. With MOBOX, you’re not just a player; you’re a pioneer in the revolutionary future of decentralized gaming. Mobox was listed through Binance Launchpool in 2021 and boasts a vibrant and dynamic gaming ecosystem. Related Links ReadON Official Website: https://readon.me/ ReadON Official X: https://twitter.com/ReadOnMe3 ReadON Discord: https://discord.com/invite/readon ReadON Telegram: https://t.me/ReadONCommunity MOBOX Official Website: https://www.mobox.io/ MOBOX Official X: https://twitter.com/MOBOX_Official MOBOX Telegram: https://t.me/mobox_io This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

The price of the BRC20 token ordi (ORDI) slid more than 10% this week against the U.S. dollar after recording substantial gains over the three weeks prior. Despite the recent downturn, ORDI has risen over 300% during the last 30 days and it’s a touch over 25% away from surpassing its all-time price high. ORDI Retreats 10% After 300% Monthly Gain, Sees Significant Trading Activity With Turkish Lira At the end of the first week of November, ordi (ORDI) the BRC20 token built on top of the Bitcoin blockchain skyrocketed in value after Binance announced it would list the coin. This week, however, ORDI has dropped 10% in value over the past seven days and during the last 24 hours, it’s down 2.2%. ORDI’s market valuation on November 25, 2023, is just under a half billion at $446 million. This places ORDI in the 115th-ranked position among more than 10,000 crypto assets listed across 935 exchanges. Over the past day, ORDI has recorded $99 million in global trades, and interestingly, statistics from cryptocompare.com show ORDI has a great deal of trades associated with the Turkish lira, and even more so than its USDT pairs. While ORDI is down 2.2% and more than 10% this past week, it has climbed awfully close to the pinnacle price it hit seven months ago on May 08, 2023. At that time, ORDI was trading for $28.52 per coin, and today, it is exchanging hands for $21.04 per unit. Moreover, over the past 30 days, ORDI has climbed 319% against the greenback. Wallet or rich list statistics from the top ten ORDI wallets indicate that the crypto exchange Okx is one of the largest holders. The centralized exchange has a vast sum of ORDI tokens in the following addresses “bc1q8,” “bc1qg,” “bc1qz,” “bc1qn,” and “bc1qq,” among others. The largest ORDI holder today is the wallet “bc1qh” which commands 2,231,755 ORDI. The address is not flagged so the owner is unknown. What do you think about ORDI’s market performance? Share your thoughts and opinions about this subject in the comments section below. View the full article

Agustin Carstens, general manager of the Bank for International Settlements (BIS), has discussed tokenization’s significance in modernizing the current siloed financial system. Carstens stated that only through tokenization can the world move to a more interconnected and programmable financial system, where several central bank digital currencies (CBDCs) will be transacted seamlessly. BIS Head Agustin Carstens Talks Tokenization as Origin of an International Unified Ledger Agustin Carstens, general manager of the Bank for International Settlements (BIS), referred to the significance of tokenization as a key tech for building an interconnected financial system using central bank digital currency (CBDC). In a keynote speech at the CBDC & Future Monetary System Seminar in Seoul, Carstens explained how tokenization would allow the modernization of the current siloed financial system. He stated: Tokenization is a means of recording money and assets in a digital form on a programmable ledger. In practical terms, this means that users could transfer assets directly through programming instructions, rather than through intermediaries such as account managers who act on behalf of the user. For Carstens, the tokenization of money and other assets and its integration on top of a “unified ledger” will help the current financial system to evolve, allowing a two-tiered currency system composed of wholesale tokenized CBDC and tokenized deposits to be implemented in several countries. Carstens Blasts Outdated Regulatory Frameworks According to Carstens, the technology necessary for this change is already here. Nonetheless, the regulations of each jurisdiction are hindering the advancements in this regard. On this, Carstens declared: The real challenge is to work out the legal and regulatory frameworks, the governance and the communication protocols needed for such a network of networks to operate. In short, we need to build the digital infrastructure. However, he doesn’t think this will happen overnight and that every jurisdiction out there will join a hypothetical unified ledger. Nonetheless, the construction of protocols that allow interconnecting these systems can also help to achieve the desired interoperation goal. He concluded that “the future monetary system needs wholesale central bank money at its core, complemented by tokenized commercial bank money and potentially other tokenized assets.” Carstens has been a fervent proponent of CBDCs, stating before that their issuance would be the only way of “providing money in a form that meets the public’s needs and expectations.” What do you think about Agustin Carstens’ thoughts on tokenization and CBDCs? Tell us in the comments section below. View the full article

Bored Gen DMCC, the issuer of islamic coin, has cooperated fully with the Virtual Assets Regulatory Authority’s ongoing investigation into the token’s issuance and distribution. Bored Gen, however, still needs to “secure appropriate approvals” before it undertakes to distribute the islamic coin (ISLM) in the Dubai market. BG Undertook Remedial Measures The United Arab Emirates (UAE) digital assets regulator, the Virtual Assets Regulatory Authority (VARA), recently revealed that Bored Gen DMCC (BG) — the issuer of islamic coin — had cooperated fully during its investigation into the issuance, marketing and distribution of the token. It added that BG had “undertaken remedial measures, including the implementation of adequate public disclosures for improved market assurance.” However, in its Nov. 16 enforcement notice, the regulator said it had determined that the issues which are the subject of its ongoing investigation constituted “technical non-compliance.” The notice went on to state that BG still needs to “secure appropriate approvals” before it undertakes any distribution of islamic coin (ISLM) in the Dubai market. The notice added: BG may continue business operations related to non-VA Activities, subject to maintenance of regular engagement with VARA and fulfilment of the necessary obligations including full compliance with all applicable regulatory requirements. As previously reported by Bitcoin.com News, VARA blocked the sale and distribution of ISLM after a determination was made that BG lacked the authority to do so. Issuer vs Developer Entity Meanwhile, a statement issued on behalf of BG reveals that the organization is not the issuer of the token as stated by VARA. According to the statement, BG is in fact, a “developer entity” working to develop essential components such as the Haqq Wallet and Launchpad. It also asserts that the public sale of ISLM took place on the Republic platform, a regulated entity based in the United States. In addition, the token sale is said to have adhered to Reg D and S for U.S. and non-U.S. investors respectively. On the other hand, Dubai was explicitly excluded from the sale, the statement added. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

A U.S. filmmaker reportedly made a profit of more than $20 million from a bet on the cryptocurrency dogecoin. Netflix accuses the filmmaker of using funds meant for the production of a TV series to place risky bets on a biotech company, the S&P 500, and dogecoin. Rinsch Lost $5.9 Million in a Matter of Weeks Carl Erik Rinsch, a U.S. filmmaker who reportedly earned a profit of more than $20 million from a dogecoin bet, is being sued by Netflix for allegedly breaching the terms of a contract. The lawsuit accuses Rinsch of misappropriating millions of dollars that were intended to fund the production of a science-fiction television series. Before betting on the meme coin, Rinsch is also accused of using the production funds — approximately $11 million — to place risky bets on Gilead Sciences’ stock. At the time, the biotech firm had begun testing a Covid-19 vaccine and Rinsch reportedly wagered that Gilead Sciences’ stock would soar if the drug proved to be effective in suppressing the virus. The filmmaker is also said to have wagered that the S&P 500 index, which had declined by 30% at that point, would continue to fall. However, neither bet panned out and Rinsch lost $5.9 million in a matter of weeks. According to a New York Times report, in the months that followed Rinsch began to behave “more erratically.” Netflix executives only became aware of the extent of Rinsch’s mental health problems after his wife came forward. This ultimately led to Netflix’s March 18, 2021, decision to stop funding the series. ‘God Bless Crypto’ Despite this decision and the subsequent exchanges between himself and Netflix as well as its lawyer, Rinsch still proceeded to use the remaining $4 million to buy dogecoin. By the time he liquidated his dogecoin position in May 2021, Rinsch’s account with the cryptocurrency exchange Kraken had a balance of more than $27 million. Pleased with the outcome, the filmmaker reportedly said, “Thank you and God bless crypto.” Afterwards, Rinsch went on a shopping spree in which he bought five Rolls Royce luxury cars, a Ferrari, and a Vacheron Constantin watch worth $387,630 among other items. Overall, Rinsch is believed to have spent as much as $8.7 million. Meanwhile, according to the New York Times report, Rinsch, who suffers from autism and attention deficit hyperactivity disorder (ADHD), insists it is Netflix which breached the terms of the contract. For the breach, the filmmaker reportedly wants the streaming service provider to pay him $14 million in damages. An arbitrator has already heard both parties’ arguments and is now expected to give a ruling, the report added. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Martin Shkreli, also known as ‘Pharma Bro,’ directed his attention to former Binance CEO Changpeng “CZ” Zhao’s situation, with CZ having recently pleaded guilty to money laundering charges as part of a $4.3 billion settlement. “Jail ain’t so bad,” Shkreli stressed, speculating that CZ could spend up to 1 year in jail or get probation. Martin Shkreli to CZ: ‘Jail Ain’t so Bad’ Martin Shkreli, also known as ‘Pharma Bro’ due to his links to pharmaceutical companies, has referred to the situation of former Binance CEO Changpeng “CZ” Zhao and the odds he has of serving time in jail. Shkreli, who was sentenced to serve seven years in jail on securities fraud and conspiracy charges, told CZ that “jail ain’t so bad” and speculated about how much time (if any) he could serve according to his plea deal. Zhao pleaded guilty to felony charges related to the Bank Secrecy Act (BSA), with the Department of Justice (DOJ) stating that he had “violated federal law that requires financial institutions to guard against money laundering and terrorist financing.” According to the NYT, Zhao faces up to 18 months in prison under federal sentencing guidelines, but prosecutors are keeping open the possibility of asking for a stiffer penalty. If his sentence is lower than 18 months, Zhao’s deal includes waving his right to appeal. Shkreli explained: If this (BSA) is the charge he may get probation to 1 year, would be a decent deal for CZ to not get hit with title 18, ch 1956. He good on any pound in this case. Camp status, no violence. Might get to work on his push-up game. Section 1956 of Title 18 of the U.S. Code establishes sentences of up to 20 years in jail and fines for anyone who “conducts or attempts to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity.” DOJ Flexes Its Power Shkreli also discussed the real motivations behind the DOJ’s power move, stating that this action had to do with showing “the ability for the U.S. Government to shake you down whenever they feel like it.” He stressed: Remember, anon & friends, the criminal division of the DOJ can do whatever it wants to you, too. This isn’t about ‘the law’ or protecting people. It’s demonstrating the awesome power of government to put you in a cage. This is not the first time Shkreli has discussed jail with a cryptocurrency personality. Shkreli told the same thing to former Terraform Labs founder Do Kwon, having also recently revealed details about former FTX CEO Sam Bankman-Fried’s experiences in jail. What do you think about Shkreli’s thoughts on CZ’s sentence? Tell us in the comments section below. View the full article

Kyber Network said on Nov. 22 that Kyberswap Elastic “experienced a security incident” in which crypto assets worth more than $45 million were stolen. Kyber Network said it was investigating the incident and urged all “users to promptly withdraw their funds.” Kyber Forks Affected by the Incident Kyber Network, the decentralized exchange (DEX) aggregator, confirmed on Nov. 22 that its market maker known as Kyberswap Elastic had “experienced a security incident.” In a post on X (formerly Twitter), the DEX aggregator said it “strongly advise[d] all users to promptly withdraw their funds” while it investigates the incident. recommend also withdrawing from kyber forks such as Horizondex on Linea until there is more info — Spreek (@spreekaway) November 22, 2023 While Kyber Network has not shared details relating to funds lost, a social media user Spreek said assets worth more than $20 million were stolen when Kyberswap Elastic was initially attacked. However, in later posts, the user suggested that the losses were double the initial estimates. “Current total is $47m. Possibly more chains still to follow idk [I don’t know]. For those asking I’m fairly sure this is NOT an approval-related issue and is only related to the TVL [total value locked] held in the Kyber pools themselves,” the DEX aggregator said. The X user said in the absence of new information, he would also recommend withdrawing from certain Kyber forks such as Horizondex on Linea “until there is more info.” Meanwhile, in a later update shared via X, the DEX aggregator claimed that Kyberswap’s aggregator had not been impacted and was “operating fully as normal.” In another update, Kyber Network warned against clicking phishing links or responding to direct messages. However, one social media user suggested the warning came late and scammers were already taking advantage. This claim is seemingly corroborated by a parody account that asked Kyber Network to check if they were eligible to receive refunds. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The U.S. Securities and Exchange Commission’s former head of internet enforcement has detailed why the SEC is a huge winner in the Binance settlements with the U.S. Department of Justice (DOJ), the Treasury, and other federal authorities. He stressed that what Binance has agreed to could “strengthen” the SEC’s lawsuit against the crypto exchange and its former chief executive. ‘SEC Netted a Huge Victory Against Binance’ Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark explained in a lengthy post on social media platform X Wednesday why the settlements between Binance and U.S. authorities, including the Department of Justice (DOJ), are “a huge SEC victory.” He believes that the Binance settlements contain numerous elements that the securities regulator could leverage to bolster its case in the lawsuit against the crypto exchange and its former CEO, Changpeng Zhao (CZ). The DOJ, the Treasury Department, the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC) held a press conference on Wednesday to announce the Binance settlements, pleas, and consent orders. Stark, who founded and served as chief of the SEC Office of Internet Enforcement for 11 years, pointed out that the securities watchdog, particularly Chair Gary Gensler, was “conspicuously absent” from the press conference. Noting that “The SEC appears to be the sole U.S. federal government holdout for a Binance-related settlement,” Stark opined: The SEC netted a huge victory against Binance … without even filing a court document, without even negotiating a settlement agreement, and without even attending the DOJ/CFTC/FinCEN/Treasury press conference. The former internet enforcement chief proceeded to outline multiple ways the securities watchdog could benefit from the Binance settlements. “The SEC now has at its disposal a treasure trove of fresh and comprehensive Binance-related inculpatory evidence gleaned from the various pleadings, orders, attachments, and other Binance-related charging documents,” he began, adding that they will “provide formidable cannon fodder for SEC investigators and litigators to strengthen their Binance-related accusations and contentions.” Binance also agreed on multiple monitorships that will “undoubtedly create extraordinary and unique opportunities for the SEC’s investigative and litigation teams to identify and utilize a perpetual stream of newly discovered inculpatory evidence,” Stark described. Moreover, Stark noted that Binance agreed on “an astonishing level of cooperation” by the exchange, ex-CEO Changpeng Zhao (CZ), and “every single Binance employee.” He added: “The SEC could use the cooperation requirements as leverage during any investigative or discovery disputes … For instance, Binance and Zhao will not want the SEC to complain to FinCEN, DOJ, Treasury, etc. about a lack of Binance-related cooperation, which could, in turn, result in additional fines, penalties [and] even prison time.” Binance also agreed to file Suspicious Activity Reports (SARs), Stark continued, adding that “any newly filed Binance-related SARS will likely create a novel and continual flow of salient and compelling leads and inculpatory evidence relating to Binance.” In addition, he stressed that “Going forward, when the SEC makes reference to criminal conduct at Binance during the course of their Binance-related litigation, those characterizations will not be hyperbole, rumor or conjecture. Classifications of Binance-related conduct as criminal behavior will be fact.” In conclusion, Stark noted that in addition to “the devastating facts alleged in the DOJ indictment against Binance” and “the 92 pages of vast and relentless AML violations” alleged by FinCEN, “the SEC could opt to add claims or facts relating to Binance’s failure to escalate red flags of potentially suspicious activity, as well as failing to adopt an AML program reasonably designed for its business.” The ex-head of internet enforcement concluded: These new AML-related facts/allegations could not only strengthen the SEC’s case but could also trigger greater fines, penalties and disgorgement. Do you agree with former SEC internet enforcement chief John Reed Stark that the SEC is a huge winner in the Binance settlements with the DOJ, Treasury, and other federal agencies? Let us know in the comments section below. View the full article

Blackrock, the world’s largest asset manager, has reportedly pushed for using the in-kind creation method for its bitcoin exchange-traded fund (ETF), diverging from the cash creation model favored by the U.S. Securities and Exchange Commission (SEC). According to reports, Blackrock and other spot bitcoin ETF applicants recently met to discuss their applications with the SEC. Blackrock Prefers In-Kind Creation Model The U.S. Securities and Exchange Commission (SEC) seemingly met with Blackrock, the world’s largest asset manager, to discuss the company’s application for a spot Bitcoin exchange-traded fund (ETF) this week, according to Bloomberg research analyst James Seyffart. Noting that Grayscale Investments has engaged with the SEC regarding its bid to convert the firm’s bitcoin trust (GBTC) into a spot bitcoin ETF, the analyst shared insights on social media platform X on Wednesday, along with posting several slides from Blackrock. He wrote: Looks like Blackrock also met with SEC! There’s a couple slides in relation to in-kind vs cash creation. Based on this it looks like Blackrock prefers in-kind for their bitcoin ETF (makes sense as its probably cleanest structure for them & end investors). ETF units can be created in-kind or in cash. In cash creation, authorized participants provide cash to the ETF issuer in exchange for new ETF units. Bloomberg senior ETF analyst Eric Balchunas also emphasized that Blackrock and Ark Invest are “standing firm on in-kind creates.” He explained that this method is better for investors in terms of spreads and tax, even though “word is that the SEC said you need to do cash creates (to avoid people using unregistered brokers) if you want to get out in the first batch.” Last week, Balchunas shared on X that he has been “hearing chatter” that the SEC’s Division of Trading and Markets has engaged with exchanges, advising them to use the cash-create method for their spot bitcoin ETFs, instead of in-kind. The securities regulator also reportedly asked them to amend their spot bitcoin ETF filings in the next couple of weeks. SEC Chair Gary Gensler recently revealed that the regulator is considering between eight and 10 spot bitcoin ETF applications. A number of people have predicted that the SEC will approve multiple spot bitcoin ETFs at once early next year, including the analysts at JPMorgan. What do you think about Blackrock pushing to use the in-kind creation method for its spot bitcoin ETF instead of the cash creation method suggested by the SEC? Let us know in the comments section below. View the full article