roadrunner

Rollups are structures that have been designed as a way of scaling Ethereum’s capacity to process transactions and data. They group a bunch of tasks and compute them offchain, only posting the result of these transactions to Ethereum, allowing more data to be piled up on L1 (layer one). Ethereum co-founder Vitalik Buterin has been pushing rollups as part of the future of Ethereum scaling since 2020, and with the proposal of Danksharding, its scaling roadmap has become rollup-centric. Rollups and the Scalability Problem Ethereum, one of the first-generation smart contracts-enabled blockchains, has been facing a scalability problem due to its limited capabilities for processing transactions and data. In its base layer, Ethereum can process approximately 15 transactions per second (TPS), which was enough in its first stages but is now insufficient given the popularity of the blockchain. Rollups attack this problem by taking part of the blockchain burden offchain, while maintaining a connection with the parent chain (in this case, Ethereum). Rollups allow processing to be run offchain, only returning a simple result to the parent chain. This achieves two objectives: it lets more data be posted in the chain by other rollups and allows more transactions to be processed quickly at a lesser cost, albeit with a security and decentralization tradeoff. They are called rollups because most use compression techniques to “roll up” a group of transactions and only output the necessary data to the main chain. While this means that the parent chain will still be constrained if the data output is large, it still helps due to the mentioned compression. According to Ethereum co-founder Vitalik Buterin, an Ethereum base-layer ERC20 token transfer costs ~45,000 gas, while an ERC20 token transfer in a rollup takes up 16 bytes of on-chain space and costs under 300 gas. Also, migrating a mainnet smart contract to a rollup is possible without too many changes. Different Kinds of Rollups Depending on the approach each one takes to validate its data, rollups can be classified into two main groups: Optimistic and ZK-rollups. Optimistic rollups always assume that transactions realized and proposed are valid and invite users to provide proof of fraud to demonstrate the opposite. If there is a dispute, a fraud-proof is weighted against the party that submitted the data to the Ethereum chain, and the loser gets penalized, seeing their funds slashed. Optimism, Arbitrum, and Base are optimistic rollups. ZK-rollups rely on cryptography proofs verified by a smart contract on top of the Ethereum network. These validity proofs are updated in each batch of transactions and can be easily verified compared to their optimistic siblings. This makes Zk-rollups cheaper than optimistic rollups. Loopring and Zksync are part of this group. A Rollup-Centric Roadmap Ethereum scalability plans included an L1 solution based on sharding, meaning that data would be divided and processed in parallel to allow more transactions with lower transaction fees. However, this design has been substituted for a rollup-centric sharding approach called danksharding, in which the main chain expands to allow more data to be included, allowing rollups to take advantage of this space. This is the consequence of Vitalik’s Buterin’s rollup-centric scaling proposal, which seeks to turn Ethereum into “a single high-security execution shard that everyone processes, plus a scalable data availability layer.” Buterin estimates that if all protocols and transactions migrate to rollups, Ethereum could hit ~3,000 TPS. However, with the upcoming improvements derived from the implementation of EIP-4844 (proto-danksharding), which allows rollups to post more data to the parent chain and establishes a separate fee market, the capacity of Ethereum could peak at a theoretical max of ~100,000 TPS. What do you think about rollups and their importance for Ethereum scaling? Tell us in the comments section below. View the full article

Blockchain Capital, a venture capital fund for cryptocurrency builders, has announced the closing of two funds that together total $580 million. The fundraiser, the largest one of the company in its ten years of existence, reveals the interest of investors in the blockchain sector as a source of business opportunities. Blockchain Capital Raises $580 Million for Two New Funds Blockchain Capital, a crypto-focused venture capital powerhouse, announced the launch of two new funds directed at investing in cryptocurrency startups. Together, these funds total $580 million, proving investors are still interested in the blockchain sector. The fundraiser, which is the biggest one in the firm’s history, reflects the trust in the “long-term perspective and experience” of the company. In a press release, Spencer Bogart, general partner at Blockchain Capital, explained the significance of measuring the times and knowing how to navigate difficulties in the industry, stating that “instead of recognizing the quieter, fundamental indicators of long-term value creation, investors often misjudge innovation’s tempo and play ahead of the beat.” The two venture funds, the group’s sixth early-stage fund, and its first “opportunity fund,” will allocate two-thirds and one-third of the $580 million for their investments, respectively. These will focus on six sectors: decentralized finance, centralized finance, centralized infrastructure, decentralized infrastructure, gaming, and consumer/social. Optimistic Even in Bear Market The firm remains optimistic about the evolution of the market and how blockchain and crypto might keep growing even with the current challenges. Blockchain Capital stated that its strategy was “about harnessing blockchain technology to realign incentives, reestablish user trust, and reengineer the social contract of our increasingly digital world.” The last fund launched by the company dates back to 2021 when Blockchain Capital raised $300 million from partners like Paypal and Visa for its fifth venture capital fund. In this new phase, the company will continue to focus on blockchain and crypto opportunities, disregarding any expansion to other fields, including artificial intelligence (AI). About this, Bogart stressed: There’s always been temptation across VCs to experiment in new sectors, but we have no intent to expand and become an AI fund or hedge fund and trade tokens. The firm hopes to allocate the raised capital during the next three years. This timeline can be accelerated to two years or slowed down even to five years, depending on the opportunities available, according to Bogart. What do you think about Blockchain Capital’s latest fundraiser? Tell us in the comments section below. View the full article

Recent data shows a single mining pool controls more than 53% of the hashrate for the cryptocurrency network Zcash. On September 19, 2023, the crypto mining pool Viabtc had 4.2 giga solutions per second (GSol/s) of Zcash’s total 7.84 GSol/s hashrate. Electric Coin Co., which oversees the Zcash project’s codebase, acknowledged the issue Tuesday, citing a “lack of finality.” Zcash Network Hashrate Faces Dominance: Industry Players and Electric Coin Co Respond Recently, chatter within crypto circles has centered on the Zcash protocol, especially after observations that Viabtc holds over 51% of the network’s entire hashrate. On September 19, 2023, at 6:49 p.m. Eastern Time, archived records reveal Viabtc’s hashrate dominating with 53.69% of the total, registering at 4.2 GSol/s out of an overall 7.84 GSol/s. Just days prior, the crypto exchange Coinbase released a “Security PSA” titled “Observed risks in Zcash mining pool distribution.” In the PSA, Coinbase detailed the prevailing issue and mentioned its direct engagement with the Zcash team. To safeguard customer assets from potential issues, Coinbase took measures including shifting its Zcash markets to a “limit-only state.” Alongside this Coinbase stated: [Coinbase] increased the Zcash confirmation requirement to 110 blocks to reduce risk of double-spending or fraudulent transactions. This increases deposit time from ~40 minutes to ~2.5 hours. Following the release of the blog post, Electric Coin Co. (ECC) took to social platform X to address the PSA. “ECC is aware of this issue, and we’ve had conversations with Coinbase, Viabtc, Zcash’s security lead, and [Zcash Community Grants],” ECC stated. Emphasizing Zcash’s decentralized nature, the team pointed out that, “Zcash is a decentralized, open-source network with no ‘lead developer,’ no ‘issuer,’ and no org that controls it.” ECC underscored the crux of the issue: finality. The company explained, “the problem is caused by a lack of finality, which affects all proof-of-work blockchains.” The firm’s proposed solution? “Our Trailing Finality Layer (TFL) proposal is intended to fix that by providing finality for Zcash.” Further, ECC highlighted a shift to proof-of-stake (PoS) as a beneficial move for Zcash, tagging it as one of their “top four priorities.” ECC added, “If the community chooses to activate the TFL hybrid-PoW-PoS approach, that would enable finality on the Zcash network sooner than an all-in-one shift to proof-of-stake. The next step in our PoS R&D is to build a prototype of TFL to see how it performs.” What do you think about the state of Zcash’s network hashrate and the offset mining pool distribution? Share your thoughts and opinions about this subject in the comments section below. View the full article

A judge in the U.S. has rejected a request by a lawyer who laundered $400 million from the Onecoin crypto pyramid to have a new trial. The ruling clears the path for sentencing 54-year-old Mark Scott despite a key prosecution witness admittedly lying in court. Judge Not Convinced in Onecoin Lawyer’s Innocence Despite Lies Told by Witness One of the lawyers who helped the organizers of the notorious crypto Ponzi scheme Onecoin launder money will not get a new trial despite the lies of a witness against him, the brother of Onecoin’s mastermind, “Cryptoqueen” Ruja Ignatova, Konstantin. Prosecutors claimed that Mark Scott made $50 million for setting up a phony investment fund that was used to process funds that Ignatova, still wanted by the FBI, Interpol, and Europol, took from the scam which collected $4 billion from defrauded investors around the world. Scott, a former Locke Lord partner, was found guilty in November 2019, Bloomberg reminded in a report. He used the money he received to pay for a lavish lifestyle, including purchases of expensive homes in Cape Cod, Massachusetts, luxury items and cars as well as a large yacht. On Monday, U.S. District Judge Edgardo Ramos denied his request for a new trial, stating he wasn’t convinced that “an innocent person may have been convicted” despite the lies of Konstantin Ignatov, one of the co-founders of Onecoin, from the witness stand. Konstantin, who aided Ruja Ignatova in the fraud, was arrested in Los Angeles four years ago, pleaded guilty to Onecoin-related charges, sought witness protection in the United States, and agreed to testify against Mark Scott. Scott’s defense sought a new trial based on claims about legal mistakes during the original one and evidence that Ignatov had given false testimony. Judge Ramos noted that prosecutors did not dispute that he lied about certain things. His ruling now paves the way for Scott to be sentenced. “We are disappointed that the court did not grant a new trial given the undisputed evidence that the Government’s sole cooperating witness perjured himself,” Scott’s lawyer, Arlo Devlin-Brown, said in a statement, adding that his client intends to appeal the ruling. Onecoin lured victims by offering them to invest in a fake cryptocurrency with the same name, branded as the “Bitcoin killer” at some point. It launched in 2014 and operated as a multi-level marketing scheme. Ruja Ignatova was last seen in 2017 and is still missing. Onecoin’s other co-founder, Karl Sebastian Greenwood, was recently sentenced to 20 years in prison in the U.S. Do you think Mark Scott’s request for a retrial has sufficient grounds? Share your thoughts on the case in the comments section below. View the full article

Citigroup has announced the creation and piloting of Citi Token Services for cash management and trade finance. “Citi Token Services will integrate tokenized deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities,” the financial giant explained. Citi Launching New Token Services Citigroup Inc. (NYSE: C) announced on Monday the “creation and piloting of Citi Token Services for cash management and trade finance.” The financial giant’s Treasury and Trade Solutions (TTS) explained: The service uses blockchain and smart contract technologies to deliver digital asset solutions for institutional clients. Citi Token Services will integrate tokenized deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities. “Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks,” said Shahmir Khaliq, Citigroup’s Global Head of Services. Citi set up a digital assets group within its wealth management unit in June 2021 to help clients invest in cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDCs). A few months later, the financial giant reportedly sought to hire 100 people for its new crypto team. In May last year, Citi participated in a funding round for Talos, a global firm that provides institutional digital asset trading technology. Khaliq further commented on Monday: “The development of Citi Token Services is part of our journey to deliver real-time, always-on, next-generation transaction banking services to our institutional clients.” The Citi executive added: “This development goes hand-in-hand with our industry-leading work on the Regulated Liability Network to create interoperable digital asset solutions on a multi-bank basis.” Ryan Rugg, Citi Treasury and Trade Solutions’ global head of Digital Assets, detailed: “Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut-off times and gaps in the service window will be reduced.” What do you think about Citigroup launching blockchain-based token services? Let us know in the comments section below. View the full article

A fraud investigation of cryptocurrency exchange JPEX in Hong Kong has led to the shutdown of some trading activities on the platform, the arrest of multiple people, and increased regulatory scrutiny of the entire crypto sector. “This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed,” Hong Kong Chief Executive John Lee stressed. Crypto Exchange JPEX’s Troubles Continue Cryptocurrency exchange JPEX announced Monday that it has suspended some trading activities on its platform. This decision comes as the Hong Kong police persist in their investigation of the exchange. The announcement explains that users will be unable to create new orders through the platform’s Earn Trading interface. The exchange claimed that it was “negotiating with … third-party market makers to resolve the liquidity shortage.” On Tuesday, Hong Kong Chief Executive John Lee said at a news conference: This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed. Lee emphasized that the Hong Kong Securities and Futures Commission (SFC) “will monitor the situation very closely and ensure that investors are sufficiently protected.” He further noted that the government will step up education to ensure that investors have a better understanding of the risks involved in crypto trading and the regulatory framework governing crypto trading platforms. Elizabeth Wong, head of the SFC’s fintech unit, said the regulator was investigating whether JPEX had violated the anti-money laundering ordinance, and it had referred the case to the police. The report triggered an investigation by the Commercial Crime Bureau. The SFC subsequently issued a warning to investors to exercise caution when dealing with JPEX, emphasizing that the exchange had not submitted any license applications. The regulator further alleged that JPEX was making false claims about having obtained authorizations from overseas regulators. Moreover, the financial regulator emphasized that the trading platform had promoted products with returns on savings that were “too good to be true” and many investors relied on misleading statements from social media influencers who were paid promoters. According to the Associated Press, the police said Tuesday that they have frozen bank accounts worth 15 million Hong Kong dollars ($1.9 million) and seized three properties valued at 44 million Hong Kong dollars ($5.6 million) related to the exchange. They also revealed that they had received 1,641 complaints about JPEX involving $1.2 billion Hong Kong dollars ($153 million.) What do you think about the troubles at cryptocurrency exchange JPEX? Let us know in the comments section below. View the full article

Economist Peter Schiff has warned that the U.S. economy is headed for a tragic ending. “We’re going to have a dollar crisis and a sovereign debt crisis,” he stressed, cautioning that the Federal Reserve is “going to print money until the dollar collapses.” He added: “I think that day of reckoning is at hand.” Peter Schiff Foresees ‘Tragic Ending’ Economist and gold bug Peter Schiff issued more dire warnings about the U.S. economy and the U.S. dollar in an interview on First TV last week. Schiff explained that the current inflation we are experiencing has its origin in the 2008 financial crisis. “What the government did in response to that crisis — QE1, QE2, QE3 — all of that, plus what we did during Covid, that is the source of all this inflation. And it’s going to continue to get worse as long as we continue to run these massive deficits,” the economist explained. Noting that the U.S. is running annual budget deficits of around $2 trillion and its national debt continues to increase, he cautioned: This is going to lead to much higher inflation in the future than what we’ve experienced in the past … I think inflation is going to be a much bigger problem in 2024 than it was in 2023. “Interest rates are a price. And it’s an important price for a lot of companies, just like labor, and rent, and raw materials, companies borrow money to conduct their business, to make capital investments, to expand. A lot of these companies have taken up debt over the years and now the cost of servicing that debt has risen sharply,” the gold bug continued. Schiff also warned about the collapse of the USD. “You can already see the world is trying to divest itself of the dollar. There’s a big movement to look for alternatives to the U.S. dollar. They’re there and that’s happening,” he emphasized, predicting: “As our trading partners move away from the dollar, the dollar is going to fall very fast. Prices are going to rise much faster than they have been and at some point, it’s going to spiral out of control.” The economist concluded: The story is going to have a tragic ending, unfortunately. We’re going to have a dollar crisis and a sovereign debt crisis. The Fed is going to print money until the dollar collapses. “I think that day of reckoning is at hand. I don’t know that it’s tomorrow, but it’s coming sometime soon,” he clarified. Last week, Schiff similarly warned about a massive crisis and a rush to get out of the U.S. dollar. He has repeatedly cautioned that a U.S. dollar collapse is inevitable. In July, he advised everyone to get out of the dollar now, emphasizing that the Federal Reserve is wrong about its recession outlook. Last month, he said the U.S. economy will experience a “full-blown financial crisis” before the Fed reaches its inflation target. What do you think about the warning by economist Peter Schiff? Let us know in the comments section below. View the full article

New York’s financial regulator has significantly reduced the number of pre-approved cryptocurrencies that licensed crypto trading platforms can list. XRP, dogecoin, litecoin, and ethereum classic are among the coins removed from the Greenlist. The regulator also proposed new crypto guidance that “heightens risk assessment standards for coin-listing policies and tailors enhanced requirements for retail consumer-facing businesses.” New York Updates Crypto Greenlist On Monday, New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris issued an update on the department’s “ongoing initiative to strengthen DFS oversight of virtual currencies.” The DFS also published an updated list of cryptocurrencies approved for all licensees to list or custody. Any entity licensed or chartered by the DFS to conduct virtual currency (VC) business activity in New York “may list coins on the Greenlist without having a separate DFS-approved coin-listing policy,” the regulator detailed, noting that if a crypto entity decides to list a coin on the Greenlist, it must notify DFS at least 10 days prior to offering the coin in New York. The list published on Monday comprises bitcoin (BTC), ethereum (ETH), Gemini dollar (GUSD), GMO JPY (GYEN), GMOUSD (ZUSD), Pax Gold (PAXG), Pax dollar (USDP), and Paypal dollar (PYUSD). The DFS greenlist was previously much longer and included cryptocurrencies that were only approved for custody, listing, or both. In July, the greenlist comprised 0x (ZRX), aave (AAVE), bancor network token (BNT), basic attention token (BAT), Binance USD (BUSD), bitcoin (BTC), bitcoin cash (BCH), chainlink (LINK), dogecoin (DOGE), ethereum classic (ETC), ethereum (ETH), Gemini dollar (GUSD), GMO JPY (GYEN), kyber network (KNC), litecoin (LTC), livepeer (LPT), lumens (XLM), omisego (OMG), Pax gold (PAXG), Pax dollar (USDP), Ripple (XRP), synthetix (SNX), wrapped bitcoin (wBTC), and z.com USD (ZUSD). The announcement further details: Today’s proposed guidance for coin-listing and guidance on the general framework for Greenlisted Coins enhances the original framework issued by the Department in 2020. According to the DFS, the guidance published on Monday “heightens risk assessment standards for coin-listing policies and tailors enhanced requirements for retail consumer-facing businesses.” It also “requires licensees to develop and submit to DFS for approval a coin-delisting policy that is compliant with this proposed guidance” and “updates the DFS Greenlist, the list of coins and tokens approved for all licensees to list or custody, and Greenlist process.” The proposed guidance is open for public feedback until Oct. 20, the announcement concludes. What do you think about the updated list of greenlisted coins? Let us know in the comments section below. View the full article

On September 19, 2023, Microbt, the manufacturer of bitcoin (BTC) application-specific integrated circuit (ASIC) mining rigs, revealed its intentions to introduce an innovative mining machine with an efficiency rating of 1X joules per terahash (J/T). This announcement from Microbt closely follows Canaan’s recent release of the A1466I, which also claims an efficiency rating of 1X J/T or approximately 19.5 J/T. Meanwhile, Bitmain is gearing up to launch a new series later this week, anticipated to align closely with this efficiency benchmark. Microbt Set to Debut New Bitcoin Mining Rig Series Shortly before Bitmain’s planned announcement of the new S21 Antminer series and following Canaan’s release of two new Avalon mining rigs, Microbt, a key competitor, unveiled their latest offering: the new M60 series BTC miners. While Microbt already provides a mining rig (M53S++) capable of delivering 320 terahash per second (TH/s), it maintains an efficiency rating of approximately 22 J/T. Luxor and the team at hashrateindex.com reported that Microbt “overclocked this model to a mind-blowing hashrate of over 360TH/s.” However, in Microbt’s Tuesday announcement, specific details regarding the hashrate output of the new M60 series were not provided. The statement specifies that the new M60 series will be unveiled on October 24, 2023, during the Blockchain Life 2023 event in Dubai. The only detail provided about the M60 series is that it will include a rig with an efficiency rating of 1X J/T. In addition to this announcement, on September 5, Microbt revealed an autumn sale for earlier-generation mining rigs, running until September 28. Towards the end of this week, on September 22 to 23, Bitmain is set to launch its Antminer S21 line at the 2023 World Digital Mining Summit (WDMS). The S21 series will also feature a miner with an efficiency rating of 1X J/T. What do you think about Microbt’s plans to launch a new bitcoin miner with an efficiency rating of 1X J/T? Share your thoughts and opinions about this subject in the comments section below. View the full article

Introduction Exciting news for the crypto community—TEE Token has now been listed on the LBank Exchange! In a world grappling with the complexity and volatility of the cryptocurrency market, the Guarantee Token Team proudly unveils TEE Token. Crafted to defy conventional paradigms, TEE Token pioneers a coin ecosystem centered on generating consistent profits from trading activities. Armed with a proprietary algorithm, the team strives not just to promise, but to prove results by perpetually increasing the value of Guarantee Token. Addressing the Crypto Market Complexities For investors who face the ongoing challenges of market volatility and complex trading conditions, TEE Token arrives as a savior. It combines next-generation automated trading algorithms, real-time community-driven insights, and a robust trading infrastructure designed to yield consistent gains. Trading Modalities Specializing in a plethora of cryptocurrencies, the TEE Token system employs a multi-pronged trading approach. It exploits market volatility to its advantage through various strategies like day trading, swing trading, and algorithmic trading. This inclusive approach makes the platform attractive to both seasoned traders and newcomers alike. High-Octane Algorithms Harnessing artificial intelligence and machine learning technologies, the TEE Token system employs a suite of sophisticated algorithms. These algorithms scrutinize real-time market indicators, historical data, and emerging trends to initiate highly accurate trades. This ensures optimized trading decisions, minimal emotional biases, and increased profitability. Risk Mitigation Strategies Built with robust risk management protocols, the system employs stop-loss and take-profit orders. This intricate framework allows TEE Token to minimize potential losses while capitalizing on profitable opportunities, thereby making it a secure yet lucrative investment avenue. Revenue Generation and Token Appreciation Revenue from the TEE Token’s intelligent trading strategies continually feeds back into the ecosystem, boosting the Guarantee Token’s value. The team meticulously balances accounts to expand revenue, while a part of the accumulated cryptocurrency is securely stored in offline cold wallets. Tokenomics Total Tokens Issued: 10 billion Token Name: Guarantee Token Symbol: TEE Network: TRC20 These tokens aim to enhance user engagement, expand the community, and subsequently, increase the Guarantee Token’s value through staking and other value-added events. The Sale Mechanism Not adhering to a fixed sales period, TEE Token adopts a random sale strategy. This ensures every potential investor has a fair chance to participate. Additionally, the team has integrated a guarantee method for those who invest during the token’s locked periods: A full refund is offered if the unlock price is lower than the purchase price. Additional tokens if the unlock price is higher than the initial purchase price. The Roadmap to Tangible Results Driven by a commitment to double the token value annually, TEE Token departs from the abstract promises often seen in company roadmaps. For them, financial outcomes are the ultimate measure of success. The Guarantee Token Team is committed to delivering results that continually elevate the asset value for all TEE Token holders. Conclusion TEE Token emerges not as just another cryptocurrency but as an archetype in secure and profitable cryptocurrency trading. Combining proven performance, cutting-edge technology, and a solid commitment to tangible results, it offers an investment opportunity like no other. As a testament to its growing stature, TEE Token is now proudly listed on the LBank Exchange. View the full article

Jeremy Lorenzo, aka “Poops,” has given more insights on the difficulties that former FTX CEO Sam Bankman-Fried is allegedly facing during his stay at Brooklyn Metropolitan Detention Center (MDC). Lorenzo shared that Bankman-Fried had computer code confiscated and that he might have been moved due to being “extorted and physically harmed daily.” Sam Bankman-Fried Allegedly Facing Difficulties in Jail More details about the particulars of Sam Bankman-Fried’s (SBF) stay in the Brooklyn Metropolitan Detention Center (MDC) have recently been shared by Jeremy Lorenzo, aka “Poops.” Lorenzo reported last week that Bankman-Fried’s difficulties continue, with the former FTX boss constantly being harassed by his fellow inmates and even having problems with correctional officers (CO). On September 6, Lorenzo reported that Bankman-Fried’s cell was searched by his CO and had some items confiscated. Alonzo declared: They found a number of letters with what appeared to be computer code on it. The papers were confiscated because they believe SBF is coding on paper or making drafts of code. He further explained that it was not allowed to conduct business from prison and that this likely prompted the seizure of these supposed code letters. ‘Extorted and Physically Harmed’ Lorenzo, who came into the spotlight after being in a Twitter space where he and Martin Shkreli, aka “Pharma Bro,” shared information about how Bankman-Fried’s life had been going in prison, also stated that Bankman-Fried might have been moved from Brooklyn MDC due to several complications. On the subject, Lorenzo stated: SBF may have been moved from MDC Brooklyn due to being extorted and physically harmed daily. According to my source he wasn’t allowed to sleep on his own bunk but was forced to sleep on the floor. The reports are consistent with what he said previously when he stated that, at first, Bankman-Fried was not even able to enter his own cell because he was considered a “chomo” (prison slang for child molester), meaning that any inmates sharing a cell with him would have their reputations affected. There has been no official acknowledgment of this situation from Bankman-Fried’s defense. However, Bankman-Fried’s attorneys are seeking his release from jail, albeit due to other motives linked to his inability to review discovery documents on the provided laptop in Brooklyn MDC due to the poor internet connection available at the center. What do you think about the reports of former FTX CEO Sam Bankman-Fried being “extorted and physically harmed” at Brooklyn MDC? Tell us in the comments section below. View the full article

PRESS RELEASE. Wirex, a major player in crypto payments with over 6 million users, has chosen to partner with Polygon CDK (Chain Development Kit) to create a new App Chain focused on payments, named W-Pay. This move marks a significant development in the world of cryptocurrency payments. By utilizing Polygon CDK, an advanced blockchain technology toolkit, Wirex aims to enhance the performance and security of its payment system. This technology facilitates faster and more secure transactions. Pavel Matveev, Wirex’s CEO, explained, “Using Polygon CDK allows us to transition our payment infrastructure to the blockchain, improving efficiency and enabling seamless integration with various decentralized applications.” Wirex’s status as a regulated entity and a principal member of Visa and Mastercard positions it uniquely to innovate in the payment industry. Matveev added, “Our initial plan includes introducing a non-custodial Visa card for cryptocurrency transactions, making digital assets more accessible in everyday life. Our goal is to bring all 6 million Wirex users into this ecosystem.” Jordi Baylina, Co-Founder of Polygon, expressed excitement about the partnership, stating, “Wirex’s adoption of Polygon CDK to create their payment system has the potential to introduce fresh ideas and expand the adoption of digital payments.” To further enhance the utility of the Wirex ecosystem, the new Wirex App Chain will use Wirex’s own token, WXT, for transactions. This move is expected to increase the demand and functionality of WXT, prompted by interest from large enterprises. Wirex’s presence with users across various regions underlines its commitment to transforming digital-age payments. With millions of users worldwide, Wirex has been instrumental in making cryptocurrencies accessible for everyday transactions since its inception in 2015. Founded by Pavel Matveev and Dmitry Lazarichev, Wirex has provided a user-friendly platform for buying, storing, and using cryptocurrencies alongside traditional currencies. Their specialized card allows users to make cryptocurrency transactions in their daily lives. Wirex continues to evolve its product offerings to align with market trends, while also adhering to regional regulations and securing necessary licenses. As a pioneer in the industry, Wirex introduced its own native utility token, WXT, and initiated the world’s first cryptocurrency reward program, Cryptoback, offering users cryptocurrency rewards for their transactions. To adapt to the growing Web3 landscape, Wirex expanded its product suite to enable mainstream access to decentralized finance (DeFi) and wealth management, introducing features like high-interest savings and partnering with decentralized finance platforms. While headquartered in London, Wirex has expanded its presence globally and processed over $20 billion worth of transactions. With rapid expansion into new territories, including the United States and Australia, Wirex is well-positioned to support and promote the mass adoption of cashless transactions through innovative solutions. For more information, please contact: E-mail: press@wirexapp.com Website: wirexapp.com 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

About 52 virtual currency operators have shown interest in joining Taiwan’s financial market, the Financial Supervisory Commission has said. The commission also said that it is planning to announce the region’s first virtual asset management guiding principles sometime in September. Virtual Asset-Specific Laws Taiwan’s Financial Supervisory Commission (FSC) recently revealed that some 52 virtual currency operators have expressed interest in joining the Taiwanese financial market. According to the regulator, some of these operators have processed the legal documents on money laundering prevention while others have yet to complete this step. As explained in one local report, the FSC made these revelations during a public hearing conducted by a local legislator Guo Guow. In addition, the regulator also revealed that it is planning to announce sometime in September the first virtual asset management guiding principles. The report also suggested that authorities in the region have however not ruled out setting up laws specific to virtual assets. Yet, before such laws are enacted, virtual assets will reportedly be regulated under the Money Laundering Prevention Act. As per the report, operators that fail to abide by the anti-money laundering laws face fines that range between $69,000 and $1.38 million. However, the report said under the current guidelines, aggrieved virtual asset investors cannot lodge complaints against operators with the Financial Review Center. Nevertheless, the FSC said it will still attempt to protect virtual asset users via other methods at its disposal. Some of these methods include asking operators to separate their assets from users’ funds. Meanwhile, Huang Houming, deputy director of the Securities and Futures Bureau, said after the guiding principles are released later this month, operators will be encouraged to establish associations and self-regulate. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

With the issue of inflation rising as a real problem for global economies last year, there has been a renewed need for people to seek a way of preserving their purchasing power. Flatcoins, stable currencies that change their value according to the inflation in a determined jurisdiction, have surged as a crypto-based solution for the issue. Flatcoins and Their Proposal The problem of rising inflation has gained notoriety this year as large world economies that had traditionally kept prices relatively under control were affected by a loss of purchasing power. For example, U.S. inflation touched 9.1% during 2022, reaching one of its highest levels since 1981. This rise prompted a swift response from the Federal Reserve, which started hiking interest rates to address inflation. However, the problem of losing purchasing power remains for citizens and companies that have to deal with these price distortions. Flatcoins are designed to address this issue by proposing inflation-adjusted stablecoins that allow users to preserve this purchasing power, meaning that if one unit of this proposed token serves to purchase a determined item today, it would be able to do so five years from now. The concept of flatcoins was coined by former Coinbase CTO Balaji Srinivasan and Sam Kazemian, the founder of the Frax stablecoin protocol, during a private conversation when they were discussing the idea of a stablecoin that would preserve the standard of living of its users. Some Examples As a result of these conversations, Kazemian created one of the first inflation-adjustable stablecoins, the Frax Price Index (FPI), which is continually modified depending on the CPI-U (All Urban Consumers Consumer Price Index) unadjusted 12-month inflation rate reported by the U.S. Federal Government. This is achieved by leveraging an oracle that posts these numbers onchain to adjust the peg percentage once per month. However, due to the criticism that the recent changes in the calculation of the U.S. CPI have received, other protocols have decided to base their flatcoin proposal on a personalized inflation index. This is the case for Nuon, a flatcoin protocol that uses Truflation, an independent inflation index oracle, to update its data and peg daily. Further Interest The concept of flatcoins and their utility has many in the industry interested in their development. Brian Armstrong, CEO of Coinbase, has featured flatcoins as one of the startups he would build today to issue “a better form of money enabled by crypto.” Armstrong stated that the company that manages to build this solution will have a “huge impact” on the market. Base, the Coinbase-backed Ethereum rollup, has also included flatcoins as one of the “critical areas” that can be seeded in by its ecosystem fund. The fund declared that it would be “excited to hear from teams that are exploring their own system of stablecoins/ flatcoins, or focusing on ways to increase adoption of already existing systems.” What do you think about flatcoins and their value proposition? Tell us in the comment section below. View the full article

The decentralized crypto exchange Sushi is expanding to the Aptos blockchain. The team noted that the move marks Sushi’s first expansion onto a non-EVM blockchain. From Ethereum to Aptos Sushi is a decentralized exchange (dex) and automated market maker (AMM) built on the Ethereum blockchain. It allows users to trade crypto assets and provide liquidity in return for rewards. Launched on August 28, 2020, The dex also has a native governance token called SUSHI. “By leveraging Aptos’s Move programming language, Sushi is initially introducing its v2 Automated Market Maker (AMM), with more integrations to come,” Sushi said in its announcement. The Sushi team believes the Aptos integration will unlock deeper cross-chain liquidity and elevate the trading experience across chains. Aptos is a new layer one (L1) blockchain focused on scalability and claims to provide reliability, security, and usability. Its Move programming language enables developers to build Web3 applications in a different fashion. As a non-EVM chain, Aptos represents new territory for Sushi, the developers remarked. According to the announcement, “This expansion to Aptos not only unlocks a new level of deep liquidity across major blockchain networks but also significantly elevates the cross-chain trading experience.” Sushi’s team insists the decision will strengthen its leading cross-chain position by spreading to Aptos. Sushi was once a top dex but volume has dropped considerably over the past few years. Defillama.com statistics show that the dex platform has $347.23 million total value locked across various protocols. Sushi’s TVL has also lost a great deal of value since November 2021, after holding more than $8 billion. What do you think about Sushi expanding to the L1 blockchain Aptos? Share your thoughts and opinions about this subject in the comments section below. View the full article

Coinbase Cloud and blockchain infrastructure company Kiln are now allowing ethereum (ETH) users to stake any amount of ether natively. The new offering removes the previous 32 ETH minimum staking requirement. Staking for All: Coinbase Cloud and Kiln Break Down Minimum Barriers With the integration of Kiln’s onchain staking platform, Coinbase Cloud and its clients can enable partial ETH staking. This allows wallet providers like Coinbase Wallet to give users the ability to earn staking rewards without needing to meet minimums. The press announcement notes that over 99 percent of ether wallets hold less than the 32 ETH previously required to stake on the network. “We are thrilled to have worked with Coinbase Cloud and to welcome them as the first (non-Kiln) node operator leveraging the Kiln Onchain Staking Platform,” said Kiln CEO Laszlo Szabo. The Kiln CEO added: This integration with Coinbase Cloud is unique because it allows them to enable other wallets and services, including [decentralized exchanges], with the same limitless [ether] staking solution that will be offered by Coinbase Wallet. Partial ETH staking builds on Coinbase Cloud’s existing staking infrastructure. The company said its multi-cloud, multi-region setup ensures reliability alongside trusted security standards. Coinbase further discloses that staking operations occur transparently onchain through audited smart contracts. Coinbase posits that by removing staking minimums, more individual users can participate in securing the Ethereum network while earning rewards. The move comes as staked ETH ratios continue rising after Ethereum’s recent upgrade. Coinbase Cloud is currently offering this new open staking access starting with integration in Coinbase Wallet. What do you think about Coinbase and Kiln’s announcement? Share your thoughts and opinions about this subject in the comments section below. View the full article

India’s economic affairs secretary says the Indian government will decide on the country’s crypto position “in the coming months.” He explained that the government will consider all the recommendations presented at the G20 summit regarding crypto regulation “very carefully and decide our own policies and thereafter take further action.” Officials Discuss Indian Crypto Regulation India’s Economic Affairs Secretary Ajay Seth talked about how the Indian government will proceed with establishing a crypto framework for India in an interview with CNBC-TV18 on Sunday. India recently hosted the G20 leaders’ summit where crypto regulation was among the key topics of discussion. At the conclusion of the summit, the G20 leaders endorsed high-level recommendations proposed by the Financial Stability Board (FSB) on the regulation of crypto assets and stablecoins. The G20 also welcomed various proposals by the International Monetary Fund (IMF) and other standard-setting bodies. Seth told the news outlet Sunday that India plans to establish its own cryptocurrency regulations through comprehensive consultations at both the global level and with domestic stakeholders. The government official was quoted as saying: Based on the consensus which we have been able to achieve or rather build, we will be considering those recommendations very carefully and decide our own policies and thereafter take further action. The economic affairs secretary was also asked about the proposed ban on crypto by India’s central bank, the Reserve Bank of India (RBI). He replied: “You are asking a leading question … it is not to be seen in that binary.” He clarified: “It’s a framework for assessing the risk that has been put together, what will be the sound policies. So keeping that framework in mind now we will analyze our own position with reference to what globally the leaders have agreed that they will travel it together.” Seth further shared: So given those what should be our position will be decided in the coming months. Seth noted that the G20 has made significant progress regarding global cryptocurrency regulation. He highlighted reports by standard-setting bodies that provide a clear and comprehensive policy framework for assessing the risks posed by crypto assets. They include reports by the International Monetary Fund (IMF), the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the Bank of International Settlements (BIS). Seth also mentioned that the G20 acknowledges the risks linked to cryptocurrencies, especially concerning emerging economies. Referring to the declaration of the G20 leaders stating that they have asked their finance ministers and central bank governors to discuss taking forward the Roadmap at their meeting in October, the news outlet quoted unnamed official sources as saying: “Now the G20 leaders have endorsed it [global framework] and now ministers and governments will discuss it and take it forward.” The sources continued: We expect a lot of discussion to happen on how to implement it faster, swifter, and in a comprehensive manner. We have a good framework to decide our own way forward. The foundation is ready beyond how much we want to go it is for us to decide in the coming months and then take a call. “If you want to ban it (crypto), go ahead and ban it. But if the rest of the countries are not banning it, it will be extremely difficult for one country to ban it. Now that discussion, we have to take up and try to build a consensus on regulation. Then we gradually decide on our own system. The discussion will happen now in our system. It is not an easy one,” official sources added. In the IMF-FSB synthesis paper developed at the request of India’s G20 Presidency, the two organizations stated: “Blanket bans that make all crypto-asset activities … illegal can be costly and technically demanding to enforce. They also tend to increase the incentives for circumvention due to the inherent borderless nature of crypto-assets, resulting in potentially heightened financial integrity risks, and can also create inefficiencies.” Do you think India will come up with positive crypto regulation? Let us know in the comments section below. View the full article

Coinbase CEO Brian Armstrong has explained that crypto regulation in the U.S. will happen in one of a few ways. He noted that Coinbase is seeing more institutional investors coming in and signing up as they seek “a flight to quality.” The executive added: “There’s a possibility we’ll just get a different SEC chair in 2024 or beyond.” Brian Armstrong on Crypto Regulation The CEO of cryptocurrency exchange Coinbase (Nasdaq: COIN), Brian Armstrong, discussed various topics, including crypto regulation and stablecoins, in an interview with Yahoo Finance on Friday. Responding to a question about the timing and nature of crypto regulation in the U.S., the Coinbase boss described: It’ll happen in one of a few ways. So, one way is the courts. The courts can be the one to provide the clarity regardless of the outcome of the case. Creating case law is a way to get there if the regulators aren’t going to provide it. “Another way to do it is through Congress. Congress is very engaged in this now,” he stressed, noting that a few crypto bills are being considered in Congress. They include the FIT for the 21st Century Act and the Clarity for Payment Stablecoins Act. Moreover, Armstrong noted that the Commodity Futures Trading Commission (CFTC) “could step up and assert more authority.” He opined: I also think there’s a possibility we’ll just get a different SEC chair in 2024 or beyond. The current chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has been heavily criticized for taking an enforcement-centric approach to regulating the crypto industry. Despite Gensler’s repeated calls for crypto trading and lending platforms to come in and register with the regulator, Armstrong noted that Coinbase tried to comply, but the SEC has made it impossible to do so. Regarding trading volumes on Coinbase, Armstrong revealed: “It’s come down a bit.” However, he emphasized: “But we’re not like unused to these cycles. So we see when prices go up, obviously, more retail interest. What’s interesting in this down market is that we’ve actually seen there’s been a kind of a flight to quality.” He continued: So we are seeing more institutions come in and sign up, go through our onboarding process. And they’re not necessarily moving huge amounts of capital in yet, but they are onboarding. Concerning the factors institutional investors are awaiting before investing substantial funds in crypto, the Coinbase boss opined: “Maybe it’s that blockchain has become more scalable, maybe some regulatory clarity, maybe a court case happens. And I think we’ll start to see different amounts of capital actually coming in at that point.” What do you think about the statements by Coinbase CEO Brian Armstrong? Let us know in the comments section below. View the full article

In the first week of September, an outflow of $59 million worth of digital assets managed by Digital Asset Funds was recorded, the latest Coinshares data has shown. The latest outflow means the value of digital asset investment products under management has dropped by a total of $294 million or 0.9% in the past four weeks. The Coinshares data shows bitcoin (BTC) as the digital asset which had the highest net outflow ($69 million) in the first week of September. Bitcoin Short Inflows the Largest Since March During the first week of September, digital asset investment products saw a net outflow of $59 million in assets under management (AUM), the latest data from the alternative asset manager Coinshare analysis has shown. According to the asset manager’s blog, the latest net outflow figure brings the value of total outflows in the past four weeks to $294 million, or 0.9% of total AUM. As explained in the blog, inflows were also seen in short investment products and this may be an indication that the sentiment for digital assets remains poor. Concerns over the regulation of this asset class and the strengthening dollar are cited as some of the reasons why investors are less keen on investing in digital assets. In terms of flows by asset, the Coinshares data shows bitcoin (BTC) as the digital asset that had the highest net outflow ($69 million) in the first week of September. On the other hand, short bitcoin net inflows during the same period topped $15 million, the largest since March 2023. Meanwhile, Ethereum’s net outflow of $4.8 million during the same period saw its year-to-date outflows rise to US$108m representing 1.6% of the total AUM of $6.9 billion. Out of all the digital assets tracked by Coinshares, only XRP and other unidentified digital assets are shown to have recorded positive inflows of $0.7 million and $0.4 million respectively. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The FTX estate, currently overseeing the bankruptcy and restructuring of the once-active crypto exchange, reveals holdings of $1.16 billion in solana (SOL) and $560 million in bitcoin (BTC). 16% of Solana’s Market Cap Is Held by FTX In a recent Monday court filing, a stakeholder update showcases the premier digital assets held by the estate. As of August 31, 2023, these liquid tokens have a combined value of $3.4 billion. Additionally, the update showcases nearly $200 million in Bahamian real estate. Solana (SOL) emerges as the dominant asset in FTX’s portfolio. As of September 11, 2023, with SOL’s market cap standing at $7.24 billion, FTX’s slice is a significant 16%, equating to $1.16 billion. FTX’s diverse crypto portfolio also includes $560 million in BTC, $192 million in ETH, $137 million in APT, $120 million in USDT, $119 million in XRP, $49 million in BIT, $46 million in STG, $41 million in WBTC, and $37 million in WETH. Furthermore, FTX possesses over $529 million in securities housed in Debtor brokerage accounts, of which $417 million resides in the Grayscale Bitcoin Trust (GBTC). Apart from that, a modest $0.1 million is placed in Blackrock equity under FTX’s control. Delving into FTX’s venture collection, it boasts 438 investments, amassing $4.5 billion in funded assets. Notably, it includes a significant stake in Anthropic, a rival to Openai and the brains behind the generative AI chatbot, Claude. It’s worth mentioning that FTX also owns over 1,000 illiquid crypto assets, which may not realize their full potential value. What do you think about the FTX stakeholder update? Share your thoughts and opinions about this subject in the comments section below. View the full article

The first full week of September is in the bag, and there’s nary a shortage of crypto and economic news from across the globe. In this edition of the Bitcoin.com News Week in Review, RFK Jr. says China doesn’t want a war, but the government wants to “bury” the United States economically. In other news, a recent report reveals that 88,200 millionaires built their wealth through crypto, and JPMorgan expects the United States Securities and Exchange Commission (SEC) to approve multiple spot bitcoin exchange-traded funds (ETFs) at once. Robert Kennedy Jr: China Doesn’t Want War With US — They Want to ‘Bury’ Us Economically U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) has explained that China does not want a war with the U.S. However, he warned that China wants to “bury” the U.S. economically. “I’m not afraid of the United States competing with China head to head and countries around the world. I think that’s good for us. I think we win that competition,” the presidential hopeful stated. Read More Peter Schiff Says US Can’t Afford to Decouple From China — Warns of Dollar Collapse Economist Peter Schiff has warned that the U.S. cannot afford to decouple from China. “Our entire standard of living rests on the support of China,” he stressed, adding that “If we lose that support, it’s going to collapse.” He also predicted the collapse of the U.S. dollar as the USD loses its world’s reserve currency status. Read More Report Reveals 88,200 Millionaires Built Wealth Through Cryptocurrency A study by Henley & Partners, an investment migration consultancy in London, reveals an interesting insight: of the world’s 56.1 million millionaires, a notable 88,200 have earned their fortunes in cryptocurrency. Read More JPMorgan Expects SEC to Approve Multiple Spot Bitcoin ETFs at Once Global investment bank JPMorgan expects the U.S. Securities and Exchange Commission (SEC) to approve multiple spot bitcoin exchange-traded funds (ETFs) at once, instead of giving one company the advantage of being the first. The bank’s analyst explained that if the securities regulator wants to defend its denial of Grayscale’s bitcoin ETF conversion proposal, it would have to retroactively withdraw its previous approval of bitcoin futures ETFs. “Such a retroactive withdrawal would be very disruptive and embarrassing for the SEC,” he cautioned. Read More Do you know anyone who built their wealth through crypto? Be sure to weigh in on this week’s stories in the comments section below. View the full article

The X account of Ethereum founder Vitalik Buterin has apparently suffered a breach by scammers spreading phishing links. The attack, which manifested itself in the form of a post offering free digital collectibles, has allegedly resulted in the loss of over $690,000 for those who fell for the fraud. Scammers Lure Victims With Phishing Post From Vitalik Buterin’s X Profile The X (formerly Twitter) account of Vitalik Buterin, an influential voice in the crypto space, has been compromised by fraudsters seeking to drain victims’ wallets. The post pretended to “celebrate Proto-Danksharding coming to Ethereum” with a collection of “free” non-fungible tokens (NFTs). On Saturday, Vitalik’s father warned on X about the malicious tweet that has since been deleted. “Disregard this post, apparently Vitalik has been hacked,” Dmitry Buterin urged users on the social media, adding that the founder of Ethereum “is working on restoring access.” The post offered victims to follow a link, connect their wallets and claim the commemorative collectible. Among them was Ethereum developer Bok Khoo, X handle @Bokkypoobah, who tweeted he had “lost a few Punks” and called on followers: “Don’t interact!” Blockchain enthusiast and crypto detective ZachXBT (@zachxbt), who is dedicating efforts to uncovering rug pulls and exposing malicious players within the crypto space, revealed in a tweet that the total drained by the perpetrators of the attack amounts to $691,000. ZachXBT later updated followers about the stolen assets, among which Cryptopunk #3983 and Cryptopunk #1751 had the highest estimated value of 153.62 ETH (around $250,000 at the time of writing) and 58.18 ETH respectively. Chinese crypto journalist Colin Wu, known on X as Wu Blockchain, was also among those who issued a warning about the suspected hacking of Buterin’s account. In his post, he recalled that the X account of Uniswap founder and member of the Ethereum Foundation, Hayden Adams, was hit in a similar fashion earlier this year. In follow-up tweet, Wu suggested that the hacking of Vitalik’s Twitter may be linked to a hacker or a group of hackers dubbed “Pink Drainer.” Vitalik’s Twitter hacking may be linked to PinkDrainer. The scammer’s wallet address is: 0x4e…b3f3, and the total loss exceeds $691k worth of assets. The two largest funds were two CryptoPunks NFTs originally belonging to bokkypoobah.eth. https://t.co/RiGkyEOtL7 — Wu Blockchain (@WuBlockchain) September 10, 2023 Prominent members of the crypto community are not the only targeted by crypto scammers seeking to exploit social media profiles. In June, the Twitter account of Bitcoin critic and gold proponent Peter Schiff was found shilling a “groundbreaking cryptocurrency token” called $GOLD in a series of tweets posted by hackers that presented the coin as “a complete and utter gamechanger for gold-backed DeFi.” How do you think was Vitalik Buterin’s X account compromised? Share your thoughts in the comments section below. View the full article

Advisers working for FTX have analyzed if some payments made by the failed crypto exchange to sports stars and organizations can be returned. The money went to celebrity athletes, including basketball legend Shaquille O’Neal, and sports teams like the NBA’s Miami Heat and Formula 1’s Mercedes under sponsorship and advertising deals. FTX Advisers Review Payments to O’Neal, Naomi Osaka and Others Financial advisers hired by the new management of FTX have examined the possibility of recovering millions of U.S. dollars paid to professional athletes, sports clubs, and associations that promoted the digital asset exchange before it collapsed last fall. Court documents quoted by Bloomberg reveal that the experts have reviewed payments to former National Basketball Association (NBA) player Shaquille O’Neal (Shaq) and tennis star Naomi Osaka among others to determine if these can be reversed under rules that apply to transactions made just before a Chapter 11 filing. The Bahamas-headquartered FTX, which was one of the largest cryptocurrency exchanges, filed for bankruptcy protection in the U.S. in November 2022 amid liquidity issues. Its founder and former CEO, Sam Bankman-Fried (SBF), awaits the start of his trial on fraud and other charges in October. The payments to athletes and sports leagues were made to elevate the profile of the cryptocurrency exchange. According to the advisers, many of these were prepayments for advertising or sponsorship deals with organizations such as Major League Baseball (MLB) and NBA teams. While FTX noted that the advisers’ disclosures may not be complete, they show that around $4.9 million were transferred to MLB, another $12.2 million were linked to partnership agreements with Formula 1 racing team Mercedes-AMG Petronas, and $3.4 million were paid to the NBA’s Golden State Warriors. Some Payments Were Made Days Before FTX Filed for Bankruptcy In August 2022, an FTX affiliate company paid $2.5 million to a subsidiary of Authentic Brands Group affiliated with O’Neal, part of a $4.3 million in total payments for Shaq and his company. Another $2 million was reportedly paid to Osaka in early November, days before FTX filed for bankruptcy, out of a total of around $3.2 million in payments for the tennis star under partnership and endorsement deals. Other athletes and sports teams mentioned in the court documents include Jacksonville Jaguars quarterback Trevor Lawrence, retired Boston Red Sox slugger David Ortiz as well as NBA’s Washington Wizards and the Miami Heat. Some of these payments were made about a month before FTX’s Chapter 11 filing. The report notes that the disclosures come after the new management of FTX sued a venture capital firm that allegedly connected Bankman-Fried to NBA stars and other celebrities. O’Neal, Osaka, and the Warriors among other athletes and teams have denied in lawsuits responsibility for losses suffered by investors. In July, FTX also sued Bankman-Fried and other former FTX executives in an attempt to regain over $1 billion. SBF has been accused of diverting billions of dollars in FTX customers’ funds to buy expensive property, make political donations, and finance his other businesses such as the hedge fund Alameda Research. Do you think FTX will manage to recover some of the payments made to athletes and sports organizations? Tell us in the comments section below. View the full article

According to Mohammed AlKaff AlHashmi, the co-founder of “Islamic Coin,” Muslim scholars will increasingly view cryptocurrencies as being “Shariah-compliant” if they function as a store of value or are used as a medium of exchange. Alhashmi added that Islam’s “robust” ethical framework already “accommodates modern technological advancements such as the blockchain and cryptocurrencies.” This, he said, may help explain the gradual acceptance of unbacked digital assets by some in the Islamic community. Crypto Acceptance in the Muslim World Despite this changed perception towards cryptocurrencies, many Islamic-themed digital tokens that were launched in the past have seemingly failed to emulate the success of pioneering coins like bitcoin (BTC) or ethereum (ETH). In contrast, Alhashmi’s islamic coin appears to have garnered substantial financial support as evidenced by the $200 million in funding recently secured from ABO Digital. When asked why islamic coin has seemingly done better, AlHashmi pointed to how the project’s multifaceted approach broadens its “reach and enhances our value proposition.” The co-founder also argued that the coin’s apparent success on the funding front can be seen as a testament to the Islamic community’s approval of this approach. However, critics of AlHashmi’s crypto project assert that the coin is not Sharia-compliant as claimed. They also accuse AlHashmi and his team of attempting to lure devout Muslims with such false claims. In his response, AlHashmi told Bitcoin.com News that such allegations “overlook the fundamental architecture and ethos of our project.” The co-founder also went on to identify aspects of islamic coin which he asserts back the Sharia-compliant claims. Below are AlHashmi’s written answers to questions sent to him via Linkedin. Bitcoin.com News (BCN): The islamic coin project appears to have had quite a successful year so far. From securing $200 million from Alpha Blue Ocean’s ABO Digital to working with Republic Crypto on a token sale, it would seem that you have fared better where others have struggled to stay afloat. Can you explain to our readers why the Islamic Coin project has been able to garner the support it has today? Mohammed AlKaff AlHashmi (MKH): The immense support behind islamic coin can be attributed to the multifaceted approach that sets it apart in the crowded cryptocurrency landscape. First and foremost, our project is not limited to catering to crypto-native individuals. While many projects focus solely on this demographic, islamic coin aims to bridge the gap between crypto-native and non-crypto audiences. This broadens our reach and enhances our value proposition. Also, we’re not just creating a crypto product; we’re building a comprehensive ecosystem that aligns with Shariah principles. This resonates with a global Muslim population of approximately 1.9 billion people. Our project is designed to be more than just a financial instrument. It aims to integrate seamlessly into various aspects of daily life, from social media interactions to healthcare services. Investors recognize the enormous potential of a project that not only adheres to ethical guidelines but also serves a large, untapped market. The support we’ve garnered is a testament to our innovative approach and the significant impact we’re poised to make in the digital asset space. BCN: A few years ago, influential Islamic institutions and governments warned Muslims against buying or selling virtual money. Today, there are several so-called Islamic cryptos listed on crypto exchanges and to some, this can be seen as an endorsement of some kind. Do you agree with this assessment? MKH: The evolving stance on cryptocurrencies within the Islamic community is a complex issue. People tend to approach every new technology with caution, and that’s exactly what happened. As time goes on, and understanding increases, so does the positive stance on those technologies. That leads to increased awareness, which leads to increased adoption. In Islamic financial jurisprudence, traditional currency is expected to be backed by tangible assets like gold or silver. However, many cryptocurrencies function more as digital finance assets rather than traditional currencies. These assets serve as a store of value and a medium for transactions, and their value fluctuates based on community adoption. When viewed through this lens, scholars are increasingly recognizing that digital assets can be Shariah-compliant, provided they are not used for activities that contravene Islamic principles, such as usury or the trade of prohibited substances. Islam’s ethical framework is robust enough to accommodate modern technological advancements, including blockchain and cryptocurrencies. As awareness grows, resistance often gives way to acceptance, not just within the Islamic landscape but also in broader societal contexts. It’s also worth noting that today, more Islamic scholars and Islamic financial institutions are delving deeper into blockchain technology and its capabilities — smart contracts, transparency, and community governance — and they are finding that it aligns well with the principles of Islamic finance. This has led to a more favourable view of digital assets within the Islamic community, paving the way for greater acceptance and adoption. So, the shift in perception is not so much an endorsement as it is an evolution of understanding, driven by increased awareness, technological advancements, and the realization that digital assets can coexist with Islamic principles. BCN: What is your perception of the regulatory environment in the Middle East and North Africa (MENA) region versus Europe, where you are headquartered? MKH: The regulatory environment in MENA and Europe are distinct, each shaped by its own set of socio-economic, cultural, and political aspects. Many view Europe as the standard in financial innovation, but it’s important to recognize that they also deal with challenges. The 2008 financial crisis reminds us that a system built on interest-based loans can also have economic downturns. High interest rates and overpriced assets created a liquidity gap, which can trigger a crisis with global ramifications. In contrast, the Islamic financial system, prevalent in the MENA region, has demonstrated resilience through community-centric values. In 2015, Islamic financial entities in Jordan recorded a -0.9% inflation rate while the world grappled with inflation rates exceeding 7.1%. This underscores the inherent stability of an interest-free, balanced financial system that prioritizes community well-being over profit. However, while the Islamic financial system has proven its efficacy, it has not been adequately served by modern technology. This is a gap we’re trying to bridge with Islamic coin, and we want to inspire more Shariah-oriented fintech ventures to emerge across the market. BCN: Some claim that islamic coin’s compliance with Islamic law cannot be verified. What makes you say your project is Shariah-compliant and why is this important for the digital currency? MKH: Islamic coin’s legitimacy as a Sharia-compliant cryptocurrency is proven by its Fatwa, a significant Islamic ruling given to the project by renowned Islamic scholars and professionals in Islamic banking. This Fatwa is not just a stamp of approval; it’s a rigorous validation of our coin’s adherence to the principles of Shariah. Beyond this pivotal endorsement, islamic coin’s design and operational framework are deeply rooted in Islamic financial principles. It operates on a profit-and-loss sharing system, aligning with the prohibition of interest-based lending in Islamic finance. Every transaction on the HAQQ blockchain is transparently recorded on a decentralized ledger, ensuring further compliance. Our commitment to these principles ensures that the token provides a genuinely Sharia-compliant avenue for the global Muslim community to engage with digital assets, bridging modern finance with ethical financial practice. BCN: Critics also claim that there is nothing Islamic about your coin and that you are only using this to win over devout Muslims who would otherwise not invest or buy the coins. What would be your response to this? MKH: Such claims are not only false, but they also overlook the fundamental architecture and ethos of our project. Unlike traditional centralized systems, where transparency might be a concern, blockchain technology allows for unparalleled scrutiny. Every aspect of islamic coin, from its smart contracts to its financial transactions, is open to public verification. This transparency extends to our Sharia compliance as well. Our scholars and issued Fatwa can be easily verified on our website. Moreover, we’ve gone a step further by implementing the Shariah Oracle, a mechanism designed to verify the decentralized applications (dapps) created on the HAQQ chain. This ensures that applications align with Islamic principles, providing an additional layer of trust and compliance. It’s important to remember that islamic coin is not just an exclusive crypto product; it’s an inclusive financial instrument built on a foundation of Islamic ethics. From profit and loss sharing to transparency and community contributions, every feature is designed to be in harmony with Islamic principles. A portion of the coin’s proceeds is allocated to Islamic charities and projects, adhering to the principle of zakat, one of the core pillars of Islam. 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In the digital currency realm, smart contracts have enhanced the financial industry through tokenization, decentralized finance (defi) and other agreements in the form of self-executing code. But how exactly do they work? What benefits do they offer? Here’s a concise overview of smart contracts and their profound effect on trust and collaboration in our interconnected society. Smart Contract Origins If you keep up with cryptocurrency news you’ve likely heard of “smart contracts.” Smart contracts, in their current form, are self-executing agreements housed on a blockchain. Fundamentally, the “smart” in smart contracts stems from automation, while the “contract” denotes a binding agreement or function that runs automatically. The idea of smart contracts was first posited by American computer scientist Nick Szabo. Ethereum’s Role & Beyond In the early 1990s, Szabo defined smart contracts as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises.” Modern smart contracts, however, didn’t emerge overnight. But with the advent of Ethereum, the blockchain’s Turing completeness and coding capabilities quickly made it the preferred platform for smart contract protocols. Ethereum’s Turing completeness means that, in theory, any computable function can be run on Ethereum, given sufficient processing power and time. Programming With Solidity This capability offers vast potential for the kinds of applications and contracts that can be developed, extending well beyond mere financial transactions. Typically, these contracts are coded in Solidity, a Turing complete language tailored for smart contract development. Solidity code is then translated into bytecode, which the Ethereum Virtual Machine (EVM) executes. Today, smart contracts facilitate a multitude of applications, including the trading of money, goods, real estate, tokenized bonds, securities and more. The DAO Incident and Risks Among the first smart contracts on Ethereum were a crowdfunding contract, a blockchain domain registration system, and digital assets and tokens. For instance, The DAO, a decentralized autonomous organization for venture capital, debuted in 2016. Despite being the first DAO, it faltered due to a flaw in its smart contract. So, while smart contracts offer numerous benefits, they come with inherent risks such as software bugs, tainted oracle data, and the potential loss or theft of contract-controlling credentials. Varied Use Cases Comprehensive audits, formal verification, simplifying contract design, bug bounties and following best development practices can reduce these risks. Nevertheless, challenges with smart contracts persist. Yet, they have ushered in trustless peer-to-peer trading via decentralized exchanges, and streamlined lending and borrowing processes to facilitate collateral-backed loans and interest accrual. They’ve enabled the birth of digital tokens that represent tangible assets like real estate, non-fungible tokens (NFTs), commodities, stocks, and more. Additionally, they’ve given rise to decentralized autonomous organizations (DAOs) and other automated services, including file storage, prediction markets and shared computing power. It’s safe to say that smart contracts have and still are revolutionizing the digital currency landscape, offering automation, security, and diverse applications. As they continue to evolve, their influence on trust and collaboration in our digital society is undeniable and transformative. What do you think about smart contracts? Share your thoughts and opinions about this subject in the comments section below. View the full article