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📣 TUSD Depeg Due To TrueUSD Reserves Audited By FTX.US Collapsed
According to CoinDesk, the certificate of reserve of the troubled stablecoin TrueUSD was audited by The Network Firm, formerly Armanino, and worked with Sam Bankman-Fried (SBF) for FTX.US to perform the audit. Armanino, an accounting firm of FTX.US, has ended its crypto audit business and abandoned its clients. The reason is that other clients in the industry consider Armanino’s reputational risk to question their audit results and put pressure on it.
After the FTX incident broke out, American investors sued Prager Metis and Armanino, the auditors of FTX, accusing them of conspiring to commit extortion. Executives at Archblock, which powers the TUSD stablecoin, previously confirmed the Armanio team in emails to CoinDesk and said they would continue using The Network Firm. Earlier today, the community stirred with the rate of TUSD in Curve’s 4pool surpassing the 70% mark, and the stablecoin is showing a slight depeg signal. This case is reminiscent of Curve’s 3pool USDT rate crossing the 50% mark on June 15, not long ago, resulting in USDT being depeg for a short period of time.
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💰 Judge’s FTX Client Confidentiality Order Receives Strong Media Outcry
Bloomberg, Dow Jones, New York Times, and Financial Times have appealed Judge John Dorsey’s ruling on June 9, allowing FTX to “permanently remove” individual customers from all records of the confidential name and to protect the legal rights of FTX. A legal representative for the media organization argued that FTX is not entitled to a “new and broad exception” to bankruptcy disclosure requirements simply because its clients used cryptocurrencies.
Judge Dorsey previously ruled that he wanted to ensure customers” are protected from becoming a victim of any fraud,” which is consistent with the exception of U.S. bankruptcy law to address the potential risk of identity theft or other harm. Reportedly, bankrupt companies are generally required to disclose the names of their creditors and the amount of their debts, including those owed to individual customers. Still, there are exceptions in U.S. bankruptcy law. Disclosure of information may create the risk of identity theft or other damages. This is not the first time the media has protested the sealing of the names of FTX customers, having previously filed an objection on May 3.
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💰 FTX Has Sued K5 Global, Seeking To Recover Over $700 Million
FTX filed a case in the Delaware Bankruptcy Court in the United States and sued various investment entities associated with it before bankruptcy. The case, which was filed on June 22, includes 16 accusations and demands over $700 million in damages from the defendants. In the case, the defendants include incubator and investment companies K5 Global, Mount Olympus Capital, and SGN Albany Capital, as well as associated organizations and K5 Global co-owners Michael Kives and Bryan Baum.
According to the filing, former CEO Sam Bankman-Fried attended a networking event given by Kives in 2022. Alameda Research, an FTX-affiliated crypto trading company, sent $700 million to Kives, Baum, and K5 Global, although the transactions were disguised as originating from shell firms SGN Albany and Mount Olympus Capital. This can be observed when Bankman-Fried relied on K5’s fame and company ties to get rescue finance in the days leading up to FTX’s bankruptcy in November 2022. The filing also demands the recovery of assets moved from Alameda Research to SGN Albany Capital, as well as funds transferred to Mount Olympus Capital from Kives, Baum, and SGN Albany Capital. These trades were regarded as having insufficient value and being unnecessary.
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📣 Terraform’s Do Kwon Claims He Didn’t Know His Passport Was Fake
Do Kwon, who was recently arrested in Montenegro after evading authorities for months, claimed that he had no idea the Costa Rican passport he was traveling with was fake. Ever since the catastrophic collapse of the Terra ecosystem a year ago, Do Kwon, the person behind the protocol, has been blamed by many for his role. Although he claimed he was not trying to escape from the authorities, his location was unknown until recently when he was apprehended in the European country – Montenegro – while carrying a fake passport.
During a hearing at the Podorica District Court in Montenegro’s capital on June 16, Kwon explained that he received the Costa Rican passport he was caught with through an agency in Singapore “recommended by a friend.” He also tried getting a Granada passport but was rejected. However, when asked about the name of that agency, Kwon said he didn’t remember it, and he only knew it was Chinese. According to the report, Kwon also had a Belgian passport when he was arrested. Prosecutor Harris Chabotich said the two passports had different names and different dates of birth, which made it clear that they “were created with bad intentions. Please punish it appropriately.”. Kwon also urged the judge to punish just him for being caught with a fake passport.
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🇭🇰 Hong Kong Is Poised To Open The Floodgates For Chinese Crypto Investment
Hong Kong will serve as a conduit for Chinese capital to own crypto financial assets. The process starts with a wealthy Chinese investor buying a Bitcoin ETF listed on the Hong Kong Stock Exchange, and ends with physical Bitcoin held in a local custodian. According to Hayes, the process starts with a wealthy Chinese investor exchanging CNY for HKD and purchasing a Bitcoin ETF listed on the Hong Kong Stock Exchange.
Hayes believes that this process solves many problems for China. Wealthy Chinese have an outlet to invest in a hard asset, which they perceive as a way to escape the ongoing weakening of the CNY. Additionally, the endpoint of this outlet is an institution that must follow whatever rules Hong Kong regulators put in place, which means the Chinese government controls the physical Bitcoin. This is no different than how Bitcoin held in any US-listed ETF or trust is ultimately controlled by the US government. The ETF manager then purchases physical Bitcoin from the global market, which is then held with a local Hong Kong licensed custodian.
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🪙 MakerDAO Achieves Record-Breaking 147% Surge in Annualized Income for 2023
According to data from MakerBurn, the decentralized autonomous organization (DAO) MakerDAO has achieved a significant milestone, with its current annualized income reaching a record high of $95 million. This marks a substantial increase of 147% since the beginning of the year, making it the highest level recorded since mid-February 2022. The surge in income can be attributed to DAO’s strategic use of PSM USDC to purchase U.S. Treasury bonds, thereby generating interest income.
MakerDAO, a prominent player in the DeFi ecosystem, is renowned for its stablecoin DAI, which is backed by a diversified collateral portfolio. The DAO operates on the Ethereum blockchain and provides users with the ability to mint and trade DAI in a decentralized manner. As an integral part of the DAO ecosystem, the PSM (Peg Stability Module) USDC facilitates the stabilization of DAI’s value against the U.S. dollar. The recent boost in DAO’s income can be attributed to its decision to utilize PSM USDC to purchase U.S. Treasury bonds. This strategic move has not only increased the DAO’s holdings of U.S. Treasury bonds but has also allowed DAO to generate interest income from these bonds.
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💰 MATIC Future Looks Promising With Exciting Tech Announcements Despite The Delisting
Polygon Labs remains confident in their past actions and focused on building in the future despite MATIC’s recent delisting. They are grateful for global support and have exciting tech announcements coming up soon. Polygon Labs, the team behind the Polygon network, has been making headlines in the crypto industry due to their recent tweets about their focus on network security and how they ensured that MATIC, a necessary part of their technology, was available to a wide group of people while not targeting the US market.
The non-US market is the largest in the world, and they are grateful for all the efforts being done globally to support this technology. Although MATIC being listed as a security by the US Securities and Exchange Commission (SEC) and delisted by Robinhood, Polygon Labs remains confident in their past actions and focused on building in the future. They have also teased exciting tech announcements coming up this week, which has further fueled the curiosity of crypto enthusiasts. MATIC, have been hit hard by the recent lawsuits filed by the SEC against high-profile crypto exchanges. MATIC has experienced a drop of more than 30% in its trading price, which is a significant blow to its investors and supporters.
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🇪🇺 CZ Reminds EU Journal Publishes MiCA Regulations for Crypto Industry
Changpeng Zhao (CZ), the CEO of Binance, highlighted important dates for the crypto industry about MiCA. The Markets in Crypto-Assets (MiCA) regulation has now been published in the official journal of the European Union (EU). This publication signifies a significant milestone in the regulatory landscape for cryptocurrencies. The publication of MiCA in the EU journal brings clarity and sets firm timelines for crypto businesses to implement and comply with the regulatory requirements.
According to the published information, the implementation of MiCA will be phased. The rules for stablecoins are set to apply from June 30, 2024. This means that companies issuing or dealing with stablecoins must adhere to the specified regulations by this date. These regulations aim to ensure stability, transparency, and consumer protection in the growing stablecoin market. Rules for crypto exchanges will come into effect from December 30, 2024. Exchanges operating in the EU will need to meet the requirements outlined in MiCA to continue their operations and provide services to European customers.
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🏦 Coinbase Claims Not Compromising With SEC, Not Deleting Any Warning Tokens
Coinbase has no plans to delist crypto tokens accused of being securities by the SEC, CEO Brian Armstrong shared in an interview on Wednesday. Executive director Brian Armstrong has confirmed that their exchange will not delist tokens warned by the SEC, business operations will continue as normal, and the exchange’s staking service will not be suspended stop working. On Tuesday, the Securities and Exchange Commission sued Coinbase, alleging that at least 13 tokens listed on its platform are securities.
Armstrong affirmed that Coinbase will not face the risk of “bank run” like other platforms. All customer deposits are guaranteed. “As a public company, we have auditors verifying all of that,” the CEO said. The SEC has accused Coinbase of operating its crypto asset trading platform as an unregistered and unregistered exchange offering and selling its staking program. Earlier, Brian Armstrong also said that the last time he met with the Chairman of the US Securities and Exchange Commission, Gary Gensler, was in a “cold” virtual meeting that failed and did not come to any conclusion about compliance. America’s largest cryptocurrency exchange is putting itself ahead of a protracted regulatory.
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🟠 Binance Executive Controlled Bank Accounts Belonging to U.S. Wing in 2019-20: Reuters
Binance executive was the main controller of five bank accounts belonging to the crypto exchange's supposedly independent U.S. unit, Reuters reported on Monday, citing bank records. Guangying Chen was authorized by the now bankrupt crypto lender Silvergate Bank to operate the accounts between 2019 and 2020, Reuters said. Binance.US had to ask Chen and her team to process payments, including the firm's payroll, according to the report, which also cited company messages.
Binance.US has always claimed to be independent from Binance. Christian Hertenstein, a spokesperson for Binance.US, told Reuters that since Brian Schroder became CEO of the company in late 2021, "no one other than Binance.US officials have had control or access" to its accounts. Zhao acts as Binance.US's chair and is its majority shareholder. Binance.US had claimed to be independent from Binance at the time. The firm has been exploring ways to reduce his stake in order to enhance the exchange's reputation among U.S regulatory authorities. Neither Binance nor Binance.US responded to CoinDesk's request for further comment.
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🇺🇸 Powers Of SEC And CFTC With Crypto Will Be Clearly Outlined In New Draft Law
US Republican representatives are seeking to divide the powers of the SEC and CFTC over the cryptocurrency industry in a new draft of the law. As reported by Blockwork, US Republican Representative Patrick McHenry and Pennsylvania Republican Representative Glenn Thompson introduced draft legislation on Friday, focusing on token classification, CFTC, and SEC jurisdictions, and available encryption for transactions. However, if the bill is passed, it is possible to expect the issuance of a specific rule on the cryptocurrency industry soon.
The draft proposes a more precise division of crypto regulatory powers between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), providing certainty about regulation for digital asset companies. The bill establishes a process for token issuers to claim their currency to be treated as a commodity as long as the project is fully decentralized. The CFTC will be tasked with overseeing digital goods, but the SEC could attempt to classify tokens as securities if the agency can successfully make that case. The draft also allows for the trading of digital goods on the secondary market and allows digital asset trading platforms to register as alternative trading systems.
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📣 First Digital To Launch New Stablecoin Before Hong Kong’s Openness Policy
First Digital, Hong Kong’s foremost certified custodian and registered trust organization, has announced the launch of a new stablecoin, First Digital USD (FDUSD). FDUSD provides users with a trustworthy digital currency that aims to reduce volatility in the cryptocurrency market while also improving the efficiency of financial operations by cutting transaction fees and providing quicker, more secure transactions. According to First Digital, the stablecoin is programmable and capable of allowing the execution of financial transactions, escrow services.
The stablecoin, issued by FD121 Ltd (under the brand name First Digital Laboratories), is meant to be backed 1:1 by one US dollar or asset of similar fair value held in the accounts of authorized financial institutions in Asia. First Digital Labs will collaborate closely with local and international regulatory authorities to ensure full compliance with current and future applicable laws and regulations, and First Digital Labs will contribute to their evolution, including the shaping of any regulatory regimes that FDUSD and/or First Digital may fall under in the near future. The FDUSD will be issued by First Digital Trust and will be backed by “high-quality reserves”.
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📣 Ordinals Market And Bitcoin Miladys Launched New Standard BRC-721E
According to the official website, the Bitcoin NFT market Ordinals Market and Bitcoin Miladys jointly released the BRC-721E standard, allowing immutable, verifiable ERC-721 NFTs to be migrated to Ordinals without prior embedding of the entire NFT series. BRC-721 tokens are named after the Ethereum smart contract token standard for NFTs, ERC-721 tokens. Having a common file and metadata to source from will make it easy to build oracles that scan the Bitcoin blockchain.
BRC-721E encodes data directly into a burn transaction, which specifies a Bitcoin address to receive the inscription. Previously, Teleburn required to know the inscription ID before destroying the ETH NFT, but BRC-721E allows destruction before burning, which also means that the destruction transaction also acts as an inscription request on the chain, and users can also use this to receive airdrops. Ordinal Inscriptions, like NFTs, are digital assets inscribed on a satoshi, Bitcoin’s lowest denomination (BTC). Inscribing on satoshis, which are named after Bitcoin’s pseudonymous founder, Satoshi Nakamoto, is now feasible owing to the Taproot update, which was published on the Bitcoin network on November 14, 2021.
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📣 Stargate DAO voting to reduce exposure to Multichain-issued stablecoin
The Stargate DAO is voting on a proposal to lower its exposure to a stablecoin created by the Multichain protocol — in light of its ongoing situation — and to isolate pools containing the asset from its other pools. The Stargate DAO is the governance system for the Stargate bridge, a means of transferring assets from one blockchain to another using the LayerZero protocol. The bridge operates through pools of funds stored on each chain.
The Stargate bridge connects the Fantom blockchain to seven other blockchains. On each of these chains are pools of funds containing the anyUSDC stablecoin, which was issued by Multichain and is a commonly used stablecoin on Fantom. The proposal seeks to disconnect the Fantom pools from Stargate's other pools and lower exposure to the stablecoin. On Twitter, unverified rumors have surfaced that the team was arrested in China. In a group Telegram message with the Multichain team, Multichain's VP of Strategic Partnerships, who goes by Mog, replied that he didn't know whether the leadership team had been detained by Chinese authorities.
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📣 Scam Project SeaSwap Party Withdrew 30,000 SUI From The Contract
SeaSwap, described as a decentralized exchange (DEX) built on the Sui blockchain, allowing users to trade various cryptocurrencies in a fast and secure manner, has become the latest name to cause users to lose confidence in DeFi projects as it became a vanity project after only a short time of launch. According to CertiK Alert monitoring, the SeaSwap project is an exit scam. It has canceled its Twitter account and suspended its social channels. The project administrator urgently withdrew SUI from the token sale contract, totaling 32,787 SUI ($32,000).
Coincu has also investigated the information about SeaSwap, but currently, there is very little contact about this DEX, and the project’s social pages are currently inaccessible. SeaSwap promises to be a DEX based on the Sui blockchain, allowing users to exchange numerous cryptocurrencies quickly and securely. SeaSwap, as an automated market maker, employs a central limit order book to offer liquidity and enable users to buy and sell tokens at market rates in real-time. According to the project whitepaper, it provides additional chances for generating income via liquidity providing and staking, in addition to trading. But in reality, this is just a scam project.
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📣 Crypto Traders Eye $6.8B Bitcoin and Ether Options Expiry
The bullish buzz returned to the crypto market last week as bitcoin (BTC), the leading cryptocurrency by market value, jumped more than 15% in its best performance since March. Now a significant event looms on the horizon. On Friday at 08:00 UTC some 150,633 bitcoin options contracts worth $4.57 billion and 1.23 million ether contracts valued at $2.3 billion will expire on Panama-based Deribit exchange, which controls over 85% of the global options activity.
In bitcoin's case, investors have recently bought call options with strike prices at and above $30,000. As a result, that level has the highest open interest – or the number of active contracts – and market makers/dealers, who create order book liquidity by taking the other side of the investors' trades, hold a significant amount of "negative (short) gamma" exposure. Options are derivative contracts that give the purchaser the right to buy or sell an asset at a predetermined price at a later date. A call gives the right to buy, a bullish position, and the put confers the right to sell, a bearish position. Being short (negative) gamma means holding a short or sell position in the call or put options.
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📣 Wintermute Trading Accused Of Helping Celsius CEO Scam Investors: Report
Wintermute Trading Ltd., one of the biggest cryptocurrency market makers, was accused in a proposed class-action lawsuit of helping former Celsius Network Ltd. Chief Executive Officer Alex Mashinsky dupe investors in his now-bankrupt crypto lending firm. Wintermute Trading Ltd, one of the largest cryptocurrency market makers, has been accused of aiding in a fraudulent scheme alongside former Celsius Network Ltd. CEO Alex Mashinsky. The accusations stem from a proposed class-action lawsuit.
The lawsuit alleges that starting in March 2021, Wintermute engaged in “wash trading” and other improper activities, artificially inflating the value of Celsius’s native CEL token and loan products. The investors also claim that Wintermute played a critical role in Mashinsky’s failed attempt to prop up CEL in May 2022 after the Terra and Luna tokens collapsed. Celsius froze all accounts on June 13, 2022, and filed for bankruptcy the following month amid a market crash that caused significant losses to investors. The lawsuit alleges that Wintermute’s “wash trading” activities corrupted the CEL token prices and reported trading volumes, which deceived investors.
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🟠 Binance Labs Invests In 5 Promising Projects In Incubation Program
Binance Labs, the venture capital and incubation arm of Binance, recently announced investments in the top 5 performing projects from Season 5 of its Incubation Program. Previously more than 900 project applications had been received but only a select few, less than 2% of the total, were selected to participate in the program. Throughout the season, participants benefit from a tailored curriculum that meets their specific needs as founders, complemented by exclusive resources from the ecosystem and engaging side conversations with industry leaders.
Here are 5 potential projects that Binance Labs decided to invest in covering many areas of Web3, Defi, Infrastructure, tools and middleware. Bracket Labs, a project to build leveraged on-chain products with simple interfaces and adaptive pricing, innovates to dramatically improve usability. DappOS, a project focused on building an operating protocol. Kryptoskatt, a Web3 financial simplification project for users around the globe. Mind Network, a full cryptographic network built on the patented Fully Adaptive Uniform Encryption (FHE) framework. zkPass, a privacy-preserving, composable decentralized identity verification solution for Web3 based on multi-party computation (MPC) and zero-knowledge proof (ZKP) technology.
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🪙 Tether Refutes Allegations Backed By Chinese Companies In 2021
Documents obtained as part of the New York Attorney General’s investigation against Tether corroborated reports that it had assets issued by Chinese entities to back up its USDT reserves. Long-held concerns that Tether’s USDT stablecoin was backed by Chinese securities were proven in papers discovered as part of the attorney general’s probe against Tether in 2021. According to a Bloomberg investigation in October 2021, Tether had billions in short-term loans to Chinese enterprises.
The stablecoin issuer apparently canceled up to 29 accounts held by prominent crypto players two years ago, according to facts in papers disclosed by the New York Attorney General (NYAG). The majority of the people on the list seem to have had their accounts canceled for various reasons. Tether answered that it does not wish to comment on any specific connection, however, everyone did pass the stringent compliance checks at onboarding and continuous monitoring required by Tether’s compliance regulations. the controversial crypto lending service BlockFi, CMS Holdings, and the now-defunct crypto hedge fund Galois Capital.
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🪙 Tether CTO’s $1B USDT Mint Sparks Controversy Among Ethereum Users
On June 12, Tether announced the minting of a new batch of $1 billion worth of Tether stablecoin on the Ethereum blockchain. This is the latest billion-dollar mint for the stablecoin issuer, coming only two months after its last mint on April 21. According to Tether’s Chief Technology Officer Paolo Ardoino, the latest USDT mint is part of what the company calls an “inventory replenish” on the Ethereum network. However, this latest issuance is not expected to impact the overall market cap of USDT since it is an “authorized but not issued transaction.”
Tether periodically works with different crypto platforms to help them rebalance the USDT liquidity across various blockchains. For instance, if a crypto exchange has a surplus of USDT liquidity on the Ethereum blockchain and a deficit on the Tron blockchain, where it needs to process withdrawals, the exchange will chain-swap its Ethereum-based USDT to the Tron blockchain. This helps to ensure that the USDT liquidity is balanced across different platforms. Since the beginning of 2023, Tether has minted over $16 billion of new USDT, bringing its current market capitalization to more than $83 billion. As other stablecoin issuers struggled due to regulatory and banking crises in the United States.
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📣 Robinhood Opens A Liquidation Of About $583M ADA, MATIC And SOL
Robinhood users holding ADA, MATIC, and SOL worth about 583 million USD, forced to sell before June 27, could be one of the main reasons for the severe market decline in the next 3 weeks. On June 8, cryptocurrency exchange Robinhood decided to discontinue support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023 at 6:59 p.m. ET. The remaining coins supported by Robinhood include: BTC, ETH, LTC, ETC, BSV, BCH, DOGE, SHIB, COMP, LINK, UNI, AVAX, XLM, USDC, XTZ, and AAVE.
The most likely reason for the delisting is because the three cryptocurrencies above appear on the list of cryptocurrencies accused by the SEC as securities in the lawsuit against Binance and Coinbase. On the list of tokens denounced by the SEC as securities, there are Solana (SOL), Cardano (ADA), and Polygon (MATIC) that are allowed to be traded on the platform by Robinhood. However, a strict move from the SEC could cause Robinhood to delist these 3 tokens before getting into legal trouble. It is also because of this that these 3 announcements are deep in the price drops. According to on-chain data, Robinhood’s recent delisting decision will sink the price of these 3 tokens for at least the next 3 weeks.
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🏦 Coinbase Claims Not Compromising With SEC, Not Deleting Any Warning Tokens
Coinbase has no plans to delist crypto tokens accused of being securities by the SEC, CEO Brian Armstrong shared in an interview on Wednesday. Executive director Brian Armstrong has confirmed that their exchange will not delist tokens warned by the SEC, business operations will continue as normal, and the exchange’s staking service will not be suspended stop working. On Tuesday, the Securities and Exchange Commission sued Coinbase, alleging that at least 13 tokens listed on its platform are securities.
Armstrong affirmed that Coinbase will not face the risk of “bank run” like other platforms. All customer deposits are guaranteed. “As a public company, we have auditors verifying all of that,” the CEO said. The SEC has accused Coinbase of operating its crypto asset trading platform as an unregistered and unregistered exchange offering and selling its staking program. Earlier, Brian Armstrong also said that the last time he met with the Chairman of the US Securities and Exchange Commission, Gary Gensler, was in a “cold” virtual meeting that failed and did not come to any conclusion about compliance. America’s largest cryptocurrency exchange is putting itself ahead of a protracted regulatory.
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🟠 Binance Receives Strong Support Amid SEC Allegations
FBG Capital and machibigbrother.eth show support for Binance amidst SEC lawsuit. FBG Capital deposited all 44 million USDT while NFT giant whale machibigbrother.eth stated that it had transferred all BAYC and MAYC to the exchange. FBG Capital and machibigbrother.eth expressed their support for Binance after the Securities and Exchange Commission (SEC) filed a lawsuit against the exchange. According to Wu Blockchain, FBG Capital deposited all 44 million USDT in Binance to show support.
The SEC has accused Binance of mishandling customer funds and lying to regulators and investors about its operations. In a 136-page complaint filed in US federal court in Washington, the SEC alleges that Binance flouted basic know-your-customer rules and allowed Americans to open accounts and trade improperly. The regulator also claims that the exchange and its US affiliate weren’t actually independent from each other and improperly functioned as an exchange, broker-dealer, and clearing agency without registering with the agency. The exchange had expressed disappointment with the SEC’s lawsuit, stating that it had been engaged in good-faith negotiations to settle the matter.
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🚨 Scam ChatGPT-Style Web3 Firm’s Press Release Was Auto-Scraped Into Bloomberg
OpenAI’s sensational chatbot service ChatGPT has taken the world by storm. This explosion of interest has translated into a proliferation of new apps that trick users with savvy ads before rug-pulling them. In the latest development, a ChatGPT-style Web3 firm BlockGPT has been confirmed to have carried out a rug pull, stealing $256,000 in pre-sale funds. Bloomberg has now come under fire for lack of a proper disclaimer after a paid press release of the scam project made it to its website.
The blockchain security firm CertiK confirmed that the recently launched Web3 company – BlockGPT – is a scam. The rug pull claims were further validated by PeckShield, which revealed that over 800 BNB raised in a presale contract have been deposited into Tornado Cash. Earlier this month, BlockGPT pushed out a press release outlining its vision to create a ChatGPT-style artificial intelligence system on the blockchain. Unfortunately, the press release, which was originally delivered via Globenewswire, was then auto-scraped into Bloomberg. It is important to note that the article published on Bloomberg had very few signs that could have helped readers identify it as a paid press release and not news.
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🟠 Binance Successful Integration Of Tether (USDT) On Arbitrum And Optimism
Binance says it has successfully integrated Tether with the Arbitrum and Optimism networks. Currently, the USDT withdrawal service is also available. According to an announcement on the official website of the largest cryptocurrency exchange in the market, Binance, has completed the integration of Tether (USDT) on the Arbitrum One and Optimism networks. Deposits for Tether (USDT) are now open on both networks.
The exchange also announced that it will open the withdrawal function for Tether (USDT) on the Arbitrum One and Optimism networks once there are enough deposits and will not notify users in a subsequent announcement. Binance’s decision brings many advantages and benefits to traders and the broader blockchain community. Conversely, as the largest stable coin backed by Tether’s reserves, USDT will further enhance the liquidity of both Arbitrum and Optimism. Users no longer need to go through multiple platforms or complicated processes to access USDT on Arabbitrum and Optimism Network.
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📣 Massive Blockchain Game Illuvium Raises Another $10M From Framework Ventures
Leading DeFi investment firm Framework Ventures has poured another $10 million into the hit game Illuvium. It was on May 31 that the co-founder of the RPG series Illuvium, Kieran Warwick, released a statement in the Discord community that he had raised an additional $10 million in funding from Framework Ventures. This transaction is completed through a token, which will be locked for two years and will not be included in the commit, so it will not participate in the distribution of benefits.
Reportedly, Illuvium is an entirely decentralized collectible and role-playing game built on the Immutable X L2 network. Illuvium is about to launch a public beta with three interactive AAA games: Zero (city builder), Overworld (monster world), and Arena (arena). Founded last year by Kieran and Aaron Warwick, this RPG has created a game that rewards players with the chance to discover and capture NFT creatures, known as Illuvials, in combat. The game incentivizes players to have a stake in the project, as the Illuvium network allows in-game fees to be paid out to staked token holders as ongoing rewards. Illuvium successfully raised $5 million in a seed round led by one of the oldest venture capital funds in the decentralized finance.
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💰 Bitcoin Soars $28,000 After US Debt Ceiling Lift Ready To Vote
Bitcoin’s weekly situation update showed positive signs, with the price surpassing the $28,000 threshold after the agreement to raise the debt ceiling was announced and voted on. After seeing the positive news from the US debt ceiling lifting and, like the market comments from the previous article, BTC recovered when it touched the support area at $25,800 and retested the $27,000 and $28,200 areas. Currently, in the H4 time frame, the price is close to the strong resistance area combined.
On May 28, according to local time, US President Biden said in a speech that he had reached a final agreement with House Speaker McCarthy on raising the debt ceiling and called on Congress to approve the agreement as soon as possible. Biden said that reaching a debt ceiling agreement was an important step forward: “This agreement averted the worst of the crisis” and “eliminated the risk of catastrophic default.” He strongly urged the House of Representatives and the Senate to pass the agreement. The proposed deal has now been published on the House of Commons website. It projects that non-defense government spending will stay the same for two years and then increase by 1% by 2025.
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🟢 MakerDAO Proposes Increasing DAI Savings Rate To 3.33%
MakerDAO is making a proposal to increase the DAI Savings Rate (DSR) to 3.3%. If accepted, the proposal would constitute a significant increase from the current rate of just 0,6%. A core MakerDAO development team has proposed increasing DAI’s savings rate to 3.33% amid soaring interest rates as the US Federal Reserve seeks to combat persistent inflation. The proposal still needs to go through a formal voting process before it can be passed.
The Dai savings rate, known as the DSR, can be adjusted regularly in response to short-term changes in Dai market conditions. In addition, it says that interest is accrued in real-time from the system’s revenue. The proposal is currently receiving a lot of support from the community, as many believe the move will boost DAI traffic. One community member even stated that if it goes through, they “will find an alternative to DeFi borrowing”. MakerDAO said in February that increasing DSR by 1% last year pushed more than 35 million DAI into deposits in a month. Meanwhile, the 3-month US Treasury bond yield is currently around 5.29%.
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🪙 Tornado Cash Users Set Up A Lawsuit Against The US Treasury
Six persons battling the US Treasury to reverse Tornado Cash penalties stated in their most recent papers that the US lacks the jurisdiction to restrict the platform. The plaintiffs submitted their reply brief, requesting that the penalties be lifted. The lawsuit against the US Treasury is being funded by Coinbase. Individuals contend in a May 24 filing in support of an earlier petition for partial summary judgment that the issue is not about carving out specific rules for new technology.
Plaintiffs claimed that sanctioning Tornado Cash violated the First Amendment by impeding free expression. To preserve their privacy, the plaintiffs employed open-source software. According to the complaint, punishing the open-source platform violates the basic rights of American residents. The statute used to penalize the crypto mixer states that it can only prohibit property. The legal definition of property, however, is anything that may be owned. But, no one can own, manage, or alter the privacy-focused software. No one, even founders, developers, and users who happen to have TORN in their wallets, can modify or control the platform.
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