Top Stories This Week
A recent ruling by U.S. District Judge Lewis Kaplan may soon unveil the names of two individuals who acted as guarantors for Sam Bankman-Fried’s $250 million bail bond. The former CEO of FTX has until February 7 to file an objection to this disclosure. Meanwhile, as bankruptcy proceedings unfold, both FTX and impacted stakeholders are seeking subpoenas for information from Bankman-Fried’s close relatives, citing incomplete responses from his inner circle. In related news, Alameda Research has initiated legal action against the bankrupt crypto lender Voyager Digital, aiming to recover $445.8 million in loan repayments made prior to FTX’s downfall.
UK Treasury Publishes Crypto Framework Paper: Here’s What’s Inside
The HM Treasury of the United Kingdom has released a long-awaited consultation document addressing upcoming regulations for the cryptocurrency sector. This comprehensive paper tackles a variety of subjects, including algorithmic stablecoins, non-fungible tokens (NFTs), and initial coin offerings (ICOs). The objective of this initiative is to create a balanced regulatory landscape that integrates digital assets into the Financial Services and Markets Act 2000, thus ensuring fair competition between traditional finance and the evolving crypto market.
Celsius Publishes List of Users Eligible to Withdraw Majority of Assets
Celsius, the crypto lending firm currently undergoing bankruptcy, has announced a procedure for users to withdraw most of their assets that were under its management since it halted withdrawals in June 2022. The company has shared an official update detailing which users can access approximately 94% of their qualified custody assets. Additionally, users will receive information on the associated gas and transaction fees for these upcoming withdrawals.
Silvergate Faces DOJ Investigation Over FTX and Alameda Dealings
The United States Department of Justice is investigating Silvergate, a crypto bank, concerning its ties with the now-defunct FTX exchange and its associated entities. Authorities are delving into the extent of the relationship between Silvergate and both FTX and Alameda Research. Silvergate stated that Alameda had opened an account with them back in 2018, prior to FTX’s launch. The bank reported significant financial losses, amounting to $1 billion in the last quarter, following FTX’s collapse.
Meta CEO Zuckerberg Steadfast on Metaverse Plans Despite $13.7B Setback
Mark Zuckerberg, the head of Meta, reaffirmed the company’s dedication to its long-term vision for the metaverse, even as its Reality Labs sector recorded staggering operating losses of $13.7 billion in 2022, marking the highest annual losses for this division. Despite these challenges, Meta’s overall revenue for the fourth quarter reached $32.1 billion, exceeding Wall Street analysts’ forecasts.
Winners and Losers
As the week concludes, Bitcoin (BTC) is trading at $23,572, while Ether (ETH) is at $1,661, and XRP stands at $0.40. The overall cryptocurrency market capitalization is approximately $1.09 trillion, based on CoinMarketCap data. Among the top 100 cryptocurrencies, Render Token (RNDR) leads the gains with an increase of 94.86%, followed by dYdX (DYDX) at 45.84% and ImmutableX (IMX) at 43.41%. Conversely, the largest three losses were seen in UNUS SED LEO (LEO) with a drop of 12.30%, eCash (XEC) at -5.50%, and Toncoin (TON) at -5.30%.
Most Memorable Quotations
“Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.” – Changpeng “CZ” Zhao, founder and CEO of Binance. “The fact that both the SEC and CFTC took action against market manipulation by an alleged rogue trader is a credit positive for the industry as a whole.” – Cristiano Ventricelli, assistant vice president of decentralized finance at Moody’s Investor Service. “None of the signals that I’ve seen so far suggest that we should shift the Reality Labs strategy long term.” – Mark Zuckerberg, founder and CEO of Meta. “Behind the scenes, Celsius conducted its business in a starkly different manner than how it marketed itself to its customers in every key respect.” – Shoba Pillay, former federal prosecutor and partner at Jenner & Block. “We believe that Bitcoin mining is being unfairly targeted and double-taxed by the IRS, currently.” – Dennis Porter, CEO of Satoshi Action Fund. “[Bitcoin is] not an effective store of wealth. But we are in a world where money as we know it is in jeopardy.” – Ray Dalio, billionaire investor and entrepreneur.
Prediction of the Week
Bitcoin is now considered a ‘crowded trade’ at the $25,000 mark. Following the Federal Reserve’s decision to raise interest rates by 0.25%, the BTC/USD trading pair surged above $24,000 for the second consecutive day, with traders remaining optimistic about reaching $25,000 before a potential pullback. An investment research entity, Game of Trades, observed that Bitcoin has broken through its macro downtrend line and is now targeting the crucial $25k resistance level. However, trader Crypto Tony expressed concerns that this target might be overly popular among investors, indicating it may be less attainable.
FUD of the Week
BonqDAO Protocol Suffers $120M Loss After Oracle Hack: The decentralized autonomous organization BonqDAO has experienced a significant loss due to a smart contract exploit resulting from an oracle hack. This breach allowed the attacker to manipulate the price of the AllianceBlock (ALBT) token, leading to an estimated total theft of $120 million, which includes $108 million from 98.65 million Bonq Euro (BEUR) tokens and $11 million from 113.8 million Wrapped AllianceBlock Tokens (WALBT).
Bithumb Owner Arrested in South Korea Over Alleged Embezzlement
A man believed to be the actual owner of Bithumb, South Korea’s largest cryptocurrency exchange, has been taken into custody on charges of embezzlement. Prosecutors claim that he and his brother, who heads Bithumb affiliate Inbiogen, collaborated to misappropriate corporate funds and manipulate Inbiogen’s stock prices. In other developments, Spanish authorities have arrested the CEO of Hong Kong-based cryptocurrency exchange Bitzlato in a coordinated operation involving law enforcement from France, Portugal, Cyprus, and the United States.
Kraken Shuts Down Abu Dhabi Office, Suspends Support for AED
Crypto exchange Kraken has decided to close its Abu Dhabi office less than a year after obtaining regulatory approval to operate in the region. The company has stated that existing users will still be able to access the platform using alternative fiat currencies. A portion of the workforce is expected to remain in the region. This decision follows Kraken’s announcement to reduce its workforce by 30%, impacting over 1,000 employees, as part of its strategy to navigate through the ongoing challenges of the crypto winter.
Best Cointelegraph Features
Is the Metaverse Really Turning Out Like ‘Snow Crash’? The novel Snow Crash anticipated many challenges associated with the Metaverse back in the 1990s. This article explores persistent issues that still require resolution. Tiffany Fong Flames Celsius, FTX, and NY Post: Hall of Flame: Tiffany Fong gained notoriety on Twitter after her unfortunate experience with Celsius’s bankruptcy, leaving her uncertain about her future trajectory. Why Are Crypto Fans Obsessed with Micronations and Seasteading? From repurposed cruise ships like MS Satoshi to blockchain-governed territories like Liberland and Satoshi Island, crypto enthusiasts are striving to establish idealistic new communities founded on innovative regulations. Subscribe for the most thought-provoking articles in blockchain, delivered weekly.
