Elon Musk faces insider trading allegations
Tesla (NASDAQ:TSLA) CEO Elon Musk faces insider trading allegations in a class-action lawsuit filed by investors, who allege Tesla’s CEO manipulated the Dogecoin (COIN:DOGEUSD) cryptocurrency, resulting in billions in losses for them. Investors claim Musk used publicity strategies, including Twitter posts and media appearances, to profit at his expense. The judge indicated that he would likely allow the investors’ complaint to be amended. The case is Johnson and Others v. Musk et al., US District Court, Southern District of New York, No. 22-05037.
OpenAI’s chief technology officer has her Twitter account hacked
On June 2, the Twitter account of Mira Murati, chief technology officer at OpenAI, was apparently hacked, resulting in tweets promoting a fraudulent cryptocurrency airdrop. The tweet contained a phishing link that promised an ERC-20 token called OPENAI. The linked website mimicked the design of a real project but was used to steal information from crypto wallets. Users suspect a possible SIM-swapping attack. The post was live for about an hour and was viewed 79,600 times and retweeted 83 times before being deleted.
Bitcoin mining profitability drops, but miner defies trend
The Hashrate Index reported a 44% drop in Bitcoin (COIN:BTCUSD) mining profitability over the last 12 months. However, mining company ClarkSpark is challenging this trend by expanding its fleet of mining machines. They recently purchased 12,500 Antminer S19 XP units for $40.5 million, at a rate below market price. Other companies such as Compass Mining and Bitfarms are also expanding their mining operations despite profitability challenges. The industry continues to expand, with miners hitting new milestones and solidifying their market position. “ This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s.“, said CEO Zach Bradford.
Marathon Digital Sets Record Bitcoin Mining in May
Marathon Digital Holdings (NASDAQ:MARA) recorded a record Bitcoin extraction in May, with a 77% increase from April 2023. The company produced 1,245 BTC, a 366% increase from May 2022. The increase in production was driven by the increase in BTC hash rate and transaction fees. The company took advantage of unusually high transaction fees to profit. Marathon Digital plans to reach a hash rate of 23EH/s by the middle of this year. “ With our scale and our improved uptime during the month, we were able to capitalize on this opportunity. While these unusually high transaction fees are historically rare, we believe these events can serve as a positive sign for the future of the mining economy”, said Marathon President and CEO Fred Thiel.
Digital Currency Group requests consolidation of class actions
Digital Currency Group (DCG) and its CEO, Barry Silbert, have filed for consolidation of two class-action lawsuits relating to alleged losses during the crypto winter. Defendants argued that the cases are similar and have overlapping legal issues. Defendants also argued that case consolidation would be necessary to avoid conflicting decisions and promote judicial efficiency. In the letter, the defendants informed Underhill that they had asked US District Judge Lewis Liman to transfer the case from New York to Connecticut. “ The motion will be fully communicated by June 13, 2023, and if Judge Liman grants the transfer motion to this Court, Defendants intend to act quickly to consolidate both actions”, stated the letter. Plaintiffs in Connecticut contested the change, while DCG closed its brokerage subsidiary, TradeBlock, citing regulatory uncertainty.
Alchemy Pay partners with Mastercard for NFT payments
Alchemy Pay (COIN:ACHUSD) has partnered with Mastercard (NYSE:MA) to offer “NFT Checkout”, a direct payment method for digital art. The integration aims to make the NFT market more accessible, revolutionizing the way users interact with digital art. “ This significantly reduces the hurdles associated with time-consuming and inconvenient cryptocurrency purchases and transactions”, said Alchemy Pay. The company believes that the partnership with Mastercard, which has a global presence, can drive NFT adoption. Additionally, Alchemy Pay has announced updates to its services, such as the addition of new payment channels in New Zealand and Australia and support for 22 currencies for the off-ramping service.
Xapo Bank announces integration with the SEPA network
Xapo Bank announced integration with the SEPA network, allowing members to move funds in euros quickly and efficiently. With this integration, members can send and receive funds in euros from financial institutions in SEPA participating countries. In addition, Xapo Bank offers competitive exchange rates and an annual interest rate of 4.1% on Euro deposits. The SEPA integration is part of Xapo Bank’s commitment to offering additional fiat and crypto payment rail options. “With traditional payment rails, it can take people outside of EU hours to move EUR in and out of their accounts, often requiring them to switch between banks and also at a much higher cost. This is an issue for people in emerging markets, digital nomads and anyone working internationally or moving money across multiple borders”, said Seamus Rocca, CEO of Xapo Bank.
Silvergate Bank to introduce 10-day self-payment plan
Silvergate Bank (NYSE:SI) has agreed to submit a reverse charge plan to the Federal Reserve and California financial regulators within 10 days. The order comes as part of the process of winding down the bank’s operations following commercial failures and deficiencies identified by regulators. The plan needs to be approved by the California Department of Financial Protection and Innovation, and the bank is subject to restrictions and regulatory approval for executive bonuses and severance pay. “ The Bank has experienced significant declines in its customers’ crypto-related deposits, triggered in part by the collapse of cryptocurrency exchange FTX Trading Ltd ”, Fed said.
CFTC proposes revising risk management rules for cryptocurrencies and AI
The Commodity Futures Trading Commission (CFTC) has proposed revising its risk management rules, considering the risks associated with evolving technologies such as cryptocurrencies and artificial intelligence. The CFTC highlighted risks related to digital assets, including recent crypto-friendly bank failures and exchange collapses. Cryptocurrency custody and the need to identify and manage risk were also emphasized. The CFTC is accepting public comment on the proposed rulemaking before developing the final rules. “Brokers may consider holding customer property in the form of stablecoins or other digital assets that may result in unknown and unique risks. These brokers may face third-party custody and other risks that must be identified and managed,” Commissioner Romero said Thursday.
Circle to launch native coin on the Arbitrum platform
Circle, issuer of the stablecoin USD (COIN:USDCUSD), will launch its native coin on the Arbitrum platform on June 8. The Arbitrum Foundation has announced that native USDC will replace the bridged version currently in use. The change will bring benefits including USD redemption and Cross Chain Transfer Protocol (#CCTP) support. Circle plans to bring the protocol to Arbitrum after launch. The Arbitrum Foundation will work closely with ecosystem applications to ensure a smooth liquidity transition. “ Upon integration into Arbitrum Bridge, this will allow USDC to natively move to and from Ethereum (and other supported chains) in minutes – with no further delays in withdrawals”, according to the foundation.
Coinbase Derivatives Exchange to launch institutional trading of Bitcoin and Ether futures contracts
The CFTC-regulated Coinbase Derivatives Exchange (NASDAQ:COIN) will launch institutional trading of Bitcoin (COIN:BTCUSD) and Ether (COIN:ETHUSD) futures contracts starting June 5. Institutional-sized contracts will allow investors to manage risk and seek attractive returns with lower fees. The initiative aims to meet growing institutional interest and provide greater precision in managing crypto exposure. Coinbase has also recently launched nano Bitcoin and Ether contracts, driving demand for advanced derivatives. Reducing trading costs aims to increase accessibility and participation in the crypto ecosystem. “The introduction of institutional-sized contracts marks another milestone in our ongoing mission to provide cutting-edge financial instruments accessible to market participants and underscores our dedication to solutions tailored to the needs of institutional clients”, said a press release. Coinbase has also expanded its international presence with the launch of a derivatives exchange in Bermuda.
Uniswap community rejects proposal to charge LP fees
In a surprising vote, over 45% of the Uniswap community rejected a proposal to charge liquidity providers (LPs) fees over the protocol. Over 45% of the community voted for ‘no fees’, around 42% voted for one-fifth of the fees to be levied on LPs, while only 12% supported one-tenth of the fees. LPs are professional market makers that facilitate trading on Uniswap and are currently not charged by the platform. The rejected proposal may lead to a revision of the parameters to keep the community satisfied. “ We need to reaffirm that liquidity providers are users of the protocol and do not need full discounts. The LPs that make the most money from Uniswap are not retail traders. They are professional market makers, like those seen on traditional exchanges”, said the company.
Huobi seeks cryptocurrency trading license in Hong Kong
Huobi exchange is seeking to obtain a cryptocurrency trading license in Hong Kong and could receive it in the next six to 12 months, according to Justin Sun, consultant at Huobi and founder of Tron. The move to Hong Kong is aimed at building on the city’s goal of becoming a hub for virtual assets. Furthermore, Sun mentioned that other Asian exchanges such as OKX, Gate.io, Bitget and ByBit are also considering applying for similar licenses. However, Huobi has no plans to operate in Canada due to strict regulatory requirements.
China sets national standard for blockchain technology
China’s Ministry of Industry and Information Technology (MIIT) has established a national standard for blockchain technology, aiming to boost its development and standardization in the country’s industry. More than one hundred blockchain companies are already applying the standard in their operations. Despite its restrictive stance towards cryptocurrencies, China has been actively exploring the use of blockchain technology and has made significant strides in the development of the CBDC digital yuan.
Central Bank of Kenya does not see digital currency as a priority
The Central Bank of Kenya has stated that problems in payment systems can be addressed through innovations within the existing ecosystem, and that the creation of a central bank digital currency (CBDC) may not be a compelling priority. After receiving more than 100 comments in a consultation, the central bank highlighted the benefits and risks associated with a CBDC, mentioning the difficulties faced by countries that have already adopted this technology. “ The allure of CBDC is fading. The bank will continue to monitor developments in CBDCs to inform future assessments”, the Central Bank of Kenya said in its press release.
Central Bank of Nigeria clarifies ban on cryptocurrency transactions
In 2021, the Central Bank of Nigeria (CBN) banned cryptocurrency-related transactions in the country due to concerns about money laundering, terrorist financing and lack of control over the money supply. The CBN deputy governor cited the opacity of the cryptocurrency market and disillusionment with operators’ practices as reasons for the ban. Nigerian fintech startup Lazerpay also announced the closure of its operations due to lack of funds. “We excluded them from our banking system due to the persistent threat posed by the opacity of the cryptocurrency system to financial stability (…) When the central bank began to address the COVID crisis through measures such as quantitative easing, some members of the private sector believed that such actions could trigger hyperinflation”, clarified Kinsley Obiora, CBN Deputy Governor for Economic Policy.
Animoca Brands postpones 2020 financial report due to market turmoil
Animoca Brands, a leading investor in blockchain and Web3 games based in Hong Kong, has delayed its financial reporting since 2020. The company has been given an extension until the end of Q1 2023 to publish its 2020 audited accounts, but has yet to did. In a recent report, company chairman Yat Siu blamed the market turmoil of 2021 and 2022 for this delay. The company is still working with DFK International, its private auditor, to produce the reports. The impact of investments made in 2020 on the 2020 accounts is causing a significant backlog. Siu said, “ A lot has happened in 2021 and 2022. I mean, at the very least, it’s like the lifespan of an industry in a few months ”.
Kakarot zkEVM completes funding round with support from Vitalik Buterin and Starkware
Kakarot zkEVM, an Ethereum Virtual Machine (EVM) based in Cairo, has completed its pre-seed funding round. Investors such as Vitalik Buterin, Nicolas Bacca and Starkware supported the project. Kakarot allows developers to build EVM-compatible applications using the Solidity language. The plan includes integration with Starknet Layer 2 and the creation of a unified stack with the Madara sequencer to enable Layer 3 zkEVMs, promoting scalability and low gas costs. The ultimate goal is to connect to native Starknet protocols and enable interoperability. “ As a result of computing in another layer, gas costs are (asymptotically) exponentially lower than in L2, and performance (TPS) is higher. The scalability of the accumulations accumulates and multiplies ”, according to the project.