Binance faces SEC charges over securities law violations
Binance Holdings Ltd. and its US affiliates are facing indictments from the Securities and Exchange Commission (SEC) for violations of federal securities laws. The SEC alleges that the cryptocurrency exchange and its founder, CZ, engaged in unregistered offerings and investment schemes. Binance faces a total of 13 allegations, including trade manipulation and failure to properly record. The SEC also stated that two Binance cryptocurrencies, BNB (COIN:BNBUSD) and BUSD (COIN:BUSDUSD), are considered securities. Binance was previously charged by the US Commodity Futures Trading Commission in March. The company has yet to officially respond to the SEC’s allegations.
JPMorgan and Indian banks launch blockchain platform in GIFT City
JPMorgan Chase & Co (NYSE:JPM) has joined forces with six Indian banks to introduce a blockchain platform enabling the settlement of interbank dollar transactions in GIFT City. The pilot project will be launched using JPMorgan’s Onyx platform, offering instant 24/7 transactions. The initiative strengthens India’s efforts to position GIFT City as an alternative global financial hub.
“ We are going to conduct a pilot project in the coming months, as we need to analyze the experience of banks. By leveraging blockchain technology to facilitate 24/7 transactions, processing is instantaneous and allows GIFT City banks to support their own time zone and operating hours,” said Kaustubh Kulkarni, Senior Country Director for India and Vice President of JPMorgan for Asia-Pacific.
Central Asian country about to announce addition of Bitcoin to reserves
Speculation mounts over which country in Central Asia has added Bitcoin (COIN:BTCUSD) to its reserves. Lawyer Irina Heaver indicated that a country in the region will soon make the announcement, but cannot reveal the name due to client confidentiality. The Bitcoin adoption strategy in the region is highlighted, with examples such as hydroelectric mining in Kyrgyzstan and pro-Bitcoin mining laws in Uzbekistan. In April, Jan3 CEO Samson Mow said at a press conference held in Mexico that there are three paths a country can take for a BTC adoption strategy — make Bitcoin legal tender, issue a BTC-backed bond, or the easy way out is to simply keep it as a treasury asset.
Multichain Network Token Rises
After the resumption of cross-chain bridge services, the token (COIN:MULTIUSD) of the Multichain Network saw an increase of more than 10% in the last 24 hours. The value peaked at $4.89 before dropping to $3.94. The service recovery boosted the token price and several users reported the resumption of operations. The Multichain issues began in May, leading to speculation about the protocol’s security and operations. Binance temporarily halted Multichain-related deposits during this troubled time.
UK APPG calls for urgent regulation for cryptocurrencies
The UK All-Party Parliamentary Group (APPG) on Cryptocurrencies and Digital Assets has published a comprehensive report on the need for urgent regulation of the cryptocurrency industry. The report makes 53 recommendations to the government, emphasizing the importance of protecting consumers, seizing opportunities and addressing risks associated with cryptocurrencies. The group seeks to coordinate government departments to ensure a consistent approach. The President of the APPG, Dr. Lisa Cameron MP, emphasized the need for evidence-based policies to keep pace with the rapid growth of this sector.
Volcano Energy secures $1 Billion to build Bitcoin mine in El Salvador
Volcano Energy has secured $1 billion to build a bitcoin mine in El Salvador using solar and wind power. The government will play “a crucial role” in planning and execution and has secured a “preferential stake equivalent to 23% of revenues,” Volcano said. Outside investors will hold 27% of the venture and the remaining 50% will be “reinvested” to expand energy production and mining capabilities, the company said. Tether (COIN:USDTUSD), issuer of the stablecoin USDT, is among the investors. This initiative is seen as a way to tap the country’s geothermal potential. Mining companies have been looking for opportunities in Latin America and the Middle East due to restrictions in North America.
Cardano founder warns of dangers of artificial intelligence
Charles Hoskinson, Founder of Cardano (COIN:ADAUSD), warned about the dangers of artificial intelligence (AI) and its possible use by scammers to trick people. He shared a fake email that portrayed him as a way of illustrating the issue. “It’s called a confidence scam and as a result, millions of dollars worth of ADA and other cryptocurrencies will be stolen. This is the world we are heading towards because of generative AI. It’s one of the dark sides and unintended consequences, but scammers are already doing that“, he explained. Hoskinson highlighted the need for authentication, citing the use of PGP keys as a foolproof solution for verifying identities. He plans to address this issue in future videos. The incident highlights the influence of AI on the cryptocurrency industry and the need to find ways to avoid more serious implications.
Elliptic integrates AI chatbot to identify cybercriminals
UK cryptocurrency analytics firm Elliptic has announced the integration of AI chatbot ChatGPT into its operations. This is aimed at improving efficiency in identifying cyber criminals. By incorporating ChatGPT, researchers at Elliptic can synthesize and organize risk information more efficiently, allowing the team to focus on accuracy and scalability. “ Our customers come to us to find out exactly their exposure to risk. The ChatGPT integration allows us to extend our intelligence, giving our clients a view of risk they cannot get anywhere else ”, noted Elliptic CTO Jackson Hull.
Blockchain Association and DeFi Education Fund support Coin Center against sanctions
The Blockchain Association and the DeFi Education Fund have voiced their support for the Coin Center in its lawsuit against the United States Treasury over sanctions imposed on Tornado Cash. They argued that sanctions are illegal as OFAC does not have the authority to sanction a decentralized protocol. They highlighted the legitimate use of Tornado Cash to increase privacy on the Ethereum blockchain. The associations asked for the sanctions to be declared illegal and their application prohibited. “ OFAC sanctions are illegal. OFAC lacks statutory authority to sanction software such as Tornado Cash and, regardless, its decision lacks any factual predicate that would make sanctions legal ”, they said.
Three Arrows Capital hedge fund seeks inclusion in Genesis Global bankruptcy filing
Cryptocurrency hedge fund Three Arrows Capital (3AC) has applied to be included in the bankruptcy mediation proceedings of crypto lender Genesis Global. 3AC, which claims more than $1 billion in transfers made to Genesis before bankruptcy, says participation is necessary to address the claims of all interested parties. “ The [Genesis] plan’s mediation and negotiation efforts will be unable to consensually address the claims of all interested parties and thereby maximize the value of the debtors’ properties without the participation of the joint liquidators [3AC]”, according to the file made by Russell Crumpler and Christopher Farmer, appointed to represent the dissolution of 3AC in the British Virgin Islands. The proposal to extend mediation will be discussed at a hearing in the Southern District of New York. Several individual users of the Gemini Earn program also objected to the extension to speed up the return of their funds.
Metropolitan Museum of Art agrees to return FTX donations
The Metropolitan Museum of Art in New York has agreed to return more than half a million dollars in donations received from the defunct cryptocurrency exchange FTX. The museum must reimburse FTX debtors in two installments. Both parties reached an agreement for the return of donations, in order to avoid litigation and associated costs. The suit is part of efforts to recover funds donated by FTX after its bankruptcy. FTX and its former CEO, Sam Bankman-Fried, made substantial donations to politicians and charities before facing allegations of money laundering. “ The Met wishes to return the Donations to the FTX Debtors, and the FTX Debtors and the Met have engaged in good faith, independent negotiations regarding the return of the Donations ”, the petition stated.
Demox Labs raises $4.5 million, launches Leo Wallet for Aleo Blockchain
Demox Labs announced that it has raised $4.5 million in a pre-seed funding round and launched Leo Wallet, the first privacy-focused cryptocurrency wallet for use on the Aleo blockchain. The round was led by HackVC, with participation from DCVC, Amplify Partners, Coinbase Ventures, CRV, OpenSea and CSquared. Funding will be used to develop zero-knowledge blockchain infrastructure, enhance Leo Wallet’s privacy technology and interoperability with other blockchains. The portfolio already has more than 40,000 customers registered on the waiting list.