Hong Kong Banks Are Netting Crypto Customers as City’s Push Gains Steam (WSJ)
"Banks in Hong Kong, including the local unit of a big Chinese state-owned lender, are taking on crypto companies as new customers as the city advances its vision of becoming a digital-assets hub. Banks have opened deposit accounts for crypto businesses that can be used to support their day-to-day operations, such as paying salaries to employees. Some are going as far as providing crypto trade-settlement services that other lenders have steered clear of because of the potential risks involved."
Twitter Partners With Etoro to Show Real-Time Stock and Crypto Information (TechCrunch)
"Twitter has partnered with the investment platform eToro to show real-time information about stocks and crypto prices. This expands upon the social network’s Cashtag feature, which provided info about a limited number of stocks and crypto coins through TradingView data. The social media company first introduced the feature in December, letting users search for a ticker or coin symbol like $TSLA, $APPL or $ETH to get prices directly in search results. In a tweet announcing the feature, eToro said that users will be able to see the real-time prices for a “much wider range of stocks, crypto, and other assets.”"
LSEG Teams With Digital Trading Platform to Offer Bitcoin Futures and Options (Reuters)
"London Stock Exchange Group (LSEG.L) has teamed up with Global Futures and Options (GFO-X) to offer Britain's first regulated trading and clearing in bitcoin index futures and options derivatives, the companies said on Thursday. Britain, which aims to become a global hub for crypto technology, launched a public consultation earlier this year on future rules for cryptoassets, which are currently unregulated."
Solana’s Crypto-Ready ‘Saga’ Smartphone Goes on Sale May 8 (CoinDesk)
"Solana Labs’ crypto-forward smartphone Saga will go on public sale May 8, the company behind the Solana blockchain said Thursday. Pre-ordered devices are shipping now. The Android smartphone is a gamble on mobile being imperative to the future of crypto, employees at Solana-focused companies told CoinDesk. It was nearly 10 months ago that Solana first teased the radical potential of a cellphone that doubled as a dedicated crypto hardware wallet, and the possibilities such a product could hold for its entire ecosystem. The new device from Solana Mobile costs $1,000 and is built on hardware from Bay Area smartphone company OSOM. It has 512 GB of storage, two versatile back camera lenses, a 6.67-inch OLED display and a fingerprint scanner. It will ship with the latest Android operating system installed."
Kraken Set to Unstake More Than $1 Billion Worth of ETH After Shapella Upgrade (The Block)
"U.S. crypto exchange Kraken has initiated withdrawal requests for their stakes following the Shapella upgrade that introduced ether (ETH) withdrawals. The upgrade has resulted in a massive influx of withdrawal requests, surpassing $1.5 billion, including both partial and full exits. Kraken provides a staking service that streamlined the Ethereum staking process, allowing users to deposit into the platform and create validators on their behalf. This development follows Kraken’s settlement of charges brought by the Securities and Exchange Commission for allegedly failing to register the offer and sale of its staking program in the U.S. Kraken agreed to pay a $30 million fine."
Apple Lets Uniswap’s Wallet App Out of ‘Jail' (The Block)
"Uniswap's iOS wallet has gone live on Apple's App Store after a delay. The startup behind the decentralized exchange protocol originally unveiled the app in early March, but at the time Uniswap said that Apple was holding up approval. It was launched in a limited release at the time, because Uniswap said in a Twitter thread that "Apple won't green-light our launch, and we don't know why." "We submitted our mobile app months ago—and even though we are 100% compliant with their specifications, we’re still stuck in limbo," Uniswap said at the time."
Crypto Exchange FTX Could Reopen, Its Attorney Says; Firm’s FTT Token Surges (CoinDesk)
"FTX, the cryptocurrency exchange that collapsed spectacularly in November, is considering reopening at some point in the future as it navigates bankruptcy, its attorneys from Sullivan & Cromwell said in a court hearing on Wednesday. One potential option discussed was to let FTX's creditors convert a portion of their holdings to a stake in a reopened exchange. FTX's FTT token more than doubled in price following the news."
Ethereum’s Pending Withdrawals Total $1.34 Billion After Shapella (The Block)
"Roughly eight hours after Ethereum's Shapella upgrade went live just before 6:30 p.m. EDT last night, more than $1.34 billion in ether was waiting to be withdrawn. That figure has increased to over $1.71 billion as of 8:00 am EDT. 695,750 ether was pending withdrawal earlier today, according to the token.unlocks application. That figure has increased to 860,750 coins. More than 99,000 ether ($190 million) was estimated to be withdrawn over the next 11 hours — creating an early post-Shapella average of $380 million in ether withdrawn per day."
High Hopes for EU’s MiCA Law With Final Vote Imminent (CoinDesk)
"Proponents of the European Union’s forthcoming Markets in Crypto Assets (MiCA) regulation say it will have an effect beyond its limited scope – and the race to seize the bloc’s crypto crown has begun even before a final vote on the law. After several years of consultation and lawmaker haggling, a final text of MiCA is set to be voted on by the European Parliament later this month. The law would likely then enter into force in July, with major provisions kicking in between 12 and 18 months later. On paper, MiCA sets out to regulate those issuing crypto assets, ensuring white papers of investor information are honest. Providers of linked services – like crypto custodians, advisors or exchanges – will have to apply to one of 27 national authorities to get a license to operate across the whole bloc."
Aptos Giving $20 Million to Artists Willing to Create on Its Blockchain (The Block)
"Aptos’ quest to set itself apart has taken a new turn as the company announced a grant program which will award $20 million to “support artists and creatives of all mediums” who are willing to use the blockchain to realize their vision. The Andreessen Horowitz-backed blockchain has made a name for itself thanks to a developer-friendly programming language, which was originally created by tech giant Meta’s Novi team. But competition among blockchains and scaling solutions remains thick. Rival chains and established players like Ethereum, Solana, Polygon and Cosmos each provide strong alternatives to Aptos."
Exploit Involving Yearn Finance Estimated to Be Around $10 Million: Peckshield(The Block)
"An exploit involving an early version of the DeFi protocol Yearn Finance, called iearn, took place earlier today, causing damages of $11.6 million, according to PeckShield. The exploiter received a mix of stablecoins, including DAI, USDC, BUSD, TUSD and USDT, according to LookOnChain. Pseudonymous crypto researcher Samczsun claimed that Yearn Finance's version of USDT, called yUSDT, has been broken since it was deployed around three years ago. He said it was “misconfigured to use the Fulcrum iUSDC token instead of the Fulcrum iUSDT token.”"
The U.S. Cracked a $3.4 Billion Crypto Heist—And Bitcoin’s Anonymity (WSJ)
"James Zhong appeared to have pulled off the perfect crime. In December 2012, he stumbled upon a software bug while withdrawing money from his account on Silk Road, an online marketplace used to hide criminal dealings behind the seemingly bulletproof anonymity of blockchain transactions and the dark web. Mr. Zhong, a 22-year-old University of Georgia computer-science student at the time, used the site to buy cocaine. “I accidentally double-clicked the withdraw button and was shocked to discover that it resulted in allowing me to withdraw double the amount of bitcoin I had deposited,” he later said in federal court. After the first fraudulent withdrawal, Mr. Zhong created new accounts and with a few hours of work stole 50,000 bitcoins worth around $600,000, court papers from federal prosecutors show."
a16z Unveils New Crypto Index That Shows Adoption Outpacing Price Performance (The Block)
"a16z Crypto, the web3 investment arm of Andreessen Horowitz, unveiled its new "State of Crypto" index, which paints a rosier picture of the nascent market than most price charts offer. The venture investor, which has backed companies and projects such as dYdX, LazerZero and Dapper Labs, released the new index alongside its similarly named State of Crypto report. The index factors in several so-called adoption and innovation parameters, including the number of active developers, mentions of crypto in academic research, and volumes across decentralized exchange venues. It doesn't include more unsavory data points like bankruptcies, blockchain hacks, or regulatory enforcement actions."
G7 to Discuss Digital Currency Standards, Crypto Regulation (Reuters)
"Group of Seven (G7) advanced economies will consider how best to help developing countries introduce central bank digital currencies (CBDC) consistent with appropriate international standards, Japan's top currency diplomat Masato Kanda said on Tuesday. The move will be among key themes of G7 discussions that Japan chairs this year, as part of efforts to address challenges the global community face from fast-moving digital technology, he said."
SEC Is Adding Attorneys to Crypto Enforcement Unit (CoinDesk)
"The U.S. Securities and Exchange Commission is hiring general attorneys for its crypto enforcement division in New York, Washington, D.C., and San Francisco, according to a job posting. The call for attorneys to join the regulator's Crypto Asset and Cyber Unit, or CACU, comes after the agency said in March that it was "planning to add additional staff" to the unit, which was initially meant to be a 20-person operation but has since doubled in size. Under Chairman Gary Gensler, the SEC has been cracking down on the crypto industry with renewed vigor since the 2022 market turmoil saw the collapse of big firms in the sector, crypto exchange FTX among them."
Metalpha Raising $100 Million Fund to Woo Chinese Bitcoin Buyers (Bloomberg)
"Metalpha Technology Holding Ltd. is targeting a $100 million fund to invest in Bitcoin and other crypto products from Grayscale Investments LLC, offering Chinese investors with an appetite for crypto a regulated channel to get involved. The licensed digital asset wealth manager, formerly known as Dragon Victory International, has secured $20 million for its new fund since March, said Adrian Wang, Metalpha’s president."
Microstrategy’s $4 Billion Bitcoin Bet in the Green as Price Hits $30,000 (The Block)
"Thanks to the latest rally in the crypto market, MicroStrategy's bitcoin holdings are in the green, on paper at least. Bitcoin was trading at $30,103 by 4:40 a.m. EST, up 1.6% over the past 10 hours, according to Binance data via TradingView. The cryptocurrency is up 82% year-to-date and recently registered its best quarterly increase in two years. The rise in bitcoin has been linked to the prospect of interest rate increases peaking amid banking stress in the U.S. and across Europe. The surge in prices has pushed the price of bitcoin above MicroStrategy's average purchase price of $29,803. While that means the company is technically up, it's only by a few hundreds dollars, which is a small buffer. Since the company owns so much bitcoin, if it was sold in a short period of time, it would likely push the price down significantly in the process. This means the company likely wouldn't be able to sell all of its bitcoin for a profit yet if it wanted to."
Bitcoin Rallies Past $30,000 for First Time Since June 2022 (Bloomberg)
"Bitcoin climbed above $30,000 for the first time since June 2022, as cryptocurrencies keep outpacing other major asset classes amid expectations that central banks will pause rate increases. Bitcoin is now up 82% since Dec. 31, handily beating the Nasdaq 100 tech index’s 19% gain. Gold, another investor favorite this year, has climbed 9.6%. Crypto’s rapid ascent has seen Bitcoin vault past where it stood when hedge fund Three Arrows Capital imploded last summer — yet it remains more than 50% below its all-time high in November 2021."
Winklevoss Twins Lend $100 Million to Their Gemini Crypto Platform (Bloomberg)
"Billionaires Tyler and Cameron Winklevoss dipped into their own pockets to support their crypto exchange Gemini Trust Co., which has faced numerous setbacks during the yearlong market downturn for digital assets. The twins made a $100 million loan to Gemini recently, according to two people familiar with the matter, who did not wish to be identified discussing private information. The move came after Gemini had informally sought funding from outside investors in recent months without coming to any agreements, according to three people. Gemini and the Winklevoss twins didn’t respond to requests for comment."
Bankruptcy Lawyers, Advisers Billed Ftx for $30 Million in February (The Block)
"What’s $30 million to a company that owes its customers billions? Bankrupt crypto exchange FTX racked up more than $30 million in monthly fees from lawyers and advisers in February, according to new compensation reports filed in bankruptcy court. The business of bankruptcy is expensive. Lawyers, financial advisers, investment bankers and consultants billed FTX approximately $29.7 million for compensation and another $407,000 in reimbursement costs during the shortest month of the year."
Hong Kong’s Financial Secretary Declares Now Is the 'Right Time' for Web3 Adoption (CoinDesk)
"Hong Kong Financial Secretary Paul Chan said Sunday in a blog post that although crypto markets have been highly volatile, it’s the “right time” to push Web3 adoption in the Chinese administrative region. Chan said that in planning Hong Kong's budget he identified Web3 technologies as one of three focus areas to target. The secretary said the cryptocurrency industry reminds him of the early days of the internet in the 2000s, with a large “bubble” that burst and weeded out players. As a result, the market was quieter and real-world use cases could be promoted."
Aptos Bumps Ahead of $50M Token Unlock Which May Add Selling Pressure (CoinDesk)
"Millions of Aptos Labs' APT tokens will be unlocked on Wednesday in a planned move that’s set to increase the token's circulating supply by 0.5%, data shows. The unlock is expected to occur at 05:30 UTC. APT rose nearly 8% in the past 24 hours, CoinGecko data shows, outperforming bitcoin (BTC) and the broader market. The Aptos network has a market cap of over $2.3 billion. The APT unlock is valued at over $50 million based on current prices. Unlocks refer to the automatic release of new tokens belonging to any blockchain network into the open market. They are usually planned beforehand."
U.S. Treasury Publishes DeFi-Focused Illicit Finance Risk Assessment (The Block)
"The U.S. Treasury Department on Thursday published its first illicit finance risk assessment report focused specifically on decentralized finance, or DeFi. The 42-page report states that "actors like the Democratic People’s Republic of Korea (DPRK), cybercriminals, ransomware attackers, thieves, and scammers are using DeFi services to transfer and launder their illicit proceeds" and notably contends that DeFi services that would be subject to the Bank Secrecy Act “fail to comply with AML/CFT obligations, a vulnerability that illicit actors exploit.”"
Bank of England Targets 30-Strong Team for Digital Currency (CoinDesk)
"The Bank of England is looking to hire a staff of as many as 30 people to develop a central bank digital currency, the Sunday Times reported, without saying where it got the figure. In February, the U.K.'s central bank and finance ministry said they were starting further research and development on a digital version of the pound sterling, and invited the public to weigh in on the plans. While the project has been dubbed "Britcoin" in the press, the bank is less keen on the moniker, saying no decision has been made on whether a digital pound would use distributed ledger technology."
SushiSwap Hacked, Head Chef Says ‘Revoke All Chains' (The Block)
"Decentralized exchange SushiSwap has fallen victim to an exploit, which led to the loss of more than $3.3 million from at least one user, known as 0xSifu on Twitter. The exploit involves an approve-related bug on the RouterProcessor2 contract — which PeckShield and SushiSwap Head Chef Jared Grey recommend revoking on all chains. The root cause, according to Ancilia, Inc. and in technical terms, “is because in the internal swap() function, it will call swapUniV3() to set variable "lastCalledPool" which is at storage slot 0x00.”"
Crypto Exchange BitGet Starts $100M Asia-Focused Web3 Fund (CoinDesk)
"Seychelles-based crypto exchange Bitget has started a $100 million fund targeting Web3 startups as Asian countries build a framework for developing Web3. East Asian countries have been making strides to promote crypto in the last few months, with Hong Kong seemingly easing its crypto regulations and Japan approving a white paper for Web3 development last week. "Despite the bear run, Bitget has always been supporting promising and innovative projects and the development of the Web3 environment with a focus on BUIDL. The launch of Bitget Web3 Fund is a continuation of our ongoing efforts to drive the adoption of crypto and Web3, reflecting our ‘Go beyond derivative’ strategy in 2023,” Gracy Chen, managing director of Bitget, said to CoinDesk in a statement."
Binance.US Struggles to Find Bank to Take Its Customers’ Cash (WSJ)
"The U.S. affiliate of global crypto exchange Binance has struggled to find a bank for its customers’ cash after the failure of Signature Bank left it without a key banking partner, people familiar with the matter said. Users’ dollar deposits were previously sent to either Signature Bank or Silvergate Capital Corp., SI according to Binance.US’s website. The failures of Signature and Silvergate, both seen as friendly to crypto companies, left many crypto firms rushing to find new banking partners. As a stopgap, Binance.US is using at least one middleman to store funds on its behalf. Because money is held at the middleman’s banks, it can slow down the process of sending and moving funds, the people said."