Crypto Exchange Coinbase Asks Users to Switch USDT for USDC (CoinDesk)
"Coinbase is waiving the conversion fees for users who wish to switch to a "trusted stablecoin" in a new campaign that highlights the quality of reserves that back Circle-owned USD coin (USDC). "The events of the past few weeks have put some stablecoins to the test and we’ve seen a flight to safety," Coinbase said in blog post published Friday morning Asia time. "We believe that USD coin (USDC) is a trusted and reputable stablecoin.""
Grayscale Bitcoin Trust Discount Widens to Record High Near 50% (CoinDesk)
"Shares of the world’s largest bitcoin fund, Grayscale Bitcoin Trust (GBTC), hit a record-high discount rate of nearly 50% relative to the price of bitcoin (BTC) on Thursday. GBTC is a way for investors to gain exposure to bitcoin through a traditional investment vehicle. GBTC was trading at a discount rate of 47.3%, according to data from crypto index provider TradeBlock."
EU Crypto Taxation Proposal Will Target Firms All Over the World (The Block)
"Companies offering crypto services to residents of the European Union will need to comply with tax reporting rules to close tax evasion gaps. A new proposal from the European Commission will require crypto asset service providers of all sizes and geographical locations to report on the transactions of EU-based clients to tax authorities."
Ethereum Developers Target March 2023 for Shanghai Hard Fork (The Block)
"Ethereum developers are targeting March 2023 for the next hard fork, called “Shanghai,” that will make it possible to withdraw ether staked with network validators. In a meeting today, core developers set the tentative timeline for when they expect the Shanghai upgrade to be completed. Also called "Ethereum Improvement Proposal (EIP) 4895," Shanghai is a planned upgrade that will open validator staking withdrawals, a feature presently missing on the network."
Starbucks Launches Beta of Web3 'Odyssey' Loyalty Program (CoinDesk)
"Starbucks on Thursday launched a beta test of its highly anticipated Odyssey program, which combines customer loyalty rewards with non-fungible token (NFT) collecting and other gamified elements. The popular coffee chain opened the Web3 extension to its Starbucks Rewards program to a "small group of waitlist members," including employees and customers, allowing them to engage in interactive "Journeys" that earn "Journey Stamps" in the form of Polygon-based NFTs. In addition, users also get "Odyssey Points" that will open access to new benefits and experiences in the future, including virtual espresso martini-making classes, exclusive events and trips to Starbucks roasteries and coffee farms."
Coinbase CEO Sees Revenue Falling 50% or More on Crypto Rout (Bloomberg)
"Coinbase Global Inc. Chief Executive Officer Brian Armstrong said the cryptocurrency exchange’s revenue is set to be cut by half or more this year as declining prices and the collapse of rival FTX rattle investors’ confidence.The rapid downfall of FTX capped what was already a brutal year for the cryptocurrency industry, with speculators in retreat as prices of some of the most frequently traded tokens tumbled. Coinbase’s shares have fallen more than 80% in 2022 and the company’s third-quarter revenue was about one-fourth of what it was during the last three months of 2021, when the price of Bitcoin peaked."
Genesis Client Letter Suggests No Imminent Solution to Withdrawal Freeze (CoinDesk)
"In a letter to customers on Wednesday morning, Genesis interim CEO Derar Islim said resolution of his company’s lending unit’s withdrawal freeze is likely to be a matter of “weeks” rather than days. The lending arm of Genesis in November was forced to suspend redemptions following the collapse of crypto exchange FTX. Genesis since has been attempting to raise capital and/or reach a deal with creditors. The brokerage also hired investment bank Moelis & Company to explore options, including a potential bankruptcy, leading to speculation that some sort of resolution might soon be at hand."
FTX Founder Sam Bankman-Fried Is Said to Face Market Manipulation Inquiry (NYT)
"Federal prosecutors are investigating whether FTX’s founder, Sam Bankman-Fried, manipulated the market for two cryptocurrencies this past spring, leading to their collapse and creating a domino effect that eventually caused the implosion of his own cryptocurrency exchange last month, according to two people with knowledge of the matter. U.S. prosecutors in Manhattan are examining the possibility that Mr. Bankman-Fried steered the prices of two interlinked currencies, TerraUSD and Luna, to benefit the entities he controlled, including FTX and Alameda Research, a hedge fund he co-founded and owned, the people said."
Canada’s Biggest Pension Plan, CPPI, Ends Crypto Investment Pursuit (Reuters)
"Canada's biggest pension fund, CPP Investments, has ended its effort to study investment opportunities in the volatile crypto market, two people familiar with the matter told Reuters. The reasons behind CPPI's abandonment of crypto research were not immediately clear. CPPI declined to comment but said it has made no direct investments in crypto. It referred to previous comments on cryptocurrency by its CEO, John Graham, in which he sounded a note of caution."
Celsius Judge Orders Return of User Crypto Worth $50 Million (Bloomberg)
"US Bankruptcy Judge Martin Glenn ordered Celsius Network LLC to return cryptocurrency that never touched the lender’s interest-bearing accounts to its customers. The order, delivered verbally in a hearing Wednesday, applies to a pile of crypto worth roughly $44 million in September. It’s a tiny a fraction of the billions of dollars of coins owed to Celsius users."
Hedge Fund Sues Grayscale for Data on Battered Bitcoin Trust (Bloomberg)
"Fir Tree Capital Management is suing Grayscale Investments for information to investigate potential mismanagement and conflicts of interest at its $10.7 billion Bitcoin fund. The Grayscale Bitcoin Trust closed Monday at a 43% discount to the value of the Bitcoin it holds, in part because the firm issued many shares in the past few years and didn’t redeem any of them, according to a complaint filed Tuesday in Delaware Chancery Court."
Bankman-Fried, Ellison Tap Attorneys as Ftx Probes Ramp Up (Reuters)
"FTX founder and former chief executive Sam Bankman-Fried and Caroline Ellison, head of its now-defunct trading affiliate, have tapped defense attorneys as U.S. authorities probe the crypto exchange's collapse, according to a spokesperson for Bankman-Fried and a source familiar with Ellison's selection."
Ledger Debuts New Device Designed by iPod Inventor Tony Fadell (The Block)
"Hardware wallet developer Ledger is releasing a new device designed by Tony Fadell, the inventor of the iPod and co-creator of the iPhone, at a time when the company is boasting record sales. Ledger's new credit card-sized device is named Ledger Stax. It's set to launch next year and will be priced at $279, a markup from its Ledger Nano X, which currently retails at $149."
Judge Signs off on Subpoenas to 3AC’s SU Zhu and Kyle Davies (The Block)
"A federal bankruptcy judge approved subpoenas for the founders of Three Arrows Capital, a Singapore-based crypto hedge fund that went belly up earlier this year. The subpoenas call on the 3AC founders and leaders Su Zhu and Kyle Davies to produce all financial information on the company "including books, documents, records, and papers, relating to the Debtor’s property or financial affairs.""
Chainlink Staking Is Now Live, a Major Step in Its New Economics 2.0 Plan (The Block)
"Staking for decentralized oracle network Chainlink is now live on Ethereum, in what Chainlink co-founder Sergey Nazarov claims is one of the most highly anticipated events for its network. Until now, token holders had been limited in how they could put their LINK to work and receive rewards for securing the network. With staking enabled, holders of LINK can contribute to the network's security and receive rewards."
‘TWITTER Coin’ Hints Unveiled by Tech Sleuth (The Block)
"Twitter may be taking more decisive strides toward integrating crypto payments — and, perhaps, a native coin. Security researcher Jane Manchun Wong extracted code for a vector image depicting a “Twitter Coin,” which she shared in a now-deleted tweet. Wong also shared an image of a “Coins” section within Twitter’s “Tips” feature."
Circle and SPAC Concord Mutually Terminate Business Combination (The Block)
"Peer-to-peer payments technology company Circle and publicly traded special purpose acquisition company Concord Acquisition Corp mutually ended their proposed business combination after the deal "timed out." The business combination was initially proposed in July 2021. It was later amended in February 2022. Both companies' boards of directors have approved its termination, according to a press release."
Orthogonal Trading Defaults on $36 Million of Loans on Maple Finance (The Block)
"Orthogonal Trading has defaulted on $36 million of loans on crypto lending protocol Maple Finance after the investing firm's funds became tied up on bankrupt exchange FTX. The default at one of Maple Finance's key ecosystem players affects some 30% of active loans on the protocol. In response, Maple Finance has severed ties with Orthogonal Trading, the parent entity that runs both a crypto hedge fund and a credit business, according to a statement. It is removing Orthogonal Trading as a borrower on the Maple Finance platform, while removing Orthogonal Credit as a delegate and shutting down its own lending pools."
Crypto Lender Nexo Says It’s Leaving the U.S., Cites Regulatory ‘Dead End' (The Block)
"Facing a phalanx of regulators, cryptocurrency lending platform Nexo says it is "phasing out" the U.S. side of its operations. In a statement announcing a "gradual" departure, Nexo cited a "dead end" in talks with U.S. regulators. In particular, the firm noted a recent scramble from state regulators and the federal Consumer Financial Protection Bureau to investigate Nexo's "Earn" offering."
Crypto Pressure Ratchets Up as FTC Probes Several Firms Over Ads (Bloomberg)
"The US Federal Trade Commission is probing several crypto firms over allegations their advertisements were deceptive or misleading, the agency said Monday. ’We are investigating several firms for possible misconduct concerning digital assets,’ FTC spokeswoman Juliana Gruenwald Henderson said in a statement to Bloomberg News. She declined to offer further details on the confidential probes."
Genesis Owes $900 Million to Gemini Customers: Financial Times (The Block)
"Crypto brokerage Genesis owes $900 million to customers of Gemini, the crypto exchange run by Tyler and Cameron Winklevoss. Parent company Digital Currency Group (DCG), along with Genesis, owes the amount to the customers of the exchange, according to a Financial Times report. Gemini is attempting to recover the funds, according to people familiar with the matter cited by the report, which added that the exchange is also forming a creditors' committee to try to recoup the assets."
Three Arrows Capital Liquidators Begin Taking Control of Failed Hedge Fund’s Assets (The Block)
"Teneo, the advisory firm overseeing the liquidation of crypto hedge fund Three Arrows Capital (3AC), has taken control of some of its assets, according to a presentation deck obtained by The Block. The deck, presented by Teneo at a court hearing today in the New York Southern Bankruptcy Court, states that the liquidators have made some progress in the 3AC case in terms of assets realization. "Liquidators have taken control of fiat currencies totaling USD $35.6 million, which were held by Singapore banks and/or held by the Company’s pre-appointment lawyers," reads the deck. "Proceeds from forced redemptions of investments of USD $2.751 million" have also been realized."
US Justice Department Wants FTX Fraud Allegations to Be Investigated (CoinDesk)
"The U.S. Department of Justice wants an independent examination of the collapse of crypto exchange giant FTX, a court filing from Thursday shows. The DOJ, which was already looking into the fall of Sam Bankman-Fried's global crypto enterprise, now wants a bankruptcy court to appoint an independent examiner to probe potential wrongdoing that may have led to the collapse, which ended in a bankruptcy filing on Nov. 11."
Crypto Exchange Bybit to Cut 30% of Jobs in ‘Deepening Bear Market’ (Bloomberg)
"Cryptocurrency exchange Bybit is planning to cut its workforce by 30% amid a continued bear market in the asset class, co-founder and Chief Executive Officer Ben Zhou said. The moves are part of an ongoing reorganization aimed at refocusing efforts, and reductions will be across the board, Zhou said Sunday, adding the priority is to ensure business operations are unaffected and client assets remain safe."
Facebook Parent Meta Dips Toe Back Into Policy Circles to Boost Metaverse (CoinDesk)
"After Meta Platforms (META) famously riled up U.S. regulators with Facebook’s abortive stablecoin initiative in 2019, the company is back with an effort to influence digital policy – this time for the metaverse – but it’s charting a less aggressive course. “It’s important for policymakers to set fair rules for Web3 technologies that keep people safe and promote innovation,” the company said in a discussion paper released Friday. Meta highlighted the collective effort going into this, citing the growing Metaverse Standards Forum it helped start this year with other tech firms."