Do Kwon Arrested in Montenegro as U.S. Charges Crypto Fugitive With Fraud (WSJ)
"The Justice Department charged South Korean crypto entrepreneur Do Kwon with fraud on Thursday as officials in Montenegro arrested the creator of the failed TerraUSD stablecoin. In an indictment unsealed in a New York federal court, Mr. Kwon was charged with eight criminal counts of fraud and is accused of conspiring with an unnamed U.S.-based investment firm to use trading strategies to alter the price of the stablecoin in May 2021. That month, TerraUSD fell beneath its $1 peg but recovered, a rebound that Mr. Kwon later cited as evidence of its stability."
Circle USDC Stablecoin Redemptions Rise to About $6 Billion (Bloomberg)
"Customers are continuing to redeem Circle’s USD Coin stablecoin at a greater pace than buying it even after the firm recouped deposits that were caught up in the collapse of Silicon Valley Bank. On March 20, users redeemed $738.6 million USDC, while Circle issued less than $9 million of the token on the Ethereum blockchain, according to researcher CryptoCompare. The day before, customers redeemed $23.3 million as Circle issued $231 million on the network, data shows. Since the beginning of March, Circle burned about $12.2 billion USDC, while issuing about half as much on Ethereum, CryptoCompare found."
Block Shares Tumble as Short Seller Hindenburg Research Takes Aim at Payments Firm (The Block)
"Short seller Hindenburg Research is short Jack Dorsey's Block Inc. in its first report since tackling India's Adani Group. Block has "systematically taken advantage of the demographics it claims to be helping," Hindenburg concluded after its two-year investigation. The payments company's success has nothing to do with disruptive innovation, rather the firm's willingness to "facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics," it claimed."
Coinbase CEO Says the SEC Risks Putting Us Financial System Behind Other Countries (The Block)
"Recent actions by the Securities and Exchange Commission is putting U.S. financial leadership at risk, Coinbase CEO Brian Armstrong said during a Twitter live chat on Thursday. Compared with countries like the UK, Brazil and Singapore, the U.S is the "farthest behind" in areas such as legislation and banking rails, Armstrong said. If action isn't taken, it could get worse. The comments came only a day after the SEC issued the crypto exchange a warning notice regarding its staking service, Coinbase Earn and Coinbase Wallet. The recent action by the SEC is part of a slew of regulatory warning shots fired against other crypto firms in the U.S."
Web2 Behemoth Google Trying to Innovate for Web3 (The Block)
"Google says it wants to disrupt itself to serve the needs of the crypto community. Rather than trying to sell what it already offers to the industry, the search giant instead says it is trying to innovate. "Can we add some new products to that suite that actually addresses the specific needs that the crypto community has [and] that maybe other companies will have in the future?" James Tromans, head of Google Cloud Platform for web3, said on The Scoop podcast with Frank Chaparro this week at Paris Blockchain Week, referring the the company's thinking on the matter. "But right now it's sort of the bleeding edge of where people are building." "There's a lot of progress that we can still make, but there's a lot of opportunity," Tromans said."
White House Takes Aim at Crypto in Scathing Economic Report (CoinDesk)
"The Biden administration took aim at cryptocurrencies in a new report arguing that many aspects of the digital asset ecosystem are creating issues for consumers, the financial system and the environment. The "Economic Report of the President," published on Monday, is an annual publication by the Council of Economic Advisers aimed at explaining the president's economic priorities and policies. The March 2023 issue included an entire chapter on digital assets and “economic principles.”"
Coinbase Argues an Arbitration Case in U.S. Supreme Court as Crypto Makes Its Debut (CoinDesk)
"Coinbase (COIN) argued at the U.S. Supreme Court on Tuesday that its disputes over forcing customers into arbitration should freeze the courts while the arguments play out – a moment that breaks legal ground for crypto with the industry’s first high court appearance. The case itself has little direct effect on the business of digital assets, though it could be significant for Coinbase and other crypto companies when they clash with clients. The crypto exchange essentially argued to the justices that when a court rules that a customer deserves to settle a dispute in a courtroom instead of the arbitration outlined in their user agreement, a company appeal should halt that case from progressing through the courts until the appeal is decided."
Sushi Hit With SEC Subpoena, Seeking $3 Million USDT Legal Defense Fund (The Block)
"The Securities and Exchange Commission recently served Sushi and "head chef" Jared Grey with a subpoena, the decentralized finance company said on Tuesday. Grey asked Sushi DAO to fund a $3 million USDT legal defense fund to cover costs related to the SEC’s inquiry. Sushi sought to establish a legal entity to reduce liability for contributors and the DAO last year. “We’re cooperating with the SEC,” Grey said in a blog post. “It has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors.”"
Over $1 Billion of Ether Has Been Lost Forever Due to Bugs and Human Error (The Block)
"More than $1 billion of ether has been lost forever due to bugs and human error, according to research by Conor Grogan, director of product strategy and business operations at Coinbase. "I've categorized thousands of instances of Ethereum typos, user errors and buggy contracts," Grogan said on Twitter on Monday. He noted that he'd cataloged 636,000 ETH ($1.15 billion) that is lost, representing 0.5% of the coin's circulating supply. The majority — some 514,000 ETH — is due to a 2017 bug in the Parity crypto wallet. Defunct crypto exchange Quadriga lost 60,000 ETH to a contract fault and the Akutars NFT collection lost 11,500 ETH in a failed Mint. On top of those, Ethereum users have cumulatively sent 24,000 ETH to a burn address, where the coins can no longer be accessed."
Hacker vs Hacker: North Koreans Attempt to Phish Euler Exploiter of $200M in Crypto (CoinDesk)
"Euler Finance’s efforts to recover nearly $200 million in stolen crypto hit yet another wrinkle Tuesday after a wallet linked to North Korean hackers tried to swindle the decentralized finance (DeFi) protocol’s exploiter. The so-called Ronin bridge exploiter, which last March stole $625 million worth from crypto game Axie Infinity, sent an on-chain note to Euler’s exploiter asking it to decrypt an encrypted message. But according to the experts CoinDesk spoke with, the message was a phishing scam attempting to steal the credentials for the Euler exploiter’s wallet."
Coinbase Pauses Support for Signet Crypto Payment Network (WSJ)
"Coinbase Global, the largest cryptocurrency exchange in the U.S., told clients on Monday that it won’t support collapsed Signature Bank’s real-time payment network, known as Signet, until further notice. Coinbase users who relied on Signet for U.S. dollar deposits or withdrawals won’t be able to send funds to each other outside of traditional banking hours. The company said it is looking for a new technology provider and waiting for clarification on the outcome for Signet."
EU’s MiCA Crypto Law Debate Scheduled for April 18 (CoinDesk)
"The European Union’s Markets in Crypto Assets Regulation, known as MiCA, will be the topic of an April 18 discussion in the European Parliament, heralding final formal agreement of the landmark law that will bring a crypto licensing regime across the bloc, according to an agenda published on the Parliament’s website. The law’s political outlines were made final last June, but there have been multiple delays in definitively agreeing on a legal text, which must be translated into the EU’s 24 official languages."
FTX Sues for Control of Bahamas Assets, Calls FTX Digital Markets ‘a Front’ to Defraud Customers (The Block)
"Bankrupt crypto exchange FTX is suing the liquidators of its Bahamas entity, saying FTX Digital Markets wrongly claims to own the exchange and was actually “a front to facilitate a conspiracy” to defraud customers. FTX's new management wants a declaratory judgment from the U.S. Bankruptcy Court for the District of Delaware that says FTX Digital Markets “has no ownership” in any of the FTX debtors’ property. The FTX debtors have often been at odds with the team of lawyers, known as joint provisional liquidators under Bahamian law, tasked with winding down its Bahamian entity since the crypto behemoth filed for bankruptcy protection in November. The Bahamian entity still controls at least hundreds of millions of dollars-worth of assets."
Florida Gov. Ron DeSantis Proposes Law to Ban CBDCs (CoinDesk)
"A legislative proposal from Florida Gov. (and possible Republican U.S. presidential candidate) Ron DeSantis would prohibit the use of a national central bank digital currency (CBDC) as money within his state. "Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance," DeSantis said in a press release. The proposed law would also prohibit in Florida the use of a CBDC issued by any overseas central bank. The governor's statement calls on other states to adopt similar legislation."
Immutable and Polygon Labs Team Up to Expand the Web3 Gaming Ecosystem (CoinDesk)
"Web3 gaming developer platform Immutable is forming a strategic partnership with blockchain protocol Polygon Labs to accelerate the development of Web3 gaming. According to a press release, Immutable will power its platform products using Polygon's zero-knowledge technology to simplify the process of onboarding game studios and developers in Web3. The alliance aims to provide an option for businesses "that accelerates time-to-market and gives them access to an ecosystem that will be one of the largest and most liquid for end users," according to the press release."
Coinbase Explores Overseas Venue as US Ramps Up Crypto Scrutiny (Bloomberg)
"Institutional clients of Coinbase Global Inc. have been contacted by the firm about plans to potentially set up a new crypto-trading platform overseas, according to three people with direct knowledge of the matter. The talks with market makers and investment firms touched on the possibility of establishing an alternative venue — away from the main Coinbase marketplace — for global clients, said the people, who asked not to be named as the discussions are confidential. The talks are occurring against the backdrop of an intensifying US crackdown on cryptocurrencies."
Binance Answers Elizabeth Warren Without Addressing Financials (Bloomberg)
"Crypto exchange Binance responded to harsh criticism and demands for answers about its business from US senators including Elizabeth Warren. In a 14-page letter seen by Bloomberg, Chief Strategy Officer Patrick Hillmann described Binance’s work to build out its compliance program and team — but he also provided scant details on the company’s finances. The response failed to provide a lot of the information lawmakers asked for in their March 1 letter that called Binance a ‘hotbed’ of illegal activity. Hillmann’s response said the company prioritizes regulatory compliance, citing “misconceptions” about the company."
One Country, Two Crypto Systems: Hong Kong Harbors Crypto Hub Ambitions Despite China’s Crackdown (CNBC)
"The crypto industry has had a rough year with digital currency markets crashing and companies collapsing across the board. In spite of the volatility, Hong Kong is pushing to become a virtual asset hub. The city’s digital asset push is in stark contrast to the Chinese mainland, where Beijing has effectively banned trading and stamped out crypto-related activities. Hong Kong is planning to introduce new rules in June that will require crypto trading platforms to be licensed by the Securities and Futures Commission. The regulator has already launched a consultation on its proposal to regulate virtual asset trading platforms."
Taiwan to Name Financial Watchdog as Main Crypto Regulatory Body (Bloomberg)
"Taiwan is set to name its top financial regulator as the main authority overseeing crypto as it steps up control over the industry following the market turmoil triggered by the collapse of the FTX crypto empire. The announcement of the Financial Supervisory Commission as the chief regulator of crypto exchanges and virtual assets could come as early as the end of this month, according a person familiar with the matter, asking not to be identified due to the private nature of the information. Taiwan’s cabinet and the FSC have been working with other government departments and talking to industry representatives to work out a concrete plan, said people with knowledge of the discussions."
Internal War Breaks Out at Defillama as ‘Rogue’ Employees Reject Token Plan (The Block)
"A pseudonymous employee of DefiLlama, 0xngmi, forked a version of the blockchain data platform after accusing the company's founders of launching a token without support. "There is an ongoing attempt to launch a token that does not represent us," 0xngmi said on Twitter, while verifying on-chain that their account had not been hacked. "We don't want to be associated with it." The DeFi platform hinted yesterday at a token airdrop on Twitter after celebrating its aggregator platform hitting $5 billion in volume. The decision to launch the token went against the wishes of most of the team, according to two DefiLlama contributors on Twitter. 0xngmi also added that the person pushing for the token was in control of the website and Twitter account."