Aave Companies Rebrands to Avara and Acquires Crypto Wallet Family to Expand Its WEB3 Reach (TechCrunch)
Web3-focused software technology company Aave Companies is rebranding to Avara, its founder Stani Kulechov told TechCrunch exclusively. The crypto parent entity is best known for supporting Aave Labs, Aave Protocol, its native stablecoin GHO and decentralized social network protocol Lens, among others. About $8.66 billion of liquidity is locked in Aave across eight networks and over 15 markets like Ethereum, Avalanche, Optimism, Polygon and Base, according to its website.
Global Standards Setter for Securities Regulation Publishes Crypto Markets Policy Recommendations (CoinDesk)
The International Organization of Securities Commissions, the global standards setter for securities markets regulation, denied crypto industry requests for a bespoke regime for stablecoins while agreeing to demands for greater accountability from so-called financial influencers. The recommendations for regulating crypto, published Friday after a consultation period that started in May, are meant to help establish a coordinated global regulatory response to the risks posed by crypto asset service providers (CASPs) among the group's members. Those risks include market abuse, conflict of interest, client asset protection and disclosures, it said at the start of the process.
CoinShares Obtains Right to Purchase Valkyrie’s ETF Arm in Bid to Further US Expansion (The Block)
The UK-based digital asset investment firm CoinShares obtained the exclusive option to buy certain assets from the alternative asset management firm Valkyrie Investments. CoinShares has the right to buy Valkyrie Funds, an investment advisory business focusing on crypto exchange-traded funds (ETFs), as well Valkyrie Investments's rights regarding the Valkyrie Bitcoin Fund and unlaunched ETFs, according to a release from CoinShares Group. CoinShares has until March 31, 2024 to buy Valkyrie Funds from Valkyrie Investments.
255M Pyth Tokens to Be Airdropped to 90K Wallets Next Week (CoinDesk)
Decentralized finance (DeFi) users will receive an airdrop from pricing oracles network Pyth next week with 255 million tokens set to be issued to 90,000 wallets. Pyth network competes with the likes of Chainlink. It will work by gathering first-party pricing data from exchanges, trading firms and institutions before relaying that data to smart contracts or clients. The network's native token PYTH will initially have a circulating supply of 1.5 billion, with 85% of the total supply being locked between six and 42 months.
Biggest Stablecoin Issuer Tether Now Wants to Become a Major Bitcoin Miner (Bloomberg)
Tether Holdings Ltd. is taking steps to become one of the world’s top Bitcoin miners, as the $87 billion stablecoin operator makes a hefty investment in the already highly competitive sector. The company plans to spend about half a billion dollars over the next six months, its incoming chief executive Paolo Ardoino said in an interview, both through constructing its own mining facilities and by taking stakes in other companies.
New York Financial Watchdog Releases Guidance to Strengthen Crypto Listing, Delisting (The Block)
New York’s financial watchdog has started to take a more active role in supervising token listing and delisting on exchanges as it seeks to bolster oversight of crypto firms. The New York State Department of Financial Services on Wednesday published guidance on the listing of cryptocurrencies — rules that take effect immediately. Crypto firms are required to get their coin-listing policy approved by the regulator before they can list a coin, the regulator said. The release of the latest guidance comes after NYDFS issued the draft for public comment in September.
Binance, Thai Billionaire to Start Crypto Exchange Next Year (Bloomberg)
A joint venture between Binance Holdings Ltd. and Gulf Energy Development Pcl plans to roll out a crypto exchange in Thailand next year after winning licenses from the nation’s regulator. Gulf Binance Co. obtained approval from the Thai Securities and Exchange Commission on Nov. 10 to commence operations, according to a stock exchange filing late Wednesday.
Singapore Vies With Asian Peers for Slice of $127 Billion Stablecoin Sector (Bloomberg)
Singapore awarded a batch of in-principle license approvals to stablecoin issuers, intensifying the competition among Asian financial hubs for a slice of a key crypto segment with a market value of $127 billion. The approvals for Paxos Digital Singapore Pte and StraitsX open up a pathway for issuing such tokens under regulatory oversight. Stablecoins are typically pegged 1-1 to major currencies and backed by reserves like cash and bonds.
Tether and Bitfinex Avoid Facing Appeal in Class Action, Tether Claims (The Block)
The class-action lawsuit filed against Tether and Bitfinex ran its course once and for all after the plaintiff decided against appealing a recent ruling, according to a statement published by the stablecoin issuer. "Following the order ... of the U.S. District Court for the Southern District of New York denying Shawn Dolifka’s motion for leave to amend his meritless class action complaint filed against Tether and Bitfinex companies, Dolifka elected not to appeal the decision," Tether said in its statement. "[The judge's] dismissal of the lawsuit and judgment in favor of the Tether and Bitfinex companies is now final in all respects.
House Financial Services Panel at Odds on Crypto's Part in Financing Terrorism (The Block)
Lawmakers and experts tried to get to the bottom of how often crypto is used in illicit finance, but seem no closer on Wednesday as they work on legislation to rein in the industry. The goal is to "debunk some of the myths," said Rep. French Hill, R-Ark., on Wednesday, in his opening remarks in front of the House Financial Services Committee's panel on digital assets. "At the end of the day, bad actors will continue to use any means possible to conduct their illicit activity," Hill said. "But phones and the internet aren’t to be blamed for terrorist financing and crypto shouldn’t either."
JPMorgan, Apollo Tokenize Funds in 'Proof of Concept' With Axelar, Oasis, Provenance (CoinDesk)
Traditional-finance giants JPMorgan and Apollo successfully worked with a handful of blockchain firms to demonstrate "proof of concept" for how asset managers could tokenize funds on the blockchain of their choice, according to a press release. JPMorgan’s Onyx Digital Assets collaborated with interoperability layer Axelar, infrastructure provider Oasis Pro and Provenance Blockchain to manage large-scale client portfolios, execute trades and enable automated portfolio management of tokenized assets, according to the release.
Crypto Exchange Blockchain.com Raises $110 Million at a Fraction of Prior Valuation (Bloomberg)
Blockchain.com, which operates a cryptocurrency exchange and wallet service, closed a $110 million round of funding led by UK-based Kingsway Capital, the latest sign that crypto-focused venture-capital investments are picking up amid this year’s rebound in digital-asset prices. The equity round also included investments from the likes of Baillie Gifford, Lakestar, Lightspeed Venture Partners, Coinbase Ventures and others. Blockchain.com is adding two new board members from Kingsway and Lakestar.
Standard Chartered Unit Launches Tokenization Platform Libeara (The Block)
SC Ventures, the investment and innovation arm of the Standard Chartered bank, has launched a tokenization platform called Libeara. Libeara has been incubated as a separate company based out of Singapore, SC Ventures said Tuesday. It previously conducted proof-of-concept projects as a finalist in the Monetary Authority of Singapore's Global Retail CBDC Challenge and as the team behind digital platform prototypes used by the Hong Kong government, Ghana and the Philippines.
Singapore Draws Tough Lessons from Crypto as It Aims to ‘Play Long Game’ on AI, Mas Official Says (The Block)
Regulators in Singapore plan to “play a long game” on artificial intelligence development as they draw tough lessons from trouble involving local crypto firms, a central bank official said. In an interview with Bloomberg, Sopnendu Mohanty, chief fintech officer of the Monetary Authority of Singapore, said that the authority wants to “ensure whatever AI we adopt or we promote, it stays for a long period of time.” “We have learned a lot of lessons in the whole DLT/digital currency space,” Mohanty added. “If you rush yourself very fast, you may see bad actors coming very quickly.”
Cryptocurrency Exchange OKX Coming Out With Layer 2 ‘X1’ Built on Polygon Technology (CoinDesk)
OKX, the sixth largest cryptocurrency exchange, announced that it is coming out with a layer 2 network called “X1” using Polygon’s Chain Development Kit (CDK). X1, expected to go live in the first quarter of 2024, will make use of Polygon's zero-knowledge technology, a type of cryptography that's become one of 2023's hottest trends in blockchain. The announcement comes just as other major cryptocurrency exchanges have released or are pursuing their own layer 2 networks. Earlier this year, Coinbase rolled out its “Base” blockchain using Optimism’s OP Stack. Kraken is also reportedly looking into creating a layer 2 blockchain.
Cboe Is Launching Margined Bitcoin and Ether Futures in January (The Block)
Cboe is planning to launch margin futures for bitcoin and ether in January. "With this launch, Cboe Digital will become the first U.S. regulated crypto native combined exchange and clearinghouse to enable both spot and leveraged derivatives trading on a single platform," the company announced Monday. Cboe is also planning to expand its crypto derivatives suite and add "physically delivered products at a later date, subject to regulatory approvals," the press release said. Cboe is already providing trading in spot futures for bitcoin, bitcoin cash, ether, litecoin and USDC.
Crypto Industry Protests Against Treasury’s Proposed Tax Reporting Regulation (The Block)
The crypto industry is staunchly fighting back against proposed regulation that would expand who would have to report certain cryptocurrency transactions with some calling it an impediment on decentralized finance citing constitutional concerns. The Treasury, alongside the Internal Revenue Service, released a set of proposed regulations in August that would require crypto brokers to be treated similarly to brokers for more traditional investments like stocks and bonds. Since then, over 124,000 letters have flooded in — with 2,000 being filed in just the past two days. Some argue that the proposed rules stretch the definition of a broker too far.
Andreessen-Backed Blockchain Startup Hires Former YouTube Gaming Head (Bloomberg)
Optimism, an Andreessen Horowitz-backed blockchain startup, has snagged Ryan Wyatt, a former head of gaming at YouTube, as its chief growth officer. Wyatt — who has a long history in e-sports including his eight years at YouTube as its global head of gaming — most recently left another blockchain project, Polygon Labs, in July. He will lead an Optimism team focused on the startup’s efforts to grow its business through partnerships and marketing.
South Korea’s Bithumb Eyes IPO in Second Half of 2025 (The Block)
South Korean cryptocurrency exchange Bithumb is starting to plan for an initial public offering in Korea, according to a local media report. Edaily reported on Sunday that Bithumb chose Samsung Securities as its underwriter last month for a potential IPO planned in the second half of 2025 on Kosdaq. The local media outlet also reported, citing a source familiar with the matter, that the company’s former chair, Lee Jeong-hoon, has returned to the company as a registered director on its board. Lee was accused in October 2018 of fraud related to the crypto exchange’s acquisition but was found not guilty earlier this year.
Crypto.com Wins Digital Asset License in Dubai (CoinDesk)
Crypto.com has been granted a license to operate specified virtual asset service activities in Dubai, the crypto exchange announced on Tuesday. The license has been granted to its Dubai entity, CRO DAX Middle East FZE, which received a minimal viable product (MVP) preparatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA) in March. Receiving a full license involves three stages: a provisional permit, a preparatory license and an operating license. Crypto.com is now in the third stage of the process, but the company will need to satisfy localization requirements and conditions to commence operations.
Michael Saylor’s Massive Bitcoin Bet Crosses $1B in Unrealized Profit (CoinDesk)
The surging price of bitcoin (BTC) has pushed the asset’s largest public holder, business software company MicroStrategy (MSTR), to unrealized gains of over $1.1 billion, 25% more than their cumulative investment. Bitcoin holdings at the company founded by Executive Chairman Michael Saylor, who often tweets his support for the largest cryptocurrency, reached $5.7 billion late on Thursday as the price crossed $37,000 for the first time since May 2022.
Key Witness at Sam Bankman-Fried Trial to Launch New Crypto Exchange (WSJ)
A group of former FTX executives, including one who served as a key witness against Sam Bankman-Fried, are teaming up to build a new cryptocurrency exchange that aims to solve the problems that doomed their previous employer. Trek Labs, a Dubai-based startup led by the former FTX general counsel Can Sun, received a license from the emirate’s crypto regulator last month. Another ex-FTX employee, Armani Ferrante, is chief executive of Trek’s holding company in the British Virgin Islands and also runs a partner firm, called Backpack, that designs and operates digital currency wallets. Sun’s former legal deputy, who is also Ferrante’s wife, sits on Trek’s executive team, too. The venture is looking to sell a 10% stake to investors at a valuation of over $100 million.
FTX Sues Bybit to Claw Back Nearly $1 Billion; Alleges ‘Fraudulent Scheme' (The Block)
The FTX bankruptcy estate, led by CEO John J. Ray III, has sued the exchange ByBit, its investment arm Mirana, and several of its executives, seeking to claw back cash and digital assets ByBit withdrew from FTX on the eve of its collapse, now worth nearly $1 billion. The lawsuit alleges that ByBit leveraged its "VIP" access to FTX, as well as its close relationship with FTX staff, in order to withdraw hundreds of millions in cash and digital assets from the accounts of Mirana, Time Research (another ByBit-affiliated entity), and several senior executives on the eve of FTX's collapse.
Crypto Lender Hodlnaut to Be Liquidated, Court Filing Shows (CoinDesk)
Singapore-based cryptocurrency lender Hodlnaut will be liquidated, according to the company’s former interim judicial managers, Aaron Lee and Angela Ee. A winding-up order was filed on Nov. 10 with the High Court of Singapore. Liquidators will continue to provide updates to the exchange's creditors, of which there are more than 17,000. Hodlnaut applied for creditor protection last August after suffering around $189 million in losses due to the Terra ecosystem exposure, which collapsed in May 2022.
Justin Sun’s Crypto Exchange Poloniex Seemingly Hit by Hack for Over $100 Million (The Block)
Centralized crypto exchange Poloniex appears to have suffered a security hack on one of its wallets, tagged as Poloniex 4 on Etherscan. Suspicious outflows from the apparent hot wallet indicate the incident affected a large sum of its funds, although the exchange has yet to confirm the amount. Initial analysis of the addresses receiving the outflows suggests that over $100 million in crypto assets were taken, according to analyst firms PeckShield and Arkham Intelligence.