Coinbase Waives Fees for Converting Between USDC and Fiat (CoinDesk)
"Publicly traded crypto exchange Coinbase (COIN) will waive commission fees for USD coin (USDC) sales and purchases made in any fiat currency in a push to promote the wider global adoption of its stablecoin, it said in a blog post Thursday. The company's policy change is effective immediately. “Users usually have to pay fees in the process of converting their local currency into USDC, and this is a barrier to broader international adoption,” the post read. “The way to correct this, and accelerate adoption of USDC internationally, is by establishing global parity for all users.”"
Genesis Chief Risk Officer Leaves Crypto Firm After Three Months (Bloomberg)
"Michael Patchen has left his role as chief risk officer at crypto-broker Genesis after three months, according to a person familiar with the matter. Genesis, a unit of Barry Silbert’s Digital Currency Group, didn’t return several requests for comment. Patchen didn’t return a call for comment. Patchen’s exit follows a recent wave of departures at the New York-based lender. Bloomberg News reported last month that multiple senior executives at Genesis had left as part of a leadership shuffle in the aftermath of its exposure to bankrupt hedge fund Three Arrows Capital as well as a broad market downturn."
Former FBI Agent Joins Binance.US To Lead Investigations (The Block)
"Binance.US has hired a new head of investigations from the FBI's cybercrime team. BJ Kang leaves the FBI for the crypto exchange after two decades with the federal investigation authority, where he most recently worked on the Washington field office's cyber crime squad. “Binance.US operates with a compliance-first mindset, and over the past year we have made significant investments in our legal, regulatory, and compliance operations,” CEO Brian Shroder said in a statement."
Crypto Gaming Token AXS Under Pressure as $215M Unlock Looms for Axie (CoinDesk)
"Axie Infinity, which experienced a meteoric rise in popularity last year as one of the first crypto-focused computer games, could face significant selling pressure as $215 million worth of the project’s AXS tokens are unlocked in the coming days. Players earn Axie’s in-game cryptocurrencies and non-fungible tokens, which they can sell, trade or use to level up their characters. Some 21.5 million tokens, almost 8% of the total supply, will be freed up when the vesting period expires Oct. 24, according to data site TokenUnlocks. Aleksander Larsen, chief operating officer of Axie developer Sky Mavis, told CoinDesk the unlock schedule is based on transaction block numbers, which he projected to take place on Oct 26."
Ethereum Staking Rewards Rise With Leveraged Stakers Seeing 11% APR (The Block)
"Ethereum staking rewards have risen in the last few weeks, with validators receiving larger transaction fees as a result of increased network activity. As an example, the seven-day moving average for annualized staking rewards on stETH, a liquid staking token backed by ether, has climbed to 5.5%, as noted by DeFi researcher Mika Honkasalo on Twitter. This is up from just 3.5% in September, according to data from Lido Finance. For those leveraging their staking rewards, through offerings such as icETH or ETHMAXI, APRs have shot up as high as 11%. This is where the tokens are used to borrow more tokens and all of them are staked, increasing the yield."
SBF Posts Regulatory ‘Manual’ for Crypto and FTX, Cautions Against ‘Locking In’ DeFi Policy (The Block)
"FTX founder and CEO Sam Bankman-Fried — commonly known in the crypto industry as "SBF" — cautioned policymakers from "locking in" decisions that could impact decentralized finance. The DeFi commentary appears in a 3,800-word "industry norms manual" published on Wednesday afternoon. Bankman-Fried's post came a day after a report by The Block that lawmakers were considering changes to bill authored by Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark., and amidst sharp criticism of that bill, which Bankman-Fried supports, by DeFi advocates. The company also faces legal scrutiny from regulators over how effectively it is following financial laws, including an investigation by Texas regulators that could affect FTX's proposed purchase of bankrupt crypto lender Voyager's assets."
Fidelity’s Crypto Platform to Add Ether Trading for Institutional Clients (CoinDesk)
"Institutional clients of Fidelity Digital Assets will be able to trade ether (ETH) beginning Oct. 28, according to a memo sent out by the investment firm. The move is the latest step towards making crypto available to institutional clients by Fidelity, the parent company of Fidelity Digital Assets. Earlier this month, the giant asset management firm said it started a new Ethereum Index Fund for accredited investors, after raising about $5 million since sales started on Sept. 26."
Binance Now Second-Largest Entity by Voting Power in Uniswap DAO (The Block)
"Crypto exchange Binance has made a move toward taking part in the governance process of the decentralized exchange Uniswap, making it the second-largest entity by voting power in the Uniswap DAO. Binance delegated 13.2 million UNI tokens on Oct. 18 to its own wallet, meaning the exchange is now able to use those tokens to vote on governance decisions affecting the protocol within the Uniswap DAO. Binance now has 5.9% of the voting power, calculated as a percentage of tokens delegated to the exchange out of all delegated tokens. It sits behind crypto VC firm a16z, which has 6.7% of the vote."
JPMorgan Adds Crypto Policy Head After Dimon’s ‘Ponzi’ Quip (Bloomberg)
"JPMorgan Chase & Co. has hired a new head of digital assets regulatory policy, less than a month after CEO Jamie Dimon told lawmakers that cryptocurrencies are 'decentralized Ponzi schemes.' Aaron Iovine joined the company this week as executive director for digital assets regulatory policy, a newly created role, a JPMorgan spokeswoman confirmed. He was previously head of policy and regulatory for cryptocurrency lender Celsius Network Ltd., whose bankruptcy filing has roiled the digital asset market. JPMorgan is looking to build out its policy ranks in the evolving digital asset space amid increased regulatory scrutiny and a downturn in cryptocurrency values."
Paradigm Rushes to Defend Ooki DAO in Landmark CFTC Lawsuit (Decrypt)
"Web3 venture capital firm Paradigm has waded into the increasingly choppy waters of the Commodities and Futures Trading Commission’s (CFTC) unprecedented attempt to sue a DAO in federal court. Late Monday, the firm’s attorneys filed a brief in the CFTC’s ongoing lawsuit against Ooki DAO, a decentralized autonomous organization affiliated with decentralized finance company bZeroX. The CFTC recently fined bZeroX for “illegally offering leveraged and margined retail commodity transactions in digital assets,” and for failing to collect mandatory information about the customers using its services."
Effort to Reverse SEC Rejection of Bitcoin ETF Wins Broad Crypto, TradFi Support (CoinDesk)
"An attempt to overturn the U.S. Securities and Exchange Commission's rejection of a bitcoin (BTC) exchange-traded fund (ETF) has won support from a wide group of major players in crypto and traditional finance, and even ex-officials from the nation's top markets regulators. Grayscale Investments (which, like CoinDesk, is owned by Digital Currency Group) already offers the $2 billion Grayscale Bitcoin Trust (GBTC) that trades on U.S. exchanges like a stock. But it's a trust, and existing shares cannot be redeemed to help balance supply and demand, helping to explain why it has, since early last year, traded at a discount to the total value of its bitcoin holdings."
Voyager Sale Proposal Includes Settlement for Executives Over Three Arrows Capital Loan (The Block)
"New court filings in the Voyager bankruptcy proceedings show the group tasked with investigating the lead-up to the lender's demise is recommending settlements with top executives over their roles in a nearly $1 billion loan to fallen hedge fund Three Arrows Capital. The documents come as part of a purchase agreement that will go before the court Wednesday. FTX purchased the embattled lender's assets for about $1.4 billion at the close of last month, bringing the Chapter 11 bankruptcy process into its end game. The court and creditors still need to approve the sale process."
Here’s Why Silvergate Is Delaying Its Planned Stablecoin Launch (The Block)
"Crypto bank holding company Silvergate Capital no longer plans to launch its long-awaited stablecoin before the year’s end, CEO Alan Lane said during the company’s third-quarter earnings call on Tuesday. La Jolla, Calif.-based Silvergate Capital, the parent of Silvergate Bank, announced it was working on its own payments-focused stablecoin in January after acquiring related intellectual property, infrastructure and tools from blockchain payment network developer Diem Group. Diem's U.S. subsidiary first announced a partnership with Silvergate Capital in May 2021."
Decentralized Social Media Project Bluesky Unveils Latest Protocol (The Block)
"Twitter founder Jack Dorsey’s decentralized social media initiative, Bluesky, announced on Twitter that it would rename its protocol from ‘ADX’ to the Authenticated Transport (AT) Protocol and provided additional documentation on the scope of the project. As Twitter’s answer to a call for a decentralized approach to social media platform creation, AT Protocol will hinge on account portability, algorithmic choice, interoperation, and performance according to a thread posted by Bluesky. Thus far the project has an official website that remains under construction, and the company teased the release of an upcoming socially-focused Bluesky App, built on the AT Protocol, for which users may join the waitlist."
Do Kwon Says Charges ‘Politically Motivated,’ Refuses to Reveal Location (The Block)
"Terra founder Do Kwon has branded the charges from South Korean prosecutors against him as "politically motivated’ — and reiterated, once again, that he isn't on the run. ‘We are a little bit disappointed in the way that prosecutors are attempting to create new regulation through criminal court proceedings, whereas that should be within the job description of the legislature, or at the very least the financial regulators,’ he said on crypto podcast Unchained, hosted by Laura Shin, on Tuesday."
Crypto Exchange FTX US Under Investigation by Texas Regulator Over Securities Allegations (CoinDesk)
"The Texas State Securities Board is investigating FTX US over allegations it offers unregistered securities products in the U.S. through its yield-bearing service, according to a recent court filing. TSSB Director of Enforcement Joseph Rotunda made the allegation in a filing to the bankruptcy court overseeing the potential sale of Voyager Digital's assets to the FTX crypto exchange, FTX US' parent. He said FTX US may be violating state law governing the registration and sale of securities products because it is currently offering a yield-bearing product to U.S. customers."
Aptos’s Layer 1 Mainnet Has Gone Live (The Block)
"Aptos, a new Layer 1 network, has launched its mainnet. Solana developers have been frustrated on its network, and are exploring moving over to Aptos, which is one of the most anticipated Layer 1 launches. The blockchain, founded by former Meta employees, has also attracted the attention of FTX Ventures, which led a $150 million raise for Aptos in July. Aptos has had its first transactions on mainnet, although they are mostly maintenance messages by validators. User transactions are expected to begin on Oct. 18."
Visa, Mastercard Draw New Government Scrutiny Over Debit-Card Routing (WSJ)
"The Federal Trade Commission is investigating whether Visa Inc. and Mastercard Inc.’s security tokens restrict debit-card routing competition on online payments, according to people familiar with the matter. The FTC for the past few years has already been probing whether Visa and Mastercard block merchants from routing payments over other debit-card networks. The networks acknowledged an FTC probe in regulatory filings in recent years."
How Binance CEO and Aides Plotted to Dodge Regulators in U.S. And UK (Reuters)
"Now, new reporting by Reuters reveals fresh details about Binance’s strategy for keeping regulators at arm’s length and continuing disarray in its compliance programme. The reporting includes interviews with around 30 former employees, advisers and business partners and a review of thousands of company messages, emails and documents dated between 2017 and early 2022. It shows that in 2018, Zhao approved a plan by lieutenants to 'insulate' Binance from scrutiny by U.S. authorities by setting up a new American exchange. The new exchange would draw regulators’ attention away from the main platform by serving as a 'regulatory inquiry clearing house,' according to the proposal. Executives went on to set the plan in motion, company messages show."
US Regulators Probing Bankrupt Crypto Hedge Fund Three Arrows Capital (Bloomberg)
"US regulators are prying deep into the remnants of failed hedge fund Three Arrows Capital as they try to untangle the fallout of this year’s crypto crash. Three Arrows, which until recently was one of the industry’s most prominent firms, filed for bankruptcy in July after the broad sell-off in digital assets spurred in part by the collapse of the Terra blockchain. The Commodity Futures Trading Commission and the Securities and Exchange Commission are now looking into whether the money manager violated rules by misleading investors about the strength of its balance sheet and not registering with the agencies, according to two people familiar with the matter."
$114M Mango Markets Exploiter Outs Himself, Returns Most of the Money (CoinDesk)
"Avraham Eisenberg, who says he's part of a group that drained $114 million from decentralized crypto exchange Mango Markets last week, returned $67 million to the Solana-based decentralized finance (DeFi) hub on Saturday as he defended his actions – which some have called an exploit – as both legal and highly lucrative. Today's tweets from Eisenberg – who was accused this week of being the Mango exploiter after allegedly executing similar attacks in the past – mark the first time he has publicly acknowledged his role in the exploit. “I believe all of our actions were legal,” he tweeted."
CEO Armstrong Plans to Sell Part of His Coinbase Stake to Fund Science Research (The Block)
"Coinbase CEO Brian Armstrong revealed plans to reduce his stake in the U.S. exchange giant in favor of funding research endeavors in science and technology. Armstrong made this known in a Twitter thread on Friday as he stated that he will sell about 2% of his Coinbase stake. As CEO, Armstrong owns 16% of the company. According to a 2022 proxy statement by Coinbase, Armstrong’s stake amounts to almost 60% control of the firm’s voting shares."
European VCs Are Finally Launching Crypto Funds — What Took Them So Long? (The Block)
"As crypto's last bear market was drawing to a close, 1kx, a crypto fund that’s backed Matter Labs, Gnosis and Qredo, held an invite-only crypto summit as part of 2019’s Berlin Blockchain Week. 1kx founding partner Lasse Clausen extended an invitation to most of the venture capitalists he knew, aiming to school them on blockchain technology. Only one showed up. 'European VCs completely slept on blockchain,' says Clausen, 'That meant most VCs didn’t have the mandate from their limited partnership agreement to buy tokens'."
Bitcoin Fails to Produce 1 Block for Over an Hour (CoinDesk)
"It took more than an hour to mine a block of bitcoin (BTC) on Monday, leaving thousands of transactions stuck in an unconfirmed state. According to on-chain data from several block explorers, the interval between the two latest blocks mined by Foundry USA and Luxor was 85 minutes. According to Mempool, over 13,000 transactions were pending before the latest block was mined."
Company Documents Show Meta’s Flagship Metaverse Falling Short (WSJ)
"Nearly a year after Mark Zuckerberg rebranded Facebook as Meta Platforms Inc. in a bet-the-company move on the metaverse, internal documents show the transition grappling with glitchy technology, uninterested users and a lack of clarity about what it will take to succeed. While Mr. Zuckerberg has said the transition to a more immersive online experience will take years, the company’s flagship metaverse offering for consumers, Horizon Worlds, is falling short of internal performance expectations."