Bitcoin Is Recoupling With Tech Stocks to the Delight of Crypto Devotees (Bloomberg)
What’s good for equity investors appears to be beneficial again for cryptocurrency enthusiasts, with Bitcoin rebuilding its correlation with technology stocks. After a breakdown in the directional relationship between the two asset classes in June, the largest digital currency is back to mirroring the price moves of surging Nasdaq 100 Index.
Financial Giant Deutsche Bank Eyes Crypto Custody, Tokenization (Blockworks)
Another traditional finance giant is wading into the crypto space. Deutsche Bank is set to establish digital asset custody and tokenization services via a new partnership with Switzerland-based Taurus — a firm that offers infrastructure to issue, custody and trade crypto, tokenized assets and NFTs. “The market has evolved to an extent where we see partnership opportunities key to developing the products and services that our clients are demanding,” Paul Maley, head of Deutsche Bank’s securities services, told Blockworks in an email.
Bitcoin Energy Use Up But Carbon Emissions Drop, Bloomberg Crypto Analyst Reveals (CryptoSlate)
Bloomberg crypto market analyst Jamie Coutts stated that carbon emissions have declined despite an increase in Bitcoin energy usage. Over the last few years, the Bitcoin hash rate – the computational power dedicated to Bitcoin mining – has quadrupled. Surprisingly, this substantial increase has only resulted in a slight 6.9% rise in carbon emissions.
Genesis Has Ceased All Crypto Trading Services: Spokesperson (CoinDesk)
Genesis, the crypto-trading business walloped by last year’s collapse of Three Arrows Capital and FTX, has ceased all trading operations, according to a spokesperson. It emerged last week that the company was shutting its U.S. desk, but the international spot and derivatives trading operations are also closing, the spokesperson said. “Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI),” the statement reads. “This decision was made voluntarily and for business reasons. With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities.”
Binance.US Legal, Risk Executives Leave the Crypto Exchange (WSJ)
Key risk and legal executives are leaving Binance.US at the same time the crypto exchange is under intense pressure from regulators. Krishna Juvvadi, head of legal, and Sidney Majalya, chief risk officer, are leaving the company, according to people familiar with the departures. The departures follow the departure earlier this week of CEO Brian Shroder.
Top Democrat Tells SEC, CFTC to Bolster Crypto Transparency With Current Authority (The Block)
Senate Banking Committee Chair Sherrod Brown, D-Ohio, who holds the purse strings for the future of crypto legislation, told federal agencies to use their current authority to go after bad actors in the industry. Brown urged Treasury Secretary Janet Yellen, Securities and Exchange Commission Chair Gary Gensler and Commodity Futures Trading Commission Chair Rostin Behnam to bolster transparency in crypto markets to help protect consumers.
Polygon Releases Proposals on 2.0 Upgrade and POL Token Migration (The Block)
The Ethereum scaling project, Polygon, has officially proposed changes for its upcoming Polygon 2.0 upgrade. Initially introduced in June, Polygon 2.0 aims to establish a comprehensive network of interconnected Layer 2 chains, driven by zero-knowledge proofs. Today, Polygon Labs released three Polygon Improvement Proposals (PIPs) that detail the outline of the transition, specifications for the upgraded Polygon 2.0 architecture and updates to its native token.
Mila Kunis and Ashton Kutcher’s ‘Stoner Cats’ NFTs get smoked by the SEC (TechCrunch)
It’s been a disastrous week for Mila Kunis and Ashton Kutcher, and it’s only Wednesday. The SEC has charged the Hollywood power couple’s NFT-based web series, “Stoner Cats,” calling the NFTs unregistered securities. Per the SEC, “Stoner Cats is an adult animated television show about house cats that become sentient after being exposed to their owner’s medical marijuana.” By buying one of 10,000 NFTs worth around $800 each, fans could get exclusive access to the six-episode animated series, which features celebrities like Jane Fonda, Chris Rock and Seth MacFarlane. Even Ethereum co-founder Vitalik Buterin was in the show.
Coinbase’s Armstrong Wants DeFi to Take CFTC to Court (The Block)
Coinbase CEO Brian Armstrong chimed in on recent enforcement actions brought by the Commodity Futures Trading Commission against several operators of decentralized finance protocols, saying he hoped they take the regulator to court. "The CFTC should not be creating enforcement actions against decentralized (DeFi) protocols," he wrote on X. "These are not financial service businesses, and it’s highly unlikely the Commodity Exchange Act even applies to them."
Pantera Eyes Mid-Stage Crypto Firms After Valuations Sink (Bloomberg)
Pantera Capital is more open to venture capital opportunities at mid-stage companies in the crypto sector, which is suffering from a slump in global funding levels as artificial intelligence startups take the spotlight. The greater willingness to evaluate mid-stage crypto businesses is ‘probably the bigger change in our strategy,’ San Francisco-based Pantera’s Managing Partner Paul Veradittakit said in an interview in Singapore. The digital-asset industry is gathering in the city-state for a conference.
Binance.us Won’t Be Able to Grow Until CZ Sells Stake or Resolves Regulatory Issues: Sources (The Block)
Binance.US's options to grow are limited so long as Binance co-founder Changpeng "CZ" Zhao has a formal connection to the business, according to sources familiar with a company all-hands this week. The U.S. arm, which saw its president and CEO Brian Shroder exit the firm yesterday, has scaled back its operations and staff in the wake of the Securities and Exchange Commission's lawsuit against Binance and its allegations that Zhao can "divert customer assets" as he pleases. Binance said at the time of the suit that it would defend its platform "vigorously."
Judge Allows Bankrupt FTX to Sell Its Crypto Holdings, Including BTC and SOL (CoinDesk)
Crypto exchange FTX can sell and invest its crypto holdings to pay back creditors, a judge in the U.S. Bankruptcy Court for the District of Delaware ruled Wednesday. In a court hearing, Judge John Dorsey said that he approved the motion and overruled two objections that were made opposing the plan. This allows the bankrupt exchange to sell, stake and hedge its crypto holdings, which it said are worth over $3.4 billion.
Crypto Exchange Huobi Rebrands to HTX for Tenth Anniversary (The Block)
Crypto exchange Huobi has rebranded to HTX in celebration of its tenth anniversary — a change that gives the offshore trading platform a name that bears an uncanny resemblance to bankrupt firm FTX. The exchange has already changed its branding on its social media accounts and has altered several product lines to match the new branding, such as HTX Earn.
Binance US CEO Departs as Crypto Platform Cuts Third of Staff (Bloomberg)
Binance.US Chief Executive Officer Brian Shroder has left the crypto trading platform and been replaced on an interim basis by Chief Legal Officer Norman Reed, according to a company spokesperson. The departure comes as the company controlled by embattled digital entrepreneur Changpeng 'CZ' Zhao is eliminating about one third of its workforce, or more than 100 positions, as a regulatory crackdown erodes its business. The exchange, which is formally called BAM Trading Services Inc., was started in 2019 for US users, who are prohibited from using Binance Holdings.
Franklin Templeton Joins Spot Bitcoin ETF Race (CoinDesk)
Franklin Templeton filed for a spot bitcoin exchange-traded fund (ETF) Tuesday, becoming the latest traditional asset management firm to join the crowded race. In a filing with the U.S. Securities and Exchange Commission, Franklin Templeton proposed a Coinbase-custodied ETF that would trade on Cboe BZX Exchange, Inc. It has not yet proposed a ticker for the product.
Crypto VC Electric Capital Aims to Raise $300 Million for New Fund (The Block)
Electric Capital has a new venture fund on the books. The web3 VC firm is aiming to raise $300 million for a fund, according to a filing with the Securities and Exchange Commission. Dubbed the Electric Capital Venture Fund III, the fund will offer pooled investment fund interests as a type of security.
Crypto Exchange Bullish Among Bidders for Bankrupt FTX (The Block)
Crypto exchange Bullish is among the several parties making a bid for defunct trading platform FTX, according to sources familiar with the situation. FTX Group, which filed for bankruptcy protection in November, is in the process of due diligence and information sharing with a number of parties to negotiate an "acquisition, merger, recapitalization or other transaction" to relaunch the firm, according to a presentation filed in a Delaware court.
Crypto Firm Ripple Says Over 80% of Hiring This Year Outside US (Bloomberg)
Ripple Labs Inc. said more than 80% of its hiring this year will be outside the US, where the crypto payments company is embroiled in a long-running legal dispute with the Securities and Exchange Commission. In jurisdictions such as Singapore, Hong Kong, the UK and Dubai, “governments are partnering with the industry and you’re seeing leadership, they’re providing clear rules and you’re seeing growth,” Ripple’s Chief Executive Officer Brad Garlinghouse said in a Bloomberg Television interview on Wednesday.
FTX 2.0: Bankman-Fried’s Former Crypto Exchange Outlines Plan for Potential Reboot (Bloomberg)
A plan to reboot a new version of defunct crypto exchange FTX Group may emerge as soon as next year, potentially injecting a jolt of activity back into a market that’s been largely subdued since the platform’s collapse. More than 75 bidders have been contacted by the FTX estate since May to gauge industry interest in backing a relaunch of the exchange, according to a presentation filed in a Delaware court. Several parties have submitted bids that are now undergoing due diligence and information sharing, managers of the estate said, with a deadline for any new bids set for Sept. 24.
Ripple Made Fortress Customers Hit by Security Incident Whole as Part of Acquisition (The Block)
Crypto payments business Ripple covered losses suffered by customers of blockchain infrastructure startup Fortress Trust, as part of a deal to acquire it. Fortress said in a statement issued on X, formerly known as Twitter, on September 7 that its customers had been affected by a “third-party vendor whose cloud tools were compromised,” but that there had been no loss of funds. It was Ripple, in fact, that stepped in to make Fortress’s customers whole as part of an acquisition process that picked up pace following the incident.
Crypto Exchange Bitget Establishes $100M Pot to Fund Ecosystem Growth (CoinDesk)
Crypto trading platform Bitget has established a $100 million pot to fund growth of its ecosystem through investing in exchanges, data analytics firms and media organizations. The Seychelles-based company said it wants to "broaden its business horizons" through creating a trading ecosystem that incorporates investment, research, decentralized finance (DeFi), media and other functions, according to emailed announcement.
FTX Assets Include $1.2 Billion of SOL, Bahamas Property (The Block)
Bankrupt cryptocurrency exchange FTX's assets of around $7 billion include roughly $1.2 billion parked in SOL tokens, according to a court filing. The filing, prepared for a creditor meeting on Sept. 11, also lists FTX as the owner of 38 properties in the Bahamas appraised at $199 million. The company had been based in the Bahamas while being incorporated in Antigua and Barbuda. To date, nearly $2.6 billion in cash has been secured since FTX filed for bankruptcy in November of last year and liquidation of its assets began, the filing also shows.
PayPal Rolls Out Crypto-For-USD Conversion Service (The Block)
Silicon Valley payments firm PayPal is adding more crypto-related services as its digital asset portfolio continues to grow. After previously unveiling an "on ramp" service that allows customers to buy crypto, PayPal is launching an "off ramp" service so users can seamlessly convert digital currency into dollars. "By adding Off Ramps, crypto wallet users in the U.S. can convert their crypto to USD directly from their wallets into their PayPal balance so they can shop, send, save, or transfer to their bank or debit card," the company said in a statement.
Vitalik Buterin’s X Account Hacked to Carry Out Phishing Attack That Stole $700,000 in Crypto, NFTs (The Block)
Last night, Ethereum co-founder Vitalik Buterin’s X (formerly Twitter) account was taken over and used to steal $700,000 in crypto and NFTs. When the account was taken over, it was used to advertise a fake commemorative NFT mint that supposedly had a time limit, encouraging users to mint them quickly. Yet the link was to a phishing website that would drain cryptocurrencies and NFTs from wallets that interacted with it.
Ripple Acquires Crypto-Focused Chartered Trust Company Fortress Trust (CoinDesk)
Blockchain firm Ripple has acquired Fortress Trust, a Nevada-based chartered trust company with a crypto and Web3 focus, the company said in an email on Friday. Financial terms for the acquisition were not disclosed. Ripple declined to disclose further details when contacted by CoinDesk, though a person with knowledge of the matter said the price tag was less than the $250 million it paid for custody firm Metaco in May.
SEC Snaps Back Against Ripple in Push for an Interlocutory Appeal (The Block)
The Securities and Exchange Commission snapped back against Ripple’s assertion that a New York court should not allow the agency to appeal part of a high profile ruling. The agency first filed a motion with the U.S. District Court in the Southern District of New York, asking it to certify for interlocutory appeal last month. The SEC argued on Friday that the interlocutory appeal would result in just one trial and wouldn't prolong the process.
FTX Probing If Millions in Payments to Shaq, Naomi Osaka Can Be Reversed (Bloomberg)
FTX Group advisers have scrutinized whether they can claw back millions of dollars paid to Shaquille O’Neal, tennis star Naomi Osaka and other professional athletes and teams that promoted Sam Bankman-Fried’s crypto platform before its collapse. Financial advisers hired by FTX disclosed in court papers that they’ve analyzed if certain payments dished out to athletes before the company unraveled last November can be recovered in Chapter 11. Advisers have reviewed payments to O’Neal, Osaka and others to determine if the transfers are subject to rules that permit companies to reverse transactions that occurred just before a Chapter 11 filing, according to court documents.
Consensys-Owned Infura Plans to Start Decentralizing by End of 2023 (The Block)
Infura, a blockchain infrastructure service provider owned by Consensys, plans to release a decentralized version of its service by the end of 2023 that will be operated by multiple entities to make it resilient to outages. The decentralization effort is planned to take place in various phases, the firm told The Block. The governance model for the decentralized Infura — either a DAO or a foundation — has not yet been determined.