CFTC Focuses on DeFi Platforms in Latest US Crypto Crackdown (Bloomberg)
The US Commodity Futures Trading Commission brought enforcement actions against three decentralized finance firms and signaled that more may be coming. The CFTC alleged on Thursday that the companies Opyn Inc., ZeroEx Inc. and Deridex Inc. broke the agency’s rules by illegally allowing US customers to trade digital-asset derivatives without registering. The regulator ordered the firms to cease and desist from violating CFTC rules and required them to pay civil penalties of $250,000, $200,000, and $100,000, respectively.
Southeast Asia Super-App Grab Adds Support For Web3 Services (The Block)
Grab, a ride-hailing super-app popular in Southeast Asia, has incorporated web3 services. Users can now set up a web3 wallet, win blockchain-based rewards, pay with NFTs and more. In addition, Grab partnered with the Monetary Authority of Singapore to bring NFT vouchers for popular eats and experiences in the city, according to Grab app screenshots viewed by The Block.
Winklevoss Claims Fuel US Investigation of Barry Silbert’s DCG Crypto Empire (Bloomberg)
A bitter feud between crypto tycoons has piqued the interest of US investigators who were already looking into the finances of one of the industry’s best-known empires. For months, Digital Currency Group Inc. and its chief executive officer Barry Silbert have been facing fraud accusations from Cameron Winklevoss, the co-founder of crypto trading platform Gemini Trust Co. Despite them denying the claims, federal officials are digging in as part of an ongoing review of the internal financial dealings of DCG and its Genesis Global Capital subsidiary.
Ex-FTX Executive Salame Pleads Guilty to Criminal Charges (Bloomberg)
Former FTX executive Ryan Salame pleaded guilty to criminal charges stemming from the collapse of the cryptocurrency exchange. Salame, who was the co-chief executive of FTX’s Bahamas subsidiary before the exchange imploded last November, appeared in Manhattan federal court on Thursday afternoon. Flanked by lawyers and wearing a blue suit and Bitcoin socks, Salame pleaded guilty to one campaign finance violation and one charge of operating an illegal money-transmitting business.
FBI Says North Korea-Linked Lazarus Group Was Responsible for $41 Million Theft on Stake (The Block)
The U.S. Federal Bureau of Investigation said North Korea affiliated Lazarus Group was responsible for a $41 million theft this week from crypto-based sports betting platform Stake.com. The theft took place on or about Sept. 4, the FBI said in a statement on Wednesday. "These same DPRK actors are also responsible for several other high-profile international virtual currency heists," the FBI said.
FASB Says Crypto Assets Should Be Marked at Current Values (CoinDesk)
The first U.S. accounting rule specifically for cryptocurrency will say that companies must use a fair-value approach that would demand certain digital assets be measured at what they would trade for in the markets, according to the Financial Accounting Standards Board (FASB). At a Wednesday meeting, the board evaluated comments on the change and gave staff permission to draft a final version of the new accounting standard, effective for fiscal years starting after December 15, 2024. The final language is expected to be approved in a written vote before the end of the year.
Ark Invest and 21Shares File With SEC for Spot Ether ETF (The Block)
Cathie Wood's Ark Invest and 21shares have applied with the Securities and Exchange Commission for a spot ether ETF, according to a filing dated Sept. 6. The move comes amid a flurry of excitement as the crypto industry battles it out with the regulator for the first spot crypto fund. Dubbed the the ARK 21Shares Ethereum ETF, the fund would provide direct exposure to ether and trade on the Cboe BZX Exchange using the CME CF Ether-Dollar Reference Rate – New York Variant.
$500B Korean Asset Manager Taps Polygon Labs to Develop Tokenized Securities Network (CoinDesk)
Mirae Asset Securities, South Korea's largest financial group with over $500 billion in assets under management, said Thursday that it is working with Ethereum scaling platform Polygon Labs to advance tokenization within finance and boost adoption of Web3 technologies. Polygon Labs will be a technical consultant in The Mirae Asset Security Token Working Group, which is working to create infrastructure to issue, exchange, and distribute tokenized securities, the asset manager said in the press release shared with CoinDesk.
Genesis Global Capital Sues Digital Currency Group Over Unpaid Bitcoin Loans (The Block)
Genesis Global Capital is suing Digital Currency Group over several unpaid loans due in May that add up to hundreds of millions of dollars. DCG and Genesis entered into a "master loan agreement" in 2019, lawyers for Genesis said on Wednesday, according to a filing under the U.S. Bankruptcy Court in the Southern District of New York. According to the documents, Genesis said it loaned over 18,000 bitcoin to DCG in 2022 and later that year converted the debt into a a fixed-term loan with a maturity date of May 11.
Vitalik Buterin Co-authors Paper on Regulation-Friendly Tornado Cash Alternative (The Block)
Ethereum co-founder Vitalik Buterin co-authored a research paper focused on a privacy protocol called Privacy Pools with core developer Ameen Soleimani, researcher Jacob Illum from analytics firm Chainalysis, and academics Matthias Nadler and Fabian Schar. With what could be a potential alternative to the troubled Tornado Cash, they posit that financial privacy can co-exist with regulation.
Visa Taps Solana and USDC Stablecoin to Boost Cross-Border Payments (CoinDesk)
Visa (V) is diving deeper into crypto to boost the speed of cross-border payment transactions. The San Francisco-based firm has expanded its stablecoin settlement capabilities with Circle’s USDC stablecoin to the Solana (SOL) blockchain, designed to offer high-speed performance, Visa said in a statement Tuesday. Visa said it’s one of the first major financial institutions to use the Solana network at scale for settlements.
Coinbase Begins Offering Crypto Loans to Large US Institutional Investors (Bloomberg)
Coinbase Global Inc. has started a crypto lending service for US institutional investors, seeking to capitalize on the vacuum left after the collapse of firms such as BlockFi Inc. and Genesis Global Holdco. Customers of the largest US crypto exchange’s Prime service have already invested $57 million in the lending program, according to a recent filing with the US Securities and Exchange Commission. Coinbase Prime is a full-service prime brokerage platform that lets institutions execute trades and custody assets.
Crypto-Focused Haun Ventures Hires Private-Equity Veteran (WSJ)
Crypto-focused venture-capital firm Haun Ventures has hired a private-equity veteran to handle investor relations for the young firm, highlighting how firms are seeking to communicate with their investors about the shifting crypto landscape. Haun Ventures said it hired Suzanne Kim as a partner. Kim previously worked in private equity for 15 years, most recently as a managing director at San Francisco-based Hellman & Friedman. Before that, she was a vice president at TPG Capital.
Metamask Adds ‘Cash Out’ Function Allowing Users to Sell Crypto for Fiat (The Block)
The world's most popular hot wallet MetaMask announced that its clients can now convert crypto into fiat and have the money sent to their bank account. The company took to X (formerly Twitter) to make the announcement. MetaMask is the most installed crypto wallet, according to a recent report. "‘Sell’ enables you to convert your crypto to fiat, sending the funds to your bank account," the company posted.
Genesis to Shutter Crypto Trading Desk for U.S. Market (CoinDesk)
Genesis’ U.S.-focused spot crypto trading business will shut down later this month, a move that may affect Genesis' restructuring process, an email sent to clients Tuesday shows. Genesis Global Trading (GGT) will close its over-the-counter trading platform on Sept. 18. All trades must be settled by Sept. 21 and all remaining open accounts will be closed end of day on the 30th. “The decision was made voluntarily and for business reasons,” the email said.
Crypto Casino Stake Targeted in Reported $40M Exploit (CoinDesk)
Cryptocurrency casino Stake appears to have been targeted by a exploit, with on-chain analyst Cyvers reporting that $16 million has been withdrawn on the Ethereum network following a "private key leak." Blockchain sleuth ZachXBT backed up Cyvers' claim, stating that $15.7 million had been drained on Ethereum and another $25.6 million had been lost across Polygon and the Binance Smart Chain.
One Corner of Crypto Is Back Near a Record High After a $15 Billion Surge (Bloomberg)
One corner of crypto has shaken off a prolonged digital-asset slump to come within touching distance of an all-time high. The sector is liquid staking, which offers easier access to the rewards earned when tokens are pledged to help operate blockchains. DefiLlama data shows that the value of assets locked in liquid staking services has jumped 292% to $20 billion from a June 2022 low, when crypto was reeling from a crisis.
MakerDAO Announces Final Phase of ‘Endgame,’ Highlights Solana Codebase (The Block)
MakerDAO has devised the final phase of its multistep "Endgame" plan designed to create a series of independent subDAOs that live within the larger ecosystem. In a post from MakerDAO co-founder Rune Christensen, the executive said the organization had decided the final phase of "Endgame" will be the "complete reimplementation of the entire Maker Protocol built natively on a new, stand-alone blockchain," called NewChain.
LSE Group Plans to Offer Blockchain-Powered Market for Traditional Assets (CoinDesk)
The London Stock Exchange Group (LSEG.L), one of the oldest stock exchanges in the world, has drawn up plans to offer blockchain-based trading of traditional financial assets, the Financial Times reported Monday. The company has reached an “inflection point,” having examined the potential for bringing traditional markets to blockchain rails for nearly a year and has now decided to take plans forward, LSE Group's Head of Capital Markets Murray Ross told FT.
Binance's Head of Product Departs as Executive Exodus Gathers Steam (CoinDesk)
Binance has seen another senior executive depart the company, with Global Product Lead Mayur Kamat heading for the door after almost a year and a half at the cryptocurrency exchange. "We can confirm that Mayur has stepped down from his role as product lead," a spokesperson said in an emailed statement. "We are grateful to him for helping guide Binance through some of our most explosive growth and we wish him the very best."