GameStop has announced that effective February 2, its non-fungible token (NFT) marketplace will be shut down, and users will no longer be able to buy, sell, or create NFTs using the platform.

2021 was a wild year for GameStop as it became one of the most popular meme stocks in the world and announced its foray into NFTs. However, the GameStop NFT marketplace shutdown is coming just 18 months after its launch in 2022.

Reassuringly for anyone who has purchased an NFT through GameStop’s marketplace, the nature of the blockchain means that the NFT won’t be going anywhere just because the marketplace will be closing down. They will still be able to buy and sell the NFTs on other marketplaces.

The full statement on GameStop’s NFT website says:

“Important Update

GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space.

Effective as of February 2, 2024, customers will no longer be able to buy, sell or create NFTs. Your NFTs are on the blockchain and will remain accessible and saleable through other platforms.”

This marks GameStop’s exit from crypto and the blockchain entirely. As pointed out by Decrypt, the regulatory uncertainty of crypto was the reason cited by GameStop when they closed down their crypto wallet four months ago.

The future of NFTs

Just a couple of years ago, NFTs looked like they might be The Next Big Thing. However, the market has soured somewhat and the future of NFTs looks uncertain. The crypto space is wracked with changing regulations, and NFTs in particular have seen setbacks.

Logan Paul was recently forced to buy back $2.3 million worth of ‘CryptoZoo’ NFTs in the face of a class-action lawsuit. Additionally, Twitter/X has removed support for NFT profile pictures, a move that dismayed crypto enthusiasts.

Despite these setbacks, or perhaps because of them, the crypto industry spent a record-breaking amount of money on lobbying in 2023, with the hopes to smooth the regulatory landscape around crypto.

Featured image credit: Screenshot of GameStop NFT marketplace

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The UN has warned that Tether is one of the payment methods increasingly favored by money launderers.

Tether is an established cryptocurrency with a token, also known as Tether, which is attracting significant concern due to activity around Southeast Asia in particular. The token, at its most basic level,
is a type of digital money that tries to maintain the same value as the US dollar.

The UN’s Office for Drugs and Crime has detailed how criminals are duping victims with romance scams, leading to ‘pig butchering’ – a term used to describe how people are misled and enticed under false pretenses with the promise of lucrative returns before the funds are taken away reports The Financial Times.

In December, security authorities in the United States seized digital currency worth around $500,000 from an account linked to a Chinese businessman.

What is the UN saying about Tether?

UN spokesman Jeremy Douglas stated, “Organised crime has effectively created a parallel banking system using new technologies, and the proliferation of loosely or entirely unregulated online casinos together with crypto has supercharged the region’s criminal ecosystem.”

Tether has been highlighted because of its instant, irreversible form of transactions.

This was backed by Erin West, a California-based criminal prosecutor and cybercrime expert who stated, “Tether is the mechanism of choice, it’s fast and transactions cannot be retracted. Once the money is moved, it’s moved. You can’t pull it back.”

West continued, “You’re creating a situation where victims are blinded by love, coupled with the opportunity to get rich quickly. They’re being asked to buy something that they’re not familiar with, and prior to cryptocurrency there weren’t many opportunities to do that.”

Tether’s digital token of the same name is a stablecoin, a crypto asset that usually tracks a hard currency to maintain the price. The platform allows traders to move in and out of trades as, unlike others such as Bitcoin, it is pegged to the US dollar.

Although US law enforcement has embraced a crackdown on digital assets in its jurisdiction and overseas, criminals are still utilizing Tether as a successful means of moving money.

Image credit, RDNE Stock Project, pexels.com

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Leading investment firms BlackRock and Fidelity, along with other contenders, have disclosed their fee structures for the much-anticipated spot Bitcoin exchange-traded funds (ETFs) in the United States, according to a CoinDesk report. This move comes as the crypto industry eagerly awaits the Securities and Exchange Commission’s approval for these ETFs.

BlackRock, in its final S-1 filing, announced a competitive fee structure starting at 20 basis points for the first 12 months or until the fund reaches $5 billion in assets. After this threshold, the fee will increase to 30 basis points. This fee is notably lower than the 0.39% initially predicted by Bloomberg Intelligence’s ETF analyst James Seyffart.

Fidelity, aligning with Seyffart’s predictions, has set its Bitcoin ETF fees at 0.39%. This announcement comes amid a competitive landscape where as many as 13 ETFs are expected to be listed in the U.S. soon. In this scenario, setting attractive fees is a crucial strategy for these providers to differentiate themselves from rivals.

In an aggressive move to capture market share, Invesco and Galaxy have decided to waive their fees entirely for the first six months or until their fund reaches $5 billion in assets. Post this period, a fee of 0.59% will be applicable. This strategy mirrors the approach taken by Cathie Wood’s ARK and its custodian 21Shares, who are also waiving fees for the first six months or until they reach $1 billion in assets, after which a fee of 0.25% will be charged.

VanEck has also joined the fray with a competitive fee of 0.25% for its ETF. On the higher end, Valkyrie has set its fee at 0.8%.

Impact of Bitcoin ETFs and broader crypto market

The anticipation surrounding these spot Bitcoin ETFs has positively impacted the crypto market, with Bitcoin’s price inching toward $45,000, marking a 1.8% increase in the last 24 hours. At the time of writing, BTC is trading at $44,874.

The move to launch a spot Bitcoin ETF is not isolated to BlackRock, which has also shown interest in Ethereum. This diversification indicates a growing interest and acceptance of cryptocurrencies among mainstream investment firms.

The introduction of these ETFs is a pivotal moment for the crypto industry, offering traditional investors a regulated and familiar way to gain exposure to Bitcoin. The competitive fee structures reflect the eagerness of these investment giants to establish a foothold in the burgeoning crypto market. As the industry awaits the SEC’s decision, these developments mark a significant step toward the mainstream adoption of cryptocurrencies.

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Logan Paul announced in an X post that he has “personally committed” to a $2.3 million to buy back eggs associated with the failed non-fungible token (NFT) game CryptoZoo. However, anyone who gets a buy-back in this way is agreeing not to participate in any legal action against Paul, including the class action lawsuit he is currently subject to.

The time frame to claim buybacks lasts until Feb 8. Paul is providing claimants 0.1 Ethereum (ETH) for each eligible returned NFT, which some might see as better than nothing. It’s about the equivalent of $224. However, it’s a lot less than they might be eligible for if the class action lawsuit against Paul succeeds.

The ground-level buy-in for CryptoZoo consisted of ‘Base Animals’ or ‘Base Eggs’, NFTs that would eventually be used in-game for breeding and other activities. The game, which was announced on YouTube in August 2021, was meant to be a “really fun game that makes you money,” but was never completed.

Today, I am incredibly happy to announce that I am delivering on my promise to buy back Base Egg and Base Animal CryptoZoo NFTs for their original purchase price. This buy-back program is being carried out at https://t.co/XIQzLAGKiG. Claims can be submitted through this site… pic.twitter.com/VMPDHvdXkq

— Logan Paul (@LoganPaul) January 4, 2024

Base Eggs and Base Animals frequently cost over 1 ETH each (over $2200). The buy-back amount being offered by Paul is a fraction of that. Paired with the terms and conditions of the refund stating that claimants “are waiving any actual or anticipated claims against Paul”, there is speculation that he is trying to minimize his losses.

Logan Paul faces class action lawsuit over CryptoZoo

Class action lawsuit damages can include full refunds of what the buyer initially lost, plus damages and fees. “Paul may be betting (or at least hoping) that enough people who would otherwise be potential class members will take him up on this offer and drastically reduce his potential exposure in the pending case by doing so,” said Rob Freund, a lawyer who spoke to TechCrunch about this issue. “That would let him angle for a much more favorable settlement.”

The social media influencer and professional wrestler has this week filed a counterclaim to the class action suit, alleging that two of the people who also worked on the game are “con artists” who “sabotaged” CryptoZoo. He has made the full counterclaim document public.

Paul claims that he never made any money off CryptoZoo; “In fact, the opposite is true, because I spent hundreds of thousands of dollars trying to make it happen,” he said on X, going on to say that the game will never be released. “I personally spent $400,000 to have it developed and after its completion in early 2023 & some further diligence, unfortunately, there are too many regulatory hurdles that would need to be cleared that I did not originally understand and would ultimately delay this buy-back even further.”

Featured image credit: Erik Drost via Wikimedia Commons and @CryptoZooCo

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Bitcoin experienced an 8% slump on Wednesday (Jan.3) after $400m was liquidated in the space of just two hours.

The fall follows a spike on January 1, as skepticism surrounding the anticipated approval of a spot bitcoin exchange-traded fund (ETF) increases. It’s now being claimed by options analyst GreeksLive on X that “the likelihood of the ETF’s passage becomes less and less likely, and the market saw a stalemate.”

The new bitcoin ETF was reportedly set to be approved as soon as “Tuesday or Wednesday” this week, according to Reuters a week ago.

It is now believed the Securities and Exchange Commission (SEC) will reject all fresh ETF proposals in January, according to financial services company Matrixport.

They go on to predict a 20% price drop.

Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure. With #SEC Chair Gensler’s skepticism towards #crypto, a potential -20% #Bitcoin price drop is anticipated upon #ETF denial, though a positive end-of-2024… pic.twitter.com/IgaMhBJtiP

— Matrixport (@realMatrixport) January 3, 2024

Bitcoin opened Wednesday at $45,500 but soon dropped to $40,550. It has since recovered to $42,200 but is still somewhat short of the $45,872 it reached on Tuesday morning. At its peak, bitcoin rose to $64,400 in November 2021.

The cryptocurrency experienced a tumultuous 2023, with the first three quarters of the year seeing its price hovering around the low to mid-twenty thousand before enjoying something of a spike in the final quarter, peaking at around $44,000 in December.

What are Bitcoin ETFs?

A bitcoin ETF is a fund that primarily invests in assets relating to bitcoin as its original entity. They sell shares on the open market and use those investments to build a portfolio based on a market index. They work in a similar way to mutual funds but instead trade directly on the stock exchange.

These ETF’s do not own Bitcoin but instead own companies and other ETFs that are linked to it.

Owning a Bitcoin ETF can be more expensive than owning it in an exchange. This is because exchanges typically charge one-time fees per transaction to buy and sell cryptocurrency, whereas ETFs charge a yearly fee, called an expense ratio fee.

Featured Image: Photo by Yiğit Ali Atasoy on Unsplash

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The cryptocurrency market kicked off the new year with a bang as Bitcoin surged past the $45,000 mark for the first time since early April 2022, recording a significant 7% increase on the first day of the year. This bullish trend in Bitcoin’s price is largely attributed to the growing anticipation surrounding the U.S. Securities and Exchange Commission’s expected approval of several spot Bitcoin exchange-traded funds.

A recent Reuters report hinted that the SEC might start approving applications for Bitcoin ETFs as early as this week, fueling investor optimism and driving the price surge. At the time of writing, Bitcoin’s value stands at an impressive $45,672, marking a 7% increase over the last 24 hours, according to CoinMarketCap.

The positive momentum wasn’t limited to Bitcoin alone. The broader cryptocurrency market also experienced notable gains. Ether (ETH), the second-largest cryptocurrency by market capitalization, saw a 4.87% increase, while other popular altcoins like Solana (SOL) and Avalanche (AVAX) jumped by 10% and 8% respectively.

The potential approval of Bitcoin ETFs by the SEC is a significant development for the cryptocurrency industry. It represents a major step toward mainstream acceptance and could potentially open the doors for more institutional investors to enter the crypto market. ETFs are seen as a safer and more regulated investment vehicle, which could attract investors who have been hesitant to directly invest in cryptocurrencies due to concerns about volatility and regulatory uncertainty.

This latest rally in Bitcoin and other cryptocurrencies indicates a positive start to the year for the crypto market, which had experienced a turbulent 2022-23. Investors and enthusiasts will be closely watching the SEC’s moves in the coming days, as any official announcements regarding the approval of Bitcoin ETFs could further influence market dynamics.

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The Central Bank of Nigeria has lifted its ban on cryptocurrency transactions, acknowledging the global trend towards regulating digital assets, according to a recent Reuters report. This move marks a departure from the bank’s February 2021 decision, which prohibited banks and financial institutions from engaging in crypto-related activities due to concerns over money laundering and terrorism financing.

The change in stance aligns with the Nigerian Securities and Exchange Commission’s efforts to establish a regulatory framework for digital assets. In May last year, the SEC released regulations for virtual assets, signaling Nigeria’s intent to balance between an outright crypto ban and unregulated usage.

Under the new guidelines issued on Dec. 22, banks and financial institutions are required to open designated accounts and provide settlement services for firms dealing in cryptocurrencies and crypto assets. However, these institutions are still prohibited from directly trading, holding, or transacting in cryptocurrencies.

To operate in the crypto business, Virtual Asset Service Providers must obtain a license from the Nigerian SEC. The CBN’s circular specifies that financial institutions must not open or operate any accounts for entities engaged in virtual/digital assets without proper designation and adherence to the new guidelines.

This policy reversal comes amid Nigeria’s growing cryptocurrency market, driven by a young and tech-savvy population. Despite regulatory hurdles, Nigerians have increasingly turned to peer-to-peer crypto trading to bypass financial sector restrictions. According to a report by Chainalysis, Nigeria’s crypto transaction volume surged by 9% year-over-year, reaching $56.7 billion between July 2022 and June 2023.

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Over $58 million has been stolen via fraudulent Google and X ads in nine months.

The wallet draining service is named ‘Ms Drainer.’ Scammers use Google Ads to present fake versions of popular cryptocurrency sites like Zapper, Lido, Stargate, Defillama, Orbiter Finance, and Radiant.

These Decentralized finance (DeFi) sites allow for peer-to-peer transactions without the need for an intermediary like a banking partner for fund transfer.

The fake ads exploit the token approval process to transfer funds without the account holder’s consent.

How did Scammers go about this wallet drain?

ScamSniffer flagged the malicious crypto-stealing scam:

1/ Alert: A 'Wallet Drainer' has been linked to phishing campaigns on Google search and X ads, draining approximately $58M from over 63K victims in 9 months. pic.twitter.com/ye3ob2uTtz

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) December 21, 2023

Users were led to sites that mimicked officially advertised platforms—hiding the links to the scam pages inside the promoted ads on Google Ads and X.

Both Google Ads and X should have robust policies of defending against these types of scams, however the scammers have managed to get around these safeguards.

MS Drainer was active on 10,072 fake sites, according to ScamSniffer, and impacted 63,000 victims.

The malicious draining tool was also active on X, presenting itself as a limited edition NFT collection called ‘Ordinals Bubbles’.

ScamSniffer said in a recent post, “It’s critical for ad platforms to strengthen checks and for users to approach ads with caution, verifying authenticity to avoid phishing traps. Stay vigilant!”

It's critical for ad platforms to strengthen checks and for users to approach ads with caution, verifying authenticity to avoid phishing traps. Stay vigilant!

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) December 21, 2023

Other Crypto scams and exploits

Last month, Inferno Drainer stole over $70 million from victims before shutting down, as reported by Coin Telegraph. The scammers posted a final message to a Telegram group saying, “We hope you can remember us as the best drainer that has ever existed and that we succeeded in helping you in the quest of making money.”

Millions of crypto wallets were found to be at risk in November due to an overlooked code flaw in BitcoinJS. The flaw stemmed from insufficiently random key generation for crypto wallets. Those most at risk were users who created a crypto account before 2012.

Image Credit: Karolina Grabowska, Pexels.

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Open-source blockchain platform, Solana’s native cryptocurrency, SOL, neared the $100 mark on Friday morning, extending a powerful rally into its third consecutive week.

The price surge has coincided with a frenzy of meme coin activity and rising usage metrics on the Solana platform.

Meme coin rally driven by dog-themed token

A meme coin is a cryptocurrency that gains popularity and value more from viral online hype, jokes, and speculation rather than having any real-world utility. The most famous example is Dogecoin (DOGE), which features the popular Shiba Inu “Doge” internet meme as its mascot and was created in 2013 as a joke mocking the flood of altcoins entering the crypto market.

The catalyst to the current rally appears to be a viral dog-themed token called BONK, which posted parabolic gains of over 1000% in late November. This captured the attention of retail crypto traders and inspired a wave of animal-inspired “bonk” meme coins rushing to replicate BONK’s success.

The biggest breakout hit has been dogwifhat (WIF), which rewarded early buyers with returns of more than 10,000% within days.

In the past month, thousands of these speculative meme coins have launched on the Solana blockchain, the preferred platform due to its cheap, fast transaction throughput. Most projects fizzle out quickly after a short-term pump and dump, but the hype has directed a spotlight back on Solana’s capabilities and revived broad-based retail interest in holding SOL.

On-chain activity on Solana has exploded as a result. Trading volumes and network fees over the past week have surpassed Ethereum for the first time. Impressive for a blockchain that is still less than two years old. Total value locked in Solana’s booming decentralized finance ecosystem has similarly catapulted from $400 million as recently as November to $1.3 billion today.

Solana price soars

SOL’s price gains this year now stand at over 800%, with an enormous surge occurring within the past two months alone. And that’s despite massive SOL selling pressure from the ongoing bankruptcy process of crypto exchange FTX, formerly one of the largest holders of the token.

With developers and investors alike flocking to Solana once more, the blockchain’s thriving ecosystem and status as an outlet for speculative mania should drive SOL rapidly toward the vaunted $100 mark in short order. The million-dollar question will be whether the network can sustain this breakneck growth beyond the meme coin hysteria.

“Solana is recovering more steadily than most major competitors and shows more interest in it in the community, which promises to keep its performance above the market in the coming months,” Alex Kuptsikevich, FxPro senior market analyst told Coindesk on Friday.

He added: “Google searches on Solana have soared 250% in the past two months. User interest has coincided with the explosive growth of the asset and rising prices of related meme coins.”

Featured image: AI-generated depiction of meme coins from DALL-E

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The crypto industry is making significant investments in the political arena, with industry leaders contributing a staggering $78 million to super PACs, according to a recent Axios report. These funds are aimed at supporting and expanding the presence of crypto-friendly lawmakers in Capitol Hill, a move that could have far-reaching implications for the future of digital currencies and blockchain technology.

This substantial investment, raised in just three months, signals the cryptocurrency industry’s intent to rival more established sectors in political giving. The primary beneficiaries of this financial influx are crypto-focused super PACs like Fairshake, Protect Progress, and Defend American Jobs.

The coalition behind this funding includes prominent names in the crypto world, such as Coinbase, Andreessen Horowitz, and the Winklevoss twins. This collective effort is also seen as a strategy to rehabilitate the image of cryptocurrency in political fundraising, especially following the downfall of FTX founder Sam Bankman-Fried, a notable political donor.

The funds will be directed to congressional candidates from both parties who support innovation, responsible regulation, and blockchain technology. This approach is not about opposing regulation but fostering a regulatory environment that nurtures the crypto industry in the United States.

Notable recipients of support from Fairshake include House Financial Services Committee Chair Patrick McHenry and Majority Whip Tom Emmer, ProPublica reports, along with other incumbents who have shown a favorable stance toward cryptocurrency and blockchain.

The growing importance of clear crypto regulations

This investment comes at a time when lawmakers are increasingly focused on establishing clear regulations for the cryptocurrency industry. Recent advancements in crypto regulatory bills by the House Financial Services Committee underscore the growing need for a well-defined legal framework that supports the blockchain economy’s potential.

Cryptocurrency has evolved into a partisan issue, with the Biden administration generally more cautious and Republicans more receptive. The industry perceives the SEC Chair Gary Gensler’s regulatory efforts as hostile, creating tension within the political landscape. This situation has prompted the crypto industry to ensure Democratic candidates align with their vision for the future of blockchain technology.

Coinbase CEO Brian Armstrong, a key supporter of the PAC, highlights the significant role of financial contributions in shaping political outcomes. Comparing the crypto lobby to established sectors like oil, gas, and banking, Armstrong emphasizes that financial contributions are a powerful tool in influencing policy and regulatory decisions.

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Shakeeb Ahmed, a former security engineer at Amazon, has pleaded guilty to charges of hacking and stealing over $12.3 million from two crypto exchanges in July 2022. This high-profile cybercrime incident, according to BleepingComputer reporting, has sent shockwaves through the cryptocurrency community, highlighting the vulnerabilities of decentralized finance platforms.

The two exchanges victimized by Ahmed’s sophisticated hacking skills were Nirvana Finance, a decentralized crypto exchange, and an unnamed exchange operating on the Solana blockchain platform. Utilizing his expertise in blockchain audit and smart contract reverse engineering, Ahmed orchestrated a complex scheme to manipulate and exploit these platforms.

Ahmed’s first target was the undisclosed crypto exchange on the Solana blockchain. He manipulated a smart contract to introduce false pricing data, which led to the generation of approximately $9 million in inflated fees. After withdrawing these funds, Ahmed brazenly offered to return the stolen amount, minus $1.5 million, on the condition that the exchange would not involve law enforcement. This attack closely resembles the breach that impacted the Crema Finance decentralized finance platform in July 2022.

Following this initial hack, Ahmed turned his attention to Nirvana Finance. He exploited a loophole in the DeFi protocol’s smart contract, taking a flash loan of ANA cryptocurrency tokens at a low price and selling them back at a higher rate. This maneuver netted him around $3.6 million. Despite being offered a $300,000 bounty to return the stolen assets, Ahmed refused, demanding $1.4 million and ultimately leading to the shutdown of Nirvana Finance after no agreement was reached.

Evading capture and concealing the crypto heist

In an effort to evade capture and obscure the digital trail of his illicit gains, Ahmed employed various tactics. He used cryptocurrency mixers, including Samourai Whirlpool, and transferred funds across the Solana and Ethereum blockchains. He also used foreign exchanges to convert the stolen millions into Monero, a cryptocurrency favored for its enhanced privacy features.

Ahmed’s online activities revealed his intentions to flee the United States and avoid legal consequences. He researched strategies to thwart asset seizures, secure citizenship in different countries, and evade extradition, indicating a clear plan to escape justice.

U.S. Attorney Damian Williams commented on the case, stating, “Five months ago, my Office announced the first-ever arrest involving an attack on a smart contract. Today, senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims. That arrest is now the first-ever conviction for such a hack.”

Ahmed’s guilty plea to a single computer fraud charge carries a maximum imprisonment term of five years. He has agreed to compensate his victims with a sum totaling $5,071,074.23 and will forfeit over $12.3 million, including approximately $5.6 million worth of fraudulently obtained cryptocurrency. His sentencing is scheduled for March 13, 2024, before United States District Judge Victor Marrero.

This case serves as a stark reminder of the ongoing security challenges faced by the cryptocurrency industry and the need for robust protective measures against such sophisticated cyberattacks.

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The U.S. Securities and Exchange Commission has rejected a petition from Coinbase, a leading U.S. crypto exchange, for the establishment of tailored rules for digital assets. The decision, announced on Friday, underscores the SEC’s stance that the existing securities regime is adequate for governing crypto asset securities.

SEC Chair Gary Gensler, in a statement accompanying the denial, emphasized that the current laws sufficiently cover crypto asset securities. He highlighted the SEC’s ongoing efforts in rule proposals aimed directly at regulating crypto businesses and noted the enforcement division’s success in addressing industry malpractices. Gensler also stressed the importance of maintaining the commission’s discretion in setting its rulemaking priorities.

Coinbase had initially applied pressure on the SEC in 2022, seeking a response to its request for a more tailored regulatory framework for cryptocurrencies. This move came before Coinbase faced a lawsuit from the SEC, accusing it of operating as an unregistered securities exchange.

Coinbase’s Chief Legal Officer, Paul Grewal, expressed disappointment with the SEC’s decision, labeling it an “abdication of its duty.” Grewal argued for the need for clearer laws and regulations in the crypto industry and announced plans to challenge the SEC’s rejection in court.

Commissioners Hester Peirce and Mark Uyeda, who opposed the SEC’s denial, encouraged ongoing dialogue and specific rule changes to support the crypto industry’s growth within the United States.

The debate over crypto regulation

The SEC’s decision comes amid a broader debate over the need for industry-specific regulations for cryptocurrencies in the U.S. While legislative efforts in Congress have shown progress, they have yet to cross the finish line. The Financial Stability Oversight Council, which includes the SEC chairman, recently concluded in its annual report that the crypto industry requires Congress to step in with regulations.

The rejection of Coinbase’s petition marks a pivotal moment in the ongoing discussion about the appropriate regulatory framework for cryptocurrencies. As the industry continues to evolve, the need for clear and effective regulations remains a critical issue for stakeholders and regulators alike.

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DeFi protocol SafeMoon has filed for Chapter 7 bankruptcy protection, a significant development following allegations of fraud by the U.S. Securities and Exchange Commission last month. The bankruptcy filing was submitted to the United States Bankruptcy Court in the District of Utah on Thursday.

The bankruptcy protection document, signed by chief restructuring officer Kenneth Ehrler, reveals that SafeMoon US LLC possesses estimated assets ranging between $10 million to $50 million. However, the firm also faces substantial liabilities, estimated to be between $100,001 to $500,000.

This financial distress follows closely on the heels of the SEC’s charges against SafeMoon and its executive team. The SEC’s allegations include fraud and the unregistered offering of crypto securities. According to the SEC, SafeMoon’s executives, Kyle Nagy, John Karony, and Thomas Smith, engaged in deceptive practices, failing to deliver on their promises of profits and misusing investor funds for personal gain.

The situation escalated last month with the arrest of Karony and Smith, while Nagy remains at large. Prosecutors have accused the defendants of misleading investors about the accessibility of SafeMoon’s ‘locked’ liquidity and their personal trading activities. As SafeMoon’s market capitalization soared to over $8 billion, the executives allegedly diverted millions of dollars for their personal use, a serious breach of trust and legal compliance.

The repercussions of the bankruptcy protection filing have been swift and severe for SafeMoon’s market position. As of the time of writing, the SafeMoon token, SFM, has experienced a significant drop, falling 44% in the past 24 hours, according to CoinGecko data.

This filing comes amid a broader crackdown by the SEC on the crypto industry, notably targeting major players like the world’s largest crypto exchange, Binance. The SEC’s recent pressure reflects an increasing effort to regulate and oversee the rapidly evolving cryptocurrency market.

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Security authorities in the United States have seized digital currency worth around $500,000 from an account linked to a Chinese businessman.

The man was cited in a report into crypto fraud emanating from southeast Asia, according to a Reuters report. The name of the individual is Wang Yicheng, who was named on the crypto account which was at the centre of the probe by US Secret Service officials.

It was reported that a ‘pig butchering’ scam had led to a full-scale investigation. This type of activity sees unsuspecting members of the public duped online into investing in crypto schemes that are not genuine.

US authorities were able to capture crypto worth around half a million dollars in June, from an account in the name of Yicheng with funds stolen from a victim in Massachusetts traced back to his account.

Crime gangs involved in crypto scam

This came after Wang Yicheng was implicated in a Reuters investigation last month when he was identified as a businessman with links to the high echelons of law enforcement in Thailand, in his role as vice president for a Chinese trade group.

The findings revealed that a crypto account in the name of Yicheng had received more than $90 million in transactions, with at least $9.1m of that figure originating from a crypto wallet that was reportedly linked to pig butchering, following analysis from blockchain specialists, TRM Labs.

One California victim had been conned out of $2.7 million, whilst another Massachusetts individual had been deceived out of $478,000 worth of crypto in what appears to be a highly elaborate sophisticated operation.

US law enforcement indicated that the Yicheng-named account had been opened in 2020, in an affidavit from Secret Service Special Agent Heidi Robles who was quoted in the filing to have stated, “This level of activity is indicative of an account controlled by a criminal organization for the purpose of laundering stolen funds.”

Crypto scams are a rising problem. In 2022, crypto scam losses in the US were estimated to be nearly double the amount reported the previous year. Losses skyrocketed from $1.2 billion to $2.3 billion- an 88% increase.

Meanwhile, the trade group that featured in the Reuters investigation has distanced itself from Wang Yicheng.

The Thai-Asia Economic Exchange Trade Association stated that it did not support any illegal activity and they were no longer in contact with the individual, nor was he still part of their group. They insisted that Yicheng’s personal affairs had “nothing to do with the trade association”.

Featured image: Pexels

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El Salvador’s ambitious plan to issue $1 billion in sovereign “Volcano Bonds” backed by Bitcoin has cleared a significant obstacle, bringing the pioneering offering closer to fruition, according to a recent Coindesk report. The country’s nascent Digital Assets Commission (CNAD) has granted regulatory approval for the bonds issued in early 2024 through Bitfinex Securities.

The approval represents a watershed moment for the experimental bonds first unveiled by President Nayib Bukele in 2021 following his government’s historic adoption of Bitcoin as legal tender. Enshrined in legislation passed by a vast parliamentary majority, the bonds are intended to allow El Salvador to tap financial markets to build a geothermal-powered Bitcoin mining ecosystem.

Initially slated for issuance in 2022, complications surrounding El Salvador’s negotiations with the IMF and designing a unique regulatory framework for the asset-backed offering delayed the bonds. Receiving the green light from CNAD, established in 2021 to govern El Salvador’s crypto industry, is seen as an affirmation that the country has managed to construct a robust architecture for crypto financial innovation.

El Salvador is positioning itself at the bleeding edge of digital asset adoption.

Positioning itself at the bleeding edge of digital asset adoption, El Salvador is moving forward with the bonds despite Bitcoin’s price volatility and the collapse of FTX demonstrating crypto’s risks. The Bukele administration views pioneering government adoption as a differentiator that enhances El Salvador’s investment attractiveness.

If successfully executed, the value of the bonds will be hedged to price stability while offering an attractive 6.5% coupon paid out in US dollars. The underlying bitcoin will be held in a transparent public wallet open to scrutiny, with El Salvador legally bound to redeem the bonds in traditional currency.

The issuance still faces challenges, like drumming up $1 billion in investment for an unproven crypto instrument issued by a developing economy. However, by clearing regulatory barriers, the Volcano Bonds have taken a major leap toward introducing the globe’s inaugural Bitcoin-backed sovereign debt.

Featured Image: Pexels

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The price of Bitcoin has seen its biggest value boost since the 2022 cryptocurrency market crash.

On Wednesday (Dec. 6) Bitcoin was trading above $44,000, a far cry away from the $17,000 it was trading at during early 2023 – after the collapse of the Terra LUNA cryptocurrency ignited the biggest sell-off in the history of the sector last November. Leading many in the industry to wonder if crypto would ever recover from the crash. 

The price surge for Bitcoin comes amidst boosts for other cryptocurrencies – with Ethereum (ETH) up 10% in the last week, Solano (SOL), Cardano (ADA) and Dogecoin (DOGE) up between 7% and 27% in the last week as well. This surge comes alongside blockchain messaging service Wormside receiving $225m in funding – the largest market raise of 2023 for crypto.

The recovery has been welcome news for many, but especially the country of El Salvador – which yields the most federal holdings of bitcoin in the world – which now looks at a profit from its investment in the market for the first time since 2021.

Hope of US ETF approval drives Bitcoin price

Bitcoin’s price has been reinforced by renewed calls for the US to approve a bitcoin exchange-traded fund (ETF) – which would invite more mainstream investment into the crypto sphere.

Approval would be a milestone achievement for Bitcoin and validation it is a conventional asset. However, there have been discussions for years on this topic with nothing having been motioned so far.

Although analysts do warn that failure to approve an ETF for cryptocurrencies, by the US Securities and Exchange Commission (SEC), could result in another crash for the bitcoin market.

Speaking to The Independent, research analyst for the investment firm Fineqia International Matteo Greco said:

“An approval (from the SEC) is expected to bring short-term capital influx from the traditional finance investors, fuelling the uptrend, while a rejection might trigger a short-term negative price action due to high expectations of approval by market participants.”

“A rejection could prompt market participants to adjust their positions, potentially leading to a downward trend in January. Analysts remain confident, however, maintaining a 90% probability of approval.”

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The cryptocurrency industry is on track to set a new record for federal lobbying spending in 2023. According to data from OpenSecrets and reported by Reuters, a nonprofit research group, crypto companies have already spent $18.96 million on lobbying in the first three quarters of the year. This figure surpasses the $16.1 million spent during the same period in 2022 and is approaching last year’s total of nearly $22 million.

The increase in lobbying efforts comes in the wake of several high-profile scandals and regulatory challenges faced by the industry. Notably, the collapse of the crypto exchange FTX, a top-ten spender in lobbying last year, has prompted firms to actively engage in reputation management and legislative advocacy.

Leading the lobbying expenditure is Coinbase, the largest U.S. crypto exchange, which has spent $2.16 million. Other significant spenders include Foris DAX, the operator of Crypto.com, the Blockchain Association, and Binance Holdings.

Navigating regulatory challenges and SEC scrutiny of crypto

Kristin Smith, CEO of the Blockchain Association, emphasized the importance of direct engagement with policymakers to bridge the education gap and establish a sensible regulatory framework. This sentiment reflects the industry’s broader strategy to navigate the increasingly complex regulatory landscape.

The industry’s lobbying efforts have intensified particularly in response to actions by the U.S. Securities and Exchange Commission. The SEC has accused the sector of flouting rules and sued Coinbase and Binance for allegedly failing to register tokens, claims both companies deny.

Another key focus for crypto lobbyists has been the push for the SEC to approve a spot Bitcoin exchange-traded fund. The optimism surrounding this potential approval, especially after a key court ruling in the summer, contributed to Bitcoin reaching a 20-month high on today.

In Congress, the industry scored a legislative victory in July when a House committee passed two major bills aimed at providing clarity on the application of existing financial rules to crypto companies. While these bills have not progressed further, lobbying efforts continue unabated.

Coinbase, in particular, has ramped up its advocacy efforts, launching a grassroots campaign in September and planning more lawmaker meetings in the coming weeks.

As the cryptocurrency industry navigates a challenging regulatory environment and seeks to repair its public image, its increased investment in lobbying signifies a strategic effort to shape policy and regulation in its favor.

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According to a Dec. 3 Bloomberg report, Bitcoin topped $42,000 on Monday, extending its rally of over 150% since the start of 2023. The leading cryptocurrency is now at levels not seen since April 2022, before last year’s massive $2 trillion crypto market crash.

Bitcoin’s resurgence comes amid growing optimism that the Federal Reserve is nearing the end of its rate hike cycle as inflation shows signs of cooling. This has driven a risk-on rally across global financial markets. Investors are betting rate cuts could come in 2024, boosting risky assets like crypto.

“Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024,” said Tony Sycamore, an analyst at IG Australia Pty. Technical indicators suggest $42,330 as the next resistance level to watch if the rally continues.

Crypto’s recovery

Other major cryptocurrencies like Ether, Dogecoin, and Bitcoin Cash also jumped on Monday, with a market cap gauge of the top 100 cryptos rising over 5%.

Crypto’s recovery comes despite recent upheavals like the FTX collapse that led to fraud charges against founder Sam Bankman-Fried. A regulatory crackdown has tried to curb shady activities, with Binance and its CEO Changpeng Zhao also facing penalties.

But optimists argue the push for stricter rules signals the maturation of a $1 trillion industry. Investor confidence has grown on expectations that the first Bitcoin spot ETFs will likely gain SEC approval in early 2023. Products from giants like BlackRock could further expand crypto’s investor base.

Lingering risks remain

An unexpected halt of the rate-cut expectations fueling markets could sink Bitcoin. And technical gauges suggest the powerful rally may be overstretched and due for a correction. Bitcoin’s RSI momentum indicator is flashing warning signs of being “overbought.”

Still, after previous overbought signals, Bitcoin historically continued powering higher over the next month. Its 2023 breakout has already surpassed gains for assets like stocks and gold.

The scheduled 2024 Bitcoin “halving” event, which cuts the token rewards for miners in half to cap supply, is another major upside catalyst on the horizon.

“We could see Bitcoin run toward $50,000 before any major correction,” predicts blockchain adviser Cici Lu McCalman, citing the halving and policy outlook.

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A cryptocurrency investment app called Coscoin, which bills itself as an “AI quantitative trading platform” promising to double user investments, has sparked anger and confusion after users across the UK reported being unable to withdraw funds totaling thousands of pounds, according to a recent BBC report.

Coscoin, also known as Cos or Cosetek, is operated by having users transfer money into the app via a third-party cryptocurrency exchange called Kraken. Kraken facilitates the trading of digital currencies and is not accused of any wrongdoing. Once funds were deposited into their Coscoin account, users could invest the money and purportedly grow their balances.

After the Thanksgiving special offer, many could not withdraw funds

However, after a “Thanksgiving special” offer on November 23rd, during which users could further increase balances by pressing a button in the app, many found themselves completely locked out of their funds.

One affected user, Nik Pearce of Hartlepool, described feeling “angry” and responsible after encouraging friends and family to sign up as well, leading to estimated collective losses of £3,000. Though initially skeptical, Pearce invested after experimenting with small withdrawals, which seemed to work. “I thought it was legit because I could withdraw my money, and it did increase my initial investment,” he explained. “When I initially saw I could withdraw, I told my family and friends, and they signed up.”

Another report indicates that numerous employees at the Nissan manufacturing plant in Sunderland have lost money to the app. A Nissan spokesperson acknowledged being aware staff were impacted.

Enticing returns on investment

Victims say Coscoin offered enticing returns on investments and easy withdrawals up until a Thanksgiving promotion, after which account balances remain untouched and inaccessible. While some users saw balances climb over £3,000, attempts to take out funds have been unsuccessful. “They’ve got my money, and I want it back,” said Gateshead resident Ian Brown, who was drawn in from a tip at his auto body shop workplace and had invested £2,000.

The BBC contacted Coscoin’s listed Washington State address for comment but received no response as of publication time. The app has been removed from Apple’s iOS storefront as well.

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