Presented every Sunday, the Weekly Market Recap offers a comprehensive overview of the latest headlines in the crypto market. This week’s edition, covering the period from August 13th to 19th, features a roundup of significant events and developments as follows:
US Government Arrests Co-Founder of Tornado Cash
The U.S. Department of the Treasury, on August 23rd, unveiled an update to the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) sanctions list. This revision incorporates Roman Semenov, a co-founder of TornadoCash, into the list.
Semenov, who holds Russian citizenship and was previously residing in Dubai, is linked to eight Ethereum addresses as indicated in the announcement. Both Roman Semenov and the other co-founder, Roman Storm, face charges brought forth by the U.S. Department of Justice.
On this day, Roman Storm was apprehended by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). He faces allegations of conspiracy related to money laundering, operating an unlicensed money-transmitting business, and violating sanctions regulations.
FTX’s Weekly Recap
FTX’s Strategy for Over $3 Billion Cryptocurrency Assets in Collaboration with Galaxy Digital
Legal documents disclosed on August 24th suggest that FTX is devising a plan to facilitate the sale, pledging, and hedging of a substantial portion of its cryptocurrency holdings. The objective is to refund creditors using fiat currency instead of Bitcoin or Ethereum.
FTX is proceeding cautiously to ensure that this course of action doesn’t devalue its cryptocurrency assets, which are valued at more than $3 billion. To navigate this process, FTX is seeking the counsel of Mike Novogratz, the CEO of Galaxy Digital.
FTX’s Monthly Legal Costs Approaching $50 Million
Kris Hansen, the legal representative for the FTX creditors’ committee, reported on August 24th that the monthly legal expenses incurred by FTX have reached nearly $50 million. On average, the daily expenditure stands at $1.5 million.
A significant team comprising numerous lawyers, financial advisors, and bankers is working intensively. Every dollar allocated to legal expenses diminishes the pool available for repaying creditors.
FTX’s Alert Regarding Cybersecurity Incident at Bankruptcy Claims Agent Kroll
On August 25th, FTX issued a notification concerning a cybersecurity breach involving bankruptcy claims agent Kroll. This incident resulted in the exposure of non-sensitive customer data belonging to specific claimants involved in ongoing bankruptcy cases.
Recipients were warned to exercise caution against potential fraudulent activities, including impersonation attempts and phishing emails. Earlier, the FTX community reported instances of phishing emails with the subject line “Withdrawals are available”.
Additionally, BlockFi acknowledged that the breach at bankruptcy claims agent Kroll led to the partial exposure of BlockFi customer data. However, BlockFi’s internal systems and customer funds remained unaffected.
Binance’s Weekly Recap
US Department of Justice Investigates Binance Over Potential Violation of US Sanctions on Russia
On August 23rd, The Wall Street Journal reported that the U.S. Department of Justice has initiated an investigation into Binance’s operations to ascertain if the exchange may have breached U.S. sanctions imposed on Russia.
The focus of the investigation revolves around allegations that Binance provided at least five Russian banks under sanctions as payment alternatives for its Russian clientele. In response, Binance asserted its commitment to adhering to worldwide sanctions regulations.
The exchange emphasized its vigilance in enforcing sanctions against individuals, entities, organizations, and countries that have been blacklisted on the international stage. Binance also underscored its practice of blocking access to its platform for such entities.
Binance Partners with New Taipei District Prosecutor’s Office for Knowledge Exchange Seminar
On August 24th, Binance disclosed its collaboration with the New Taipei District Prosecutor’s Office in Taiwan to conduct a knowledge-sharing seminar. This event centered on fostering an understanding of investigative strategies within the realm of virtual assets.
Over 70 prosecutors were part of the engagement, aimed at bolstering efforts against cybercrime in the virtual asset space. Notably, this seminar marked the second collaborative endeavor between Binance and law enforcement agencies in Taiwan this summer.
In a similar vein, Binance had earlier organized a training course for the Taiwan Criminal Investigation Bureau in Taipei in June.
Coinbase’s Weekly Recap
Coinbase Ventures into Circle Investment, Announces Shared Revenue from USDC Reserve Interest
On August 22nd, Coinbase’s official blog unveiled plans for the expansion of USDC onto six new blockchain platforms between September and October. This development will enhance the accessibility of USDC across a total of 15 chains.
The cryptocurrency exchange has demonstrated its commitment to supporting stablecoins and has undertaken an investment in Circle. The governance and issuance of USDC will be under Circle’s exclusive control, while Coinbase will attain ownership in Circle.
The collaborative partnership will continue to yield interest income from USDC reserves, and both entities are united in their efforts to foster the global adoption of USDC.
Coinbase Navigates Negotiations with Prominent Canadian Banks to Foster Crypto Ecosystem Advancement
According to reports from Coindesk on August 25th, Coinbase is engaged in discussions with leading Canadian banking institutions in pursuit of their support for the advancement of Canada’s cryptocurrency ecosystem.
Lucas Matheson, Director of Coinbase Canada, shared that ongoing conversations are taking place with tier-one banks within the country.
Additionally, Coinbase has recently received Pre-Registration Undertakings (PRUs) in Canada, signifying its commitment to fulfilling specific regulatory obligations within stipulated timeframes.
Bitstamp to Discontinue Ethereum Staking Services for U.S. Clients on September 25
On August 24th, as per a Blockworks report, Bitstamp, the cryptocurrency exchange, has announced its decision to terminate Ethereum staking services for its U.S. clientele effective September 25th.
Bobby Zagotta, CEO of Bitstamp US, conveyed in an official statement that customers will continue to receive staking rewards until September 25, 2023. Following this date, all staked assets will be unbound, and both the rewards and principal will be deposited into users’ primary account balances.
This transition may span several days and could be extended based on the prevailing network conditions. It is important to note that this change will not impact other services rendered by Bitstamp.
SEC Accuses Titan Global of Involvement in Cryptocurrency-Related Violations
On August 22nd, the U.S. Securities and Exchange Commission (SEC) made public its charges against Titan Global Capital, a FinTech investment advisor. The SEC alleges that Titan engaged in the use of deceptive hypothetical performance statistics within its promotional materials.
Notably, the firm claimed an annualized return reaching up to 2700% for its Titan Crypto strategy.vAdditionally, Titan was found to be lacking in the implementation of policies concerning employee cryptocurrency trading.
As a result of the charges, Titan Global Capital has agreed to a cease and desist order. Furthermore, the firm will disburse $192,454 as a disgorgement of acquired gains, along with prejudgment interest. In addition, a civil penalty of $850,000 has been levied against the firm.
Fundraising – Weekly Market Recap
Project Name | Amount ($ million) | Notes |
---|---|---|
BitOasis (Crypto exchange) | (Not specified) | |
LuminaDEX | (Not specified) | With the participation of Jump Crypto and others. |
Hungri Games (Web3 game developer) | 1.9 | Led by Bogazici Ventures. |
Anytype (Open-source tool) | 13.4 | Led by Balderton Capital. |
Pendle Finance (DeFi yield protocol) | (Not specified) | Invested in by Binance Labs. |
Delphinus Lab (zkWASM infrastructure provider) | (Not specified) | Invested in by Binance Labs. |
Ideogram AI | 16.5 | Led by a16z and Index Ventures. |
Ramp (Financial technology company) | 300 | |
Nodal Power (Clean mining company) | 13 | |
Maple Finance (Lending protocol) | 5 | |
Momentum Capital | 10 | Invested in by the Canadian BM Fund. |
To learn more, please check out crypto-fundraising.info.
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