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Crypto: Core Scientific’s Nasdaq Return, Meta Faces Digital Asset Investigation, and More

Fernanda T
Latest News
January 24 2024 1:11PM

Bitcoin recovers $40,000 mark on Wednesday

Bitcoin (COIN:BTCUSD) reclaimed the $40,000 level after a brief dip below that value, registering a modest 0.5% increase in 24 hours, trading at $40,040. “After more than a 20% drop, BTC found the 100-period moving average. A very strong support with many robots programmed to buy in this region. This could cause a short-term rise in the asset before it falls again,” said Fernando Pereira, an analyst at Bitget. Meanwhile, Arthur Hayes, founder of BitMEX, argues that the recent Bitcoin volatility is not due to factors related to the Grayscale Bitcoin Trust (AMEX:GBTC), but rather to macroeconomic and monetary policy changes. Hayes suggests that fluctuations in US Treasury bond yields are more closely related to Bitcoin movements, anticipating changes in dollar liquidity ahead of conventional markets, and predicts a cryptocurrency recovery based on potential interest rate cuts and a resumption of quantitative easing.

Solana enhances programmability with innovative token extensions

The Solana Foundation is launching token extensions for its blockchain, increasing the programmability of SPL tokens. These extensions, developed for over a year, allow creators to implement specific rules such as whitelists, automatic transfer fees, and transaction privacy. The innovation particularly benefits stablecoin issuers like Paxos and GMO Trust, enabling adaptation to varying regulations. The extensions include transfer hooks, automatic fees, confidential transfers, delegated authority, and token transfer restrictions, enhancing control and security in the Solana ecosystem.

Nexo demands $3 billion from Bulgaria in international arbitration

Cryptocurrency lending company Nexo has filed an arbitration claim against Bulgaria, seeking $3 billion in damages. Alleging that the country engaged in “illegal and politically motivated actions,” including oppressive and unfounded criminal investigations, Nexo (COIN:NEXOUSD) is seeking compensation for the harm it has suffered. The investigations, which Nexo claims damaged its reputation and cost it business opportunities, including a potential IPO in the United States, were closed by the Bulgarian Prosecutor’s Office due to lack of evidence. The complaint was filed with the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC.

SEC defends requirement for Ripple’s financial documents in lawsuit

In a recent legal battle, the US Securities and Exchange Commission (SEC) defended its request for Ripple’s (COIN:XRPUSD) audited financial statements for the past two years, stating that they were procedurally valid and relevant. Ripple had opposed these demands, arguing that they were inappropriate and unnecessary, considering that both parties had previously agreed that additional discovery was not needed. However, the SEC argued that recent developments in the case justified new discovery, emphasizing the importance of this information in determining potential penalties. The legal dispute between Ripple and the SEC has been ongoing for four years, with significant decisions regarding the classification of XRP sales at stake.

Maxine Waters investigating Meta’s involvement in digital assets

US Representative Maxine Waters, a senior member of the House Financial Services Committee, has initiated an investigation into Meta Platforms (NASDAQ:META) involvement in digital assets, citing concerns about financial stability. In a letter to Meta executives, including Mark Zuckerberg and Javier Olivan, she questioned the company’s potential expansion into digital currency and blockchain, based on recent trademark filings. Waters seeks clarification on Meta’s plans in web3, digital wallets, and other related projects, examining the company’s potential research and development in stablecoins and relevant partnerships. This investigation reflects Waters’ long-standing criticism of the crypto industry and her belief in the need for strict regulation, especially for stablecoin issuers.

Brink’s Company and BitGo form strategic partnership in the digital world

Brink’s Company, known for its armored trucks, invests in and forms a partnership with BitGo, a cryptocurrency custody company. Brink’s will be responsible for secure logistics and vault services for BitGo, expanding its presence in the blockchain sector. This partnership does not alter the governance boards of the companies but strengthens Brink’s presence in a rapidly evolving digital landscape, combining its expertise in physical security with BitGo’s leadership in digital security and asset custody.

Bitget diversifies crypto with Amulet (AMU) listing

Bitget, one of the leading cryptocurrency exchanges and Web3 companies, announces the inclusion of Amulet (AMU) in its Innovation, Solana Ecosystem, and DeFi zones, highlighting its continued support for diversifying blockchain ecosystems. The Amulet Protocol represents an innovation in decentralized risk protection, offering compatibility with multiple blockchains, including Solana and Ethereum. Bitget reinforces its commitment to providing access to innovative projects, having added over 350 new listings in 2023, expanding the range of digital assets available to its users.

Doom from 1993 resurrects on the Dogecoin blockchain, thanks to developer Mini Doge

Mini Doge, an innovative developer, has announced the porting of the iconic 1993 game Doom to the Dogecoin blockchain. Using “inscriptions” technology based on the DRC-20 standard, the game is now accessible with full-screen support and mouse control. Game data is extracted directly from the Dogecoin blockchain, although the initial launch may take about a minute. This release has generated increased online activity, similar to what has been observed with inscriptions on the Bitcoin blockchain. However, inscriptions have faced criticism, including cybersecurity warnings from the US National Vulnerability Database (NVD) regarding the Ordinals protocol in Bitcoin.

Tornado Cash developer legal defense fund receives widespread support

The legal fund established for Tornado Cash developers Roman Storm and Alexey Pertsev has already raised over $350,000, with support from Edward Snowden, a former NSA analyst. Roman Storm, a dual US and Russian citizen, is under house arrest in Washington and will face trial in 2024 on money laundering and sanctions violation charges. Meanwhile, Roman Semenov, also accused, has not been detained. The US Department of Justice accuses the cryptocurrency mixing service of moving over $1 billion, and Pertsev has been in custody in the Netherlands since 2023. Storm expressed concern about his future but remains hopeful, encouraging donations for his legal defense, while Snowden highlights the importance of privacy, stating that “Privacy is not a crime.”

Mailer Lite phishing attack results in $600,000 loss

Mailer Lite, a well-known digital marketing platform, fell victim to a sophisticated phishing attack that led to a loss of over $600,000, revealed Blockaid, a web3 security and privacy company. Attackers exploited a vulnerability in Mailer Lite to impersonate web3 organizations, sending emails that appeared authentic but contained dangerous links to cryptocurrency wallet-draining websites. They took advantage of pending DNS records previously associated with Mailer Lite by these companies to create deceptive emails. Among the victims of the attack are CoinTelegraph, WalletConnect, Token Terminal, and De.Fi, as identified by crypto expert ZachXBT.

Hut 8 responds to JCapital’s report with misinformation criticism

Hut 8 Mining Corp. (NASDAQ:HUT) has countered allegations in a report from JCapital Research, labeling it “a deliberate attempt to spread misinformation.” The company criticized the report for being riddled with inaccuracies, distorted data, and baseless accusations. CEO Jaime Leverton emphasized that they will not let misinformation and defamatory attacks divert their focus. The company’s shares continue to struggle to recover, with a more than 3% recovery during Wednesday’s trading, following a -30.1% drop in the past 7 days.

Core Scientific returns to Nasdaq after post-bankruptcy restructuring

Core Scientific (NASDAQ:CORZ), a Texas-based bitcoin mining company, announced its return to trading on Nasdaq on Wednesday following a successful reorganization in response to its 2022 bankruptcy filing. The company managed to eliminate $400 million in debt by converting debts owed to creditors and convertible noteholders into equity. CEO Adam Sullivan expressed optimism about the company’s future, highlighting plans to expand mining capacity and venture into other high-value computing areas. Core Scientific, which faced challenges due to cryptocurrency price declines and market issues, plans to increase its mining capacity by over 50% in the next four years. On the other hand, mining companies Marathon Digital (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) have experienced significant declines following Bitcoin’s (COIN:BTCUSD) volatility and the approval of Bitcoin ETFs in the US.

BIS defines CBDCs and tokenization as strategic focus for 2024

The Bank for International Settlements (BIS) has set its strategic goals for 2024, emphasizing Central Bank Digital Currencies (CBDCs) and tokenization. The plan includes continued engagement with fintechs, with a favorable stance toward CBDCs, and the digitization of financial instruments, as evidenced by the Promissa Project. This project aims to modernize promissory notes using blockchain for increased efficiency and transparency. Meanwhile, the Aurum Project, in collaboration with the Hong Kong Monetary Authority, focuses on privacy in retail CBDC transactions, with a proof-of-concept phase to be completed by early 2025. BIS is also exploring other areas, including cybersecurity and sustainable finance, through multiple projects, reflecting its broad interest in digital financial technologies.

FINRA identifies potential violations in crypto communications

The Financial Industry Regulatory Authority (FINRA), a financial sector regulator, has found that 70% of brokerage communications about cryptocurrencies may have violated its fairness and balance guidelines. Under the supervision of the SEC, FINRA is focused on ensuring that information provided to the public is accurate and not overstated. The review, which began in November, indicated deceptive comparisons of cryptocurrencies to traditional assets and false statements about the applicability of securities laws.

NFT Paris 2024: Europe’s largest Web3 gathering

Returning to the Grand Palais Éphémère on February 23 and 24, 2024, NFT Paris celebrates its exponential success since its debut in 2022. From 800 initial participants to 18,000 in 2023, the event has become a landmark in the Web3 industry. In 2024, it will expand its scope to include more aspects of the Web3 ecosystem, featuring industry leaders, cutting-edge companies, and renowned artists.

Indonesia’s crypto tax revenue declines in 2023 despite Bitcoin’s rise

Indonesia’s Ministry of Finance reported cryptocurrency tax revenue of $31.7 million in 2023, a 62% decrease compared to the previous year. Indonesia imposes double taxation on crypto transactions, including income tax and value-added tax (VAT). Despite a 159% increase in Bitcoin (COIN:BTCUSD), the country saw a 51% decrease in crypto transaction volume and a reduction in tax revenue. Local exchanges criticized the high tax rates, proposing changes to crypto taxation. Meanwhile, the presence of illegal exchanges in the country challenges the formal tax system.

Taiwan authorities seek ACE Exchange president’s detention for fraud

Prosecutors in Taiwan have requested the detention of Chenhuan Wang, president of ACE Exchange, on suspicion of money laundering and fraud. The request follows the arrest of David Pan, the company’s founder, who is accused of orchestrating a fraud scheme. Prosecutors have summoned Wang and four more suspects following police operations. Pan and an accomplice are accused of luring investors into worthless cryptocurrencies, and now Wang is suspected of involvement. Despite the events, ACE Exchange claims that its operations continue as usual and reiterates its commitment to legality. Chenhuan Wang, also a partner at the Chien Yeh law firm, is on leave from his duties while the case is treated as his personal investment.