Top Crypto Stories This Week: From Bitcoin Bagholders to a $4.5B Settlement
How's it going, crypto crew? This week wasn't exactly a moon mission, but there was some interesting engine revving happening in the digital asset space. Here's the lowdown:
The party's over for Su Jianfeng, as Singapore threw the book at the money launderer, sentencing him to 17 months in jail for his involvement in Singapore's $3 billion money laundering case. He will forfeit $178.9 million of his assets including $26.5 million in cryptocurrency.
TerraUSD drama just won't quit – The SEC continued its crypto crusade, settling with Terraform Labs and Do Kwon for a whopping $4.5 billion.
Taiwan isn't waiting for the government to catch up - their new VASP association is taking charge of self-regulation, and Thailand wasn't feeling the love for Zipmex, revoking their crypto exchange license after a string of regulatory no-nos.
Elsewhere,
- Paxos surprised everyone with a 20% workforce reduction despite their seemingly strong financials. Strategic shift or stormy weather ahead?
- Kraken's been mulling an IPO for ages, and it seems they're finally in pre-IPO talks for a potential $100 million raise.
- Fidelity International is hopping on the tokenization train, using JP Morgan's Onyx blockchain for their money market fund.
- Looks like the Coinbase alumni network is expanding – Worldcoin and Uniswap both snagged some former Coinbase execs.
- UK crypto ETPs are off to a slow start, failing to attract inflows due to a crowded market and regulatory concerns.
Bitcoin staged a dramatic comeback after Wednesday's release of key economic data, surging to the $70,000 mark before paring its gains. It's now back to around $67,000, while Ethereum is down to $3,500 on the news that approvals for spot Ethereum ETFs would only come by the end of summer. At least we can enjoy our beach holidays uninterrupted 🤞🏼
Risk appetites on the Fear & Greed Index have lowered slightly, from 77 last week, "Extreme Greed," to 74, " Greed."
The Fear & Greed Index uses 5-6 measurements to assess the current sentiment of the market and then rates that level of emotion on a scale of 1-100 – 1 is extreme fear and 100 is extreme greed.
But what happens next? Our fine analysts at brn said:
"We believe the market is overbearish and underestimates the positive impact of disinflation. Inflation has decreased for two consecutive months, suggesting that high interest rates are finally working, despite strong employment numbers. SEC chair Gary Gensler has also said that a spot Ethereum ETF approval will likely by approved 'by the end of summer' and not sooner, as most had been anticipating. This, combined with the hawkish FOMC stance, led ETH to another local low (-15% since the announcement of ETH ETFs) with no immediate signs of reversal."
Final Money Launderer in S$3B Singapore Case Gets 17 Months in Jail, Forfeits S$26.5M in Crypto
Dubai property broker Su Jianfeng has been sentenced to 17 months in jail for his involvement in Singapore's $3 billion money laundering case. He will forfeit $178.9 million of his assets including $26.5 million in cryptocurrency.
Paxos Cuts Workforce by 20% Despite Strong Financials
Paxos, a leading blockchain infrastructure company known for its stablecoin, Pax Dollar (USDP), has laid off 20% of its workforce, or roughly 65 people.
This news comes as a surprise to many, considering Paxos' apparent financial strength with a balance sheet exceeding $500 million.
In an email, chief executive officer Charles Cascarilla said Paxos is making a strategic shift to focus its resources on regulated stablecoins and tokenization. Other sources added the company plans to phase out its settlement services in commodities and securities.
Terraform Labs, Do Kwon Settle SEC Charges for $4.5 Billion
Terraform Labs and its co-founder Do Kwon have reached a settlement agreement with the U.S. Securities and Exchange Commission (SEC) for a staggering $4.5 billion.
This settlement comes after the SEC filed a civil lawsuit against Terraform Labs and Kwon in May 2022, alleging they had defrauded investors with their TerraUSD (UST) stablecoin and Luna token. The agency was seeking $4.7 billion for Terraform Labs and Do Kwon's disgorgement and prejudgment interest, as well as additional civil penalties of $420 million and $100 million for the firm and its co-founder respectively.
SEC Chair Gensler Signals Approval of Spot Ethereum ETFs by Summer's End
In a recent statement to Senator Bill Hagerty, SEC Chair Gary Gensler indicated that the approval of spot Ethereum Exchange-Traded Funds (ETFs) is anticipated by the end of this summer.
Many observers had had been expecting (read: hoping) that it would come sooner. This, combined with the hawkish FOMC stance, led ETH to another local low (-15% since the announcement of ETH ETFs) with no immediate signs of reversal
Taiwan Crypto Industry Takes Initiative With New VASP Association
In a move towards self-regulation ahead of anticipated government action, 24 leading cryptocurrency companies in Taiwan have joined forces to establish the Taiwan Virtual Asset Service Provider (VASP) Association.
The VASP Association, led by BitoPro founder Titan Cheng as chair and XREX chief revenue officer Winston Hsiao as vice chair, will play a crucial role in shaping the future of Taiwan's crypto industry.
Kraken in $100M Pre-IPO Discussions, Potential Year-End Completion
After years of consideration, Kraken is in talks about a potential $100 million pre-IPO raise. The crypto exchange reportedly received interest from potential investors amid the recent digital asset market rally.
“We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto,” Kraken said in a statement. “We remain fully focused on investing in this goal.”
Fidelity International Picks JP Morgan’s Onyx Blockchain for Tokenized Fund
Fidelity International is tokenizing its money market fund (MMF) on JP Morgan's Ethereum-based blockchain network, Onyx Digital Assets.
The London-based firm, which is separate from US-based Fidelity Management and Research, used its funds transfer agent and its Tokenized Collateral Network (TCN) to facilitate the tokenization process.
Zipmex Loses Thai Crypto License After Repeated Regulatory Violations
Zipmex, a Singapore-based cryptocurrency exchange with a significant presence in Thailand, has been dealt a severe blow after the country's Securities and Exchange Commission (SEC) revoked its operating license.
This action follows a period of intense scrutiny by the SEC, which identified financial instability and management deficiencies at Zipmex.
Worldcoin, Uniswap Snag Coinbase Execs
Elliott Suthers, the former head of corporate communications at Coinbase, has been hired by Worldcoin as the head of comms for Europe, the Middle East and Africa.
Meanwhile, Uniswap has hired former former Coinbase legal executive Katherine Minarik as its new chief legal officer.
UK Crypto ETPs Suffer Weak Inflows But Industry Not Surprised
Since their launch on 28 May, the products have failed to attract inflows due to institutional demand.
“Pretty simple really. The LSE is very late to the party,” HANetf co-founder and co-CEO Hector McNeil said.
Io.net CEO Ahmad Shadid Exits "Immediately" Two Days Before Token Launch
Io.net co-founder and CEO, Ahmad Shadid, exited the firm two days before its native token launched on Binance Launchpad.
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