TOP STORIES OF THE WEEK
SBF Arrested, Charged With Wire Fraud, Securities Fraud, Money Laundering
Former FTX CEO Sam Bankman-Fried (SBF) was arrested by Bahamian authorities on Monday night at the request of the U.S. Government based on a sealed indictment filed by the Southern District of New York (SDNY). The indictment was unsealed the following day and charged SBF with wire fraud and several conspiracies to commit: wire, commodities, and securities fraud, along with a slew of other charges. The SEC and CFTC followed and piled on additional charges. A judge in the Bahamas denied SBF's request for bail, calling him a flight risk. The Bahamas are expected to comply with an extradition request from the U.S. once it's formally made, but reports indicate SBF will fight against extradition.
Markets Climb As Inflation Keeps Cooling Off
The CPI print for November came in at 7.1%, 0.6% lower than October’s level and 0.2% below expectations. Crypto markets and equities reacted positively before bleeding downward through the afternoon and the remainder of the week. Signs of abating inflation are certainly welcomed by the crypto market, as they foreshadow a potential easing of the aggressive monetary policy the Federal Reserve has been pursuing throughout the year.
Fed Hikes Rates by Only 50 Basis Points, but Remains Hawkish
The Fed announced an increase to the federal funds rate
by 50 basis points on Wednesday. The decision brings rates to a target range between 4.25% and 4.50%, and notably the hike diverted from the Fed's recent trend of 75 bp rate hikes. Despite the smaller rate hike, Fed Chair Jerome Powell indicated that he expected to keep raising rates at a slower pace over a longer period of time. The Fed's updated dot plot showed that policy makers expect year-end 2023 interest rates to rise to ~5.1%, an increase from the ~4.6% expected last quarter. Risks assets were notably challenged in the latter half of the week following the release.
by 50 basis points on Wednesday. The decision brings rates to a target range between 4.25% and 4.50%, and notably the hike diverted from the Fed's recent trend of 75 bp rate hikes. Despite the smaller rate hike, Fed Chair Jerome Powell indicated that he expected to keep raising rates at a slower pace over a longer period of time. The Fed's updated dot plot showed that policy makers expect year-end 2023 interest rates to rise to ~5.1%, an increase from the ~4.6% expected last quarter. Risks assets were notably challenged in the latter half of the week following the release.
Chainalysis data reveals FTX collapse caused $9B in realized losses
FTX’s collapse resulted in around $9 billion in realized losses for crypto investors, according to a Chainalysis report. Chainalysis noted that this loss paled compared to Terra’s UST depeg, which caused a loss of $20.5 billion, and the implosion of crypto firms like Celsius and Three Arrows Capitals, which led to $33 billion in realized losses. According to Chainalysis, weekly realized loss and gain are calculated based on the value of assets in a wallet at the time they were acquired minus the value of the portion of the assets transferred from the wallet at the time of recording the data (i.e., a proxy for measuring sales). Notably the analysis does not account for those who lost their deposits on the FTX exchange, and reports indicate there may be more than one million creditors affected.
BNB Plummets as Binance Auditor Mazars Halts Work With All Crypto Firms
An international audit, tax, and advisory firm Mazars has reportedly paused all work for global crypto clients according to crypto exchange Binance. “Unfortunately, this means that we will not be able to work with Mazars for the moment,” a Binance spokesperson said. Last week, Mazars published a proof-of-reserves assessment of Binance, reporting a 101% collateralization ratio for 575,742 Bitcoin in net customer deposits as of November 22. The link to the report on the French firm’s website, however, is no longer working at press time and Binance FUD is resultantly spreading in the aftermath. As for working with another accounting firm, the Binance spokesperson said that "we have reached out to multiple large firms, including the Big Four, who are currently unwilling to conduct a proof of reserves (PoR) for a private crypto company and we are still looking for a firm who will do so." The firm will also be moving forward with its Merkle Tree-based PoR pilot.
BITCOIN
A year after Taproot, Bitcoin community works to unlock its DeFi potential
Bitcoin's Lightning Network Could Be Getting a Privacy Upgrade
ETHEREUM
ConsenSys launches zkEVM private beta testnet
Ethereum OPAC compliant blocks in decline after touching 80%
Ethereum OPAC compliant blocks in decline after touching 80%
ALTCOINS
Ren DAO to vote on plan to mint new funding tokens after Alameda collapse
Solana active developers decline 90% in 2022, but SOL devs dispute findings
Ethereum Name Service DAO Votes on Stewards for Three Working Groups
Telegram's No-SIM Signup Feature Helps Toncoin Rally, Bitcoin Also Higher
Curve Finance to deploy on zkSync’s mainnet next year
Crypto Lending Platform Maple Finance Unveils Major Overhaul, Stops Lending on Solana
Compound DAO sued by plaintiffs who held only $100 in COMP tokens
Balancer Ends Long Governance Battle With Whale
CowSwap Launches ‘Surplus-Capturing’ Limit Orders
Algorand to support bank and insurance guarantees platform in Italy
Avalanche’s Core Wallet Goes Mobile With Android Launch
SynFutures Says New v2 Upgrade Adds ‘Permissionless Listing’ of Futures
MakerDAO to execute bundled governance actions, including pay for delegates
SushiSwap CEO reveals DEX lost $30M on LP incentives this year
ENS DAO voting to elect stewards to helm three working groups
Gaming blockchain Oasys’ SEGA and Ubisoft-validated mainnet goes live
Maple Finance's $54M of Sour Debt Shows Risks of Crypto Lending Without Collateral
STABLECOINS
Researchers use zero-knowledge to address privacy, AML concerns in stablecoins
TrueUSD Launches TCNH, a TRON-Based Stablecoin Pegged to Offshore Chinese Yuan
Platypus Launches Native Stablecoin USP
BUSD’s supply falls below $20B as USDC’s supply climbs above $45B
Tether to reduce secured loans to zero in 2023 amid battle against FUD
Tether helps Binance swap 3 billion USDT to Ethereum from Tron
Binance clarifies USDC withdrawals were due to token swap, replenishing hot wallet
Bermuda Digital Bank Jewel Issues ‘Fully-Backed’ Stablecoin
Tron-backed USDD loses dollar parity as stablecoin dips below $0.97
CRYPTO ECOSYSTEM
Derivatives platform Paradigm lines up new exchange partnerships post-FTX
Crypto trading firm QCP Capital has at least $97 million stuck on FTX: Sources
Amber Group acquires cryptocurrency platform Sparrow exchange: Report
BitGo declined Alameda’s attempt to redeem 3,000 WBTC
Judge Approves Sale of Self-Custody Platform to Galaxy Digital in Celsius Bankruptcy
Ledger hardware wallet adds DeFi tracking feature
Anchorage Digital Lands $100 Million Web3 Opportunity Fund
Sam Bankman-Fried charged with fraud over FTX collapse
The Block CEO Resigns as Tainted Loan from Bankman-Fried Surfaces
Genesis liquidation could force DCG bankruptcy – The Chopping Block reports
3Commas denies staff members stole API keys
FalconX says exposure to FTX represented 18% of its 'unencumbered cash equivalents'
Amber Group owes troubled crypto lender Vauld’s CEO $130 million
NFTS / GAMING / METAVERSE
Big Time and other Web3 games take home the gold at the inaugural GAM3 awards
Warner Music Group Furthers Metaverse Push With Digital Fashion Startup DressX
Chainlink open NFT price feed oracle to expand DeFi usage
Billionaire and Ex-US President Donald Trump Launches Official NFT Project – This is What You Need to Know
NFT Marketplace Magic Eden Rolls Out Rewards Program
Valhalla and Cockpunch NFTs hit $18 million transaction volume in the past seven days
Illuvium releases Overworld as it attempts to bring AAA quality to web3 gaming
Reddit Users Have Minted More Than 5 Million NFT Avatars on Polygon
Yuga Labs, Moonpay faces lawsuit over celebrities NFT promotion
OpenSea To Transfer Control Of Royalty Enforcement Tool to Industry Collective
Starbucks Rolls Out Beta Testing on New Polygon-Powered NFT Rewards Program
MINING
Microsoft prohibits crypto mining on online services without permission
Bitcoin miner CleanSpark slashes 2023 hashrate guidance on build-out delays
Bitcoin Miner Core Scientific's Lender Wants to Give Miner $72M to Avoid Bankruptcy
Bitcoin Miners’ High Hopes for Latin America Dented by Paraguay
Nasdaq warns Bitcoin mining firm Bitfarms about share price deficiency
Major Japanese Utility Works With Local Hardware Maker to Capitalize on Excess Power With Crypto Mining
Class-Action Suit Against Crypto Miner Iris Energy Quickly Withdrawn
Argo blockchain requests trading be restored on LSE, looks to raise funds
Bitcoin miner Argo accidentally said it’s filing for Chapter 11, but is actually trying to avoid that fate by selling assets
Bitcoin Mining Firm TeraWulf Raises $10M in New Capital to Repay Some of Its Debts
Crypto Miner Hut 8 Hires Former IBM Executive as CFO
Crypto Mining Investments in Cuba Have Been Severely Impacted by Constant Power Blackouts
Shares of Bitcoin Miner Argo Blockchain Suspended in UK and US
Rural Kenya harnesses stranded potential energy to mine BTC using hydropower
EXCHANGES
US Trustee names Wintermute on creditor committee in FTX bankruptcy case
Dutch central bank says KuCoin is not licensed and 'illegally offering services'
Crypto.com continues its worldwide registration push with Brazilian EMI license
CryptoQuant verifies Binance's reserves, reports no ‘FTX-like’ behavior
Scheduled maintenance keeps Gemini down for hours
Coinbase creates self-service recovery of unsupported ERC-20 tokens sent to exchange
FTX Files to Sell Four Independently Operated Subsidiaries
Jefferies sees recovery rate of up to 40% for FTX creditors: Exclusive
Binance proof-of-reserves removed from the auditor's site
BNB insurance for Binance listing? CZ addresses delisted project's claims
Amber Group acquires Singapore crypto exchange Sparrow: Business Times
FTX used ‘weird Korean account’ to mask Alameda liabilities, CFTC says
Gemini reports third-party phishing campaign that affected some customer data
SwissBorg collects over 3,800 investors in 24 hours
Binance net withdrawals topped $3.6B over the last 7 days: Report
Binance resumes USDC stablecoin withdrawals after temporary pause
Crypto Exchange Binance.US Introduces Payments Service for Customers
Binance Withdrawals Surge as Concerns About Its Reserve Report Spook Traders
Kraken Founder Jesse Powell Says Binance Has ‘Big Red Flag’, Criticizes Recent Proof-of-Reserves Report
Poloniex Adds Cross-Margin Mode for Spot Trading
Justin Sun deposits $100 million to Binance amid FUD campaign
Paxful to delist Ethereum following push for integrity post-FTX
Skepticism pervades crypto exchange liabilities reports, and Mazars
ByBit to apply new KYC rules and withdrawal limits on Dec. 20
CAPITAL RAISES
NFT infrastructure protocol Decent raises $3.5 million from Y Combinator and others: Exclusive
Post-Merge Ethereum Block Builder Blocknative Raises $15 Million
Privacy Protocol Aztec Raises $100M
Susquehanna bets on decentralized sports prediction market Frontrunner
Web3 game DOGAMÍ secures $14M total funding
Crypto insurance firm Evertas raises $14 million from Polychain Capital: CoinDesk
Jump Crypto and TCG Crypto back decentralized hiring network Outdefine
INVESTMENT MANAGEMENT
Hong Kong crypto futures ETFs raise over $70M ahead of debut
SEC approves 9 more WisdomTree 'blockchain-enabled' funds
Grayscale Bitcoin Trust Discount Reaches Record 50%
Hong Kong Stock Exchange to list CSOP Asset Management’s Bitcoin, Ethereum ETF
Asian VC fund Sora Ventures relocates to ‘crypto friendly’ Taiwan
German VC Picus Capital commits to web3 with new investment arm
TRADFI / TECH
Silvergate faces class-action lawsuit over FTX and Alameda dealings
Protocol Developer Archblock Aims to Bring US Community Banks to DeFi Through Partnership
Apple to Allow External App Stores in Major Overhaul Prompted by EU Regulations – NFT Boom Incoming?
Bitcoin Group set to acquire German’s oldest Bank for over $15M
Apple's New Encryption Policy Is a Huge Boon for Crypto
CBDC
UK exploring a digital pound
REGULATORY / COUNTRIES
Australian regulator sues Finder Wallet for ‘unlicensed’ financial services
New House Financial Services Committee chair wants to delay crypto tax changes
Japan set to ease 30% crypto tax on paper profits for token issuers
EU Rules for Distributed Ledger Financial Trading Finalized Ahead of March Pilot
BaFin President Seeks Global Crypto Regulation
France may oblige crypto platforms to obtain licenses
Warren-Marshall Bill Assailed as a ‘Direct Attack’ on Crypto Users
CFPB not planning crypto crackdown, says Bureau Director Chopra
SEC charges eight in $100M social media securities fraud
Bahamian securities regulator slams new FTX CEO over 'misstatements'
CFTC Suing Sam Bankman-Fried, FTX and Alameda for Violating Commodities Laws
Former FTX CEO Sam Bankman-Fried Arrested in Bahamas, May Face US Trial
Canada to Prohibit Crypto Firms From Offering Leveraged Trading to Citizens
SEC charges former FTX CEO SBF for defrauding investors a day after his arrest
Federal judge orders CFTC to serve Ooki DAO founders
FSB looks to nail down global crypto regulations in early 2023: FT
Coinbase report shows dramatic increase in law enforcement enquiries worldwide
U.S. Justice Department weighs charging Binance and its executives: Reuters
SEC Chair Gary Gensler Must Testify Before Congress, Says Rep. Tom Emmer
FTT investors’ claims to be investigated for securities laws violations
Grayscale says SEC filed first legal brief in ongoing bitcoin futures ETF lawsuit
Chinese authorities break up billion-dollar crypto money laundering ring: China News
Two US Senators Demand Answers From US Regulators on Banking Sector’s Exposure to Crypto
India Looks to Coordinate Global Crypto Rulemaking as It Assumes G-20 Presidency
ENVIRONMENTAL, SOCIAL, GOVERNANCE
Stellar partners with UNHCR to give Ukrainian refugees cash via USDC
Decentralized solutions for climate change are key as COP disappoints
SURVEYS, HACKS, MISC
North Korea ‘Distributing Virus-ridden Mycelium Wallet Clone on Telegram,’ Say Experts
Sam Bankman-Fried Makes New Bid for Bail Following Denial of First Request – Here’s the Latest
‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao
Jack Dorsey pushes for decentralized Twitter alternative
White House silent on whether it will return $5.2M in donations from SBF
Uniswap’s Adams Fires Back at Opponents of His Support for Ethereum Upgrade
Breaking: SBF denied bail by Bahamas Magistrate Court judge
FTX Did Its Invoicing, Expenses Over Slack and QuickBooks: New CEO John Ray
SBF planned to blame everyone but himself, shows leaked Congress testimony
Not medical advice: Bitcoiner implants Lightning chip to make BTC payments by hand
$75M worth of FTX’s political donations at risk of being recalled due to bankruptcy: Report
Hackers copied Mango Markets attacker’s methods to exploit Lodestar — CertiK
U.S. inflation shows signs of cooling at 7.1% in November, below estimates
South Korean Authorities Say Terraform Labs CEO Do Kwon in Serbia: Report
Former top SEC crypto regulator hired by Caroline Ellison
Lodestar Finance exploited in flash loan attack
News organizations seek to unmask anonymous FTX creditors
