Weekly Crypto News Recap - Mar 31, 2023

March 31, 2023

TOP STORIES OF THE WEEK

CFTC sues Binance and its CEO ‘CZ’ for allegedly violating US laws

Binance and its CEO Changpeng "CZ" Zhao are being sued by the Commodity Futures Trading Commission (CFTC) for allegedly violating federal laws and not registering the exchange in the U.S. Since 2017, Binance has “taken a calculated, phased approach to increase its United States presence despite publicly stating its purported intent to ‘block’ or ‘restrict’ customers located in the United States from accessing its platform,” the agency argued in the 74-page complaint. The complaint adds that Binance, Zhao and former CCO Samuel Lim "have all chosen to ignore those requirements and undermined Binance’s ineffective compliance program by taking steps to help customers evade Binance’s access controls,” the agency said. A Binance spokesperson said, "The complaint filed by the CFTC is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years."

Signature Bank's Crypto Depositors Get April 5 Account Closure Deadline

CryptoCurrency – Finance Magnates

The Federal Deposit Insurance Corporation (FDIC) has asked cryptocurrency clients of collapsed Signature Bank to close their accounts by April 5 by finding another banking partner. Otherwise, the regulator will close the accounts and mail a check to the registered addresses. The FDIC's decision on Tuesday came following the acquisition of Signature Bank's deposits and loans by Flagstar Bank, a part of the New York Community Bancorp (NYCB). However, the acquisition did not include the "approximately $4b of deposits related to the former Signature Bank's digital banking business." In related news, the Chair of FDIC confirmed earlier this week that the agency is still seeking to find a buyer for Signature's Signet.

‘Withdrawals are coming!’ — Ethereum devs confirm epoch for Shapella fork

Ethereum validators will soon be able to withdraw their staked ETH from the Beacon Chain, with the Shapella hard fork set to be activated on the Ethereum mainnet on April 12 (epoch 194,048; 5:27 pm EST). The withdrawals will be enabled by EIP-4895 by “pushing” staked ETH from the Beacon Chain to the execution layer. The upgrade will allow staked ETH to be withdrawn for the first time since the Beacon Chain's launch in 2020, but withdrawals may take weeks or even months to execute after the upgrade is implemented depending on the number of validators that attempt to exit. GSR's monthly crypto commentary will provide a detailed dive into these withdrawal dynamics early next week.

Polygon’s Zero-Knowledge Rollup Goes Live On Mainnet

Polygon has released its zero-knowledge layer 2 rollup, becoming the second company in four days to make a so-called ‘zkEVM’ available to the general public. The release follows zkSync Era's mainnet launch last week. Zero-knowledge rollups are considered the most promising technology to scale Ethereum, and the launch of general purpose zkEVMs represent a pivotal industry development. Polygon's zkEVM remains in beta, and the company stressed that it should be used with caution today.

First Citizens Bank Enters Deal With FDIC to Buy Silicon Valley Bank

First Citizens Bank will take on the deposits and loans of the failed Silicon Valley Bank, the U.S. Federal Deposit Insurance Corporation (FDIC) said on Monday. The deal includes the purchase of $72b in SVB assets for a discount of $16.5b. The FDIC will keep another $90b in securities and assets to sell on the open market in a process known as “disposition.” First Citizens, a 125-year-old institution with a focus on North Carolina and South Carolina, had around $100 billion in total assets prior to the deal. Importantly, the First Citizens chairman and CEO said the acquisition would mean that the bank would continue to serve various startup-centric and VC clients.

BITCOIN

Zebedee Debuts Global Payment Service Powered by Bitcoin’s Lightning Network
Zero-knowledge proofs coming to Bitcoin, overhauling network state validation
MicroStrategy Pays Off Silvergate Loan, Buys More Bitcoin
Bitcoin Has Benefited From U.S. Dollar Liquidity to Support Banks: Morgan Stanley
Dormant Bitfinex whales cash out 12K BTC
Bitcoin From Defunct BTC-e on the Move Again: Report

ETHEREUM

Volume of ETH options rises to highest level since May ahead of Shapella update
ConsenSys Launches zkEVM Public Testnet, Renames It ‘Linea’
Vitalik Buterin Sends Hidden Message in First Polygon zkEVM Transaction

ALTCOINS

Cardano Users Can Soon Access Ethereum dApps Directly From ADA Wallets
Crypto Casino Rollbit's Token Drops 20% Amid Licensing Concerns
Kava Flips Solana As New Lending Protocol Boosts TVL
Aave To Launch on Polygon zkEVM
Gnosis launches Hashi bridge aggregator to help prevent hacks
Injective launches layer-2 testnet for Solana-based apps in Cosmos
Trader Joe is Fastest-Growing DEX After Shift to Uniswap v3-Like Model
Algorand up over 12% following on from India partnership
Liquid staking tokens rally by 15% as Ethereum Shapella upgrade draws near
Iota Releases Shimmer Public Test Chain Ahead of Native Ethereum Virtual Machine Launch
Lido to sunset staking on Polkadot, Kusama by August
Freeport clears SEC Reg A review for tokenized art offerings
Ethereum Staking Provider Lido to Incorporate NFTs Into Unstaking Process
EOS Ethereum Virtual Machine Testnet Goes Live Ahead of April Mainnet Deployment
THORChain mainnet halted amid new vulnerability reports
Teller V2 To Offer Fixed Term Loans Against ‘Any’ Crypto Asset
Lending Platform MakerDAO Approves ‘Constitution,’ Moves Forward With ‘Endgame’ Plan
DYDX set to launch private testnet of its Cosmos-based blockchain
Ethereum (ETH) Competitor Avalanche (AVAX) Suffers Brief Network Outage Amid Upgrade
Arbitrum Settles Into Top 40 Coins With 81% of Airdrop Claimed

STABLECOINS

USDC Outflows Surpass $10B as Tether’s Stablecoin Dominance Reaches 22-Month High
Japanese Megabank Mitsubishi UFJ Launches Stablecoin Interoperability Pilot
Circle announces USDC launch for Cosmos via Noble network
‘Flatcoin’ Builders Respond to Coinbase Call to Deploy on Layer-2 Network Base
MakerDAO votes to keep USDC as primary collateral, rejects ‘diversification’ plan

CRYPTO ECOSYSTEM

DAO treasuries top $25 billion for the first time: DeepDAO
Crypto Custody Firm BitGo Releases Security Features Aimed at Bitcoin Ordinals
MoonPay has dismissed dozens of staff, while denying those cuts are layoffs
Blocktrace Builds AI Chatbot to Simplify Blockchain Transaction Tracking
Chicago-Based Radix Trading Is One of Three Quant Firms in Binance Suit: WSJ
Vauld gets yet another creditor protection extension until April 28

NFTS / GAMING / METAVERSE

Donald Trump indictment breathes life into his NFT trading card collection
Argentinian Airline Issues Every Ticket as an NFT
Andy Warhol Artworks to Be Offered as Tokenized Investments on Ethereum
Art Blocks Debuts NFT Marketplace With Enforced Creator Royalties
Wassies NFT Project Launches Pop-up Hotel In Singapore
NFT Collection Y00ts Makes Anticipated Move From Solana to Polygon
Ticketmaster’s latest widget gives NFT holders early ticket access
UK Treasury Cancels Plans for Government-Backed NFT
Gucci Reveals Metaverse Tie-Up With Bored Ape Creator Yuga Labs
Wassies NFT Prices Surge as Crypto Twitter Lore-Themed Hotel Opens in Singapore
Accidentally burnt CryptoPunk #685 ‘resurrected’ – becomes first official CryptoPunk Ordinal
Amazon's NFT Plans Teased in a Receipt Mailed Friday Afternoon

MINING

Ault Alliance’s Subsidiary, BitNile Inc., Collaborates with Core Scientific for Bitcoin Mining Expansion
New Texas Senate Bill Seeks to Slash Bitcoin Mining Incentives
Bitcoin Miner TeraWulf Reports 146% Increase in Revenue as It Ramps Up Operations
Bitcoin hash rate spikes as analysts say miners coming back online

EXCHANGES

BUSD deposits and withdrawals via OCBS suspended on Binance.US
FTX proposes order for Deltec to turn over assets linked to Ryan Salame and Alameda
FTX EU launches withdrawal website to pay back European users
Crypto Exchange Zipmex's Restructuring Plan Approved by Singapore Court
Crypto Exchange Kraken Commits to Tougher Rules Required by Canada
OKX to Transfer $157 Million in Frozen Assets Linked to FTX and Alameda Research
Gemini Explores to Launch Global Crypto Derivatives Trading Platform
Paxful to refund users’ Earn balances affected by Celsius collapse
Coinbase Aims to Stay in Canada; Binance Could Be Poised to Exit Amid Regulatory Shakeup
Crypto Exchange Beaxy Shuts Down in Wake of SEC Lawsuit
OKX To Open Office in Australia
Binance obscured links to China for years: Financial Times
Binance Depositors Flee Following CFTC Charges, On-Chain Data Shows
‘Unexpected and Disappointing’: Binance Reacts to CFTC Lawsuit
Justin Sun’s US fraud charges could hamper Huobi’s license application in Hong Kong
FTX Bankruptcy Estate Consolidates Arbitrum Airdrop Tokens Into Single Wallet
Crypto exchange Binance launches new regional hub in Georgia
Venture capitalists bail on Zipmex bailout, company warns of consequences: Report

CAPITAL RAISES

Solana-based derivatives protocol Cega raises $5 million to expand on Ethereum
Cold wallet Ledger raises $108M as self-custody wallets gain popularity
Dragonfly Leads $6.5M Round for Aptos Protocol Econia Labs
Staking Protocol EigenLayer Raises $50M Amid Crypto Winter
Orderly Network raises fresh funding at a flat token valuation of $200 million

INVESTMENT MANAGEMENT

Hong Kong-Based Fund Set to Raise $100 Million for Web3 Startups Amid City's Crypto Revamp
Investment DAO Hydra Ventures Raises $10M to Fund Other DAOs
Fidelity is building out a crypto and token research team
Cathie Wood’s Ark continues its Coinbase and Block buying spree
Bitwise CIO sees ‘no path forward’ for spot Bitcoin ETF

TRADFI / TECH

Visa and Bitcoin Rewards App Fold Expand Partnership to New Regions
Stuttgart Stock Exchange Unit Secures BaFin License for Crypto Custody
Government requests for user data from Big Tech increased by 25%: Report
Disney Shutters Metaverse Division
Latin American E-Commerce Giant Mercado Libre Expands Crypto Trading to Chile
Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse
Microsoft Unveils Security Copilot, a Cybersecurity Tool That Uses Generative AI
Disney Cuts Metaverse Unit Amid Company-Wide Layoffs: Report
New AI Tool Named for Warren Buffett Makes Quick Work of Corporate Filings
Twitter Briefly Suspends Official Arbitrum Account
Nvidia Says Crypto Adds Nothing to Society, Despite Profiting From Mining
Chinese State-Owned Banks Extend Crypto-Friendly Hand to Hong Kong Firms
Banking crisis pushed over $286B to money market funds in two weeks: Report
Nasdaq says institutional appetite in crypto is steady as it plots push into custody, trading
Fujitsu interested in crypto trading services, trademark application reveals
German Dwpbank to offer Bitcoin trading to 1,200 affiliate banks on new platform
Federal Reserve Says Custodia’s Plans Would Endanger Itself and the Crypto Industry

CBDC

CBDC Can Be 'Bridging Asset' Between Bitcoin, TradFi: Bank of England
Japan's Finance Ministry to Explore Digital Yen Feasibility: Report
Huizhou, China, Enables Digital Yuan Tax Payments – Is CBDC Adoption Increasing?

REGULATORY / COUNTRIES

OCC’s new Office of Financial Technology has a director and an opening date
Hong Kong signals licensing over 8 crypto companies by year-end
Belarus Says Crypto Firms Can Operate Tax-free Until 2025
Elizabeth Warren says she’s building an anti-crypto army in new campaign
Thailand Considers Lifting THB 300K Retail ICO Limit
Coin Center Says RESTRICT Act Could Be Used to Ban Bitcoin
Do Kwon To Be Held in Montenegro for 30 Days As Authorities Investigate Forged Passports: Report
The Liability of DAOs and Their Founders Has Been Put to the Test in Court
Canada to Ask Pension Funds to Disclose Crypto Exposure
Law firm Cooper & Kirk accuses US regulators of weaponizing banking
Judge Puts Voyager Sale to Binance.US on Hold Pending Government Appeal
CFTC calls ETH a commodity in Binance suit, highlighting the complexity of classification
G7 to collaborate on tighter crypto regulation: Report
US explores additional bank support, favoring First Republic's benefit: Report
Regulatory Pressure Did Not Shut Down Privacy Tool, Aztec Founders Say
U.S. Accounting Board Seeks Crypto Standards Requiring Firms to Report Price Shifts

ENVIRONMENTAL, SOCIAL, GOVERNANCE

Bitcoin Mining Now Greener Than Electric Vehicle Technology, Hydro Power Grows
UNICEF hatches plan for a prototype DAO, following its crypto fund
'Skull of Satoshi' Artist Says He Was 'Wrong' About Bitcoin Mining
Crypto twitter turns Greenpeace’s attempt to vilify BTC via art piece into meme

SURVEYS, HACKS, MISC

Justin Sun claims he remains WTO ambassador for Grenada, shares screenshots
Over 1M Arbitrum tokens lost to phishing attack
Three Arrows Capital's Kyle Davies Ordered to Respond to Subpoena Within 2 Weeks
Only BNB showed significant price recovery after 2022 hack: Immunefi
Sam Bankman-Fried to Plead Not Guilty to Bribery, Campaign-Finance Charges: Reuters
U.S. and South Korea vying for Do Kwon trial; extradition destination uncertain
Elon Musk, Steve Wozniak Urge OpenAI to Halt ChatGPT Upgrades
Sam Bankman-Fried charged with bribing Chinese officials: Court docs
Safemoon LP Exploited for $8.9M; SFM Tokens Remain ‘Safe,' CEO Says
F1 Team Adds Crypto Sponsor in Kraken After FTX, Tezos Exits
SBF banned from using online messengers under new bail agreement
Hacker Behind $200M Euler Attack Apologizes, Returns Millions in Ether, Dai to Protocol
Do Kwon registered a company in Serbia for $1 amid Interpol red notice: Report
Bitcoin ATM maker to refund customers impacted by zero-day hack
Euler Finance exploiter returns another $37.1M worth of ETH and DAI
Serbian lawyers exposed for helping Do Kwon set up shell company post red notice
Crypto Lender Kokomo's Developers Used Wrapped Bitcoin for $4M ‘Exit Scam,’ Security Firm Says
Euler Finance Hacker Returns $100 Million in Surprising Act – Here's What Happened

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