Weekly Crypto News Recap - August 11, 2023

Digital Currency Group Files to Dismiss Crypto Exchange Gemini’s Fraud Claims

Digital Currency Group (DCG) filed a motion to dismiss a lawsuit brought last month by cryptocurrency exchange Gemini, which alleged the crypto conglomerate and its founder, Barry Silbert, committed fraud through DCG’s Genesis subsidiary that borrowed funds from Gemini’s Earn program. The lawsuit claims DCG and Silbert misrepresented the financial health of lending subsidiary Genesis and induced Gemini Earn customers to continue in the lending program, even though DCG and Silbert were aware Genesis had a billion-dollar hole in its balance sheet linked to last year’s collapse of Three Arrows Capital. DCG called the complaint a continuation of a “public relations campaign” carried out in an effort to deflect blame from Gemini's owners, further arguing that Gemini hadn't supported its fraud claims in the lawsuit.

SECs Moves to Appeal Ripple’s Victory on XRP Classification

Crypto Briefing

The SEC has made its move to appeal the recent judgment partially favoring Ripple in its protracted lawsuit. This legal tussle traces back to a July 13 order when the court determined in partial favor of the defendants when Judge Analisa Torres said its sales of XRP tokens on exchanges and through algorithmic procedures were not investment contracts. The SEC's response said, “With respect to the Programmatic and other sales, the SEC respectfully avers that Ripple conflicts with and adds baseless requirements to Howey and its progeny. Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them.” Drawing parallels, the SEC refers to a more recent contrasting verdict from the SEC vs. Terraform Labs case. The stakes for the appeal are high, as a concrete definition of a security in the crypto arena could redefine the industry, affecting a vast expanse of transactions and investments.

Base Opens Mainnet To All Users

The Defiant

Base, the highly anticipated Layer 2 network from Coinbase, has opened its doors to all users. More than 100 dApps, protocols, and brands are already live on the network, including Coca-Cola — which will issue digital collectibles, OpenSea, and Aave. Base is promoting the launch with its “Onchain Summer” campaign, featuring daily NFT drops for users and other rewards for exploring the network’s DeFi ecosystem. Base has already become the fifth-largest Layer 2 with a TVL of $137M.

Fed Looks To Increase Oversight Of Banks’ Crypto Activities

The Defiant

With the launch of a new program focused on crypto assets and blockchain technology, the Federal Reserve is broadening its influence on crypto beyond monetary policy. The central bank unveiled plans to “supervise novel activities in the banks it oversees.” These activities include “technology-driven partnerships with non-banks to provide banking services,” providing custody, trading, or collateralized lending services for crypto assets, and tokenizing securities. The Fed also detailed a “supervisory nonobjection process for state member banks seeking to engage in certain activities involving tokens denominated in national currencies and issued using distributed ledger technology.” The process involves a bank notifying the Fed with a description of its proposed activity, addressing risks of all types, including operational, cybersecurity, liquidity and illicit finance risks. After receiving the notification, the Fed will, in essence, either approve or prohibit the proposed activity.

Stablecoin Deposits on Maker Soar as DAI Interest Rates Hit 8%

Decrypt

The MakerDAO community has approved and executed a temporary increase in the interest rate on the DAI stablecoin. MakerDAO’s creator Rune Christensen introduced the Enhanced Dai Savings Rate (EDSR) proposal to temporarily increase the returns on Dai Savings Rate (DSR) to bolster demand. Folks staking the decentralized stablecoin can now enjoy a whopping 8% yield on their holdings, but Christensen emphasized the temporary nature of the feature, stating, "once more users arrive, the rate will go back down."

BITCOIN

Milk Sad: Weak Entropy in libbitcoin (bc) seed generation
Bitcoin futures surge suggesting fresh capital entering market
Private Equity Giant David Rubenstein Makes the Case for Bitcoin
Crypto Options Traders Are Still Shorting Bitcoin Volatility
Bitcoin sees the second-highest number of new Inscriptions per day

ETHEREUM

The next big leap for Ethereum liquid staking: The staking landscape
Illicit flows on Ethereum hit yearly high last week
Lido Attracted 10K Ether Stakers to Protocol in July

ALTCOINS

Worldcoin opens up WLD reservations for unverified users
Aave DAO opens voting on proposals to reduce CRV exposure
The Sandbox Token Drops 20% Ahead Of Major Unlock
Binance Backs Curve with $5M as DeFi Protocol Eyes BNB Chain Integration
Ripple joins BIS cross-border payments task force
Maker Founder Proposes ‘Pre-Farming Airdrop’ for Spark Lending Platform
BNB Chain hard fork to improve security and compatibility with EVM chains
Aptos Token Surges on Microsoft Partnership Ahead of APT Supply Unlock
Goldfinch Writes Down Failed $5M Loan To Kenyan Taxi Financier
Fantom is exploring adding optimistic rollups to connect to Ethereum
PancakeSwap Deploys on Ethereum Scaling Network Arbitrum in Expansion Drive
Rollbit's RLB Token Rockets 60% as Crypto Casino Bets on Daily Token Burn
EOS Network Foundation calls on community to reject Block.one’s $22 million settlement
SHIB, PEPE Lead Market Gains as US Fed Launches Crypto Supervision Program
Cardano-Based MuesliSwap to Refund ‘High Slippage’ Losses for Users
Maple Opens Cash Management Pools To Accredited US Investors
Venture-Backed Saddle Finance Proposes Wind-Down, Dissolution
Yield Guild Games Token Halves In A Day After 500% Rally
Chainlink’s Price Feeds Land on Base, Bringing More Precise Crypto Pricing
Frax Founder Proposes Expansion Into Real-World Assets
DeFi Protocol Dolomite Unveils Zap: A Breakthrough Collateral Solution for Arbitrum Users
Uniswap gets deployed on Coinbase’s Layer 2 network Base
Decentralized Insurance Alternative Nexus Mutual Provides Cover to UK Shopkeepers
XRP Price Falls 10% on the Week as Bullish SEC Hype Fades
Reddit Community Tokens Moons and Bricks Soar 50% on Kraken Listing
Aptos’ APT Token Slides Ahead of $30M Unlock
Mantle Introduces New Governing Body for Treasury Management
MakerDAO DAI supply gains $200M as interest rate surges to 8%
Worldcoin global ID demand doubles despite regulatory hiccup, WLD token turbulence
Curve Finance Recovers over 70% of Hacked Funds: Report
DYdX evaluates transitioning token to native asset of upcoming Layer 1 chain on Cosmos
Worldcoin activity surges in week following launch, project claims
Superconductor Hype Sparks Flurry of LK-99 Memecoins
Curve offering $1.85 million bounty for exploiter’s identity (and conviction)

STABLECOINS

Aave’s GHO Stablecoin Consistently Trades Under Dollar Peg
MakerDAO Attracts $700M In Deposits After Hiking DAI Savings Rate
Stablecoins could be key to upholding US dollar’s global reserve status: WSJ op-ed
Stablecoin supply continues to drop despite wider adoption signals
Circle Stablecoin CEO Unveils International Dominance: 70% of USDC Adoption Outside US
Bank of England will get more power in regulating stablecoins
Circle CEO Says Just 30% of USDC Adoption Occurs in US
Binance sold USDC for another stablecoin — Coinbase CEO
Meet PYUSD: PayPal Launches Dollar-Backed Stablecoin for Crypto Payments
Tether is now the 11th largest bitcoin holder in the world
Hong Kong Stablecoin FDUSD’s Market Cap Surges by 10x In Two Days
US Court Dismisses Class Action Lawsuit Against Bitfinex and Tether

CRYPTO ECOSYSTEM

$170M Bridged to Coinbase Layer-2 Base as Daily Active Users Hit 136,000
Cross-chain wallet BitKeep changes name to Bitget Wallet after acquisition
Coca-Cola and Top DAOs Join Coinbase's 'Onchain Summer' Web3 Festival for Base Launch
Fireblocks discloses massive vulnerability affecting crypto wallets
Only 6 out of 45 crypto wallet brands have undergone penetration testing: Report
Metamask takes top spot as most popular wallet with 22 million downloads: CoinGecko report
Galaxy reports $46 million loss despite bitcoin mining growth: Q2 earnings recap
19% of New Yorkers own cryptocurrency: Coinbase report
Circle Unveils Web3 Programmable Wallets: A Technical Breakthrough for Developers
CoinGecko Launches Index for Crypto Tokens Alleged as SEC Securities, Valued at $91 Billion
Tokenized Coinbase Stocks Are Coming to Polygon Thanks to Backed Finance
Blockchain Security Firm Forta Upgrades Its Scam Detector to Battle Growing Crypto Fraud
CoinGecko now has an index for crypto tokens alleged as securities
New hearing set on whether to put Bankman-Fried in jail pre-trial
Patched Worldcoin bug could have made Orbs vulnerable to remote takeovers: CertiK
Former Celsius CEO Alex Mashinsky loses motion to dismiss civil fraud lawsuit
New York AG probes transactions at Genesis, ties with Barry Silbert: Report
Bridged assets to Coinbase’s Layer 2 top $100 million
DeFi Lender Alchemix Says Vyper Hacker Returned Stolen Crypto
OPNX submits bid to takeover troubled Singapore-based crypto lender Hodlnaut

NFTS / GAMING / METAVERSE

Crypto-Guilds Raises the Gaming Bar with Chainlink VRF Integration
DeGods Sales Leap as Artwork Evolution Is Unveiled
NFT collection Y00ts plans Ethereum migration prompting 350% trade volume boom
Star Trek trademarks for NFTs: The final frontier
Borderless Art Comes to Life With Superchief's Network of NFT Galleries
Dungeons & Dragons Publisher to Tighten Artist Guidelines After AI Art Found in Book
Mech Shooter 'MetalCore' Is 'Titanfall' Meets 'Destiny' With an NFT Twist
NFT Market Slump Hits Artists Hard: Payouts to Creators Plunge 98% as Royalties Slashed
You Can Try On Copenhagen Fashion Week's Latest Styles in the Metaverse
NFT Trader Admits Nabbing $1.5 Million in Ethereum After ‘Elizab.eth’ Gets Rekt on Blur
Monthly stolen NFT value declining alongside traders and volume

MINING

Hut 8 Mining eyes asset acquisition as energy supplier faces insolvency
63% renewable energy used by Bitcoin Mining Council making up 43% of global mining network
Bitdeer, B. Riley Financial enter into agreement for $150M share purchase
Core Scientific’s bankruptcy plan includes equity stake for Bitmain and Anchorage
Jihan Wu’s Bitdeer completes mining facility in Bhutan, gets new rigs to boost capacity
Core Scientific appoints Adam Sullivan as CEO amid restructuring process
Tether unveils mining software to boost efficiency and capacity

EXCHANGES

Binance applies for Taiwan AML compliance: Report
XRP briefly hits $50 on Gemini as users suspect relisting 'price glitch'
Bittrex Reaches Settlement With SEC; Agrees to Pay $24M Fine
Gemini Opens XRP Deposits and Trading Following Ripple Labs Partial Victory
Bitstamp to halt trading in Polygon, Solana and other tokens in the US
Binance faces calls for ban by Nigerian Bureau De Change association
Binance Receives License to Offer Bitcoin, Digital Asset Services in El Salvador
Crypto Brokerage Blockchain.com Receives Institution License From Singapore
Bitstamp Hunts for Funds: Crypto Exchange Plans Derivatives Trading Launch in Europe
Coinbase to Buy Back up to $150M in Own Corporate Bonds
Binance Labs Maintains Dominance in Crypto Funding Despite Regulatory Challenges
Monetary Authority of Singapore Grants Payment License to Crypto Exchange Blockchain.com
Huobi Receives $200M USDT, $9M Ether From Whale
Rumors of Insolvency and Chinese Probes Cause Huobi Crypto Exchange TVL to Drop to $2.5 Billion
Huobi's Stablecoin Reserves Down 30% Amid Reports of Executive Arrests
BitGet Crypto Exchange Secures Comedian Adam Devine as Brand Ambassador – Crypto Partnerships Making a Comeback?
Huobi sees $73.3 million net outflow in past week as investigation rumors swirl
Coinbase CEO says leaving US ‘not even in the realm of possibility right now’ — Report
Bitget faces lawsuit by influencer over ReelStar token listing fiasco
Huobi refutes insolvency and leadership arrest rumors

CAPITAL RAISES

Binance Labs Invests $10M to Accelerate Helio Protocol's Liquid Staking Pivot
Bitcoin wallet Xverse raises $5 million from Franklin Templeton and others
Brevan Howard Backs Crypto Infrastructure Startup Puffer in $5.5M Round
1kx leads $5 million seed round for generative art NFT platform fxhash
Elon Musk-Backed Brain Hacking Firm Neuralink Raises $280 Million

INVESTMENT MANAGEMENT

Dubai-Based Illuminati Capital Raises $50 Million for Web3 and Gaming Investments
Multicoin Backer L1 Digital Raises $152M for Second Crypto VC Fund
ARK Invest’s Cathie Wood expects delayed Bitcoin ETF decision, but predicts multiple approvals afterwards
Haun Ventures has more than half of the $1.5 billion it raised left to deploy
Largest Bitcoin ETP outflow since March as profit taking continues
Crypto Investor HashKey Aims to Raise $100M for New Digital Assets Fund
US Ethereum Futures ETF Has a 75% Chance of Approval in 2023 After Recent Flood of Applications, Analysts Estimate

TRADFI / TECH

Visa explores crypto gas fees payments through cards
US bank reveals $166M in crypto holdings: Q2 earnings report
Universal Music and Google in talks over deal to combat AI deep fakes: Report
Microsoft partners with Aptos, will explore digital payments and tokenization
Nvidia Teases New Hardware, Software, and Services for AI
Billionaire Mike Novogratz Says Traditional Finance Institutions Reappearing in Crypto Space: Report
Zoom updates terms after backlash, won’t train AI without consent
Elon Musk rebrands Twitter Blue subscription services to X Premium
Elon Musk: 'We Never Will' Launch a Twitter or X Crypto Token

CBDC

Bank of England recruiting academics for next phase of digital pound design
Japanese startup to use stablecoins and CBDC to link Asian countries
Central Bank of Brazil Reveals Name of Its Controversial CBDC
China Minsheng Bank, JD.com Unveil Digital Yuan Collaboration

REGULATORY / COUNTRIES

US regulators consider regulating political deep fakes ahead of 2024 election
Worldcoin Regulatory Scrutiny Grows as Argentina Opens Investigation
India plans to use crypto tokens in upcoming native web browser
Nigeria to issue verifiable blockchain certificates for NYSC
France Steps Closer to Implementing MiCA for Crypto Firms
SEC use of Terraform ruling hints Coinbase dismissal motion attack plan
Federal Reserve will require state banks to get written ‘non-objection’ from central bank before engaging with stablecoins
NGO calls on SEC to reject spot bitcoin ETF applications
Top Crypto Execs Confident SEC Will Approve Spot Bitcoin ETFs
Kenyan Authorities Raid Worldcoin Warehouse In Nairobi
Hong Kong securities regulator warns unlicensed virtual asset trading platforms may face steep fines, imprisonment
UK Resident Looking For Job? NCA Ramps Up Recruitment for Crypto Crime Division
Hong Kong Raises Alarm on Crypto Platforms Just Two Months after Easing Regulations
Worldcoin's Nairobi Warehouse Raided by Kenyan Police: Local Reports
Monetary Authority of Singapore commits funding for fintech innovation, including web3
Lithuanian Financial Intelligence Arm Lists Several Crypto Firms as New AML Violators
US lawmakers urge White House to address North Korea’s use of digital assets: Report
FDIC Sends Cease-and-Desist to Crypto Firm That Shuttered in June
CDC report underscores importance of judge’s verdict in Ripple case
Not Just Robert Kennedy Jr: US Presidential Candidate Francis Suarez Enables Crypto Campaign Contributions

ENVIRONMENTAL, SOCIAL, GOVERNANCE

UAE signs deal to develop carbon credit system on Venom Foundation blockchain
Singapore Red Cross starts accepting crypto donations
Op-ed: PoS layer 1 protocols must make 3 ESG changes to improve the user experience

SURVEYS, HACKS, MISC

CertiK’s crypto security reviews uncover critical vulnerability in Apple iOS
FTX Fires Back at Creditors 'Willing to Gamble Estate Assets on Higher Returns'
Early Base Whales Have an Affinity for Meme Tokens, Nansen Says
Fantom-based SpiritSwap heads for shutdown after Multichain hack drains treasury
Former FTX Executive Ryan Salame in Plea Deal Negotiations with Prosecutors
South Korea arrests Bitsonic CEO for allegedly stealing $7.5M of users’ money
Indian authorities arrest ringleaders of $120M crypto scam
DeFi Platform Curve Offering $1,850,000 Bounty for Identity of Hacker
Futurama’s latest reboot takes aim at Bitcoin miners
Sino Global Capital Takes Legal Action, Files $67.3 Million Claim Against FTX Trading Ltd
Fake PayPal USD Tokens Pop up on Several Blockchains
Ether Whale Burned 2,500 ETH; Ethereum Community Questions Motives

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