TOP STORIES OF THE WEEK
Binance Aims for $1 Billion Crypto Recovery Fund
CryptoCurrency
Binance, the world’s largest cryptocurrency exchange, is aiming to amass about $1b in a crypto recovery fund to purchase distressed digital assets. Changpeng Zhao (CZ), Binance’s CEO, told Bloomberg Television on Thursday that the leading exchange is willing to extend the target amount if need be. The fund is also open to contributions from other participants in the crypto industry. Beyond Binance, early contributors include GSR, Jump Crypto, Polygon Ventures, and Aptos Labs, among others.
New York Signs Two-Year Crypto Mining Moratorium Into Law
Decrypt
New York Governor Kathy Hochul signed a two-year moratorium on new permits for proof-of-work (PoW) cryptocurrency mining operators that rely on carbon-based fuel to power their activities. New York resultantly became the first state to place a temporary moratorium on new fossil fuel-powered PoW mining operations. “The law will prohibit Environmental Conservation Law permits from being issued for two years to proof-of-work cryptocurrency mining operations that are operated through electric generating facilities that use a carbon-based fuel,” reads a memo for the bill. The new legislation would still allow the issuance of permits for electric energy facilities that use alternatives to carbon-based fuel, such as hydropower. Bitcoin miner Zafra’s CEO Ryan Brienza said, “with this bill passing, it really only affects one operation in the state to my knowledge [Greenidge] but will scare a lot of investment away due to the regulatory fears.”
Digital Currency Group Reveals $2B in Liabilities, Including Debt to Its Own Subsidiary
Crypto BriefingIn a shareholder letter sent to investors on Tuesday, Digital Currency Group (DCG) CEO Barry Silbert outlined the state of the company’s lending situation. Most notably, the letter reveals that DCG’s subsidiary company, Genesis Global Capital, lent more than half a million dollars to DCG itself. “DCG currently has a liability to Genesis Global Capital of ~$575m, which is due May 2023,” Silbert wrote. The financial relationship between the two companies is already controversial. Genesis halted withdrawals on November 16, and reports on Monday suggested Genesis may file for bankruptcy if it fails to raise funds. The company sought a $1b emergency loan in the days before halting withdrawals, but it was ultimately unsuccessful in securing the requested funds. The letter also disclosed the existence of a $1.1b promissory note as DCG assumed certain liabilities from Genesis in response to the collapse of Three Arrows Capital, but this is not due until 2032. Lastly, DCG disclosed a $350m credit facility from a group of lenders led by Eldridge, bringing the total debt to ~$2b. Much still remains unknown about DCG’s ability to weather the storm, as well as the potential impact to Genesis and other affiliated companies like Grayscale.
Curve Whipsaws 75% as DeFi Degens Squeeze Avraham Eisenberg
Crypto Briefing
CRV experienced wild swings this week after Avraham Eisenberg, the self-described “applied game theorist” responsible for last month’s $100m Mango Markets exploit, began shorting Curve DAO’s CRV token. On-chain sleuths noticed Tuesday morning that Eisenberg had borrowed 88 million CRV tokens from lending protocol Aave and sold them onto the market early over the past week. The pressure generated by Eisenberg’s selling pushed CRV down to $0.40, allowing him to borrow even more CRV from Aave’s Curve pool to sell. Many onlookers speculate Eisenberg was targeting Curve founder Michael Egorov with his short selling. Egorov reportedly holds loans on Aave backed by CRV token collateral with a liquidation price of $0.25. If Eisenberg could push the CRV price to this level, it would trigger Aave’s liquidation contract and sell Egorov’s CRV onto the market to repay his debt, pushing prices further down. However, several whales picked up on Eisenberg’s attack and started opening long positions to increase the CRV token price. “First, he came for Mango, and I did not speak out,” tweeted PleasrDAO member Andrew Kang Tuesday, accompanied by a picture of his ~$4.8m CRV long position. “Now, he tries to hunt the loan of one of the godfather’s of DeFi and that’s when the foot is put down to defend.” In the following hours, CRV steadily climbed, eventually hitting Eisenberg’s liquidation level. All told, it’s believed Eisenberg lost ~$10m in the failed attack.
Curve Releases Whitepaper for crvUSD Stablecoin
The DefiantBITCOIN
Bitcoin owes its success in Nigeria to the unstoppable youth, says Paxful CEO
ETHEREUM
Ethereum node project Akula shuts down in wake of Paradigm competitor
Ethereum Foundation To Test Withdrawals of Staked ETH
Ethereum R&D Firm Flashbots Shares Details About Its Next-Gen Block Builder
ZkSync passes security audit as it gears up to expand access to the public
FTX Blowup Helped Enrich the Ethereum Validators Who Run the Blockchain
Ethereum Plunges 7% as ‘FTX Drainer’ Dumps ETH for Bitcoin
ALTCOINS
MakerDAO delegates approve GnosisDAO token as DAI collateral
WEMIX token plunges 70% after it’s delisted by Korean exchanges
MakerDAO to Liquidate Overleveraged Vaults and Absorb $1.3M in Bad Debt
Casper Association launches $25M grant to support developers on its blockchain
Aave proposes governance changes after failed $60M short attack
ENS DAO votes for Karpatkey to manage its endowment fund
Synapse enables bridging to new Layer 1 called Canto
World Cup Shocker Sinks Argentina Football Fan Token
Curve DAO token plunges 14% under heavy short-selling pressure
Avalanche Surges to New High in Boost for ‘Subnet’ Strategy
Mobile-Focused Blockchain Celo Partners With Ethereum Software Firm ConsenSys
Uniswap Says It Now Collects Certain Data From Users
MakerDAO Brings Aboard Rocket Pool’s LSD Token
Ren Bridge announces open source community led Ren 2.0 in response to Alameda fallout
Cardano Is Launching New Privacy Blockchain and Token
STABLECOINS
Stablecoins Show Signs of Stabilizing After FTX Storm
Cardano to launch new algorithmic stablecoin in 2023
CRYPTO ECOSYSTEM
ConsenSys updates policy to collect IP addresses from MetaMask
BlockFi puts client loans into forbearance, email shows
Crypto Custodian Aegis Trust Offers $25M Insurance Policy for NFTs
Dubai’s DMCC partners with ComTech for blockchain-based gold trading
Genesis calls in restructuring expert in its fight to avoid bankruptcy
Finastra Enables Digitalization of OTC Derivatives
FalconX resumes use of Silvergate’s payment network
Genesis denies ‘imminent’ plans to file for bankruptcy
Genesis Trading Warns of Possible Bankruptcy as Post-FTX Fundraising Falters: Report
Celsius Customers Have Until January to File Claims in Bankruptcy Proceedings
Bitcoin lender and custodian Unchained Capital announces job cuts
Genesis Block HK has more than $50 million stuck on FTX: Source
CertiK investigates KYC actors hired to scam the web3 community
NFTS / GAMING / METAVERSE
Toy Titan Mattel Announces Launch of NFT Collectibles on a Major Ethereum (ETH) Rival
‘Vincent Van Dough’ launches new NFT gallery: Exclusive
NFT Marketplace Magic Eden Expands Support for Polygon-Based NFTs
Grand Theft Auto maker Rockstar Games bans NFTs on third-party servers
Integrated advertising coming to Decentral Games’ ICE Poker: Exclusive
NFT Marketplace X2Y2 Will Enforce Creator Royalties After Pushback
MINING
Applied Digital sees buying opportunities as mining hardware selling for dirt cheap
DCG’s Foundry Digital buying Compute North facilities amid possible Genesis bankruptcy
Bitcoin miners selling aggressively as crypto market continues to struggle
Bitcoin mining difficulty rises slightly after latest adjustment
Bitcoin miner Iris Energy unplugs hardware collateralizing over $100 million in loans
Argentinian Officials Swoop on Illegal BTC Mining Farm in ‘Luxury Apartments’
Russian bill would legalize crypto mining, sales under ‘experimental legal regime’
EXCHANGES
Binance publishes official Merkle Tree-based proof of reserves
Justin Sun says Huobi and Poloniex could merge in future: Exclusive
CoinList addresses ‘FUD’ on withdrawals, cites technical issues for delays
Crypto Exchange OKX Launches New Proof-of-Reserves System Allowing Users To Verify Their Assets
Bybit launches $100M support fund for institutional traders
First Mover Americas: Binance.US to Bid for Voyager
FTX gets approval to pay critical vendors, can redact creditors’ and customers’ list
FTX asks court to let BitGo safeguard its assets during bankruptcy
Gemini Says Crypto Exchange Working To Find Solution for Users To Redeem Funds From Struggling Earn Product
Bitfinex’s reserves are 91% Bitcoin, Ethereum
Bankman-Fried Apologizes to FTX Employees, Details Amount of Leverage in Internal Letter
CoinMarketCap launches proof-of-reserve tracker for crypto exchanges
Bitget Opens in Seychelles, Wants to Double Staff Globally
Crypto Financial Services Firm Eqonex Files for Voluntary Debt Restructuring in Singapore
Bitpanda Obtains Crypto License in Germany
Huobi Rebrands, Expands Globally Amid Crypto Industry Challenges
FTX Group has cash balance of $1.24 billion, new bankruptcy filing shows
Binance will not invest in crypto lender Genesis: WSJ
Crypto Exchange Coinbase’s Shares Sink to All-Time Low
Binance Labs makes strategic investment in hardware wallet maker Ngrave
FTX Japan Preparing to Allow Withdrawals by Year End: Report
Shuttered AAX Will Close Out Derivatives, Citing ‘Chance’ of Return to Normal
Vitalik Buterin, Coinbase, Kraken, Binance promote trustless CEXs
CAPITAL RAISES
Polkadot-based protocol t3rn raises $6.5 million: Exclusive
Proximity Labs unveils $10 million developer fund for trading protocols on Near
Cosmos-based DeFi protocol Onomy raises $10 million: Exclusive
Web3 and VR gaming studio Thirdverse raises $15 million in latest funding round
NFT utility platform Tropee raises $5 million led by Tioga Capital: Exclusive
INVESTMENT MANAGEMENT
Sequoia Capital apologizes to investors after $150 million FTX loss: WSJ
Foresight Ventures Launches $10M Web3 Startup Fund, in Spite of Market Turmoil
Apollo and Hamilton Lane launch blockchain investment vehicles with Figure
Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hit new lows
Osprey Publishes Public Address for Its Trust’s Bitcoin Holdings
Hedge fund investor Bill Ackman shills crypto, reveals investment
GBTC Bitcoin discount nears 50% on FTX woes as investors stock up
Man Group close to launching crypto hedge fund despite FTX collapse: Bloomberg
TRADFI / TECH
Singapore Bank DBS Completes Fixed Income Trade on JPMorgan’s Blockchain Network Onyx
JPMorgan Chase Crypto Wallet Trademark Is Approved
What’s going on with Silvergate, the bank that props up the U.S. crypto market?
Twitter’s Crypto Engineering Lead Resigns as Staff Numbers Dwindle
CBDC
Hong Kong Preparing to Join Digital Yuan Pilot, Extend ‘Cross-border’ Reach
Bank of Japan to Run CBDC Experiments With Country’s Megabanks: Report
Shanghai Readies New Digital Yuan Giveaway
Indian central bank on track to launch retail CBDC pilot next month
REGULATORY / COUNTRIES
Singapore Police Investigating Crypto Platform Hodlnaut for Fraud
Uzbekistan issues first crypto licenses to two local ‘crypto stores’
EU blockchain infrastructure plan proceeds as parliament passes digital policy
Bukele’s government introduced a bill to launch the ‘Bitcoin bonds’
New York AG pushes prohibition of crypto purchases via retirement funds
El Salvador lawmakers to consider regulation for issuing digital assets
Kraken Founder Jesse Powell Says US Crypto Regulation Forcing Investors Out of the Country
President Biden and Other G20 Leaders Call for New International Crypto Regulatory Regime
Bahamas FTX Liquidators Agree to Transfer Bankruptcy Case to Delaware
UK Lawmakers Vote to Widen Authorities’ Powers in Seizing Crypto-Related Property
S Korean Regulators Draft New Crypto Laws to Prevent More FTX and Terra ‘Incidents’
FTX ordered to pay reimbursement fees to Bahamian regulators
Hong Kong believes stablecoin volatility can spillover to traditional finance
Texas to probe FTX endorsements by Tom Brady, Stephen Curry and other celebs
Prosecutors investigated FTX for months before collapse: Bloomberg
Three U.S. senators ask Fidelity to reconsider bitcoin exposure in retirement plans
US Senate committee schedules FTX hearing for Dec. 1, CFTC head to testify
Kenya Debates New Crypto Tax Bill
First official DAO in the US to fight SEC without attorneys
Governments should not over-regulate after FTX, lead MiCA negotiator says
Crypto-Friendly New York City Mayor Eric Adams Still Supports Digital Assets Despite FTX Implosion: Report
CFTC Commissioner Mersinger says the time has come for action on crypto regulation
ENVIRONMENTAL, SOCIAL, GOVERNANCE
Blockchain-based infrastructure forges the future for carbon markets, crypto and commodities
SURVEYS, HACKS, MISC
FTX attacker turns to ChipMixer to launder tokens
‘Avengers’ Directors to Bring FTX Miniseries to Amazon
Sam Bankman-Fried says he’ll speak at New York conference
Hacker steals $42 million from Fenbushi Capital partner Bo Shen
Institutional investors are buying through crypto winter: Survey
Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin Holdings
Lawmakers weigh what to do with Sam Bankman-Fried’s political cash after FTX’s collapse
FTX, Bankman-Fried’s parents bought Bahamas property worth $121 million: Reuters
HashFlare founders arrested in ‘astounding’ $575M crypto fraud scheme
SBF Deepfake Scam Offers Users ‘Compensation’ for FTX Collapse
Transfer spoofing evident in FTX Exploiter wallet meme tokens transfers – ZachXBT
FTX funds on the move as thief converts thousands of ETH into Bitcoin
Twitter reinstates Trump, some users report issues refollowing ex-U.S. president’s account
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