Paxos’ $500K Bitcoin payment, FTX tokens sales set to begin and other information: Hodler’s Digest, Sept. 10-16


Top Stories This Week

Paxos confirms it’s chargeable for paying a $500K Bitcoin transaction payment

The Bitcoin miner who received 19.8 BTC in fees from blockchain infrastructure agency Paxos has returned the funds following Paxos’ declare that it made a mistake in paying over $500,000 in switch charges. On Sept. 10, Paxos paid the six-figure payment to transfer $2,000, with the typical community payment sometimes being round $2. The firm later acknowledged the error, confirming the switch got here from its servers. Almost a day after Paxos’ claims, the Bitcoin miner who obtained the funds went on X (previously Twitter) to express frustrations after agreeing to refund the quantity to Paxos. The funds have been returned on Sept. 15.

Court approves sale of FTX digital property

A chapter court docket has approved the sale of FTX digital assets in weekly batches via an funding adviser and below preestablished tips. The sale doesn’t embrace Bitcoin, Ether and “certain insider-affiliated tokens,” which could be bought via a separate resolution by FTX after 10 days’ discover. FTX sales are usually not anticipated to have a heavy affect on markets. According to a current shareholder replace, the bankrupt trade has $833 million price of Bitcoin and Ether. A complete of $3.4 billion is held in Digital Assets A — the highest 10 property the corporate holds — which embrace Solana, Bitcoin, Ether, Aptos and others.

Gemini Earn customers may recuperate all funds in new DCG remuneration scheme

Digital Currency Group has proposed a new agreement plan for the collectors of the now-bankrupt Genesis Global. The plan estimates unsecured collectors will obtain “a 70–90% recovery with a meaningful portion of the recovery in digital currencies.” Additionally, the remuneration plan says the restoration of claims for Gemini Earn customers can be projected at “approximately 95–110%” with none contribution from Gemini. According to the submitting: “If Gemini were to agree to provide $100 million to Gemini Earn users under the Proposed Agreement, as it previously did, there would be little doubt Gemini Earn users would receive more than full recovery.”

Franklin Templeton information for spot Bitcoin ETF

Asset supervisor Franklin Templeton applied with the United States Securities and Exchange Commission to launch a spot Bitcoin exchange-traded fund (ETF). According to the appliance, the fund can be structured as a belief. Coinbase would custody the BTC, and The Bank of New York Mellon can be the money custodian and administrator. Franklin Templeton has $1.5 trillion in property below administration and joins a protracted checklist of asset managers ready for regulatory approval. The SEC lately delayed selections on spot ETF functions from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise and Invesco on Aug. 31.

Two extra prime executives depart Binance.US amid layoffs, SEC motion

The exodus of executives from crypto trade Binance has reached the firm’s offshoot in the United States, as at the least three prime workers left Binance.US over the previous few days. This week’s departures included the trade’s CEO, Brian Shroder, alongside authorized head Krishna Juvvadi and chief threat officer Sidney Majalya. The mass exit is believed to be tied to the continuing U.S. investigation into Binance and Binance.US. The SEC sued Binance.US, Binance and CEO Changpeng Zhao in June for allegedly participating in unregistered securities operations and other improprieties. On Aug. 28, the company requested to file sealed paperwork within the case, fueling issues a couple of legal probe by the U.S. Department of Justice.

Winners and Losers

At the tip of the week, Bitcoin (BTC) is at $26,465, Ether (ETH) at $1,628 and XRP at $0.50. The complete market cap is at $1.05 trillion, according to CoinMarketCap.

Among the most important 100 cryptocurrencies, the highest three altcoin gainers of the week are Toncoin (TON) at 21.30%, VeChain (VET) at 11.94% and Bitcoin Cash (BCH) at 11.36%. 

The prime three altcoin losers of the week are ApeCoin (APE) at -16.82%, Astar (ASTR) at 14.47% and Flare (FLR) at 12.61%.

For extra information on crypto costs, be sure that to learn Cointelegraph’s market analysis.

Read additionally


Cleaning up crypto: How much enforcement is too much?


Crazy outcomes when current laws applied to NFTs and the metaverse

Most Memorable Quotations

“I think my generation and younger than me are the ones that are really going to change that narrative for investing, whether it’s in cryptocurrency or other investments moving forward.”

Scotty James, Australian snowboarder

“The only country I would not encourage you to start a company right now is in the U.S.”

Brad Garlinghouse, CEO of Ripple

“We’re still in the fax era of global payments.”

David Marcus, former PayPal govt and co-founder Lightspark

“I don’t think everybody in D.C. actually fully realizes how powerful the crypto voting community block is.”

Brian Armstrong, CEO of Coinbase

“You cannot get 100% transparency and 100% privacy.”

Alex Svanevik, CEO of Nansen

“Climate change is still a systemic threat to our species. I think as a society, we kind of owe it to ourselves to do anything that we can.”

Marek Olszewski, CEO of Celo

Prediction of the Week 

Bitcoin value all-time excessive will precede 2024 halving — New prediction

Bitcoin has a $250,000 target for after its subsequent block subsidy halving — however new all-time highs will come sooner, in accordance to the newest BTC value prediction from BitQuant, a preferred social media commentator who sees a rosy future for the biggest cryptocurrency.

On Sept. 15, the pseudonymous “central banker and Bitcoiner” revealed a pre-halving goal above $69,000. “No, Bitcoin is not going to top before the halving,” he wrote in a part of the commentary.

Bitcoin has simply over six months earlier than the halving, the occasion that cuts miner rewards earned per block by 50% each 4 years. “No, BTC is not going to $160K because the magnitude of every pullback is large,” he wrote, including that “this means it will peak after the halving, in 2024. And yes, the target price is around $250K.”

FUD of the Week 

SEC charges company behind Stoner Cats NFT series with unregistered securities sale

Stoner Cats 2 LLC (SC2), the company behind the Stoner Cats animated web series, has agreed to a cease-and-desist order and other measures imposed by the U.S. Securities and Exchange Commission after being charged with conducting an unregistered providing of crypto-asset securities within the type of nonfungible tokens (NFTs). According to the SEC, SC2 bought greater than 10,000 NFTs for about $800 apiece. The sale took 35 minutes and occurred on July 27, 2021, and the proceeds have been used to fund the collection. Besides agreeing to the cease-and-desist order, SC2 pays a civil penalty of $1 million.

OneCoin co-founder Greenwood will get 20 years in US jail for fraud, cash laundering

Karl Greenwood, co-founder of OneCoin with Ruja Ignatova, was sentenced in the United States to 20 years in jail and ordered to pay $300 million on Sept. 20. Ignatova stays at massive. Greenwood, who’s a citizen of the United Kingdom and Sweden, was sentenced in a court docket in New York. In an announcement by the Justice Department, U.S. Attorney Damian Williams referred to as OneCoin “one of the largest fraud schemes ever perpetrated.” The multilevel advertising and Ponzi scheme reaped $4 billion from 3.5 million victims, the assertion mentioned. Ignatova has not been seen since October 2017 and is on the U.S. Federal Bureau of Investigation’s Ten Most Wanted List.

North Korea’s Lazarus Group chargeable for $55M CoinEx hack

The assault on crypto trade CoinEx, which drained at the least $55 million, was carried out by the North Korean hacker group Lazarus, in accordance to blockchain safety agency SlowMist and pseudonymous on-chain investigator ZachXBT. The hacker group was recognized after it inadvertently uncovered its handle, which was the identical one used within the current Stake and Optimism hacks. On Sept. 12, CoinEx noticed massive outflows of funds to an handle with none prior historical past. Security consultants instantly suspected that the trade was breached, with preliminary estimates reaching approximately $27 million.

Are DAOs overhyped and unworkable? Lessons from the entrance traces

Many contend that DAOs have failed to ship on their guarantees, however builders are developing with novel options.

6 Questions for Kei Oda: From Goldman Sachs to cryptocurrency

Kei Oda spent 16 years trading bonds for Goldman Sachs — a life that finally bored him. That was when he turned to cryptocurrency.

Web3 Gamer: PUBG devs’ Web3 challenge, Animoca’s $20M elevate, Shardbound assessment

The company behind PUBG proclaims a brand new Web3 platform, monetization in Web3 and extra.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this text.

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