| |
| Hey Insider! The crypto industry has witnessed the resolution of one of the most enduring mysteries in the market, the 2016 Bitfinex attack, after the identity of Bitcoin’s pseudonymous creator was revealed as the weekend approaches. Today’s Inside Cryptocurrency issue covers the answer behind this mystery as well as several other of the biggest stories from the digital asset market, including the new milestone in Binance’s user base, Coinbase’s total revenue in Q2, Revolut’s decision to halt crypto services in the U.S., and more. I hope you enjoy your reading and have a great weekend! Doğa
p/dogayurduneri | |
| 1 | | Social media rapper Razzlekhan's husband, Ilya Lichtenstein, has admitted that he was the hacker behind the 2016 attack on the crypto exchange Bitfinex, resolving one of the most renowned mysteries in the crypto industry's history. The attack caused about $71M of funds, or 119,756 Bitcoin (BTC), to be wiped off the exchange. More: - The confession was part of the couple's cooperation agreements with prosecutors.
- Ilya Lichtenstein and her wife Razzlekhan, whose real name is Heather Morgan, were first arrested in February 2022, though they were not accused of being responsible for the hack at the time.
- Lichtenstein currently faces as long as 20 years in prison.
- Morgan said she was unaware of the attack until 2020 and thought the funds might have come from drugs or tax avoidance.
- The famous rapper was also charged with helping her husband launder and hide the source of the illicit funds, facing a maximum of five years in prison for two counts.
- Besides, the couple agreed to pay an almost $73M fine combined.
- Prosecutors said some of the stolen funds went to buy NFTs, gold, and Walmart gift cards after the two created online accounts using fake identities to hide the trail of transactions.
Zoom Out: - When Bitfinex was hacked in 2016, Bitcoin's price was under $1,000.
- Since then, the leading cryptocurrency has seen many ups and downs and is currently traded at the $29,000 level.
|     | |
| 2 | |  What the numbers say: Coinbase, the largest U.S. crypto exchange, has recently reported $707.9M in total revenue for Q2 2023, beating analysts' expectations of $628M. The figure represents a slight drop from the $722.5M revenue in Q1 and a 10% yearly decrease from $808.3M in the same period last year. Despite the slight decrease in the company's revenue, Coinbase shares (COIN) have increased by 160% since the beginning of 2023.
Relevance: Coinbase's quarterly total revenue decreased mainly due to a legal conflict between the company and the U.S. Securities and Exchange Commission (SEC). Within Q2, the agency filed a 101-page complaint against Coinbase over alleged U.S. securities law violations, labeling some tokens listed on the exchange as unregistered securities. The regulator also claimed that Coinbase is unlawfully operating as an exchange, a broker-dealer, and a clearinghouse at the same time without registration with the agency. However, it is subject to U.S. securities laws. In response, Coinbase argued that even if all the allegations in the lawsuit are true, they are beyond the SEC's legal authority, citing the SEC Chair Gary Gensler's testimony from 2021 when he said only Congress had the power to regulate the crypto industry. In its Q2 2023 earnings call, the company also said it plans to file a legal motion to dismiss the lawsuit. Brands that should care: The U.S. regulators, including the SEC, the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), and federal prosecutors, have recently increased their crackdown on the crypto industry. Within the last several months alone, many other crypto exchanges, such as Binance, Kraken, Gemini, and Bittrex, also came under fire by the federal agencies. | | | |
| A message from our sponsor, Adobe. |  | | Teamwork can take success to new heights — learn how on Adobe’s new podcast. Without the backbone of strong team collaboration, the brands and businesses we see around us every day wouldn’t exist. Even the most successful organizations — like Fortune 500 companies and championship-winning sports teams — have honed their approach to teamwork. In Season 1 of Adobe’s The Power of Teamwork podcast, we heard how the lighting and costume creatives at Amazon’s The Marvelous Mrs. Maisel collaborated to create an award-winning show. The experts at HelloFresh talked us through the delicate team balance to create environmentally conscious and delicious meals. And the design innovators at Lemonade Insurance showed us how they leverage AI to assist members of their team and make insurance more accessible. Every episode dives deep into how cross-functional collaboration, a strong internal team culture, and structural efficiencies lead to business success. Don't miss out on the stories of how Success starts with We. Listen Now | |
|
| 3 | | The U.S. Securities and Exchange Commission (SEC) has taken enforcement action against Utah-based crypto company Digital Licensing Inc., which operates as DEBT Box, temporarily freezing the firm's assets and issuing a restraining order. The agency accused the company of conducting a $50M fraudulent crypto scheme. More: - The firm's four principals were named as defendants, along with 13 other people.
- In its complaint, the regulator labeled node licenses sold by DEBT Box since March 2021 as unregistered securities.
- DEBT Box defines itself as a decentralized eco-friendly blockchain meeting crypto with commodities and sells software mining licenses that are activated before beginning mining.
- In return, the buyers are promised daily rewards through various projects from several industries, such as real estate, agriculture, and technology.
- The SEC claimed that DEBT Box deceived investors by saying these nodes would generate new tokens through mining, and the nodes actually obscure the fact that the company created the total supply using blockchain code.
- The agency seeks permanent injunctions, return of ill-gotten gains, and civil penalties against the firm.
- Following the asset freeze, the company's native token DEBT declined by 52%.
| | | |
| 4 | | The U.K.-based neobank and financial technology (FinTech) company Revolut has announced that it would halt offering its crypto services in the U.S., citing the evolving regulatory landscape and uncertainties surrounding the crypto market in the country. The decision will take effect as of Sept. 2, with U.S. customers unable to purchase any cryptocurrencies on Revolut. More: - The comprehensive restriction will start on Oct. 3, and as of this date, the users in the U.S. will no longer be able to buy, sell, or hold any crypto on the platform.
- The firm has informed all its U.S. customers through email.
- Revolut's operations outside the U.S. will not be affected by the decision, and non-U.S. customers will be able to continue to use the firm's crypto services.
- The move came a month after Revolut announced that it would delist Cardano (ADA), Polygon (MATIC), and Solana (SOL) tokens in the U.S. as of Sept. 18, citing changing laws and regulations in the country.
Zoom Out: - Revolut's latest decision also followed two consecutive lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against major crypto exchanges, Binance and Coinbase, over alleged U.S. law violations.
- In the lawsuits, the agency labeled more than a dozen tokens listed on these exchanges as unregistered securities, causing several platforms, including Revolut, eToro, and Robinhood, to delist some of those tokens.
- Within the last several months alone, many other crypto exchanges, such as Kraken, Gemini, and Bittrex, also faced increased scrutiny by U.S. regulators.
| | | |
| A message from our sponsor, NativePath. |  | | Say Goodbye to Dry Eyes, Stiff Joints, Aging Skin, and Varicose Veins This powerful Antarctic Krill Oil supplement from NativePath is formulated to address these common health issues. With a potent combination of krill oil, astaxanthin, and vitamin D3, its ingredients work together to promote healthy skin, reduce inflammation, and improve brain function. Natural and effective, it helps you feel your best by alleviating joint pain, dry eyes, and discomfort faster than over-the-counter anti-inflammatories. But that's not all – NativePath's mission is to help people live their healthiest lives possible. They believe that eating, moving, and living in harmony with the natural state is key to achieving optimal wellness. That's why they offer truly native products—or as close to nature as humanly possible, to help people look and feel their best. Stop suffering from joint pain, dry eyes, and discomfort. Try NativePath's Antarctic Krill Oil today for 66% off. Buy Now | |
|
| 5 | | Crypto exchange Binance's CEO, Changpeng Zhao (CZ), has announced that the platform recently surpassed 150 million users. The new figure means that the popular crypto exchange increased its user base by 22 million people in just three months compared to 128 million in early May. More: - The surge in the user number came despite an increased regulatory crackdown worldwide on the exchange.
- Over the last several months, Binance has come under intensified scrutiny by regulators worldwide, including the U.S., Australia, France, and Belgium.
- The company also recently withdrew from several markets in the West, including Canada, Austria, the Netherlands, Cyprus, the U.K., and Germany, mainly due to compliance issues.
- However, the platform is still the world's largest crypto exchange by trading volume.
Zoom Out: - Last month, Zhao also announced that they were doing a lot of preparation to make their systems ready for higher volumes over the next six to 18 months.
- The renowned CEO expects more increase in trading volumes due to upcoming events like the Bitcoin halving next year, which is expected to decrease the total amount of Bitcoins that can be mined daily by half, triggering a price jump.
| | | |
| 6 | | The Bank of Russia (BoR), the country's central bank, has unveiled the official logo of its central bank digital currency (CBDC), or the digital ruble. The logo features an international ruble symbol in a circle with basic color combinations of red and white or black and white. More: - The BoR also announced the commission fees to be charged for different operations with the CBDC.
- According to the announcement, the central bank will charge no fees for any service until the end of 2024.
- As of the beginning of 2025, the bank will charge each business-to-business transaction 15 rubles ($0.16).
- Besides, individuals will start paying 0.3% of the total transaction amount as a fee while transferring to commercial accounts and 0.2% while paying for civil services.
- Russian President Vladimir Putin officially signed the country's digital ruble bill into law in July, authorizing the BoR to launch the first CBDC pilot in Russia with real consumers in August as the primary operator of the digital ruble infrastructure.
- The regulatory framework sees the digital ruble as a payment and transfer method rather than an investment instrument, which means that Russian CBDC users cannot open savings accounts.
- Besides, the government will not force Russian citizens to use the CBDC; it will be a completely voluntary choice.
- The BoR does not expect the digital ruble to move to the mass rollout for all Russian citizens before 2027.
| | | |
| 7 | | Quick Hits: - The AWS Cookbook - packed with practical insights and hands-on examples - is a must-have for your cloud toolkit.*
- Crypto custody firm BitGo has hired a former executive of the bankrupt crypto lender Genesis, Matthew Ballensweig, to lead the operations of its newly-launched Go Network.
- Twitter founder Jack Dorsey's digital payments company Block has reported a 34% annual increase in Bitcoin (BTC) sales on its mobile payment app, Cash App, for Q2.
- American actor Adam DeVine has appeared in a new advertising video by the crypto exchange Bitget.
- How to score a spoke-tacular deal on your next set of wheels. Upway will deliver a top-notch e-bike right to your door for up to 60% less than retail. Use code INSIDE for $150 off.*
*This is a sponsored post. | | | |
| Upcoming Events | | OCT
4 | | Join this free hybrid event in Amsterdam and you'll hear from industry experts at Meta, Opera, AdGuard, Mozilla, Google, and more. | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | | NOV
7 | | Join 300+ CCOs and senior leaders from Amex, Verizon, Hilton, Wells Fargo and more at Reuters Events: Customer Service & Experience East 2023. | | | | | | * This is a sponsored event | | | |
Term of the Day Term sheet: Term sheets summarize the basic terms and conditions of an investment between a startup and an investor, such as a venture capital firm. Question of the Week Have you ever regretted a career decision? What would you have done differently? Join the conversation |
INSIDE CRYPTOCURRENCY LEADERBOARD (30 DAYS) |
 | Staff Writer | | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. | | This newsletter was edited by Christopher Hachey | |
| |
| |
|
| |
|
| |
Comments
Post a Comment