Crypto Guides, Knowledge & Insights

Ireland Drafting Urgent Crypto Laws Before EU Money-Laundering Rules

Ireland is preparing to draft “urgent” cryptocurrency regulations ahead of upcoming European Union Anti-Money Laundering and terror financing standards.　　Irelands Finance Minister, Jack Chambers, told the cabinet that urgent legislation would be drafted to update crypto regulations before the EU laws take effect on Dec. 30, the Irish Examiner reported on Oct. 16.　　No details were shared about the new crypto legislation or when it might come into force.　　The EUs “Anti-Money Laundering and Countering the Financing of Terrorism Act” will enhance the powers of financial intelligence units, enabling them to suspend transactions.　　It will also impose stricter reporting requirements for crypto exchanges and a 10,000 euro ($10,850) limit on cash payments. There will be more stringent monitoring of large transactions and new reporting requirements for high-value transactions.　　The legislative framework covers a range of areas posing risks, including crypto assets and crowdfunding. It also “complements other regulations such as Markets in Crypto-Assets Regulation (MiCA),” the European Commission noted earlier.　　In September, Derville Rowland, deputy governor of the Central Bank of Ireland, said that the country aims to stay at the forefront of safe innovation through MiCA.　　She said that crypto regulations were essential for Europe to become a global leader in adapting and adopting new technologies.　　The

2024-10-18Deep Dive

Gotbit CEO Arrested: Unveiling the Force Behind the “MEME Season”

According to previous reports, on October 9, the U.S. Securities and Exchange Commission (SEC), the FBI, and the Department of Justice (DOJ) jointly filed lawsuits against four crypto companies, including Gotbit Consulting, ZM Quant Investment, and CLS Global, accusing them of self-trading market manipulation and multiple crimes related to cryptocurrencies such as Saitama, Robo Inu, and NexFundAI. A total of nine individuals were charged, with some defendants agreeing to separate settlements.　　Following the announcement, several projects, including Hamster Kombat, Beercoin, and WaterCoin, clarified that they either did not use Gotbit as a market maker or had already replaced them.　　On October 16, Gotbit officially confirmed: “Our CEO, Alex Andryunin, was arrested in Portugal. Currently, we have no further details.” Reports indicate that two Gotbit employees in Russia have also been charged.　　The confirmation from U.S. authorities and Gotbit itself has drawn more attention to this market maker in the crypto industry, known for being a major force behind the “meme” trend. Why has it now come under legal scrutiny？Starting with Fake Trades, Gaining Fame through Market Making for Meme Tokens　　Gotbit was founded in 2018 during the ICO boom, when its founder Alexey Andryunin was a 20-year-old college freshman. 　　In 2019, a CoinDesk article

2024-10-17Deep Dive

The Trump Family Crypto Project WLFI Officially Launched

World Liberty Financial (WLFI) is a DeFi project initiated by Donald Trump Jr. and Eric Trump. It brings together top talents from the cryptocurrency, DeFi, finance, and technology fields, such as Steve Witkoff and Corey Caplan. The platform aims to challenge the traditional banking system by providing modern decentralized financial solutions, addressing the lack of innovation, transparency, and inclusiveness in the current financial industry. WLFI is also closely tied to Donald Trumps 2024 presidential campaign, with investments in WLFI tokens seen as a political bet on his election victory.　　Despite gaining significant attention, especially from crypto enthusiasts and Trump‘s political supporters, the project has been controversial due to concerns about its co-founders’ backgrounds and the token‘s centralized tokenomics. Furthermore, the project’s roadmap is unclear, and its long-term prospects are met with skepticism. However, as the election approaches, WLFI could become a new fundraising channel to support Trumps campaign.　　According to the roadmap shared with potential investors, WLFIs first token sale aims to raise $300 million, with 20% of the token supply sold at a fully diluted valuation of $1.5 billion.Terms　　According to the website, $WLFI tokens are only sold to non-U.S. users.　　The main sales terms and conditions are as follows:　　1. $WLFI is for

2024-10-16Deep Dive

TD Bank Fined $3 Billion for Failing to Report Suspicious Cryptocurrency-Related Activities

On October 10, 2024, TD Bank was fined $1.8 billion by the U.S. Department of Justice and $1.3 billion by the Financial Crimes Enforcement Network (FinCEN), totaling $3.09 billion, for violations of the Bank Secrecy Act (BSA) and deficiencies in its anti-money laundering (AML) programs. This marks the largest fine ever under the BSA. TD Bank admitted to failing to meet its AML obligations, which led to significant illicit money flows, resulting in this substantial penalty after a nine-month investigation.Suspicious Transactions　　FinCEN reported that TD Bank processed over 2,000 transactions for a company labeled as “Client Group C,” purportedly involved in financial and real estate sales. Client Group C falsely claimed its annual sales wouldnt exceed $1 million, but it transacted over $1 billion through TD Bank. Notably, 90% of the funds came from UK-based cryptocurrency exchanges and were transferred to digital asset providers in Colombia, involving high-risk sectors and countries. Despite numerous suspicious transactions and red flags, TD Bank failed to report this activity until multiple law enforcement inquiries regarding Client Group C were raised.Significant Crypto Sector Penalties　　This case is not isolated. In 2022, Kraken was fined $30 million by the U.S. Securities and Exchange Commission (SEC) for not registering

2024-10-15Deep Dive

This Week's Noteworthy Events(Oct 13, 2024–Oct 20, 2024)

Token Unlocks　　Axie Infinity (AXS) will unlock approximately 9.25 million tokens on October 14 at 13:10 UTC, accounting for 6.08% of its circulating supply, valued at around $43.1 million.　　Taiko (TAIKO) will unlock around 12 million tokens on October 14 at 00:00 UTC, making up 14.99% of the circulating supply, with a value of approximately $18.7 million.　　CYBER (CYBER) will unlock approximately 890,000 tokens on October 14 at 08:00 UTC, representing 3.81% of the circulating supply, valued at approximately $2.6 million.　　Starknet (STRK) will unlock around 64 million tokens on October 15 at 00:00 UTC, representing 3.3% of the circulating supply, with an estimated value of $26 million.　　ApeCoin (APE) will unlock approximately 15.6 million tokens on October 17 at 12:30 UTC, accounting for 2.31% of the circulating supply, valued at around $11.2 million.　　Echelon Prime (PRIME) will unlock 750,000 tokens on October 17 at 00:00 UTC, representing 1.57% of the circulating supply, with a value of approximately $6.1 million.　　Pixels (PIXEL) will unlock around 54.38 million tokens on October 19 at 10:00 UTC, making up 7.05% of the circulating supply, valued at approximately $7.2 million.Trump Family Crypto Project WLFI Public Sale Details in Livestream　　The Trump familys crypto project, World Liberty Financial (WLFI), will hold a livestream

2024-10-14Deep Dive

WikiBit Industry Insight: Multiple Institutions Release Crypto Industry Reports

Market Observations　　Decline in Primary Market Financing　　The primary market remains pessimistic. According to RootData, in Q3 2024, Web3 primary market funding activities declined. There were 321 financing rounds, down 25.7% from the previous quarter, with total funding amounting to $2.406 billion, a 15% decrease from the prior quarter. Venture capital transaction activity (measured by monthly deal count) fell to the lowest in four years.　　Security Incidents　　The blockchain sector continues to face severe security challenges. According to Certiks Q3 security report, there were 155 security incidents during this period, with total losses amounting to $753.09 million. Although the number of incidents decreased by 27 compared to Q2 2024, the total loss increased by 9.5%.　　Industry Challenges　　The issue of high token valuations and low initial circulation ratios has been a subject of intense debate since its introduction. Binance, in its latest industry observation report, again mentioned the problem of overvaluation in primary market projects. Additionally, the report highlighted that projects still have significant room for improvement in transparency, centralization, and token distribution during their operations.　　Market Share of Centralized Exchanges　　According to CCData, overall trading volume in the crypto sector in September fell to its lowest level since June. Last month, Binances combined market share for spot

2024-10-12Deep Dive

Certik Releases Q3 Security Report for the Web3 Industry

The blockchain industry continued to face significant security challenges in the third quarter of 2024. According to Certiks Q3 Security Report, there were 155 security incidents during this period, resulting in total losses of $753.09 million. Compared to Q2 2024, although the number of incidents decreased by 27, the amount of losses increased by 9.5%. These figures indicate that while the frequency of security incidents has decreased, the average loss per incident has risen, reflecting the increasing complexity and sophistication of attack methods. Large-scale phishing attacks and private key leaks, in particular, have caused substantial losses for users and businesses, raising widespread concerns within the industry regarding security issues.Analysis of Security Incident Types and On-Chain Distribution　　In the third quarter, phishing attacks were the most prevalent, involving 65 incidents and causing approximately $343.09 million in losses. These attacks often exploit user negligence, impersonating legitimate websites or wallets to steal users private keys and sensitive information. Additionally, private key leaks represented another significant threat, resulting in $324.4 million in losses from just 10 incidents, each with considerable financial damage, highlighting their high destructive potential. Besides these primary types, other attack methods, including smart contract exploits and exchange hacks, also impacted the market

2024-10-11Deep Dive

Q3 2024 Crypto Industry Funding Overview

Overall Situation　　According to data from RootData, Q3 2024 showed a downward trend in Web3 primary market funding activities. The quarter saw 321 funding rounds, a decrease of 25.7% from the previous quarter, with a total funding amount of $2.406 billion, down 15.0% compared to the last quarter.　　The infrastructure sector continued to lead, with total funding of $745 million, accounting for 30.9%. Notably, the “Others” category (excluding infrastructure, DeFi, NFT, gaming, CeFi, DAO, social, and tools) reached a total funding amount of $453 million, making up 18.8% of the total. This trend was driven by several factors, including the sustained popularity of the Meme sector this quarter, the rise of AI-Web3 integration projects, and the continuous expansion of DePin and the Bitcoin ecosystem. Investors and the market are seeking new narratives and innovation.　　The largest single funding round this quarter came from Bitcoin mining company Iris Energy, raising $413 million. Notably, among the top 10 funding projects, M&A transactions accounted for a total of $681 million, making up 57.5% of the total.Investment Institutions　　Robot Ventures was the most active investor this quarter, with 22 investments. Among the 12 institutions that made more than 10 investments, infrastructure remained the most favored sector, with DeFi-related

2024-10-10Deep Dive

FTX Reorganization Plan Approved, Creditors May Receive Compensation Before Year-End

On October 7, 2024, FTX Trading Ltd. (operating as FTX.com) and its affiliate debtors announced that the U.S. Bankruptcy Court for the District of Delaware confirmed their reorganization plan, less than two years after their historic bankruptcy filing.Asset Value　　In filings on May 8, FTX reported that since filing for bankruptcy, they have recovered and liquidated assets valued between $14.5 billion and $16.3 billion. Under the reorganization plan, approximately 98% of creditors will receive around 119% of their approved claims within 60 days after the plan becomes effective, subject to KYC requirements. The distribution includes assets managed by FTXs Chapter 11 debtors and various partners like FTX Digital Markets, Ltd. (Bahamas) and FTX Australia.　　Read more on WikiBitPayment Timeline　　With the plans approval, FTX aims to compensate 98% of users within 60 days post-activation of the plan. While the plan is approved, the effective date is not yet determined. FTX creditor Mr. Purple has suggested two timelines: an activation on October 31, potentially allowing payments before year-end, or delays extending payments to early 2025 due to the reserve fund motion expected in November or December.Impact on FTT　　Following the plans approval, FTT surged past $3.4, reaching a peak of $3.43 before stabilizing at $2.49.Broader

2024-10-08Deep Dive

IcomTech Founder David Carmona Sentenced to 10 Years for Cryptocurrency Ponzi Scheme

IcomTech founder David Carmona was sentenced to close to 10 years in prison after prosecutors called the firm a crypto Ponzi scheme and said he “preyed upon working-class people.”　　Carmona, 41, was sentenced on Friday to 121 months in prison by U.S. District Judge Jennifer L. Rochon, according to a statement released by the U.S. Attorneys Office for the Southern District of New York. Carmona previously pleaded guilty to one count of conspiracy to commit wire fraud.　　Carmona started IcomTech in 2018 along with others and said it was a crypto mining and trading company. The firm promised to garner profits for investors if they bought certain “purported cryptocurrency-related investment products,” prosecutors said. That didnt happen. Instead, prosecutors say IcomTech did not participate in mining or trading for its investors and instead used the money to pay other investors and to use for themselves.　　“David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money,” said U.S. Attorney Damian Williams in a statement.　　Carmona and others “hosted lavish expos,” tried to get people interested in investing and bragged about how much money they were earning, prosecutors said.　　“IcomTech promoters

2024-10-06Deep Dive