Crypto Guides, Knowledge & Insights

FTX 2.0 Coalition: FTX Seeks Court Resolution for Genesis Claim Dispute and Resolves $175 Million Cu

The FTX 2.0 Coalition, representing FTX creditors, has stated on Twitter that FTX is seeking a court resolution to settle a $175 million claim dispute with Genesis, waive $175 million in customer claims, and address the nearly worthless Alameda claim. The claim amount has decreased from an initial $3.9 billion to $2 billion, making it undoubtedly one of the most unfavorable deals to date, particularly considering the ongoing Department of Justice investigation into DCG and Genesis.　　Even though Genesis claim amount remains higher than FTXs claim amount, the balance of Genesis loan has inflated due to interest earned from loans to Alameda and others.　　In 2022, Alameda used billions of FTX customer funds to repay Genesis. The crypto assets they hold can be directly traced back to FTX customer deposits. It is expected that the UCC will oppose this “transaction.”　　Earlier on August 5th, according to Bloombergs sources, the office of New York Attorney General Letitia James requested information from former executives of cryptocurrency lending firm Genesis. Michael Patchen, former Chief Risk Officer of Genesis, has recently been questioned. Federal prosecutors and the U.S. Securities and Exchange Commission (SEC) have initiated investigations and sought interviews with potential witnesses from Genesis and its parent

2023-08-18Deep Dive

Layer 2 Shibarium Moved To Insecure Mode And Stopped Working For Upgrades

Key Points:　　Layer 2 Shibarium announces that the network has entered unsafe mode and is down to ensure the safety of due funds.　　The Shibarium developers and the Unity team are working on an extensive upgrade.　　$1.7 million stuck in a cross-chain bridge is safe, and more info will be updated tomorrow.　　Kaal Dhairya, a core member of the development team of Shibarium, the Layer 2 Ethereum network launched by Shiba Inu, posted that the network has gone into failsafe mode and shut down to ensure the safety of the due funds.　　The problem was caused by traffic exceeding expectations after Shibarium went online. Currently, the Shibarium developers and the Unity team are working on an extensive upgrade.　　“Knowing the issue, we called in the support of some powerful frens (who we will name later with their permission) to help, alongside our Shibarium devs and the Unification team who have spent tireless hours working to scale our beloved blockchain. We have identified multiple possible plans of action, and will keep you updated as we execute to bring up the blockchain.”　　The project also claims that the “pause” funds in the bridge are safe and has therefore chosen to “insurance” the total $2 million in case of any

2023-08-18Deep Dive

CoinDesk Confirms Layoffs This Week, Including Reporter Who Sparks FTX Breaking News

Key Points:　　CoinDesk trims its editorial team by 20 amidst cost-cutting efforts.　　Tracy Wang, one of the people who brought the FTX event to light, was also among these employees.　　Blockchain investors lead acquisition talks for CoinDesk at $125 million.　　CoinDesk, a prominent cryptocurrency media outlet, has recently undertaken staff layoffs, as reported by Marc Hochstein, the event planner of the encrypted media company.　　The cutbacks were confirmed by CoinDesk officials, who echoed Hochsteins sentiments about the journalistic contributions of the affected employees.　　Tracy Wang, who won The George Polk Awards in Journalism, and other editors and reporters are among these staff members. Wang is a journalist with great merit for revealing the shadiness of the billion-dollar FTX empire last year.　　Hochstein cited the former employees contributions to journalism and called on other companies to recruit them. CoinDesk officials also confirmed the matter by reposting the post.　　These developments emerged after sources familiar with the matter indicated that CoinDesks parent company, Digital Currency Group (DCG), intended to introduce strategic investors.　　Approximately 45% of its editorial team, equating to 20 individuals, were affected by the layoffs, part of DCGs broader strategy to optimize expenditures and enhance profitability, according to a report by The Block.　　An investor consortium led by blockchain investors

2023-08-18Deep Dive

Bitcoin Drops Below $28,000, Over $220 Million Liquidated In The Last 24 Hours

Key Points:　　Bitcoins value falls below $28,000, with a 4% drop in 24 hours.　　$31.33 million in liquidation was reported, with BTC leading at $21.08 million.　　Market uncertainty grows as the SEC delays decisions on Bitcoin ETFs; the broader market follows suit with declines.　　The value of Bitcoin (BTC), the largest cryptocurrency, has slipped beneath the $28,000 mark, hitting a current trading price of $27,928, signifying a decrease of over 4% within a 24-hour span.　　Recent data from Coinglass has revealed substantial liquidation activity across the market in the last hour, totaling $31.33 million.　　Among these, BTC‘s liquidation amounted to approximately $21.08 million, while Ethereum’s liquidation stood at around $3.75 million. Notably, Binance and OKX exchanges contributed nearly 50% of these liquidation figures, with Bitmex accounting for almost 18%.Source: CoinGlass　　This occurrence marks the first instance in nearly two months that Bitcoin has registered a value below $28,000. Interestingly, throughout July, Bitcoin remained relatively stable, but todays sharp decline has piqued attention.BTC price chart. Source: TradingView　　Analysts are attributing this sell-off to the deliberation process of the U.S. Securities and Exchange Commission (SEC), the key regulator for Wall Street.　　The SEC‘s review of several high-profile Bitcoin ETF applications is believed to have contributed to the market’s uncertainty. There is

2023-08-18Deep Dive

Dubai Slaps $2.8 Million Fines On OPNX Exchange And Founders

Key Points:　　Dubai fines the OPNX exchange and its founders $2.8 million for market rule breaches.　　OPNX was hit with a $2.7 million fine; the founders smaller penalties were paid.　　VARA to take further steps against founders for unpaid fines and compliance.　　Dubais Virtual Assets Regulatory Authority (VARA) has imposed fines totaling nearly $2.8 million on the founders of the crypto exchange OPNX and the exchange itself as part of the ongoing crackdown on cryptocurrency-related activities.　　The co-founders, Kyle Davies and Su Zhu, who also played roles in the failed crypto hedge fund Three Arrows Capital (3AC), faced penalties due to violations of market regulations.　　VARA issued a notice on Wednesday detailing the fines, indicating that the co-founders and their exchange were fined for multiple infringements.　　The regulator fined OPNX a significant amount of 10 million dirhams (approximately $2.7 million) for failing to adhere to market regulations. Notably, this fine remains unpaid at the time of the notices publication.　　Furthermore, Davies and Zhu, OPNX co-founder Mark Lamb, and CEO Leslie Lamb faced separate penalties of $54,000 each. These fines were related to their failure to meet the standards set by the regulator for marketing, advertising, and promotional activities.　　However, these penalties were promptly paid by the parties involved.　　Despite the

2023-08-17Deep Dive

Proposed Revision of Spark Protocol Revenue Sharing Agreement by MakerDAO Founder to Ensure 10% Quar

On August 17th, Rune Christensen, the founder of MakerDAO, recently introduced multiple MIP sub-proposals to the community. Among these proposals is the formalization of the income-sharing mechanism between the Spark Protocol and Aave. This initiative aims to address shortcomings within the Maker ecosystem protocol and align it with intended behavior.　　According to the proposal, the Spark Protocol is required to pay 10% of the revenue generated from its lending functionality operated based on the Aave codebase. These payments are to be manually calculated by the coordinators of SparkDAO at the end of each quarter and manually transferred from SparkDAOs surplus buffer to DAI within the smart contracts governed by Aave governance.　　Furthermore, prior to the release of SubDAO tokens, Maker Governance will temporarily assume the responsibility of representing the Spark Protocol in paying the “virtual revenue share.” Once the SubDAO tokens are issued, the virtual revenue sharing mechanism will no longer be in effect, and the standard rules of the Spark Protocol Aave income-sharing ecosystem agreement will be implemented instead.　　

2023-08-17Deep Dive

Dubai Regulatory Authority Imposes Fines of Approximately $2.7 Million on OPNX and Around $55,000 on

According to a report by Bloomberg, the Dubai Virtual Assets Regulatory Authority has indicated that in the latest enforcement action against OPNX, a newly established digital asset trading platform founded by co-founders of the bankrupt Three Arrows Capital, a fine of 10 million dirhams (approximately 2.7 million USD) was imposed on the company in May, but remains unpaid.　　Furthermore, the regulatory body in Dubai has stated that Su Zhu and Kyle Davies, along with the two co-founders of OPNX, have been individually fined 200,000 dirhams (approximately 54,451 USD) for non-compliance with marketing, advertising, and promotional rules.　　

2023-08-17Deep Dive

ConsenSys Establishes Linea Ecosystem Investment Alliance (EIA)

On August 17th, ConsenSys announced the establishment of the Linea Ecosystem Investment Alliance (EIA). The alliance boasts a membership of over 30 venture capital firms, including notable names like Amber Group, Animoca Brands, BlockTower Capital, Fenbushi Capital, Huobi Ventures, and IOSG Ventures. This collaborative initiative is set to provide support for projects that leverage Linea to reimagine applications in various sectors such as finance and payments, gaming and entertainment, as well as community and identity.　　Linea (formerly known as ConsenSys zkEVM) was developed and designed by ConsenSys and is operated under their purview. It offers full compatibility with the Ethereum Virtual Machine (EVM). Lineas primary objective is to become a “bytecode-compatible level” zkEVM, enabling developers to build and maintain applications more seamlessly on Layer 2.　　

2023-08-17Deep Dive

Singapore Police Arrest Over 10 People For $1 Billion Money Laundering Scheme

Key Points:　　Singapore police arrested more than 10 people for money laundering and forgery.　　94 real estate properties and a large amount of cash and cryptocurrency were seized, totaling over $1 billion USD.　　Most of those arrested were Chinese and Cambodian nationals involved in organized crime activities, including scams and online gambling.　　Singapore police recently announced the arrest of more than ten people and the search for eight suspects on suspicion of money laundering, forgery, and other offenses. Most of those arrested were Chinese and Cambodian nationals, and the police seized 94 real estate properties and a large amount of cash and cryptocurrency, involving more than $1 billion USD.　　The police received information about possible illicit activities that included the use of suspected forged documents to substantiate the source of funds in Singapore bank accounts.　　Through extensive investigations and follow-up from intelligence – including the analysis of Suspicious Transaction Reports (STRs) – the police identified a group of foreign nationals suspected to be involved in laundering the proceeds of crime from their overseas organized crime activities including scams and online gambling.　　On August 15th, 2023, more than 400 officers from various departments conducted simultaneous raids at multiple locations islandwide, including residences such as Good Class Bungalows (GCB)

2023-08-17Deep Dive

New Shibarium Mainnet Transactions Suspended, $1.7 Million Currently Locked

Key Points:　　Transactions on the Shibarium mainnet are stuck in a pending state.　　There are currently more than 954 ETH, equivalent to $1.7 million, locked in a bridging contract that cannot be withdrawn.　　After months of testing with millions of users, layer-2 Shibarium has officially entered todays mainnet phase.　　The warning from Twitter @shroom_daddy received much attention from the community about his suspicions about the hit layer 2. This person questioned what Shibarium was doing, from RPC to how bridging works…　　On-chain detective ZachXBT also commented on the comments and said that there are currently more than 954 ETH, equivalent to about $1.7 million, locked in bridging contracts that cannot be withdrawn.　　For the current state of the network, users are advised to stop using Shibarium for now temporarily.　　After months of testing with millions of users, the game development-oriented layer-2, and metaverse Shibarium has officially entered the mainnet phase following todays announcement by the developers.　　The network impressed when it attracted more than 21 million wallets participating in the beta testing phase. This helps it position Shiba Inu as a DeFi heavyweight by providing enhanced throughput and reduced transaction fees, even lower than Polygon (MATIC). Shibarium aims to improve the efficiency and user experience of decentralized application

2023-08-17Deep Dive

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