NY sues crypto firms, FTX’s Nishad faces 75 years in jail, and Grayscale’s new BTC filing: Hodler’s Digest, Oct. 15-21

Top Stories This Week

Grayscale files for caller spot Bitcoin ETF connected NYSE Arca

Major cryptocurrency concern steadfast Grayscale Investments has filed a caller application with the U.S. Securities and Exchange Commission for a caller spot Bitcoin exchange-traded money (ETF). The caller filing aligns with Grayscale’s ongoing effort to person its Grayscale Bitcoin Trust into a spot Bitcoin ETF, according to a connection from the firm. The quality comes weeks aft Grayscale won an SEC suit for its spot Bitcoin ETF review, with a tribunal of appeals ordering the SEC to explicate wherefore it rejected Grayscale’s exertion successful June 2023. The institution besides filed with the SEC to database an Ether futures ETF successful September.

New York Attorney General sues Gemini, Genesis, DGC for allegedly defrauding investors

New York’s lawyer wide has filed a suit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding much than 23,000 investors done the Gemini Earn concern program. The suit claims that Gemini assured investors that the programme was a low-risk investment, portion investigations carried retired by the bureau of New York State Attorney General Letitia James recovered that Genesis’ financials “were risky.” The suit besides charges Genesis’ erstwhile CEO, Soichiro Moro, and its genitor company’s CEO, Barry Silbert, with defrauding investors by attempting to conceal much than $1.1 cardinal successful losses. In addition, the tribunal lawsuit looks to prohibition Gemini, Genesis and DCG from operating successful the fiscal concern manufacture successful New York.

Former FTX engineering manager faces up to 75 years successful situation pursuing blameworthy plea

Nishad Singh, the erstwhile engineering manager astatine now-defunct crypto speech FTX, faces up to 75 years successful prison for charges related to defrauding users of the crypto exchange. He pleaded blameworthy to fraud charges arsenic portion of his practice statement with the U.S. prosecutors. During his grounds this week, Singh said that erstwhile liquidity issues astatine FTX began successful November 2022, helium felt “suicidal for immoderate days” portion dealing with alleged inconsistencies betwixt the exchange’s nationalist statements and its activities down the scenes. Singh besides claimed that Bankman-Fried had the wont of deciding connected purchases done Alameda Research by himself.

Binance shutting down European Visa debit paper successful December

Binance Visa debit paper services will adjacent down successful the European Economic Area successful December, marking the latest setback for Binance. The termination of the paper services was announced a time aft the speech restored euro deposits and withdrawals, which had been unavailable for a period aft payments processor Paysafe dropped the exchange. Binance is inactive not onboarding caller users successful the United Kingdom owed to the nonaccomplishment of a third-party work provider.

Elon Musk, Mark Cuban squad up to contention SEC proceedings strategies

Elon Musk, Mark Cuban and others have collaboratively submitted a shared amicus brief to the Supreme Court of the United States to rise concerns astir the U.S. Securities and Exchange Commission’s (SEC) attack to conducting interior proceedings without the inclusion of juries. The discourse of this ineligible situation centers astir the SEC vs. Jarkesy case. George Jarkesy argues that the SEC’s interior adjudication process, which lacks a assemblage and is overseen by an administrative instrumentality justice appointed by the commission, contradicts his Seventh Amendment rights. Effectively resulting successful a azygous entity fulfilling the roles of judge, assemblage and enforcer.

Winners and Losers

At the extremity of the week, Bitcoin (BTC) is astatine $29,590, Ether (ETH) astatine $1,607 and XRP astatine $0.52. The full marketplace headdress is astatine $1.12 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the apical 3 altcoin gainers of the week are Bitcoin SV (BSV) at 59.00%, Stacks (STX) at 25.91% and MX TOKEN (MX) at 25.26%. 

Most Memorable Quotations

“We are each portion of a bigger game, and Bitcoin is 1 of the strongest levers successful that.”

Edward Snowden, technologist and whistleblower

“Using publically disposable accusation to larn is not stealing. Nor is it an penetration of privacy, conversion, negligence, unfair competition, oregon copyright infringement.”

Google

“I felt betrayed, thing I’d enactment successful blood, sweat and tears for 5 years turning retired truthful horrible.”

Nishad Singh, erstwhile engineering manager of FTX

“The games funded 2 years agone are going unrecorded implicit the adjacent 12 months. We volition spot hits.”

Robbie Ferguson, co-founder and president of Immutable

“After extended DAO forum treatment followed by assemblage vote, the sunsetting of the Lido connected Solana protocol was approved by Lido token holders and the process volition statesman shortly.”

Lido Finance

“Any innovation — particularly this 1 with fiscal impact, taste worth and presumption — volition pull questioning during its downs.”

Anjali Young, co-founder of Collab.Land

Prediction of the Week 

BTC terms hits 2-month precocious amid stake Bitcoin volition interruption $32K ‘soon’

On Oct. 20, information from Cointelegraph Markets Pro and TradingView captured caller two-month Bitcoin highs of $30,233 connected Bitstamp. BTC terms showed continued spot during the Asia trading league connected the aforesaid day, with a flimsy comedown taking the spot terms backmost beneath $29,500.

With volatility inactive evident, marketplace participants argued that a play candle adjacent was needed successful bid to found the rally’s existent staying power. For Keith Alan, co-founder of monitoring assets Material Indicators, the 100-week moving mean (MA) astatine $28,627 was of peculiar importance.

“This determination is 1 to watch, but what I’m watching for close present is to spot if this Weekly candle closes supra the 100-Week MA and if adjacent week’s candle tin enactment supra it with nary wicks below,” Alan wrote successful portion of an X station connected the day. “Some mightiness see that a confirmation of a bull breakout, but this marketplace is known for squeezes and fake outs truthful I’m looking for much confirmations. For maine BTC volition besides request to instrumentality retired anterior absorption astatine $30.5k, $31.5k and yet $33k to telephone a bull breakout confirmed and validated.”

FUD of the Week 

Fantom Foundation blistery wallet hacked for $550K

The Fantom Foundation, the developer of the Fantom network, has been hacked for implicit $550,000 worthy of cryptocurrency. The instauration confirmed the onslaught connected X, claiming that astir of the funds stolen belonged to different users and that 99% of the foundation’s funds stay safe. Blockchain information researchers initially reported that the attacker stole astir $7 cardinal successful crypto. The Fantom Foundation aboriginal released an authoritative connection saying that immoderate of the wallets labeled “Fantom: Foundation wallet” were mislabeled by artifact explorers and that not each the stolen funds were from the foundation.

TrueCoin’s third-party vendor breach perchance leaks TUSD idiosyncratic data

TrueUSD (TUSD) announced a imaginable leak of definite Know Your Customer (KYC) and transaction past information aft 1 of TrueCoin’s third-party vendors was compromised. The institution was the relation of the TUSD stablecoin until July 13, 2023. The interaction of the onslaught and the resultant information leak is yet to beryllium identified, arsenic the full fig of users’ information was not revealed during the announcement. Data collected from specified breaches — names, email addresses and telephone numbers, among others — are typically utilized for phishing attacks. Attackers scope retired to unwary investors by mimicking assorted crypto services, often promising precocious profits successful abbreviated amounts of time.

Web3 crippled task allegedly hired actors to airs arsenic executives successful $1.6M exit scam

The improvement squad for gaming task FinSoul carried retired an alleged exit scam, siphoning distant $1.6 cardinal from investors done marketplace manipulation, according to a caller study from blockchain information level CertiK shared with Cointelegraph. The FinSoul squad allegedly hired paid actors to unreal to beryllium its executives, past raised funds for the sole intent of processing a gaming platform. However, alternatively of really creating the platform, the FinSoul squad allegedly transferred $1.6 cardinal successful bridged Tether from investors to itself. Blockchain information indicates developers past laundered the funds done cryptocurrency mixer Tornado Cash.

Big Questions: What did Satoshi Nakamoto deliberation astir ZK-proofs?

What was erstwhile a passing involvement of Bitcoin inventor Satoshi Nakamoto, zero-knowledge-proof exertion is present a large portion of the crypto world.

Ethereum restaking: Blockchain innovation oregon unsafe location of cards?

“Restaking” involves reusing staked Ether to gain fees and rewards. The restaked tokens tin past assistance unafraid and validate different protocols. But galore fearfulness restaking could disrupt Ethereum’s concatenation itself.

Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express

Bitmain allegedly fires staff for speaking retired against wage cuts, Hong Kong investors suffer religion successful crypto aft JPEX scandal, Bitget gets a caller crypto recognition paper and more.