Cryptocurrencies To Watch

Author: Chris Lion

  • SUI Price Rally Triggers Allegations of $400M Insider Selling

    SUI Price Rally Triggers Allegations of $400M Insider Selling

    SUI, the native token of the Sui blockchain, saw a dramatic surge in its price over the past week, triggering concerns about potential insider trading.

    Pseudonymous crypto analyst Light noted that wallets linked to the wallet SUI initial coin offering (ICO) have allegedly sold over $400 million worth of tokens during the rally.

    “insiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up, had already begun selling material amounts at much lower prices, and are even accelerating their selling at these more elevated levels,” Light said.  

    Can SUI Rally Continue Despite the Selling?

    While the Sui token could continue in its bullish momentum, Light noted that it is unsettling that the individuals developing the Sui ecosystem, who arguably understand the token’s actual value better than anyone, are offloading hundreds of millions of dollars worth of tokens to less informed buyers driven by market hype.   

    “As some of us have learned, whether now or later, as with most of these games where retail buys from insiders, there is only one ending,” the crypto analyst said. 

    Insiders can heavily influence their price when controlling a large portion of a crypto circulating supply. If these holders sell large amounts, it can create downward pressure on the token’s value.

    Can the Sui Network Meet the Expectations?

    Analysts also believe the Sui Network could potentially be a significant competitor to Solana and rise as a top Layer-1 blockchain due to 50% of the SUI supply, which is locked until 2030 and unallocated, unlike SOL, which is inflationary.

    The analyst further noted that Sui Network on-chain TVL has been exploding and is on track to overtake Solana TVL sooner than most think.  

    Meanwhile, the recent surge in the price of SUI underscores upward momentum. At the time of writing, SUI has risen by over 1.85% to $2.24 in the last 24 hours, boosting its market capitalization to over $6.1 billion with daily trading volumes exceeding $727 million. The asset is up over 15% in the past week.

  • Buying the Dip: BlackRock Spent $742M on Bitcoin in Two Weeks

    Buying the Dip: BlackRock Spent $742M on Bitcoin in Two Weeks

    The world’s largest asset management firm, BlackRock, has accumulated 12,272 BTC worth $742 million over the past 16 days.

    On-chain data shows that the asset manager has resumed purchasing BTC since September 24, bringing its total holdings to over 369,822 BTC, worth around $23.2 billion. The recent accumulation reflects asset managers’ increasing confidence in the crypto asset’s long-term potential.

    Last week, BlackRock recommended purchasing BTC as the US dollar weakens and loses purchasing power over time. In contrast, Bitcoin positions itself as a hedge against inflation and a solid alternative to offset the dollar’s declining value.

    Big Firms Accumulating BTC  

    BlackRock’s recent purchase is part of a more significant trend of institutional interest in Bitcoin and cryptocurrencies. Other major financial players, such as Fidelity and J.P. Morgan Asset Management, have expanded their crypto offerings recently.

    Meanwhile, other firms are actively accumulating the leading crypto asset. For instance, Metaplanet is capitalizing on bitcoin dips, having recently acquired around 108.99 BTC for ¥1 billion ($7.6 million).

    The purchase came just four days after a previous BTC acquisition earlier this week. As of October 11, Metaplanet now holds 748.50 BTC, bought for $46.7 million.

    Similarly, MicroStrategy spent $458M to acquire an additional 7,420 BTC two weeks ago. The purchase came a week after the firm acquired 18,300 BTC for $1.11 billion.

    The recent market decline has prompted experts to consider the likelihood of a 75% correction based on historical trends.

    Investors Still Optimistic About BTC

    BTC price has seen notable fluctuations recently, influenced by broader conditions and regulatory factors. Despite the price swing, many investors maintain an optimistic long-term outlook for the crypto asset.

    BTC was trading above $63,200 when writing, up 5.28% in the last 24 hours.

  • SEC’s Crypto Approach Has Been a Disaster: Commissioner Uyeda

    SEC’s Crypto Approach Has Been a Disaster: Commissioner Uyeda

    In a recent interview, Mark Uyeda, a United States Securities and Exchange Commission (SEC) commissioner, admitted that the agency’s crypto approach has been a disaster for the whole industry.

    Uyeda’s comments come after several legal battles between the SEC and crypto-related entities, including a recent lawsuit from Crypto.com against the regulator.

    The agency had earlier issued a Well Notice to Crypto.com, accusing the exchange of operating as an unregistered broker-dealer and securities clearing agency by managing tokens classified as securities.

    Crypto.com’s lawsuit claims that the SEC has exceeded its authority by imposing regulations on the crypto market without providing clear regulatory guidelines.

    The crypto exchange also noted that its primary objective is to stop the SEC’s unlawful overreach and violation of federal law.  

    Uyeda Criticizes SEC Crypto Approach

    Uyeda’s criticism of the SEC’s strategy highlights the increasing frustration within the agency and the broader crypto industry.

    “We have been sending this ‘policy through enforcement,’” Uyeda said, criticizing the SEC’s practice of pursuing legal actions against companies without providing clear instructions on how they should navigate existing regulations.

    “We’ve done nothing to provide guidance on it. As a result, this has been achieved by the courts. And different courts have ruled in different ways,” he added.

    SEC Targets Major Platforms

    In recent years, the SEC has ramped up enforcement, targeting various crypto platforms, including high-profile exchanges like Binance, Kraken, and Coinbase. The securities watchdog claims many tokens traded on these platforms are unregistered and fall under its jurisdiction.

    Exchanges have also told the agency that crypto assets are not securities. For instance, on September 13, 2024, US-based crypto exchange Kraken replied to the SEC’s charges of offering crypto asset securities and investment contracts.

    Kraken stated that the regulator violated federal securities laws and that its securities classification is unclear.

    Gensler to Respond Questions About Crypto Airdrops

    Top House Republicans also sent a letter to SEC Chairman Gary Gensler to address questions regarding categorizing crypto airdrops.

    The lawmakers contend that the lack of clear regulations surrounding airdrops could weaken the country’s competitive edge in the fast-growing digital economy.

    The Republicans asked Gensler to respond to how tokens distributed at no cost are classified under the Howey test and how the SEC differentiates airdrops from other incentives, such as credit card rewards.

  • Ireland Holds Over $378 Million BTC Seized From Drug Dealer

    Ireland Holds Over $378 Million BTC Seized From Drug Dealer

    Ireland Criminal Assets Bureau (CAB) has announced the seizure of approximately €345 million ($378 million) worth of BTC.

    The Irish authorities noted that it seized crypto assets from Clifton Collins, a drug dealer who stored the bitcoins in 12 separate wallets for the last four years. The CAB has been unable to access the Bitcoin wallet.

    The authorities also noted that the crypto asset was valued at approximately $56 million at the time of confiscation in 2020, following a decision by Ireland’s High Court that it was the result of criminal activity.

    According to the CAB, the drug dealer was ordered to surrender the crypto asset to the authorities under the proceeds of crime legislation after the police discovered a cannabis cultivation operation at his residence. A freezing order was imposed to stop any transfer of the assets.

    BTC Seed Phrases Lost in Rented Property

    Collins claimed that he concealed a document with the seed phrases for his BTC wallets inside a fishing rod case at a rental property in County Galway. He also said the case was lost during a break-in at his house, though the property’s clean-out after his arrest may have also contributed to its disappearance.

    The drug dealer initially began investing in Bitcoin in 2011, using earnings from his drug business. At the time, the cryptocurrency was trading between $0.30 and $29, and by the end of that year, its price had settled at $4.72.

    According to the CAB’s annual report, €1.2 million ($1.3 million) was recovered from Collins after confiscating assets, including 89 BTC, a fishing boat, a gyroplane, a metal detector, an electric bicycle, and several motor vehicles.

    Governments Seizing Bitcoin

    This is not the first time a country has confiscated bitcoins from criminals. Earlier this year, the German government sold some €2.6 billion ($2.9 billion) worth of BTC seized in a money laundering investigation, causing the price of the crypto asset to drop.

    The U.S. government is reportedly preparing to sell a $4.4 billion stash of BTC confiscated from the dark web marketplace Silk Road after the Supreme Court declined to hear a case regarding its ownership earlier this week.

  • SEC Charges 3 Firms, 9 Individuals in $25M Crypto Manipulation Case

    SEC Charges 3 Firms, 9 Individuals in $25M Crypto Manipulation Case

    The United States Securities and Exchange Commission (SEC) has charged three firms and nine individuals purporting to be market makers with engaging in a coordinated scheme to manipulate the prices of several crypto assets on crypto exchanges.

    According to a press release, the defendants orchestrated a trading scheme that artificially inflated the trading volume and price of multiple crypto assets, a fraud commonly known as a “pump and dump.” 

    Over $25M Confiscated

    The SEC confiscated over $25 million in crypto and shut down several trading bots that facilitated millions of dollars in wash trades across approximately 60 digital assets.

    The three market makers, ZM Quant, CLS Global, and MyTrade, and their employees are accused of participating in wash trading on behalf of NexFundAI, a crypto token created by the Federal Bureau of Investigation (FBI) as part of the government’s probe. Additionally, a fourth market maker, Gotbit, its CEO, and two directors are also facing charges for running a similar scheme. 

    While the SEC charged 12 entities, the U.S. Department of Justice (DOJ) listed 18 people facing charges in the combined cases.

    Four Plead Guilty

    The SEC noted that the defendants used a technique called “wash trading,” a form of market manipulation in which an entity simultaneously sells and buys the same financial instruments, creating a false impression of market activity without incurring market risk or changing the entity’s market position. 

    This practice is illegal because it misleads other investors into believing that an asset has a higher demand, which can artificially drive up prices.

    “With purported promoters and self-anointed market makers teaming up to target the investing public with false promises of profits in the crypto markets, investors should be mindful that the deck may be stacked against them,” said Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement.

    The report also stated that four defendants have pleaded guilty, another has agreed to do so, and the FBI has arrested three additional individuals this week in Texas, the United Kingdom, and Portugal. 

    Jodi Cohen, the special agent leading the FBI’s Boston Division, explained that this initiative aimed to uncover and interrupt the activities of alleged fraudsters.

    The court will decide the amounts for disgorgement, prejudgment interest, and civil penalties.

  • Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Singapore-based crypto exchange Crypto.com has filed a lawsuit against the United States Securities and Exchange Commission (SEC).

    The crypto exchange has joined forces with other companies to actively defend themselves and take a stand against a federal agency overstepping its legal authority, and protect the future of the crypto industry in the U.S.

    “Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff, illustrating that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S,” the firm wrote.

    Legal Action Against the SEC

    The firm noted in its lawsuit that the SEC has overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.

    The company also noted that its primary objective is to stop the SEC’s unlawful overreach and violation of federal law.

    “Crypto.com is committed to using all regulatory tools available to help bring certainty to the industry, including this petition for joint rulemaking under the Dodd-Frank Act,” the company added.

    The lawsuit claims that the SEC has failed to offer clear guidelines or a consistent regulatory framework, forcing crypto companies to navigate compliance through uncertainty. Crypto.com argues this has led to an unfair landscape, where certain firms are singled out while others face no scrutiny.

    Crypto.com believes that security and compliance are essential to driving mainstream adoption of crypto, and all of its achievements are centered around safety, security, and regulatory adherence.

    SEC Targets Major Platforms

    Over the years, the SEC has ramped up enforcement, targeting various crypto platforms, including high-profile exchanges like Binance, Kraken, and Coinbase. The securities watchdog claims that many tokens traded on these platforms are unregistered, falling under its jurisdiction.

    Exchanges have also told the agency that crypto assets are not securities. For instance, in September 2024, US-based crypto exchange Kraken replied to the SEC charges of offering crypto asset securities and investment contracts.

    The exchange stated that the SEC violated federal securities laws and that its securities classification is unclear.

  • FTX Bankruptcy Plan Gets Approved By U.S. Court

    FTX Bankruptcy Plan Gets Approved By U.S. Court

    A United States bankruptcy court in Wilmington, Delaware, has approved FTX’s plan to repay 98% of customers and creditors within 60 days.

    According to a press release, FTX will reimburse its customers with at least 118% of the account values they held as of November 2022, when the company filed for bankruptcy. The repayment is subject to know-your-customer (KYC) and other distribution requirements.

    FTX to Repay Creditors

    The collapsed exchange estimated that the total value of assets recovered, converted into cash, and ready for distribution will range between $14.7 billion and $16.5 billion.

    The outcome marked a win for creditors, made possible by recovering cash and crypto that had been lost amid the company’s collapse. The firm secured additional funds by selling various assets, including its stakes in tech firms such as the artificial intelligence startup Anthropic.

    Commenting on the latest announcement, John J. Ray III, CEO and Chief Restructuring Officer of FTX, said:

    “The Court’s confirmation of our Plan is a significant milestone on our pathway to distributing cash to customers and creditors. Today’s achievement is only possible because of the experience and tireless work of the team of professionals supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from the ground up and marshaling assets from around the globe.”

    Ray added that agreements are being finalized with specialized agents to help ensure customer recoveries are handled safely and efficiently.

    FTX’s Dramatic Fall

    FTX, led by its founder and former CEO Sam Bankman-Fried, had positioned itself as one of the leading platforms in the sector. However, in November 2022, revelations of financial mismanagement and allegations of fraud led to a liquidity crisis, causing the exchange to halt operations and subsequently file for bankruptcy.

    Since then, the court-managed bankruptcy proceedings have included various stakeholders, such as creditors, institutional investors, and former FTX customers, striving to recover their funds.

    Bankman-Fried was found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering.

  • Robinhood’s Chief Legal Officer Could be the Next SEC Chair If This Happens

    Robinhood’s Chief Legal Officer Could be the Next SEC Chair If This Happens

    Robinhood’s chief legal officer (CLO), Dan Gallagher, could be the top candidate to lead the United States Securities and Exchange Commission (SEC) if presidential candidate Donald Trump wins the upcoming 2024 presidential election, Politico reported Monday.

    Gallagher previously served as a Republican SEC commissioner from 2011 to 2015. Before that, he was counsel to SEC Commissioner Paul Atkins, handling matters related to the agency’s enforcement and trading divisions. In recent years, he has criticized the agency’s regulatory stance on crypto assets.

    Donald Trump to Fire SEC Chair Gary on Day One

    The recent report comes after Donald Trump made headlines with his promises to make Bitcoin great again, ensure the federal government holds bitcoin, and fire SEC chair Gary Gensler on day one.

    Trump revealed that if he is elected as president for the second time, he will make many adjustments to fit the masses’ demands, including eliminating ten old regulations for every new regulation.

    Other potential candidates to replace Gensler, should Trump be elected, include former CFTC Chair Chris Giancarlo, former SEC General Counsel Robert Stebbins, and current Republican SEC Commissioner Hester Peirce. According to Axios, Peirce has announced her intention to leave the agency when her term concludes in 2025.

    SEC vs. Crypto

    Over the years, tension between the SEC and the crypto industry has grown. The regulator has repeatedly warned that crypto exchanges must register with the agency, claiming that most crypto assets qualify as securities.

    The securities watchdog has filed numerous lawsuits against prominent crypto firms, such as Coinbase, Kraken, Binance, and others, for alleged violations of securities laws.

    Gensler’s tenure has seen a push to bring many crypto assets under the securities umbrella. The SEC chief recently came under fire, where congress members labeled him the most destructive SEC chair.

    Gensler was accused of inventing the term ‘crypto asset security’ and never provided a framework for defining crypto assets.

  • Hong Kong Regulator to Issue More Crypto Exchange Licenses This Year

    Hong Kong Regulator to Issue More Crypto Exchange Licenses This Year

    The Hong Kong Securities and Futures Commission (SFC) is swiftly expanding the city’s crypto industry by issuing more licenses to crypto exchanges in batches by the end of the year, according to a local media report.

    The SFC’s decision to issue more licenses to crypto exchanges comes as the regulatory body celebrates its 35th anniversary this year.

    The SFC also noted its strategic priorities for 2024 to 2026, focusing on strengthening market resilience, boosting Hong Kong’s capital market’s global competitiveness and appeal, driving the financial market’s transformation through technology, and improving institutional resilience and operational efficiency.

    HKVAX Secures Crypto Exchange License in Hong Kong

    According to the report, Liang Fengyi, CEO of the China Securities Regulatory Commission, announced that the regulator had issued a license to Hong Kong Virtual Asset Exchange (HKVAX) to function as a crypto exchange in the region, following previous approvals for OSL and HashKey exchange.

    Upon securing the license, HKVAX noted in a statement last Thursday that the company focuses on security token offerings, tokenizing real-world assets, and providing over-the-counter trading, exchange, and custody services.

    11 Platforms Seeking Licences

    According to Fengyi, 11 platforms are on the SFC’s list of virtual asset trading platform applicants seeking licenses. The regulator has concluded the initial round of onsite inspections and instructed these applicants to implement the required adjustments.

    The SFC chief noted that the agency aims to maintain market fairness and promote the development of the regulatory system for virtual asset trading platforms.

    Fengyi further stated that the China Securities Regulatory Commission has introduced a new licensing system for crypto over-the-counter (OTC) and custody services and is seeking feedback from the industry.

    He also noted that to drive the transformation of the financial market, it is necessary to embrace financial innovation, advance the regulatory framework for virtual asset trading platforms, encourage the tokenization of traditional assets, and leverage regional blockchain and Web3 technologies to foster secure and responsible financial technology.

    Consequently, Hong Kong seeks to attract top players in the crypto space by offering a favorable environment, complete with clear compliance measures and investor protections.

  • Indiana Man Pleads Guilty to $37M Crypto Theft

    Indiana Man Pleads Guilty to $37M Crypto Theft

    An Indiana man, Evan Frederick Light, has pleaded guilty to charges related to a major cybercrime involving the theft of over $37 million in crypto from nearly 600 victims.

    The 21-year-old Lebanon pleaded guilty on September 30 to conspiracy to commit wire fraud and money laundering. 

    Light Turned to Crypto Mixers

    On October 1, the United States Department of Justice (DOJ) reported that Light illegally accessed an investment firm’s computer systems to obtain customer data. He subsequently exploited the information to steal crypto assets from clients. 

    Following the report, Light funneled the stolen funds through crypto mixers and online gambling platforms. His primary aim was to obscure his identity and conceal the assets’ origin.

    “Although this defendant tried to hide in the shadows of a cyber underworld, he was not beyond the reach of our team, and today’s guilty verdicts should serve as a reminder that this Office and its law enforcement partners will bring cyber criminals to justice,” said U.S. Attorney Ramsdell.

    Up to 20 Years in Prison

    According to the DOJ, Light faces up to 20 years in prison for each count, three years of supervised release, and a $200 special Federal Crime Victims Fund assessment. Restitution may also be included.  

    Before the now-convicted Indiana man pleaded guilty, he initially pleaded not guilty in South Dakota on June 15, 2023, where he was charged.  

    The DOJ’s complaint noted that the offenses occurred between 2021 and May 2023, with Light collaborating with at least one other accomplice who remains unidentified. 

    Alvin M. Winston Sr. of FBI Minneapolis noted that cyber intrusions significantly threaten individuals and organizations. He expressed his commitment to safeguarding the public.

    He further stated that the FBI will continue collaborating with its partners to ensure that those who misuse technology for financial gain are brought to justice, regardless of the complexity or scope of operations.