Cryptocurrencies To Watch

Author: Chris Lion

  • Over $500M in Long Position Liquidated as Bitcoin Crashes to $60K

    Over $500M in Long Position Liquidated as Bitcoin Crashes to $60K

    The recent crash in the crypto market, induced by news of Iran attacking Israel, has triggered a wave of liquidation, with more than half a billion dollars in long positions liquidated.

    The news of the attack caused bitcoin (BTC) to crash to $60k from over $64k, as investors fear an impending World War III.

    Bullish Crypto Traders Caught Unaware

    The sudden plunge caused a heavy blow to futures traders, marking their largest losses since early August.

    Data from crypto derivative analysis platform CoinGlass revealed that Bitcoin traders who had opened long positions lost more than $127 million, while Ethereum (ETH) positions saw nearly $107 million in liquidations.

    Other altcoins collectively suffered over $85 million in liquidations, the highest amount since July, while memecoin Pepe (PEPE) contributed an unexpected $10 million.

    The market crash and mass liquidation started hours after Iran launched missiles at strategic Israeli locations, prompting Israel to warn of potential retaliation in the days ahead.

    Crypto’s Uptober Having a Bad Start?

    Bitcoin dropped to a low of $60,300 late Tuesday, marking its worst start to a historically bullish month, before rebounding above $61,500 at the time of writing.

    Data also revealed that nearly 86% of all futures positions were bullish, as traders anticipated higher prices in the coming weeks.

    Historically, October is favourable for Bitcoin, with only two losing October since 2013, averaging a return of 23%. As such, the 10th month is popularly known as “Uptober.”

    Furthermore, Bitcoin historically performs well after presidential elections in the United States, and some speculators see BTC reaching new highs by the end of the year if history repeats itself.

  • Australian Police Confiscate Crypto Assets Worth $6.4M Linked to Crime

    Australian Police Confiscate Crypto Assets Worth $6.4M Linked to Crime

    The Australian Federal Police (AFP) has seized A$9.3  million (equivalent to $6.4m) worth of cryptocurrencies belonging to Jay Je Yoon Jung, a 32-year-old Nawee man linked to a criminal messaging app.

    The latest development is part of an ongoing investigation dubbed Operation Kraken, which targets organized criminal activities.

    AFP Deciphers Suspect’s Crypto Seed Phrase

    The 32-year-old suspect is allegedly the mastermind behind an encrypted messaging app called “Ghost,” which authorities believe facilitate communication between crime networks.

    On October 2, the AFP announced that the crypto assets were seized after an analyst from the Criminal Assets Confiscation Taskforce (CACT) cracked the account’s seed phrase by examining digital devices found at the home of Jung.

    After accessing the wallet holding the crypto assets, the AFP transferred them into the police’s custody. The AFP also noted that the crypto asset will be transferred to the government in due course and could be used to support future law enforcement programs. 

    AFP Warns Crypto Criminals

    According to the report, this is the second time digital assets have been confiscated in the AFP’s investigation targeting all alleged Ghost app developers and users. The first raid in August led to the seizure of $1.4 million in crypto and properties.

    “Whether you have tried to hide them in real estate, cryptocurrency, or cash, we will identify your ill-gotten goods and take them away from you, leaving you with nothing,” AFP acting Commander Scott Raven said.

    The agency noted the ongoing results from Operation Kraken, which includes  46 arrests, 93 search warrants conducted, intervention in 50 threats to life/threats to harm, prevention of more than 200kg of illicit drugs from harming the Australian community, seizure of 30 illegal firearms/weapons, A$2.37 million ($1.60 million) in cash seized, and restraint of A$11.9 million ($8.2 million) in assets.

    According to the AFP, Jung was arrested on September 17 and charged with five crimes, including aiding a criminal organization.

    The police noted that Jung specifically developed “Ghost” for criminal use, with individuals using the platform to coordinate activities such as drug trafficking, money laundering, and contract killings.

  • DeFi Protocol Bedrock Loses Nearly $2M to Bad Actors

    DeFi Protocol Bedrock Loses Nearly $2M to Bad Actors

    Multi-asset liquid restaking DeFi protocol Bedrock has suffered from a security exploit, leading to the loss of approximately  $2 million in assets.

    In a recent X post, Bedrock’s team noted that it was aware of a security exploit involving uniBTC, a synthetic asset that represents Bitcoin (BTC) on various DeFi protocols.

    Bedrock to Compensate Users

    On-chain investigations showed that the root cause was miscalculating the ETH-uniBTC price differential, which allowed the attacker to exploit a pricing error in the mint function, draining the $uniBTC pool.

    Following the exploit, the protocol’s team stated that a detailed compensation plan is nearing completion and will be released soon, along with a full post-mortem report.

    Bedrock further noted that most losses occurred within decentralized exchange liquidity pools and assured that the underlying wrapped BTC tokens and the standard Bitcoin (BTC) held in reserves remained secure.

    Since the launch of Bedrock in February 2023 by Singapore-based blockchain firm RockX, the protocol’s website shows that it has prioritized compliance with know-your-customer (KYC) and anti-money laundering regulations. Additionally, the protocol aims to make liquid staking attractive for institutional investors.

    Bedrock Hits Over $240M in TVL

    According to data from DeFi TVL aggregator DeFiLlama, Bedrock ranks as the eighth-largest liquid staking protocol in the market, with more than $240 million in total value locked (TVL) on its platform. The project maintained the TVL despite the exploit.

    Since the launch of the ETH restaking protocol Eigenlayer in April, liquid restaking and native restaking have quickly emerged to become some of the largest market sectors in the crypto industry.

    Hackers Targeting DeFi Protocols

    In recent times, DeFi protocols have been heavily targeted, leading to the loss of millions of dollars.

    Earlier this year, the DeFi project Prisma fell victim to an exploit, losing $10 million worth of crypto assets. Another incident occurred, where DeFi protocol Zeus lost approximately $6 million in a bug exploit.

  • PayPal Business Accounts Can Now Buy, Hold, and Sell Crypto

    PayPal Business Accounts Can Now Buy, Hold, and Sell Crypto

    Popular payments giant PayPal has announced that it is expanding its crypto services to include business accounts. This means merchants in the United States can buy, hold, and sell crypto directly from their PayPal business accounts, except for those in New York State. 

    PayPal Expands Crypto Footprint

    According to a press release, PayPal’s decision to expand its crypto capabilities to business accounts follows the company’s integration of crypto assets in 2020, which allowed consumers to buy, hold, and sell cryptocurrencies directly from their PayPal and Venmo accounts. 

    Commenting on the latest development, Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies PayPal, said:  

    “Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly.” 

    PayPal’s Crypto Journey

    Since PayPal first joined the crypto space in 2020 by adding support for cryptocurrencies, the company has continued to explore the industry. 

    For instance, in August 2023, PayPal launched its USD-pegged stablecoin, dubbed PayPal USD (PYUSD), on the Ethereum network. According to the company, users can use the PYUSD to make purchases and check out. Users can also convert supported crypto assets to the stablecoin. 

    Earlier this year, PayPal expanded its stablecoin to the Solana blockchain. The firm believes that adding PayPal USD to the network will improve transaction speed, lower costs, and provide users with the flexibility of control between multiple blockchains.

  • American Producer Diddy and SBF Are in the Same Prison Cell

    American Producer Diddy and SBF Are in the Same Prison Cell

    American hip-hop music mogul Sean Combs, also known as Diddy, and the infamous FTX founder Sam Bankman-Fried (SBF) share the same prison cell.

    Diddy has long been in the spotlight in the music industry. His career spans decades and includes multiple Grammy Awards, successful business ventures, and a reputation for a lavish lifestyle. He is also credited with discovering and cultivating artists such as the Notorious B.I.G., Mary J. Blige, and Usher.

    According to a New York Times report, both famous convicts do not share a typical jail cell in the conventional sense. Instead, they sleep in a spacious dormitory-style room with other inmates assigned to the same section at a Metropolitan Detention Center (MDC) facility.

    Charges Against Diddy

    The report noted that since his arrest last week, the hip-hop mogul, who has encountered numerous allegations of abuse and assault in the past year, was charged with federal racketeering conspiracy and sex trafficking.

    The charges also alleged that Diddy exploited his wealth and influence to operate a criminal enterprise focused on his sexual gratification. He has pleaded not guilty to the three charges filed against him.

    Following the report, the American record producer has been unsuccessful in securing bail. His legal team initially proposed a substantial offer, which included a $50 million bond, the passports of his daughters and mothers, equity from a Florida condo, and home detention with GPS monitoring. After listening to the proposal, the judge rejected the request, pointing to serious concerns, including allegations of drug abuse, anger issues, and accusations of witness tampering.

    In an attempt to overturn the judge’s decision, Diddy also offered to undergo weekly drug tests, restrict visits to only female family members, and avoid any contact with potential witnesses in the case.

    Sam Bankman-Fried’s Sentencing

    On the other hand, SBF is an ex-crypto king, founder, and former CEO of the collapsed crypto exchange FTX. He has been held at MDC after being convicted of masterminding a large-scale fraud scheme involving the crypto exchange he founded. The action led to a 25-year prison sentence. The disgraced FTX founder requested to remain at MDC while his legal team prepared an appeal.

    During the trial, SBF was found guilty of two instances of wire fraud, two instances of wire fraud conspiracy, one count of securities fraud and commodities fraud conspiracy, and one count of money laundering conspiracy.

  • Congressman Labels Gensler the Most ‘Destructive’ SEC Chair at Hearing

    Congressman Labels Gensler the Most ‘Destructive’ SEC Chair at Hearing

    The United States Securities and Exchange (SEC) Chair Gary Gensler is facing intense scrutiny over his leadership, with Minnesota Representative Tom Emmer criticizing him as the most destructive and lawless chair in the agency’s history.  

    Gary Gensler Under Fire

    During a House Financial Services Committee hearing, Emmer accused Gensler of making up crypto asset security and never provided any framework for defining crypto assets.

    “You’ve made up the term’ crypto asset security.’ This term is nowhere to be found in statute. You made it up. You never provided any interpretive guidance on how ‘crypto asset security’ might be defined within the walls of your SEC,” Emmer said. 

    The representative also alleged that Gensler sought political loyalty from SEC employees, including civil servants, though the SEC chair denied the accusation despite email evidence suggesting otherwise.  

    He further noted that the hiring practice Gensler implements and culture fosters a sense of loyalty among staff to him, placing it above the law and the SEC’s mission. 

    In recent years, the SEC has initiated legal actions against several prominent fintech and crypto firms, such as Ripple, Coinbase, Kraken, BlockFi, Telegram, Celsius, Binance, and others, as part of its ongoing crackdown on the industry.

    “You’ve retaliated against businesses and people who have come before this committee to talk about the next generation of American finance,” Emmer added. 

    Gensler’s Abuse of Power 

    The representative noted that Gensler misused the agency’s enforcement powers and lured companies willing to cooperate with him, only to subject them to enforcement actions later. 

    He also mentioned the Debt Box case, in which the SEC was penalized for significant misrepresentation in court. This led to the agency incurring nearly $2 million in legal fees funded by taxpayers. The case against Debt Box was dismissed on May 28, 2024. 

    The recent hearing comes after Vice Presidential Kamala Harris announced plans to shape crypto policies, criticizing Gensler’s method of overseeing the industry due to the resulting confusion in the crypto space and several ongoing court cases.  

    Meanwhile, Emmer said that the SEC broke the law and its attorney lied to the court regarding businesses in Washington, D.C.

  • Australia Wants Crypto Firms to Obtain Financial License

    Australia Wants Crypto Firms to Obtain Financial License

    The Australian Securities and Investment Commission (ASIC) has proposed that crypto firms are required to obtain financial services licenses.

    In a recent report, the ASIC noted that regulatory obligations for crypto platforms in Australia are expected to expand beyond just crypto exchanges. 

    The country’s new requirement comes a year after the Australian Treasury released a proposal requiring crypto exchanges with a certain threshold of assets to obtain an Australian Financial Services Licence. 

    According to ASIC commissioner Alan Kirkland, the new requirements are essential since the regulatory body believes the Corporations Act captures most major crypto assets like Bitcoin. 

    Kirkland also revealed that the ASIC plans to update the Corporations Act’s Information Sheet 225 to clarify how specific crypto tokens and certain products should be treated.  

    Australia Faces Criticism

    The announcement regarding ASIC’s upcoming guidance comes as Senator Andrew Bragg, a pro-crypto Australian politician elected as senator for New South Wales in 2019, criticized the country’s regulators for their lack of a proactive stance on crypto market regulation.  

    Bragg noted that the government entirely disregarded the 2022 regulatory framework for crypto asset secondary service providers (CASSP) after the election. Instead, the Labor Party reintroduced the consultation paper after a year but has remained relatively quiet.

    “Labor will not deliver any crypto legislation in this term of Parliament. Labor has wasted three years by solely focusing on the needs of their close vested interests like unions and super funds,” Bragg said.  

    Crypto Platforms Obtaining License

    Recently, an increasing number of countries have started to adopt cryptocurrency and urged crypto firms to obtain licenses to provide trading services to users efficiently. 

    On September 3, the Ghanaian government announced it will launch a regulatory guideline for crypto adoption in the country. The nation’s regulators previously warned that users were at their own risk as crypto assets were not recognized as legal tender. 

    The Hong Kong Securities and Futures Commission (SFC) has also raised concerns over the ongoing inspection of crypto exchanges as they await full regional licensing.

  • German Authorities Shut Down 47 Crypto Exchanges for Facilitating Money Laundering

    German Authorities Shut Down 47 Crypto Exchanges for Facilitating Money Laundering

    Two German governmental agencies out of the Frankfurt am Main Public Prosecutor’s Office have shut down 47 illicit exchanges for involving and facilitating money laundering.

    In a recent report, the authorities noted that the exchanges allegedly committed money laundering by acquiring and concealing the origin of criminally obtained funds.  

    Exchanges Bypass KYC Requirements  

    The platforms also bypassed know-your-customer (KYC) procedures to verify users’ identities before permitting crypto asset transactions. This lack of transparency in the origin of the funds contributed to the flow of illegally acquired money, according to the report.     

    While the recent action is not new to the German authorities, the report stated that exchange services that facilitate anonymous financial transactions, enabling money laundering, are a critical component in the criminal value chain of cybercrime. These platforms are often exploited by ransomware groups, darknet traders, and botnet operators to funnel ransom payments or other illicit gains into legitimate financial systems, allowing them to launder money acquired through illegal activities.  

    Germany has been a leader in the European Union in pushing for a tighter crypto framework, especially since the implementation of the European Union’s Markets in Crypto Assets (MiCA) regulation, aimed at setting clear rules for crypto platforms and ensuring consumer protection. 

    Authorities Secure User and Transaction Data

    As part of the investigation, the Central Office for Combating Internet Crime (ZIT) and the Federal Criminal Police Office (BKA) secured user and transaction data from the exchanges, which is used to combat cybercrime further. 

    The actions taken by German law enforcement are intended to disrupt and dismantle the infrastructure supporting cyber criminals, according to the report.

    This is not the first time the German authorities have handled illegal operations and financial misconduct in the country. Earlier this year, they confiscated 50,000 BTC (worth $2 billion at the time) from the illegal streaming platform Movie2K, which has since been shut down.

  • Anthony Scaramucci Teams Up with Kamala Harris to Shape Crypto Policies

    Anthony Scaramucci Teams Up with Kamala Harris to Shape Crypto Policies

    Anthony Scaramucci, founder and managing partner of SkyBridge Capital, has announced that Democratic presidential candidate Kamala Harris is crafting her crypto policies for her campaign.

    Scaramucci, who briefly served as the White House Communications Director in 2017, noted that he and a group of crypto advocates alongside Harris are preparing ahead of the upcoming election in November.

    Harris to Distance From Warren and Gensler

    At the world’s largest Web3 event, TOKEN2049, which had approximately 20,000 attendees, including Vitalik Buterin, the co-founder of Ethereum, and over 800 side events, Scaramucci noted that Vice President Harris and her crypto advocates are collaborating to steer the Democratic Party away from the influence of Senator Elizabeth Warren and U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.

    Warren, a Democratic senator, and Gensler are usually seen as enemies of the crypto industry, having backed regulations and crackdowns on the space.

    Scaramucci also revealed that Harris has several meetings lined up with crypto proponents this week.

    He further noted that crypto insiders, including those collaborating with Harris, aim to keep the industry policies, preventing them from becoming divisive.

    “I believe that we are making progress, and I think it’s going in the right direction. We want crypto in the U.S. to have a bipartisan standard unstrained from political and tribal conflicts,” Scaramucci said.  

    U.S. Presidential Candidates Compete for Crypto Voters

    As presidential candidates prepare for the forthcoming election, Harris is not the only candidate with plans for the crypto industry. Donald Trump, the former U.S. president and the Republican candidate, has also shown significant support for the crypto sector. 

    In July, during the Bitcoin Conference in Nashville, Trump promised to ensure that the federal government never sells its bitcoin holdings and teased a plan to make the U.S. a “crypto capital of the planet.” 

    As part of his strategy, Trump revealed plans to make America the world’s Bitcoin capital.  He also promised to utilize Bitcoin as a strategic reserve, showcasing his commitment to crypto assets.  

    Earlier this month, Trump launched a new project called World Liberty Financial. The platform aims to boost stablecoin adoption and promote decentralized finance (DeFi) technology in the U.S.

  • MicroStrategy Raises Convertible Senior Note Sales to $875M

    MicroStrategy Raises Convertible Senior Note Sales to $875M

    MicroStrategy has raised its convertible senior note sales offering to $875 million. The notes will be sold in a private offering to individuals reasonably considered qualified institutional investors.

    The latest development comes after MicroStrategy revealed plans to launch a $700 million aggregate principal amount of convertible notes to qualified institutional investors.  

    The announcement disclosed the company’s plan to use funds from the convertible notes to redeem all $500 million outstanding principal amount of its senior secure notes while using the remaining amount to acquire more bitcoin and settle other general corporate duties.  

    MicroStrategy to Raise Up to $997.4M

    The company noted that it has given the initial buyers of the notes the option to acquire up to an additional $135 million in total principal value of the notes within 13 days starting from the date the notes are first issued.  

    The business intelligence firm aims to raise up to $997.4 million if institutional investors purchase the additional notes. The initially planned $875 million will be reduced to $864.1 million after accounting for discounts, commissions, and related expenses for the initial buyers. As announced two days ago, the notes are set to mature on September 15, 2028, unless they are repurchased, converted, or redeemed earlier.

    Noteholders can also request MicroStrategy to repurchase their notes on September 15, 2027, or if certain events occur that qualify as a fundamental change under the contract governing the notes. The repurchase will be at a price equal to 100% of the principal amount of the notes to be repurchased.  

    Over the years, MicroStrategy, led by its co-founder and executive chairman Michael Saylor, is known for acquiring substantial amounts of bitcoin (BTC) in its portfolio. Just recently, the company purchased approximately 18,300 BTC worth $1.11 billion. This further cements the firm’s position as the world’s largest corporate BTC holder. Its current Bitcoin stash totals 244,800 BTC.