Cryptocurrencies To Watch

Category: Crypto News

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  • Binance U.K. Faces Lawsuit from Ex-Employee Over Unfair Dismissal

    Binance U.K. Faces Lawsuit from Ex-Employee Over Unfair Dismissal

    A former Binance executive, Amrita Srivastava, has sued the crypto exchange’s United Kingdom office, alleging unfair dismissal due to whistleblowing. She claims that a colleague asked for a bribe from a customer in exchange for preferential treatment “under the guise of providing consultative services” to speed up the customer’s integration into the exchange.

    Whistleblowing refers to reporting information about corruption or unethical behavior within an organization, government, or institution. It usually promotes accountability and transparency while encouraging integrity. Whistleblowers often face challenges, including job loss; hence, to counter this, many countries have set up laws to protect such ones.

    Binance Faces Lawsuit

    Srivastava was a senior employee based in London who worked remotely on Binance’s Link platform, which connects external brokers and customers to the exchange. She reported the alleged bribery to management in April 2023 but was dismissed a month later. The ex-executive is now suing Binance for unfair dismissal over whistleblowing.

    On the other hand, Binance denied the allegations, stating that the staff was dismissed due to poor performance. According to the exchange, the bribery incident was already known and under investigation by Binance’s internal audit team. It further claims that Srivastava’s dismissal was unrelated to her reporting of the alleged bribery.

    Srivastava is seeking compensation for unfair dismissal and damage to her career reputation. Notably, the case outcome may have implications for Binance’s operations in the U.K. and its handling of employee whistleblowing claims.

    The case is ongoing at a U.K. employment tribunal, which has different compensation limits for whistleblowing and unfair dismissal claims. For whistleblowing claims, tribunals can award unlimited compensation, allowing them to provide as much money as they deem fair and reasonable. In contrast, unfair dismissal claims have a capped award of approximately $133,914.

    Not the First Lawsuit

    Binance and its former CEO, Changpeng Zhao, faced an antiterrorism complaint in the Southern District of New York. The complaint, filed by 270 victims, alleged that Binance knowingly facilitated the transfer of crypto to and from terrorist groups, including Hamas.

    The plaintiffs argued that the $4.3 billion penalty paid by Binance is insufficient and that they should be held accountable to the victims of terrorist attacks they allegedly aided.

  • Celsius to Distribute $127M From Litigation Recovery Account

    Celsius to Distribute $127M From Litigation Recovery Account

    Bankrupt crypto lending firm Celsius Network has announced plans to distribute $127 million from its litigation recovery account, a significant step in its ongoing bankruptcy proceedings.

    The troubled lender noted that the distribution aims to compensate eligible creditors of classes 2, 5, 7, 8, and 9 impacted by the company’s collapse.

    A Notice of Commencement filed on November 27 in the United States Bankruptcy Court for the Southern District of New York indicates that these categories encompass retail borrower depositors, participants in the “Earn” program, and creditors with withhold claims, unsecured loans, or general unsecured claims. However, it excludes users with convenience claims or those not eligible for illiquid recovery rights.

    Celsius to Pay With Crypto

    Following the notice, creditors will receive payments primarily in crypto through the platforms used for previous distributions, such as PayPal, Venmo, or Coinbase. Those without verified accounts on these platforms will receive cash payments instead. Corporate creditors are also eligible for payments, though those with convenience claims are excluded.

    Despite the latest announcement concerning a second payment, some crypto users on X are dissatisfied. An X user stated that there are still so many creditors with unresolved distributions.

    Celsius Misleads Clients

    Celsius filed for bankruptcy in July 2022. Its former CEO, Alex Mashinsky, was arrested and charged with fraud in July 2023, accused of misleading depositors about the investment risks associated with the platform. His trial is set to commence in January 2025.

    In March, several Celsius corporate creditors alleged that their payments were reduced by 30% because the debtors’ estate exclusively used Coinbase to handle distributions.

    While the $127 million distribution marks progress, many creditors still await full resolution. The litigation recovery account has been a critical resource in Celsius’ efforts to address outstanding claims. Still, significant challenges remain as the company continues to sort out its financial and legal obligations.

    Meanwhile, Celsius is not the only firm repaying its creditors. For instance, the trustee of Mt. Gox, the now-infamous Bitcoin exchange that collapsed in July 2014, initiated a repayment plan in July. The trustee noted that the repayment will be made in bitcoin and Bitcoin Cash, which were recovered from Mt. Gox’s remaining assets.

  • Paul Atkins Becomes Leading Candidate for SEC Chair Position

    Paul Atkins Becomes Leading Candidate for SEC Chair Position

    Former commissioner of the United States Securities and Exchange Commission (SEC) Paul Atkins has emerged as a leading candidate to succeed Gary Gensler as the SEC Chair under President-elect Donald Trump’s new administration.

    Atkins, known for his pro-crypto stance and critical views on regulatory overreach, could signal a significant shift in the SEC’s approach to digital assets and blockchain innovation.

    A Forward-Thinking Candidate

    FOX journalist Eleanor Terrett noted in an X post that Atkins stands out as both well-versed in crypto and highly knowledgeable about the SEC’s structure and processes, having previously served as a commissioner and a staff member during the tenure of Richard C. Breeden and Arthur Levitt.

    The post also explained that Atkins is regarded as someone who can champion a forward-thinking innovation strategy while restoring the agency to the “gold standard” that many Republicans believe diminished during Gary Gensler’s tenure as chair.

    Under his ruling, the US could see a shift toward a regulatory framework that encourages innovation in the crypto space, potentially countering accusations of overregulation leveled at the SEC’s current leadership.

    Atkins’ track record suggests he may take a more measured approach. He has previously advocated for clear and practical rules, which could align well with industry calls for a more collaborative relationship with regulators. His potential leadership is seen as an opportunity to foster innovation while maintaining necessary investor protections.

    The announcement comes after Trump nominated Jay Clayton, the former SEC chairman, as the new US Attorney for the Southern District of New York. Trump noted that Clayton is a highly respected business leader, counsel, and public servant who received Engineering and Law degrees from the University of Pennsylvania and an Economics degree from the University of Cambridge.

    According to Bloomberg, Trump is reportedly exploring creating a new White House role focused on crypto policy. He is also allegedly evaluating the possibility of moving the regulation of cryptocurrencies and digital trading platforms from the SEC to the Commodity Futures Trading Commission (CFTC).

    Not a Good Leadership

    Under Gensler, the SEC has been criticized for pursuing aggressive lawsuits against major crypto players, such as Coinbase, Binance, Kraken, and Ripple, while offering little regulatory clarity. Many industry leaders argue that this approach has stifled innovation and pushed blockchain companies.

    As such, Singapore-based crypto exchange Crypto.com filed a lawsuit against the SEC. The firm noted in its lawsuit that the SEC had 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.

  • Ripple Plans Investment in Rebranded Bitwise XRP ETP

    Ripple Plans Investment in Rebranded Bitwise XRP ETP

    Ripple, a leading provider of digital asset infrastructure, is planning to invest in a recently rebranded XRP-focused Exchange-Traded Product (ETP) managed by Bitwise Asset Management.

    Bitwise, a leading digital asset manager, revealed plans to rename its European XRP ETP, formerly the ETC Group Physical XRP, to the Bitwise Physical XRP ETP while retaining its existing ticker symbol, GXRP.

    The decision comes after Bitwise expanded into the European market in August by acquiring the ETC Group, a cryptocurrency investment company overseeing $1 billion in assets, including various physical crypto ETPs such as Bitcoin (BTCE), Ethereum with staking (ET32), Solana (ESOL), MSCI Digital Assets Select 20 (DA20), and GXRP.

    A physical ETP is a financial product designed to mirror the performance of its underlying assets, which are directly purchased and retained by the issuer.

    Bitwise XRP ETP Targets Europeans

    The Bitwise Physical XRP ETP also aims to provide European investors access to XRP via a physically backed investment vehicle that directly holds the asset.

    Hunter Horsley, co-founder and CEO of Bitwise noted in a press release that XRP and the XRP Ledger are among the industry’s most recognized and reliable blockchain technologies.

    “We’re thrilled to be providing access for investors through an institutional quality product with the Bitwise Physical XRP ETP (GXRP),” Horsley said.

    Bitwise intends to rename its entire European ETP lineup as part of its strategy to broaden its regional presence.

    Bitwise Hits Over $10B in Total Client Assets

    Bitwise reported substantial growth in 2024, with total client assets surpassing $10 billion. The firm also announced plans to introduce more crypto ETPs tailored for institutional investors.

    “Global demand for exposure to the crypto asset class has exploded in 2024, fueled by a growing interest in crypto-backed investment offerings. With the U.S. regulatory environment for crypto finally becoming more clear, this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP,” said Brad Garlinghouse, CEO at Ripple.

    The company recently expanded its range of crypto products. On November 12, Bitwise introduced its first Aptos staking ETP, and on November 26, it submitted an S-1 registration for an ETF linked to Bitcoin.

  • MicroStrategy Faces $30 Billion Loss Amid Bitcoin Correction

    MicroStrategy Faces $30 Billion Loss Amid Bitcoin Correction

    The publicly traded business intelligence firm MicroStrategy is facing a staggering $30 billion loss due to the recent sharp downturn in bitcoin’s (BTC) price.

    According to a recent report, the company experienced its most significant four-day market cap decline in history, falling over 35% from its November 21 peak as BTC fell 8% from its local high.

    While the business intelligence company’s stock (MSTR) has seen a slight rebound, it mirrored the drop in BTC value this week. MicroStrategy’s stock, MSTR, fell by 7.5% in the 24 hours, trading at over $353, down 49.76, according to data from TradingView.

    Over 44% Increase  

    On the bright side, Bitcoin and MicroStrategy have shown strong performance over extended periods. The crypto asset increased by 44% last month, while MicroStrategy’s MSTR surged by more than 32%. Over the past year, the leading cryptocurrency gained 146%, with MSTR soaring over 590%.

    Several investors profited from bitcoin’s rise, increasing their portfolios. However, the recent drop has stirred observation in the crypto market.

    Despite the recent drop in MSTR, retail investors purchased almost $100 million in MicroStrategy shares, fueled partly by growing interest surrounding the company’s $2.6 billion note offering.

    Firms Investing in MicroStrategy

    Several major traditional institutions are investing in Michael Saylor’s company, including Allianz, Europe’s second-largest insurer, which purchased more than 24% of MicroStrategy’s $2.6 billion note offering. These notes are part of MicroStrategy’s ongoing capital-raising efforts to expand its Bitcoin holdings.

    The firm plans to raise the funds from senior convertible notes at a 0% interest rate to acquire more BTC. The note sale was increased from the initially announced offering of $1.75 billion in aggregate principal amount of notes.

    Also, MicroStrategy recently purchased 55,500 BTC, valued at $5.4 billion, and bought for $97,862 per bitcoin. Completing its latest purchase, MicroStrategy achieved a BTC Yield of 35.2% QTD and 59.3% YTD.

    Trading from a record high of above $99,000 in the past week, BTC is currently trading at above $93,300, with hope of a comeback.

  • Tornado Cash Wins as US Court Overhauls OFAC’s Sanction

    Tornado Cash Wins as US Court Overhauls OFAC’s Sanction

    A three-judge panel has ruled that the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) exceeded its authority when it sanctioned Tornado Cash, a decentralized crypto mixer.

    The panel noted that sanctions against the crypto mixer’s immutable smart contracts were unlawful, overturning a lower court’s decision and granting Tornado Cash users partial summary judgment.

    Tornado Cash Freed from OFAC’s Shackles

    Tornado Cash is an open-source software project that provides privacy protection for Ethereum’s users. The panel stated that although the Treasury possesses the authority to target property, Tornado Cash’s smart contracts do not fall under the property definition in the International Emergency Economic Powers Act (IEEPA) because they cannot be owned or managed.

    “We hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the “property” of a foreign national or entity, meaning (1) they cannot be blocked under IEEPA, and (2) OFAC overstepped its congressionally defined authority,” the judges said.

    The International Emergency Economic Powers Act (IEEPA), established in 1977, is a US federal statute granting the President the power to oversee and restrict specific financial activities. It also targets modern technologies such as crypto mixers.

    Two-Year-Long Sanction

    In August 2022, the US Treasury sanctioned Tornado Cash, claiming it had facilitated the laundering of over $7 billion in crypto since its launch in 2019. By targeting Tornado Cash, OFAC effectively prohibited US individuals and entities from using the protocol’s smart contracts.

    A few weeks afterward, six Tornado Cash users, spearheaded by Joseph Van Loon and backed by Coinbase, filed a lawsuit against the Treasury, asserting that the inclusion of 44 Tornado Cash smart contract addresses on the Specially Designated Nationals (SDN) list was unlawful.

    Crypto advocacy group Coin Center also argued that the sanctions were overly broad and unjustly restricted lawful users from leveraging Tornado Cash’s privacy features.

    Nearly a year later, a federal judge in Texas ruled in favor of the US Treasury, concluding that Tornado Cash qualified as an entity subject to designation under OFAC regulations.

    Meanwhile, since the news broke, Tornado cash (TORN) has surged, up 269.29% in the last 24 hours. At the time of publication, the asset is trading at over $13.

  • UK to Officially Regulate Cryptocurrency by 2026

    UK to Officially Regulate Cryptocurrency by 2026

    The United Kingdom (UK) plans to implement a comprehensive regulatory framework for cryptocurrency by 2026, signaling a major step toward promoting transparency and consumer protection in the sector.

    A Bloomberg report noted that a range of discussion documents and consultations will commence as early as this quarter to draft regulations addressing market manipulation, trading platforms, crypto lending, and stablecoins, among other topics.

    FCA to Implement Crypto Regulations 

    A blog post on the Financial Conduct Authority (FCA) website also revealed that input from more than 100 entities spanning the crypto and traditional finance sectors has been gathered. Participants include digital asset platforms, financial institutions, trading companies, blockchain analytics providers, and major regulatory organizations such as the Treasury, the Bank of England, and the United States Securities and Exchange Commission (SEC).

    Following the FCA report, Mark Long, Executive Director, emphasized the critical need to prevent market manipulation, stating that it is essential for the proper functioning of financial markets and enabling investors to make informed decisions. He further noted the significance of addressing market misconduct within the crypto sector and implementing robust regulations to curb such activities.

    Data from the FCA also noted that 12% of adults in the UK currently hold crypto assets, which marks a 10% rise from the previous figure. Awareness of digital assets among the population has also grown, increasing from 91% to 93%, indicating a steady expansion in adoption.

    Research indicates that more people view crypto as a component of a diversified investment strategy. Around 20% of respondents identified recommendations from friends and family as a key motivation for buying crypto.

    Additionally, long-term savings for crypto investments grew from 19% in 2022 to 26% in 2024, while purchases made using credit cards or overdrafts climbed from 6% to 14% during the same timeframe.

    SEC Targeting Big Players

    Over the years, the SEC has drawn criticism for its rigorous stance on the crypto industry. In 2023, under the leadership of Chairman Gary Gensler, the agency pursued 46 legal actions against crypto companies, targeting prominent players such as Binance, Coinbase, and Bittrex.

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

    The firm noted in its lawsuit that the SEC had 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.

  • FTX Co-Founder Gary Wang Has Been Spared From a Prison Sentence

    FTX Co-Founder Gary Wang Has Been Spared From a Prison Sentence

    Gary Wang, co-founder of defunct crypto exchange FTX, has been spared from a prison sentence as prosecutors believe that he should be freed due to his swift compliance with the investigating forces after the incident, which helped them to convict others involved in the crime.

    Many FTX allies have pleaded for mercy on the same grounds. Notably, only Wang has been spared as the judge believes his cooperation is quite remarkable.

    Wang is Not Going Behind Bars

    According to Bloomberg, U.S. District Judge Lewis A. Kaplan noted that Wang has done the right thing for himself and the defunct company by complying swiftly to expose FTX’s deeds on time.

    “I’ve never seen anything quite like what happened here. Wang is entitled to a world of credit,” he said. 

    His prosecutors noted that since Wang played a minimal role in the fraud, he could have easily fought against the charges. Thus, he left them in amazement when he humbly unraveled the FTX code for the investigators, making their work much easier.

    Remarkably, using his programming skills, Wang worked hand-in-hand with the forces to the point of developing a software program that would help the U.S. Department of Justice (DOJ) to detect fraudsters and their activities in the American financial market.

    $11 Billion Forfeiture

    Although he is no longer going to be put behind bars, Wang has to suffer the consequences of his involvement in the fraud partially. Therefore, the court has ordered to forfeit $11 billion, the same amount as other FTX allies.

    Notably, he has already given in to the order by agreeing to liquidate his Coinbase and Vanguard accounts and submit the proceeds to the U.S. He is also relinquishing any rights to the seized $600 million, which was initially tied to FTX and its co-founder, Sam Bankman-Fried (SBF).

    During the hearing, Wang remorsefully commented, “I profoundly regret my choices. Nothing I do will ever be able to make up for those choices.”

    Others Bag Prison Sentences   

    The court has decided on long prison sentences for many FTX personnel involved in the fraud. SBF has been serving his 25-year prison sentence since March. A former FTX executive, Ryan Salame, began serving a seven-and-a-half-year prison sentence in May.

    Meanwhile, the defunct exchange has revealed plans to reimburse its creditors by January 2025.

  • Morocco to Lift Crypto Ban, Regulatory Law Already Drafted

    Morocco to Lift Crypto Ban, Regulatory Law Already Drafted

    Morocco is taking a significant step towards regulating crypto, with a draft law currently undergoing adoption. This move comes after a ban on digital assets, which has been in place since 2017 despite their continued underground use by the public.

    Morocco Drafts Crypto Regulatory Law

    According to a Reuters report, Abdellatif Jouahri, the governor of Bank Al Maghrib, Morocco’s central bank, stated that it had prepared the draft law to regulate crypto assets. This marks a shift in the country’s stance on digital assets. The decision to regulate crypto is likely driven by the growing adoption of digital assets in Morocco despite the ban.

    Introducing a regulatory framework for crypto in Morocco could have significant implications for the country’s finances. As the central bank governor hinted, it may increase financial inclusion and provide a more secure environment for crypto transactions.

    While the Morocco crypto community is expecting the unban of crypto, Jouahri mentioned that the central bank is also considering developing a central bank digital currency (CBDC), which would be controlled by the central bank, unlike decentralized crypto.

    Meanwhile, the North African country has been cautious in its approach towards crypto over the years, fearing the loss of economic and monetary sovereignty. However, with the recent rise and hype surrounding crypto, the country is now exploring ways to harness its potential while maintaining control.

    Other Countries Make Similar Move

    While Morocco plans to regulate crypto, other African countries like Ghana have recently made a similar move. The West African nation is poised to enter the crypto industry, with the Bank of Ghana (BoG) planning to introduce a regulatory framework to guide digital asset adoption in the country, marking a significant shift from the BoG’s previous stance.

    The United Kingdom is also set to officially regulate crypto by 2026 to provide clarity and protection for consumers while promoting innovation in the industry. The regulators have published a roadmap outlining plans, which include proposals for stablecoin regulation, trading platforms, and decentralized finance (DeFi) activities.

    While other countries are becoming more crypto-friendly, China, which imposed a blanket ban on crypto transactions in 2021, has yet to lift the restriction officially. Although rumors of a possible lifting of the ban have been circulating, no official announcement has been made to confirm or deny these claims. Nonetheless, some Chinese residents still get involved in secret crypto transactions.

  • Base Network Surpasses $10B in TVL Amid Ecosystem Growth

    Base Network Surpasses $10B in TVL Amid Ecosystem Growth

    The Ethereum layer-2 network Base, affiliated with the crypto exchange Coinbase, has achieved a significant milestone by exceeding $10 billion in total value locked (TVL) and reaching an impressive transaction speed of 106.26 transactions per second (TPS). These achievements show Base’s growing influence in the decentralized finance (DeFi) and Web3 ecosystems. 

    The network’s founder, Jesse Pollak, noted that Base represents nearly a 28% increase in TPS compared to November 23. Back in January, Base was averaging just 4 TPS.

    Base’s TVL Hit $10.7B

    Data from L2BEAT revealed that Base’s TVL climbed to $10.7 billion after surpassing the $10 billion threshold on November 15. This achievement positions Base as the second-largest Ethereum Layer 2 by TVL, following Arbitrum One, which holds $18.3 billion. Base secured its spot ahead of OP Mainnet in June.

    L2BEAT also reported that Ethereum layer-2 solutions now hold a combined total value locked of $49.3 billion.

    Base’s increase in TPS reflects the growing competition among Ethereum layer 2s, which aim to rival Solana, one of the fastest blockchains.

    Starknet, one of these competitors, also aims to boost its TPS by four times to exceed 1,000 TPS while cutting fees by 80% over the next three months.

    Base Surpasses 1B Transactions

    Base recently surpassed 1 billion transactions, driven primarily by the memecoin frenzy in this bull cycle. However, the network’s popularity with memecoins has also drawn scammers, leading to an 18-fold rise in funds stolen through phishing scams from January to March.

    Meanwhile, in late October, Base introduced fault proofs as part of its plan to gradually decentralize Ethereum layer 2. Base explained that fault proofs are crucial in transitioning from Stage 0, where a rollup operates with complete training wheels, to Stage 1, which uses limited training wheels.   

    Following Base’s recent milestone, the layer-2 blockchain recorded explosive growth, with 2 million daily active addresses. This remarkable growth puts Base above other layer-2 solutions like Arbitrum and Optimism combined by 40%.