Cryptocurrencies To Watch

Tag: Top Crypto News

  • Restaurant Project Flyfish Club Settles SEC with $750k Over NFT Violations

    Restaurant Project Flyfish Club Settles SEC with $750k Over NFT Violations

    The United States Securities and Exchange Commission (SEC) has ordered Flyfish Club, a restaurant project, to pay $750,000 for selling unregistered non-fungible tokens (NFTs). This recent development shows that despite claims that the SEC dismisses crypto as securities, the regulatory body’s stance on NFTs remains unchanged.

    SEC Fines Flyfish Club

    SEC issued a cease and desist order against Flyfish Club on September 16, stating the company sold 1,600 unregistered NFTs to U.S. investors, generating $14.8 million in revenue. The NFTs granted access to a proposed Manhattan restaurant, but the financial agency deemed them securities, requiring registration under federal law.

    By classifying the NFTs as securities, the regulatory watchdog assert that Flyfish Club violated registration requirements, resulting in regulatory action. The restaurant project, founded by the NFT enthusiast Gary Vaynerchuk, will destroy its remaining tokens and forfeit future royalties from sales as part of its settlement with the SEC.

    The restaurant, initially funded through the NFT sales, is scheduled to open this month despite the regulatory issues. Vaynerchuk, who gained fame during the 2021 NFT boom, will move forward with the launch while complying with the SEC’s terms. The settlement resolves the regulatory scrutiny surrounding Flyfish Club.

    SEC Officials Criticize Settlement

    SEC Commissioners Hester Peirce and Mark Uyeda criticized the agency’s decision to fine Flyfish Club for selling unregistered NFTs. They claim these NFTs were simply a creative way to sell restaurant memberships and should not be classified as securities.

    The officials expressed concerns that this enforcement action will stifle innovation and could harm the NFT market. Peirce and Uyeda argue that this approach fails to recognize the distinct nature of NFTs and their potential to facilitate new and innovative business models. They further called for more precise guidelines to ensure that innovations are not halted.

    The latest report follows a line-up of the SEC’s regulatory actions against NFT-focused platforms. Last month, the financial regulator issued a Wells notice to OpenSea, a leading NFT marketplace. The timing of the Wells notice has raised questions about whether it influenced Magic Eden’s decision to separate U.S.-based users.

    The SEC’s stance on NFTs is still unfolding and may change as the market expands, and new cases arise.

  • DeFi Lender DeltaPrime Hacked for $6M in Fresh Exploit

    DeFi Lender DeltaPrime Hacked for $6M in Fresh Exploit

    DeltaPrime, a decentralized lending and borrowing platform, has been compromised in a major cyber attack. At press time, the hack has resulted in a loss of $6 million and could lead to more losses. The blockchain security protocol Cyvers reported details regarding the nature of the exploit via X (formerly Twitter).

    DeltaPrime Gets Hacked

    DeltaPrime became a multi-chain protocol in September 2023 when it expanded its reach to the Arbitrum network. Current findings concerning the hack show that the exploit was perpetrated only in this chain. Funds in the Avalanche blockchain remain unaffected, with no reported vulnerabilities or incidents, providing relief for users who invested in that network.

    Cyvers initially reported that the decentralized protocol hack was estimated at $4.5 million. However, a subsequent wave of malicious transactions escalated the total stolen amount to nearly $6 million. Highlighting how the hack was executed, the security protocol’s tweet wrote: the “attacker had control on the private key…then he upgraded the proxy.”

    The hacker took control of DeltaPrime’s admin wallet and manipulated the contracts to steal $5.98 million from the platform’s pools on Arbitrum. They did this by redirecting the contracts to a malicious one, allowing them to drain the funds. This method of exploit is known as contract hijacking.

    DeltaPrime Confirms Hack

    The protocol’s silence after the Cyver updates left users in fear, uncertainty, and doubt. DeltaPrime took to X a few hours later to confirm the hack reports. The project’s team acknowledged the exploit, adding that investigators are trying to determine how this happened. It confirmed that the Avalanche version has more robust security and wasn’t affected.

    DeltaPrime announced that the risk from the recent hack has been contained. It noted that the team is now focused on retrieving stolen assets and utilizing the insurance pool to cover potential losses. They claim to explore other additional measures to minimize user losses and will keep users informed of future updates via Discord and X.

    Notably, recent hacks involving Asian platforms WazirX and Indodax have yet to be resolved. Over $255 million was lost in both hacks.

  • Donald Trump to Launch Crypto Platform World Liberty Financial on Monday

    Donald Trump to Launch Crypto Platform World Liberty Financial on Monday

    United States presidential crypto-friendly candidate Donald Trump, alongside his sons, Donald Jr. and Eric Trump, have revealed plans to launch a new project, World Liberty Financial (WLFI), on September 16.

    Among many features, the crypto project will boost stablecoin adoption and promote decentralized finance (DeFi) technology in the U.S. The project is a strategic move toward Trump’s efforts to make America the world’s capital of Bitcoin if he wins the forthcoming election.

    Trump to Launch WLFI

    Trump announced via a video shared on X that he’s going live on Monday, September 16, to promote the launch of his son’s new project, which will be an instrumental tool to aid crypto adoption in the country. He said, “We are embracing the future with crypto and leaving the slow and outdated big banks behind.”

    Before now, Trump had revealed very little information about the WLFI project on his social media accounts. In a video from last month, he portrayed WLFI as a tool to safeguard people from being choked out of their businesses.   

    World Liberty Financial’s X account revealed plans to promote decentralization and adoption of U.S.-pegged stablecoins. It intends to spread stablecoins across the globe and ensure that the U.S. dollar remains the world’s dominant currency without any competition from other currencies to maintain America’s financial leadership.

    “We want U.S.-pegged stablecoins to remain the world’s settlement layer for the next 100 years. The U.S. dollar has been the backbone of global finance for decades, but it’s now under attack by foreign nation-states,” the WLFI team stated.

    CoinDesk noted in the project’s whitepaper that WLFI will offer a digital wallet and a credit account system. It will allow users to lend, borrow, and invest in cryptocurrencies.

    Trump’s Crypto Community

    As part of his presidential campaign, Trump has supported crypto adoption in many visible ways. He also welcomed donations from supporters worth over $5 million in BTC and other altcoins to support his campaign.

    Additionally, Trump has won the hearts of many crypto enthusiasts by revealing his plans to sack, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC). Famous investors and analysts have predicted a positive outcome for Bitcoin and the entire crypto industry if Trump becomes the next President of the United States.

  • Bitcoin Will Hit $100k No Matter Who Wins U.S. Election: Crypto Experts

    Bitcoin Will Hit $100k No Matter Who Wins U.S. Election: Crypto Experts

    With the U.S. presidential election around the corner, investors and analysts have shared various ideas on factors that may influence bitcoin price action after the election. While many predict a better outcome for the crypto market only if a crypto-friendly candidate wins, some have expressed with strong belief that bitcoin will jump to at least $100k no matter who becomes the next U.S. president.

    Bitcoin at Six Figures in 2025

    As revealed by CNBC on Wednesday, many crypto investors are coming to adopt the idea that bitcoin will thrive whether pro-crypto candidate Donald Trump wins or his opponent, Vice President Kamala Harris, takes the seat after the election on November 5.

    Steven Lubka, head of private clients and family offices at Swan Bitcoin, expressed conviction and certainty that bitcoin would trade at six figures by 2025, regardless of who wins the election. 

    “Do I think we’ll be in the six figures by 2025? Almost certainly. Do I think we’ll be in the six figures regardless of who wins? Almost certainly,” he said, adding, “Bitcoin has always been an investment that is rooted more in the fiscal and monetary profile of countries. Neither candidate changes that.”

    Supporting Lubka, James Davies, co-founder of the crypto trading platform Crypto Valley Exchange, stated that the fears of bitcoin going down if Harris wins are exaggerated. Although crypto startups may struggle to thrive, the industry will continue progressing, especially with the approval of crypto exchange-traded funds (ETFs) in the U.S. this year.  

    “The truth is that the market is robust, not centered on the U.S., and hasn’t reacted negatively to major events from either side. If we want to build a big eco-system, we cannot afford to be partisan,” he said.

    Tyrone Ross, founder of investment advisor 401 Financial, also expressed that the election will have minimal effect on bitcoin price, stating the approval of and rapid growth of spot crypto ETFs across continents as a factor.

    Trump and Bitcoin Predictions

    Trump has undeniably supported bitcoin adoption throughout his campaign, while Harris has not openly mentioned bitcoin and crypto in all of her speeches. Following their debate on Tuesday night, bitcoin dropped by 3%.

    Considering Trump’s proactive approach to crypto, famous analysts and investors believe his victory will benefit the crypto industry. Popular tech billionaire Elon Musk has expressed open support for Bitcoin because of Trump’s stand. Bernstein analysts have also predicted that if Trump wins, the world’s biggest crypto will jump to $90k at least before the end of Q4 2024.  

  • Indonesian Crypto Exchange Indodax Suffers $22M Hack

    Indonesian Crypto Exchange Indodax Suffers $22M Hack

    Indodax, the largest crypto exchange in Indonesia, has become the latest victim of a security breach, losing $22 million worth of assets to the explioters.

    Following the unresolved exploit of India’s WazirX, this incident marks the second major hack in the Asian crypto market this year.

    How Did Indodax Lose $22M to Hackers?

    The security breach at Indodax has been flagged by several blockchain security and transaction tracking services including SlowMist, Cyvers, PeckShield, and Spot On Chain. This exploit has sparked concerns about the vulnerability of user funds on centralized crypto exchanges.

    SlowMist’s investigation revealed that the Indodax breach was caused by a vulnerability in the exchange’s withdrawal system, enabling the hacker to withdraw funds from Indodax’s hot wallet.

    The hacker has already swapped most of the stolen tokens for other coins. The current holdings of the hacker include 5,584 ETH ($13 million) on the Ethereum and Optimism network, 6.84 million POL ($2.56 million) on Polygon, 16.7 million TRX ($2.55 million) on Tron, and 25 BTC ($1.41 million). 

    Indodax Reassures Users

    Following the reports from various blockchain security firms, Indodax announced that its security team has detected a potential security issue on the platform, resulting in a maintenance check to ensure the system’s integrity. At press time, users were unable to access the Indodax web and mobile applications.

    The exchange reassured its customers that their balances in both crypto and rupiah, the Indonesian local currency are 100% safe. The maintenance aims to enhance the exchange’s security and convenience of transactions. Indodax will provide further updates once the investigation is complete, keeping users informed about the status of their platform.

    The hack has left Indodax in a vulnerable position. With its growing popularity, the attack’s timing and impact are particularly concerning. The Indonesian platform has expanded its user base from 9.9 million in 2021 to over 28 million in 2024. The recent exploit can reduce users’ confidence in the exchange resulting in their scouting for other exchanges with clean records.

    The growing hacks on centralized exchanges reveal their vulnerabilities and users need to consider alternative secure options like decentralized exchanges (DEXs) and cold storage.

  • Bernstein Puts Bitcoin at $90k if Trump Wins

    Bernstein Puts Bitcoin at $90k if Trump Wins

    Famous wealth management firm Bernstein sees the upcoming U.S. presidential election as a vital factor in determining bitcoin price action before the end of the year. Stating a few reasons, it has predicted that if crypto-inclined presidential candidate Donald Trump wins, the world’s first cryptocurrency would jump to $90k, but if his opponent Kamala Harris secures the presidential position, bitcoin could drop down to $30k. 

    Bitcoin Will Reach $90K: Bernstein

    In a Monday research report, Bernstein analysts expressed opinions on how the U.S. presidential election scheduled for November 5 could affect the crypto market.  

    “In case of a Trump win and by Q4, we expect bitcoin to reach close to $80,000-$90,000 range. However, if Harris wins, we expect bitcoin to break the current floor around $50,000 and test the $30,000-$40,000 range,” says Gautam Chhugani, one of Bernstein’s top analysts. 

    Supporting the prediction, the analysts have stated that Trump has positioned himself as the crypto-supportive candidate throughout his campaign, winning the support of many famous crypto advocates. 

    Trump attended this year’s Bitcoin Conference held in Nashville as a key speaker, where he expressed open support for Bitcoin as the best tool to restructure America’s economy. Also, Trump has revealed plans to fire Gary Gensler from his position as chairman of the U.S. Securities and Exchange Commission (SEC). 

    Moreover, Trump has vowed to make America the world’s “Capital of Bitcoin“ if he wins the election. In contrast, the analysts noted that Harris has not shared any public view of crypto. 

    Other Bitcoin Price Predictions

    The famous British bank Standard Chartered has predicted a similar outcome for bitcoin to that of Bernstein analysts. Earlier this year, analysts from the bank iterated that the cryptocurrency could jump to $150k if Trump wins the election. 

    “As we approach the U.S. election, I expect $100,000 to be reached and then $150,000 by year-end in the case of a Trump victory,“ said the bank’s head of forex and digital assets, Geoffrey Kendrick.

    Earlier in April, Bernstein analysts also predicted an uptrend in bitcoin’s price to $150k per BTC, stating the approval of Bitcoin Exchange-Traded Funds (ETF) as an important determining factor.     

  • Bianco Research CEO Says Bitcoin ETFs Need Time to be Instrument of Adoption

    Bianco Research CEO Says Bitcoin ETFs Need Time to be Instrument of Adoption

    Jim Bianco, CEO of analytics firm Bianco Research, believes that spot Bitcoin exchange-traded funds (ETFs) need time to be an instrument of adoption.

    In a recent X post, Bianco noted that spot Bitcoin ETFs have not yet met the high expectations set before the approval despite launching for trading in January.

    The Bianco Research CEO noted that the recent outflows, investors facing losses in their positions, and the absence of significant institutional investment suggest that the Bitcoin ETF market may require more time to develop fully.

    U.S. Spot Bitcoin Hits $1B in Net Outflows

    Data from investment management company Farside Investors revealed that the U.S. spot Bitcoin ETFs have recorded over  $1 billion in net outflows in the last eight trading days. The spot Bitcoin ETF market now holds approximately $48 billion in assets under management, a decline from its March peak of $61 billion.

    Commenting on the post, Bianco noted that very little fresh capital has flowed into the crypto market, with most ETF inflows coming from on-chain holders transitioning back to Traditional Finance (TradFi) accounts.

    “It’s not an adoption vehicle. Instead a small tourist tool and on-chain is returning to Tradfi,” Bianco said.

    The research expert also predicted that the market may not reach its full potential until the next Bitcoin halving in 2028, coupled with major advancements in blockchain technology.

    Other Analysts Weigh in

    Not everyone agreed with Bianco’s thoughts on Bitcoin ETFs. For instance, Bloomberg’s senior ETF analyst, Eric Balchunas, pointed out in a September 8 post on X that Bitcoin ETFs have amassed billions in assets under management within just eight months.

    “If IBIT has like $20 billion in assets and that’s considered a failure then what word should be used to describe an ETF with $7 million in assets?” Balchunas asked.

    Another crypto analyst, Bryan Ross, took a different view from Bianco, arguing that “if most ETF trades are NOT institutional, this means institutions aren’t even here yet, and we could see massive institutional inflows next time FOMO and greed show up.”

    Meanwhile, among the U.S. spot Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) stands out with over $20 billion in inflows.

    Fidelity’s Wise Origin Bitcoin Fund (FBTC) has attracted nearly $10 billion. The ARK 21Shares Bitcoin ETF (ARKB) and the Bitwise Bitcoin ETF Trust (BITB) have accumulated about $2 billion in net inflows.

  • Ethereum Ex-Adviser Seeks $100M from Law Firm Over Crypto Extortion Case

    Ethereum Ex-Adviser Seeks $100M from Law Firm Over Crypto Extortion Case

    Steven Nerayoff, former adviser to the Ethereum Foundation, has filed a $100 million lawsuit against law firm Covington & Burling, alleging they mishandled his defense in a 2019  crypto extortion case brought by the United States government. He claims this has resulted in significant financial losses and harm to his reputation, hence the legal action.

    Nerayoff Crypto Extortion Case

    In September 2019, the U.S. Attorney’s Office announced the arrest of Nerayoff and his associate Michael Hlady.  It was alleged that the duo who were hired to assist a Seattle-based company with its initial coin offering (ICO), demanded millions of dollars and company tokens, without providing “additional services.” The charges were later dismissed in May 2023.

    Even though the case has been dismissed, unsatisfied Nerayoff claims that Covington lawyer Alan Vinegrad advised him not to share justifying evidence, including videos and emails, with prosecutors. The ex-adviser argued that if these were presented, they would have proven that his dealings were “entirely lawful” and the case would have ended earlier.

    Nerayoff claims that he spent over $1 million in legal fees over the next three years, after Covington & Burling withdrew from representing him following his indictment in January 2020. The accused law firm denied the allegations, calling the lawsuit “meritless” and stating it will vigorously defend against it.

    Nerayoff’s Attorney Seeks $100M

    Nerayoff’s current attorney, Romeo Salta, is seeking significant compensation for damages due to the alleged mishandling of his case by Covington & Burling. The law firm claimed that the indictment resulted in significant harm to their client’s business and reputation. It stated that he was unable to engage in business and lost other contracts in the crypto industry.

    As such, Salta is seeking an amount “to be determined at trial but not less than” $100 million in damages. What this means is that the amount will be determined based on the evidence presented during the trial. Nerayoff’s legal team seems certain that the harm caused by Covington & Burling’s alleged negligence warrants significant compensation. 

    Nerayoff appears to be on a suing spree this year. In April, he filed a $9.6 billion lawsuit against the government. Furthermore, on July 22, Nerayoff filed a $10 million defamation lawsuit against Tyler Fayard, a social media personality known as “Boring Sleuth”