Yellow Card Officials Predicts Crypto Boom in Nigeria Following the Lifting of Ban on Digital Assets

As Nigeria seeks to become a go-to destination for crypto firms, the regulator plans to create a friendly environment for digital assets. A few days ago, the Nigerian Central Bank (CBN) lifted the ban on bank involvement in crypto activities. 

The lifting of the ban on digital assets in Nigeria sparked excitement among the crypto community.

Crypto Adoption Expected to Increase in Nigeria

In an advanced report, the prominent crypto exchange in West Africa, Yellow Card, demonstrated that the new provision for digital assets will support the growth of the crypto sector. 

The exchange was pleased to state that the abolition of prohibitive measures on crypto will support the responsible integration of digital assets into traditional finance. This implies the new rule will help mainstream crypto adoption in Nigeria.

A statement from the chief data protection officer at Yellow Card, Lasbery Oludimu, revealed that the peer-to-peer (P2P) market had gained dominance in the digital sector during the ban.

 He envisages that removing the bank’s involvement in crypto activities will foster innovation in the crypto sector. The official predicts the innovation will drive fierce competition in the Nigerian crypto sector.

Oludimu added that upholding the crypto ban in West Africa will trigger a surge in crypto-related activities. This implies that Nigeria will witness increased crypto and blockchain use cases.

The official predicted that the increase in crypto activities in Nigeria will oblige the regulators to develop regulatory clarity for digital assets. Eliminating the crypto ban in Nigeria challenges the local exchange and token issuers to operate compliantly.

However, Oludimu noted that with the changes in the financial landscape, the reentry of banks into the digital sector might create unhealthy competition among the industry leaders.

Industry Leaders Aim to Bring Innovation to the Crypto Sector

The executive predicts that with the fierce competition, crypto firms and financial institutions will focus on improving the efficiency of transactions. 

In the latter, the official stated that the new crypto rule will encourage industry leaders in the traditional finance industry to collaborate with the crypto firms. 

He anticipates that the collaboration between the traditional finance and crypto sectors will impact the responsible integration of emerging technologies into the digital space.

The executive added that with the new rules in Nigeria developers will drive innovation in the crypto sector. He believes the new crypto regulation will provide licensed businesses such as Yellow Card with a conducive business environment.

In his address, Oludimu stated that the changes in the regulatory approach for crypto assets in West Africa would restore the integrity of the financial sector and boost customers’ confidence. 

Nigeria Seeks to Create a Friendly Environment for Digital Assets

A review of the Yellow Card website demonstrated that the exchange has expanded its customer base over the past few months. This implies that the friendly crypto regulation has enabled Yellow Card, among other companies, to onboard more users. 

After attaining the desired customer base, the Yellow Card team revealed plans to partner with forward-thinking individuals and business entities. In an earlier report, the Yellow Card team announced plans to support the advancement of the crypto sector in Nigeria through innovation and creativity.

According to Chainanalysis Nigeria ranks as the leading country with the highest crypto savvy population in Africa. The report indicated that crypto activities in Nigeria have increased year-over-year. With the exciting growth of the Nigerian crypto sector, the regulator has focused on enforcing friendly policies for digital assets.  

In an interview with the CBN officials, the bank stated that the global trends forced the regulators to reverse their anti-crypto move and regulate the digital sector. The CBN report demonstrated that the Financial Stability Board (FSB) and officials from the International Monetary Authority (IMF) had advised Nigeria to focus on supervising the crypto industry. The global regulators stated that the crypto sector must be managed rather than banned.

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Nordic-CT Review – Is nordic-ct.com Scam or a Legit Crypto Broker?

Nordic-CT Review

In recent years, the expansive online trading market has captured the imagination of many, drawing individuals eager to explore the wealth of opportunities it presents. But, to harness the full potential of these prospects, it is important to ensure they are equipped with the right trading platform. To assist you in this quest, I present to you this Nordic-CT review for guidance.

The platform I will be talking about here provides traders with an array of diverse features and tools. It stands ready to bolster their trading journey and empower them to make judicious decisions. Continue reading for an in-depth exploration of the broker’s capabilities.

Seamless and Trustworthy Payment Methods

Let’s begin this Nordic-CT review by discussing a vital aspect, which is the impeccable payment system provided by the Nordic-ct.com broker platform. Ensuring traders encounter no unnecessary hurdles when dealing with their funds is a top priority here.

They’ve streamlined the deposit and withdrawal process, ensuring you don’t have to worry about any time consuming hurdles. With this platform’s wide acceptance of various online payment methods, funding your account is a breeze. For instance, traders can easily deposit using Visa or MasterCard, among other options.

Furthermore, the platform goes the extra mile to maintain transparency and trust. It diligently manages a segregated account for traders’ funds, assuring clients that their investments are secure and not utilized for the platform’s own operations. A strong, enduring partnership between traders and their broker hinges on trust, and this is precisely why the NordicCT broker platform places a paramount emphasis on transparency.

Get Deep Market Insights

Another standout feature of the Nordic-ct.com trading platform is its vast and up to date news section. This section is ideal for keeping traders well-informed about the latest situation in the market. These invaluable notifications on market conditions serve as a powerful tool for traders, aiding them in making educated decisions that could pay off in the long term. For instance, these insights enable traders to pinpoint optimal moments for significant investments across a range of assets.

This equips traders with the ability to identify potential opportunities and assess their potential advantages. It is also worth mentioning here that this platform’s web-based interface is easily accessible, granting traders the freedom to execute timely transactions once they’ve grasped how the market works. This provision of knowledge empowers traders to navigate the market with confidence and a high level of precision.

Access the Assets that you really want

Unpredictability reigns supreme in the online trading world, which is why it is vital to adopt a strategy that mitigates risk. The path to financial stability demands diversification of one’s holdings, and the NordicCT trading platform offers an effortless solution. With an array of assets at your disposal, including equities, forex currency pairs, crypto and stocks you can effectively diversify your portfolio.

Diversification not only acts as a safeguard against significant financial losses but also paves the way for the advancement of your trading career. The anxiety stemming from the threat of substantial losses is effectively, granting you a sense of assurance in your investment strategy. Moreover, the convenience of managing all your holdings under a single platform, courtesy of the Nordic-CT trading platform, eliminates the need to change different brokers.

Kick things Off the Right Way

This online trading platform has rightfully earned its place among the elite due to its commitment to meeting traders’ needs. The account creation process is refreshingly straightforward and hassle-free. While some platforms subject users to a drawn-out and arduous signup ordeal, Nordic-CT ensures you can hit the ground running with minimal delay. It’s disheartening to see how many online brokers neglect the comfort and convenience of their traders from the very start, but rest assured, this platform is different.

In addition to its user-friendly onboarding procedure, this online broker offers an expansive array of services, including robust data security measures and prospects across diverse marketplaces. What’s more, Nordic-CT boasts a web-based portal that’s as intuitive as it is accessible. Traders can seamlessly connect from anywhere in the world, requiring only a decent internet connection, without the need for tedious app downloads or the burden of carrying additional hardware.

Is Nordic-CT Scam or Legit?

This platform opens the gateway to a diverse array of pioneering features and tools that have the potential to propel one’s trading journey to new heights. Moreover, Nordic-CT’s commitment to providing a secure trading environment ensures traders can engage in their trading activities with peace of mind. Thus, it’s safe to conclude that this trading platform earns its legitimacy and stands as a reliable choice for traders.

Final Thoughts

With this Nordic-CT review in hand, you now possess a clear understanding of how this platform can actively support you in pursuing your forex or crypto trading aspirations, both in the short term and over the long haul. Make sure to choose an account that aligns with your skill level and explore the demo feature before you start making big investments.

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DeFiance Capital Top Executive Resigns to Join Chromia Blockchain Network

DeFiance Capital, the California based crypto investment company has been hit by a major leadership shake up following the departure of the top level executive. Last week, the head of portfolio growth at DeFiance, Yeou Jie Goh, stepped down from his role.

He stated that he would be leaving office to pursue other career opportunities. Goh joined DeFiance in late 2021 and has supported investment managers to attain its core objectives.

DeFiance Faces Transition in Leadership

During his tenure, Goh led the DeFiance team in a legal dispute with Teneo, the liquidators of Three Arrow Capital (3AC). DeFiance Capital initially managed assets worth $140 million, comprising 3AC corporate structure. 

Following the implosion of FTX that dragged a high-profile crypto exchange to a liquidity crisis, the embattled hedge fund filed for Chapter 11 of bankruptcy protection. The insolvency of 3AC exposed most of the crypto firms to financial woes. 

This forced the stakeholders to develop a restructuring plan to repay the 3AC creditors. Following recent court proceedings, the Teneo legal team claimed that the assets managed by DeFiance should be retained by the 3AC estate and distributed evenly to the creditors. 

On the other hand, the DeFiance team argued that the funds should be returned to the investors. After lengthy court proceedings, the judge agreed to the case in Singapore on August 8, 2024. 

The report indicates that the DeFiance was materially affected by the fallout of 3AC. This forced the investment company to launch a $100 million fundraising to invest in liquid tokens. 

Chromia Reveals Next Move

Apart from this, Goh’s resignation left the investment company with professional gaps. Shortly after Goh revealed plans to resign from his role, the DeFiance team announced a vacant job position. 

In a separate report, the Chromia co-founder Or Perlman appointed Goh for a top-level executive role. Based on Goh’s vast experience, Perlman believes that setting up an executive will help Chromia attain the desired success.

In readiness to launch Chromia mainnet, Perelman anticipates that Goh will leverage his experience to take the firm to the next level. He stated that Chromia is developing a blockchain network programmed in the Rell language.

Crypto Firms Seeks to Reduce Transaction Cost

According to the report, the Rell smart contract has characteristics similar to SQL language. The primary objective of developing the Rell blockchain network is to reduce transaction costs and increase speed.

 The executive anticipates that launching the new blockchain network will support the developers in building Web3 applications more effortlessly. In his address, Perelman was pleased to state that Chromia was developing a blockchain network.

Besides developing the Rell smart contract Chromia recently launched its native token CHR on several trading platforms. According to CoinMarketCap, CHR is trading at $0.1833, a 0.43% increase in a day.

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Pancakeswap Community Votes to Remove 300 Million Tokens From Supply

The Pancakeswap community on Thursday voted to remove 300 million tokens from the maximum supply. This is in response to a proposal to remove the tokens and leave only 450 million tokens.

The project posted a vote proposal asking for community members to vote, and the result shows a 97.88% majority in favor of reducing the maximum supply from 750 million to 450 million. The official maximum supply will be reflected on major price-tracking platforms, like CoinGecko and CoinMarketCap, by January 4, the project said.

Pancakeswap (CAKE) was initially created as an inflationary cryptocurrency with no supply cap. This means that more CAKE tokens would continue to be released into supply as long as there’s need.

PancakeSwap stated that the reason for the change in supply was to advance toward the goal of achieving “ultrasound CAKE” and to signal the token’s shift away from a highly inflationary model.

“After achieving consistent deflation in recent months, this latest strategic move to reduce the CAKE token’s total supply to a maximum cap of 450 million CAKE aligns with PancakeSwap’s vision for a robust, deflationary model,” the PancakeSwap team said.

Pancakeswap announced the proposal to reduce the supply of tokens by 300 million last week.

“By reducing our token supply by 300,000,000 CAKE, we signal PancakeSwap’s successful pivot from a high-inflation emissions model, to a much more efficient flywheel,” PancakeSwap wrote on Twitter last week.

Making CAKE More Valuable

Pancakeswap has come a long way since its launch in 2020. Since then, the project has revamped its tokenomics emissions and growth strategy. Reducing the supply of the CAKE token is one strategy to reduce the supply and make each CAKE more valuable.

It is similar to the burn mechanism that many projects adopt to reduce the supply of their tokens and in turn make them more valuable. The only difference is that this is a one-off event.

The project also plans to introduce a vote-escrowed model, allowing CAKE holders to stake their tokens for veCAKE, which includes staking rewards and incentives. 

“Now that CAKE has achieved consistent deflation for several months and is focusing on accelerating our journey to ultrasound CAKE, this proposal aims to reduce the CAKE token’s total supply to a maximum cap of 450 million CAKE. With a current circulating supply of 388 million CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model,” the proposal added.

This proposal will definitely attract more users to Pancakeswap who seek to earn rewards from staking and enjoy the other incentives.

About Pancakeswap

Pancakeswap is a decentralized exchange launched by Binance in 2020. Since then, it has evolved to include many other services including stalin, yield farming, and many other interest yielding activities. 

CAKE is the native token of the DEX, and holders can now stake it to earn rewards. Cake is also the token used to pay for transaction fees on the platform. The platform also supports non-fungible tokens (NFTs) now, giving users more options to work with.

Pancakeswap runs on Binance Smart Chain (BSC), so it is a big rival against Ethereum based DEXs like Uniswap in terms of transaction fees which are much lower on Pancakeswap.

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Catalyx Crypto Exchange Suspend Withdrawals and Trading Following a ‘Security Breach’

In a December 28 report, the prominent crypto exchange in Canada, Catalyx, indefinitely suspended withdrawals, depository services and all trading activities following a security breach incident. The discovery of the security breach forced Catalyx to take decisive actions to address the matter. 

In the report, the Catalyx team claimed that the employees fell victim to the exploit, leading to the loss of a substantial amount of funds. The embattled crypto exchange regretted that the hackers stole customers’ funds, dragging the company to financial woes. 

Catalyx Suffers a Security Breach

Upon contacting Catalyx to inquire about the severity of the security breach, the crypto exchange failed to disclose the exact amount that was stolen. However, as a security measure, the Catalyx team confirmed that the withdrawal and trading services will be unavailable during the downtime. 

In the report, the crypto exchange confirmed that the investigation is ongoing in an attempt to recover the lost fund. The Catalyx team stated that in the ongoing investigation, the crypto exchange has partnered with intelligence units, law enforcers and other crypto firms.

Reportedly, the disgraced crypto exchange confirmed engaging a team from Deloitte to track the transfer of the lost assets. The collaboration with the Deloitte team aimed to examine the nature of the security breach and identify the system vulnerabilities on Catalyx trading platforms. 

Catalyx Suspends Operations

Also, the Catalyx team is working with the Alberta Securities Commission to bring down the bad players. In a December 21 report, the commission advised the exchange to temporarily shut down operations for 15 days to proceed with a thorough investigation concerning the security breach.

In response to the security breach, the Catalyx team took precautionary measures to inform the customers of the hacking incident. On the Catalyx website, the crypto exchange stated that following the security breach, the system was suffering from technical issues. 

However, the Catalyx team assured customers that the technical team was fixing the technical challenge and would keep the user up to date. In the report, the Catalyx team anticipate that normalcy will resume as soon as possible. 

Elsewhere, the chief executive of Jae Ho Lee agreed with the commission’s advice and suspended Catalyx operations until January 15. The executive stated that for the last five years, the exchange has operated as a regulated entity and has fulfilled the Canadian National Financial Intelligence Agency’s (FINTRAC) requirements.

A review of the Catalyx report demonstrated that in May 2021, the crypto exchange generated $28 million, a 73% increase month over month.

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India Charges Offshore Crypto Exchanges on Compliance

India’s Financial Intelligence Unit has notified some exchanges of the need for compliance, saying they are operating illegally in the country. 

The agency named top global exchanges including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex among those not operating in compliance with provisions of the country’s Prevention of Money Laundering Act.

In India, the  Financial Intelligence Unit is responsible for monitoring and regulating illegal activities of financial institutions. In addition to the compliance notice issued, the unit has also asked the Ministry of Electronics and Information Technology to block the websites of the affected exchanges in the country.

“Virtual Digital Asset Service Providers (VDA SPs) operating in India (both offshore and onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets are required to be registered with FIU IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act 2002,” according to the notice

India is one of the countries that have not placed an outright ban on crypto, but is wary of the activities of the industry. The country attempted placing a ban on Bitcoin in the past, but this has not deterred Indians from using cryptocurrencies or exchanges.

As a second strategy, the government decided to regulate the industry, first by placing a 30% tax on crypto gains in the country. This also hasn’t deterred Indians’ participation in the industry, so the FIU seeks to bring exchanges under closer scrutiny by demanding that they register with it.

The Law is for Everyone

All the exchanges that are affected are not based in India, but Indians use the services of such exchanges. Before now, no issues had arisen, but now the FIU requires that they register with the agency.

So far, 31 crypto exchanges have registered with the FIU in India, but the offshore exchanges “catering to a substantial part of Indian users” have not registered, the agency said in its notice. The notice further stated that being offshore doesn’t exempt the exchanges from registering with the FIU.

“The obligation is activity-based and is not contingent on physical presence in India,” the statement continued. “The regulation casts reporting, record keeping and other obligations on the VDA SPs under the PML Act which also includes registration with the FIU IND.”

None of the affected crypto exchanges have responded to the notice as at the time of reporting this story.

Regulatory Pressure Mounting Globally

Crypto exchanges and other startups are facing a lot of regulatory pressure in many jurisdictions around the world. In the U.S for example, top exchanges like Binance and Coinbase are facing legal battles for not registering with the securities and exchange commission (SEC).

As time goes on, this kind of pressure is seen in other countries as well, including India now. While crypto regulation in itself isn’t a bad thing, the way regulators approach it can make or break the industry.

With the ongoing trend, more countries may adopt these strict measures which will discourage the crypto industry from thriving, while those that maintain a positive approach may continue to see the industry grow. 

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Analysts Expect Nigerian Crypto Firms Supporting Central Bank to Become Industry Leaders

Following the uplifting of the ban on banks in Nigeria, the crypto community expressed their excitement about the new rules. In a December 23 publication, industry leaders who collaborated with the Central Bank of Nigeria (CBN) in revising the existing crypto regulation were considered to be in a better position than before. 

 A statement from Olumide Adesina, a renowned Nigeria Finance expert, revealed the possibility of crypto firms who supported the authority to amend the crypto regulatoion to receive legal powers to be government gatekeepers for the digital sector. 

Nigeria Lifts Crypto Ban

He recognized the remarkable contributions made by industry leaders in redefining the crypto ecosystem. Instead of condemning the regulators, some critical players in the digital sector supported the government in developing a friendly crypto environment in Nigeria.

When digital assets were still a new concept, Nigerian regulators imposed restrictive measures on crypto activities to combat terrorism financing and money laundering. 

After crypto gained popularity in the West African country, the imposed anti-crypto measures became unmanageable, forcing the regulators to revise the rules. In a recent study, Nigeria ranks among the leading countries in Africa with the highest crypto adoption. 

The surge in crypto activities and the ever-changing nature of the financial sector forced the regulators to team up with key industry players to amend the regulations on digital assets.

Following a series of meetings, the regulators agreed to loosen the ban on crypto in Nigeria. A few days ago, the CBN removed the prohibition for the engagement of banks and financial institutions in crypto activities. 

Rise of Crypto-Savvy Population in Nigeria

The new provision is set to be enforced in 2024 to enable banks and financial institutions to support crypto transactions. According to Adesina, CBN’s crypto move aims to restore the country’s financial stability. 

Adesina admitted that the new rules for digital assets seeks to strengthen the Nigerian financial sector through crypto and blockchain technologies. Apart from this, the lifting of the crypto ban in Nigeria has attracted the attention of key industrial players in the financial industry. 

Commenting on the proposed regulation on digital assets, Adesina noted that the pro-crypto move triggered an increase in crypto activities. He noted that the price movement of the NGN/USDT stablecoin established an upward trajectory following the announcement of the new crypto rules. 

Moreover, the executive observed that stablecoin issued by banks in collaboration with fintech companies will support the growth of the Nigerian financial sector. He confirmed that the stablecoins issued by the local companies will play a critical role in expanding the peer-to-peer (P2P) market.

Nigeria Seeks to Create Crypto-Friendly Environment

In a recent report, Nigeria ranks among the leading P2P markets in the world. The growth of the P2P market emanated from the restrictive measures embraced by the West African country in 2021.

 Following the exciting growth of the Nigerian P2P sector with the changes in the financial industry, the Nigerian regulators have hiked the interest rates for these products. Furthermore, Adesina admitted that it would be absurd for the market speculators to compare the P2P rates with the transaction fees charged by the crypto exchanges.

He envisioned that crypto exchanges must be operational for the regulators to levy interest rates on digital assets. Adesina argued that the regulators estimate the interest rates based on the daily crypto activities.

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Ethereum Could Beat Bitcoin in 2024, Analyst Says

Bitcoin has been the leading crypto asset by market capitalization since the inception of crypto. It is also currently the largest by market cap, and price per unit, which is much larger than Ethereum, the second largest.

However, an analyst, André Dragosch expects Ethereum to outperform Bitcoin in the year 2024. He stated that this performance will be driven by Ethereum’s technological advancements and Ethereum’s position as a leading smart contract platform.

“Ether underperformed bitcoin over the past 12 months, however, ether could outperform bitcoin over the coming 12 months,” Dragosch told The Block. 

Ethereum is the leader in smart contract development indeed. Despite challenges such as its lack of scalability which has resulted in high transaction fees, the platform still manages to lead in this regard because of its technological structure.

Dragosch who is also the head researcher at ETC Group is optimistic that such technology as Ethereum has and its viability in the smart contract space makes it a formidable force in the coming year.

He also listed some factors which he believes will contribute to the price gains of Ethereum in 2024. These include Ethereum’s deflationary mechanism and staking yields.

Drivers of Price Gains

In a previous report, Dragosch said that Ethereum’s deflationary mechanism could be a major driver of price gain. This works with the Ethereum burn mechanism introduced with Ethereum improvement proposal EIP-1559 in August 2021.

It is a strategy to reduce the amount of ETH in circulation by regularly burning some of the tokens. This is an effective way to induce scarcity of the token amidst increasing demand which is likely to cause an increase in price.

He added that this reduction in circulating supply combined with the attraction of ETH staking yields, could push Ethereum ahead of Bitcoin.

“Ether’s net supply issuance amounts to minus 1.1% per annum, as approximately 1.84% per annum are currently being burnt. Traditional investors can think of the staking yield as some kind of equity dividend, while the burn rate can be considered as an equity buyback yield,” he said.

Dragosch further maintained that Ethereum has been ahead of Bitcoin consistently since its creation in 2015, except in 2023, something that the asset will correct in 2024 and take back its leading place. 

This process known as mean reversion has also been confirmed by COinbase’s Crypto Market Outlook report which states that “We think ether’s relative discount could be the precursor to some mean reversion in 2024.”

JP Morgan Confirms

Dragosch isn’t the only one who thinks Ethereum may be getting set to beat Bitcoin in the coming year. JP Morgan analysts earlier this month predicted that Ethereum could do better than Bitcoin next year. Their reason however was different.

“We believe that next year Ethereum will re-assert itself and recapture market share within the crypto ecosystem,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note.

“The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024. We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform.”

The analysts also emphasized that the excessive optimism around Bitcoin could work against it, adding that top events like the halving were already priced in, leaving no more room for optimism on the asset.

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KyberSwap Cuts Off 50% of its Workforce to Sustain Operation

In a recent report, KyberSwap revealed plans to downsize following the multi-million dollar exploit that plunged the company into financial woes. The report demonstrated that the Singapore-based decentralized finance protocol will reduce 50% of the workforce to remain afloat.

 A statement from KyberSwap chief executive Victor Tran demonstrated that the expected layoffs were among the difficult decisions the company has made.

 The executive described the headcount reduction as a heart-wrenching event since the KyberSwap core team was affected by the layoff.

KyberSwap Announce 50% Headcount Reduction

In support of the departing team, the KyberSwap team created a voluntary database that allows the affected employees to seek for employment in other Web3-oriented platforms.

The CEO confessed that the company plans to halt some of the business operations besides the layoffs. He regretted that the slow rate of capital expenditure forced the KyberSwap team to halt the liquidity protocol and ongoing KyberAI initiatives.

Despite the suspension of the KyberSwap projects, the executive confessed that the company would focus on running its core businesses, including the Limit Order functions and the Aggregator protocol.

The CEO confirmed that the KyberSwap team would proceed with the development of the Zap API, which seeks to support the Dapps and wallets. Tran anticipates that Zap API will go live soon to provide users with a convenient platform to access DeFi liquidity protocols. 

Impact of KyberSwap $49M Exploit

With the ongoing development, the KyberSwap plans to compensate the customers affected by the $49 million exploit. The KyberSwap team has created the Treasury Grant Program to facilitate the reimbursement of funds to the affected customers. 

Also, the DeFi platform confirmed that the expected compensation plan will kick off on February 1, 2024. The KyberSwap team recently outlined the procedure for the repayment of funds. 

In the report, the KyberSwap team encouraged the affected customers to register for the reimbursement plan. The registration process will run from January 11 to January 23 next year. 

After the attack, the KyberSwap team has been holding intense discussions concerning the reimbursement plans. At the meeting, the DeFi protocol developed a reference value of $49 million to support the reimbursement of funds to the affected customers. The report demonstrated that the user will receive 60% of the value.

Besides the proposed reimbursement plan, the KyberSwap team has in contact with the attackers. However the effort to return the stolen funds proved futile after the attackers rejected the bounty deal. 

Rise of Crypto Crimes

The report demonstrated that the attackers demanded complete control of the KyberSwap assets, including the KyberDAO and governance tools. In the previous information, the hackers offered a deal to purchase KyberSwap at a fair value.

In retaliation to the request, the KyberSwap team assumed that the purchase offer provided by the attackers was a trick and rejected the offer.

A review of November 22 demonstrated that the hackers used an “infinite money glitch” to exploit the KyberSwap protocol. The probing team noted that the hackers leveraged their expertise to exploit KyberSwap’s smart contract where the company stores customers funds.

Reportedly the KyberSwap attack was among the most sophisticated exploits in the DeFi sector. According to the DefiLlama report, the hackers heisted approximately $290 million from the DeFi platform in November. The DefiLlama team noted that in 2023, around $1.2 billion was lost in hacking activities.

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Stablecoins Could Link Traditional Finance and Crypto, HKMA Chief Says

Head of the Hong Kong Monetary Authority (HKMA) Eddie Yue says stablecoins could bridge the gap between traditional finance and crypto. 

He made the statement following the joint release of a consultation paper today by HKMA, the Financial Services and the Treasury Bureau. The three agencies released the paper with the hope of gaining more powers to regulate the issuers of “fiat-referenced stablecoins.”

Yue said that  the cryptocurrency market is still “far from maturity” and will likely continue to evolve. 

“With that, stablecoins could become the interface between traditional finance and the virtual asset market,” Yue said in a statement today. “In a scenario where stablecoins become one of the preferred payment options by the general public, we should reasonably expect further integration between the digital payment ecosystem and the real economy, and whether the stablecoin is indeed ‘stable’ will then become ever more important.”

Stablecoins are cryptocurrencies that are more stable in their value than conventional cryptocurrencies which are highly volatile. They are relatively stable because they derive their value from something more stable, like fiat currencies such as the USD, precious stones like gold, or commodities.

The Hong Kong government seems to have realized the potential of cryptocurrencies and are considering using stablecoins to bridge the gap rather than throw out the entire innovation of crypto.

“The clear growth potential of virtual assets as an innovative technology has mostly been overshadowed by their price volatility, notably its rapid growth during the Covid-19 pandemic and subsequent collapse after a series of market events since early 2022, which hampered market confidence,” Yue said.

Is a CBDC Needed?

Yue also stated that the Hong Kong government is considering the introduction of a central bank digital currency (CBDC) as an option for transactions in the city. There are reservations on this though.

“In Hong Kong, there are multiple mediums of exchange that have been used extensively over time and proven effective, such as traditional bank deposits and stored value facilities,” Yue continued. “The HKMA and the banking industry have also been actively exploring the potential use cases of central bank digital currency and tokenized deposits.” 

“An obvious question would be, with all these options, is there really a need for yet another alternative? We believe the answer lies in the hands of the end users who would ultimately decide which options work best for them,” he added.

Hong Kong’s approach towards CBDCs is entirely different from mainland China where the use of the CBDC under development is mainly mandatory. When fully developed, the government may use it to replace the use of cash for close monitoring and surveillance, something people in the west have kicked against.

Hong Kong’s Progress with Crypto

Although Yue called for licensing of companies interested in issuing stablecoins, the government definitely is interested in harnessing stablecoins to facilitate payments. This is another pro crypto development coming out of Hong Kong recently.

Just this week, the government said it was open to applications for spot Bitcoin ETFs. already, there are a number of futures Bitcoin ETFs in operation, and now it’s time for spot ETFs. 

The government is confident that it will have much to work with from the U.S if the securities and exchange commission approves the spot ETF applications before it.

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Japan Regulators Set to Eliminate Tax on Unrealized Crypto Gains

As Japan seeks to become a go-to destination for crypto firms, the regulators have agreed to loosen the regulation for digital assets. In a recent Cabinet meeting, policymakers agreed to remove the tax imposed on unrealized gains from crypto investments. 

An unrealized gain refers to the increase or decrease in asset value before the immediate sale. The unrealized gains are typically reported on the financial report but have minimal impact on taxes unless the assets are auctioned.  

Japan to Implement New Tax Regime Next Year

The Japanese regulators noted that the unrealized gains create a huge difference between book value and market value on crypto investments.

The decision to scrap tax from unrealized crypto gains will take effect in April 2024. This implies that the new provision will require the regulators to amend the existing taxation approach for digital assets.

 According to the report, the new tax regime mandated companies holding a measurable amount of digital assets to report the profit generated from a crypto investment. 

The policymakers have urged the retail and business entities engaging in crypto transactions to comply with the new tax rules. The report demonstrated that the new tax regime will ensure fair treatment of third parties engaging in crypto activities. 

Initially, the existing taxation approach excluded the retail investors from tax on mark-to-market value. The old taxation approach scared away potential investors from engaging in crypto activities, hindering progress in Web3 development.

A review of the Japan report demonstrated that over 548 firms breached the crypto tax rules. The Japanese regulators noted that the noncompliance with the tax rules rose by 35% in 2022.

Industry Leaders Calls for Friendly Crypto Regulation In Japan

A statement from the chairman of Japan Crypto Asset Business Association (JCBA), Gaku Saito, revealed that the unfavourable taxation regime forced fast-paced Web3 firms to exit the Japanese market.

 The executive lamented that the existing national tax obliged the companies to pay for their unrealized gains from crypto activities. With the changes in Japan’s financial landscape, most firms are forced to sell their assets or suspend business operations to comply with the tax requirements.

 Mr Saito opposed the existing tax that required the investors to pay taxes even before making a sale. Following a series of meetings between the industry leaders and the Japanese authority, the regulators agreed to revise the tax rules and create a friendly business environment.

 The successful meeting obliged the policymaker to formulate a draft bill for the 2024 tax. In August, the Japanese financial services agency urged the government to consider changing the tax code for digital assets.

In the 16-page report, the FSA underlined the need for the regulators to eliminate the unrealized profits from crypto investment. Shortly after the FSA submitted the proposal, the Ministry of Economy, Trade and Industry officials supported the bill.

The FSA report was also supported by other industry leaders who advocated for tax reforms to create a friendly environment that supports the growth of Web3 and blockchain technologies. 

Future of Web3 Technologies in Japan

Elsewhere, the prime minister of Japan, Fumio Kishida, confirmed that the tax reforms will allow more Web3-oriented firms to expand to the region. Mr Kishida recognized the remarkable efforts made by JCBA and the Japan Blockchain Association (JBA) in fostering the development of the crypto sector.

The executive admitted that crypto sector plays critical role in promoting economic development in Japan. Mr Kishida recognized the intense efforts made by the politicians to create policies that support the integration of emerging technologies into traditional business activities.

Besides the efforts made by the regulators, vital industrial players led by the prominent stablecoin issuer Circle have redirected their focus to promote the adoption of Web3 technologies in Japan. A few weeks ago, Circle teamed up with SBI Holdings to push the adoption of Web3 technologies in Japan.

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Hong Kong Could be Next Bitcoin ETF Hub, Analysts Say

As the anticipation for a Bitcoin ETF approval in the U.S continues to grow, experts are eyeing Hong Kong as the next big destination for Bitcoin ETFs.

This consideration is coming because of Hong Kong’s crypto-friendly stance, which started in November 2022 following the release of a crypto rule book. Analysts anticipate that the city may therefore become one of the leaders in Bitcoin ETFs after the U.S approves its own ETFs.

Speaking with crypto nes outlet The Block, chairman of web3 investor Animoca Brands Yat Siu the encouraging stance of Hong Kong’s Securities and Futures Commission toward digital assets sets a decent stage for potential spot bitcoin ETFs.

“If you look at what the SFC had said about I think a month ago, it says that it was open to widen access to digital assets,” Siu said. “And frankly, Bitcoin spot ETF is, I would say, relatively uncontroversial at the end of the day.”

“I would imagine that [Hong Kong] would follow, especially because the U.S. has already done a lot of the work,” Siu added, referring to the several filings for Bitcoin spot ETFs in the U.S, adding that Hong Kong will have a lot to make reference to.

Why Hong Kong

Hong Kong started opening its doors to crypto startups in 2022 ending when it rolled out rules for establishing regulated crypto companies. As a result, many crypto startups have rushed to establish in the city.

This is not the case with mainland China where crypto trading remains banned. Currently, the leading hindrance to the growth of the crypto industry remains lack of regulatory clarity. 

Hong Kong officially started licensing crypto startups in June, allowing licensed exchanges to offer retail trading services. Also, Hong Kong’s SFC is already considering approvals for Bitcoin ETFs as it is open to “proposals using innovative technology that boosts efficiency and customer experience,” the agency’s chief executive officer Julia Leung said in November. 

Already, there are several futures-based Bitcoin ETFS including Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF. This suggests that the SFC could be getting ready to approve spot ETFs as well. 

Head of Sales of APAC at web3 infrastructure firm Blockdaemon, Glenn Woo said in an interview with The Block that the SFC clearly shows interest in a spot Bitcoin ETF.

“There is appetite there,” said Woo. “I’m not sure whether it’s going to launch next year or the year after, but the appetite will grow after the U.S. approves their ETF first,” he added.

Asia Taking the Lead

While there has been a lot going on in the west with many companies in the U.S adopting crypto or increasing their positions in the assets, the interest may be shifting from the west to Asia going forward.

“The last cycle had significant participation driven from the West, whether it was Saylor stuffing BTC into Microstrategy’s balance sheet or PayPal slinging shitcoins to millions of retail,” Jack Tan, co-founder of WOO exchange, said. “However, we believe the next cycle will be driven from the East, with a resurgence of retail participation led by major geographies like [South] Korea, Hong Kong and Japan.”

Indeed, Hong Kong has already set the precedence and more Asian jurisdictions are bound to follow as they observe that the industry is booming in the city.

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President Erdogan Appoints Crypto Professor to Central Bank Committee

The president of Turkey, Recep Tayyip Erdoğan, has appointed Professor Fatman Ozkul to the central bank board. Professor Ozkul’s appointment demonstrated Turkey’s commitment to tap into the benefits of crypto and blockchain technologies.

 In a December 22 report, President Erdogan confirmed Professor Ozkul’s appointment to the central bank committee. Based on her vast experience in financial and crypto matters, the president believed that Ozkul was a suitable candidate to support the Turkish authorities in implementing monetary policies.

Turkey Appoints New Member for Central Bank Committee

Her appointment to the board came days after the central bank intensified efforts to combat high inflation in Turkey. A recent report demostrated that most households struggled to meet the cost of living.

 The rise in poverty level in Turkey forced the regulators to increase the interest rate by 2.5% to hedge inflation. The Turkish regulators have embraced the cutting rate approach to curb inflation.

 Since the reelection of President Erdogan, he has focused on appointing new industry leaders to support Turkey to attain its economic objectives. A few months ago, the President of Turkey dismissed various officials working for the central bank. 

Regulators in Turkey Seek to Implement New Interest Rates to Curb Inflation

The layoffs prompted the president and his administration to nominate new leaders to support Mr. Erdogan in implementing the rate-slashing policies for inflation. With the changes in Turkey’s leadership, Professor Ozkul joins the newly elected economic team who will oversee the implementation of the monetary policies. 

According to the report, President Erdogan mandated Ozkul to support the central bank in levying interest rates that curb inflation. A review of Ozkul’s career profile demonstrated that the professor has vast experience in crypto and blockchain technologies.

Her career has maintained an upwards growth trajectory since she joined Marmara University in Istanbul in 2012 as a lecturer. Besides her academic qualifications in finance, accounts and auditing, Ozkul has bagged various awards in her career. 

Last year, she co-authored a book on crypto asset accounting fundamentals. Ozkul also has mastered the concept of blockchain and crypto technologies and dedicated time to conducting extensive research on digital assets.

High Adoption of Crypto in Turkey

 The appointment of Ozkul came when the Turkish regulators focused on developing the digital lira. In a recent interview, the Central Bank of Turkey confirmed the completion of the pilot test for the digital lira. 

The report indicates that the country’s apex bank anticipates proceeding with the next pilot phase, which will include the integration of decentralized ledger technologies into payment systems. With the ongoing development of the digital lira, Turkey has witnessed an increase in crypto adoption.

 A recent report from Chainalysis demonstrated that Turkey ranks fourth in crypto transaction volume. The Chainalysis team noted that between July 2022 and June this year, the crypto activities in Turkey generated $170 billion. 

The surge in crypto activities in Turkey forced the regulators to step up and regulate the digital sector. Last year, the Financial Action Task Force (FATF) added Turkey to the grey list due to a deficiency in regulating crypto assets.  

Occasionally, countries collaborating with the FATF to address financial terrorism and money laundering are placed under heightened regulatory scrutiny. The FATF includes these countries on the grey list to ease the identification of potential regulatory gaps. 

Following Turkey’s listing on the grey list, the regulators plan to enforce new licensing requirements for crypto assets to address financial crimes such as system misuse.

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Wemade Collaborates with Whampoa Digital to Launch a $100 Million Web3 Fund

On Friday, the leading game developer in South Korea, Wemade, teamed up with Whampoa Digital to launch a $100 million Web3 fund. In the December 22 report, the two companies stated that the newly launched Web3 Fund will focus on the development of blockchain-oriented games.

The report stated that with the collaboration with Whampoa, the Wemade team anticipates expanding its market presence in the Middle East. Lately, the crypto and fintech companies have been flocking to the Middle East to tap the endless opportunities in the region. 

Wemade Seeks to Bring Blockchain Technologies to Gaming Sector

The rise of the crypto-savvy population in the Arab countries inspires the Wemade to expand its footprint in the region. According to the announcement, the two companies plan to leverage their vast expertise to push for the mainstream adoption of blockchain technology. 

The collaboration with Whampoa coincides with Wemade’s latest development to be part of the Dubai DIFC Innovation Hub. Earlier, the gaming studio revealed plans to launch Wemix Play Center to boost blockchain game experiences. 

 According to the announcement, the Wemix Play Center is a unique platform that allows players to select various blockchain games. The team behind the Wemix Play platform is working on developing the Wemade nonfungible token (NFT) marketplace.

The report stated that beneficiaries of the Web3 Fund will receive grants and funds to support the development of blockchain games. 

Also, the companies that will receive the expected funding will be allowed to establish offices at the Wemix Play Center. The primary objective of launching the Web3 Fund is to connect gaming companies at their early growth stage with mentors.

Benefits of Wemade Web3 Fund

Beyond this, the Wemade team established cross-collaboration with fast-paced gaming companies. An announcement conveyed by Aureole Foong, the senior partner at Whampoa Group, revealed that the collaboration with Wemade will allow the two companies to explore new opportunities in the digital sector. 

Foong anticipates the two companies will drive innovation to the Middle East region. In his address, the executive recognized that the Middle East region is ranked among the crypto-friendly regions with the highest adoption of Web3.

In response to Foong’s remarks, the chief executive of Wemade, Henry Chang, acknowledges that the partnership with Whampoa Digital will support knowledge sharing in blockchain-related matters. 

The CEO believes the partnership will support the Wemade team in acquiring new skill sets and experiences. The executive noted that with the ever-evolving nature of the crypto sector, the Wemade team was working on developing PC and mobile games to gain a considerable market share.

Rise of Blockchain Games in South Korea

 After intensive efforts to match the Wemade products to the market demands, its free-to-play MMORPG game gained global recognition among the leading multiplayer games.

In an earlier report, the Wemade team stated that with the integration of emerging technologies into the games, the gaming companies in South Korea are facing fierce competition. 

The Wemade team confirmed that its top rival, NHN, has migrated to the Sui blockchain network to develop digital board games. Besides the expected upgrades on NHN, other game developers in South Korea have focused on developing blockchain games. 

A statement from a Wemade spokesperson confirmed that the game studio was developing additional blockchain games that would be launched outside of Korea. 

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USA-Recovery Review – Is USA-Recovery.com Scam or a Legit Funds Recovery Platform?

USA-Recovery Review

The growing number of online scams is indeed an issue for a lot of people. It can have a significant impact on the overall financial and physical well-being of an individual. While there is a lot of information that you can get about saving yourself from scams, there is quite little to tell you about the next steps. It is highly important that you find the right funds recovery service provider to help you deal with this situation.

However, finding the right one might be a difficult task with so many options available within in market. Luckily, the USA-Recovery services provider is here to help you out with it. Learn more about what this funds recovery services provider has to offer.

A Process that is Efficient

A lot of online funds recovery service providers out there have a long and hectic process. This might make it difficult for you to understand how you will get your money back. You find yourself going back in circles and not getting anything out of the process. Luckily, that is something you don’t have to worry about with the USA-Recovery.com funds recovery services provider. It understands how the victim of an online scam is already dealing with a lot of things. Therefore, they tend to keep the process quite simple and straightforward for the victims.

This will allow them to ensure that they don’t have to go through a lot of things in order to get their money back. First, the USA-Recovery will get in touch with you to understand the scam. They will ask you the chronological order of the things happening. As a result, it will help them to find out about the critical information regarding the scammers. Next, they will meticulously examine every detail of the case and use it to track down the scammers. Rest assured, they will try every trick in the book to track the scammers.

Years of Experience in Recovering Funds

A lot of the companies in this particular arena show themselves as experts when it comes to recovering funds. However, they lack the fundamental knowledge necessary to recover your funds. They don’t know about the legal channels that they need to take and other important things for recovering funds. But that is something you don’t have to worry about with the USA-Recovery.com funds recovery service provider as they have years of experience in helping victims recover funds from scammers.

They have an understanding of the legal actions that they need to take to track down the scammers. Not only that, but they also try new things that are within the legal boundary to track down the scammers. All in all, you can have the peace of mind that an experienced team is looking after your case. They’re not just any other team of amateurs who will claim to get back your money but have no experience doing so or have no knowledge about it.

Helping You with a Variety of Scams

The USA-Recovery service provider understands the value of time. The more time passes, the more difficult it becomes to catch the scammers. Therefore, it is vital to start the recovery process as soon as possible. What makes this online funds recovery service provider different from other players in the market is that it can track down each type of scam. Online scammers and cybercriminals have come up with new ways to trick online consumers.

So, knowing about the type of scam is vital as it ensures that the funds recovery service provider can take relevant action. As mentioned before, the team of professionals behind this online brokerage firm has years of experience. And that is why they can help you with different types of scams. They will provide you with complete guidance regarding what steps that you need to take.

Highest Success Rate in the Market

Last but not least, I would say that the USA-Recovery fund recovery service provider has one of the best success rates in the industry. This helps you gain confidence in the services of this online funds service provider and gives you the peace of mind that you are in the right spot.

Not only that, but it also ensures that you have a good chance of your money back. These success ratios show that the service provider knows what they are doing. It acts as a testimonial to their amazing services, allowing scam victims to trust this service provider.

Final Words

The USA-Recovery.com review shows how this service provider provides you with everything that you need to ensure that you have your funds recovered. It gives you a clear idea about how the services of this service provider can help you get your funds recovered. All in all, I would say that you should consider it.

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Bloomberg Analyst Outlines Need for Authorized Participant for Bitcoin ETF

As the crypto community awaits the resurfacing of the bulls in 2024, prominent analysts are still mulling over the possibility of approving the spot Bitcoin exchange-traded funds (ETF).

 In a December 23 X update, Bloomberg Intelligence Eric Balchunas regretted that the process for the approval of the Bitcoin ETF might take longer than expected.

Bitcoin ETF Hopefuls Awaits for SEC Approval

 The analyst projects that US Securities and Exchange Commission (SEC) feedback concerning the spot Bitcoin ETF might require the asset managers to state the “Authorized Participant” feature on their application. 

The official argued that the SEC would mandate the asset managers to review their applications by completing the authorized participant requirement. In his tweet, Balchunas explained that the last stage for approving the Bitcoin ETF might be more complicated. 

The analyst argued that the SEC would require the spot Bitcoin ETF applicants to seal the authorized participant agreement and meet the cash-created requirements before proceeding to the approval stages.

 An authorized participant refers to an individual or entity legally allowed to create shares for the ETF. Balchuna anticipates that the SEC will thoroughly determine the eligible application for the creation and redemption of Bitcoin ETF shares. 

Occasionally, the regulators task fast-paced financial institutions and banks in offering ETF shares. The analyst anticipates that the regulators will strive to increase the number of authorized participants for the ETF to increase the liquidity and cap deficiency in shares in the market.

 However, based on the risk associated with a high supply of shares in the market, Balchuna envisages that the regulators might be wary of appointing authorized participants. 

He noted that increasing the number of authorized participants will maintain the price of ETF shares in line with Bitcoin. Even though the SEC has been reluctant to approve the spot Bitcoin ETF, Balchuna anticipates that before the end of January, the market regulators might either approve or reject the pending applications. 

Role of Authorized Participant

In an earlier report, the SEC regretted that the approval of the spot Bitcoin ETF might expose customers to risks such as market manipulation and fraud. Despite the risk linked to the Bitcoin ETF, the analyst showcased a table containing asset managers seeking to introduce this financial product to its product offering.

 He noted that some applicants anticipate creating shares through their local currency while other will explore in-kind share option. Based on his vast experience in financial matters, the analyst described the in-kind share-creation approach as a starter for the SEC. 

He argued that the SEC might be uncomfortable with the in-kind method, allowing brokers to use Bitcoin in share creation. The executive stated that the SEC might restrict the unregistered subsidiaries from interacting with Bitcoin in share creation or redemption due to compliance issues. 

Compared to the cash-shared creation method, Balchuna argued that the SEC might discontinue the in-kind option to restrict the accessibility of Bitcoin to only the authorized issuer. The Balchuna report came weeks after the profound asset managers engaged in an intense discussion with the SEC concerning the spot Bitcoin ETF. 

Asset Managers Meets with SEC to Discuss on Bitcoin ETF

The officials from Grayscale, BlackRock and Valkyrie challenged the SEC to expedite the approval of the Bitcoin ETF. From the series of closed-door meetings between the SEC and the asset managers, the community remains optimistic that the regulators will ultimately approve the Bitcoin ETF.

 In the meantime dozen of asset managers are seeking to introduce the spot Bitcoin ETF services. Based on the requirement for offering the spot Bitcoin ETF, the regulators tasked the asset managers to revise their S-1 application accordingly.

A few ago, BlackRock resubmitted its S-1 application to the SEC. After multiple amendments on the S-1 application, the BlackRock team agreed to create the share with cash option and changed the ETF ticker symbol from IBTC to IBIT. 

The BlackRock team anticipates that after the SEC greenlights the pending Bitcoin ETF, it will trade on Nasdaq.

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Menlo Ventures Leading Anthropic in a $750 Million Funding Round

In an official report, the team behind Claude AI Anthropic revealed plans to launch a $750 million funding round led by Menlo Ventures. The artificial intelligence development company anticipates that the multi-million investment would propel the firm’s value to reach $18 billion. 

News concerning upcoming fundraising was brought to light by The Information media outlet after being hinted at by a source privy to the matter. 

Anthropic Raises $750M in a Funding Round

According to the report, the Anthropic firm’s value amounted to around $18.4 billion before the expected funding round. The source familiar with the situation silenced the swirling rumors that Anthropic valuation ranged between $20 to $30 million.

Upon contacting the source to obtain more information concerning the expected funding round, the source declined to provide further details on the firms and investors willing to support Anthropic in the upcoming fundraising. 

 In an earlier report, Menlo Ventures revealed plans to support the Anthropic team in realizing its goals. A statement from Menlo’s top-level management revealed that Anthropic has remained at the forefront in developing distinctive generative AI tools.

The executive confessed that the Anthropic was based on a strong principle that supports safety research for AI infrastructures. The Menlo officials outlined that the Anthropic seeks to attain safety research and build reliable AI tools.

With the exciting development in the AI sector, the Anthropic team has emerged as OpenAI’s top rival after it launched the Claude chatbot version 2.

Future of AI Technology

Interestingly, the launching of Claude aimed at overperforming OpenAI ChatGPT, which has gained popularity due to its ability to generate human-like responses. The attempt to gain a considerable market share in the AI field has challenged the Anthropic team to invest in expanding its generative AI tools. 

A few months ago, the Anthropic team received $4 billion from Amazon and $2 billion from Google to support its ongoing AI projects. As Google and Amazon support Anthropic, Microsoft has invested in supporting the development of OpenAI projects.

Commenting on the multiple investments in AI, the co-founder of Collective Intelligence, Divya Siddarth, confessed that artificial intelligence technology will have a transformative impact on the world. 

Risks Associated with AI Development

The executive argued that despite the ongoing AI craze, only a few players have the opportunity to decide on the AI project. In July, the Anthropic group teamed up with Google, Microsoft, and OpenAI to develop the Frontier AI models that support the responsible use of AI. 

The launching of the Frontier AI model came weeks after the industrial heavyweights in the AI field held a closed-door meeting with the Biden Administration. The agenda of the discussion revolved around the responsible use of AI technologies. 

Since then, the Anthropic team has been an active participant in AI-related projects and has supported the government in developing safety measures and policies on AI development. The active participation of Anthropic in AI-oriented projects enabled the San Francisco-based AI development company to enter into a strategic partnership with Collective Intelligence.

 The partnership between the two aimed at democratizing AI development. Despite the intensive efforts to bring innovation to the AI sector, the development of responsible artificial intelligence tools has been in the limelight for the past few months.

The surge in AI activities attracted the attention of global regulators due to the risk associated with the development of artificial intelligence technologies.

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Court Freezes $1.4 Billion Linked to 3AC Founders

In a recent report, the American-based advisory firm Teneo confirmed that assets totaling around $1.4 billion had been frozen linked to the now-defunct hedge fund Three Arrow Capital (3AC). The decisive action to freeze the multi-million dollar capital aimed at barring the co-founders of 3AC, Su Zhu and Kyle Davies, from accessing the funds amid the ongoing legal charges against the two. 

The court report illustrated that the decision to freeze billions of assets aimed at preventing the 3AC co-founders and Kelly Chen, Kyle’s wife, from engaging in any business activity that might compromise the ongoing legal action.

Three Arrow Liquidators Seeks to Recover Lost Assets

A statement from the Teneo team stated that the decision to freeze the funds stemmed from a request from the 3AC liquidators. In the report, the Teneo team claimed that the 3AC top-level officials led by Kyle and Zhu were accountable for the collapse of the 3AC.

The advisory team noted that the disgraced crypto investor affected by the fallout of 3AC lost a substantial amount of funds that exceeded the amount frozen. Since last year, the Teneo team has engaged in an intensive legal battle to repay the creditors’ assets worth approximately $3.5 billion. 

The impressive move by Teneo supported the liquidation of the embattled hedge fund as instructed by the British Virgin Islands court in June 2022. Despite the court ruling, the Teneo team has faced multiple challenges in the attempt to recover the customer’s funds.

A recent report from the advisory team demonstrated that the 3AC founders have been uncooperative during ongoing legal charges.  

3AC Liquidators to Focus on Actualizing Restructuring Plan

In an earlier report, the lawyers from Teneo requested the court to instruct Zhu and Kyle to cooperate with the ongoing investigation. According to the report, the Teneo team regretted that the 3AC top executive failed to disclose critical information.

 The non-compliance of the two crypto fugitives attracted the attention of global regulatory agencies. Based on the case’s complexity, Kyle issued a defensive statement concerning his unwillingness to cooperate with the ongoing investigation. 

The report revealed that after Kyle relocated to Singapore, he renounced his American citizenship. Citing the requirements for the renunciation of the US citizenship, Kyle claimed it was unnecessary to be questioned by the US authorities. 

Despite the court ruling, a source familiar with the situation revealed that the 3AC co-founders continued to gain financial benefits from the bankrupt hedge fund. The discovery of Zhu and Kyle’s noncompliance obliged the Teneo legal team to hold intense discussions with the 3AC creditors. 

Overview of 3AC Saga

After a series of meetings with the disgraced crypto investors, the Teneo recovered company assets, including $35.6 million in cash, a yacht worth $3 million, and measurable amounts of nonfungible tokens (NFTs). Following an intensive activity to recover the company assets, the Teneo team regretted that the recovered amount could not repay the 3AC creditors.

 The lawyers noted that the fallen hedge fund exposed the 3AC creditor to loss of $3.5 billion. The unbalanced financial statement at 3AC emanated from overexposure to Terra stablecoins UST, which entered an inflationary death spiral last year. 

The collapse of the Terra ecosystem exposed 3AC to bankruptcy. In an earlier interview with Bloomberg, the 3AC co-founders admitted that they had invested heavily in Terra. At that time, the co-founder of Terraform Labs, Do Kwon, hyped the UST, assuring the investors that his project would generate substantial returns. 

Months after the Bloomberg interview, the co-founder of 3AC went into hiding after receiving multiple death threats. After a long chase, Zhu was arrested at an airport in Singapore, attempting to flee the country.

 A review of the court report revealed that Zhu received four months of imprisonment and might be released before the end of this year after he potrayed changes in behavior. Besides the 3AC, the crashing of the Terra ecosystem plunged key market players such as BlockFi, Voyagers, and Celsius into financial woes. 

Editorial credit: rafapress / Shutterstock.com

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Bitcoin Lightning Company Amboss Launches “Ghost Addresses” Boost User Security

Amboss Technologies, a Bitcoin Lightning Network payment solutions provider has launched Ghost Addresses that allow users to directly receive payment.

This takes the control of crypto payments from the dominant custodial wallets on the Lightning network and gives control to individual users. 

Lightning network was invented as a Layer 2 solution to help Bitcoin scale and process more transactions faster. The Lightning network settles transactions off the Bitcoin blockchain, making them near instant and then eventually adds the transactions to the blockchain.

Unlike on the Bitcoin blockchain where payment is done using conventional alphanumeric wallet addresses, the Lightning network uses special addresses which are formatted like emails, e.g “username@walletofsatoshi.com.”

These simplify the process of receiving payments by providing a static and reusable address, eliminating the need for users to create individual Lightning invoices for each transaction.

While receiving payment into self-custody wallets has been possible since, the process of setting up and managing one is so complicated that most Lightning network users would rather just use the services of custodial wallet providers. 

“Contrary to the trustless spirit of Bitcoin, many applications using Lightning Network for payments rely heavily on centralized, custodial Lightning wallet providers,” Amboss CEO and co-founder Jesse Shrader said in a statement. 

“This is why we’re very excited to announce the release of Ghost Addresses, which solve this problem by enabling anyone to receive payments directly to their self-custodied wallet using what looks like an email address, bypassing these centralized third parties.”

Ghost Addresses change this, making it possible for anyone to easily receive payments directly.

How it Works

Ghost Addresses allow users to receive funds directly to their own self-custodial Lightning node via a personalized Ghost Address (username@ghst.to), without running a separate Lightning Address server. 

This is made possible using Phantom Payments, which don’t require any additional node permissions. Users of the new addresses will enjoy both the  convenience of existing Lightning Address formats and more advanced features of the Lightning Network to enhance security and privacy without requiring additional infrastructure.

The addresses are also designed to offer a more private solution than custodial Lightning Addresses, which reveal payment sizes and subsequent transactions. They are compatible with any Lightning Network implementation through integration with its API. 

While randomly generated Ghost Addresses are free via an Amboss account, customized addresses require a subscription, the firm said.

Ghost Addresses are Better 

Commenting on the alternatives to Ghost Addresses, Shrader said users can create their own Lightning Address server and give it invoice permissions (macaroons), but the cost of doing so leaves only few users doing it.

“[Node infrastructure provider] Voltage offers a third-party Lightning Address solution for their users, but this uses an invoice macaroon from the user” he said.a 

“[Self-custodial wallet] Zeus also offers a HODL invoice solution, which makes payments stay in a pending state for a long time and has been the cause of expensive force closes [of payment channels] in the network,” he added.

“Custodial wallets are great until they’re not. At no point is someone else holding your funds with a Ghost Address, removing the loss of funds risk,” he said.

With this new innovation, more people may be encouraged to participate in the use of Lightning Network. However, Sharder still maintains that not everyone would like to run their own Lightning node, which limits the market for the technology.

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Sen. Elizabeth Warren Faces Backlash Over Call for Stricter Measures Against Crypto

Anti crypto senator Elizabeth Warren has come under attack for asking that stricter measures be employed in dealing with crypto. 

Top crypto players such as Coinbase CEO Brian Armstrong and others have reacted to her recent move to bring more oversight to the crypto industry.

Warren sent a series of letters to crypto organizations earlier this week, alleging a “revolving door” strategy employed by crypto firms who hire former defense and law enforcement officials to give them legitimacy.

“This abuse of the revolving door is appalling, revealing that the crypto industry is spending millions to give itself a veneer of legitimacy while fighting tooth and nail to stonewall common sense rules designed to restrict the use of crypto for terror financing – rules that could cut into crypto company profits,” Warren said in a letter to Coin Center on Monday. 

The senior senator also sent letters to the Blockchain Association and Coinbase, in protest on the same subject. Reacting to the letter, Coinbase CEO Brian Armstrong said Warren was “lobbying for big banks.”

“Being anti-crypto is a really bad political strategy going into 2024,” Armstrong wrote on Twitter.

“It is sad that @ewarren who started her career with good intentions has morphed into a disingenuous know-it-all who uses any chance she gets to make a headline,” Galaxy Digital CEO Michael Novogratz posted.

Warren is known for her vocal criticism of cryptocurrencies and her role in advocating for crypto oversight. She is one of those in support of the securities and exchange commission (SEC)’s enforcement approach to regulating the industry.

Voting Warren Out

Warren is a senior and influential senator from Massachusetts. As the elections are approaching and as her influence against crypto continues to grow, the crypto industry is considering voting her out as an option to thwart her plan.s

However, this may not work as according to crypto lawyer Scott Johnsson, trying to unseat Warren from Congress is “not worth the energy”, adding that the industry should “Instead, focus on vulnerable seats that have supported her crusade this past year.”

The idea was also supported by Castle Island Ventures co-founder Nic Carter who echoed the idea of going after Warren’s allies rather than her directly.

“If the crypto industry gets their act together in 2024 and helps swing a few close races, like eg. Brown in Ohio, senators will be a lot less brazen about wantonly attacking us going forward,” Carter wrote on Twitter.

Why Warren is Winning

Despite resistance from some pro crypto lawmakers like Tom Emmer, Warren’s war against crypto seems to be prevailing. According to Messari CEO Ryan Selkis, she is winning because she has powerful allies in government.

“Warren’s opposition to crypto is so effective because it’s mostly indirect. The White House and major financial regulators won’t even field phone calls from the industry because of her pressure, and they rebuffed all the meeting requests with the 40+ founders who visited the Capitol during Coinbase’s ‘Stand with Crypto’ this September,” Selkis wrote in his Crypto Theses for 2024.

Among her top allies listed my Selkis are Securities and Exchange Commission Chair Gary Gensler, Federal Deposit Insurance Corporation Chair Martin Gruenberg, Consumer Financial Protection Bureau director Rohit Chopra, deputy Treasury secretary Wally Adeyemo, Democratic congresswoman Maxine Waters, and National Economic Council deputy director Jon Doneneberg.

The post Sen. Elizabeth Warren Faces Backlash Over Call for Stricter Measures Against Crypto first appeared on CryptocyNews.com.

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