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Bitcoin ETFs, user experience will drive adoption — eToro CEO

Yoni Assia told Cointelegraph that products like Bitcoin ETFs align with institutions’ existing modes of operation, making it easier for them to enter the market.

While grassroots cryptocurrency adoption went stale after last year’s implosions in the industry, trading platform eToro’s chief executive believes that the appeal of exchange-traded funds (ETFs) for institutions and ease of investing through various platforms for non-professionals could further drive Bitcoin (BTC) adoption.

EToro CEO Yoni Assia told Cointelegraph at the recent Abu Dhabi Finance Week that institutions typically have rigid systems and prefer not to build new infrastructure for each asset class.

“[Bitcoin] ETFs could be a significant driver of adoption [because] institutions work in a very rigid way. […] They’re looking for the same infrastructure, and ETF, in many cases, is that infrastructure to enable institutional demand to those who don’t want to self-custody.”

Assia added that the availability of a Bitcoin ETF would likely bolster Bitcoin’s legitimacy in the eyes of institutional investors and, in turn, could support the asset’s price, as it represents a familiar and institutionalized form of investment.

Assia (left) with Cointelegraph Arabic reporter Hermi De Ramos. Source: Cointelegraph

Bitcoin surpassed $35,000 in October, a price not seen since May 2021, partly due to excitement around spot ETF approvals.

Related: Bitcoin ETF will drive 165% BTC price gain in 2024 — Standard Chartered

Meanwhile, according to Assia, the ease of investing in Bitcoin through user-friendly platforms and its integrations into diverse investment portfolios are crucial to onboarding more retail users into the market.

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Bitcoin for Christmas: MicroStrategy buys another $600M

The firm reported it held 174,530 Bitcoin as of Nov. 29 — worth roughly $6.6 billion at a price of $37,726.

Business intelligence firm MicroStrategy purchased 16,130 Bitcoin (BTC) in November, bringing its total holdings to more than $6 billion.

In a Nov. 30 announcement, MicroStrategy co-founder Michael Saylor said the company acquired the BTC for roughly $593.3 million — a price of $36,785 per Bitcoin. 29, MicroStrategy reported it held 174,530 BTC — worth roughly $6.6 billion at the time of publication — at a price of $37,726.

The business intelligence firm has consistently purchased large volumes of Bitcoin since announcing it would adopt the cryptocurrency as its treasury reserve asset in August 2020. Saylor’s last announcement was in September, reporting MicroStrategy bought 5,445 BTC for roughly $147 million.

Related: MicroStrategy’s Bitcoin stash back in profit with BTC price above $30K

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Spreading misinformation about Changpeng Zhao ‘was the norm’ for SBF, says Binance CSO

Binance chief strategy officer Patrick Hillmann claimed former FTX CEO Sam Bankman-Fried was “constantly” using his platform to disparage CZ without considering the FTX Token sale.

Former FTX CEO Sam Bankman-Fried used Twitter and other means to spread “fake rumors” about Binance CEO Changpeng “CZ” Zhao, according to a Binance executive.

In an April 21 Twitter thread, Patrick Hillmann — the chief strategy officer at Binance — said Bankman-Fried, also known as “SBF,” used his influence to label CZ as an “evil Chinese” through “fake rumors” to perpetuate his alleged scams at FTX. Prior to and following FTX filing for bankruptcy in November 2022, SBF and CZ’s public relationship was often antagonistic, though the two exchanges had financial ties.

“Sam denigrating CZ was the norm for us,” said Hillman. “Had nothing to do with deciding to sell the worthless FTT on the company’s books.”

In November, CZ announced plans for Binance to liquidate its position in FTX Token (FTT) prior to FTX’s bankruptcy, hinting that Binance would consider purchasing the competitor. When the deal fell apart and FTX filed for Chapter 11, the two industry heads traded barbs through social media, with CZ calling SBF a “fraudster” and the former FTX CEO suggesting that Zhao lied about the buyout discussions.

Related: New FTX documentary to spotlight SBF-CZ relationship

Zhao continues to lead Binance as CEO and regularly posts messages on social media amid changes to the regulatory environment for crypto firms. Bankman-Fried, in contrast, faces 13 federal charges, including those related to bribery and wire fraud, and has only limited internet access as part of his bail conditions.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

Polygon calls on EU lawmakers to address smart contracts in Data Act

The project claims that the bill, as currently written, could “substantially inhibit innovation and economic growth” in the EU.

Polygon Labs, the core company behind the development of Ethereum layer-2 scaling solution Polygon, has called on policymakers in the European Union to “clarify the scope and intent” of legislation targeting smart contracts.

In an open letter published to members of the European Parliament, the European Council and the European Commission on April 17, Polygon Labs proposed Article 30 under the Data Act be amended to apply to permissioned smart-contract-based-systems owned and operated by an “enterprise,” as opposed to permissionless under the current wording. The platform said hardware wallet developer Ledger had also signed up to request the legislation better reflect its intent.

“Polygon Labs has an interest in this matter because we seek to ensure the growth and responsible development of permissionless blockchain-based systems globally,” said the letter. “We respectfully request that you consider the proposed revisions to Art. 30 […] to ensure that this new law does not inadvertently capture open, transparent and permissionless parts of emerging blockchain technology.”

Article 30 in the version of the Data Act passed by the European Parliament in March detailed “essential requirements regarding smart contracts for data sharing.” Polygon Labs claimed that should the act pass without amendments to clarify the nature of parties — if any — operating smart contracts, the legislation “would not be enforceable for open, permissionless and decentralized smart contract applications and would substantially inhibit innovation and economic growth in the EU.”

Other experts have raised similar concerns with the Data Act potentially affecting the way regulators could handle smart contracts. Michael Lewellen, head of solutions architecture at OpenZeppelin, told Cointelegraph in March that the wording, which would allow for a “kill switch” of smart contracts, “undermines immutability guarantees and introduces a point of failure.”

Related: The future of smart contract adoption for enterprises

Polygon requested the Data Act “remain consistent” with the Markets in Crypto-Assets framework, scheduled for a final vote on April 19 after extensive negotiations between the European Parliament, the European Council and the European Commission. The Data Act will likely face similar treatment from EU policymakers before reaching the final form of the law, giving Polygon Labs’ request time for consideration.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

Paxful CEO announces 88% of accounts unfrozen, $4.4M in funds remaining

“I gave up my title as CEO to unfreeze these accounts and am also in danger of being in contempt of court,” said Ray Youssef.

The CEO of peer-to-peer crypto marketplace Paxful has announced the unfreezing of 88% of previously frozen user accounts more than a week after suspending operations.

In an April 16 Twitter thread, Paxful CEO Ray Youssef said roughly $4.4 million in frozen funds remained on the platform after staff had unfrozen 88% of existing accounts. According to Youssef, the unfreezing of accounts had been accomplished “with no engineers or compliance folks,” claiming all remaining frozen funds were “in the hands of” United States financial regulators.

Youssef said though roughly 3% of total user funds were still frozen, he had made the unfreezing his “final act” as Paxful’s CEO:

“I gave up my title as CEO to unfreeze these accounts and am also in danger of being in contempt of court,” wrote Youssef. “That is what I did besides alot of sleepless nights. Nothing more I can do but sleep well tonight. Integrity trumps risk.”

Related: Paxful shutdown hits Nigeria harder than the rest of the world — Here’s why

The “contempt of court” claim was likely related to ongoing litigation between Youssef and Paxful co-founder Artur Schaback, who helped launch the platform in 2015. Schaback claimed in court the company had been involved in the misappropriation of funds, money laundering and evasion of U.S. sanctions. Youssef told Cointelegraph at the time the allegations were “ridiculous.”

The announcement followed the suspension of operations for Paxful users on April 4. At the time, Youssef said there had been some “key staff departures,” citing “regulatory challenges” the platform was facing. The CEO had already authorized refunds for Earn program users affected by the collapse of Celsius months prior.

Magazine: Journeys in Blockchain: Ray Youssef of Paxful

Core Scientific debtors petition bankruptcy court to approve new president

The debtors appointed Adam Sullivan, a managing director at investment banking firm XMS Capital Partners, to assume the role of president amid the firm’s bankruptcy proceedings.

The debtors behind bankrupt cryptocurrency mining firm Core Scientific filed a motion for the approval of hiring a permanent president.

In an April 10 filing with the United States Bankruptcy Court for the Southern District of Texas, Core Scientific said it was addressing “a gap in the Debtors’ management team” prior to the firm filing for bankruptcy in December. The debtors appointed Adam Sullivan, a managing director at investment banking firm XMS Capital Partners, to assume the role of president amid the company’s bankruptcy proceedings.

“Mr. Sullivan is no stranger to the digital asset mining space and has extensive experience in the digital asset investment banking industry,” the filing said. “[He] will principally work on financial and strategic matters, including working with customer, supplier, and creditor relationships and assisting with the negotiation of a plan of reorganization in his capacity as a member of the management team.”

According to the debtors, Sullivan will receive a base salary of $500,000 as well as a guaranteed annual bonus of at least $500,000 in 2023 in his role as president. Soon-to-be former Core Scientific president Todd DuChene will stay on as the firm’s chief legal officer as well as assume the role of chief administrative officer.

Prior to its bankruptcy filing, Core Scientific reported it expected its “existing cash resources will be depleted by the end of 2022,” citing the low price of Bitcoin (BTC), increased electricity costs and litigation with crypto lender Celsius. The mining firm had hosted more than 37,000 rigs for Celsius and alleged in court filings that the crypto lender had failed to pay its power bills, contributing to its liquidity issues.

Related: Core Scientific to transfer $20M of equipment to settle bankruptcy dispute

Though moving through bankruptcy proceedings, the Texas firm continues to mine BTC despite disruptions to its supply of rigs. The bankruptcy court approved Core Scientific handing over more than 27,000 miners to the New York Digital Investment Group in February as part of a deal to pay off roughly $38 million in debt.

Magazine: Crypto winter can take a toll on hodlers’ mental health

Winklevoss twins infuse Gemini with $100M personal loan: Report

The cash infusion reportedly followed Gemini attempting to get funding from outside investors without success.

Tyler and Cameron Winklevoss, co-founders of the United States-based cryptocurrency exchange Gemini, have reportedly dipped into their own pockets to fund the business amid the crypto market downturn.

According to an April 10 Bloomberg report, the Winklevoss twins made a personal $100-million loan to Gemini following attempts to get funding from outside investors. Cointelegraph reached out to Gemini for comment, but did not receive a response at the time of publication.

The reported loan came amid regulators scrutinizing Gemini’s activities. In January, the U.S. Securities and Exchange Commission charged Gemini, as well as Genesis Global Capital, with offering unregistered securities through the exchange’s Earn program. New York’s Department of Financial Services also reportedly began investigating the exchange following reports many Gemini users claimed assets in their Earn accounts had been afforded FDIC protection.

Related: Gemini and Genesis’ legal troubles stand to shake up industry further

Following the announcement of the charges, Tyler Winklevoss accused the SEC of issuing a “manufactured parking ticket,” claiming Gemini staff had been in talks with the regulator for more than a year prior to its enforcement action. The complaint echoed that of crypto exchange Coinbase, whose chief legal officer said personnel met with SEC representatives “more than 30 times over nine months” but still received a Wells notice.

Magazine: SBF denies stealing FTX assets, SEC charges Gemini and Genesis, and more

Coinbase head of exchange departs and plans to start new crypto project: Report

Before joining Coinbase in September 2020, Vishal Gupta had been the head of USD Coin at Circle and a vice president at Goldman Sachs.

Vishal Gupta, who has been the head of exchange at Coinbase, is reportedly leaving his position after more than two years at the United States-based cryptocurrency exchange.

According to an April 10 Bloomberg report, Gupta planned to exit Coinbase but remain in the crypto space, suggesting he could be planning to start a new project focused on digital assets or blockchain. Prior to his time at Coinbase, Gupta had been the head of USD Coin (USDC) for stablecoin issuer Circle and earlier was a vice president for Goldman Sachs.

Former FTX CEO Sam Bankman-Fried was one of the first people to congratulate Vishal Gupta on his position as Coinbase head of exchange in 2020. Source: Twitter

Related: Coinbase CEO says Bitcoin Lightning is ‘something we’ll integrate’

The head of exchange’s reported departure came amid legal and regulatory scrutiny at Coinbase. In March, the crypto exchange reported receiving a Wells notice from the U.S. Securities and Exchange Commission, hinting at a potential enforcement action. Coinbase is also backing plaintiffs in a lawsuit against the U.S. Treasury Department’s Office of Foreign Asset Control for its decision to sanction the Tornado Cash mixer.

At the time of publication, neither Gupta’s LinkedIn page nor his Twitter profile showed any change in his employment at Coinbase. Cointelegraph also reached out to Coinbase regarding Gupta, but did not receive a response.

Magazine: Samsung’s Bitcoin ETF, $700M bust, Coinbase exits Japan

Decentralized exchange dYdX announces ’winding down‘ of services for Canadian users

“We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country,” said the exchange.

Cryptocurrency derivatives exchange dYdX has announced it will be restricting Canadian user accounts over the next seven days in a move to exit the market.

In an April 7 blog post, dYdX said it will be “winding down services” in Canada, starting with halting the onboarding of new users located in the country. On April 14, the exchange will move all existing Canadian users to “close-only mode,” allowing them to only withdraw funds.

“DYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity,” said the exchange. “We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country.”

The move followed the Canadian Securities Administrators announcing additional restrictions for crypto exchanges’ registration requirements in the country. The rules required platforms to be “prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.”

Related: GMX and dYdX go head-to-head for the top decentralized derivatives position

In September 2022, many dYdX users and those in the crypto space criticized a promotion from the decentralized exchange offering a $25 deposit bonus for confirming someone’s identity using a live webcam image. The exchange later ended the program, citing “overwhelming demand” rather than some of the privacy concerns put forth.

Magazine: Your guide to crypto in Toronto: Crypto City

Celsius Network to make April 12 filing, including info on voting for restructuring plan

“Our Disclosure Statement will provide a summary of the Plan, account-holder recovery percentages, FAQs, and additional information on certain risk factors,” said Celsius.

Bankrupt crypto lender Celsius Network has announced it will be moving forward on its Chapter 11 restructuring plan with a disclosure statement containing information for claim holders.

In a April 7 notice to users, the Celsius debtors said they will file a disclosure statement on April 12. A March 31 court filing in United States Bankruptcy Court for the Southern District of New York said the statement was aimed at providing “adequate information” for claim holders to vote on the proposed restructuring plan sponsored by NovaWulf.

Celsius first presented the plan in February, which proposed creating a public platform fully owned by Earn creditors called NewCo. The committee of unsecured creditors will appoint the majority of the firm’s board members, with no “Celsius founder involvement or relationship.”

According to the debtors’ statement regarding the plan, the April 12 filing will include details of events leading up to Celsius’ bankruptcy, projected recoveries for certain stakeholders should the restructuring plan be approved, and answers to frequently asked questions. The bankruptcy court is expected to conduct a hearing regarding approval of the disclosure statement on May 17, with a vote on the plan to follow.

Related: Celsius publishes list of users eligible to withdraw majority of assets

Since filing for Chapter 11 in July 2022, Celsius’ bankruptcy proceedings in court have included discussions on assets from the firm’s Earn program, crypto holdings, Bitmain coupons, and personal information of its users. In March, the bankruptcy judge approved a settlement plan allowing Celsius custody account holders to get back 72.5% of their crypto.

Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame