Cryptocurrency Exchange

Crypto Stories Part 2: Bitcoin led Charlie Shrem into a tumultuous life

The man who introduced the Winklevoss twins to crypto ended up in prison. He expressed no regrets to Cointelegraph.

Charlie Shrem paid a steep price for his place in crypto history. Major figures in the crypto world were part of his story, and his personal life was transformed as he went from online retailer to CEO of Bitcoin (BTC) exchange BitInstant and convicted felon before he was even 30.

Coming from a prominent family in Brooklyn’s Syrian Orthodox Jewish community, Shrem was on the path to becoming a rabbi from an early age.

“The only way to get out was through money,” Shrem realized. He said on Cointelegraph’s Crypto Stories:

“On the internet, people didn’t judge me based on any other factors other than what I was contributing to the conversation […] My opinion was appreciated very greatly.”

Shrem learned of Bitcoin and developed the concept for BitInstant, a company that facilitated purchases of Bitcoin at a time when it could only be obtained from Mt.

“Bitcoin Jesus” Roger Ver invested in BitInstant.

Bybit sees BTC, ETH ‘flight’ of institutional investors to stablecoins, but not for long

Cryptocurrency exchange Bybit has released its latest quarterly report, revealing the trading and holding trends of its institutional traders heavy in positive Bitcoin sentiment.

The cryptocurrency exchange Bybit released its fourth quarter report on Dec.

The report found that institutional traders had some 45% of their assets in stablecoins, with the remaining split 35% in Bitcoin (BTC), 15% in Ether (ETH) and only 5% in altcoins, which the exchange categorizes as anything other than the aforementioned digital assets.

The survey suggests that the “flight” to “safer assets,” like stablecoins, in a bear market “might explain this risk-averse asset allocation from traders.”

Nonetheless, institutional traders’ allocation of Bitcoin did spike in September, which differentiated itself from the holding patterns of other types of users.

*Surge in institutional traders’ BTC holdings in September 2023. Source: Bybit*

According to Bybit, the alignment of a surge in institutional BTC holdings with the prevailing positive market attitude toward Bitcoin can be correlated with “favorable lawsuit outcomes, fostering anticipation for the SEC’s potential approval of a spot BTC ETF.”

On Dec. 4, BTC surged above $41,000 for the first time in 19 months, and the overall market capitalization for the digital asset passed $800 billion, overtaking the real multinational holding company Berkshire Hathaway, and is now behind companies like Meta (formerly Facebook) and Nvidia.

South Korean financial authorities solicit reports on unlicensed crypto exchanges

Financial regulators in South Korea have opened a window of time for people to come forward and report any unlicensed cryptocurrency exchanges operating in the country.

Financial regulators in South Korea released an update on Dec.

The Digital Asset Exchange Association (DAXA) and the Financial Intelligence Unit (FIU) of South Korea collaborated on the initiative. DAXA includes five of the major digital asset exchanges operating in the country — Upbit, Bithumb, Coinone, Korbit and Gopax.

According to the regulators, the goal of receiving these reports is to find domestic and foreign virtual asset business operators targeting Korean citizens and not working per Article 7 of the Specific Financial Information Act.

Reports will first be reviewed by DAXA, and then the results will be forwarded to the FIU, after which it will respond to the former to determine the status of the operator and whether it needs to be notified.

An official from DAXA said that if operators continue to engage in “undeclared business activities,” then the FIU “plans to take necessary measures, including notifying the investigative agency.”

DAXA said reports can be filed through its tip email address and should include all the information related to the business, reasons for suspicion and evidence of its undeclared business activities.

FTX and Alameda transfers another $22M worth of crypto asset

Following their most recent move, FTX and Alameda Research have transferred another significant amount of digital assets, amounting to an impressive $22 million.

Blockchain analysis firm Lookonchain reported that cryptocurrency powerhouses FTX and Alameda Research are actively engaged in a substantial transfer of digital assets, amounting to an impressive $22 million.

Following their bankruptcy declaration, FTX and Alameda Research have actively m aneuvered in cryptocurrency, another bouquet of digital assets, transferring significant amounts to prominent exchanges.

Today #FTX/#Alameda transferred ~$22M assets again, including:

6.26M $IMX($9.12M)
20M $GMT($5.29M)
1,643 $ETH($3.43M)
441,425 UNI($2.69M)
77.77B $SHIB($652K)
102,651 $BAL($389K)
2.24M $LOOKS($261K)
801,893 $WOO($179K) pic.twitter.com/VUqWBiNj5G

— Lookonchain (@lookonchain) December 2, 2023

In their most recent move, a transfer of $10.8 million transpired on platforms such as Wintermute, Binance, and Coinbase. The latest transfer of $10.8 million was spread across eight tokens: $2.58 million in StepN’s GMT, $2.41 million in Uniswap’s UNI, $2.25 million in Synapse’s SYN, $1.64 million in Klaytn’s KLAY, $1.18 million in Fantom’s FTM, $644,000 in Shiba Inu’s SHIB and small amounts of Arbitrum’s ARB and Optimism’s OP.

On Oct. 24, the FTX and Alameda wallets transferred $10 million to a single wallet address, which was later redistributed to Binance and Coinbase accounts.

Report: Ex-FTX execs team up to build new crypto exchange 12 months after FTX collapse: Report

KyberSwap announces treasury grants for hack victims

The grant is designed to ease the financial burden on affected individuals and will equal the USD equivalent of the assets lost in the security breach.

KyberSwap intends to provide financial assistance to users affected by a significant exploit on Nov.

The grant is designed to ease the financial burden on affected individuals and will equal the USD equivalent of the assets lost in the security breach.

Examinations into the security breach have unveiled that the weakness originated from the tick interval boundaries within KyberSwap’s concentrated liquidity pools. This loophole enabled an attacker to manipulate liquidity artificially, resulting in a substantial depletion of funds.

Initially assessed at $47 million, the loss was later verified to be $48.8 million.

Interestingly, KyberSwap has successfully recovered $4.7 million of the stolen funds, which were separately taken by third-party MEV bots during the hack.

By offering treasury grants, this response to this crisis marks a notable effort in the decentralized finance community to maintain trust and support among its users following security breaches.

SEC faces sanctions threat as Judge questions DEBT Box case accuracy

Initially, the SEC, led by attorney Michael Welsh, had convinced the court to freeze DEBT Box’s assets, arguing the company was moving to Dubai, beyond U.S. regulatory reach.

United States District Judge Robert Shelby has cautioned the Securities and Exchange Commission (SEC) lawyers, hinting at possible sanctions due to purportedly deceptive statements in a legal action against Digital Licensing Inc., also recognized as DEBT Box, a crypto company.

Lodged in the federal court of Utah, the SEC’s legal action alleged that DEBT Box deceived investors by around $50 million via the vending of unregistered securities known as “node licenses.”

Judge Shelby’s decision revealed notable discrepancies in the SEC’s case. Initially, the SEC, led by attorney Michael Welsh, had convinced the court to freeze DEBT Box’s assets, arguing the company was moving to Dubai, beyond U.S.

The judge raised apprehensions regarding the behavior of the SEC lawyers.

The intricacy of the case is underscored by a TRM Labs report corroborating the SEC’s primary claim that DEBT Box deceived investors regarding mining tokens.

This milestone signifies a pivotal moment in the legal process, highlighting the complexities of cryptocurrency regulation and underscoring the significance of legal responsibility in high-stakes financial litigation.

KuCoin pledges $20K grant to TON Foundation for ecosystem development

The funding will support TON ecosystem projects, research and development efforts, community-building and marketing activities.

KuCoin Ventures, the venture arm of Seychelles-registered crypto exchange KuCoin, will provide grants to The Open Network (TON) blockchain platform, including an initial $20,000, to support the growth and expansion of the TON ecosystem.

According to a Dec.

Ian Wittkopp, accelerator head at TON Foundation, said the grants from KuCoin aid them in continuing to support real-world blockchain solutions in payments and gaming within its ecosystem.

“Today’s partnership with KuCoin Ventures is an acceleration point in the momentum of mini-app development on the The Open Network… KuCoin Ventures’ efforts align with TON’s vision of a more accessible and decentralized digital future for everyone.”

Alicia Kao, managing director of KuCoin, attributed the move to the company’s belief in TON’s potential in the blockchain industry.

“This strategic alliance aligns with our mission of promoting further development of the crypto and blockchain industry through tighter cooperation.”

“We believe this signifies a fresh synergy between exchanges and the blockchain landscape, and we aspire that this joint effort will serve as a motivating example, spurring further similar ventures,” she added.

A KuCoin spokesperson told Cointelegraph that the partnership is in its first phase.

“This partnership is just the beginning. We plan to leverage this collaboration for deeper cooperation and communication… We are making all the necessary preparations for this… collaboration.”

Besides supporting the expansion of the TON ecosystem, KuCoin seeks to replicate its success with other blockchain collaborations “to facilitate the transition of cryptocurrency from a niche interest to mass adoption.”

Coinbase tracks 6% rise in info requests from law, government agencies

The requests are increasing in number and coming from more jurisdictions every year.

Crypto exchange Coinbase says it recorded a 6% rise in requests from law enforcement and government agencies compared to 2022, with the number of jurisdictions issuing requests jumping by 19, according to the exchange’s annual transparency report.

Four countries — the United States, Germany, the United Kingdom and Spain — made up nearly three-quarters (73%) of the 13,079 agency requests to Coinbase for information between Q4 2022 and Q3 2023.

The United States made 5,686 requests to Coinbase, up from 5,304 last year, with 90.4% of those from criminal enforcement agencies.

Meanwhile, Australia sent 262% more requests to Coinbase compared to the previous year, placing it in sixth place at 453.

*Countries that sent Coinbase more information requests compared to the previous year. Source: Coinbase*

The report covered the final quarter of 2022 and the first three of 2023.

“Our obligation is to respond to these requests if they are valid under financial regulations and other applicable laws. […] Under certain circumstances, we may ask the government or law enforcement agency to narrow their request.”

Coinbase said in a blog post in September that 83% of “G20 members and major financial hubs” have crypto regulations in force or passed legislation on crypto.

Celsius grants access to withdrawals for eligible crypto holders

Eligible participants can withdraw 72.5% of their cryptocurrency holdings minus transaction fees.

Bankrupt cryptocurrency lending platform Celsius has started withdrawals for select users in a crucial development for the company and its clients amid financial instability and legal issues.

According to a filing in the United States Bankruptcy Court for the Southern District of New York, participants in its custody program falling under “Class 6A General Custody Claims” and “Class 6B Withdrawable Custody Claims” are now eligible for fund withdrawals, with a deadline for withdrawals set for Feb.

Eligible participants can withdraw 72.5% of their cryptocurrency holdings minus transaction fees.

Following its bankruptcy filing in July 2022, the platform has navigated various legal obstacles.

In a subsequent update, creditors approved the company’s reorganization plan in September, paving the way to distribute around $2 billion in Bitcoin (BTC) and Ether (ETH). 20 announcement, Celsius said the core business of the NewCo company proposed under its restructuring plan will be Bitcoin mining rather than staking.

Celsius has been maneuvering through bankruptcy proceedings and legal challenges from multiple regulatory entities.

Crypto investment platform Fasset granted operational license in Dubai

Fasset has been granted a Virtual Asset Service Provider (VASP) license from regulators in Dubai, allowing it to perform broker-dealer services legally in the emirate.

Digital asset investment platform Fasset was granted an operational license on Nov. 29, according to a listing on the Dubai Virtual Asset Regulatory Authority (VARA) website.

The Virtual Asset Service Provider (VASP) license granted to Fasset allows it to perform broker-dealer services legally in Dubai.

The company was initially based in London, though it now operates in Indonesia and Dubai.

Cointelegraph contacted Fasset for comment and additional information on the development but has not yet received a reply.

VARA, the issuing regulator, is the sole authority for enforcing regulations on digital assets in Dubai. Earlier in November, the VARA shuffled around its leadership as it prepared to expand operations and “ramp up to full-scale market operations” in 2024.