Blockchain Explained

2023-06-12 09:25:20 Polygon Labs Denies SEC’s Security Allegation For MATIC Token

Polygon Labs has made a statement in response to the United States Securities and Exchange Commission’s allegations that MATIC is an unregistered security. The digital asset was created outside of the United States and is primarily focused on the global community that supports the network. Polygon Labs has clarified that MATIC was an essential component of the Polygon technology from the beginning, ensuring that the network was and still is secure.

The team behind the development and growth of the Polygon blockchain has also said that they did not intend to target the United States and ensured that MATIC would be available to a broad audience. MATIC from fintech trading app Robinhood, the price of the token has dropped nearly 2% on the day and 33% over the previous week. This delisting was a result of the SEC’s classification of specific coins and tokens as securities. The SEC has explicitly referred to MATIC and 11 other tokens as securities in their lawsuit against Binance, the world’s largest cryptocurrency exchange. Along with MATIC, Binance USD, BNB, Solana’s SOL, Cardano’s ADA, Filecoin’s FIL, Cosmos Hub’s ATOM, The Sandbox’s SAND, Decentraland’s MANA, Algorand’s ALGO, Axie Infinity’s AXS, and Coti’s COTI were also labeled as securities by the regulator.

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2023-06-11 13:54:59 Polygon (MATIC) Plummets Over 30% After SEC Lawsuits Shake Crypto Industry

The recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against high-profile crypto exchanges have caused a significant drop in the prices of several digital assets. Polygon (MATIC) has been hit particularly hard among these assets, with a drop of more than 30% in its trading price. The SEC has accused Binance, one of the largest global crypto exchanges, of engaging in unregistered offers and sales of “crypto-asset securities,”.

Robinhood has reportedly decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 after the US SEC determined that a large number of tokens on Coinbase and Binance were securities. While other assets like ADA and SOL have also experienced significant drops in price, MATIC has been hit the hardest. At the time of writing, MATIC is trading at around $0.6 after it is down over 30% in the past 24 hours. These lawsuits have caused concern among investors and highlight the need for greater regulation in the crypto space. As the industry continues to evolve, it is important for investors to stay informed and for companies to ensure compliance with regulatory requirements.

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2023-06-10 11:39:42 Curve Finance CEO Accused Of Fraud By 3 Venture Capital Firms

A high-stakes legal battle between three leading crypto venture capital companies and the creator of the popular decentralized exchange Curve Finance is begun in a San Francisco court. According to a case filed in the Superior Court of California, San Francisco, Curve Finance founder Michael Egorov stole the three VC companies’ trade secrets and cheated them out of over $1 million in money while dangling the false promise of prospective ownership in Curve to acquire the investors’ confidence and support.

Egorov allegedly deceived them in several ways over a six-month period, according to ParaFi Digital Opportunities, Framework Ventures, and 1kx. The case, filed in April, also claims that Egorov relocated to Switzerland to avoid the impending legal consequences. Since 2020, the three companies have been pursuing breach-of-contract litigation against him and his business Swiss Stake in Switzerland. Beginning in 2020, Egorov allegedly deceived three venture investors by falsely promising them a share in Curve Finance. According to their most recent lawsuit filed in San Francisco in April, he is believed to have leveraged their network and reputation to win the trust and legitimize Curve Finance.

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2023-06-09 09:06:31 Bittrex Is Not Allowed To Refund Clients’ Cash And Crypto

According to a court filing, the US government is opposing a petition by the insolvent encrypted exchange Bittrex to restore clients’ cash and cryptocurrencies. The company’s U.S. subsidiary declared bankruptcy on May 8 after authorities accused it of running an unlawful stock exchange, and after striking a $30 million deal with the Treasury Department, it permitted Iran, Cuba, and Crimea to conduct business with Asia’s clients.

US government’s Financial Crimes Enforcement Network (FinCEN) contended that classifying creditors into subcategories outside of confirmation hearings would be improper, according to the government document. Bittrex could not explain why determining ownership of crypto assets was required prior to certifying the bankruptcy plan was essential. According to reports, Bittrex’s US office has $50 million in client cash and $250 million in customer cryptocurrencies. Previously, lawyers for the firm informed a Delaware court that the Malta-based company, which also filed for bankruptcy, had $120 million in customer cash and cryptocurrency and enough assets in both to satisfy withdrawals.

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2023-06-07 09:19:15 Coinbase Drops 30% After SEC Lawsuit As Users Pull Out $57.7 Million

Coinbase’s value has fallen almost 30% to $49 as the SEC accuses Binance and Coinbase of breaking the rules by allowing unregistered securities to be traded. Users have withdrawn over $57.7M, excluding Bitcoin. Coinbase has been hit hard by the Securities and Exchange Commission’s (SEC) lawsuit. The platform’s stock has plummeted by almost 30%, falling to $49. The SEC has accused Coinbase of breaking its rules by allowing users to trade numerous crypto tokens that were unregistered securities.

Since the SEC announced their lawsuit, users have reportedly pulled out over $57.7M across multiple chains from Coinbase, excluding Bitcoin. A significant portion of this amount, precisely $43.1M, is from Custody. The platform’s staking service has also been accused of breaking the agency’s rules. This product allows customers to turn over their crypto tokens to facilitate transactions on a blockchain, which then pays a return to the customer. The SEC alleges this offering was unlawful, despite Coinbase being subject to securities laws. Interestingly, the SEC did not bring charges against Coinbase CEO Brian Armstrong or other executives. This contrasts the charges against Binance, the world’s largest crypto platform.

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2023-06-06 11:39:28 Coinbase Shares Drop 10% Following SEC’s Suit Against Binance

Shares of Coinbase (COIN) were down 10.3% after news broke that the Securities and Exchange Commission (SEC) was suing Binance on allegations of violating federal securities law on Monday. The stock fell more than 5% right after the filing was released and then continued to fall. Meanwhile, the price of bitcoin (BTC) fell more than 5% to below $26,000. Shares of MicroStrategy (MSTR), which holds a vast amount of bitcoin on its balance sheet, fell almost 9%.

Bitcoin (BTC) dropped below the $26,000 mark. The SEC is accusing Binance of offering unregistered securities and staking services to the general public, among other allegations, as U.S. lawmakers double down on enforcement actions against crypto companies. In March, Coinbase itself received a warning from the SEC that it may soon receive enforcement action tied to its listing of potential unregistered securities. The exchange has since doubled down on its presence in Canada, which it says has clearer rules for crypto firms than the U.S., making it easier to operate in the country.

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2023-06-05 09:16:47 MUFG To Issue Bank-Backed Stablecoins On Multiple Blockchains Using Progmat Coin Solution

MUFG, the country’s largest bank, has announced the implementation of its Progmat Coin solution to issue native bank-backed stablecoins on various public blockchains. This move comes after new legislation permitting Japanese trust banks to issue stablecoins came into effect recently. The Progmat Coin solution, developed by MUFG, enables stablecoin issuance by multiple trust banks, expanding its scope beyond the bank itself.

MUFG aims to facilitate cross-chain swaps, payments, and lending across public blockchains, such as Ethereum, Avalanche, Cosmos, and Polygon. This interoperability can enable seamless settlements of transactions involving different blockchain-based assets, including NFT purchases settled with Progmat Coin on a different blockchain. Furthermore, the Progmat platform not only supports stablecoins but also security and utility tokens. As part of its evolution, MUFG is transforming Progmat into a joint venture with support from prominent financial institutions like JPX, Mizuho, SMBC, and SBI, in addition to backing from Japan’s main stock exchange operator.

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2023-06-04 12:24:02 Uniswap Summit Is Subtly Faked With Malicious Intent

Founder of Uniswap Hayden Adams has informed the community of a sophisticated fraud in China mimicking Uniswap. On June 2, the crypto community on Twitter published a video about the Uniswap conference, the biggest DEX in Ethereum today, which took place in May. The intricate degree of the impersonation scheme is shown not only in the magnificent size and backdrop of the video conference but also in the fact that the persons behind it built up a website for the Chinese Uniswap community.

Not content with that, the conference also included a video AMA with Uniswap’s CEO, who presented himself as “Mike Hanlon” and is presently the “Global Director of Uniswap Community.” Hayden Adams, the true founder of Uniswap, quickly moved to Twitter to disavow any affiliation with the conference and warn the community about scammers imitating the organization. It is unknown why the aforementioned Uniswap imitation conference could take place in China, which has prohibited cryptocurrencies since 2021. Yet, it demonstrates the members’ audacity. To entice naive investors, fraud might be used. Others claim that the meeting was hosted in Hong Kong and then invited Chinese guests.

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2023-06-03 10:20:23 unshETH Says $375,000 In Stolen Fund Still Unreimbursed

The LSDFi protocol unshETH revealed that the hacker has agreed to release contract ownership, although around $375,000 in funds have not been refunded. According to the notification, the attacker must return the remaining monies to the indicated location by June 3 at 01:00, otherwise, the attacker will be fined $50,000. Moreover, unshETH indicated that if the hackers do not refund the cash by the deadline, legal action will be taken.

Recently, a number of KOLs stated that the LSDFi protocol unshETH vault is suspected of having a security issue, advising users to get cash out as quickly as feasible. The reason for this is that the contract owner was tampered with. The project team has been informed. Nonetheless, the team said via Discord that emergency precautions had been implemented and that the essential Ethereum fund was secure. This morning, the LSDFi protocol replied to the security issue on Twitter. According to unshETH, one of the contract’s deployment private keys was disclosed on May 31. To be safe, the official has temporarily halted the withdrawal of ETH. According to the security model, unshETH’s ETH deposit (TVL up to $35 million) is safe due to multi-signature + time lock.

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2023-06-02 09:07:28 Coincheck’s Plan To List In The US Backdoor Extends The Deadline

Thunder Bridge Capital Partners IV (THCP), a US special purpose acquisition company (SPAC), stated that in response to the ongoing registration review process of the US Securities and Exchange Commission (SEC), it had submitted proxy statements, including a proposal to revise and extend the deadline for the merger with the Japanese crypto exchange Coincheck by one year, subject to shareholder approval of the extension proposal at the THCP general meeting.

Coincheck’s intentions to list on Nasdaq via a merger with SPAC Thunder Bridge Capital Partners IV is said to be postponed further. Thunder Bridge’s board of directors feels there will not be enough time to complete the merger before the July 2 deadline. It proposed extending the deadline by up to 12 months, subject to shareholder approval. Although Coincheck is unlikely to be listed on the Nasdaq, Tradecurve has emerged as an intriguing candidate for a listing on a top-tier CEX. Tradecurve, unlike other platforms like Binance and eToro, will prioritize privacy. As the initiative gets traction, conversations about listing it on a major CEX have heated up. The combination of Tradecurve’s decentralized structure and interesting features lays the groundwork for a listing.

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