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2023-06-29 13:37:02 TUSD Depeg Due To TrueUSD Reserves Audited By FTX.US Collapsed

According to CoinDesk, the certificate of reserve of the troubled stablecoin TrueUSD was audited by The Network Firm, formerly Armanino, and worked with Sam Bankman-Fried (SBF) for FTX.US to perform the audit. Armanino, an accounting firm of FTX.US, has ended its crypto audit business and abandoned its clients. The reason is that other clients in the industry consider Armanino’s reputational risk to question their audit results and put pressure on it.

After the FTX incident broke out, American investors sued Prager Metis and Armanino, the auditors of FTX, accusing them of conspiring to commit extortion. Executives at Archblock, which powers the TUSD stablecoin, previously confirmed the Armanio team in emails to CoinDesk and said they would continue using The Network Firm. Earlier today, the community stirred with the rate of TUSD in Curve’s 4pool surpassing the 70% mark, and the stablecoin is showing a slight depeg signal. This case is reminiscent of Curve’s 3pool USDT rate crossing the 50% mark on June 15, not long ago, resulting in USDT being depeg for a short period of time.

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2023-06-27 12:01:28 Crypto Traders Eye $6.8B Bitcoin and Ether Options Expiry

The bullish buzz returned to the crypto market last week as bitcoin (BTC), the leading cryptocurrency by market value, jumped more than 15% in its best performance since March. Now a significant event looms on the horizon. On Friday at 08:00 UTC some 150,633 bitcoin options contracts worth $4.57 billion and 1.23 million ether contracts valued at $2.3 billion will expire on Panama-based Deribit exchange, which controls over 85% of the global options activity.

In bitcoin's case, investors have recently bought call options with strike prices at and above $30,000. As a result, that level has the highest open interest – or the number of active contracts – and market makers/dealers, who create order book liquidity by taking the other side of the investors' trades, hold a significant amount of "negative (short) gamma" exposure. Options are derivative contracts that give the purchaser the right to buy or sell an asset at a predetermined price at a later date. A call gives the right to buy, a bullish position, and the put confers the right to sell, a bearish position. Being short (negative) gamma means holding a short or sell position in the call or put options.

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2023-06-26 09:22:05 Judge’s FTX Client Confidentiality Order Receives Strong Media Outcry

Bloomberg, Dow Jones, New York Times, and Financial Times have appealed Judge John Dorsey’s ruling on June 9, allowing FTX to “permanently remove” individual customers from all records of the confidential name and to protect the legal rights of FTX. A legal representative for the media organization argued that FTX is not entitled to a “new and broad exception” to bankruptcy disclosure requirements simply because its clients used cryptocurrencies.

Judge Dorsey previously ruled that he wanted to ensure customers” are protected from becoming a victim of any fraud,” which is consistent with the exception of U.S. bankruptcy law to address the potential risk of identity theft or other harm. Reportedly, bankrupt companies are generally required to disclose the names of their creditors and the amount of their debts, including those owed to individual customers. Still, there are exceptions in U.S. bankruptcy law. Disclosure of information may create the risk of identity theft or other damages. This is not the first time the media has protested the sealing of the names of FTX customers, having previously filed an objection on May 3.

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2023-06-25 12:29:02 Wintermute Trading Accused Of Helping Celsius CEO Scam Investors: Report

Wintermute Trading Ltd., one of the biggest cryptocurrency market makers, was accused in a proposed class-action lawsuit of helping former Celsius Network Ltd. Chief Executive Officer Alex Mashinsky dupe investors in his now-bankrupt crypto lending firm. Wintermute Trading Ltd, one of the largest cryptocurrency market makers, has been accused of aiding in a fraudulent scheme alongside former Celsius Network Ltd. CEO Alex Mashinsky. The accusations stem from a proposed class-action lawsuit.

The lawsuit alleges that starting in March 2021, Wintermute engaged in “wash trading” and other improper activities, artificially inflating the value of Celsius’s native CEL token and loan products. The investors also claim that Wintermute played a critical role in Mashinsky’s failed attempt to prop up CEL in May 2022 after the Terra and Luna tokens collapsed. Celsius froze all accounts on June 13, 2022, and filed for bankruptcy the following month amid a market crash that caused significant losses to investors. The lawsuit alleges that Wintermute’s “wash trading” activities corrupted the CEL token prices and reported trading volumes, which deceived investors.

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2023-06-24 14:03:02 FTX Has Sued K5 Global, Seeking To Recover Over $700 Million

FTX filed a case in the Delaware Bankruptcy Court in the United States and sued various investment entities associated with it before bankruptcy. The case, which was filed on June 22, includes 16 accusations and demands over $700 million in damages from the defendants. In the case, the defendants include incubator and investment companies K5 Global, Mount Olympus Capital, and SGN Albany Capital, as well as associated organizations and K5 Global co-owners Michael Kives and Bryan Baum.

According to the filing, former CEO Sam Bankman-Fried attended a networking event given by Kives in 2022. Alameda Research, an FTX-affiliated crypto trading company, sent $700 million to Kives, Baum, and K5 Global, although the transactions were disguised as originating from shell firms SGN Albany and Mount Olympus Capital. This can be observed when Bankman-Fried relied on K5’s fame and company ties to get rescue finance in the days leading up to FTX’s bankruptcy in November 2022. The filing also demands the recovery of assets moved from Alameda Research to SGN Albany Capital, as well as funds transferred to Mount Olympus Capital from Kives, Baum, and SGN Albany Capital. These trades were regarded as having insufficient value and being unnecessary.

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2023-06-21 15:40:26 Binance Labs Invests In 5 Promising Projects In Incubation Program

Binance Labs, the venture capital and incubation arm of Binance, recently announced investments in the top 5 performing projects from Season 5 of its Incubation Program. Previously more than 900 project applications had been received but only a select few, less than 2% of the total, were selected to participate in the program. Throughout the season, participants benefit from a tailored curriculum that meets their specific needs as founders, complemented by exclusive resources from the ecosystem and engaging side conversations with industry leaders.

Here are 5 potential projects that Binance Labs decided to invest in covering many areas of Web3, Defi, Infrastructure, tools and middleware. Bracket Labs, a project to build leveraged on-chain products with simple interfaces and adaptive pricing, innovates to dramatically improve usability. DappOS, a project focused on building an operating protocol. Kryptoskatt, a Web3 financial simplification project for users around the globe. Mind Network, a full cryptographic network built on the patented Fully Adaptive Uniform Encryption (FHE) framework. zkPass, a privacy-preserving, composable decentralized identity verification solution for Web3 based on multi-party computation (MPC) and zero-knowledge proof (ZKP) technology.

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2023-06-19 16:51:31 Terraform’s Do Kwon Claims He Didn’t Know His Passport Was Fake

Do Kwon, who was recently arrested in Montenegro after evading authorities for months, claimed that he had no idea the Costa Rican passport he was traveling with was fake. Ever since the catastrophic collapse of the Terra ecosystem a year ago, Do Kwon, the person behind the protocol, has been blamed by many for his role. Although he claimed he was not trying to escape from the authorities, his location was unknown until recently when he was apprehended in the European country – Montenegro – while carrying a fake passport.

During a hearing at the Podorica District Court in Montenegro’s capital on June 16, Kwon explained that he received the Costa Rican passport he was caught with through an agency in Singapore “recommended by a friend.” He also tried getting a Granada passport but was rejected. However, when asked about the name of that agency, Kwon said he didn’t remember it, and he only knew it was Chinese. According to the report, Kwon also had a Belgian passport when he was arrested. Prosecutor Harris Chabotich said the two passports had different names and different dates of birth, which made it clear that they “were created with bad intentions. Please punish it appropriately.”. Kwon also urged the judge to punish just him for being caught with a fake passport.

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2023-06-18 10:38:38 Tether Refutes Allegations Backed By Chinese Companies In 2021

Documents obtained as part of the New York Attorney General’s investigation against Tether corroborated reports that it had assets issued by Chinese entities to back up its USDT reserves. Long-held concerns that Tether’s USDT stablecoin was backed by Chinese securities were proven in papers discovered as part of the attorney general’s probe against Tether in 2021. According to a Bloomberg investigation in October 2021, Tether had billions in short-term loans to Chinese enterprises.

The stablecoin issuer apparently canceled up to 29 accounts held by prominent crypto players two years ago, according to facts in papers disclosed by the New York Attorney General (NYAG). The majority of the people on the list seem to have had their accounts canceled for various reasons. Tether answered that it does not wish to comment on any specific connection, however, everyone did pass the stringent compliance checks at onboarding and continuous monitoring required by Tether’s compliance regulations. the controversial crypto lending service BlockFi, CMS Holdings, and the now-defunct crypto hedge fund Galois Capital.

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2023-06-17 17:19:02 Hong Kong Is Poised To Open The Floodgates For Chinese Crypto Investment

Hong Kong will serve as a conduit for Chinese capital to own crypto financial assets. The process starts with a wealthy Chinese investor buying a Bitcoin ETF listed on the Hong Kong Stock Exchange, and ends with physical Bitcoin held in a local custodian. According to Hayes, the process starts with a wealthy Chinese investor exchanging CNY for HKD and purchasing a Bitcoin ETF listed on the Hong Kong Stock Exchange.

Hayes believes that this process solves many problems for China. Wealthy Chinese have an outlet to invest in a hard asset, which they perceive as a way to escape the ongoing weakening of the CNY. Additionally, the endpoint of this outlet is an institution that must follow whatever rules Hong Kong regulators put in place, which means the Chinese government controls the physical Bitcoin. This is no different than how Bitcoin held in any US-listed ETF or trust is ultimately controlled by the US government. The ETF manager then purchases physical Bitcoin from the global market, which is then held with a local Hong Kong licensed custodian.

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