Weekly Crypto Digest for July 10 - July 16, 2023.
Monday, July 17, 2023
In this issue of Weekly Crypto Digest Ripple wins case against SEC, US presidential candidate invested Bitcoin, SEC accuses Coinbase of deliberate violation of the law, FTX Exchange Starts Accepting Compensation Claims and more news.
Ripple wins case against SEC
On July 13, the Court of the Southern District of New York concluded that programmatic sales and other distributions of the Ripple XRP token do not constitute the offer and implementation of investment contracts.
Judge Analisa Torres ruled in favor of the California-based blockchain company in a process that has been going on since 2020. However, in her opinion, the sale of coins to large industry players violated US securities laws.
Amid the verdict, XRP quotes jumped 97% from $0.47 to $0.93.
The SEC is satisfied with certain points of the final decision in the Ripple Labs case, but the regulator does not rule out the possibility of an appeal. The SEC emphasized that it is the “Howey test” that is decisive in classifying certain crypto assets as securities.
The former head of the SEC saw the chances of approving a Bitcoin ETF
Applicants for a spot Bitcoin ETF have a good chance of being approved if they can prove that it is a more efficient and effective way for investors to buy a digital asset. This was stated by former SEC Chairman Jay Clayton.
9800 BTC seized from Silk Road set in motion
The US authorities have again begun moving the first cryptocurrency confiscated from the Silk Road darknet marketplace. In multiple transactions, government-affiliated wallets transferred over 9824 BTC (~$300 million at the time of writing).
According to on-chain data, on July 12, DOJ-owned addresses sent 8,200 BTC (~$250M) and 1,118 BTC (~$34M) to two unidentified wallets in a series of transactions.
Another 506 bitcoins (~$15.5 million) were moved to another unknown address. Later, the cryptocurrency was distributed to several new wallets. According to PeckShield, 158 BTC (~$4.86 million) went to the Binance exchange.
In March 2023, the US government sold 9,861 BTC for $215 million. This was only part of the confiscated assets - the authorities planned to liquidate the remaining 41,491 BTC at that time in four batches during the year.
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SEC accuses Coinbase of deliberate violation of the law
Lawyers from the US Securities and Exchange Commission (SEC) questioned the correctness of Coinbase's statement about ignorance of violations of securities laws in its activities.
Since the filing of the SEC lawsuit against the company, its capitalization has grown by more than 50%. At the same time, several top managers, including Armstrong, sold a total of 88,058 shares for ~$6.9 million.
US presidential candidate invested about $250,000 in bitcoin
At the end of June, the reserves of the first cryptocurrency, owned by the nephew of the 35th US president and participant in the current election race, Robert Francis Kennedy Jr., ranged from $100,001 to $250,000. This is evidenced by a financial report discovered by CNBC.
According to the documents, the investment brought the policy to less than $201. It is not specified who acquired the digital asset, but representatives of Kennedy confirmed that the funds belong to him personally.
CFTC fines Bitcoin exchange Digitex $15 million
A U.S. federal court has ordered crypto exchange Digitex Futures and its CEO Adam Todd to pay $15 million in fines in a U.S. Commodity Futures Trading Commission (CFTC) lawsuit alleging fraud and activity without a license.
According to the CFTC, the company attempted to manipulate the price of the native DGTX token, illegally offered futures contracts, failed to register with the agency, and failed to implement KYC/AML procedures. The court also ordered a ban on Digitex and related organizations.
US authorities have arrested the former head of Celsius
On July 13, law enforcement officers in the United States detained Alex Mashinsky, the former CEO of the Celsius crypto lending platform. Anonymous Bloomberg sources report this.
According to court documents seen by insiders, the US Securities and Exchange Commission (SEC) filed a lawsuit against the company and its ex-head. According to the publication, the case is closed.
The regulator accused Celsius of raising funds through fraudulent and unregistered sales of "cryptocurrency securities", repeatedly deceiving investors about its financial position and manipulating the price of the native CEL token.
WonderFi, Coinsquare, and CoinSmart create the largest crypto exchange in Canada
WonderFi, Coinsquare, and CoinSmart have finalized a deal that resulted in a Bitcoin exchange with 1.65 million users and ~$600 million in assets.
Coinsquare shareholders are expected to own 43% of the combined firm, WonderFi shareholders 38%, and CoinSmart shareholders 19%. The company's securities will be issued on the TSX under the ticker WNDR.
The conglomerate will own the platforms Bitbuy, Coinberry, Coinsquare, CoinSmart, SmartPay, CBIX, Bitcoin.ca and the not-yet-launched BetLegend. All three companies will merge under the name Coinsquare.
FTX Exchange Starts Accepting Compensation Claims
WonderFi, Coinsquare, and CoinSmart have finalized a deal that resulted in a Bitcoin exchange with 1.65 million users and ~$600 million in assets.
Coinsquare shareholders are expected to own 43% of the combined firm, WonderFi shareholders 38%, and CoinSmart shareholders 19%. The company's securities will be issued on the TSX under the ticker WNDR.
The conglomerate will own the platforms Bitbuy, Coinberry, Coinsquare, CoinSmart, SmartPay, CBIX, Bitcoin.ca and the not-yet-launched BetLegend. All three companies will merge under the name Coinsquare.
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