Author: Max Bauer
The trustee managing the assets of Mt. Gox, the once-largest cryptocurrency exchange, has announced a one-year delay in the repayment deadline for creditors. The decision, aimed at addressing logistical challenges and concerns about potential Bitcoin sell pressure, has been met with positive reactions from the market. Mt. Gox, which was hacked in 2014, has been gradually repaying creditors the equivalent of nearly $9 billion in recovered assets. However, a significant portion of the remaining funds, including 44,900 Bitcoin (BTC) valued at over $2.8 billion, is still held in on-chain wallets. The delay in repayments, according to the trustee’s statement, is…
The ongoing battle between cryptocurrency and the U.S. Securities and Exchange Commission (SEC) has taken a new turn. Crypto derivatives exchange Bitnomial filed a lawsuit against the SEC on Thursday, challenging the agency’s claim that XRP, the world’s seventh-largest digital asset, is a security. Bitnomial Sues SEC over XRP This lawsuit comes just weeks after a New York federal judge ruled in favor of Ripple Labs, a blockchain payments company, stating that XRP was not a security when traded on exchanges. The SEC has appealed that decision. The crux of Bitnomial’s lawsuit revolves around its planned XRP futures contract. The…
BlackRock strategists are predicting a slower pace of interest rate cuts by the Federal Reserve, citing a more stable economic outlook. In a recent report, the investment firm stated that they believe the Fed will have room to cut rates to 3.5% or slightly higher by early 2025. The analysis is based on the minutes of the Fed’s September meeting, which indicated a gradual approach to interest rate reductions. Rick Rieder, BlackRock’s chief investment officer of global fixed income, emphasized that the market’s previous expectations of a “hard landing” for the economy were overly pessimistic. Rieder noted that recent movements…
Federal Reserve policymakers indicated on Thursday that further interest rate cuts are likely in the coming months, citing signs of cooling inflation and a robust but potentially weakening job market. However, one official suggested that skipping a rate cut in November might be an option. Data released earlier in the day showed that consumer price inflation fell to 2.4% in September from 2.5% in August, and weekly jobless claims rose unexpectedly. Federal Reserve Bank of Chicago President Austan Goolsbee said that the central bank is aiming to maintain the current economic conditions and that rate cuts will be gradual. “The…
The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Cumberland DRW LLC, alleging that the Chicago-based cryptocurrency trading firm acted as an unregistered dealer in the sale of $2 billion worth of digital assets. The SEC’s complaint, filed in the Southern District of New York, alleges that Cumberland DRW engaged in “dealer activity” in various cryptocurrencies, including Bitcoin and Ethereum, without registering with the SEC as a broker-dealer. The agency argues that the company’s actions violated Section 15(a) of the Securities Exchange Act of 1934. “Despite frequent protestations by the industry that sales of crypto assets are…
Ripple Labs Inc. has filed a cross-appeal with the U.S. Court of Appeals for the Second Circuit in its ongoing legal battle with the Securities and Exchange Commission (SEC). Ripple’s Stuart Alderoty Posts About the Appeal According to Ripple Chief Legal Officer Stuart Alderoty, the cross-appeal aims to solidify the company’s position and ensure that all key arguments are addressed. “The SEC lost on all key points—that’s why they appealed,” Alderoty stated in a press release. “Today, Ripple filed a cross-appeal to ensure nothing’s left on the table.” A cross-appeal is a legal maneuver where both parties in a lawsuit…
In a recent legal filing, the US government has suggested that the crypto exchange Bitfinex may be the only victim of a 2016 hack perpetrated by Ilya Lichtenstein and Heather Morgan. However, the government has also requested the court to open a pathway for Bitfinex customers to potentially submit claims. According to the US Attorney for the District of Columbia, “The government is not aware of any person who qualifies as a victim under the CVRA [Crime Victims’ Rights Act] or for restitution under the MVRA [Mandatory Victim Restitution Act], beyond perhaps Bitfinex.” Both Lichtenstein and Morgan, as well as…
The Chinese government is reportedly liquidating the remaining Ethereum (ETH) seized from the multibillion-dollar PlusToken ponzi scheme, causing minor dips in the cryptocurrency market. Seized Ethereum Started Transferring According to Onchain Data In early August, the dormant Ethereum tokens, which had been inactive since 2021, were reactivated on the blockchain. Over the past 24 hours, approximately 7,000 ETH out of the remaining 542,000 ETH ($1.3 billion) has been transferred to exchanges, indicating an intention to sell the remaining tokens. PlusToken, a massive MLM crypto ponzi scheme, operated from early 2018 until June 2019 when its masterminds were arrested by Chinese…
Renowned economist Tyler Cowen has suggested that Ethereum founder Vitalik Buterin is a strong candidate for the Nobel Prize in Economics. Cowen compared Ethereum’s transition from Proof-of-Work (POW) to Proof-of-Stake (POS) to changing tires while a car is driving, highlighting the complexity and significance of the achievement. While Cowen believes Buterin is a worthy contender, he also acknowledged that Satoshi Nakamoto, the anonymous creator of Bitcoin, should have been considered for the prize had they been alive. Cowen noted that none of the economists who have received the Nobel Prize have made any significant contributions to the field of cryptocurrency.…
US prosecutors on Wednesday announced the first criminal charges against financial services firms operating in the cryptocurrency sector. Four companies – Gotbit, ZM Quant, CLS Global, and MyTrade – along with 14 individuals, have been accused of market manipulation and sham trading. Federal prosecutors in Boston filed charges against the firms and their leaders and employees, which also led to arrests in several countries. Five individuals involved in the case have already agreed to plead guilty or have already done so.