The editors of Incrypted have prepared a weekly digest about the most important events in the cryptosphere. In it we will talk about the SEC’s claims against Terraform Labs for $5.2 billion, the loss of the Renzo token’s connection to Ethereum, the punishment for Changpeng Zhao, the upcoming launch of spot Bitcoin ETFs in Hong Kong and other events from the Web3 sphere.
Top News Bitcoin News
- The rate of the first cryptocurrency remains relatively stable after halving
On April 20, 2024, the Bitcoin block reward was halved. This week, the asset’s rate demonstrated relative stability and avoided the global surges and falls that were typical for it after the halving.. The price of the first cryptocurrency ranged from $63,272 to $67,232.
Bitcoin BTCAt the time of writing, the rate is at $63,471, according to TradingView. The asset’s market capitalization is $1.26 trillion.
It is worth noting that after the halving, the mining difficulty reached its historical maximum.. On April 24, 2024, the indicator reached 88.1 T, an increase of 1.99%.
- The income of Bitcoin miners has reached a historical high.
On April 22, 2024, it became known that on the day of halving, the daily income of Bitcoin miners reached a historical maximum against the backdrop of sharply increased commissions and the launch of the Runes protocol. The figure reached $107.76 million.
Commissions are one of the sources of income for Bitcoin miners. As a result of the factors mentioned above, the revenues of these counterparties did not decrease after the halving, as expected, but increased.
- Bitfinex: after Bitcoin halving, demand for the asset will be five times higher than supply
Experts at the Bitfinex cryptocurrency exchange believe that after the recent halving, demand for the asset may exceed supply by five times. Analysts note a reduction in the daily emission of the first cryptocurrency, which should ultimately amount to $30 million.
With an average daily inflow into spot Bitcoin ETFs of $150 million, demand for the asset will exceed supply many times over, the company notes.
- Activists proposed adding bitcoins to the reserves of the National Bank of Switzerland
A human rights group supporting cryptocurrencies has prepared an appeal to the Swiss National Bank (SNB). She is going to convince board members of the need to add bitcoins along with gold to the bank’s treasury. According to supporters of the first cryptocurrency, such a decision will strengthen the independence and neutrality of the state.
- Experts call Bitcoin the most deflationary asset
After the next halving on the Bitcoin network, the rate of inflation in the supply of the asset dropped to 0.8%, which is significantly less compared to gold, Glassnode experts calculated.
- Santiment: Bitcoin whales have accumulated 266,000 BTC since the beginning of the year
Analysts at Santiment said large Bitcoin holders have accumulated an additional 266,000 BTC since the start of 2024.. In monetary terms, this amounts to $17 billion.. The company notes that whales with balances ranging from 1,000 BTC to 10,000 BTC received 1.24% of the total asset supply of 21 million BTC during the mentioned period.
In addition, the company spoke about the price movement of the first cryptocurrency and the behavior of investors after halving. In their opinion, Bitcoin is still in the phase of asset redistribution, while large holders are in no hurry to take profits.
Cryptocurrency ETFs
- Spot ETFs based on Bitcoin and Ethereum will enter the Hong Kong market on April 30
Bitcoin and Ethereum spot ETF trading in Hong Kong will start on April 30, 2024. The media reported this with reference to a representative of one of the investment product suppliers – the Hashkey company.
Six exchange-traded funds will enter the market pre-market. The information was confirmed by Bloomberg Intelligence analyst Eric Balchunas. He also stated that the commission in the funds will range from 0.3% to 0.99%. According to the expert, this is below the expected level.
- BlackRock’s spot Bitcoin ETF recorded 70th straight day of capital inflow
On April 22, 2024, BlackRock’s iShares Bitcoin Trust (IBIT) spot Bitcoin ETF recorded 70 straight days of net inflows. Taking this into account, the product entered the top 10 best exchange-traded funds according to the mentioned indicator. At the time of writing, IBIT has $17.5 billion in funds under management, according to SoSo Value.
- BNY Mellon invested in spot Bitcoin ETFs from BlackRock and Grayscale
One of the world’s largest depository banks, Bank of New York Mellon Corp (BNY Mellon), invested in shares of spot Bitcoin ETFs from BlackRock and Grayscale Investments.
The bank purchased shares of the IBIT fund for $806,091, and also invested $448,989 in the investment product GBTC. It is worth noting that representatives of the financial institution did not comment on the situation at the time of publication.
- SEC postpones decision on options on spot Bitcoin ETFs
The US Securities and Exchange Commission (SEC) has delayed a decision on applications to begin trading stock options on spot Bitcoin ETFs. The regulator also requested public comments on this issue.. Among other things, the SEC asked the public whether options on crypto funds are subject to the same rules as stocks.
- Standard Chartered has changed its forecast for spot Ethereum ETFs to more pessimistic
Standard Chartered bank has changed its forecast regarding the launch of spot Ethereum-ETFs in May 2024. Company experts now believe this is unlikely.
Previously, the bank highly assessed the chances of launching a new class of exchange-traded funds. The organization’s previous forecast said capital inflows into this segment could reach $45 billion in the first year.
- SEC postpones consideration of applications for spot Ethereum-ETF from Grayscale and Franklin Templeton
On April 23, 2024, the SEC postponed the decision on the spot Ethereum-ETF from Franklin Templeton and Grayscale. The final decision on these products was scheduled for June 11 and June 23, 2024, respectively.
Ecosystem News
- Renzo token lost its connection to Ethereum
On the morning of April 24, 2024, the LRT token of the Renzo protocol – ezETH – lost its connection to Ethereum. At the moment, its ratio to the underlying asset fell to 1 to 0.5.
A few days later, the token partially restored the binding. However, the price of ezETH is still lower than the value of the underlying asset. When preparing the material, it is $3239, while the Ethereum rate is at $3292, according to CoinMarketCap.
- FTX will sell the next batch of Solana tokens through auction
Failed cryptocurrency exchange FTX continues to convert its digital assets into cash. The company is preparing for sale a new batch of Solana (SOL) tokens, which it intends to sell during the auction.
Previously, the exchange, founded by Sam Bankman-Freed, sentenced to 25 years in prison, sold up to 30 million SOL to several large companies, earning between $1.6 billion and $1.9 billion.
- The Notcoin team announced the launch dates for the NOT token
The Notcoin (NOT) token will launch at the end of April 2024. This was announced by the founder of Open Builders Alexander Plotvinov. NOT’s listing was originally planned for April 20, 2024, the Bitcoin halving day, but the date was postponed. The project team decided that they needed more time to ensure that the token launch went smoothly
- Binance Academy will cooperate with the State University of Information and Communication Technologies of Ukraine
The educational blockchain center Binance Academy and the international laboratory Blockchain Center, “dedicated to the development of talent in the field of blockchain,” announced a partnership with the State University of Information and Communication Technologies of Ukraine.
As part of the partnership, the organization will deliver a ten-week series of training courses that are aimed at deepening understanding of blockchain and compliance.
- Michael Saylor earned $370 million by selling MicroStrategy shares
MicroStrategy founder Michael Saylor received $370 million as a result of the sale of company securities. In the first four months of 2024, he sold about 400,000 shares of the firm. The entrepreneur entered into an agreement with MicroStrategy to sell the assets of the company he created last year.
- Arkham found dozens of wallets with millions of dollars hanging on blockchain bridges
The Arkham Intelligence analytical platform has identified a significant number of crypto wallets, funds from which are stuck in various DeFi bridges. We’re talking millions of dollars. Among the many wallets are those associated with famous personalities and large companies, such as Ethereum co-founder Vitalik Buterin and the Coinbase exchange.
Cryptoassets and the law
- The US Department of Justice demanded a sentence of three years in prison for CZ
The US Department of Justice sent a memorandum to the court in which it demanded a sentence of 36 months in prison for the former CEO of the Binance exchange, Changpeng Zhao (CZ).. In addition, he faces a fine of $50 million.
Soon after, it became known that the entrepreneur sent a letter to Judge Richard A. Jones, who is overseeing his case.. CZ apologized for “poor decisions” and took full responsibility for his actions. He said this would be his “only encounter with the criminal justice system.”
Initially, CZ faced a sentence of 18 months in prison, but given the severity of the offense, the prosecution considered it necessary to toughen the punishment. Changpeng Zhao pleads guilty to facilitating money laundering through Binance. He left the post of CEO of the company in the fall of 2023.
Ivan Pavlovskyy- SEC demands Terraform Labs and Do Kwon pay $5.2 billion in fraud case
The SEC filed a motion with the court demanding that the collapsed company Terraform Labs pay $5.2 billion. The claim relates to a lawsuit in which the agency accuses the firm and its co-founder of fraud. On April 5, 2024, a New York court found the company and its former CEO guilty of defrauding investors and causing the collapse of the Terra ecosystem to the tune of $40 billion.
Later, Terraform Labs announced a number of innovations dictated by the court decision in the SEC lawsuit. In particular, the company will limit access to some products for US users.
- The European Parliament approved AML rules banning anonymity for crypto assets
On 24 April 2024, the Anti-Money Laundering Regulation (AMLR) passed its final vote in the European Parliament. Lawmakers approved new rules to combat illegal transactions, which will also affect the digital assets segment.
AMLR provides for the introduction of “risk mitigation” measures. These include blockchain analytics, crypto asset data collection, and other activities..
The EU is also introducing a complete ban on anonymous payments through custodial wallets or transactions using privacy coins. Cryptomixers and other services aimed at providing additional privacy will be illegal.
- Tether promised to freeze sanctioned addresses
Last week, media reported that Venezuela’s state oil company, PDVSA, was using the USDT stablecoin to circumvent US sanctions.. A day later, a Tether representative announced that the stablecoin issuer would freeze addresses associated with organizations under sanctions.
- The Central Bank of Nigeria demanded to freeze the accounts of users of Binance and other crypto exchanges
The Central Bank of Nigeria (CBN) has issued a directive requiring banks and financial institutions in the country to restrict transactions by users of cryptocurrency exchanges, including Binance.
The CBN has required financial institutions to identify individuals and entities that have ever transacted on exchanges. The regulator said that the accounts of such users and companies must be switched to Post No Debit (PND) mode.
- The US Department of Justice stated that the co-founders of Tornado Cash knew about money laundering and received profit from the mixer
The US Department of Justice has provided clarification regarding its charges against the co-founders of the Tornado Cash mixer. They argue that the developers’ activities were not limited to simply writing code.
According to authorities, Roman Storm and his partner Roman Semenov profited from the mixer. The prosecution believes that they also knew about money laundering through the project, but continued to promote Tornado Cash.
- The prosecutor’s office demanded 20 years in prison for the main defendants in the ACE Exchange case
Taiwanese prosecutors brought 32 charges and demanded 20 years in prison for the four main defendants in the ACE Exchange case.. According to the case materials, the number of victims of the actions of participants in this scheme reached 1,200 people. They suffered total damages of approximately $24.5 million.
The airdrop of memcoins covered the cost of pre-ordering the Chapter 2 smartphone from Solana
An airdrop from two projects – Maneki and Cat in a Dogs World – covered the cost of pre-ordering the Chapter 2 smartphone from Solana Mobile at $450. According to the announcement from these teams, Saga owners and those who pre-ordered the new device received a total of 5,199 Maneki (MANEKI) and 36,700 Cat in a Dogs World (MEW).
Runes has collected $135 million in commissions since release
The Runes protocol has received 2129 BTC in commissions – $135.6 million since its release. The project was launched immediately after the fourth halving on the Bitcoin network, and the bulk of the income came in the first days after the reward was halved.
ViaBTC sold “epic satoshi” for 33.3 BTC
Mining pool ViaBTC sold the first Satoshi of a new era block called “epic Satoshi” for 33.3 BTC, which at the time of the transaction was valued at $2.13 million. The transaction was completed on the CoinEx cryptocurrency exchange as part of an auction that lasted about two days.
Consensys filed a lawsuit against the SEC
Consensys, the developer of the MetaMask wallet, filed a lawsuit against the SEC. The organization explained this as a desire to “protect the Ethereum community in the United States.”. Its representatives believe that the Commission’s desire to regulate Ethereum as a security will have wide-ranging consequences and jeopardize future innovation.
CTO a16z crypto criticized memcoins as an asset class
The technical director of the investment company a16z crypto, Eddie Lazarin, spoke negatively about the memcoin sector. He agreed with the statement that these assets are “leading to an outflow of crypto developers to a degree more extreme than the bear market of the last few years.”
Samourai Wallet Mixer Founders Arrested and Charged with Money Laundering
The founders of the cryptocurrency mixer Samourai Wallet, Keonna Rodriguez and William Lonergan Hill, were arrested and charged with money laundering. The US Department of Justice stated that the project is an unlicensed money transfer company