On September 25th, MicroStrategy announced an additional purchase of approximately $147.3 million, acquiring 5,445 BTC at an average price of $27,053 per Bitcoin. As of September 24, 2023, MicroStrategy now holds a total of 158,245 BTC, acquired at an approximate cost of $4.68 billion, with an average price of $29,582 per Bitcoin.
2. SEC Aims to Expedite Ethereum Futures ETF link
On September 28th, according to Bloomberg’s ETF analyst Eric Balchunas, there are reports that the U.S. Securities and Exchange Commission (SEC) is looking to expedite the approval of Ethereum futures ETFs (because they want to free up from their work after the government shutdown); therefore, they have requested applicants to update their documents by Friday afternoon so that they can start working on them on Monday and possibly begin trading on Tuesday. Balchunas noted, “There are now over a dozen trying to do a straight Ethereum futures ETF, so it’s going to be a crazy race.”
3. SEC Chairman Stresses Cryptocurrency Intermediaries Must Follow Securities Laws and Criticizes Cryptocurrency
a. SEC Chairman Gary Gensler Says Most Cryptocurrency Intermediaries Must Comply with Securities Laws link
On September 27th, SEC Chairman Gary Gensler delivered remarks during a hearing at the U.S. House Financial Services Committee. In his prepared opening statement, he stated that the vast majority of cryptocurrencies likely fall under the investment contract test and are thus subject to securities laws. As a result, most cryptocurrency intermediaries must comply with these laws. Given the widespread non-compliance in the industry, the SEC has taken a series of enforcement actions, some of which have been settled, while others are awaiting resolution. He also mentioned that their updated proposal will encompass all crypto assets.
b. SEC Chairman Gary Gensler Strengthens Criticism of Cryptocurrency in Congressional Hearing link
On September 28th, SEC Chairman Gary Gensler continued to take a tough stance on the cryptocurrency industry during a congressional hearing. Gensler declined to answer specific questions about a Bitcoin spot ETF and criticized digital asset firms for their lack of caution in managing client assets. He emphasized that blending assets is a “recipe for not a good result.” House Subcommittee Chairman Patrick McHenry (R-N.C.) pointed out the SEC’s “losing streak” in court and criticized its “crackdown” on the digital asset ecosystem, which he believes is causing confusion and “long-term damage” to the industry. In response to Congressman Al Green’s question about whether there could be appropriate regulation of digital currencies, Gary Gensler stated that the dollar already exists in digital form and is quite robust. Cryptocurrencies, he argued, are not currencies because they do not fulfill the three basic functions of money: a store of value, a unit of account, and a medium of exchange. It might happen in the future, but it won’t happen in 2023.
4. Binance’s Weekly Summary
a. Binance Announces Complete Exit from Russia, Sells Russian Business link
On September 27th, Binance announced the sale of its Russian business to CommEX, completely exiting the Russian market. Binance will work with CommEX to inform users on how to migrate their assets to CommEX. As part of the KYC process for new user registrations in Russia, a portion will be immediately redirected to CommEX and will expand in scale over time. In the coming months, Binance will be discontinuing all trading services and business lines in Russia.
CommEX is a newly established exchange with no publicly available information about its controlling individuals or employees. According to their website announcement, the exchange began spot trading with BTC/USDT and ETH/USDT trading pairs on July 25th and officially launched on September 26th at 12:00 (UTC). As of September 27, their Twitter account has only 255 followers, including CZ, the CEO of Binance. CZ mentioned in a tweet that BNB holders will continue to enjoy a 25% trading fee discount on CommEX.
b. Binance Reopens Registration and Access to Products and Services in Belgium link
On September 26th, Binance announced via a tweet that registration and access to Binance products and services have been reinstated in Belgium. In June of this year, the Financial Services and Markets Authority (FSMA) of Belgium had ordered Binance to cease operations and exit Belgium, as Belgium does not allow Binance to provide services to individuals outside of the European Economic Area (EEA).
5. OKX Releases the Eleventh Asset Reserve Proof link
On September 26th, OKX released its eleventh Asset Reserve Proof (snapshot date 9–18). User BTC assets totaled 142,000 BTC, an increase of 5.5% compared to the previous snapshot on August 25th, adding 7,376 BTC. User ETH assets amounted to 1.37 million ETH, showing a growth of 41.8% since the last snapshot and an increase of 404,000 ETH. User USDT assets were 493 million USDT, a decrease of 1.6% since the last snapshot, with a reduction of 82 million USDT. OKX explained that the significant increase in ETH assets is due to the inclusion of ETH2.0 staking in the Proof of Reserves (POR), which was not previously counted in the assets.
6. Kraken Plans to Launch U.S. Stock and ETF Trading in 2024 link
On September 28th, according to Bloomberg, the cryptocurrency exchange Kraken is planning to launch stock and ETF trading services in the United States in 2024, marking its first foray into businesses outside of the cryptocurrency realm. An anonymous source revealed that Kraken initially intends to offer these services in the United States and the United Kingdom through a new department called Kraken Securities. The company has already obtained the necessary regulatory licenses in the UK and has applied for a broker-dealer license with the U.S. Financial Industry Regulatory Authority (FINRA).
7. Barclays UK to Prohibit Cryptocurrency-Related Payments for UK Customers Starting October 16 link
On September 26th, according to CoinDesk, the second-largest private bank in the UK, Chase Bank, will prohibit providing cryptocurrency-related payments to its UK customers starting from October 16th. Chase Bank stated that the reason for this ban is the “increasing frequency with which fraudsters use cryptocurrencies to steal large sums of money.”
On September 28th, Coinbase CEO Brian Armstrong criticized Chase Bank’s decision to prevent UK customers from engaging in cryptocurrency-related transactions, stating that Chase’s decision is “far from right.” Armstrong also urged UK cryptocurrency holders to consider closing their Chase Bank accounts and called on UK government officials, including Prime Minister Rishi Sunak and Chancellor of the Exchequer Andrew Griffith, to investigate whether Chase’s move aligns with the UK’s policy objectives.
8. Walmart to Sell Pudgy Penguins NFT Toy Collection in Two Thousand Stores Across the United States link
On September 26th, according to The Block, the world’s largest retailer, Walmart, will be selling the Pudgy Penguins NFT toy collection in its 2000 stores across the United States. The price range for these toys will be from $2.99 to $11.97 each. Each Pudgy toy will grant access to the multiplayer digital social platform called Pudgy World. Pudgy World operates on the Ethereum L2 network zkSync Era.
9. HTX Hot Wallet Hacked, Resulting in a Loss of $7.9 Million link
On September 25th, according to Cyver Alerts monitoring, suspicious transactions involving HTX were detected. It was observed that an EOA address received 5,000 ETH, worth $7.9 million, from HTX’s hot wallet yesterday. Additionally, this morning, it was discovered that HTX had performed a hot wallet migration. Cyver has confirmed that one of HTX’s hot wallets was compromised, resulting in a loss of $7.9 million. HTX communicated with the hacker address via Etherscan, confirming their identity, and requested the return of the funds. They offered a 5% white hat bonus, valid until October 2, 2023. If the funds are not returned by the deadline, they will involve law enforcement.
Justin Sun stated that HTX has fully covered the losses from this hack and resolved the related issues. All user funds are protected by the Investor Protection Fund (SAFU), and the platform is operating normally. The $8 million (5k ETH) loss, relative to their $3 billion in assets, represents a relatively small amount, equivalent to two weeks’ revenue for the HTX platform.
10. Mixin Network Cloud Service Provider’s Database Targeted in Attack, Involving Approximately $200 Million link
On September 23rd, Mixin Network’s Cloud Eye merchant database was attacked, resulting in an estimated loss of approximately $200 million. Mixin Network issued an announcement suspending deposit and withdrawal services. Mixin founder Feng Xiaodong, in a candid statement, mentioned that the assets primarily affected by the breach were Bitcoin, and assets like BOX and XIN did not experience severe theft. Regarding the stolen assets, they are currently planning to compensate a maximum of 50%, with the remainder being reimbursed in the form of bond tokens. Jiang Zhuoer questioned the $200 million theft from Mixin, suggesting that the BTC in BOX should normally be stored in a cold wallet.
On September 27th, Mixin founder Feng Xiaodong announced a preliminary plan for the recovery of user wallet assets in Mixin Messenger. He mentioned that they had essentially determined the condition of the damaged assets. The expected compensation ratios for BTC, ETH, and ERC-20 USDT are 90%, 30%, and 10%, respectively, while other versions of USDT were not affected. Feng Xiaodong stated that the formal compensation plan would be announced at a later date, but assured that any changes in compensation ratios would not exceed 1%. Furthermore, for other cryptocurrencies with varying degrees of loss, the team is preparing to use existing funds and borrow to provide a 100% reimbursement to affected users. Feng Xiaodong mentioned that the Mixin team is working diligently to calculate the USD equivalent of the stolen assets based on the coin’s price on the day of the theft for compensation, with a priority on compensating those affected by ERC-20 USDT.
Fundraising
- The Supra oracle project has declared the successful closure of a funding round exceeding $24 million. link
- Rated Labs, an Ethereum browser, has secured an impressive $12.888 million in an A-round financing led by Archetype. link
- AnchorWatch proudly announces the completion of a $3 million funding round, led by Ten31. link
- Fhenix, a blockchain powered by homomorphic encryption technology, has successfully concluded a seed round financing of $7 million. link
- Avantis Labs has accomplished a seed round financing of $4 million, with Pantera Capital as the lead investor. link
- Pimlico, in a significant move, has disclosed the attainment of $1.6 million in seed round financing, with 1confirmation taking the lead. link
Learn more, check out crypto-fundraising.info.
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