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- US court approves settlement against Binance, firm to pay $2.7B to CFTC 👨⚖️💰
US court approves settlement against Binance, firm to pay $2.7B to CFTC 👨⚖️💰
PLUS: Circle Launches EURC on Solana for European Remittances. KeePass, Imtoken, Now Trader Joe Hit by Google Ad Phishing.
Manan Vora
December 19, 2023
Snapshot Web3
December 19, 2023
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Regulatory and Legal News
The UK has introduced a new regulation effective January 8, allowing the Financial Conduct Authority (FCA) and the Bank of England to operate the Digital Securities Sandbox (DSS). The sandbox will enable companies to test solutions and products related to tokenized securities under regulatory supervision. Businesses can explore the use of distributed ledger technology, commonly associated with cryptocurrencies, to digitize or tokenize traditional securities. The DSS aims to facilitate experimentation while allowing regulators to adapt rules to evolving technologies. This move reflects the UK's efforts to regulate the tokenization of real assets amid the global trend in financial institutions exploring such technologies.
A US court has approved a settlement between the Commodity Futures Trading Commission (CFTC) and cryptocurrency exchange Binance, along with its former CEO Changpeng "CZ" Zhao. Binance will pay $2.7 billion, while CZ has been ordered to pay $150 million to conclude the CFTC enforcement action. The court found that both Zhao and Binance violated the Commodity Exchange Act and CFTC regulations. This settlement follows a long-running case against CZ and Binance, with the CFTC initially suing them for operating an illegal derivatives exchange. As part of the settlement, CZ agreed to step down from his role at Binance, and both parties committed to enhancing Know Your Customer measures and implementing a formalized corporate governance structure.
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Innovation and Launches
Circle, a global fintech firm known for USDC, has introduced EURC, a euro-backed stablecoin, on the Solana network. This move aims to lead European remittance corridors, making Solana the fourth blockchain to natively host EURC, joining Avalanche, Ethereum, and Stellar. The integration enables seamless building and transactions across both EURC and USDC on the Solana network, providing faster and more cost-effective solutions for global money transfers. Circle plans to ensure EURC achieves full conformity with the Markets in Crypto-Assets (MiCA) regulation when the new European regime comes into effect, emphasizing regulatory compliance and stability for developers and users leveraging EURC on Solana.
Masa, a platform focused on building a zero-knowledge data network, has announced the launch of its zk-data network and marketplace on the Avalanche blockchain. The gasless Avalanche subnet is set to launch in the first quarter of 2024 and will be powered by AvaCloud, a managed blockchain service by Avalanche. Masa has received strategic investment from Avalanche's Blizzard Fund, a venture capital fund dedicated to growth and innovation on the Avalanche blockchain. The platform allows users to earn rewards for their data, utilizing the Zero-Knowledge Soulbound Token (zkSBT) as the personal data locker to ensure encrypted and private digital footprints.
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NFT, Gaming and Metaverse
Ubisoft's Champions Tactics: Grimoria Chronicles game saw over $2 million in sales within hours after free Warlords NFTs sold out quickly. The pixelated Warlords NFTs, initially minted for free, are now trading for about $600 each on OpenSea. Only 7% of the 9,999 NFTs are listed for sale, suggesting many collectors aim to use them for the game's next free mint. While the NFTs were free, buyers paid Ethereum gas fees. Ubisoft plans a gas-free experience using the Oasys blockchain. Gamers who missed the Warlords mint can anticipate a later free Champions figure drop. The game is expected to release in 2024.
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Scams and Hacks
A concerning trend in cryptocurrency theft has emerged with a surge in attacks targeting valuable digital assets. Recent incidents involve the use of malicious browser extensions, moving beyond hijacking and intrusive ads to specifically target cryptocurrency users. One notable extension is Rilide, which actively monitors cryptocurrency users, stealing wallet login information and passwords. It can bypass two-factor authentication and manipulate cryptocurrency transactions by swapping the recipient's wallet with the attackers'. Rilide targets Chromium-based browsers like Chrome, Edge, Brave, and Opera, disguising itself as a Google Drive extension to avoid detection. Users are urged to stay vigilant and informed to protect their crypto assets from evolving cyber threats.
Deceptive schemes through Google ads continue to target crypto enthusiasts, with the latest incident involving the Trader Joe DeFi platform. The Trader Joe team issued a warning about deceptive sponsored Google Search ads falsely claiming association with its decentralized exchange (DEX). They emphasized that Trader Joe does not endorse Google ads, and any such ads are fraudulent and may lead to phishing websites, risking wallet compromise. Users were urged to exercise caution and access the platform exclusively through the official website URL on their X account profile bio. Concerns arose as the fake Google ad displayed the official URL, but Trader Joe clarified it was a "vanity" link masking the real phishing site address. Similar deceptive schemes have been observed targeting KeePass and Imtoken users through Google ads, raising concerns about the accountability of search engines for crypto-based scams.
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Resource of the Day
Data Ownership Protocol (DOP) has launched its testnet, and participation in it qualifies users for a token airdrop scheduled for early 2024. The DOP testnet allows users to control the amount of transaction information they share, giving them an advantage in managing their data on the public blockchain. The testnet has seven steps, and completing them makes users eligible for the airdrop. The tasks include setting up a DOP wallet, following DOP on X, claiming Sepolia ETH, claiming testnet DOP, claiming testnet assets, encrypting assets, sending assets, and decrypting assets. The DOP wallet must be connected to the MetaMask wallet for the testnet phase.
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Miscellaneous
"Helium Mobile has seen so many signups, with some a bit more suspicious than others," an employee said.
Bitwise, the aspiring applicant for a spot Bitcoin ETF, has unveiled a captivating commercial aimed at advocating for it's upcoming Bitcoin Exchange-Traded Fund (ETF), if approved by the Securities and Exchange Commission (SEC).
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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