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Vitalik Buterin's Account Compromise, SEC vs Ripple, and Calls for Crypto Regulation
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Welcome to the latest edition of Coinfeeds Daily Digest, your go-to source for the most recent developments in the crypto markets.
Crypto world is never short of action, and last weekend is no exception. From high-profile hacks affecting Ethereum's co-founder to the Federal Reserve sounding the alarm on the stablecoin market, the stakes are higher than ever. And let's not forget the ongoing legal tussle between the SEC and Ripple, which could set a significant precedent for the industry.
Market Update
News
Ethereum Co-founder's Twitter Account Hacked
Vitalik Buterin, the co-founder of Ethereum, had his X (formerly Twitter) account hacked, leading to victims losing over $691,000 through malicious links. The hacker allegedly posted a link to a free commemorative NFT, enticing victims to connect their wallets, which resulted in the loss of their funds. The incident has led to a user claiming losses to their CryptoPunk NFT collection. Blockchain investigator ZachXBT has been actively informing his followers about the hacker's actions. The hacker shared a malicious link to an alleged free commemorative NFT available, enticing victims to connect their wallets, before ultimately leading to the victims losing all their funds.
The phishing attack carried out through Buterin's hacked account resulted in the theft of $700,000 in cryptocurrencies and NFTs. The hacker used the account to promote a fake commemorative NFT mint, which led users to a phishing website that drained cryptocurrencies and NFTs from interacting wallets. The stolen assets included a CryptoPunk NFT worth 153 ETH ($250,000) and hundreds of ether from multiple individuals. The hacker is believed to have used the Pink drainer software for the attack.
Federal Reserve Official Expresses Concern Over Stablecoin Market
Federal Reserve official, Michael Barr, has expressed deep concern over the $120 billion stablecoin market, which is closely linked to the price of major cryptocurrencies like Bitcoin and Ethereum. Barr warned that non-federally regulated stablecoins could pose significant risks to financial stability, monetary policy, and the U.S. payments system if they become a widespread means of payment and store of value. He emphasized the importance of establishing a robust federal framework for all stablecoins.
SEC Counters Ripple in Effort to Appeal Groundbreaking XRP Ruling
The US Securities and Exchange Commission (SEC) has countered Ripple's argument against an appeal in the ongoing case regarding the XRP cryptocurrency. The SEC intends to appeal Judge Analisa Torres' ruling that Ripple violated federal securities law in its sale of XRP to institutional investors, but not retail investors. The SEC has until September 1 to present its case, and if granted, will present its case before the Second Circuit Court of Appeals. The SEC believes that settling legal disputes now could expedite the case's resolution.
Congressman Tom Emmer seeks amendment to limit SEC's crypto oversight
U.S. Congressman Tom Emmer has introduced an amendment aimed at limiting the Securities Exchange Commission's (SEC) oversight of the cryptocurrency industry. Emmer accuses SEC Chair Gary Gensler of overstepping his authority and misusing taxpayer funds. The amendment would restrict the SEC's use of funds for digital asset enforcement until comprehensive regulations are established. Emmer has previously sponsored bills to increase regulatory transparency and introduced the Blockchain Regulatory Certainty Act, which clarifies the status of blockchain developers and service providers.
Coinbase CEO Says Lack of Clear Crypto Rules Has Caused ‘Terrible Things,’ Calls for Regulatory Clarity in US
Coinbase CEO Brian Armstrong has called for clear regulatory rules for the US digital assets industry, stating that the lack of such regulations has led to "terrible things" such as crypto firms collapsing or moving overseas and the US weakening as a global financial hub. Armstrong says that clear regulatory rules are needed for the US digital assets industry as it continues to burgeon. He also commented on the recent ruling in favor of Grayscale in its lawsuit against the SEC, noting that Coinbase, as the custodian in many ETF applications, stands to benefit from the creation of Bitcoin ETFs.
Apple Secures Rights for Sam Bankman-Fried’s Story
Apple Inc. has bought the rights to Michael Lewis’s upcoming book, “Going Infinite: The Rise and Fall of a New Tycoon”, which tells the life story of Sam Bankman-Fried. The book rights were purchased for a record-breaking $5 million, surpassing the previous high of $2 million paid for the Harry Potter series. The book is set to launch on the same day as Bankman-Fried’s criminal trial in New York, on October 3.
1 in 4 investment firms assign senior execs to digital assets: Report
According to a report by Amberdata, 24% of asset management firms have adopted a digital assets strategy, with an additional 13% planning to do so in the next two years. The report surveyed 60 investment professionals across the US, UK, and Europe, revealing that nearly half (48%) of the participants include digital assets in their firm's portfolio. Despite regulatory pressure from the SEC and CFTC, the report predicts a potential positive outcome in the next few years, with the SEC and CFTC expected to provide positive opportunities for investors.
G20 moves forward with international crypto framework
The G20, a group of the world's 20 largest economies, is pushing for a swift implementation of a cross-border framework for crypto assets. The framework will facilitate information exchange between countries beginning in 2027. The G20 also endorsed recommendations from the Financial Stability Board for the regulation of crypto-assets activities and markets.
Coinbase raises USDC interest rate to 5%
Coinbase is now offering up to a 5% interest rate on any USDC held on the exchange, up from the 4% introduced earlier in the year. Based on historical data from the company’s website, the increase marks an impressive 150% bump from the 2% reward rate on USDC that was active as of June 9.
BlackRock Enters in Cryptocurrency Market by acquiring Voyager Digital
BlackRock, a global asset management giant, is planning to acquire Voyager Digital, a cryptocurrency platform that has filed for bankruptcy. This move marks BlackRock's first foray into the cryptocurrency sector and is seen as a strategic step towards the Bitcoin ETF application process. Voyager Digital, once the largest crypto brokerage platform in the US, filed for Chapter 11 bankruptcy due to a severe liquidity crisis. The acquisition will provide BlackRock with the necessary licenses and conditions to operate a crypto asset business.
FTX Wants to Retrieve Money Paid to Shaquille O'Neal, Naomi Osaka
Bankrupt crypto exchange FTX is reportedly seeking to retrieve some of the money it paid to celebrities and professional athletes for promotional purposes. Among those named are Shaquille O’Neal and Naomi Osaka. The company's financial advisors are reviewing whether these payments can be recovered under Chapter 11. The move is part of FTX's efforts to redeem some of the money it owes to its creditors. The company had previously spent millions on advertising and sponsorship deals, including with the NBA’s Golden State Warriors and Formula 1 racing team Mercedes-AMG Petronas.
As always, stay tuned for more updates in crypto!