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Crypto Chaos: Regulatory Moves, Hacks, and Unraveling Projects – Weekly Digest

December 17, 2023
Crypto Chaos: Regulatory Moves, Hacks, and Unraveling Projects – Weekly Digest

This week was a rollercoaster in the world of cryptocurrency, marked by regulatory debates, significant hacks, and notable developments across various projects. Here’s a recap of the key events:

Regulatory Waves and Conflicts

  1. U.S. CFTC Chair Behnam’s declaration that most crypto assets are commodities contradicted the SEC’s stance, highlighting regulatory conflicts.
  2. Stablecoin issuer Tether reaffirmed its commitment to working with U.S. authorities, emphasizing robust AML measures.
  3. Binance responded to the SEC’s argument of guilt, disputing the agency’s claims of its involvement in charges.

Regulation Initiatives and Impact

  1. KuCoin settled with NY regulators, agreeing to exit the state with a $22 million fine.
  2. Senator Warren introduced a crypto bill aiming to curb illicit activities, sparking concerns among the crypto community.
  3. The SEC’s denial of Coinbase’s petition for clear rules led to an immediate appeal by the exchange.

ETF Developments and SEC Discussions

  1. Valkyrie Investments filed for a spot Bitcoin ETF using a cash-only method, as the SEC delayed the decision on an Ethereum ETF.
  2. SEC Chair Gensler hinted at considering the ETF applications with a fresh perspective, meeting with BlackRock on their Bitcoin ETF.
  3. Analysts predict multiple ETF approvals between Jan. 5-10, while Google updated its ad policies for crypto products.

Exploits and Hacks

  1. Ledger’s Connect Kit faced an exploit, resulting in the theft of funds totaling up to $484,000.
  2. Trump’s NFT series release made headlines, while former Credit Suisse executive Riegelnig launched Rulematch, a bank-oriented crypto trading platform.
  3. SafeMoon filed for bankruptcy, seeking dissolution amid SEC charges, while Do Kwon’s custody was extended in Montenegro.

NFT Platforms Breached

  1. P2P platform NFT Trader suffered a hack, resulting in the theft of NFTs worth $2.4 million.
  2. The holder of stolen NFTs offered their return for a 10% bounty, prompting cautionary advice from market analysts.

The crypto landscape remained turbulent, with regulatory clashes, significant hacks, and the dissolution of struggling projects dominating the headlines.

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