Binance recovers $4.4B of mishandled funds / State attorneys general oppose SEC in Kraken case / Blast launches its main network [EN]

Show Notes

Bitcoin surpasses the Russian ruble to become the world's 14th-largest currency, Hong Kong emerges as a top crypto market in East Asia with new licensing regime, U.S. states challenge SEC's authority in Kraken lawsuit, Binance recovers $4.4B in mishandled crypto funds, LedgerPrime rebrands and resumes operations as MNNC Group post-FTX bankruptcy, and Ethereum Layer-2 network Blast launches with a significant initial TVL.

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Host 1:"Hello, fellow Crypto-enthusiasts! Today, I'm here to bring you the latest and greatest from the world of cryptocurrency. And joining me is the man who can make even a blockchain sound entertaining, Harry!"
Host 2:"Absolutely spot on, Phoebe! Shall we plunge into the captivating world of cryptocurrency, ladies and gentlemen? But first, a fascinating piece of trivia: Bitcoin has just overtaken the Russian ruble to become the world's 14th-largest currency. Quite remarkable, isn't it?"
Host 1:"Absolutely splendid, Harry! Moving on to Hong Kong, the bustling hub of East Asia, it has emerged as a leading crypto market with a brand-new licensing regime. Intrigued to delve deeper into this fascinating development?"
Host 2:"Absolutely, Phoebe! And on the topic of intrigue, there's a legal tussle brewing in the United States as certain states are contesting the SEC's jurisdiction in a lawsuit related to Kraken. It's quite a conundrum, isn't it? Who do you think will emerge victorious?"
Host 1:"Quite a conundrum, isn't it, Harry? But here's a fascinating twist - Binance has just succeeded in recovering a staggering $4.4 billion in mishandled cryptocurrency funds! What are your thoughts on that remarkable development?"
Host 2:"Quite a remarkable turn of events, isn't it? LedgerPrime, after a brief flirtation with bankruptcy, has reemerged under a new moniker, MNNC Group. It's akin to a classic Hollywood comeback tale, wouldn't you agree?"
Host 1:"Absolutely splendid, Harry! And last but not least, we have the launch of Blast, an Ethereum Layer-2 network, which has certainly made quite an explosive entrance! With an impressive initial Total Value Locked (TVL) to boot. Shall we embark on this intriguing exploration?"
Host 2:"Indeed, my dear audience! Prepare yourselves for a captivating journey as we delve deeper into these fascinating stories and uncover the exhilarating world of cryptocurrencies. Stay right where you are, for this promises to be an enthralling ride!"
Host 1:"And always bear in mind, we're not just your hosts. We're fellow aficionados of the crypto realm, embarking on this exhilarating journey alongside you! So, let's kick off this soirée in style!"
Host 1:"So, I've been hearing some intriguing buzz about Bitcoin making some significant moves in the crypto sphere. Care to enlighten us with the details, our resident crypto whiz kid?"
Host 2:"Absolutely spot on, old chap! Bitcoin has been quite the high roller of late. It's now strutting its stuff as the world's 14th-largest currency, if you can believe it. It's even left the Russian ruble in the dust! Quite the turn of events, wouldn't you say?"
Host 1:"That's quite remarkable! But what, pray tell, is fueling this remarkable surge?"
Host 2:"Indeed, there's been quite a remarkable surge in Bitcoin's value. In February, it achieved its highest monthly gain ever and even soared to a staggering peak of $63,913! Quite the impressive feat, wouldn't you agree?"
Host 1:"That's quite a substantial sum! But what's driving this impressive surge?"
Host 2:"Ah, indeed, a significant factor contributing to this surge is the substantial investor interest in spot Bitcoin exchange-traded funds, or ETFs, in the United States. These were given the nod by the U.S. Securities and Exchange Commission and commenced trading in January. On a single Wednesday, these ETFs witnessed a staggering $7.69 billion in daily trading volume. Quite the remarkable development, wouldn't you say?"
Host 1:"So, these ETFs serve as a gateway for traditional investors to dip their toes into the world of Bitcoin, do they not?"
Host 2:Absolutely! These ETFs provide an avenue for both retail and institutional investors to gain exposure to Bitcoin through conventional brokerage accounts. This means they can bypass the need to engage with crypto-native platforms, which have been under intense scrutiny from regulators.
Host 1:"Quite intriguing. I've also caught wind of this Bitcoin halving event. Care to enlighten us on that particular matter?"
Host 2:"Ah, an astute inquiry! The Bitcoin halving event is anticipated to take place in either April or May. It's a process that will halve miners' Bitcoin mining rewards, thereby reducing the influx of new Bitcoins into the network by a substantial 50%."
Host 1:"So, a reduction in the supply could potentially lead to an increase in prices, wouldn't you agree?"
Host 2:"Indeed, quite the theory! To put it into perspective, Bitcoin currently reigns as the largest cryptocurrency, boasting a market cap of a staggering $1.2 trillion. It even achieved an all-time high of approximately $69,000 in November 2021. Quite the impressive feat, wouldn't you say?"
Host 1:"Absolutely flabbergasting! Your insights are truly captivating. I'm certain our esteemed audience is as enraptured as I am."
Host 1:"I've heard some intriguing chatter about Hong Kong emerging as a crypto hub. What's the scoop? Or should I say, what's the Bitcoin?"
Host 2:"Absolutely spot on, my dear colleague! Hong Kong is truly making waves in the crypto realm. A recent report from Chainalysis, a distinguished blockchain data analysis platform, has positioned Hong Kong as the fifth largest crypto market in East Asia. An impressive $64 billion in crypto transactions graced their shores from July 2022 to June 2023. Quite the substantial figure, wouldn't you agree?"
Host 1:"Goodness gracious! That's an absolute fortune in digital currency! But who might be leading the pack?"
Host 2:"An astute observation, my dear colleague. South Korea, Japan, China, and Taiwan have long been the dominant forces in East Asia's crypto landscape. However, Hong Kong is certainly nipping at their heels, much like a digital hound in pursuit of a virtual automobile."
Host 1:"What measures are the fine folks in Hong Kong taking to ascend the ranks? Are they perhaps delving into the depths in search of crypto treasures?"
Host 2:"Quite so. In the latter part of 2022, Hong Kong unveiled its aspirations to establish itself as a prominent crypto hub. To achieve this objective, they sanctioned a new licensing framework for crypto exchanges in May 2023. This framework enables retail investors to engage in the trading of major tokens such as Bitcoin and Ether on authorized platforms."
Host 1:"That sounds rather intriguing. But how exactly are they implementing this new framework? Do they have a crypto constable patrolling the streets, so to speak?"
Host 2:"Absolutely, my dear colleague. The Securities and Futures Commission in Hong Kong commenced accepting license applications from crypto exchanges in June of the previous year. The application period has just drawn to a close, and they've amassed a grand total of 24 applicants poised to proffer their esteemed crypto services in the illustrious city of Hong Kong."
Host 1:"And what fate befalls those who missed the application deadline? Are they to be adorned with a digital dunce cap, perchance?"
Host 2:They shall receive a notification from the authorities. Failure to submit a license application by the 29th of February will result in the cessation of operations in the region by the 31st of May or within three months of receiving the notification.
Host 1:"Who are the key players in this burgeoning crypto landscape? Any familiar faces making their mark?"
Host 2:"Indeed, it's worth noting that HashKey and OSL currently hold the distinction of being the sole licensed crypto exchanges in Hong Kong. However, among the 24 license applicants, we have some prominent names such as Bybit, OKX, Crypto.com, Gate.io, HTX, and Bullish. Quite the lineup of esteemed contenders, wouldn't you agree?"
Host 1:"Curious indeed. I don't seem to spot Binance, Coinbase, or Kraken on that roster. Are they not considered major players in the crypto sphere?"
Host 2:"Quite right, old chap. Binance, Coinbase, and Kraken are indeed major players in the crypto sphere, but it appears they've opted not to throw their hats into the ring in Hong Kong just yet. One can't help but wonder if they're playing hard to get, or if they've got other irons in the fire. Only time will reveal their intentions, I dare say."
Host 1:"Indeed, the crypto hubbub in Hong Kong is quite the topic of conversation. But let's pivot for a moment. Have you caught wind of the recent entanglement between the Kraken crypto exchange and the SEC?"
Host 2:Ah, the legal tussle, I presume? Quite the intriguing tale, I must say. The SEC, or the U.S. Securities and Exchange Commission for those not in the loop, has indeed initiated legal proceedings against Kraken, a U.S.-based crypto exchange.
Host 1:"And it's not just the SEC, is it? There are several U.S. states involved as well, aren't there?"
Host 2:"Absolutely. Attorneys general from eight U.S. states have submitted a collective amicus brief in the lawsuit. A rather sophisticated legal term, I must say, denoting a document filed by individuals not directly involved in the case, yet possessing a keen interest in the subject matter."
Host 1:"Quite intriguing, I must say. So, which states are we discussing in this particular matter?"
Host 2:"Ah, quite the intriguing assortment of states, I must say. Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota, and Texas are all part of this entanglement. They're not exactly taking sides, but rather opposing the SEC's endeavor to regulate cryptocurrencies without deeming investment contracts as securities. Their contention is that the U.S. Congress has not bestowed this authority upon the SEC, you see."
Host 1:"So, it seems the SEC is broadening the scope of what constitutes investment contracts, isn't it?"
Host 2:"Indeed, their argument hinges on the notion that not every cryptocurrency can be automatically deemed a security. Their concern is also rooted in the potential impediment to state officials in enacting state laws, including those designed to safeguard consumers. It's rather intriguing, as some of these state laws actually offer greater protection to consumers than federal securities laws."
Host 1:"Quite the conundrum, isn't it? But what might Kraken's perspective be on this intricate affair?"
Host 2:"Kraken has petitioned a U.S. court to dismiss the SEC's lawsuit, contending that the agency has exceeded its jurisdiction. They assert that the SEC lacks the authority to oversee all speculative investments. Their argument is that the SEC's approach would effectively categorize a wide array of ordinary assets as securities, granting the agency unchecked control over commerce."
Host 1:Quite the impasse, isn't it? It shall be rather captivating to observe the unfolding of this legal drama. Your elucidation has been most enlightening.
Host 2:"Indeed, it's a rather intricate matter with a multitude of intricacies. We shall endeavor to keep you apprised as events continue to unfold. Do stay tuned, dear listeners!"
Host 1:"Pray tell, have you caught wind of the latest Binance brouhaha? As our esteemed resident crypto whiz, I'm sure you're well-versed in the matter."
Host 2:"Quite the enthralling crypto saga, isn't it? Binance, the colossal force in the crypto realm, has been assuming the role of a digital sleuth. They've successfully recovered an astounding $4.4 billion in crypto that users inadvertently misplaced while making deposits over the past two years."
Host 1:Goodness gracious, that's an absolute fortune! What on earth could be causing these crypto mishaps?
Host 2:"It's quite the concoction of confusion, I must say. Some users found themselves in a muddle due to mixing up their wallet addresses, while others deposited tokens that didn't quite dance to the system's tune. And then there were those who were caught out by the rather tricky business of blockchain upgrades."
Host 1:"Quite the labyrinthine journey through the world of crypto, isn't it? But I've heard whispers of some legal skirmishes as well. Quite the intriguing saga, I must say."
Host 2:"Indeed, quite the eye-watering sum, I must say. Binance recently parted with a staggering $4.3 billion to settle with U.S. authorities. A discerning U.S. judge expressed dissatisfaction, remarking that Binance had inadvertently exposed the financial system to exploitation by nefarious elements."
Host 1:"Goodness me, that's quite a hefty fine! What led them to such a predicament?"
Host 2:"Ah, quite the unfortunate misstep, I'm afraid. Binance and its CEO, Changpeng Zhao, have conceded to a lapse in their anti-money laundering measures and sanctions compliance in the U.S. It appears they allowed some rather dubious groups to conduct cryptocurrency transactions on their platform."
Host 1:"That's quite the blunder, isn't it? But are they taking steps to rectify the situation?"
Host 2:"Quite so. They've pledged to conduct a comprehensive revamp of their ethical programs, policies, procedures, and systems. Furthermore, they will be subject to the vigilant oversight of an independent entity for a period of up to five years."
Host 1:"Quite the burgeoning crypto market, isn't it? One can't help but wonder if there's a surge of newcomers eager to dip their toes into the world of digital assets."
Host 2:"Quite right, old chap. Binance's chief security officer, Jimmy Su, opines that the mishandling of funds is likely to persist as more neophytes venture into the realm of crypto. Quite the conundrum, isn't it?"
Host 1:"It's quite the frontier out there, isn't it? And it's not just the U.S. that's keeping a keen eye on Binance, is it?"
Host 2:"Indeed, they've been quite the subject of scrutiny in various other nations, including Australia, France, Belgium, and Brazil. They've found themselves bidding adieu to markets in Russia, Canada, Austria, the Netherlands, Cyprus, the U.K., and Germany, primarily due to regulatory compliance issues. Quite the global tango, I must say."
Host 1:"It's quite the tumultuous journey in the crypto realm. Let's observe with bated breath as Binance steers through these turbulent waters."
Host 2:"Ah, quite the intriguing proposition, I must say. Blast offers a rather tempting 4% and 5% interest rates to users who bridge their Ethers and stablecoins to Blast, respectively. And here's the delightful twist - they initiated early access last year, enabling users to commence earning yields by bridging their tokens and acquiring Blast Points. These points serve as rewards for bridging assets to other networks and for introducing new users. Quite the clever incentive, wouldn't you agree?"
Host 2:"Ah, you know I simply can't resist a splendid tech launch! Indeed, Blast has made quite the entrance. Users are now able to commence withdrawing their funds. At the time of launch, the total value locked, or TVL, on the network was an astounding $2.3 billion. And the community? Already boasting over 180,000 members! Quite the impressive feat, wouldn't you agree?"
Host 1:"Ah, indeed they were. LedgerPrime initially operated as a subsidiary of Ledger Holdings, which was subsequently acquired by FTX. However, following FTX's bankruptcy, LedgerPrime found itself compelled to cease its operations. Quite the tumultuous journey for them, akin to a thrilling rollercoaster ride, wouldn't you agree?"
Host 1:"Quite the scandalous affair, I must say. The erstwhile CEO, Sam Bankman-Fried, found himself embroiled in accusations of utilizing customer funds to offset losses at their sister company, Alameda Research. It truly was a chaotic situation, akin to a schoolboy dipping into his lunch money to settle his comic book debts!"
Host 2:"Ah, indeed, Blast is the brainchild of Tieshun Roquerre, the founder of the popular NFT marketplace, Blur. They successfully secured a substantial $20 million in a financing round led by esteemed crypto-focused venture capital firms Paradigm and Standard Crypto. Quite the crypto heavyweights, wouldn't you say?"
Host 2:"Absolutely! TVL, or Total Value Locked, is a metric utilized to gauge the overall value of digital assets locked or staked within a network. The higher the TVL, the more reputable and robust the network is perceived to be by investors. It's akin to a popularity contest within the crypto realm, wouldn't you agree?"
Host 1:"Absolutely. It's a realm that never slumbers, much like our esteemed audience, who are always hungry for the latest tidbits. So, ladies and gentlemen, stay tuned for more thrilling updates from the world of technology and crypto! And do bear in mind, in the realm of crypto, there's never a dull moment!"
Host 1:You know, we do have a soft spot for a compelling comeback tale, don't we? Well, LedgerPrime, the crypto hedge fund formerly associated with the now defunct FTX, has made a remarkable return. They've cleverly rebranded themselves as MNNC Group. Quite the unexpected twist in the plot, wouldn't you agree?
Host 2:You've got a keen ear, my dear! Indeed, the TVL did plummet by over 75% to $535.7 million. This was mainly due to users withdrawing their unlocked funds. It's akin to a high-stakes game of musical chairs, but with digital assets! Quite the thrilling spectacle, wouldn't you agree?
Host 1:"Quite an intriguing inquiry, I must say. MNNC Group presently boasts 11 employees, with the majority hailing from the esteemed ranks of LedgerPrime. They are also in the midst of recruiting additional staff, rather reminiscent of a grand reunion tour, wouldn't you agree?"
Host 1:"They've been rather elusive about the precise sum. Apparently, they've secured fresh funding from investors, some of whom were involved with LedgerPrime. However, they've chosen to keep the exact amount under wraps. It's like a tantalizing secret treasure chest, isn't it?"
Host 2:"Indeed, he's ventured into the realm of crypto once more with his new endeavor, Split Capital. It appears that the world of digital assets is rife with tales of resurgence and reinvention. One might even liken it to an enthralling, never-ending drama series!"
Host 2:"Ah, indeed, I recall that quite vividly! FTX, the erstwhile third-largest crypto exchange, met quite the tumultuous fate with its bankruptcy filing. A veritable scandal, wouldn't you agree? It unfolded like a gripping real-life soap opera!"
Host 1:"Marvelous explanation, my dear! It's always a delight to glean insights from your erudite musings. And to our esteemed listeners, do remember to stay inquisitive and continue to delve into the captivating realm of technology!"
Host 1:"That's quite the grand entrance, isn't it? But I've caught wind of murmurs about a rather substantial decline in the TVL within the initial 24 hours of its launch. Care to enlighten us on that?"
Host 2:"Now they've reemerged as MNNC Group. Quite the unexpected twist, wouldn't you agree? Any word on the amount they've managed to secure? Is it a modest sum or a princely fortune?"
Host 2:"Fascinating. And what of their ensemble? Have they embarked on a fresh start or managed to retain some of their seasoned crew? Is it a new cast or the familiar faces of yore?"
Host 2:"Indeed, quite the intriguing character, Zaheer Ebtikar. Rumor has it that he's embarked on a new venture of his own. Quite the enterprising spirit, wouldn't you say?"
Host 2:"Ah, indeed, LedgerPrime found itself entangled in that debacle, didn't it? Rather like a loyal companion caught in the midst of a skirmish, wouldn't you say?"
Host 1:Sounds like a win-win situation, doesn't it? But for our listeners who might be scratching their heads, could you elucidate the concept of TVL?
Host 1:"Have you caught wind of the grand entrance of Blast, the Ethereum Layer-2 blockchain network? Quite the buzz in the tech world, I must say!"
Host 1:"That's quite the amusing analogy, isn't it? Now, pray tell, who might be the mastermind behind Blast?"
Host 1:Absolutely splendid! And what's the scoop for the users?
Host 1:"Oh, do enlighten me! I'm all attention!"