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Families of Hamas attack victims have sued Binance for allegedly facilitating the group's violence, while the crypto exchange previously admitted to allowing transactions by terrorist groups and agreed to a $4.3B fine and leadership changes after U.S. charges; Ether experienced significant price volatility, reaching a 20-month high; Celsius Network exited bankruptcy, transforming into a Bitcoin mining company; the U.S. will track crypto mining companies' electricity consumption; DZ Bank in Germany plans to pilot a retail crypto trading service; and Bybit applied for a license in Hong Kong to offer crypto trading services to retail investors.
Your go-to podcast where we break down the latest cryptocurrency news into easy-to-understand insights.
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Host 1:"Hello there, everyone! Today, we're delving into the world of cryptocurrency with the always-curious Harry. Harry, what's the latest buzz in the crypto world?"
Host 2:"Indeed, it's rather tumultuous in the world of cryptocurrency. Binance is facing serious allegations from the families of Hamas attack victims, accusing them of complicity. Quite the tempest, wouldn't you agree?"
Host 1:"Quite right. Crypto exchanges find themselves walking a tightrope, don't they? Balancing the freedom of a decentralized currency with the moral obligation of not aiding and abetting the wrong crowd."
Host 2:Absolutely right. And did you realize, Binance had to cough up a substantial penalty of $4.3 billion for such dealings in the past? Quite the whirlwind they didn't anticipate!
Host 1:"Goodness, that's quite the tempest! And speaking of tempests, Ether's price has been on a wild rollercoaster ride, reaching a 20-month high. Hold on tight, crypto investors!"
Host 2:"It's akin to a thrilling amusement park ride, isn't it? But who knows how long the excitement will last. And have you caught wind of the news about Celsius Network? They're pulling off a Houdini act, emerging from bankruptcy and transitioning into a Bitcoin mining company. Quite the impressive turnaround, wouldn't you say?"
Host 1:"Oh, that's some genuine crypto sorcery! But do keep in mind, old chap, that the authorities are keeping a keen eye on these mining outfits, particularly their electricity consumption. No more slipping through the net, eh?"
Host 2:"Indeed, it seems our German friends may soon be able to dabble in crypto while enjoying their pretzels, thanks to DZ Bank's proposed pilot retail crypto trading service! Quite the fusion of finance and snack time, wouldn't you say?"
Host 1:"Quite the intriguing development, isn't it? Bybit is making moves to obtain a license in Hong Kong for offering crypto trading services to retail investors. Anyone fancy a one-way ticket to Hong Kong for some crypto action?"
Host 2:Ha! Let's delve into these stories a bit further, shall we?
Host 1:"Keeping abreast of the latest in the crypto world, are we?"
Host 2:"Ah, you know me, always staying ahead of the curve when it comes to the latest tech trends. What's the latest buzz?"
Host 1:"Seems like Binance, the world's largest crypto exchange, has found itself in another spot of bother. This time, they're facing a lawsuit from families of individuals who were unfortunate victims of attacks by the Palestinian militant group Hamas."
Host 2:"Indeed, I've caught wind of that. It seems this lawsuit marks the first civil case specifically targeting Hamas and its alleged networks, doesn't it?"
Host 1:"Indeed, the plaintiffs are none too pleased with Binance. They're representing the family members of a woman held captive by Hamas in Gaza, as well as the relatives of two men who tragically lost their lives during the group's attacks. Their accusation is that Binance allowed Hamas to conduct trades on its platform, thereby allegedly funding the group's violent activities and aiding in the recruitment of individuals to carry out these nefarious deeds."
Host 2:"Indeed, isn't it rather ironic? Binance did acknowledge allowing terrorist groups to carry out crypto transactions on their platform just a few months back, didn't they?"
Host 1:Indeed, they did. In the midst of a regulatory and criminal inquiry in the U.S., Binance openly admitted to facilitating transactions for groups such as Hamas, Al Qaeda, and the Islamic State of Iraq and Syria on its platform.
Host 2:"And they found themselves coughing up a substantial penalty for that, didn't they?"
Host 1:"Goodness, that's quite the tempest! And speaking of tempests, Ether's price has been on a wild rollercoaster ride, reaching a 20-month high. Hold on tight, crypto investors!"
Host 2:"Quite the financial hit, indeed. And did you hear about the trouble that befell their co-founder, Changpeng Zhao? Quite the stormy weather over at Binance, isn't it?"
Host 1:"Quite the scandalous turn of events, I must say. The chap was given the old heave-ho as CEO, slapped with a hefty $50 million penalty, and instructed to keep his distance from Binance's management for a good three years. Confessed to flouting anti-money laundering regulations and sanctions in the good ol' U.S. Quite the pickle, wouldn't you agree?"
Host 2:"And he's potentially looking at a stint of up to 10 years behind bars, isn't he?"
Host 1:"Ah, but according to the plea deal, he's not expected to receive more than 18 months. His sentencing hearing is set for Feb. 23."
Host 2:Quite a hefty serving of news to process, isn't it? It's a stark reminder that even in the realm of crypto, one cannot evade the far-reaching grasp of the law.
Host 1:"Quite right. It serves as a poignant reminder that regulations and laws extend their reach into every corner, even the digital realm."
Host 1:"Have you been keeping an eye on the tumultuous journey of Ether's price lately, our resident tech guru?"
Host 2:"Absolutely! It's been more exhilarating than a rollercoaster ride, hasn't it? For those not in the know, Ether is the second-largest cryptocurrency and it's been on quite the seesaw. In January, it even soared to a 20-month high of $2,712. That's the first time it has surpassed the $2,700 mark since May 2022."
Host 1:"Quite the impressive surge, wouldn't you say? But it wasn't long before it came back down to earth, did it?"
Host 2:"No, it didn't. It concluded January at around $2,200, more or less where it commenced the month. But do recall, its pinnacle was in November 2021, soaring to a staggering $4,891."
Host 1:That's quite the array of figures. But what's the significance behind it all? What's the rationale behind this sudden surge?
Host 2:"Ah, indeed! The surge occurred just a mere two days after the U.S. Securities and Exchange Commission, or the SEC, greenlit all 11 Bitcoin ETF applications. This certainly sparked a wave of optimism regarding the pending Ether ETF applications."
Host 1:"So, the approval of Bitcoin ETFs could potentially pave the way for Ether ETFs as well, don't you think?"
Host 2:"Indeed, there's a glimmer of hope. However, the titans of the industry hold divergent views on the SEC's forthcoming decisions regarding these eagerly awaited funds. Take, for instance, the analysts at Standard Chartered, the esteemed banking behemoth hailing from the U.K. They are prognosticating that the SEC will give the nod to the pending Ether ETF applications come May. What's more, they're even suggesting that Ether's value could soar past the $4,000 milestone in the wake of these approvals."
Host 1:"That's rather optimistic! But I daresay not everyone is of the same mind, are they?"
Host 2:"Absolutely spot on. TD Cowen, the investment bank, holds a rather different perspective. They're of the belief that the approval of Ether ETF applications in the U.S. may not come to fruition until late 2025 or early 2026."
Host 1:So, it's a rather intriguing waiting game, isn't it? But who do you reckon stands to benefit the most from these approvals?
Host 2:"Ah, indeed! There's quite the lineup of esteemed financial institutions eagerly anticipating the SEC's approval of their Ether ETF applications. We're talking about the heavyweights here - BlackRock, Fidelity Investments, Grayscale Investments, VanEck, Ark Invest, and 21Shares. Quite the star-studded cast, wouldn't you say?"
Host 1:"Well, this is bound to unfold into quite the intriguing spectacle. Much obliged for the update!"
Host 1:"Given your expertise in the realm of cryptocurrencies, let's shift our focus from Ether and delve into the latest saga involving the defunct crypto lender, Celsius Network. What's the latest on that front, old chap?"
Host 2:"Ah, you always have a knack for uncovering the most intriguing tales! So, it appears that Celsius Network, once a prominent figure in the world of crypto lending, has successfully emerged from bankruptcy. This development follows an overwhelming 98% approval from the company's creditors for the proposed restructuring plan."
Host 1:"Quite the overwhelming majority, I must say. So, what's on the horizon for them? Perhaps a foray into the world of artisanal pastries or some such endeavor?"
Host 2:(laughs) Not quite. They're set to reimburse $3 billion in crypto and fiat currencies to their creditors. And here's the twist - they're transitioning into a new Bitcoin mining enterprise known as Ionic Digital.
Host 1:"That's quite the change in direction! And pray, who shall be at the helm of this new endeavor? I do hope it's not a robotic contraption."
Host 2:"Ah, quite right, not a robot, I assure you. The freshly minted crypto mining venture will be in the possession of Celsius Network's creditors. They shall be granted a share in the enterprise, and its activities shall be supervised by the U.S.-based mining firm Hut 8. Remarkably, Matt Prusak, the chief commercial officer at Hut 8, shall also assume the mantle of CEO at Ionic Digital."
Host 1:"So, it's akin to a magnificent phoenix rising from the ashes, but with a fresh face at the helm. What about the stock? Will it be publicly traded, or are we venturing into the realm of clandestine societies?"
Host 2:"No clandestine societies here, I assure you. The forthcoming company's shares are anticipated to be publicly traded on an exchange once they secure the requisite regulatory approvals."
Host 1:"And what of the creditors? How do they stand to reclaim their funds? Will they stumble upon a pot of gold at the end of the rainbow, perhaps?"
Host 2:"Ah, not precisely a pot of gold, I'm afraid. However, Celsius Network has augmented the pool of crypto available for disbursement to creditors by approximately $250 million. This was achieved through the conversion of their altcoins into Bitcoin and Ether, as well as through previous settlements. The allocated funds will be disbursed to the creditors via PayPal, Venmo, and Coinbase."
Host 1:"That's an impressive amount of capital in motion. And what fate awaits the former Celsius Network? Will it languish as a virtual ghost town, I wonder?"
Host 2:"They're in the process of winding down their operations and will be closing their mobile and web applications at the end of February. Users have until Feb. 28 to submit their claims through a form on Celsius Network's applications in order to withdraw their funds from the platform."
Host 1:Indeed, quite the saga. It all commenced with their bankruptcy filing back in July 2022, did it not?
Host 2:Indeed, they sought Chapter 11 bankruptcy protection owing to a debt exceeding $1.2 billion. Primarily, this stemmed from liquidity challenges exacerbated by the downturn in the crypto market, catalyzed by the collapse of the multi-billion-dollar Terra ecosystem.
Host 1:"And wasn't their CEO, Alex Mashinsky, apprehended? Has he managed to secure a 'get-out-of-jail-free' pass?"
Host 2:"Indeed, he found himself in the custody of U.S. law enforcement agencies in connection with the collapse. He maintained his innocence and was granted release on a $40 million bond while awaiting trial, scheduled for September of this year. Quite the tumultuous journey, wouldn't you say?"
Host 1:"Absolutely riveting! It's unfolding like a real-life crypto thriller, isn't it? Anticipation is mounting, and I'm sure our esteemed listeners are just as eager as we are to witness the next chapter in this intriguing saga."
Host 1:"Did you hear about the U.S. Energy Information Administration, or EIA? It appears they're about to make their grand entrance into the Bitcoin realm, joining the ever-growing party."
Host 2:"Ah, indeed? Are they venturing into the realm of Bitcoin acquisition now, I wonder?"
Host 1:"Not quite. They're rather fixated on the energy aspect. The EIA has made it known that they're embarking on the task of monitoring electricity consumption and power usage by crypto mining firms in the United States. This directive stems from an urgent data collection appeal put forth by the Office of Management and Budget, which falls directly under the executive office of the U.S. President."
Host 2:"Quite the audacious move, I must say. So, are they poised to commence a survey next week, inquiring of Bitcoin mining firms about their energy consumption? It's almost as if they're endeavoring to chart the terrain of crypto mining in terms of energy utilization."
Host 1:"Quite so. They're keen to ascertain the evolving power demand for crypto mining, the geographical concentration of mining growth across the nation, and the specific power resources utilized in these mining operations. Quite the comprehensive endeavor, I must say."
Host 2:"Quite intriguing, isn't it? Not entirely unexpected, given the environmental ramifications of crypto mining."
Host 1:Absolutely spot on. Last year, the Rocky Mountain Institute calculated that global Bitcoin mining operations consume more electricity annually than the entire country of Norway. Quite the staggering revelation, wouldn't you agree?
Host 2:"Quite astonishing, isn't it? The concern extends beyond mere energy consumption to the rather significant issue of carbon emissions stemming from these mining operations. It's a matter of grave consequence for our environment, I dare say."
Host 1:Absolutely. It appears that the Biden administration is contemplating the imposition of a 30% federal tax on all electricity usage for digital asset mining.
Host 2:"Indeed, that's a rather intriguing approach to the matter. It shall be quite fascinating to observe the unfolding of events in this regard."
Host 1:"Quite so. For our esteemed listeners who may not be well-versed in the intricacies of the term, digital asset mining, or crypto mining, is the method by which new digital currency such as Bitcoin is introduced into circulation. However, it demands a substantial amount of computational power, and consequently, a significant amount of energy."
Host 2:"Indeed, it's always a pleasure to elucidate these intricate concepts for our esteemed audience. It's imperative to ensure that everyone can partake in the discourse, don't you agree?"
Host 1:Absolutely splendid. We're most eager to glean the thoughts of our esteemed listeners on this matter. What say you? Is the proposed tax a stroke of brilliance, or a misstep? We await your esteemed opinions!
Host 1:You know, we do have a penchant for keeping a close watch on the crypto landscape, don't we? And would you believe what's brewing over in Germany? DZ Bank, the heavyweight, ranking third in total assets, is all set to venture into the world of cryptocurrencies this year. Quite the intriguing development, wouldn't you say?
Host 2:"Ah, you've certainly captured my attention! Are we discussing the advent of a new retail crypto trading service, perchance?"
Host 1:Absolutely splendid! They're gearing up to offer retail customers the opportunity to buy and sell cryptocurrencies directly within the confines of the bank. However, here's the intriguing part - initially, they're only going to facilitate transactions involving Bitcoin.
Host 2:"Bitcoin, the granddaddy of the crypto world! But in the realm of crypto, it's akin to a box of assorted chocolates - you never quite know what you're going to get. My wager is that they shan't confine themselves to just Bitcoin."
Host 1:"Absolutely spot on! Souad Benkredda, a board member at DZ Bank, has made it quite clear that they have no intention of confining the service to just one cryptocurrency. Their plan is to broaden their horizons and extend support to a variety of cryptocurrencies in the near future."
Host 2:"Quite intriguing, I must say! But I'm rather curious, will the bank be providing any guidance to customers regarding the trading of these cryptocurrencies?"
Host 1:"An excellent inquiry! It appears that they are opting for a hands-off approach. The service will be entirely self-directed, allowing customers to engage in cryptocurrency trading without any guidance from the bank."
Host 2:Ah, the exhilarating ups and downs of the crypto roller coaster, all navigated solo! But, if memory serves me right, didn't DZ Bank put in an application for a license to provide crypto trading services some time back?
Host 1:"Absolutely spot on! They did indeed apply for a license with BaFin, Germany's financial market regulator, approximately eight months ago. And just this past November, they rolled out a crypto custody service tailored exclusively for institutional clients. Quite the strategic move, wouldn't you say?"
Host 2:So, it seems Germany has quite the burgeoning interest in the world of cryptocurrencies, doesn't it?
Host 1:"Indeed, not in the slightest! It appears that several other esteemed financial institutions in Germany, such as Deutsche Bank, Commerzbank, Deutsche Börse AG, and Stuttgart Stock Exchange, have either already initiated or announced their intentions to delve into the realm of cryptocurrency services. It's nothing short of a crypto revolution taking place over there!"
Host 2:"Marvelous! It's akin to a splendid gathering in the world of crypto, with an open invitation for all to partake in the revelry!"
Host 1:"Ah, my dear crypto aficionado, let's journey from Germany to Hong Kong. Care to hazard a guess at what's causing a stir in the crypto sphere over there?"
Host 2:"Ah, you've certainly captured my attention! Are we discussing the advent of a new retail crypto trading service, perchance?"
Host 1:"Ah, not quite! Bybit, a crypto exchange headquartered in Dubai, has recently submitted an application for a virtual asset trading operator license in Hong Kong. This endeavor is being pursued through their subsidiary, Spark Fintech Limited, with the aim of providing crypto trading services to retail investors in the region."
Host 1:"Absolutely! This new regime has opened the doors for retail investors to engage in trading major tokens such as Bitcoin and Ether on licensed platforms. The Securities and Futures Commission (SFC) has been actively considering applications from crypto exchanges since June last year as part of this progressive initiative."
Host 2:"Goodness, that's quite a substantial amount! And if memory serves me right, didn't the regulators in Hong Kong officially give the green light to the region's licensing regime for crypto exchanges back in May 2023, with the aim of transforming the area into a thriving crypto hub?"
Host 2:"Indeed, it appears that they're endeavoring to navigate the regulatory landscape with finesse. Quite a shrewd move, I must say. And if memory serves me right, this application was indeed submitted to the esteemed Securities and Exchange Commission of Hong Kong, correct?"
Host 1:"Absolutely! It shall be quite intriguing to observe the unfolding of events. And to our esteemed listeners, do keep in mind the age-old adage, 'Never put all your eggs in one basket.' It's imperative to diversify your investments, after all!"
Host 1:"Quite on form today, I must say! And for the benefit of our esteemed audience, it's worth noting that under Hong Kong's regulations, individuals with holdings exceeding a little over a million dollars are deemed as professional investors."
Host 1:"Indeed they are! However, it's rather intriguing to note that other prominent crypto firms, including OKX, HTX, and Amber Group, have also made it known that they intend to seek a license under Hong Kong's new regulatory framework."
Host 1:"Absolutely spot on! Bybit is of the firm belief that securing a license in Hong Kong will serve as a pivotal move in catering to the Asia Pacific region, owing to its strategic location and well-established financial infrastructure."
Host 2:Fascinating! If memory serves me right, this license is tailored for crypto firms to cater to retail customers, while the virtual asset service provider license is specifically designed for serving professional investors, isn't it?
Host 2:"Indeed, quite the sagacious advice! On that note, do join us in our next episode as we transport ourselves to yet another scintillating crypto hotspot. Stay tuned, won't you?"
Host 2:Quite a substantial number, indeed! And if I'm not mistaken, HashKey and OSL are the sole two licensed crypto exchanges in Hong Kong at present, are they not?
Host 2:"Indeed, it appears that Hong Kong is evolving into a veritable epicenter for crypto exchanges, wouldn't you say?"
Host 1:"They're presently scrutinizing 14 applications for virtual asset trading operator licenses, you know."
Host 2:"And pray, how many applications are they currently perusing?"