A recent decision by a United States appeals court has revived a class-action lawsuit by investors against the cryptocurrency exchange Binance, challenging a previous dismissal by a lower court.
The United States Court of Appeals for the Second Circuit, on March 8, ruled in favor of the investors, overturning the district court’s dismissal of claims related to transparency issues in Binance’s sale of what are alleged to be securities.
The appeals court found the district court’s reasons for dismissal flawed, stating, “We hold that each of the district court’s bases for dismissing Plaintiffs’ claims that are before us on appeal was erroneous.”
The lawsuit, initiated in April 2020 by Chase Williams on behalf of similarly situated investors, accused Binance of engaging in the sale of securities without proper registration as a securities exchange or broker-dealer.
The plaintiffs are seeking to nullify contracts with Binance and demand damages for what they claim is a violation of Section 12(a)(1) of the Securities Act of 1933.
This violation pertains to Binance’s promotion, offer, and sale of crypto-assets or “tokens” that were allegedly not registered as securities, with the district court previously ruling the lawsuit as untimely based on statutes of limitations.
READ MORE: BNB Hits Two-Year High Amid Market Optimism – What Price Target is Next?
However, the appeals court has sided with the plaintiffs, asserting that Binance falls under U.S. securities laws and that the lawsuit was filed within an appropriate timeframe.
This legal reversal arrives amidst Binance’s ongoing legal battles with U.S. authorities.
Notably, the U.S. Securities and Exchange Commission (SEC) has faced criticism for its handling of inquiries regarding the custody of customer assets.
In June 2023, the SEC initiated a lawsuit against Binance, Binance.US, and its founder, Changpeng “CZ” Zhao, for the alleged sale of unregistered securities and commingling of customer assets in a separate entity controlled by Zhao.
Binance settled with the U.S. Department of Justice in November 2023 for $4.3 billion over charges of money laundering and violating terrorism financing laws.
Zhao, having pleaded guilty to money laundering charges, is scheduled for sentencing in April.
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The CEO of ARK Invest, Cathie Wood, has made a bold prediction regarding Bitcoin’s future, suggesting that the cryptocurrency will reach a value of $1 million much sooner than the initially forecasted year of 2030.
In an interview with the New Zealand Herald on March 7, Wood shared her insights, citing “new expectations for institutional involvement” as a key driver behind Bitcoin’s potential price surge.
Wood emphasized that the advent of the United States’ first spot exchange-traded funds (ETFs) has marked a significant transformation for Bitcoin.
Her confidence in Bitcoin’s future has only intensified, spurred by the momentum and interest surrounding these spot ETFs.
This has led ARK Invest to reassess its stance on Bitcoin, shifting its price target ahead of the previously predicted timeline.
According to Wood, the approval of spot ETFs by the Securities and Exchange Commission (SEC) was a pivotal milestone that has accelerated the cryptocurrency’s ascent toward the $1 million mark.
READ MORE: Consensys-Backed Transak Achieves System and Organization Controls (SOC) 2 Type 2 Compliance
Despite the enthusiasm, Wood pointed out that major financial institutions, such as Morgan Stanley, Merryl Lynch, or Bank of America, have yet to endorse Bitcoin.
However, she believes that the current price movement precedes their potential approval, suggesting that Bitcoin’s valuation could climb even higher once these platforms come on board.
Wood hinted that the revised target price for Bitcoin exceeds the $1 million mark, reflecting her optimistic outlook fueled by anticipated institutional participation, though she did not specify an exact figure.
As Bitcoin approaches new all-time highs, the market braces for a “wild week,” according to James Van Straten, a research and data analyst at CryptoSlate.
Traders and analysts anticipate continued price discovery, driven by ongoing ETF inflows.
Van Straten highlighted the critical moment if Bitcoin surpasses the $70,000 threshold before potential turbulence at Coinbase, the largest U.S. exchange.
This period is seen as crucial for determining Bitcoin’s true market value, especially after recent records saw BTC/USD trading at approximately $69,500.
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Transak, a leading Web3 payment onboarding infrastructure provider supported by notable entities such as Consensys, UOB of Singapore, SBI Holdings, and Sygnum, has recently marked a significant achievement by obtaining SOC 2 Type 2 compliance.
This certification comes after an extensive and rigorous audit process, underscoring Transak’s commitment to the highest standards of data security, privacy, and trust for its customers. The firm’s accomplishment sets a new precedent in the crypto space, establishing it as the first crypto on- and off-ramp infrastructure provider worldwide to meet this level of compliance.
SOC 2 Type 2 compliance is critically important for providers handling sensitive personal and financial information, necessitating adherence to the strictest global regulatory requirements to mitigate cyber risks and maintain user trust.
This certification is crucial for fostering collaborations between Web2 companies and the emerging Web3 sector. Historically, hesitation from established organizations to enter Web3 has been noted, primarily due to concerns over compliance and security standards.
However, Transak’s compliance achievement now enables partnerships with some of the largest and most stringently regulated companies across various industries, including technology, cloud services, finance, and healthcare.
This milestone not only enhances Transak’s reputation but also serves to improve the overall image of the Web3 industry as compliant and secure, encouraging other startups to follow suit. The SOC 2 Type 2 audit required a thorough examination of Transak’s technology platforms, processes, policies, and controls, ensuring they adhere to rigorous global standards for data privacy and protection.
Further bolstering its commitment to security, Transak also recently achieved ISO/IEC 27001:2022 certification, indicating the highest compliance level for information security management systems.
This, along with SOC 2 Type 2 compliance, reassures partners in both Web2 and Web3 spaces of Transak’s enterprise-grade security measures, such as 256-bit SSL encryption and advanced identity verification protocols.
Transak’s CEO, Sami Start, highlighted the significance of this compliance, reflecting the company’s dedication to safeguarding customer data. Since its inception in 2019, Transak has prioritized data security, privacy, and transparency, facilitating the smooth transition from traditional finance to digital assets. Through its API, decentralized applications can integrate Transak’s platform, enabling users in over 160 countries to buy and sell digital assets like Crypto and NFTs, while simplifying KYC, risk monitoring, and compliance processes. This achievement reinforces Transak’s position as a secure and compliant bridge to Web3, with numerous licenses and certifications across the U.S., U.K., India, Poland, and the EU.
Ethena has emerged as a leader in the decentralized application (DApp) space, setting a remarkable milestone with over $6.8 million in daily cumulative revenue in the past week, as revealed by Seraphim Czecker, the Head of Growth at Ethena Labs, on a March 8 X post.
This achievement places Ethena just behind the blockchains Tron and Ethereum, which recorded daily revenues of $38.6 million and $182.5 million respectively over the same period.
The platform is gaining attention for offering a significant 67.2% yield on its USDe synthetic dollar, attracting over 350,000 users.
The value of USDe has seen a substantial increase, with its market cap surging by 43% in the last week and an impressive 409% over the past month, reaching $840 million according to data from DefiLlama.
Ethena Labs introduced its USDe synthetic dollar to the public mainnet on February 19, amidst concerns from investors given its high 27.6% annual percentage yield (APY) — considerably higher than rates previously seen in the industry.
This launch came after the notable collapse of the TerraUSD (UST) algorithmic stablecoin and its associated Anchor Protocol, which had offered a 20% yield before its downfall in May 2022.
READ MORE: Candy Token Crashes Over 87% Following $2.9 Million Rug Pull from Lena Network
Addressing concerns about the high yield of USDe, Guy Young, the founder of Ethena Labs, in a Cointelegraph interview on February 22, highlighted the industry’s evolution post-Terra’s collapse.
Young emphasized the importance of skepticism and due diligence, stating, “The immediate reference to Terra Luna was just a knee-jerk reaction which people had to the yield itself […] It’s right that people responded in the way that they have because we should be responding with skepticism and trying to work out whether [protocols] are fragile in the beginning rather than letting them get too big if they are.”
He further differentiated USDe from the failed Anchor protocol by pointing out that USDe’s yield generation mechanisms, including staking returns and shorting Ether perpetual future contracts, are publicly verifiable.
The development of Ethena’s synthetic dollar has been supported by substantial funding, with a recent $14 million investment round backed by Dragonfly.
This followed an earlier $6 million investment round in 2023, featuring prominent backers such as Binance Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit, showcasing strong investor confidence in the platform’s potential and innovation in the decentralized finance (DeFi) space.
U.S. energy officials have come to terms with the Texas Blockchain Council (TBC) and Riot Platforms, a Bitcoin mining company, to halt its proposed emergency survey targeting cryptocurrency miners nationwide.
In a filing dated March 2, it was disclosed that the U.S. Department of Energy, along with the Energy Information Administration (EIA) and the Office of Management and Budget (OMB), has reached an agreement with TBC and Riot to discontinue the collection of information from crypto miners for the proposed three-year emergency survey filed under the “EIA-862 Emergency Collection Request.”
The agreement stipulates that all previously gathered information from crypto miners, which was deemed intrusive by TBC and Riot, will be deleted, and any future data collected will also be discarded.
The settlement effectively terminates the temporary restraining order, which was initially slated to remain in effect until March 8.
Earlier, on Feb. 23, it was reported that the court had temporarily halted the U.S. energy regulators from gathering data while the lawsuit was ongoing.
READ MORE: Bullish Bitcoin Signals Point to Potential $180,000 Price Surge, Analysts Say
This decision followed arguments from TBC and Riot, convincing the judge that irreversible harm would occur without ceasing further data collection.
The plaintiffs contended that the survey could result in non-recoverable compliance costs, a credible threat of prosecution for non-compliance, and the disclosure of proprietary information.
While the EIA estimated that the survey would take approximately 30 minutes to complete, the court deemed this estimation “extremely inaccurate.”
TBC and Riot challenged this estimate, claiming that the compliance cost had already exceeded 40 hours.
However, both parties have consented to allowing the EIA to issue a new notice soliciting public feedback for a period of two months regarding the information it is permitted to collect.
“Defendants agree that EIA will allow for submission of comments for 60 days, beginning on the date of publication of the New Federal Register Notice,” the filing stated.
A significant move has shaken the crypto market as a whale relinquishes a substantial portion of their PEPE investment in favor of Shiba Inu’s native token, SHIB.
According to Lookonchain, a blockchain analytics platform, an anonymous crypto whale has strategically shifted their investment focus.
Previously heavily invested in the frog-themed PEPE token, the whale has now redirected their holdings towards SHIB, a move that has caught the attention of the crypto community.
The analytics platform revealed that the whale deposited a staggering 1.97 trillion PEPE tokens, valued at over $6.07 million, into Binance.
This strategic maneuver resulted in a profit of $3.49 million, exceeding half of their initial $6 million investment in PEPE.
Following this massive PEPE deposit, the whale acquired approximately $75.9 billion SHIB, worth $893 million, from Binance, transferring it to an undisclosed crypto wallet.
This shift underscores the whale’s confidence in SHIB’s potential, sparking speculation about future gains for the meme-inspired cryptocurrency.
Interest in SHIB has surged in recent times, with investors eyeing substantial returns. In January 2024, SHIB whale transactions spiked by over 1300%, indicating a growing demand for the dog-themed token.
While the motivations behind these large-scale transactions remain undisclosed, such whale activities often trigger price rallies within the cryptocurrency market.
READ MORE: Chainalysis Report Reveals Surge in Darknet Market Revenue Amidst Crypto Crime Landscape
The broader crypto community is closely monitoring the impact of these developments on SHIB’s dynamics.
SHIB’s price has experienced remarkable gains, with a nearly 60% increase in the past 24 hours, trading at $0.000020 at the time of writing.
Over the last seven days, SHIB has surged by an impressive 113.83%, driven by successful SHIB burns and the expansion of its ecosystem and community.
With a market capitalization surpassing $11 billion and a 24-hour trading volume exceeding $4 billion, SHIB continues to attract attention.
Derivatives data indicates a potential uptrend for SHIB, with a 74.06% rise in open interest and a 220.54% surge in volume, highlighting the token’s strength and prominence in the cryptocurrency market.
Bitcoin, the inaugural cryptocurrency, experienced a 3.79% surge in the 24-hour period preceding 8:20 am UTC, reaching a trading value of £58,504, marking its highest point in two years and three months.
According to data from CoinMarketCap, Bitcoin has seen an increase of over 13.5% on the weekly chart and more than 38% on the monthly chart.
This surge in Bitcoin’s price follows the recent announcement that Michael Saylor’s MicroStrategy had purchased an additional 3,000 BTC, totalling $155 million at an average price of $51,813 between Feb. 15 and 25.
With a cumulative acquisition of 193,000 BTC for $6.09 billion at an average price of $31,544, MicroStrategy stands as the largest Bitcoin holder among publicly traded companies.
Founder of the digital asset investment fund ARK36, Mikkel Morch, attributes MicroStrategy’s recent acquisition as the driving force behind this rally. Morch stated in a research note shared with Cointelegraph:
“This rally is not merely reflected in numbers on a chart; it signifies the confidence among institutional investors in the transformative potential of cryptocurrencies…
Additionally, the approval for Bitcoin-owning ETFs in the United States has infused a new wave of positivity, increasing trading volumes and bringing crypto-linked firms into focus amidst a broader market overshadowed by uncertainty.”
Over the past 24 hours, the total crypto market capitalization has risen by 2.85% to £2.19 trillion.
READ MORE: Grayscale’s Bitcoin ETF Records Record Low Outflows Amidst Rising Market Momentum
On Feb. 27, the industry reclaimed the £2-trillion market capitalization as Bitcoin surpassed £57,000, boosted by inflows into Bitcoin exchange-traded funds (ETFs) and an uplift in crypto investor sentiment.
Morch predicts the potential for a new all-time high for both Bitcoin and Ether (ETH) in the coming weeks, driven by the anticipation surrounding the upcoming Bitcoin halving and the potential approval of a United States spot Ether ETF. He elaborated:
“The excitement surrounding the approval of spot Ether ETFs further highlights the maturity of the cryptocurrency market, acknowledging Ethereum’s role not only as a digital currency but also as an infrastructure backbone for a future where finance and technology converge more seamlessly.”
The nine spot Bitcoin ETFs recorded a combined trading volume of over $2 billion for the second consecutive day on Feb. 28.
United States Senator Elizabeth Warren has emphasised the need for a fair regulatory framework for cryptocurrency and advocated for restrictions on Big Tech’s development of artificial intelligence (AI) models.
Warren restated her stance on cryptocurrency, expressing her desire “to collaborate with the industry” during a Bloomberg Television interview on February 27.
“In our financial system, pretty much everybody follows the same set of rules,” she remarked, further stating:
“My view is that it’s the same kind of activity, the same kind of risk, and should have the same kind of regulations […] I’m not looking for fancier regulations or anything tougher; I just want a level playing field.”
However, she lamented that collaboration efforts had been hindered, alleging that the industry claims the only way “they can survive” is if there’s “plenty of space” for criminal activity — citing ransomware scammers, drug and human traffickers, and terrorists as among those the crypto industry seeks concessions for.
Warren’s proposed legislation, the Digital Asset Anti-Money Laundering Act, seeks to categorise decentralized technologies like blockchain nodes, validators, noncustodial wallets, and software providers as financial institutions akin to banks and stock brokers.
READ MORE: British Bitcoin ETFs Break Daily Trading Record Amidst BTC Surge
Criticism of the bill from crypto industry figures, organisations, and associations has been vocal, with concerns raised about its suitability for the technology and its potential to drive innovation and investment abroad.
The U.S. Treasury Department has acknowledged that assertions regarding crypto’s use in terrorism were exaggerated.
During a conference in Washington D.C., Warren reiterated her desire to curb the development of AI large language models by major tech players such as Microsoft, Google, and Amazon.
“Each of the major cloud services — Google, Microsoft, and Amazon — should not be allowed to use their enormous size to dominate a whole new field, and that means blocking them from operating large language models,” she asserted.
Warren argued that Big Tech firms possess the resources and infrastructure to monopolise emerging AI sectors like chatbots, potentially stifling smaller competitors.
She portrayed this as a fresh battleground in her crusade against Big Tech’s dominance and concentration within the industry.
Michael Saylor has affirmed his steadfast commitment to holding onto Bitcoin, despite his company MicroStrategy’s holdings swelling to an unrealised profit of almost $4 billion.
“I’m going to be buying the top forever. Bitcoin is the exit strategy,” Saylor declared in an interview with Bloomberg on Feb. 20, when queried about the possibility of his firm selling its stash of 190,000 BTC — presently valued at approximately $9.88 billion.
Presenting his bullish argument for Bitcoin, Saylor asserted that the cryptocurrency is “technically superior” to gold, the S&P 500, and real estate, notwithstanding the significantly larger market capitalisations of these asset classes compared to Bitcoin’s $1 trillion.
“We believe capital is going to keep flowing from those asset classes into Bitcoin,” he remarked. “Bitcoin is technically superior to those asset classes.
And that being the case, there’s just no reason to sell the winner to buy the losers.”
MicroStrategy, a business intelligence software firm, made headlines as the first publicly traded company to begin accumulating Bitcoin in 2020.
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The 190,000 BTC it held as of the fourth quarter of 2023 were acquired at an average price of $31,224 each, resulting in a total investment cost of $5.93 billion.
Data from HODL15Capital indicates that United States-based spot Bitcoin exchange-traded funds (ETFs), excluding the Grayscale Bitcoin Trust (GBTC), collectively hold an estimated 270,000 BTC as of Friday, Feb. 16.
Saylor highlighted the demand for Bitcoin, driven by an increasing appetite for ETF products, which has exceeded the supply from miners, sometimes by “10 times as much.”
Nevertheless, he dismissed concerns that ETFs might impede MicroStrategy’s ability to acquire Bitcoin, stating that the company employs a “levered operating strategy” for investing in the digital asset.
“The spot ETFs have opened up a gateway for institutional capital to flow into the Bitcoin ecosystem,” Saylor explained.
“They’re facilitating the digital transformation of capital, and every day, hundreds of millions of dollars of capital is flowing from the traditional analog ecosystem into the digital economy.”
“This is a rising tide. It’s going to lift all boats,” he concluded.
Cryptocurrency exchange Backpack has forged a partnership with global crypto on-ramp provider Banxa, unveiling a digital asset on- and off-ramp solution.
According to Banxa’s announcement on X, Backpack users in over 130 countries will now have access to this new on-ramp solution.
Backpack Exchange, birthed by the minds behind Solana’s Mad Lads executable nonfungible token (NFT) collection, initiated this collaboration.
Anndy Lian, an intergovernmental blockchain expert and author of the book NFT: From Zero to Hero, hailed the partnership as a boon for Backpack users and their overall exchange experience. He conveyed to Cointelegraph:
“[The partnership] enables Backpack users to easily buy and sell crypto with fiat currencies using various payment methods, such as credit cards, bank transfers, and e-wallets.
This will help increase the adoption and liquidity of Backpack and its supported tokens.”
The announcement follows Backpack’s impressive achievement of surpassing $1 billion in 24-hour trading volume on Feb. 18, just four days into the launch of its trading pre-season.
Notably, Backpack had already exceeded $300 million in daily trading volume within 24 hours on Feb. 15.
With the trading volume rapidly escalating, Armani Ferrante, Backpack’s founder and CEO, issued a word of caution on X, advising traders against getting overly excited, which might lead to detrimental trades:
“This is a long-term program for our long-term users, and I’d like to encourage people to trade responsibly. We have a lot to build, and the pre-season just got started.”
READ MORE: Ether Price Surge Continues: Approaching $2,800 Mark Amidst Optimism and Caution
Having obtained a virtual asset service provider license from the Dubai Virtual Assets Regulatory Authority in October 2023, Backpack Exchange also secured numerous operational licenses across various jurisdictions worldwide in the latter half of 2023.
Currently, Backpack’s SOL/USDC trading pair reigns supreme as the most traded Solana spot trading pair globally, boasting over $890 million in 24-hour trading volume.
Binance’s SOL/USDT trails in second place with $362 million in 24-hour volume, followed by Bybit’s $13.7 million SOL/USDC pair in third.
SOL experienced a 1.71% rise in the 24 hours leading up to 10:25 am Central European Time, trading at $112.25, as per CoinMarketCap data. SOL maintains its position as the fifth-largest cryptocurrency by market cap, having briefly surpassed Binance’s BNB token on Feb. 13.