The United States military is embarking on a series of tests to explore the potential of generative artificial intelligence (AI) in aiding the planning of responses to global conflicts and enhancing access to internal information.
According to a recent report by Bloomberg on July 6, the U.S. Department of Defense, along with undisclosed allies, is conducting experiments involving five large language models (LLMs) in collaboration with the Pentagon’s digital and AI office.
Although the specific LLMs being tested remain undisclosed, AI startup Scale AI has revealed that its “Donovan” model is among the five under examination.
Air Force Colonel Matthew Strohmeyer shared with Bloomberg that an initial test utilizing an LLM proved to be “highly successful” and “very fast,” indicating the potential for this technology.
However, Strohmeyer acknowledged that it is not yet ready for widespread implementation.
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One notable test described by Strohmeyer involved an AI model generating a request for information in a mere 10 minutes, an unprecedented speed considering such requests traditionally take days and involve multiple personnel.
These LLMs have already been provided with classified operational data to generate responses for real-world scenarios.
The objective of the tests is to ascertain whether these models can effectively contribute to the planning of responses in the face of potential escalations, particularly concerning the already tense military situation with China.
While the current round of tests is scheduled to conclude on July 26, the U.S. military has been researching the potential applications of AI in warfare for some time.
In May, the Defence Science and Technology Laboratory of the United Kingdom hosted a joint trial involving the U.S. and Australia, focusing on AI-enabled military drones for target tracking.
The trial achieved significant milestones, including the real-time retraining of AI models during flight and the interchangeability of models among participating entities.
The agency expressed its commitment to swiftly integrating these technologies into military capabilities, signaling the growing interest and investment in AI within the defense sector.
As the U.S. military continues to explore the possibilities offered by generative AI, these tests mark an important step in leveraging advanced technologies to enhance operational efficiency and decision-making processes.
While challenges and limitations persist, the promising results thus far demonstrate the potential for AI to revolutionize the field of defense and security.
A trader’s substantial gamble against Ethereum has resulted in a significant loss of a large portion of his $2 million margin. This development is particularly concerning considering the steady and consistent increase in ETH prices observed in recent weeks.
Screenshots shared on Reddit on July 3 shed light on a trader’s aggressive “shorting” of Ethereum using high leverage on the GMX platform.
GMX is a popular decentralized finance (DeFi) protocol that enables users to trade perpetual futures contracts, including those tied to ETH, with leverage of up to 50x.
Despite enduring substantial losses due to forced liquidation of their short positions, the trader remains undeterred and continues to persistently engage in high-leverage shorting without apparent concern.
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Since mid-June 2023, Ethereum prices have experienced a notable rise, surging by 20% based on current rates. The coin is presently trading at around $1,945, floating above previous liquidation thresholds that were approximately $1,900.
While spot rates have not witnessed further upward momentum from buyers, the bulls still maintain control.
The immediate resistance level remains at the psychological price point of $2,000, in addition to the April 2023 highs at $2,100.
Ethereum’s upward trajectory has been fueled by fundamental activities and growing confidence within the broader cryptocurrency community.
The price correlation between Bitcoin and Ethereum, both denominated in USD, has likely benefited Ethereum bulls during this rally.
The United States Securities and Exchange Commission (SEC) recently made statements alleging that certain native currencies associated with Ethereum’s competitors, including Algorand, Cardano, and Solana, may be unregistered securities.
This development has potentially acted as a tailwind for Ethereum, solidifying its position as a leading smart contracts platform.
The SEC, led by Chair Gary Gensler, has refrained from definitively classifying the status of ETH.
Depending on the agency’s eventual classification, any clarification could either bolster prices or trigger a sell-off.
Despite Ethereum’s consistent rise over the past two weeks, records indicate that the trader began shorting ETH when it was priced around $1,700, persisting until current spot rates.
Notably, the trader intensified their aggressive short positions starting from June 26.
The trader opened two positions in total: one with a leverage of 19x for $12 million and another with a leverage of 7x for $1 million.
As prices continued to climb, the $12 million collateral for the 19x leverage position was closed. However, this did not deter the trader from opening yet another short position, this time with a stop set at $1,999 and leverage of 30x.
The future trajectory of ETH prices remains uncertain. However, it is evident that the coin’s price has remained firm, defying the sellers who were active from mid-April to the first half of June.
Moving forward, the critical price points of $2,000 and $2,100 will likely play a significant role in shaping ETH’s trajectory in the latter half of 2023.
Bankrupt crypto lender Celsius and its former CEO, Alex Mashinsky, have been found to have violated multiple United States regulations by investigators from the Commodity Futures Trading Commission (CFTC).
This revelation comes in the wake of the company’s collapse in 2022.
According to Bloomberg’s report on July 5, citing individuals familiar with the matter, the CFTC’s enforcement division attorneys discovered that Celsius engaged in misleading practices towards investors and failed to register with the regulatory body.
Additionally, Alex Mashinsky was found to have broken several regulations.
Should the majority of the CFTC commissioners concur with the investigators’ findings, the agency may initiate legal action against the defunct crypto lender in U.S. federal court as early as this month, as per insider sources.
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The CFTC investigators’ conclusions contribute to the growing list of regulatory actions taken against the now-defunct crypto lending platform.
On January 5, the New York Attorney General sued Mashinsky, accusing him of deceiving investors and causing substantial financial losses.
On June 16, 2022, securities regulators from five U.S. states launched an investigation into Celsius just three days after the sudden suspension of user withdrawals on June 13.
Court filings indicate that the Securities and Exchange Commission (SEC) and federal prosecutors from Manhattan have also commenced inquiries into the company.
However, Bloomberg highlights that both the SEC and the U.S. Attorney’s Office for the Southern District of New York have refrained from commenting on the investigations’ progress.
Cointelegraph reached out to both the CFTC and Alex Mashinsky for a response but did not receive any communication at the time of writing.
Lacoste, the renowned Parisian fashion brand, is at the forefront of the digital revolution, revolutionizing the way fans interact with their favorite brands.
Through their latest innovation, a captivating gaming experience called “The Mission,” Lacoste breathes new life into its iconic digital crocodile emblem, propelling its digital revolution to new heights and captivating audiences worldwide.
“The Mission” is divided into multiple chapters, running from June 29 to December 2023, each containing specific missions for players to complete.
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By successfully accomplishing missions, users earn points and climb the leaderboards, increasing the rarity of their UNDW3 cards in the process.
The higher the rarity, the greater the rewards, utility, and asset value for players.
Exceptional performers will be rewarded with digital vouchers, while the highest-ranking player at the end of the season will enjoy an all-expenses-paid Lacoste VIP experience in Paris.
Lacoste embarked on its journey into Web3, the next evolution of the internet, when it introduced the UNDW3 collection in June 2022.
UNDW3 comprises 11,212 Genesis Pass NFTs (nonfungible tokens), acting as digital “golden tickets” that provide loyal fans with enhanced access to the iconic brand within the Web3 community.
Building on the success of the UNDW3 collection, Lacoste aims to lead the fashion industry in dynamic NFTs by transforming genesis pass NFTs into UNDW3 Cards and introducing a unique Web3 gaming experience.
Starting on June 29, the UNDW3 community can immerse themselves in an interactive adventure through “The Mission,” where they undertake quests to unlock exclusive perks.
UNDW3 cardholders gain access to The Mission website, Lacoste’s gateway to the Web3 universe.
There, users can choose quests and engage with the community through UNDW3 social channels.
Lacoste has implemented a ranking system to track the Web3 activities of each player, fostering competition and engagement.
Lacoste believes that the future of brand loyalty goes beyond mere transactions.
The UNDW3 card celebrates a broader spectrum of brand engagement, encompassing creativity, conversation, and gaming.
By pioneering the concept of dynamic NFTs within the fashion industry, Lacoste solidifies its vision and takes a leading role in shaping the brand experience and loyalty programs of the future.
The introduction of NFTs has brought about a wave of innovation in the fashion industry.
Brands now have the opportunity to transform customers into active community members by providing real-world benefits through digital assets.
With UNDW3 cards, Lacoste is spearheading this paradigm shift, rewarding community members who actively participate in co-creation initiatives, gaming experiences, and conversations surrounding the brand.
To join “The Mission,” users can visit the official UNDW3 website and Discord, where they can engage in the exciting world of Lacoste’s digital revolution.
Lawmakers in the upper house of the U.K. Parliament are pushing ahead with legislation that aims to enhance authorities’ ability to target cryptocurrencies involved in illicit activities.
During a meeting held on July 4, members of the U.K. Parliament’s House of Lords conducted a third reading of the Economic Crime and Corporate Transparency Bill.
This bill, introduced in September 2022, seeks to empower law enforcement agencies in their efforts to combat financial crimes associated with cryptocurrencies.
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Notably, no significant proposals relating to crypto enforcement were put forward during the recent reading, with suggested amendments being described as minor adjustments.
A version of the bill dated June 27 contained provisions that amended existing frameworks to grant authorities more flexibility in seizing and recovering crypto assets.
Furthermore, the legislation clarified the government’s jurisdiction over digital assets intended for terrorism or other related purposes. Before the bill can be enacted through royal assent, U.K. lawmakers will carefully consider all proposed amendments.
In March, the U.K. government announced its plans to implement robust regulations for cryptocurrencies as part of its economic crime plan spanning 2023 to 2026.
Lawmakers expressed their intention to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023 and collaborate with various agencies to enforce the Financial Action Task Force’s Travel Rule.
Furthermore, on June 19, the House of Lords conducted a third reading of the Financial Services and Markets Bill, which was signed into law on June 29.
The primary objective of this legislation is to facilitate the adoption of crypto assets within the country, demonstrating the U.K.’s commitment to fostering an environment conducive to the growth and integration of digital currencies.
Overall, the U.K. Parliament’s efforts to enact legislation for the regulation of cryptocurrencies and combat financial crimes associated with them demonstrate a proactive approach to ensuring the integrity and security of the financial system.
By streamlining enforcement authorities’ powers and providing clearer guidelines, the U.K. is taking significant steps toward safeguarding against illicit use of cryptocurrencies while encouraging the responsible adoption of digital assets.
The Financial Conduct Authority (FCA) of the United Kingdom has made an announcement stating that all crypto asset firms targeting users in the country must adhere to its financial promotions regulations by October 2023.
In a series of letters dated July 4, the FCA outlined that beginning on October 8, companies operating in the UK will have four legal options to lawfully communicate promotions related to crypto assets.
These options include obtaining approval or communication from an authorized party, creating promotions through a business registered with the FCA, or ensuring that the promotion qualifies as exempt under the UK’s Financial Services and Markets Act.
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The FCA clarified that promotions encompass various forms such as websites, mobile apps, social media posts, and online advertisements.
It emphasized that these promotional activities, regardless of the company’s location, should not have a limited effect in the UK.
Jayson Probin, the crypto financial promotions lead at the FCA, warned in a LinkedIn post that non-compliance could result in criminal charges.
The FCA notice stated, “We will take robust action against persons illegally promoting to UK consumers.
This may include, but it is not limited to, placing firms on our warning list, requesting take-downs of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action.”
The FCA had initially announced the October deadline on June 8, urging crypto firms to adopt a marketing approach that allows customers a “cooling-off period” to consider the risks associated with digital asset investments.
Once firms submit the necessary registration information, the FCA estimated a processing time of up to three months to evaluate the applications.
Alongside complying with the marketing regime set by the regulator, companies must register with the FCA to engage in crypto asset activities within the United Kingdom.
As of now, the FCA has listed 42 registered crypto firms that meet its requirements, including Bitstamp, Revolt, MoonPay, and Galaxy Digital UK.
Singapore’s central bank, the Monetary Authority of Singapore (MAS), has unveiled new measures to enhance investor protection and market integrity within the cryptocurrency sector.
The MAS recently announced that crypto service providers will be required to hold customer assets in a statutory trust by the end of the year, effectively mitigating the risk of asset loss or misuse and facilitating asset recovery in the event of insolvency.
These custody measures were developed following a public consultation launched in October 2022, which aimed to identify regulatory measures to minimize risks associated with crypto trading.
The MAS received substantial interest from a diverse range of respondents during the consultation process.
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In response to the consultation, the central bank highlighted that a majority of respondents agreed that digital payment token service providers (DPTSPs) should be allowed to pool user assets in the same trust account.
However, some respondents argued that DPTSPs should be required to segregate each customer’s assets in separate blockchain addresses to enhance transparency and verification of holdings.
In addition to custody requirements, the MAS mandated that crypto companies perform daily reconciliation of customer assets and maintain accurate books and records.
DPTSPs must also ensure operational independence of the custody function from other business units and maintain access and operational controls to customers’ digital payment tokens in Singapore.
Furthermore, the MAS is considering a proposal to restrict crypto service providers from facilitating lending or staking of retail customers’ digital payment tokens, while allowing such activities for institutional and accredited investors.
Respondents offered varied suggestions, with some advocating for explicit consent and risk disclosures from retail customers, while others proposed a complete ban on these high-risk and speculative activities.
The MAS emphasized its commitment to monitoring market developments and consumer risk awareness, stating that it would take appropriate steps to ensure the ongoing balance and suitability of its regulatory measures.
These new investor protection measures aim to address industry incidents like the FTX implosion, which resulted in substantial losses for customers.
Furthermore, Singaporean firms were significantly impacted by the crypto lending crisis in 2022, with notable local entities, including Three Arrows Capital and Hodlnaut, going bankrupt during the bear market.
By implementing these measures, Singapore’s central bank seeks to bolster investor confidence and establish a robust framework that safeguards customers’ assets while promoting responsible practices within the cryptocurrency industry.
According to the CEO of Merkle Science, the United States will not lose its position as a crypto hub despite recent regulatory actions.
While many top crypto executives have started looking elsewhere due to hostile regulatory measures in the US, Mriganka Pattnaik believes that crypto activity will continue to thrive in the country, at least in the medium term.
Pattnaik argues that the US possesses a higher level of innovation and a deeper talent pool compared to regions like India, China, and the United Arab Emirates, which have strong consumer markets.
Pattnaik also points out the general market dynamics of the American economy, particularly the clarity around taxation, as key reasons why crypto firms are likely to maintain the bulk of their operations in the US.
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While recent actions by US regulators, such as the Securities and Exchange Commission’s actions against crypto firms, have led to a narrative of innovation moving offshore, Pattnaik believes that over time, regulations will become more moderate and provide greater clarity in the US.
However, not everyone shares this view. Binance Dubai general manager Alex Chehade argues that clear and consistent regulation is essential for large crypto firms, including those in the US, in order to have predictability, plan effectively, and budget accordingly.
Ripple CEO Brad Garlinghouse has also stated that the crypto industry has already begun moving outside the US, citing the country’s regulatory approach falling behind other crypto-friendly regions like Singapore, the UAE, and Switzerland.
Indeed, there have been instances of crypto firms exploring opportunities outside the US.
More than 80 firms from around the world applied for a crypto services license in Hong Kong, and Winklevoss-owned crypto exchange Gemini announced its pursuit of a crypto services license in the United Arab Emirates, citing hostility and a lack of clarity on crypto regulation in the US as the reason for the move.
While regulatory actions in the US have prompted some concerns and led to the exploration of alternative crypto-friendly regions, the CEO of Merkle Science believes that the US will remain a prominent crypto hub in the coming years.
The country’s innovation, talent pool, and market dynamics, along with the potential for regulatory moderation and increased clarity, contribute to its ongoing appeal for crypto firms.
However, the need for clear and consistent regulation remains a crucial factor for the success and growth of the industry.
According to a report by CoinShares, institutional investors have primarily concentrated on Bitcoin in the past two weeks as the cryptocurrency achieves new 2023 highs.
The research, led by James Butterfill, revealed Bitcoin-centric products accounted for $310.6 million of the total inflows in the past fortnight, marking a considerable 98% of all digital asset flows.
This is a significant shift following nine continuous weeks of outflows.
In 2023, this is the second instance where Bitcoin products composed 98% of total inflows into cryptocurrency investment vehicles.
The recent boost aligns with Bitcoin’s escalating price and market dominance.
The surge is widely attributed to the Bitcoin ETF application by BlackRock on June 15, followed by similar filings from Invesco, Fidelity, Wisdom Tree, and Valkyrie.
Since these submissions, Bitcoin’s price has seen a substantial increase of 25.2%, valued at $31,131.
Additionally, Bitcoin’s market dominance, gauged by its market cap compared to the total market cap of all cryptocurrencies, rose to 51.46%.
Contrastingly, Ethereum investment products registered inflows of $2.7 million last week, marking the second consecutive week of inflows and breaking a prolonged outflow trend.
Fireblocks CEO, Michael Shaulov, indicated in a conversation with Cointelegraph that institutional investors were interested in core assets like Bitcoin and Ether, but less enthusiastic about alternate cryptocurrencies.
Shaulov explained that the Ethereum narrative revolves around the likelihood of future tokenization ecosystems being based on Ethereum Virtual Machine (EVM).
This factor could boost Ethereum’s utility. However, for Bitcoin, the narrative is less defined, but most investors recognize the cryptocurrency’s essentiality in their portfolio.
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Cryptocurrency exchange Bittrex has taken a significant step in its legal battle against the United States Securities and Exchange Commission (SEC) by filing a motion to dismiss the case.
Bittrex’s argument centers around the claim that the SEC lacks the authority to regulate cryptocurrencies as securities unless specifically granted by Congress.
By challenging the SEC’s interpretation of existing securities regulations, Bittrex aims to establish a clearer regulatory framework that accommodates digital assets.
In a strategic move reminiscent of Coinbase, Bittrex has closely aligned its arguments with those of the larger cryptocurrency exchange.
This alignment suggests that Bittrex intends to leverage the robust legal framework established by Coinbase and construct a unified defense against the SEC’s lawsuit.
Similar to Coinbase, Bittrex’s legal team highlights what they perceive as deficiencies in the SEC’s allegations concerning the trading of investment contracts.
While both defendants acknowledge that the initial sale of certain crypto assets could be classified as securities contracts, they contend that this classification does not extend to assets traded on secondary markets.
Bittrex argues that once an asset is launched and actively traded on secondary markets, it should no longer be considered a security but rather categorized as a commodity or another class of digital asset.
Furthermore, Bittrex asserts that the SEC did not adequately convey that its actions were prohibited, employing a defense strategy commonly used by cryptocurrency defendants challenging the SEC’s allegations.
The legal dispute between Bittrex and the SEC originated in April when the SEC charged Bittrex and its co-founder, William Shihara, with operating an unregistered national securities exchange.
The complaint alleges that Bittrex facilitated the trading of digital assets that met the securities criteria outlined in U.S. federal securities laws without obtaining SEC registration as an exchange.
Additionally, the SEC charged Bittrex Global, the foreign affiliate of Bittrex, with failing to register as a national securities exchange in the same complaint.
Bittrex’s motion to dismiss represents a pivotal moment in its fight against the SEC.
By challenging the SEC’s authority and aligning its arguments with those of Coinbase, Bittrex aims to establish a more defined regulatory framework that accommodates the unique characteristics of digital assets.
The outcome of this legal battle will likely have significant implications for the cryptocurrency industry as a whole, as it could set a precedent for how cryptocurrencies are regulated in the United States.
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