Google, the tech giant, is set to update its advertising policy related to cryptocurrencies, allowing advertisements for cryptocurrency trusts targeting the United States starting from January 29, 2024.
This policy shift aligns with predictions that spot Bitcoin exchange-traded funds (ETFs) will gain approval in the United States in the same month.
In a policy change log dated December 6, Google clarified that it will permit advertisements from “advertisers offering Cryptocurrency Coin Trust targeting the United States.”
Cryptocurrency coin trusts refer to financial products that enable investors to trade shares in trusts holding significant amounts of digital currency, possibly including ETFs.
Google emphasized that all advertisers must adhere to local laws in the areas where their ads are targeted.
This updated policy will apply globally to all accounts advertising these cryptocurrency-related products. To advertise crypto trusts, potential advertisers must be Google-certified, which necessitates having the appropriate license from the relevant local authority.
Their products, landing pages, and ads must also comply with the legal requirements of the specific country or region they wish to target.
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It’s worth noting that Google already permits advertising for certain cryptocurrency and related products but excludes ads for crypto or nonfungible token (NFT)-based gambling platforms, initial coin offerings (ICOs), decentralized finance (DeFi) protocols, and services offering trading signals.
This policy adjustment is timely, as Bloomberg’s ETF analysts have assigned a 90% probability of a U.S. spot Bitcoin ETF receiving approval by January 10, 2024.
Multiple pending ETF applications could potentially be approved simultaneously. Currently, there are 13 Bitcoin ETF applicants, and detailed information about their approval processes remains limited.
Several prominent fund managers, such as BlackRock, Grayscale, and Fidelity, have reportedly engaged with the U.S. Securities and Exchange Commission to discuss critical technical aspects of their ETF proposals.
The cryptocurrency market anticipates these approvals with enthusiasm, as Bitcoin has surged by nearly 74% in the past 90 days. Analysts even predict the possibility of a new all-time high for Bitcoin in 2024.
This shift in Google’s advertising policy aligns with the evolving landscape of cryptocurrency investments and reflects the growing interest in digital assets among investors.
After a devastating exploit on November 22nd, crypto investors have been rapidly withdrawing their assets from the cryptocurrency exchange formerly known as Huobi, now rebranded as HTX.
This breach resulted in the exchange suspending its services and incurring losses amounting to $30 million.
In the aftermath, between November 25th, when HTX resumed its services, and December 10th, a staggering $258 million in net outflows were recorded, as per data sourced from DefiLlama.
DefiLlama’s data further reveals that HTX’s reserves are comprised of 32.3% Bitcoin and 31.8% Tron (TRX), which is the native currency of the Tron network, established by Justin Sun in 2017.
Despite the turmoil, HTX, as of the time of this report, remains the 16th largest cryptocurrency exchange in terms of daily trading volume, boasting a total trading volume of $1.6 billion over the last 24 hours, according to CoinMarketCap.
In a bid to reassure affected HTX users, Sun, the founder of Tron, pledged full compensation for losses incurred from the hot wallet breach and assured the public that an investigation was already in progress.
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Sadly, this incident was not an isolated event for HTX and related entities under the Sun umbrella. Over the past two months, they have been plagued by a total of four hacks.
The initial breach occurred shortly after the exchange’s rebranding to HTX on September 24, 2023, with an unknown assailant making off with nearly $8 million in cryptocurrency.
The most significant of these breaches was the $100 million exploit that targeted the Poloniex exchange on November 10th, attributed to a compromise of private keys.
Another substantial breach hit HTX’s HECO Chain bridge on November 22nd, where hackers compromised the bridge and funneled at least $86.6 million to suspicious addresses.
November 2023 was a bleak month for the cryptocurrency world, witnessing a surge in theft as malicious actors pilfered a total of $363 million in ill-gotten digital assets.
Cointelegraph reached out to HTX for a statement, but at the time of reporting, no response had been received.
These ongoing security breaches have cast a shadow of doubt over the safety and trustworthiness of the HTX exchange and related platforms, prompting investors to move their assets elsewhere.
Cyvers, a prominent blockchain security firm, recently uncovered a suspicious movement of $50 million in HAXcoin (HXA), the native utility token of the Herencia Artifex nonfungible token (NFT) project.
This significant transfer of funds was linked to an entity known as the KyberSwap exploiter, raising concerns in the cryptocurrency community.
The KyberSwap exploiter obtained these tokens by exploiting the “transfer from function” within the Ethereum network.
The “transfer from” function is commonly utilized by decentralized application users, allowing one party to transfer tokens from the balance of another party to a third-party address.
However, misuse or vulnerabilities in the implementation of such functions can lead to security vulnerabilities.
Cyvers, in its report, suggests that the security breach may be associated with a potential flaw in the Multicall function, a component of the thirdweb libraries integrated into the HXA token’s smart contract.
Cyvers encourages interested parties to actively participate in the investigation to comprehensively understand the extent and repercussions of this exploit.
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The Cyvers team has also revealed that the funds acquired by the KyberSwap exploiter have been dispersed among various externally owned accounts, which are now recognized as the top HXA tokenholders. This distribution adds complexity to tracking and recovering the stolen assets.
Meanwhile, cryptocurrency exchange MEXC has taken a precautionary measure by temporarily suspending HXA token withdrawals and deposits.
However, this halt is not directly linked to security concerns arising from the hack but rather stems from unusual on-chain activities related to HXA, as reported by the exchange.
In an unexpected development, the official website of HAXcoin, hxacoin.io, is currently inaccessible, leaving investors and stakeholders without access to official information and updates.
This further complicates the situation and raises suspicions regarding the project’s integrity and transparency.
This incident follows a recent hack that saw hackers siphon off approximately $46 million in cryptocurrency assets from the decentralized KyberSwap exchange.
The cumulative impact of such security breaches highlights the need for enhanced security measures within the cryptocurrency ecosystem, urging industry participants to remain vigilant and proactive in safeguarding digital assets and user interests.
On December 11, 2:15 am UTC, the price of Bitcoin briefly dipped below the $41,000 mark, experiencing a sudden 6.5% drop from $43,357 to as low as $40,659 within a mere 20 minutes.
However, as of the latest TradingView data, Bitcoin has made a slight recovery, trading at around $41,960 after hitting the local low.
Ether, the second-largest cryptocurrency by market capitalization, also faced a sharp decline during the same timeframe, plummeting by more than 8.9%.
Presently, the price of ETH has stabilized at $2,233, reflecting a 5.3% decrease on the day. Other prominent cryptocurrencies like BNB, XRP, and Solana have also witnessed losses in value.
According to data sourced from CoinGlass, this abrupt drop led to the liquidation of long positions worth more than $270 million.
Additionally, it wiped out approximately $1.2 billion in open interest related to BTC, which currently stands at about $17.9 billion.
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Interestingly, this price decline occurred just moments after Scott Melker of Wolf of All Street had remarked on Bitcoin closing its eighth consecutive green weekly candle, playfully asking, “When correction, sir?”
This recent drawdown constitutes the most significant single-day decline for Bitcoin in over a month, despite the asset’s impressive growth of more than 12% over the past 30 days.
Notably, Bitcoin has seen a remarkable rally of over 150% since the beginning of the year.
This uptrend has been primarily fueled by the anticipation that the United States Securities and Exchange Commission (SEC) will greenlight several spot Bitcoin exchange-traded funds (ETFs).
This approval would provide large institutions with a substantial avenue for exposure to the cryptocurrency for the first time.
Another contributing factor to Bitcoin’s rally is the prevailing market expectation that the U.S. Federal Reserve will commence interest rate cuts around the middle of 2024.
Investors are also gearing up for the release of the next round of inflation data and the final Federal Open Market Committee (FOMC) meeting of 2023.
Analysts largely anticipate improvements in core inflation and are betting on the Fed maintaining the current interest rate levels.
Over the course of four days, wallets connected to the now-defunct crypto trading firms, FTX and Alameda Research, orchestrated the movement of a staggering $23.59 million worth of digital assets onto some of the most prominent cryptocurrency exchanges.
This revelation came to light thanks to the diligent work of blockchain analytics firm Spot On Chain, which uncovered that these defunct entities had been orchestrating a series of transfers amounting to a whopping $591 million since October 24th.
Remarkably, these transfers involved a total of 59 different cryptocurrency tokens.
In the latest wave of transfers linked to FTX wallets, the sum of $23.59 million was distributed across 19 tokens.
Among these tokens, 3,150 Ether valued at $6.8 million, 59.6 million Aleph.im (ALEPH) worth $6.41 million, $2.48 million in Curve DAO (CRV) tokens, $990,000 in Avalanche, and $848,000 in Chainlink’s LINK were prominently featured.
Intriguingly, this movement also encompassed $6.07 million in a diverse range of assets, including Pundi X (PUNDIX), Reserve Rights (RSR), Dogecoin, Bitcoin Cash, Chromia (CHR), Axie Infinity, Polygon’s MATIC, Uniswap, Orbs (ORBS), Frax Share (FXS), Polkadot, STEPN, 1inch (1INCH), and Solana.
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These assets were subsequently funneled into major exchanges like Binance, Coinbase, OKX, and Galaxy Digital OTC.
The financial maneuverings began on October 24th when both FTX and Alameda wallets initiated a $10 million transfer to a single wallet address, which was subsequently distributed to Binance and Coinbase accounts.
A similar transaction took place on November 1st, involving $13.1 million being channeled into Binance and Coinbase accounts.
This movement of funds has its origins in March when FTX and Alameda embarked on the journey to recover assets for their investors.
During that period, three wallets associated with FTX and Alameda Research shifted $145 million worth of stablecoins onto various platforms, including Coinbase, Binance, and Kraken.
While these revelations demonstrate a significant recovery of over $5 billion in cash and liquid cryptocurrencies by the troubled cryptocurrency exchange, FTX, there is still a substantial outstanding liability of $3.8 billion that remains unresolved.
The crypto world continues to watch closely as the intricate web of financial transactions unfolds.
On December 8, Lifinity, a decentralized exchange (DEX), experienced a significant setback when an arbitrage bot drained its LFNTY-USDC liquidity pool, resulting in a loss of $699,090.
The incident was attributed to an unexpected response from a failed trade, as reported in Lifinity’s Discord channel.
The ordeal unfolded when an arbitrage bot embarked on a complex trading route, involving USDC, xLFNTY, LFNTY, and USDC, aiming to exploit price disparities between various trading pairs.
The bot executed an Immediate-or-Cancel (IOC) market order on Serum v3, a type of order that requires immediate execution at the prevailing market price upon being filled. Orders unable to be executed immediately are typically canceled.
However, instead of returning an error as expected, the bot’s request yielded a 0 amount output.
This unforeseen outcome caused the liquidity pool to process the 0 amount, subsequently updating the last transaction price to 0 and setting the next starting price to the same value.
While the actual price on the constant product curve (CP curve) wasn’t zero, the pool offered an exceptionally low price, making it vulnerable to a drain.
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Lifinity v1 functions as an automated market maker (AMM), employing algorithms to create liquidity in trading pairs. It relies on the constant product market maker (CPMM) model to maintain balance between two token quantities within a liquidity pool.
This approach is also used by other DEXs like Uniswap and Bancor.
While Lifinity v1 does not directly employ the standard constant product (CP) curve found in traditional CPMMs, it replicates its functionality.
The bug in this case allowed the arbitrage bot to exploit the discrepancy and deplete the funds.
Efforts are now underway to address the situation, with Lifinity’s team working on restoring liquidity to the affected pool.
Additionally, they are reviewing the protocol code and exploring options for fund recovery.
To prevent future incidents, the DEX has implemented a new measure: trades resulting in 0 amounts are no longer accepted.
Contrary to initial concerns, the incident does not appear to be the result of an external attack, as clarified by a community member on social media.
While Cointelegraph reached out to Lifinity’s team for comment, an immediate response was not received, leaving the community awaiting further updates on the situation.
The United Kingdom’s National Audit Office (NAO) has raised concerns regarding the effectiveness of the Financial Conduct Authority (FCA) in regulating the cryptocurrency industry, as detailed in their latest report titled ‘Financial services regulation: adapting to change.’
The NAO’s report highlights the FCA’s slow response to illicit activities within the crypto sector, sparking concerns in the financial landscape.
One notable issue pointed out by the NAO is the extended timeframe it took the FCA to take action against unlawful operators of cryptocurrency ATMs.
The NAO reported that it took nearly three years for the FCA to initiate significant enforcement measures, which culminated in the shutdown of 26 crypto ATMs on July 11, as reported by Cointelegraph.
The NAO’s report underscores this delay, underscoring that, “While the FCA has mandated crypto-asset firms to comply with anti-money laundering regulations since January 2020 and initiated supervision efforts involving unregistered firms, it did not commence enforcement measures against illicit crypto ATM operators until February 2023.”
The NAO attributes the delay in registering crypto firms seeking FCA approval to a shortage of specialized cryptocurrency expertise within the authority.
Their report highlights this concern, stating, “A lack of crypto skills within the FCA led to prolonged registration of crypto-asset firms under money laundering regulations.”
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This issue becomes even more pressing when considering that, as of January 27, the FCA had approved only 41 out of 300 crypto firm applications seeking regulatory clearance since the rules were implemented in January 2020.
Furthermore, the FCA has recently issued guidance materials to assist cryptocurrency firms in understanding the new regulations related to the promotion of crypto services.
On November 2, Cointelegraph reported the introduction of “finalized non-handbook guidance” by the FCA to ensure compliance with these new rules, which specifically govern how crypto companies can market their services to customers.
Among the key aspects addressed in the FCA’s guidance are concerns regarding crypto firms making claims about the ease of using cryptocurrencies without adequately highlighting associated risks.
Additionally, the guidance emphasizes the importance of making risk warnings highly visible, as some firms have previously used small fonts that can easily be overlooked.
In conclusion, the NAO has expressed reservations about the FCA’s ability to effectively oversee the cryptocurrency industry, citing delays in enforcement actions and a shortage of cryptocurrency expertise within the organization.
These concerns arise at a time when the FCA is introducing new rules and guidance aimed at improving transparency and consumer protection within the crypto space.
Tether, the issuer of the popular stablecoin, has recently taken a significant step toward enhancing its cooperation with law enforcement and regulatory agencies.
In a blog post dated December 9th, the company announced the implementation of a voluntary wallet-freezing policy, aimed at bolstering its efforts to comply with global regulations and law enforcement requests.
Since December 1st, Tether has been providing controls on the secondary market to freeze any activity associated with individuals or entities listed on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
This list comprises companies and individuals connected to sanctioned countries. Tether’s move is part of a broader proactive approach to align itself more closely with regulatory bodies worldwide.
The U.S. Department of the Treasury utilizes the SDN List to monitor and prevent cryptocurrency transactions that may be linked to illicit activities, such as terrorism financing and the unauthorized distribution of fentanyl.
Notably, Tether has already frozen wallets that were previously added to the SDN List, marking a departure from its earlier stance on this matter.
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In August 2022, the company had stated that it would not proactively freeze addresses associated with sanctioned Tornado Cash transactions unless explicitly instructed to do so by law enforcement agencies.
Tornado Cash had come under scrutiny for allegedly facilitating over $7 billion in cryptocurrency money laundering since 2019, as per the OFAC.
Paolo Ardoino, CEO of Tether, emphasized the importance of these measures, saying, “By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.”
Tether, headquartered in Hong Kong, is responsible for the stablecoin of the same name.
The stablecoin has gained immense popularity, with its market capitalization recently reaching $90 billion, even amidst increased regulatory scrutiny of cryptocurrency firms in the United States.
Tether’s stablecoin continues to dominate the market, holding nearly 70% of the stablecoin market share.
In summary, Tether’s decision to proactively freeze wallet addresses associated with sanctioned individuals and entities reflects its commitment to compliance and cooperation with regulatory authorities, further solidifying its position in the stablecoin market.
On December 8, the United States Department of Justice (DOJ) unsealed Binance’s compliance commitments, shedding light on a significant level of government oversight of the cryptocurrency exchange’s operations and business dealings.
In a recent analysis posted on X (formerly Twitter), John Reed Stark, a former Securities and Exchange Commission (SEC) official, described Binance’s new compliance commitments as an “exhaustive list” that resembles a “consulting firm’s wish list,” and he suggested that these commitments could potentially lead to the platform’s shutdown.
These obligations are outlined in an 11-page document and entail full cooperation with authorities, granting them access to documents, records, and resources upon request.
This access extends to information related to Binance’s past employees, agents, intermediaries, consultants, representatives, distributors, licenses, contractors, suppliers, and joint venture partners, as noted by Stark.
Various sections of the DOJ’s criminal division will closely monitor Binance’s activities, including those related to money laundering and asset recovery, national security, counterintelligence and export control, as well as the office of the United States Attorney for the Western District of Washington.
As previously disclosed, Binance’s plea deal with the U.S. government includes a five-year oversight period by the Financial Crimes Enforcement Network (FinCEN).
This unprecedented level of oversight is expected to come with a substantial financial cost for the exchange.
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Stark commented, “Binance’s settlement requires it to offer years of instantaneous access, audit, examination, and inspection to DOJ, FinCEN, and all types of financial regulators and law enforcement, exposing the company — and its customers — to a 24/7, 365-days-a-year financial colonoscopy.”
Binance and its former CEO, Changpeng “CZ” Zhao, have already admitted to violating U.S. laws related to money laundering and terror financing, agreeing to pay $4.3 billion in fines on November 21.
These newly unsealed court records are part of a recent filing by the U.S. SEC, which incorporates the DOJ’s enforcement actions and settlements to strengthen its case against Binance and Zhao.
The SEC had initially filed 13 charges against Binance on June 5, accusing the exchange of unregistered offers and sales of various tokens and products.
The SEC also alleges that Binance failed to register its Binance.com platform as an exchange or broker-dealer clearing agency.
With this latest filing, the regulator is seeking judicial notice of the facts presented in Binance’s settlement, essentially asking the court to acknowledge these facts as true without formal evidence presentation.
The SEC is leveraging the settlement to challenge Binance’s motion to dismiss the case, thereby undermining the exchange’s arguments regarding its presence and operations in the U.S. over the past years.
According to Binance’s settlement with the DOJ, the exchange had over three million U.S. customers by March 2018, with approximately 30% of its web traffic originating from the United States as of June 2019.
Negotiators from the European Parliament and Council achieved a significant breakthrough on Friday, December 8th, by reaching a provisional agreement on the regulation of artificial intelligence (AI).
This landmark accord addresses various facets of AI deployment, including governmental use in biometric surveillance, regulations concerning AI systems such as ChatGPT, and transparency protocols prior to market entry.
It encompasses technical documentation, compliance with European Union copyright regulations, and the sharing of training content summaries.
The European Union is poised to become the first supranational authority to institute comprehensive AI regulations that promote its beneficial utilization while safeguarding against potential risks.
The agreement was the culmination of an exhaustive 24-hour debate on December 8th, followed by 15 hours of intense negotiations.
Under the agreement’s provisions, AI models with significant impacts and systemic risks are obligated to assess and mitigate those risks, undergo adversarial testing for system resilience, report incidents to the European Commission, ensure cybersecurity measures, and disclose information on energy efficiency.
The European Parliament emphasized the importance of proper implementation, signaling its intention to closely monitor and support innovative businesses with the establishment of sandboxes and effective regulations, particularly for the most potent AI models.
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Following the agreement, Thierry Breton, European Commissioner for Internal Market, celebrated the historic moment, declaring on X (formerly Twitter), “Historic! The #AIAct is much more than a rulebook — it’s a launchpad for EU startups and researchers to lead the global AI race. The best is yet to come!”
According to the agreed-upon terms, general-purpose AI systems carrying risks must adhere to specific codes of conduct.
Furthermore, governments are restricted in their use of real-time biometric surveillance, which is only permitted in specific instances, such as certain types of crimes or severe public security threats.
The agreement explicitly bans cognitive behavioral manipulation, the scraping of facial images from the internet or CCTV footage, social scoring, and biometric systems inferring personal details, including beliefs and orientations.
It also ensures consumers’ rights to file complaints and receive explanations in case of violations.
Penalties for infringements range from 7.5 million euros ($8.1 million) or 1.5% of a company’s turnover to 35 million euros ($37.7 million) or 7% of their global turnover, depending on the nature of the violation and the company’s size.
The European Parliament has indicated that the agreed-upon text will undergo formal adoption by both the parliament and council before becoming EU law.
The internal market and civil liberties committees of the parliament will conduct a vote on the agreement during an upcoming meeting.