DZ Bank, Germany’s third-largest bank in terms of assets, has ventured into the world of digital assets custody with its newly launched blockchain-based platform.
This announcement, made on November 2, outlines the platform’s focus on serving institutional clients and providing them access to crypto securities, including the Siemens crypto bond, which DZ Bank had subscribed to half a year earlier.
Holger Meffert, the head of securities services and digital custody at DZ Bank, expressed the institution’s keen interest in distributed ledger technology (DLT).
He emphasized his belief that a significant portion of capital market operations would transition to DLT-based infrastructures within the next decade.
In the short term, they see DLT as a complementary technology to the existing infrastructure in the capital market.
DZ Bank is not stopping at crypto securities; it also aims to enable both institutional investors and private customers to purchase cryptocurrencies, specifically mentioning Bitcoin, in the near future.
To realize this ambition, the bank submitted an application for a crypto custody license to the German Federal Financial Supervisory Authority (BaFin) in June 2023.
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This move by DZ Bank aligns with the broader trend of German banks embracing cryptocurrency despite the country’s strict regulatory environment.
The cryptocurrency industry is witnessing a growing number of institutions seeking ways to provide customers with access to digital assets.
In March 2023, Deutsche WertpapierServiceBank made a significant stride by introducing its wpNex crypto trading platform.
This platform grants access to the digital asset industry for 1,200 banks and savings banks across Germany.
DWS, an asset management group primarily owned by Deutsche Bank, also joined the cryptocurrency wave by announcing its work on exchange-traded products related to cryptocurrencies in the European market.
Furthermore, they are developing other digital solutions to offer investors access to blockchain applications and digital assets.
Commerzbank and DekaBank, two other traditional banks, are also in pursuit of crypto custody licenses from Germany’s financial regulatory authority, BaFin.
These developments collectively indicate a growing acceptance and integration of cryptocurrencies and blockchain technology within the German banking sector.
Crypto exchange FTX, currently in bankruptcy, has sought permission from the Delaware bankruptcy court to sell specific trust fund assets valued at approximately $744 million.
This request, made in a court filing dated November 3, aims to facilitate forthcoming distributions to creditors in dollarized form.
The assets earmarked for sale comprise holdings from prominent crypto asset manager Grayscale Investments and custody service provider Bitwise.
Specifically, the assets include one Bitwise trust valued at $53 million and five Grayscale trusts with a combined value of $691 million.
These trusts serve as vehicles for investors to gain exposure to cryptocurrencies without actual ownership.
In their court filing, FTX debtors underscored their belief that proactively minimizing the risk of price fluctuations is essential to safeguarding the value of the trust assets.
Doing so will, in turn, maximize returns for creditors and foster an equitable distribution of funds as part of the debtors’ reorganization plan.
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FTX debtors have not only requested approval for the sale of trust assets but have also suggested involving an investment adviser to oversee and approve the sale procedures.
Additionally, they propose the establishment of a pricing committee composed of stakeholders to participate in the sale process.
This request to sell trust assets follows a prior court-approved liquidation of nearly $3.4 billion worth of crypto assets.
To prevent adverse market effects, the court mandated that these assets be sold in increments of $50 million and $100 million.
FTX’s bankruptcy proceedings are unfolding against the backdrop of its former CEO, Sam Bankman-Fried, being found guilty on all seven counts in a criminal trial in New York.
These counts include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. The sentencing for this case is scheduled for March 28, 2024.
In summary, FTX’s bankruptcy case has entered a new phase with the request to sell trust assets, aiming to ensure a smoother distribution of funds to creditors while navigating the legal challenges involving its former CEO.
On November 4, Aave, a prominent decentralized finance (DeFi) protocol, made the decision to temporarily halt several of its markets in response to reports concerning a specific feature.
This development was shared via a post on the platform X (formerly known as Twitter).
The pause in operations has had an impact on multiple networks, including the Aave v2 Ethereum Market, and certain assets on Aave v2 operating on Avalanche.
Furthermore, specific assets on Polygon, Arbitrum, and Optimism have also been temporarily frozen as a precautionary measure.
Aave released a statement, revealing, “Today we received a report of an issue on a certain feature of the Aave Protocol,” and added, “After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk).”
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However, the announcement did not specify the exact nature of the issue or which particular assets were affected. Aave emphatically stressed that none of the funds on its markets were in jeopardy.
According to Aave, the issue has not impacted Aave v3 markets on Ethereum, Base, and Metis, and Aave v2 markets on Polygon and Avalanche remain unaffected as well.
To address this matter, Aave plans to submit a governance proposal in the near future to restore normal protocol operations.
Furthermore, a detailed postmortem analysis will be published once the issue is completely resolved.
While the affected assets remain frozen, users who have supplied or borrowed from them still have the ability to withdraw and repay their positions.
However, they are temporarily unable to supply or borrow additional assets until the issue has been successfully resolved.
It’s important to note that, at the time of writing, there has been no indication that this issue has had any impact on the price of Aave’s native token, AAVE.
As per CoinMarketCap, the token is currently trading at $89.10, showing a minor decrease of 1.54%.
Bitfinex, a cryptocurrency exchange, disclosed a “minor” security breach stemming from the hacking of one of its customer support agents that occurred between October 30 and November 5.
While this incident resulted in a series of phishing attacks targeting Bitfinex users, the company asserted that minimal harm was inflicted, as outlined in a statement issued on November 4.
The breach involved the unauthorized access to a portion of Bitfinex’s customer support boards containing partial, outdated, and incomplete information.
This breach was facilitated through phishing tactics employed against a customer support agent.
Fortunately, the compromised support agent did not possess “senior permissions,” limiting their access to support tools and help desk tickets, according to Bitfinex.
It is noteworthy that Bitfinex emphasized the integrity of its core systems remained intact, and no customer funds were compromised.
The company asserted that no servers, wallets, or databases were accessed, ensuring the safety of customer assets on the platform, and no password information was exposed.
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In fact, most of the affected customer accounts were either empty or inactive.
While Bitfinex indicated that the issue has been “resolved,” they continue to scrutinize the incident and the compromised data, actively reaching out to affected customers.
Additionally, Bitfinex promptly reported the incident to law enforcement authorities and is collaborating with investigative agencies to identify the perpetrators behind the phishing attack.
The company underlined its history of successfully securing convictions against individuals who have targeted their operations in the past.
Despite the breach, Bitfinex highlighted its commitment to maintaining robust security procedures, which includes mandatory cybersecurity training for all employees.
Founded in Hong Kong in 2012, Bitfinex has been under the leadership of CEO Jean-Louis van der Velde since 2013.
In terms of its reputation within the cryptocurrency community, Bitfinex ranks 17th in CoinGecko’s “Trust Score” index for cryptocurrency exchanges.
Over the last month, the platform received more than 800,000 visits, underscoring its popularity among cryptocurrency traders.
Elon Musk’s artificial intelligence (AI) venture, xAI, has unveiled “Grok,” a cutting-edge AI chatbot designed to excel in various academic tests, purportedly surpassing OpenAI’s initial ChatGPT iteration.
Musk and the xAI team, in a November 5th announcement on X (formerly Twitter), elucidated their mission to create AI tools that empower research and innovation for the betterment of humanity.
A standout feature of Grok is its real-time access to the world’s knowledge through the X platform, providing it with a unique and fundamental advantage.
Unlike most other AI systems, Grok doesn’t shy away from answering controversial or “spicy” questions, and it’s imbued with a sense of humor and a touch of rebelliousness.
The driving force behind Grok’s prowess lies in its engine, Grok-1, which underwent rigorous evaluation in mathematics and coding assessments.
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Impressively, Grok-1 outperformed ChatGPT-3.5 in all these tests, showcasing its remarkable capabilities.
However, it fell short of surpassing OpenAI’s advanced GPT-4 model, which benefited from more extensive training data and computational resources.
Grok is available to users in the United States as part of the X Premium Plus subscription for $16 per month, although it remains in a “very early beta” stage. XAI promises regular improvements and the implementation of additional safety measures to prevent malicious use.
The xAI team is committed to ensuring AI remains a force for good, acknowledging the immense potential for AI to contribute scientific and economic value to society.
They pledge to develop safeguards against any catastrophic misuse of Grok, emphasizing their dedication to responsible AI development.
Notably, Grok’s launch follows Elon Musk’s founding of xAI only eight months ago in March.
As the AI landscape continues to evolve rapidly, Grok stands as a testament to the ongoing advancements and efforts to harness AI for the betterment of humanity.
Discord users who rely on the platform to host files are in for a change, as the company plans to implement a policy where links to these files will automatically refresh every 24 hours by the end of this year.
This move is aimed at bolstering the company’s efforts to combat the spread of malware on its platform by granting it greater control over flagged content.
Discord, in communication with Bleeping Computer, assured users that this alteration won’t impact the seamless sharing of content within the platform itself.
Links used within Discord’s client will undergo automatic refreshing, ensuring a smooth experience for users.
However, those who share links outside of Discord will encounter an adjustment, as these links will become invalid after a single day, forcing users to regenerate them for continued access.
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Developers, who play a vital role in Discord’s ecosystem, are expected to experience only minimal disruptions, with more details promised by the company in the coming weeks.
Cybersecurity firm Trellix has highlighted the significance of this change by revealing that it had identified approximately 10,000 instances of malware samples distributed online, all of which were stored on Discord’s content delivery network (CDN).
These malicious actors exploit Discord’s webhooks functionality to extract data from victims’ computers and deposit it into Discord channels managed by the attackers.
In essence, Discord’s decision to refresh links is a strategic move to tighten security measures and reduce the risk of malware proliferation within its platform.
This approach aims to curb the ability of attackers to maintain persistent access to compromised content by making the links expire regularly.
By doing so, Discord hopes to enhance its capability to monitor and restrict access to content that raises red flags, ultimately bolstering the overall security of its user base.
As the end of the year approaches, Discord users who depend on the platform for file hosting should be prepared to adapt to these changes, which are designed to provide a safer and more secure environment for all users while thwarting the efforts of malicious actors seeking to exploit the platform’s features for their gain.
The trial of Avraham Eisenberg, the individual accused of exploiting Mango Markets for $116 million, has been postponed until April 8, 2023.
Originally scheduled for December 4, the trial delay was granted by district court Judge Arun Subramanian on November 3, following a successful motion for a continuance filed by Eisenberg’s legal team.
Eisenberg’s attorneys cited various factors that affected their trial preparations, leading to the motion for a continuance. Judge Subramanian approved the motion despite opposition from United States prosecutors.
Additionally, he ordered both the prosecutors and Eisenberg’s lawyers to submit a revised schedule for pretrial motions and submissions by November 7.
Eisenberg, who confessed to his involvement in the Mango Markets exploit, pleaded not guilty to three criminal counts, including commodities fraud, commodity manipulation, and wire fraud in June.
The defense explained in their motion that they required additional time to review the extensive discovery materials provided by U.S. prosecutors, which they received on a rolling basis.
They also pointed out that they had lost valuable preparation time when Eisenberg was unexpectedly transferred to the Metropolitan Detention Center (MDC) in Brooklyn on October 26.
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Due to the transfer, Eisenberg was unable to access the discovery materials and other essential legal paperwork related to the trial.
The defense attorneys expressed concerns that the move to MDC would severely hinder their access to Mr. Eisenberg, making it challenging to consult with their client effectively.
The MDC was the same facility where former FTX CEO Sam Bankman-Fried had returned after being convicted on seven fraud-related charges on November 2.
Eisenberg faced additional charges from the Securities and Exchange Commission on January 20, accusing him of manipulating the Mango Markets governance token, MNGO, by obtaining “massive loans” against inflated collateral and depleting Mango’s treasury of approximately $116 million. Eisenberg was arrested in Puerto Rico on December 27.
Eisenberg had publicly confessed to the exploit on October 15, 2022, maintaining that his actions were legally sound.
He initially returned $67 million to Mango Markets’ decentralized autonomous organization as part of a bounty agreement.
However, the Mango Markets team later filed a lawsuit against Eisenberg, seeking $47 million in damages plus interest.
On November 3, BTC Digital, a China-based company, announced a significant expansion of its Bitcoin mining operations by acquiring 220 new Bitcoin mining units.
This strategic move has boosted their total machine count to 2,174, with a formidable computing power of over 230 petahashes per second (PH/s).
These newly acquired mining units are expected to be fully operational by the end of the month.
The acquisition was executed through agreements with “two unaffiliated third parties,” involving the procurement of Bitmain Antminer S19j Pro units.
In exchange for these mining units, BTC Digital issued 276,572 shares of its ordinary company stock, with a total valuation of $968,800.
It’s worth noting that BTC Digital underwent a name change in August, transitioning from Meten EdtechX Education Group to better align with its current business operations.
BTC Digital is described on the Nasdaq-listed company’s website as a prominent provider of general English language training services in China.
The company boasts a network of learning centers across the nation and offers both online and metaverse-based training programs.
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However, there have been indications, such as a Reddit thread that emerged on November 11, 2022, suggesting that the company abruptly halted its teaching operations.
In late 2021, BTC Digital ventured into Bitcoin mining by deploying 1,482 miners, as mentioned in an undated profile on its website.
These mining farms were situated in the American states of Pennsylvania and Tennessee and operated by third-party entities. CEO Alan Peng expressed his outlook on the recent expansion, stating, “With the recent purchases and our plan to further increase the number of mining machines, we aim to continue improving our financial conditions as well as maximizing value for our shareholders.”
BTC Digital’s market capitalization stood at $3.1 million as of September 28, following a low point of $1.79 per share on September 26.
After rebranding from METX to BTCT on September 28, the company experienced increased trading activity, with shares currently valued at $3.66 at the time of this writing.
It’s worth noting that China initiated a crackdown on domestic Bitcoin mining activities in the latter half of 2021, although the efficacy of these efforts remained partially uncertain.
Advisers working with the bankrupt crypto exchange, FTX, have been cooperating with the Federal Bureau of Investigation (FBI), sharing customer transaction and account data, as revealed in court documents obtained by Bloomberg.
In response to subpoenas issued by multiple FBI field offices over the past several months, FTX consultants have provided law enforcement authorities with records of specific customer trades conducted on the crypto exchange during its bankruptcy proceedings.
The disclosed FBI requests are detailed in billing records associated with Alvarez and Marsal, a consultancy firm acting as financial advisers for FTX.
This cooperation involved the extraction of information related to certain customers’ trades for FBI offices located in Portland, Philadelphia, Oakland, Minneapolis, and Cleveland.
The billing records do not offer insights into the nature of the FBI’s investigation or the identity of the specific target involved, although one of the records does mention the existence of a grand jury subpoena.
In a formal court filing, Alvarez and Marsal acknowledged sharing transaction data from FTX’s cloud computing provider in September, responding to a subpoena from the FBI’s Philadelphia office.
In July, they investigated customer accounts and transactions in accordance with a request from the FBI’s Oakland office.
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Additionally, in August, the consultancy firm extracted customer information pertaining to specific transactions, complying with a subpoena from the FBI’s Portland office.
The costs associated with these services provided by advisers will ultimately be borne by FTX customers. As per Bloomberg’s report, during the months of July, August, and September, two advisers billed more than $21,000 for their FBI-related services.
In total, Alvarez and Marsal have accrued nearly $100 million in fees from FTX since November 2022, as per court records.
These fees will be deducted from the recoveries intended for FTX customers.
Notably, FTX’s new CEO, John J. Ray III, recently unveiled a potential ray of hope for the exchange’s customers.
He announced that, thanks to a proposed settlement between FTX creditors and debtors, customers could expect to recoup over 90% of their assets by the close of 2024, offering a glimmer of optimism amidst the tumultuous bankruptcy proceedings.
On November 3, 2023, the nonfungible token (NFT) marketplace OpenSea made a significant announcement, revealing its decision to undergo a restructuring that involved laying off employees.
Devin Finzer, the co-founder and CEO, shared this news on X (formerly Twitter) and explained that the company was embarking on the journey of OpenSea 2.0 with a more streamlined team.
OpenSea originally emerged in 2017, a time when NFTs were still an emerging innovation. Functioning on a business model reminiscent of platforms like eBay and Etsy, OpenSea conducted transactions primarily in Ether (ETH).
Notably, this move followed a previous round of layoffs in July 2022, when OpenSea had cited the challenges of the crypto winter, resulting in a reduction of their workforce from 230 employees.
A spokesperson from OpenSea conveyed their gratitude for the contributions of departing employees and disclosed that the company was committed to offering comprehensive support, including financial and non-financial assistance.
This restructuring would have an impact across all functions of the organization, affecting approximately 50% of its workforce. Of note, the spokesperson emphasized that there would be a reduction in the number of middle managers.
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Departing employees would receive four-month severance packages, accelerated equity vesting, and six months of continued healthcare and mental healthcare support.
The NFT market landscape has evolved significantly since its peak in 2021.
While collectible NFTs once dominated, new use cases such as tokenizing assets, managing identity, and storing legal documents have gained popularity, partly due to the decline in the value of many collectibles.
To navigate these changes and maintain its leading position, OpenSea is contemplating a strategic shift toward becoming a Decentralized Autonomous Organization (DAO) and issuing a governance token to its users, a move that could potentially be valued in the tens of billions.
Despite facing community backlash in August due to the retirement of its operator filter, OpenSea remains committed to its existing products while actively testing OpenSea 2.0 in the public domain.
The company is also actively hiring, with 12 open positions listed on LinkedIn, offering competitive starting salaries ranging from $90,000 to $270,000.
As OpenSea embarks on this new chapter, it aims to adapt to the evolving NFT landscape and continue serving its user base effectively.