Cryptocurrency derivatives exchange BitMEX has downplayed its violation of the Bank Secrecy Act (BSA) in the United States, calling it “old news” from 2020.
The company plans to request an expedited sentencing hearing, indicating that no additional charges will be pursued.
On July 10, US Attorney Damian Williams announced that BitMEX had admitted to offering crypto trading services without a proper Anti-Money Laundering (AML) program.
BitMEX responded by pointing out that its founders, Arthur Hayes and Benjamin Delo, had already pleaded guilty to the violation and paid fines in 2022.
At the time, Hayes and Delo admitted to “willfully failing to establish, implement and maintain an Anti-Money Laundering program” at their exchange.
This resulted in BitMEX implementing verification systems to prevent US citizens from using the platform.
Both founders agreed to pay $10 million in criminal fines each for the BSA violations.
Consequently, the exchange does not anticipate any further fines from the US Department of Justice (DOJ).
BitMEX stated, “We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them, and under our no admission/no denial settlements with the CFTC and FinCEN in 2021.”
BitMEX also mentioned that its Know Your Customer and AML programs have been independently audited. “Needless to say, this charge has no impact on our business operations,” it concluded.
Delo was sentenced to 30 months probation for the BSA violation on June 16, while Hayes received two years probation and six months of home detention on May 21.
Prosecutors had argued that Delo should serve a prison sentence similar to Hayes.
Hayes voluntarily surrendered to US authorities in Hawaii six months after federal prosecutors first levied charges on April 7.
His lawyers stated, “Mr. Hayes voluntarily appeared in court and looks forward to fighting these unwarranted charges.”
In the US, pleading guilty to supporting money laundering is a punishable offense, often carrying a maximum penalty of five years in prison.
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Pudgy Penguins, a non-fungible token (NFT) collection, has partnered with Web3 domain provider Unstoppable Domains to allow users to access Pudgy World using .pudgy domain names.
Announced on July 10, this integration enables .pudgy domain holders to sign into the virtual world using only their domain names, enhancing the ownership layer of the Pudgy World experience.
With this new feature, users no longer need to use Web2-based credentials, such as Google or Apple accounts, to log into the virtual world.
This integration also eliminates the need for traditional passwords, streamlining the login process.
Web3 domain names are human-readable addresses that serve as replacements for crypto wallet addresses.
Instead of a long string of random 42-letter characters, Web3 domains offer more straightforward names that represent wallet addresses.
On Jan. 10, Sandy Carter, Unstoppable Domains’ chief operating officer, emphasized the importance of Web3 domains in the adoption of Web3 technology.
Carter noted that these domains have immediate utility, addressing criticisms of the limited use cases for some blockchain-based products like NFTs.
In a press release, Carter highlighted the benefits of integrating Web3 domains with Pudgy World access. She stated:
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“This latest integration with Pudgy Penguins empowers users to truly own their digital identities and control their virtual experience.”
Carter believes that using .pudgy domains frees users from Web2 constraints, giving them greater sovereignty over their digital identities and shaping their virtual reality.
These domains act as unique identifiers, allowing users to showcase their individuality within the Pudgy Penguins community.
The integration goes beyond simple usernames, representing users’ digital selves in the virtual world.
Unlike conventional logins, .pudgy domains facilitate long-term management of digital identities, providing access to exclusive chats, events, and activities.
This enriches user engagement and makes interactions more meaningful.
Pudgy Penguins CEO Luca Netz also emphasized the importance of this development, stating that it offers “a more unified experience” through the integration with Unstoppable Domains. Netz explained:
“Being able to login with their .pudgy domains provides a uniquely Web3 experience, which is perfect because, in the virtual world, individuality and ownership are hugely important.”
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The High Court of Singapore has mandated that the Multichain Foundation, a cross-chain router protocol, compensate the Fantom Foundation, a layer-1 platform, for losses resulting from a $210 million hack.
In July 2023, the Multichain Foundation, a Chinese cross-chain protocol, experienced unusually large outflows, later identified as a hack.
This attack impacted many protocols associated with the chain, resulting in over $210 million in asset losses across multiple chains, including Fantom, Ethereum, BNB, Cronos, Polygon, Arbitrum, zkSync, Optimism, and Moonbeam.
Fantom Foundation pursued legal action to hold the Multichain Foundation accountable.
They reported their financial losses to the Singapore High Court and sought compensation.
During a court hearing on June 3, Fantom’s representatives presented evidence to the Singapore court, but Multichain’s representatives did not attend. Fantom representatives stated:
“The Claimant’s position is that the breach was possible because the CEO of the First Defendant had ultimate privileges and control over the cryptocurrency assets stored in the Multichain Bridge.”
The court found that Multichain admitted this claim on X and breached the user agreement as well.
On July 8, the court awarded Fantom $2.187 million for losses suffered during the hack.
However, Fantom had previously claimed that its ecosystem losses amounted to approximately one-third of the total losses worth $210 million.
Crypto losses from hacks and scams more than doubled in the second quarter of 2024 compared to the same period in 2023, according to research from blockchain security platform Immunefi.
Over $572 million was lost to hacks in Q2 2024, compared to $220 million in Q2 2023. Centralized exchange hacks accounted for the bulk of the losses in the quarter.
Before the second quarter, losses from hacks and scams had been declining, with Immunefi reporting a 23% reduction in Q1.
This decline continued through April and most of May but surged at the end of May and June.
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The United States Senate Committee on Armed Services has instructed Secretary of Defense, Retired General Lloyd Austin, to test blockchain technology applications for supply chain management and other national security purposes within the Department of Defense (DOD).
On July 9, the committee released the report for the fiscal year 2025 National Defense Authorization Act (NDAA), detailing specific authorizations for the Army, Navy, Air Force, and Defense-wide programs.
The committee acknowledged blockchain’s potential to bolster US national defense supply chains and economic competitiveness:
“The committee notes that blockchain technology has the potential to enhance the cryptographic integrity of the defense supply chain, improve data integrity, and reduce the risk of the manipulation or corruption of certain types of data by near-peer competitors.”
The Senate committee urged the DOD to explore blockchain use cases to achieve national security goals and to establish secure, transparent, accountable, and auditable data related to supply chains.
To advance this initiative, the committee directed Austin to provide a briefing by April 1, 2025.
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The blockchain briefing must address six key areas, including:
“A plan for pilot programs or research and development efforts to explore the use of blockchain technology in national security applications, including supply chain management, cybersecurity for critical infrastructure assets, and procurement auditability.”
Other areas include identifying the benefits and risks of blockchain in supply chain tracking and management, analyzing the current state of blockchain adoption in the supply chain industry and foreign countries like China and Russia, and assessing feasibility and cost estimates.
While the US Senate committee considers blockchain adoption, US politicians are also advocating for Bitcoin and crypto adoption.
On July 8, an update to Republican Party presidential candidate Donald Trump’s campaign website revealed that the Republican National Committee had drafted a policy platform supporting cryptocurrencies and Bitcoin mining.
“We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control,” the updated platform stated.
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North Carolina Governor Roy Cooper has vetoed a bill that would prohibit the state from implementing a US Federal Reserve-issued central bank digital currency (CBDC), despite overwhelming support from the state’s House of Representatives and Senate.
Cooper faced backlash for what critics labeled a politically driven decision.
In a statement on June 5, he described House Bill 690 as “premature, vague, and reactionary,” deeming it unsuitable for enactment at this stage.
“Efforts are being made at the federal level to ensure standards and safeguards are in place to protect consumers, investors and businesses [using] digital assets and North Carolina should wait to see how they work before taking action.”
The veto followed decisive votes in late June, with the House passing the bill 109–4 and the Senate approving it 39–5.
Given the strong legislative support, North Carolina lawmakers could potentially override Cooper’s veto with a three-fifths majority in both chambers.
The decision was met with criticism. Mitchell Askew, head analyst at Blockware Solutions and a North Carolina native, told Cointelegraph, “The veto from Governor Cooper was not representative of the desires of North Carolinians.”
He expressed disappointment that Cooper was “unwilling to put partisan politics aside” for legislation that he believes would benefit all residents.
“He vetoed only because his opponent Mark Robinson is in favor of the bill. It’s clear who the pro-Bitcoin and pro-freedom candidate is here.”
Similarly, Dan Spuller, head of industry affairs at the Blockchain Association, saw Cooper’s veto as a missed opportunity to firmly oppose a CBDC.
“[Digital asset] policy must remain in the hands of the American people, ensuring that any development of digital currency reflects our values of privacy, individual sovereignty, and free market competitiveness.”
Federal Reserve Chair Jerome Powell provided some context during a Senate Banking Committee hearing in March, stating that the US was “nowhere near recommending or let alone adopting a central bank digital currency in any form.”
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The President of the Central Bank of the Republic of China, Yang Chin-long, emphasized that developing a central bank digital currency (CBDC) is not a race.
He stressed that the central bank prioritizes steady progress over speed.
Yang mentioned that being the first to introduce a CBDC doesn’t guarantee success, as evidenced by countries that have already issued or tested CBDCs without achieving their desired outcomes, according to a July 7 news report by UDN.
In a report released on June 7, ahead of his presentation to the Finance Committee of the Legislative Yuan on June 10, Yang detailed the central bank’s plans for a digital New Taiwan dollar.
He explained that the bank is experimenting in three scenarios to enhance domestic payment efficiency and innovation.
While there is no set timetable for issuing a CBDC, efforts to improve the payment system’s efficiency and foster innovative applications are ongoing.
A significant development is the CBDC prototype platform designed for retail payments.
Yang highlighted that this platform can already support the cash flow operation of digital coupons, with transaction processing speeds reaching 20,000 transactions per second.
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Additionally, a proof-of-concept for a wholesale CBDC is underway.
This initiative combines CBDC with bank deposit tokens to create a future digital currency system, aiming to function as a liquidation asset for asset tokenization.
The central bank also plans to use tokenization technology to digitally transform wholesale central bank currency and commercial bank currency, supporting various asset tokens.
To further these objectives, Taiwan’s central bank is conducting proofs-of-concept and collaborating with participating banks to build a common platform for tokenization.
This platform will be tested in three scenarios: inter-bank transfer of bank deposit tokens, simultaneous delivery of asset tokens, and special-purpose digital money.
Yang reiterated that Taiwan’s cautious approach to issuing a CBDC is designed to meet public digital payment needs and align with government digital policy goals, ensuring substantial benefits.
In March, the Financial Supervisory Commission announced that it would propose a new draft of digital asset regulations for Taiwan in September 2024.
This aims to create more effective regulations for digital asset markets and ensure investor safety.
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Shiba Inu (SHIB) has seen a remarkable recovery, marked by a significant surge in both its burn rate and market value.
Over the past day, Shiba Inu’s burn rate skyrocketed by an astounding 781%, aligning with a notable price increase.
Shiba Inu’s price rose by as much as 16% in the previous day, demonstrating a robust upward trend.
As of the latest data, SHIB continues to sustain these gains, with an 11% increase over the last 24 hours.
This price recovery has invigorated the Shiba Inu community and caught the attention of the market, highlighting the token’s potential for further growth.
According to Shibburn X’s account, over 18 million SHIB (18,092,299) were burned in the last 24 hours, representing a 781.73% surge in the daily burn rate.
The price of SHIB is currently trading at $0.0000164, according to CoinMarketCap data. The broader cryptocurrency market’s sentiment has influenced Shiba Inu’s recovery.
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As investor sentiment improves and market conditions stabilize, crypto assets like SHIB stand to benefit from increased interest and trading activity.
Additionally, the recent positive sentiment within the Shiba Inu community might have contributed to the surge in both the burn rate and price.
Looking ahead, the market will be closely watching Shiba Inu’s progress in the coming weeks, eager to see if the token can maintain its upward trajectory.
Broader market trends and investor sentiment will play a significant role in SHIB’s future performance.
Currently, Shiba Inu bulls are challenging a key price level where a substantial amount of SHIB is held by several addresses.
According to IntoTheBlock data, 422.29 trillion SHIB are held by 23,330 addresses at an average price of $0.000017.
If bulls succeed in surmounting this vital level, the SHIB price might approach $0.00002.
In this scenario, a sustained breach above the daily moving averages of 50 and 200 at $0.0000193 and $0.00002125 might indicate a bullish comeback.
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Over the past few days, Shiba Inu (SHIB) has experienced significant price swings, reflecting the overall cryptocurrency market’s ebb and flow.
However, in a notable turn of events, SHIB has managed to recover by 6.5% within the last 24 hours, bringing its current trading price to approximately $0.00001637.
This resurgence is especially significant as SHIB had faced a considerable decline, aligning with trends seen in Bitcoin and other major cryptocurrencies.
A closer analysis of SHIB reveals that the cryptocurrency’s burn rate has markedly increased, soaring almost 800% in just 24 hours, Investing Insider reported.
This equates to approximately 18 million SHIB tokens being permanently removed from circulation.
While the immediate financial value of these burned tokens may appear minor, the strategic reduction in supply is designed to foster long-term price stability and growth.
Another critical metric indicating SHIB’s positive momentum is the substantial increase in whale activity.
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According to data from analytics firm IntoTheBlock, there has been a 180% rise in large transaction volumes involving SHIB over the past day.
This uptick suggests that significant investors are taking keen interest, potentially positioning themselves for anticipated future gains.
Despite a generally bearish outlook from the analytics firm, the recent surge in large transactions could signal a shift in market sentiment.
As the SHIB market continues to navigate through periods of volatility, recent developments provide a cautiously optimistic outlook.
The commendable recovery in price, combined with increasing burn rates and heightened whale activity, positions Shiba Inu as a point of focus within the cryptocurrency community.
While the market remains unpredictable, these indicators suggest potential for sustained growth, contingent on maintaining the current momentum.
Investors and enthusiasts should stay informed of ongoing trends and metrics to make strategic decisions in this dynamic market environment.
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Next week, the U.S. House of Representatives might overturn President Joe Biden‘s veto of Staff Accounting Bulletin 121 (SAB 121), a rule requiring entities that report to the SEC and hold cryptocurrencies to list those assets on their balance sheets.
This information comes from the House Majority Leader Steve Scalise’s weekly schedule, which includes SAB 121 on the “legislation that may be considered” list.
The House must vote to either overturn or uphold presidential vetoes due to constitutional obligations, with the next votes possibly occurring on Tuesday, July 9, or Wednesday, July 10.
Earlier, a resolution to nullify the SEC’s rule saw bipartisan approval in both the House (228–182) and Senate (60–38), only to be vetoed by Biden in late May.
Critics of SAB 121 argue that the rule would restrict American banks from custodianing cryptocurrency exchange-traded products on a large scale, leading to a concentration risk that could benefit non-bank entities.
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Overturning the veto will require a two-thirds majority in both the House and Senate, a significant challenge given that only 55.6% of House members and 61.2% of Senators supported the resolution in May.
Alexander Grieve, a government affairs expert at the cryptocurrency investment firm Paradigm, described the situation as a “steep hill to climb but not impossible” due to the bipartisan nature of the previous vote.
Additionally, in May, the House passed the Financial Innovation and Technology for the 21st Century Act, which aims to clarify the regulatory approach of U.S. commodities and securities bodies towards cryptocurrencies.
The vote tally was 279–136.
In the political arena, President Biden and Republican candidate Donald Trump are intensifying their campaign activities as the 2024 presidential election in November approaches.
Both have recently turned their attention to cryptocurrency-related issues, which Kerri Langlais, chief security officer at Bitcoin mining company TeraWulf, views as beneficial for the industry.
Langlais told Cointelegraph that both candidates have adjusted their original stances on cryptocurrencies favorably over the past year, emphasizing the importance of continuing educational and political efforts in this area.
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CryptoQuant, a market intelligence firm, has observed indicators that Bitcoin miner capitulation metrics are nearing levels similar to those seen after the FTX crash in late 2022, suggesting a potential bottom for Bitcoin prices.
Miner capitulation occurs when miners scale back operations or sell part of their mined Bitcoin and reserves either to sustain themselves or to “earn yield or hedge their Bitcoin exposure.”
In recent times, as Bitcoin’s price declined by 13% from $68,791 to $59,603 over the last month, signs of capitulation have become more evident.
One significant indicator of this trend is the decrease in Bitcoin’s hashrate, which is the total computational power used to secure the network.
This hashrate has fallen by 7.7% to 576 EH/s, reaching a four-month low after previously hitting a record high on April 27.
This drop in hashrate mirrors a similar reduction seen in late 2022, which historically correlated with the market bottoming out at $15,500 before a subsequent 300% increase in Bitcoin’s price over the following 15 months.
CryptoQuant’s analysis also points out that since the last Bitcoin halving, miners have been substantially undercompensated, as shown by the miner profit/loss sustainability indicator.
This has resulted in a 63% reduction in miners’ daily revenues from $79 million on March 6 to $29 million currently, with revenues from transaction fees dropping to just 3.2% of the total, marking the lowest since April 8.
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Moreover, the decline in revenue has compelled miners to dip into their reserves to generate yield, leading to a notable increase in daily miner outflows, the highest since May 21.
This trend suggests that miners might be selling off their Bitcoin reserves.
Despite significant outflows in May, they remained below extreme levels (twice the 1-year average), indicating a measured approach to selling.
The overall impact of these sales, combined with those from Bitcoin whales and national governments, has pressured Bitcoin’s price to a four-month low of $53,499 on July 5.
Furthermore, the downturn has affected the ‘hash price,’ a metric of mining profitability per unit of computational power, which now stands at $0.049 per EH/s, barely above the record low of $0.045 seen on May 1.
Reflecting on the broader implications, a report from Cantor Fitzgerald highlighted that major mining firms could face significant challenges if Bitcoin prices were to drop to $40,000, underscoring the precarious situation of the mining industry.
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