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NBA Star Seeks Dismissal from Lawsuit Over Binance Securities Promotion

NBA star Jimmy Butler has requested his dismissal from a class-action lawsuit that targets celebrities allegedly involved in promoting unregistered securities by Binance.

Butler’s lawyers, in a filing on July 24, argued that the three tweets he appeared in, which promoted Binance between February 2 and February 13, 2022, did not mention any unregistered securities.

Therefore, they contended that these tweets could not have contributed to the promotion of such securities.

The lawyers emphasized that Butler’s tweets were not recommendations for investments; instead, they served as a cautionary message about celebrity crypto endorsements.

He urged potential Binance customers to conduct their own research before making any crypto investments.

The lawsuit, filed in March, named Butler along with Binance, its CEO Changpeng “CZ” Zhao, and YouTubers Graham Stephan and Ben Armstrong (also known as BitBoy Crypto).

Binance had engaged Butler, a prominent player for the NBA’s Miami Heat, in 2022 to promote the exchange in the lead-up to that year’s Super Bowl.

His promotional efforts began with a video promoting a free nonfungible token (NFT) collection from Binance on February 2, 2022, followed by two additional tweets on February 7 and February 13.

In the video sponsored by Binance, Butler advised viewers, “You’re going to hear some of the biggest names telling you to get into crypto, but they don’t know you or your finances.”

He added, “Binance and I are here to tell you, trust yourself and, of course, do your own research.”

One of Butler’s tweets for the exchange encouraged users to use the hashtag “#CryptoCelebAlert” during the Super Bowl for a chance to win one of 2,222 NFTs.

Another video featured Butler once again urging his followers to trust themselves and conduct thorough research into cryptocurrencies.

In a revised complaint on June 27, it was alleged that Butler’s statements were deceptive as they were presented alongside the promotion of Binance’s free NFTs and exchange platform.

In addition to Butler’s motion, Binance, Zhao, and Armstrong have also filed motions to dismiss the class-action lawsuit.

In an earlier development, finance YouTuber Graham Stephan was dismissed from the suit on June 15.

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Crypto Payment Platform Loses $31 Million in Security Breach

Crypto News Today/DeFi

Crypto payment platform Alphapo suffered a major security breach on July 22, resulting in the loss of at least $31 million from its hot wallets, comprising cryptocurrencies Ether (ETH), TRON (TRX), and Bitcoin (BTC). The value of the stolen assets is likely to be even higher due to uncertainties surrounding the number of stolen Bitcoins.

According to security experts, the attack was executed by siphoning funds from Alphapo’s hot wallets on the Ethereum network, converting them into ETH, and then moving them to the Avalanche and Bitcoin blockchains.

The breach may have been facilitated by a leak of private keys, although investigations are ongoing to determine the full extent and cause of the hack.

Alphapo is a prominent payment processor offering instant transactions in over 30 digital assets, along with fiat currency balances.

It has gained recognition as the gateway for various gambling platforms, including HypeDrop, Ignition, and Bovada.

Following the security incident, one of Alphapo’s clients, HypeDrop, temporarily suspended crypto transactions due to the hack’s impact on their operations.

The mystery box platform assured its users that their funds are safe but acknowledged the disruption in processing deposits and withdrawals. HypeDrop expects normal operations to resume once the cryptocurrency provider resolves the issue.

Despite the breach, Alphapo’s spokesperson declined to comment on the specific details of the incident.

However, they did confirm that deposits and withdrawals are being gradually reinstated for certain batches of currencies.

Users were urged not to send funds to old deposit addresses and were assured that any funds from such deposits would undergo additional verification.

In a separate security-related event, decentralized finance protocol Conic Finance faced two attacks in quick succession over the past few days.

The first attack resulted in the theft of $3.26 million worth of Ether, with the majority of the stolen funds sent to a single Ethereum address.

Shortly after, a second incident occurred in which the attacker employed a variant of a sandwich attack to target the protocol’s pools, yielding them around $300,000.

Both Alphapo and Conic Finance incidents highlight the ongoing risks and vulnerabilities in the cryptocurrency space.

Security experts and blockchain communities remain vigilant as they continue to develop and implement measures to protect users’ assets from potential threats.

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OKX Releases Industry Leading 9th Consecutive Proof of Reserves in July, Showing USD$11.3 billion in Primary Assets

Crypto News Today/Press Releases

HONG KONG, HONG KONG, July 26th, 2023, Chainwire

OKX, a leading crypto exchange by trading volume and Web3 technology company, has published its industry-best ninth consecutive monthly Proof of Reserves (PoR), showing a balance of USD$11.3 billion in BTC, ETH and USDT.

OKX’s PoR covers 22 commonly used digital assets and demonstrates that OKX has maintained a reserve ratio exceeding 100% for nine consecutive months across all those assets. In addition to BTC, ETH and USDT, the assets included in OKX’s PoR are: USDC, XRP, DOGE, SOL, OKB, APT, DASH, DOT, ELF, EOS, ETC, FIL, LINK, LTC, OKT, PEOPLE, TON, TRX and UNI.

OKX stores the majority of its reserves in highly secure off-chain cold storage. It has seen hundreds of thousands of users engage with its PoR, visit its PoR page and view their self-audits since first launching its PoR page in late 2022.

OKX’s current reserve ratios are as follows:

BTC: 103%
ETH: 103%
USDT: 103%

OKX Global Chief Commercial Officer Lennix Lai said: “Public-facing disclosures of both reserves and liabilities are essential to ensure long-term accountability in our industry. However, point-in-time attestations of reserve holdings mean little—instead, sustained and consistent disclosures are needed. As the industry leader when it comes to monthly PoR reporting, with more consecutive monthly snapshots than any other top exchange, our commitment to transparency is unwavering.”

OKX will continue to publish its monthly PoR while providing a self-audit tool to all users. The open-source verification tool enables users to independently verify OKX’s solvency and confirm their assets are backed by OKX reserves while maintaining their privacy.

OKX has published over 210,000 addresses for its PoR program, and will continue to allow the public to view its asset flows.

Users can view the latest PoR report, reserve ratios, and verify OKX’s solvency here.

For further information, please contact:

Media@okx.com

About OKX

OKX is a leading global crypto exchange and Web3 ecosystem. Trusted by more than 50 million global users, OKX is known for being the fastest and most reliable crypto trading app for traders everywhere.

As a top partner of English Premier League champions Manchester City FC, McLaren Formula 1, Olympian Scotty James, and F1 driver Daniel Ricciardo, OKX aims to supercharge the fan experience with new engagement opportunities. OKX is also the top partner of the Tribeca Festival as part of an initiative to bring more creators into web3.

Beyond OKX’s exchange, the OKX Wallet is the platform’s latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens.

OKX is committed to transparency and security and publishes its Proof of Reserves on a monthly basis.

To learn more about OKX, download our app or visit: okx.com

Disclaimer

THIS ANNOUNCEMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE, SELL, OR HOLD DIGITAL ASSETS. DIGITAL ASSETS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. OKX IS NOT REGULATED BY THE FCA, THUS, PROTECTIONS SUCH AS THE FINANCIAL OMBUDSMAN SERVICE OR FINANCIAL SERVICES COMPENSATION SCHEME WILL NOT BE AVAILABLE. YOU SHOULD CONSIDER WHETHER YOU UNDERSTAND HOW CRYPTO WORKS AND WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE VALUE OF YOUR DIGITAL ASSETS, INCLUDING STABLECOINS, CAN INCREASE OR DECREASE AND PROFITS MAY BE SUBJECT TO CAPITAL GAINS TAX. PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

Contact

OKX
media@okx.com

Ripple CEO Brad Garlinghouse Criticizes SEC’s ‘Regulation by Enforcement’

Crypto News Today/DeFi

Ripple CEO, Brad Garlinghouse, has openly criticized the US Securities and Exchange Commission (SEC) following recent comments from the regulator, which suggest a possible appeal in their ongoing case against Ripple Labs.

Garlinghouse reproached the SEC for their “regulation by enforcement” policy on July 23, claiming it serves only to harm retail investors.

Garlinghouse accused the SEC of creating unnecessary chaos, dubbing it the “crypto cop” without any legal authority.

He stressed that this approach had resulted in retail investors being left in bankruptcy court, while the SEC conducted press briefings.

This backlash was in response to the SEC’s recent comments on Ripple, where it indicated a possible appeal against the mixed-decision ruling that went against Ripple Labs.

The regulator, through its ongoing case against Terraform Labs founder Do Kwon, voiced concerns about the decision that retail sales of Ripple’s XRP tokens on exchanges didn’t meet the legal definition of a security.

SEC lawyers argued that this ruling was erroneous and that sales of XRP should have been classified as securities.

They confirmed that SEC staff is contemplating various methods for further review and plans to recommend that the SEC seek such a review.

Garlinghouse found these claims “absurd,” stating that blaming a judge for simply applying the law was unjust.

He highlighted the need for legislation, rather than more regulation by enforcement, to establish clear rules and protect retail investors.

Ripple Labs’ Chief Legal Officer, Stuart Alderoty, also voiced his opinion, stating that explaining XRP isn’t a security is akin to convincing a flat-earther the world is round.

On July 17, SEC Chair Gary Gensler expressed disappointment over the court’s decision regarding the securities status of XRP, indicating that the regulator would continue to examine this judgement.

Despite these ongoing issues, Ripple Labs’ XRP token is currently trading at $0.73, reflecting a nearly 50% increase in value over the past month, according to data from TradingView.

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Ripple Takes Major Step Towards Regulatory Compliance Amid SEC Fight

Crypto News Today/DeFi

Ripple, a payments network and technology company, has taken significant steps towards regulatory compliance by applying for registration as a crypto asset firm with the UK’s Financial Conduct Authority (FCA).

Additionally, the company is seeking a payments license in Ireland, indicating its commitment to investing in the region.

The decision to pursue registration and licensing comes in the wake of a partial victory for Ripple against the United States Securities and Exchange Commission (SEC).

The SEC’s classification of Ripple’s XRP token as a security has been a subject of contention.

The recent ruling determined that while the XRP token could be considered a security when sold to institutional investors, it did not apply to retail investors. Nevertheless, the case remains open to potential appeal by the SEC.

Amid a series of enforcement actions by the SEC in the United States, more crypto firms are turning their attention to the UK for regulatory clarity and a supportive business environment.

Andreessen Horowitz (A16z), a prominent venture capital firm, has even established its first overseas office in London, citing the region’s predictable business environment as a key factor in the decision.

The UK has been actively working on creating a crypto-regulated environment, passing laws that bring cryptocurrencies under the same rules applied to traditional assets.

This legislation received royal assent in June, granting authorities like the UK Treasury, the FCA, the Bank of England, and the Payments Systems Regulator the power to introduce and enforce regulations for crypto businesses.

Furthermore, lawmakers in the UK have been exploring ways to enhance their ability to target cryptocurrencies used for illicit purposes.

Drafts of new legislation propose provisions that allow authorities to have greater flexibility in confiscating and recovering crypto assets associated with illegal activities.

In summary, Ripple’s move to register as a crypto asset firm with the FCA and pursue a payments license in Ireland reflects its commitment to complying with regulations and expanding its presence in the UK and the broader European market.

The region’s efforts towards regulatory clarity and a favorable business environment are attracting more crypto firms seeking stability and growth opportunities amid evolving global regulatory landscapes.

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cheqd Introduces Creds: A Private & Secure Solution To Build Trust and Protect Against AI

Crypto News Today/Press Releases

London, England, July 24th, 2023, Chainwire

cheqd, a start-up creating the trusted data economy, where users and organizations have full control and portability of their data, is launching Creds – a platform for issuing, holding and sharing digital credentials to build portable reputation.

Announced at the Nebular Summit today in Paris, Creds, is a platform to issue digital credentials, or “creds”, which are a portable, reusable, privacy-preserving, and a secure way to prove identity, build decentralized reputation, and establish trust.

Creds addresses a number of Web3 challenges, in particular, community security, engagement, trust, the wave of distrust created by generative AI, and privacy concerns.

Community security, portable trust and decentralized reputation

One of the biggest challenges in Web3 is security. One report shows that crypto scams wiped out nearly $150M in a single week and mass scale distrust in communities. With Creds, projects can confirm personhood and ownership of handles, wallets, and reputation, proving admin and moderator role/status across platforms, including Discord and Telegram, and preventing impersonation, Sybil attacks, and scams. Fake content, news and even people are being supercharged with the advent of generative AI, compounding the issues.

The way to combat this issue is through trust and reputation. Meaning that individuals should be able to build their verifiable reputation and port it across different communities and platforms. Creds allows exactly that with the added feature of privacy, whereas individuals can choose to share one or a collection of credentials for others to verify as real.

Community engagement and gamification

Gamification enhances user engagement and drives customer acquisition and retention. Companies that use gamification are more profitable than those that don’t. Creds adds a reputation layer to community strategy enabling projects and individuals to explore gamification mechanics, such as incentivized quests and learn-to-earn, create unique reputation and trust systems, and increase real engagement.

“More and more organizations are looking to become community-focused to take advantage of the rising community economy. As an example, it’s preferable to have a smaller number of real active community members, or superfans, than to have a group with thousands of bots.”, expands Eduardo Hotta, Head of Marketing & Community at cheqd.

Privacy-preserving

Trust and reputation systems have been tried with the use of Non-Fungible Tokens (NFTs) and SoulBound Tokens (SBTs) with varying levels of success. Creds are different to NFTs and SBTs, as they are private, revocable, and can be taken to different platforms and ecosystems, since all personal data is off-ledger, where it remains private and secure. Data is cryptographically signed and verified by decentralized identifiers (DIDs) on-chain, making it a trusted data.

Fraser Edwards, CEO and Co-founder of cheqd explains: “Creds offers a privacy-preserving alternative to the surveillance enabling tech of SBTs and NFTs where you have little control over your privacy, as activities and other information are written on the ledger making it public and immutable. Creds are collectable, portable, secure and verifiable; it has all the best things that the NFT and SBT have with the addition of everything else they are missing.”

Launch

cheqd kicked off the launch of Creds and its verifiable credentials by issuing creds to attendees at the Nebular Summit. Attendees, with their creds, have a verifiable way to prove they were at the event, without giving up any personally identifiable information about themselves. And, just like an NFT, their creds are collectable and can be kept as a memoir of the event they attended.

Sebastien Couture, Founder of Nebular Summit and Interop Ventures says: “Our goal for Nebular Summit is to showcase the innovative technology emerging from the interchain ecosystem, and offering credentials to all attendees is a really unique and personalized experience to showcase these innovations. We’re excited to build from this first edition and use them to offer future benefits, like early registration to our events throughout the year.”

For further questions or interview requests, please contact Avishay Litani at avishay@marketacross.com.

creds.xyz

About cheqd

cheqd (cheqd.io) is a privacy-preserving payment and credential network that allows users and organisations to gain control and portability of their data. cheqd builds upon Decentralised Identity, Self-Sovereign Identity (SSI), and Digital or Verifiable Credentials (VCs) with payment infrastructure to create Trusted Data markets as an entirely new industry category. Put simply, you can now issue credentials and get paid to do so.

With its technology, cheqd is creating a new paradigm around Trusted Data economies such as lending markets in Web3, preference data markets, and others where the user is at the centre. It empowers consumers and businesses with full ownership, portability, and control over their data and identities. In addition, this data can be transacted within a cutting-edge payment network that prioritises individual privacy and market-first principles. The scale of distribution is unmatched as cheqd engages with organisations across Lending, Supply Chain, eCommerce, Education, Manufacturing, Gaming and other sectors.

cheqd also features a decentralised reputation platform (creds.xyz) to incentivise and engage Web3 communities though learning credentials, as well as protect users from fraud and scamming across Discord, Telegram and beyond.

cheqd.io

Contact

Avishay Litani
MarketAcross
avishay@marketacross.com

Potential SEC Appeal Won’t Significantly Impact XRP Market

Crypto News Today/DeFi

Pro-XRP lawyer John Deaton has reassured XRP holders that any potential appeal by the United States Securities and Exchange Commission (SEC) would not significantly impact the XRP market.

Following the judge’s ruling that the sale of XRP tokens through exchanges does not classify them as securities, concerns arose about the legal implications if the SEC were to challenge the decision.

Representing over 75,000 XRP tokenholders, Deaton explained the possible scenarios and complexities surrounding the enforcement of the summary judgment.

The SEC’s recent filing regarding the case against Terraform Labs CEO Do Kwon indicated their intention to request a review of the Ripple lawsuit decision, as Kwon aimed to use it as a precedent to argue against digital assets’ classification as securities.

Deaton suggested that the appeal process could extend over two years, during which the summary judgment would continue to be the governing law.

However, the timing of the SEC’s initiation of the appeal process remains uncertain.

Stuart Alderoty, chief legal officer at Ripple, weighed in on the ongoing discussion about the SEC’s authority over tokens, asserting that the agency’s jurisdiction should be limited to securities.

He argued that if a token is not classified as a security, the SEC should not have a regulatory role over it. Attempting to claim jurisdiction where none exists would be a political power move with no real benefits and potentially harm everyone involved.

Judge Analisa Torres’ ruling on July 13 clarified that XRP tokens are not securities when sold on retail digital asset exchanges.

Nevertheless, the decision was not entirely in Ripple’s favor, as they were found to have violated securities laws when offering XRP to hedge funds and other institutional buyers.

In conclusion, despite the SEC’s potential appeal, Deaton believes that the summary judgment will continue to hold during the appeal process, providing a favorable outcome for XRP and its holders.

Meanwhile, the debate over the SEC’s authority over tokens and digital assets remains ongoing, with stakeholders emphasizing the importance of clear regulatory boundaries to foster a healthy crypto market.

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SEC Contemplates Appeal Over Controversial XRP Ruling

Crypto News Today/DeFi

The United States Securities and Exchange Commission (SEC) is considering the possibility of appealing a recent ruling in the case against Ripple Labs, which determined that XRP (XRP) is not classified as a security when sold to retail investors.

The SEC is arguing that this ruling contradicts “fundamental securities laws principles,” including the Howey test, which is used to ascertain if something falls under the category of an investment contract.

The recent comments from the SEC on the Ripple Labs lawsuit were made during a separate lawsuit involving Terraform Labs and its founder, Do Kwon, who are accused of orchestrating a multi-billion dollar crypto asset securities fraud.

In response to a motion to dismiss from Terraform Labs, where the Ripple Labs ruling was referenced by the defendants, the SEC pointed out various issues it has with the court’s decision on XRP.

The SEC acknowledged that parts of the Ripple ruling support its claims in the Terraform Labs case but disagreed with the aspects related to the Programmatic and other sales.

The SEC stated that these portions of the Ripple ruling were wrongly decided, and it does not want the court to follow them.

The SEC staff is considering available options for further review and intends to recommend that the SEC seek such review.

The SEC Chair, Gary Gensler, expressed disappointment over the court’s classification of XRP as not being a security when sold to retail investors.

He mentioned that while the court recognized XRP as a security for institutional investors, he was unhappy with the ruling regarding retail investors. The SEC is still evaluating the matter.

In a talk on artificial intelligence, Gensler was questioned about the need for clear regulations in the industry, to which he did not provide a specific answer.

It’s worth noting that the SEC’s stance on the Howey test has been questioned, as the agency’s own website has acknowledged that federal courts require commonality, but the SEC itself does not view commonality as a distinct part of Howey in its analysis.

In conclusion, the SEC is considering the possibility of appealing the ruling that XRP is not a security when sold to retail investors, arguing that it conflicts with established securities laws principles.

The agency’s statements come in the wake of its disappointment with the court’s decision and raise questions about the need for clearer regulations in the industry.

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XRP’s Price Surges 100% After Landmark SEC Ruling, but Challenges Await in Holding Gains

Crypto News Today/DeFi

XRP’s price experienced an astonishing 100% surge on the same day as the landmark ruling in the XRP securities case, where Judge Analisa Torres of the United States District Court for the Southern District of New York declared that XRP sales to retail investors do not classify the token as a security in the SEC’s case against Ripple.

This ruling reignited trading interest in XRP, leading to a surge in open interest volume for XRP futures contracts, which reached a high of $1.19 billion on July 20, the highest point since November 2021.

The surge in trading interest and the relisting of XRP on prominent U.S.-based exchanges, such as Gemini and Coinbase, boosted market sentiment.

However, despite the positive developments, network growth for XRP has not seen a corresponding increase.

The number of transactions on the XRP Ledger has remained steady for over a year, indicating a lack of new entities actively participating in the network.

Ripple, following its partial victory in the lawsuit, is striving to boost adoption of the XRP Ledger.

The company has invested $54 million in a metaverse project called Futureverse and plans to rebuild its relationships with banks, aiming to facilitate low-cost global payments.

These initiatives are expected to promote network growth and serve as positive catalysts for the market.

From a technical perspective, the XRP/USD pair faces resistance from a long-term bearish trendline dating back to the 2018 peak.

A weekly close above this level could strengthen investor sentiment and potentially mark the end of the bearish trend.

However, if buyers fail to sustain the bullish momentum, XRP/USD might revisit support around $0.54 before making another upward move.

Similarly, the XRP/BTC pair is also encountering resistance between 0.00002533 BTC and 0.00003341 BTC, a level that has proven challenging to breach since 2019.

Failure to establish support above this level could lead the pair back to support around 0.00001555 BTC.

Despite the positive regulatory developments and technical progress, there are indications of potential short-term pullbacks due to the significant volatility exhibited by XRP, given its futures open interest reaching over $1 billion.

The funding rate for perpetual swaps has trended positively since the court ruling, suggesting an increase in long positions, which raises the possibility of a correction to liquidate overleveraged buyers.

However, considering the positive regulatory landscape, technical advancements, and the token’s popularity among retail users, it is plausible that XRP’s long-term negative trend may conclude in the coming weeks with the advent of positive catalysts related to mainstream adoption of XRP.

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Cerebras Systems Secures $100 Million Deal to Deploy Cutting-Edge AI Supercomputers in the UAE

Crypto News Today

Cerebras Systems, a Silicon Valley-based company, has secured a substantial deal worth approximately $100 million with G42, a technology group headquartered in the United Arab Emirates (UAE).

The agreement encompasses the provision of an initial installment of an artificial intelligence (AI) supercomputer, with the potential of delivering up to nine more units, as stated in a press release on July 20.

G42 has committed to obtaining three Condor Galaxy systems from Cerebras, which form an innovative network comprising nine interconnected supercomputers.

The first supercomputer in this network, known as Condor Galaxy 1 (CG-1), boasts an impressive performance of 4 exaflops and is built on a framework of 54 million cores.

To expedite deployment, the manufacturing of these systems will take place in the United States. The first supercomputer, CG-1, is slated to be operational by the end of this year, while CG-2 and CG-3 are expected to go online in early 2024.

The timing of this agreement is significant, as cloud computing providers worldwide are actively seeking alternatives to Nvidia chips, which currently dominate the AI computing market.

With Nvidia’s products facing shortages due to high demand from AI services like ChatGPT and others, Cerebras and other startups are striving to challenge Nvidia’s market dominance in the AI computing sector.

Cerebras CEO Andrew Feldman revealed that discussions are already underway for the potential acquisition of up to six additional supercomputers by late 2024.

The company, in collaboration with G42, aims to expand the supercomputer network, with plans to establish an impressive 36 exaflops of AI computing power in the coming year.

To support the advancement of its computing services using the supercomputers, Feldman expressed his intention to relocate to the UAE for three months, working closely with G42.

He views this endeavor as a “rare opportunity to revolutionize a massive market.”

G42, based in Abu Dhabi, intends to leverage the Cerebras systems to offer AI computing services to healthcare and energy companies.

In response to inquiries, Cerebras has not yet provided further details on the terms of the deal or its future plans.

Overall, this partnership between Cerebras and G42 represents a significant move in the AI computing industry, as it not only addresses the current challenges posed by chip shortages but also seeks to expand and revolutionize the potential of AI computing services.

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