A roundup of the week’s crypto news, as Grayscale sues the SEC, Brazil’s largest neo bank launches crypto custody, Anonymous threatens Terra CEO Do Kwon, and centralized exchange CoinFLEX wonders if they did the right thing by gifting an unbacked $47 million loan to a famous crypto personality.
Grayscale sues SEC
Grayscale stole the week’s crypto news by launching a lawsuit against the SEC following the rejection of the company’s Bitcoin ETF proposal. The company are suing the SEC on the basis that the government body is failing to apply consistent treatment to similar investment products and that it is acting arbitrarily.
Grayscale’s legal action follows that of Ripple, with the global settlements company also battling it out with the SEC in the US courts.
In other regulation news, U.S government regulators announced that they are developing stablecoin legislation with the aim of signing it into law before the end of the year, and Jerome Powell confirmed that the Fed would provide Congress with guidance on creating a United States CBDC.
Crypto adoption growing
Brazil’s Nubank has opened up crypto to 53.9 million Brazilians by rolling out the ability to buy, sell and hold BTC / ETH to its customers. As with other neo banks such as Revolut, customers will not initially be able to transfer the crypto to and from their wallets, but this function may be added in the near future (a la Paypal.)
Meanwhile Russia continues its love / hate relationship with crypto by passing a law that makes cryptocurrencies exempt from value-added-tax. This comes just months after the Russian Central Bank proposed an outright ban on the use of cryptocurrencies and mining in the country.
Anonymous hunts Do Kwon
In degen news, cyber vigilantes Anonymous released a video threatening Do Kwon, citing rumors that the Terra CEO was cashing out over $80 million per month before the ecosystem crashed so spectacularly.
FTX’s Sam Bankman-Fried has noped out of a potential purchase of Celsius Network after seeing that the CeFi company’s balance sheets have somewhat of a $2 billion hole (talk about pedantry, jeez).
But FTX is apparently close to buying fellow CeFi strugglers BlockFi, although the CEO of BlockFi has denied that they are being sold for the reported, bargain bin price of $25 million. SBF also warned crypto investors (during a Forbes interview) that many smaller exchanges are “secretly insolvent”.
Not your keys, not your crypto. There’s literally never been a better time to take your funds off centralized exchanges and store them in a self-custodial wallet like Exodus.
And finally… CoinFLEX gifting loans
Last week, CoinFLEX did a Celsius by pausing customer withdrawals.
This week, It emerged that the centralized crypto exchange were compelled to smaug their customer funds in order to protect one of their “long time customers who went into negative equity”.
Turns out that the exchange had given an uncollateralized loan of $47million to Bitcoin Cash founder Roger Ver.
But it’s okay, our guy Rog says he’s good for it, and he’ll probably pay it back. Right? Right?
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.