• Coinbase is reportedly considering setting up a non-U.S. crypto trading platform to expand its services globally.
• This comes as U.S. regulators are increasing their actions against the crypto sector in the wake of FTX’s collapse and the shutdown of three crypto-friendly banks.
• Coinbase is not alone in its considerations, as other U.S.-based firms are also looking for new banking partners outside the United States.
Coinbase Weighs Setting Up Non-U.S Trading Platform
U.S.-based cryptocurrency exchange Coinbase is reportedly exploring the possibility of launching a crypto-trading platform overseas to expand its services internationally.
Regulatory Action Against Crypto Sector Intensifying
This move comes amid an accelerated effort by U.S regulators to crack down on the crypto sector following November’s collapse of crypto exchange FTX and the subsequent shutting down of three crypto-friendly banks: Silvergate Bank, Signature Bank and Silicon Valley Bank.
Other Crypto Firms Looking For New Banking Partners
Coinbase is not alone in this consideration, as other American cryptocurrency companies are also searching for new banking partners outside of the United States.
Coinbase Discussing Plans With Institutional Clients
The company has been discussing these plans with institutional clients but has yet to decide on a specific location for such a trading platform.
Coinbase Aims To Increase Global Crypto Adoption
A spokesperson for Coinbase told CoinDesk that it aims to increase global adoption of cryptocurrencies and is “meeting with government officials in high-bar regulatory jurisdictions.”
Hedera Network Services Shut Down After ‘Irregularities’ – HBAR Price Plummets
• Hedera, a decentralized proof-of-stake ledger, has shut down network services after revealing it has been experiencing “network irregularities.”
• The price of the platform’s native token HBAR has fallen 7% since the news.
• There is speculation that hackers may have attacked the platform, but this has not been confirmed by Hedera.
Hedera Shuts Down Services After ‘Network Irregularities’
Hedera, a decentralized proof-of-stake ledger, has shut down network services after revealing it had been experiencing “network irregularities”. The report of this irregular activity has fueled speculation across social media platforms that hackers may have attacked the platform; however, Hedera has neither confirmed nor denied these rumors. The price of Hedera’s native token HBAR has fallen 7% to roughly 6 cents since the news.
Cause of Irregularities Unknown
The cause of these irregularities had not been ascertained at time of publication. DeFi research firm Ignas tweeted that “the exploit is targeting the decompiling process in smart contracts” and advised users to get their funds out now.
Hedera to Re-Enable Network Proxies
Hedera will re-enable network proxies when the issue is resolved according to its tweet. In an abundance of caution and safety for users they are turning off network proxies on mainnet making it inaccessible until further notice.
Join The Node Newsletter
Cross-Chain Protocol Swing Launches ‘No-Code’ Product to Speed Up App Deployment
• Swing, a cross-chain liquidity protocol, has released a new “no-code” product to reduce the time needed to deploy and update decentralized applications across multiple blockchains.
• The new product, Swing Platform, will be provided to developers during ETHDenver and can update configurations and deploy updates without changing the code.
• Chainalysis estimated the cost of hacks and other thefts from cross-chain bridges at $2 billion during just the first eight months of 2022.
Swing’s No-Code Product to Speed Up App Deployment
Decentralized applications that straddle multiple blockchains are becoming more common, though the cross-chain “bridges” often used to move digital assets back and forth between the different networks are frequently targeted by hackers. Swing, a cross-chain liquidity protocol, released a new “no-code” product it says will reduce the time needed to deploy and update decentralized applications across multiple blockchains.
Features of Swing Platform
The new product, Swing Platform, will be provided to developers during ETHDenver, a major conference for Ethereum developers. A key benefit is that developers can update configurations and deploy updates without changing the code. Use cases for this product include propagating fast updates of cross-chain applications in “critical scenarios when it’s necessary to disable a particular token or bridge due to a security flaw,” according to Swing.
Costs of Cross-Chain Bridge Hacks
Chainalysis estimates that costs of hacks and other thefts from cross-chain bridges amounted up to $2 billion during just the first eight months of 2022. This emphasizes how important it is for companies using these devices have quick response times in order protect their assets from theft or damage due to security flaws. With no coding required when using Swing Platform this could significantly speed up response times compared traditional methods where coding must be done manually every time an incident arises.
Benefits of Using Swing Platform
Viveik Vivekananthan founder of Swing said “Launching and maintaining a cross-chain application is generally fraught with risk and off limits too all but best funded developer teams” suggesting that this platform would greatly benefit smaller businesses who may not have access or resources for expensive development teams as well as reducing costs by not having too hire additional personnel specifically for such tasks as maintenance or configuration updates.
Swing’s no code platform offers great potential for businesses looking into deploying decentralized apps across multiple blockchains with its cost benefits as well as speed capabilities making it an attractive option for many organizations looking into these services
Coinbase Launches Layer 2 Blockchain Base: On-Ramp for Ethereum, Solana and More
• Coinbase launched Base, an Ethereum layer 2 network built on Optimism’s OP Stack
• The new network provides easy and secure access to Ethereum, Optimism, Solana and other blockchain ecosystems
• Base will help attract millions of new crypto users in the coming years
Coinbase Launches Layer 2 Blockchain
Coinbase (COIN) has announced the launch of its layer 2 blockchain Base. Built on Optimism’s OP Stack, Base is a secure and low-cost way for anyone to build decentralized apps or “dapps” on-chain. The testnet for Base was started by Coinbase on Thursday.
Base Provides Access to Ethereum, Optimism and Solana
With the launch of Base, Coinbase is joining Optimism as a core developer on their open source OP Stack – a toolkit for building applications on the Optimism network. While primarily designed for Ethereum, it also provides access to other layer 2 networks such as Solana and Optimism. It is expected that this will help attract millions of new crypto users in the coming years.
Core Developer For Optimism’s Open Source Toolkit
Coinbase has become a core developer for Optimism’s open source toolkit which makes it easier to build applications on their network. This will enable developers to use the same code base across multiple blockchains while maintaining security and reducing costs associated with development. By providing this additional layer of security and scalability, Coinbase hopes that it can draw more developers into building applications using their platform.
Necessary Steps To Attract Millions Of New Crypto Users
In order to attract millions of new crypto users in the coming years, Coinbase needs to take certain steps such as increasing liquidity through better fiat currency support; providing educational resources; creating an intuitive user experience; offering more financial services such as lending products; improving customer support; investing in marketing efforts; and increasing transparency around fees charged by exchanges.
Overall, Coinbase’s launch of Base represents an important step towards further mainstream adoption of cryptocurrencies. With its advanced features such as increased security, scalability and low cost access, Coinbase hopes that it can draw more people into using cryptocurrencies than ever before.
Celsius CEL Token May See 20-Cent Value in Recovery Process, Attorney Says
• The native token of the now-defunct crypto lender Celsius Network, CEL Token, has a market value of 54 cents.
• Celsius’s attorneys are attempting to find a fair way to compensate CEL token holders without rewarding insiders who have enormous holdings.
• An attorney for Celsius said the company might value its CEL token at 20 cents during the recovery process.
Celsius’s CEL Token
The native token of the now-defunct crypto lender Celsius Network currently has a market value of 54 cents. The token once traded at an all-time-high of $8.02 – which regulators and Celsius’ independent examiner now say was the result of price manipulation meant to benefit insiders, including former CEO Alex Mashinsky.
Fair Value for CEL Token Holders
Lawyers for Celsius are trying to figure out how to compensate CEL token holders without rewarding insiders who have enormous CEL holdings. It is their intention that these insiders would not receive any recovery or distribution on account of their holdings in the CEL tokens. If they were to value CEL tokens at the price of petition date, it would take away value from other cryptocurrency holders’ recoveries as well.
Recovery Price Suggestion
An attorney for bankruptcy crypto lender Celsius Network said that they may value its CEL token at 20 cents during the recovery process, significantly down from its current market value of 54 cents. This suggestion did not sit well with some attending creditors who bought in at all time highs rather than 20 cents.
Price Manipulation Allegations
Regulators and Celsius’s independent examiner allege that the all-time high price was a result of price manipulation meant to benefit insiders such as former CEO Alex Mashinsky and other large stakeholders with enormous amounts in their holdings in terms of percentage ownership and absolute dollar amount held in comparison with retail investors who hold smaller amounts relative to larger holders..
Celsius’s attorneys are still wrestling with how best to compensate its creditors fairly while also not rewarding those responsible for manipulating prices or those holding large amounts relative to retail investors. A suggestion has been made that values its native token, the CEL Token, at 20 cents during the recovery process which is significantly lower than its current market value but this is yet to be finalized by higher authorities or courts involved in this case
Sam Bankman-Fried Appeals Judge’s Decision to Reveal $250M Bond Backers
Sam Bankman-Fried Appeals Judge’s Decision to Reveal Names of His $250M Bond Backers
- Former FTX CEO Sam Bankman-Fried has appealed a judge’s decision to allow the identities of the two currently unidentified people who co-signed his $250 million bail bond to be made public.
- U.S. District Judge Lewis Kaplan ruled early last week in favor of four separate petitions by a number of news organizations seeking the names of these individuals.
- Now that an appeal has been filed, Kaplan’s ruling has been stayed until at least Feb. 14.
Former FTX chief Sam Bankman-Fried had requested a modification to his bail conditions which would have allowed him to use certain messaging tools, but U.S. District Judge Lewis Kaplan rejected this request and denied it without prejudice until a hearing on Thursday. A slew of media companies had then filed suit to get the court to release the identities of the two people who co-signed Bankman-Fried’s bond, saying that “the public’s interest in this matter cannot be overstated”.
Bankman-Fried subsequently filed an appeal against this ruling on Tuesday, resulting in Kaplan’s decision being stayed until at least February 14th. The former FTX CEO’s lawyers had argued that there was potential for physical threats towards those parties involved if their identities were revealed.
Judge RulingEarly last week, Judge Lewis Kaplan from U.S District Court in Southern New York ruled in favor of four separate petitions from media outlets such as Wall Street Journal, Bloomberg and CoinDesk for identifying co-signers on Bankman Fried’s $250 million bail bond – apart from his parents already known publicly . This ruling was intended not only for identifying them , but also allowing access information about them .
Public InterestThe news organizations stated that “the public’s interest in this matter cannot be overstated” and argued that it should not remain anonymous any longer . They argued because it is important to know who are supporting such high amount bails bonds , especially when they are connected with well known personalities like Sam Bankman Fried .
DOJ Seeks to Block FTX Founder Sam Bankman-Fried From Messaging Apps
• Federal prosecutors have requested that a communications ban be imposed on FTX founder Sam Bankman-Fried as part of his bail conditions.
• The DOJ alleges Bankman-Fried messaged FTX US General Counsel Ryne Miller on Signal, asking to reconnect and “vet things with each other.”
• The request seeks to prevent Bankman-Fried from using “any encrypted or ephemeral call or messaging application, including Signal, Wickr, Telegram, or WhatsApp.”
Sam Bankman-Fried, the founder of crypto derivatives exchange FTX, may soon be barred from using certain messaging applications if a court agrees to the Department of Justice’s (DOJ) latest request. On Friday, prosecutors asked U.S. District Court Judge Lewis Kaplan to modify the conditions of Bankman-Fried’s bail to include a ban on private communications with current and former employees of FTX and Alameda Research.
The DOJ’s request follows reports that Bankman-Fried attempted to influence the future witness testimony of at least one FTX employee – identified as Ryne Miller, the current general counsel for FTX US – by messaging him on a private communication platform. According to a court document filed by prosecutors on Friday, Bankman-Fried messaged Miller on Signal, asking to reconnect and “vet things with each other.”
The DOJ’s request seeks to prevent Bankman-Fried from using “any encrypted or ephemeral call or messaging application, including Signal, Wickr, Telegram, or WhatsApp.” The court document also states that Bankman-Fried will only be allowed to contact current and former employees of FTX and Alameda Research if “such communication is made in the presence of counsel for the defendant.”
It is unclear exactly why the DOJ is seeking to impose a communications ban on Bankman-Fried, but the request follows several other high-profile cases involving the alleged manipulation of cryptocurrency markets. Bankman-Fried has not been charged with any wrongdoing, but the DOJ’s request suggests that prosecutors may be investigating potential attempts to tamper with witness testimony.
A hearing has been scheduled for February 8th to discuss the DOJ’s request. It is unclear whether the court will grant the request, but if it does, it could have far-reaching implications for crypto exchanges and their founders. Should the court grant the request, it could set a precedent for similar cases in the future.
DOJ Seizes Small Crypto Exchange, Bitcoin & Ether Prices Drop 5%
• The U.S. Department of Justice (DOJ) made an announcement that caused the prices of Bitcoin (BTC) and Ether (ETH) to drop 5%.
• The announcement was about the seizure of a little-known crypto exchange.
• Critics have accused the DOJ of hyping up the news to distract from other major issues in the crypto industry.
The U.S. Department of Justice (DOJ) has been in the news lately for its involvement in the crypto industry. On Wednesday, the DOJ made an announcement that caused the prices of Bitcoin (BTC) and Ether (ETH) to drop 5%. The announcement was about the seizure of a little-known crypto exchange.
Critics have accused the DOJ of hyping up the news to distract from other major issues in the crypto industry. This includes the collapse of major crypto exchange FTX, the destabilization of crypto conglomerate Digital Currency Group, and a massive, multi-year investigation into Binance, the world’s largest exchange by volume.
The DOJ’s announcement caused a lot of confusion among the crypto community. Many people didn’t understand why the DOJ was focusing on a small crypto exchange when there were much larger issues in the industry.
The DOJ responded to these criticisms by saying that it was important to make sure that the crypto industry was being regulated properly. They argued that shutting down a small crypto exchange would help to deter other exchanges from operating illegally.
The DOJ also said that this seizure was part of their ongoing efforts to make sure that the crypto industry is safe and secure. They have been working with other regulators and law enforcement agencies to investigate the industry and take action against those who are breaking the law.
The DOJ’s announcement was met with both praise and criticism from the crypto community. Some people praised the DOJ for taking action against illegal activity in the crypto industry, while others criticized them for focusing on a small exchange when there were bigger issues that needed to be addressed.
Ultimately, the DOJ’s announcement was a reminder that regulators are taking the crypto industry seriously and are working hard to ensure its safety and security. While it may have caused some confusion and controversy, it is an important step in the right direction.
Crypto Advice: Financial Pros Must Heed Warnings, Guidelines
1. The Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have recently issued warnings and guidelines regarding cryptocurrency investing and advice.
2. The CFP Board released a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets” in November, outlining the best practices and compliance requirements that CFP holders need to adhere to.
3. Federal regulators such as the Securities and Exchange Commission and the Department of Labor as well as Finra, the largest independent industry regulator, have also issued warnings and guidelines regarding cryptocurrency investing.
The cryptocurrency industry has been under increased scrutiny from both government regulators and financial industry organizations in recent years. The Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have recently issued warnings and guidelines regarding cryptocurrency investing and advice.
The CFP Board released a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets” in November, outlining the best practices and compliance requirements that CFP holders need to adhere to. This includes an obligation to disclose all material facts related to any investments or advice provided. The document also states that CFP professionals must “use reasonable diligence, care, skill and prudence when providing financial advice about cryptocurrency-related assets”.
The CFA Institute also issued guidelines for those who hold the Chartered Financial Analyst (CFA) designation. The organization stated that CFA holders must “consider all relevant risks, including but not limited to, market, liquidity, operational, legal, regulatory, reputational, and accounting risks” when providing advice or making investment recommendations related to cryptocurrencies.
In addition to the warnings issued by the CFP Board and CFA Institute, federal regulators such as the Securities and Exchange Commission and the Department of Labor as well as Finra, the largest independent industry regulator, have also issued warnings and guidelines regarding cryptocurrency investing. The SEC has issued several investor alerts, cautioning investors against potential fraud, market manipulation, and other risks associated with cryptocurrencies.
Given the increased attention on cryptocurrencies, advisors and other financial professionals should take heed of the warnings and guidelines issued by the CFP Board, CFA Institute, and other regulatory bodies. Financial advisors should make sure to conduct due diligence and understand the risks of investing in cryptocurrencies before recommending any investments. Additionally, advisors should ensure that they are in compliance with all applicable laws, rules, and regulations when providing investment advice. Furthermore, advisors should be sure to disclose all material facts related to any investments or advice provided. By doing so, advisors can help protect their clients from potential risks and ensure that their advice is provided in an ethical and compliant manner.
DCG and Gemini in Dispute Over Crypto Lending, Lumida CEO Weighs In
• Digital Currency Group’s (DCG) Genesis Global Trading has become involved in a dispute with Gemini, its partner in a crypto lending product.
• DCG is reportedly looking to sell some of its venture-capital portfolio, worth around $500 million, to help pay off the creditors of its troubled crypto lender Genesis, who owe over $3 billion.
• Lumida CEO and co-founder Ram Ahluwalia has weighed in on the tensions between DCG and Gemini.
Digital Currency Group (DCG)’s subsidiary, Genesis Global Trading, is currently involved in a dispute with Gemini, its partner in a crypto lending product. The disagreement has led Gemini to terminate a key aspect of their relationship. The situation has become even more complicated as DCG is now reportedly looking to sell some of its venture-capital portfolio, worth around $500 million, to help pay off the creditors of its troubled crypto lender Genesis, who owe over $3 billion.
The Financial Times has reported that Genesis’ creditors are owed over $3 billion, prompting DCG to look for ways to pay the debt. As a result, the company is considering offloading some of its venture capital portfolio, which is estimated to be worth around $500 million. It is unclear what the exact details of the arrangement would be or who would be willing to purchase the assets.
Lumida CEO and co-founder Ram Ahluwalia has weighed in on the escalating tensions between DCG and Gemini. He believes that the situation is not a good one for either side, but that the dispute could be resolved through a compromise. He also noted that the situation could have a negative impact on the entire crypto industry if left unresolved.
The dispute between DCG and Gemini has caused a great deal of uncertainty in the crypto world. While it is unclear what the outcome of the dispute will be, it is certain that it will have a lasting impact on the industry as a whole. The events have also raised questions about the reliability of the crypto lending industry, as well as the trustworthiness of DCG and its subsidiary, Genesis.
It is likely that the dispute will be resolved in the near future, as both parties continue to search for a solution. In the meantime, investors should take extra caution when considering any investment in the crypto industry, as the events of the past few days have shown that the industry is still subject to various risks.