3AC liquidators file motion to hold Kyle Davies in contempt
Cointelegraph.com News (RSS)

Civil sanctions against 3AC's co-founder Kyle Davies include an award of attorneys’ fees and a $10,000 daily fine until compliance with a subpoena.

Dmitri Cherniak's 'The Goose' NFT Sells at Sotheby's Auction for $5.4M
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

The NFT was purchased by 3AC co-founders Su Zhu and Kyle Davies in August 2021 for about 1,800 ETH – worth roughly $5.8 million at the time.

Bitcoin Regains Ground to Reach $25.2K, but Investors Remain Jittery About U.S. Economy, Monetary Policy
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

Tether’s USDT stablecoin loses its $1 peg, while other major cryptos spend their day in red territory.

BlackRock's iShares Files Paperwork for Spot Bitcoin ETF
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

The SEC has rejected numerous attempts by other fund companies to launch a spot bitcoin ETF.

Sotheby's Second 3AC NFT Sale Nets $10.9M, With 'The Goose' Alone Netting $6.2M
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

Ringers #879, a seminal NFT artwork often referred to as "The Goose," far outpaced estimates and sold for $tk.

Sotheby's auctions off Dmitri Cerniak's 'The Goose' NFT from 3AC collection for $6.2M
Cointelegraph.com News (RSS)

Su Zhu and Kyle Davies originally purchased 'The Goose' digital artwork in August 2021 for roughly $5.8 million in Ether.

Fed, SEC investigate Goldman Sachs over Silicon Valley Bank's securities portfolio: Report
Cointelegraph.com News (RSS)

Both regulatory bodies are inquiring into the activities of Goldman Sachs during its unsuccessful capital raise preceding the downfall of Silicon Valley Bank.

‌Coinbase and cash app partner to empower self-custody with Jack Dorsey’s Bitcoin wallet
Cryptopolitan (RSS)

Two major companies in the crypto industry, Coinbase, and Cash App, have announced that they will be integrating Jack Dorsey’s Bitcoin self-custody wallet. This partnership is a monumental advance in the widespread use of decentralized finance, giving investors greater discretion over their digital possessions.

The expanding use of self-custody wallets

With more and more people desiring to take complete charge and ownership of their digital assets, self-custody wallets have become increasingly popular. To use a conventional crypto exchange, consumers must place their faith in the platform to safely store their funds. The risk of having one’s cash stolen or lost in the event of a platform failure or hack has led some to question the wisdom of the centralized custody model.

Block (SQ), Jack Dorsey’s FinTech firm, will connect its new Bitkey self-custody bitcoin wallet to Cashapp, its financial services platform, and Coinbase, an exchange for bitcoin and other cryptos. Wallet public beta testing will begin in the following weeks, and a complete global release is planned for later this year, the business announced in a blog post published on Wednesday.

Cashapp is Block’s financial services platform that offers payments, equities, and bitcoin all in one app. At the same time, Coinbase is the largest crypto exchange in the U.S. Users of Bitkey can now use the wallet’s app to purchase and sell bitcoin (BTC) through Cashapp and Coinbase.

🚨 BREAKING: Both #Coinbase $COIN and Cash App have announced plans to integrate Jack Dorsey's self-custody wallet for #Bitcoin – Coinbase Blog
— BecauseBitcoin.com (@BecauseBitcoin) June 15, 2023

The Bitcoin hardware wallet BitKey was created by Block, formerly known as Square, and linked to Jack Dorsey. BitKey was announced previously; however, the wallet is now unavailable to the general public. In the United States, Canada, the United Kingdom, Brazil, Australia, and other worldwide regions, the full suite of Bitkey products is scheduled to debut later this year.

Coinbase and Cash App approve a self-custody wallet

There are several benefits for users when Dorsey’s Bitcoin self-custody wallet is integrated with Coinbase and Cash App. First and foremost, it eliminates the need for a centralized repository for Bitcoin and instead enables users to store their holdings in private wallets. Users can rest easy knowing that they are the sole proprietors of their own money.

Furthermore, this integration is consistent with the decentralization and user autonomy that fuel the Bitcoin movement. Coinbase and Cash App’s self-custody feature promotes a more equitable financial system by making Bitcoin more widely available.

When the wallet is released, customers can purchase Bitcoin through the Cash App and Coinbase.

Our strong belief is that self-custody is the best place to hold and manage your Bitcoin […] If anything goes wrong with a custodial platform, you know that—this industry has had a lot of ups and d...

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‌Binance.US implements staff reductions as legal battle with SEC looms
Cryptopolitan (RSS)

Binance.US, the United States affiliate of cryptocurrency exchange Binance, has reportedly laid off a portion of its workforce in response to the legal action taken by the U.S. Securities and Exchange Commission (SEC) against both entities. The SEC lawsuits alleging the offering of unregistered securities have compelled Binance.US to transition into a “crypto-only exchange,” leading to the decision to downsize its teams and reduce expenditures.

The management of Binance.US described the SEC as a “politically motivated regulator” that necessitated the transition to a crypto-exclusive focus. While the exchange had aimed to avoid this scenario, it found itself compelled to take this step due to the circumstances arising from the lawsuits. Binance.US expressed regret over the departures of the affected employees and pledged to assist in their transition.

Reports indicate that around 50 positions have been eliminated, according to sources cited by Reuters. Binance.US’s LinkedIn page previously listed the company as employing 487 individuals. The SEC’s legal action against Binance.US, Binance, and its founder and CEO, Changpeng “CZ” Zhao, alleges the offering of unregistered securities to the general public. Although the SEC sought a temporary restraining order to freeze Binance.US’s assets, a judge declined the order, allowing the exchange to continue operating in the United States.

Preparing for legal battles and consequences

The job cuts at Binance.US come as the company prepares for an anticipated lengthy and costly legal battle with U.S. regulators. In a letter addressed to its employees, the exchange’s management explained that the reduction in team sizes was necessary to align with the company’s preparations for a protracted litigation process. As a virtual company with no headquarters, Binance refers to its principal place of business for Binance.US as Miami, according to the SEC complaint.

Binance.US has faced various challenges in recent times. Earlier this month, the exchange disclosed that it was being cut off by its payment and banking partners, forcing it to convert into a crypto-only platform. The SEC’s actions last week accused Binance.US and Binance Holdings Ltd., the operator of the larger Binance.com, of mishandling customer funds, misleading investors and regulators, and violating securities regulations. Both companies have disputed the allegations.

In a recent development, Binance.US and the SEC have agreed to work towards a resolution that avoids a complete freeze of assets on the cryptocurrency trading platform. Binance.US has emphasized that an asset freeze would effectively shutter its operations.

As the legal battle between Binance.US and the SEC unfolds, the cryptocurrency exchange is grappling with the need to navigate these challenges while striving to protect its business interests and reputation within the crypto industry.

‌UN Secretary-General champions the regulation of AI technology
Cryptopolitan (RSS)

Generative AI, the latest form of artificial intelligence, has ignited high-level discussions among world leaders, prompting the UN Secretary-General António Guterres, to join the growing chorus of voices advocating for the regulation of this technology. Guterres expressed deep concern over the potential dangers posed by generative AI, comparing it to the existential threat of nuclear war.

UN Secretary-General proposes the regulation of AI technology

In a press conference held on Monday, Guterres highlighted the alarming warnings from scientists and experts about the risks associated with AI. He emphasized the need for swift action and urged the international community to take these warnings seriously. To address this issue, Guterres announced his intention to establish an AI advisory board comprising experts and scientists from the International Telecommunication Union (ITU) and the Educational, Scientific, and Cultural Organization (UNESCO).

Coinciding with Guterres’ statements, the United Nations released a report titled “Information Integrity on Digital Platforms,” which underscored the importance of responsible AI usage and highlighted concerns about the use of deep fakes in conflict zones. Additionally, the European Parliament passed what it heralds as the world’s first-ever AI legislation, signaling a proactive approach to governing this rapidly advancing technology.

While the UN Secretary-General acknowledged the criticality of artificial intelligence, he cautioned against overlooking the damage already being caused by digital technology. He drew attention to the proliferation of hate speech and misinformation online, stressing that these issues are presently fueling conflicts, undermining democracy, and posing threats to public health and climate action.

European Parliament passes landmark AI legislation

Inspired by the International Atomic Energy Agency (IAEA), the UN Secretary-General expressed support for the establishment of an artificial intelligence agency. The IAEA, renowned for its regulatory functions and solid knowledge-based approach, serves as a model for addressing the challenges associated with AI. Such an agency, Guterres argued, would provide a robust framework for oversight, licensing, and compliance with safety standards. OpenAI CEO Sam Altman echoed this sentiment during his testimony before the U.S. Senate Committee on the Judiciary, advocating for the creation of a government office responsible for setting AI standards and conducting independent audits.

Despite these urgent calls for action, the UN Secretary-General acknowledged the limited investment of the United Nations in public administration, underscoring the need for member states’ initiatives and cooperation. He emphasized the challenging task of competing with private platforms that have amassed significant knowledge and resources.

In March, OpenAI launched GPT-4, their latest generative AI model, which prompted the Future of Life Institute to initiate an online petition calling for a six-month pause on AI systems training. Prominent figures from the tech industry, including Tesla CEO Elon Musk and Apple co-founder Steve Wozniak, endorsed this petition, further amplifying the need for regulatory measures.

Bitcoin Jumps Past $25.7K After BlackRock iShares ETF Filing
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

The largest cryptocurrency rose more than 1.3% in the hour after the announcement.

Do Kwon to Remain in Custody While Montenegro Courts Consider Extradition Request: Report
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data (RSS)

Courts in the country approved bail for the Terraform Labs founder, but a South Korea extradition request is set to keep him in jail.

BlackRock applies for spot Bitcoin ETF — a US first, if approved
Cointelegraph.com News (RSS)

The investment firm joins a long line of applicants; ARK is among those still waiting to hear from the SEC and Grayscale has appealed its rejection.

‌Internal tensions at the SEC exposed in Hinman documents
Cryptopolitan (RSS)

Hinman documents recently made public have exposed internal tensions within the U.S. Securities and Exchange Commission (SEC), raising concerns about the agency’s intentions in the continuing legal battle with Ripple. The documents revealed the SEC’s position on crypto, which impacted investor safety. Stuart Alderoty, the chief legal officer of Ripple, claims that the SEC purposefully increased regulatory ambiguity. 

Ripple’s claims: SEC purposefully increased regulatory ambiguity

According to reports, recent revelations in the Hinman documents, which have become public amid the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), have exposed internal conflicts within the SEC. This development has sparked inquiries into the SEC’s actions and decision-making processes surrounding cryptocurrencies.

The Hinman documents cover the internal SEC correspondence relating to a speech given by former director William Hinman in 2018. Crypto analysts claims that the Hinman records present a picture of an organization that is more concerned with enlarging its purview than carrying out its core duty of safeguarding American investors:

One analyst pointed out that one of the unredacted Hinman documents showed that the Office of General Counsel of the SEC had accepted the potential that crypto would fall under an “other” category. This shows that cryptocurrencies are not classified as securities under the Howey test’s notion of a controlling organization because there isn’t one. Similar to other items like prescription drugs or credit cards, laws may still be necessary to protect consumers.

According to market analyst, the main problem is that while cryptocurrencies may have certain traits of securities, their essential qualities set them apart from conventional securities. As a result, although cryptocurrency regulation is essential, it shouldn’t be left entirely in the hands of securities regulators, who are seen as “power-hungry.”

Ripple and crypto industry react to Hinman document disclosure

Reports have it on good authority that the disclosure of the Hinman documents has opened a Pandora’s box of potential implications for Ripple and the greater crypto industry. “Now that these documents are public, it demonstrates the rabbit hole goes much, much deeper, and further document requests will be issued soon […] be it from other litigants, Congressional investigators, FOIA requests, etc

Important to remember as you read the Hinman documents today. Hinman and the SEC lied in court for over a year saying this speech was Hinman's personal opinion only. We had to piece together video of their own words to show they were lying. What are the repercussions for a US… pic.twitter.com/AF08HlYMTT
— Digital Asset Investor (@digitalassetbuy) June 13, 2023

According to analysts, other records that illuminate the circumstances surrounding Hinman’s speech and demonstrate the conceivable participation of numerous institutions and people in forming the story may be requested. Investigating SEC staff contacts regarding why Hinman disobeyed their advice to leave ether out of his speech is part of this process.

Although William Hinman, the former head of the SEC’s corporation finance division, received a lot of attention this week for his insider discussions that led to the creation of a five-year-old speech, there were never any formal commission-approved rules or guidelines regar...

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