The crypto venture capital scene is busy; Binance founder and former CEO Changpeng Zhao completes a four-month sentence; and SEC chair Gary Gensler addresses Bitcoin in a TV appearance. Read on for our weekly recap:
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Celestia, crypto startups attract VC
More than $253 million flowed into the crypto startup world; the bulk of that funding went to the blockchain network Celestia Foundation, which raised $100 million to support its namesake modular blockchain network.
Infinex, a decentralized exchange, secured $65.29 million via a non-fungible token, or NFT, sale.
Zhao exits prison, Ellison receives sentence
Changpeng Zhao completed a four-month prison sentence for admitting that Binance, the company he founded, failed to enforce adequate Know Your Customer checks under his watch as CEO.
Three days earlier, crypto entrepreneur Caroline Ellison was sentenced to two years in prison for her involvement in the collapse of cryptocurrency exchange FTX and its affiliated hedge fund, Alameda Research — two companies central to one of the largest financial scandals in U.S. history.
SEC: Bitcoin is not a security
Bitcoin (BTC) is not a security. That’s according to recent comments made by U.S. Securities and Exchange Commission (SEC) chair Gary Gensler on CNBC. Regulatory filings have referred to the $1.2 trillion asset as a non-security commodity.
Also this week, TrueCoin and TrustToken settled charges filed by the SEC, alleging unregistered offering and investment contract sales between November 2020 and April 2023.
PayPal unveils crypto update for merchants
PayPal will start allowing U.S. merchants to purchase, hold, and sell cryptocurrency directly through their PayPal business accounts.
Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold crypto like Bitcoin and Ethereum (ETH). Extending these capabilities to business account holders allows PayPal to meet the demands of merchants who want the same access to digital assets as consumers.
Money laundering scheme thwarted
The U.S. Department of Justice seized domains linked to three crypto exchanges that have allegedly facilitated illicit transactions worth more than $800 million in relation to Russian money laundering operations.
The US authorities charged two Russian nationals for allegedly pocketing millions from a prolific money laundering scheme built on a network of cyber criminals across the globe.
Meme coin ‘supercycle’?
Hamster Kombat (HMSTR) plunged by over 30% following its much-anticipated airdrop and token listing. Meanwhile, Shiba Inu (SHIB), Pepe (PEPE) , and Dogwifhat (WIF) led the top weekly market gainers as the total meme coin market cap rose 25%, surpassing $55 billion.
Analysts predict a so-called “meme coin supercycle,” akin to what we saw during the bull run of 2020.
Read more: Elon Musk-inspired Department of Government Efficiency token spikes 33,000%
