Avatar.One Helps Over 120K Active Users Battle the Loneliness Epidemic With 3D AI Companions
Road Town, British Virgin Islands, August 14th, 2024, Chainwire
Matrix.One, the decentralized protocol accelerating the development of human-like AI characters, is thrilled to announce that their flagship product, Avatar.One, has surpassed 120,000 monthly active users worldwide since it launched earlier this year, with many of the users spending over three hours chatting with their personalized AI companions. Built on Solana, with more than 100,000 connected Solana wallets, Avatar.One enables users to easily create their ideal 3D AI companion to help fight the loneliness epidemic worldwide.
Avatar.One’s avatar maker allows users to define the AI companion’s personality, choosing from hundreds of thousands of variations, and even giving it a live AI-generated voice. Users get to chat unfiltered with their characters, flirt, receive selfies and videos, and create memories together. They can even further develop the AI character’s personality by adding memories.
Last year, the World Health Organization (WHO) declared loneliness a “global public health concern” that could be as bad for people’s health as smoking 15 cigarettes a day. Among the older adults, loneliness is associated with a 50% higher risk of developing dementia and a 30% increased risk of stroke.
According to a Harvard University survey, 61% of Americans aged 18 – 24 experience severe loneliness. Another Harvard study conducted this year suggests that interaction with AI companions reduces loneliness on par with interacting with another human. Further studies have also revealed AI Companions can assist in social and emotional skill development.
Mark Studholme, Co-Founder of Avatar.One and Matrix One, said, “I envision a future where every living person can own an AI character they define. These AI characters can help them with daily tasks, whether that be reminding you of your mom’s birthday, watching Netflix with you on the couch, or even paying your taxes.”
The loneliness epidemic is a significant problem. But with the rise in AI technology and its rate of development, it’s possible to build a future where everyone has a full-time 3D companion to help with everything from conversation to advice on cooking, reminders about important events, submitting taxes, financial management, and more. The quality of the chat experience is constantly improving and better able to emulate real human interactions as AI models get more refined.
Avatar.One is powered by Matrix One’s custom built decentralized protocol, which boasts a character studio, avatar maker, and a vast library of LLMs. From this technology, 3D AI characters can be integrated with game engines such as Unreal, Unity and Three.js. Matrix One allows fully animated AI powered characters to be delivered across many different mediums including web, mobile, VR, AR and more. As a result, all avatars are downloadable for use in over 200 games and applications.
Avatar.One prioritizes user safety and privacy. All interactions and user data are stored in an encrypted database using SSH and kept confidential, never to be shared with third parties. It also uses passwordless authentication to ensure that a user’s password cannot be stolen.
The user growth milestone comes as Matrix.One prepares for its upcoming token generation event (TGE) on Polkastarter, Seedify and ChainGPT in the weeks before the token’s listing on centralized exchanges. The $MATRIX token enables participation and transaction within the Matrix One network, allowing users to access, create, and interact with AI characters, besides giving holders governance rights.
Avatar.One is available to anyone above the age of 18 who feels AI companions can alleviate their loneliness. The platform plans to make on-chain characters available soon, allowing users to fully own their character and interaction history.
About Avatar.One
Powered by Matrix.One’s custom-built decentralized protocol, Avatar.One is a 3D AI companion platform. Its mission is to deliver users the most human-like virtual companion experience possible, by using cutting-edge 3D and AI technologies.
For more information, visit: Website | X | YouTube | TikTok | Instagram
Two South Korean Tech Execs Arrested in $365 Million Crypto Fraud
South Korean authorities have arrested the CEO of Wacon, Byun Young-oh, and Vice Chairman Yim Mo-Soo for their roles in a large-scale crypto fraud.
The scheme, which allegedly defrauded investors of approximately 500 billion won (around $365 million), primarily targeted elderly individuals with deceptive promises of high returns.
The arrests follow claims that Wacon operated an unlicensed Ponzi scheme, misleading around 12,000 members through fake crypto investment products.
The company allegedly used tactics like multi-level marketing and false assurances of returns to lure investors, but failed to deliver on its promises.
The Seoul Central District Prosecutors’ Office has charged Byun and Yim with fraud, noting that the scheme involved significant financial deceit.
Ongoing investigations are also examining Wacon’s parent company, SAK-3, for similar fraudulent activities, with potential additional losses estimated at 1 trillion won.
Binance Announces the Launch of Toncoin (TON) on Binance Launchpool and Super Earn
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced the launch of Toncoin (TON), a decentralized, open-layer blockchain and its 56th project on the Binance Launchpool.
Introducing Toncoin $TON on #Binance Launchpool and Super Earn!
Lock your tokens and earn Special APR rewards.
Find out more https://t.co/Y8vHwg2a92 pic.twitter.com/3m1khH1APB
— Binance (@binance) August 13, 2024
The official launch is set for August 15, 2024, and users will soon be able to participate in this farming opportunity by staking BNB and FDUSD to earn TON tokens.
The Launch of Toncoin
From August 14 on, Binance users will have access to the official Toncoin webpage as the platform prepares for the launch.
The farming period starts on August 15, 00:00 UTC, and will span 20 days, giving users the chance to stake their tokens in separate pools and accumulate TON.
The platform has allocated more than 7.65 million TON tokens as rewards, divided between the BNB and FDUSD pools.
In addition, Binance is launching a new feature called Binance Super Earn.
This feature gives users the opportunity to lock their TON tokens in Simple Earn Locked Products and benefit from a special annual percentage rate (APR), the specifics of which are yet to be announced.
The Toncoin User Experience
To participate, users must complete Know Your Customer (KYC) verification, and certain regions — including Australia, Canada, the United States, and parts of Ukraine, among others — are excluded due to regulatory restrictions
To ensure transparency, the Toncoin network is supported by various explorers like tonviewer.com and tonscan.org.
Tokens can be staked in only one pool at a time, but users can unstake and reallocate their funds at any moment during the farming period.
This goes for BNB Vault and Locked Products as well, and users can automatically participate in the Launchpool and receive new token rewards.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Kamala Harris Administration Could Continue Aggressive and Restrictive Stance on Crypto
A Harris administration is likely to continue the Biden administration’s aggressive and restrictive stance on crypto.
As the US prepares for the 2024 presidential election, new insights suggest that a potential Kamala Harris administration is likely to maintain a hardline stance on cryptocurrencies, continuing the policies established under President Joe Biden.
Alex Thorn, Head of Research at Galaxy Research, has highlighted key appointments within Harris’s advisory team that indicate a continuation of the Biden administration’s aggressive approach to crypto regulation.
According to Thorn, Harris is working closely with Brian Deese and Bharat Ramamurti, two prominent figures from the Biden administration known for their anti-crypto positions.
if harris’ campaign is really about the future, why are the backwards thinkers of the biden administration advising her on economic policy? she would do well to instead listen to democrats like @RoKhanna @RitchieTorres @WileyNickel @RepDarrenSoto @SenGillibrand and others who…
— Alex Thorn (@intangiblecoins) August 13, 2024
Deese, a former Director of the National Economic Council (NEC), played a central role in shaping the Biden administration’s crypto policies, including the controversial “Chokepoint 2.0” initiative.
This initiative involved a series of coordinated actions by federal agencies to restrict the involvement of banks and other financial institutions in the cryptocurrency industry.
Thorn pointed out that Deese’s influence was evident when he authored a blog post titled “The Administration’s Roadmap to Mitigating Cryptocurrency’s Risks,” published on Jan. 27, 2023.
That same day, the Federal Reserve rejected Custodia Bank’s application for membership and extended restrictive guidance on crypto activities to all state-chartered entities.
Thorn noted that the timing of these events strongly suggests a coordinated effort to clamp down on the crypto industry, driven by Deese and supported by other key figures like Ramamurti.
Ramamurti, who also worked under Deese at the NEC, has been described as “the White House’s top crypto critic” and has a history of opposing pro-crypto legislation.
He is credited with blocking a compromise on stablecoin legislation in 2023, which would have brought stablecoins under a heavily regulated framework but still allowed them to operate legally.
Thorn argues that the intervention by Deese and Ramamurti effectively killed the legislation, reinforcing the administration’s anti-crypto agenda.
Thorn’s analysis indicates that with Deese and Ramamurti advising Harris, it is “VERY UNLIKELY the administration will soften its stance on crypto.”
This continued crackdown could have significant implications for the cryptocurrency industry, especially as it navigates regulatory challenges in the US.
Trump Election Win May Be Bullish for Cryptocurrency Markets
Market sentiment suggests that a Trump election victory would be bullish for cryptocurrency and a Harris win would be bearish, the report said.
Crypto market sentiment indicates that a Trump election win would be a more bullish outcome, Bernstein said in a report.
The broker notes that bitcoin weakened as Polymarket odds and polls shifted in Harris’ favor.
Trump supporters have called the shift in odds an initial honeymoon phase, the broker said.
Market sentiment suggests that Donald Trump winning the U.S. elections in November would be bullish for crypto markets and a Kamala Harris victory would be bearish, Wall Street broker Bernstein said in a research report on Monday.
The broker noted that bitcoin has weakened following the shift in Polymarket odds and polls in Harris’ favor, and it expects the world’s largest cryptocurrency to “remain rangebound until there is a clearer election signal.”
Polymarket is a prediction market that allows people to bet on the outcome of future events.
Republican supporters have called this the “initial honeymoon phase” and have argued that Polymarket odds are subject to manipulation, the report said.
Bernstein notes that Trump’s side has been quite vocal about its crypto policy and has engaged with companies in the sector, bitcoin (BTC) miners and the wider community.
“The Trump-led Republican side has made a strong pitch to crypto voters by promising favourable policy for bitcoin and crypto innovation, even teasing a potential national bitcoin reserve,” analysts led by Gautam Chhugani wrote.
Former President Trump promised to maintain a strategic national bitcoin reserve and said he would never sell the government’s seized bitcoin, if elected again, in a speech last month at the Bitcoin Conference in Nashville.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
New Bitcoin Investors Are in Severe Stress – Bitfinex
The current crypto market condition has put many new Bitcoin investors under severe financial stress.
Bitcoin’s latest decline is a rare occurrence that has been recorded on only 364 out of 5,139 trading days.
The current market condition has put many new Bitcoin investors under financial stress. This is evident in several metrics that indicate a bearish environment and highlight factors that can intensify market volatility, increase selling pressure, and lead to further price declines.
According to a Bitfinex Alpha report, metrics like the Short-Term Holder MVRV (Market Value to Realized Value) and the standard deviation (SD) of the short-term holder Cost-Basis show that newer market participants are seeing significant losses on their bitcoin (BTC) investments.
BTC Investors Under Stress
The Short-Term Holder MVRV ratio compares the fair market value of BTC to its realized price, focusing on the newest cohort of investors.
A ratio below one signals that short-term holders and new investors are experiencing unrealized losses. This means the current BTC market price is less than what they paid for their purchases, and they would sell at a loss.
At the time of publication, the Short-Term Holder MVRV ratio shows that new investors are sitting on the largest unrealized losses since the bear market lows in 2022.
Bitfinex analysts said the metric underscores the depth of the market downturn and the level of financial stress this cohort of investors is experiencing.
“Such conditions can exacerbate the volatility of the market as these investors may be more prone to sell in panic during further price drops, potentially leading to accelerated declines in bitcoin’s price,” the analysts said.
How Severe is Bitcoin’s Latest Correction?
The -1SD move below the short-term holder cost basis also reveals the substantial extent of negative sentiment and stress among newer market participants.
In addition, the SD band provides insight into how often bitcoin’s price falls below the average purchase price of recent investors, which indicates the level of losses within this cohort.
Bitcoin’s latest decline below $50,000 saw the asset’s spot price approach the -1SD band, indicating an intense market downturn.
This occurrence is so rare that it has been recorded on only 364 out of 5139 BTC trading days.
“This situation not only reflects the sharp pace of the decline but also serves as a crucial signal for investors about the extent of negative sentiment and potential stress among newer market participants. Such insights are valuable for assessing market conditions and potential recovery scenarios,” analysts added.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Have You Heard About the New Dead Dad Coin Token? Here’s What the Creator Has to Say
The Solana-based Dead Dad Coin has a head-turning name, but the creator insists it’s not a crass stunt—and that his father would’ve loved it.
Strange things have happened in the meme coin space in recent months. We’ve seen a Solana developer end up in the hospital with third-degree burns trying to boost his coin, purported incest used to induce traders to pump a price, and rappers and reality TV stars launching their own tokens.
And that’s just the tip of the iceberg.
Thousands of wild tickers inspired by dogs, cats, presidential candidates, and more are emerging daily, but one in particular—bluntly and somewhat morbidly named “Dead Dad Coin”—stands out with a backstory that comes across as less of a stunt than it might appear on the surface.
Artist NFN Kalyan—which stands for No First Name Kalyan, which he said is now his legal name—started minting NFTs back in 2020, and created the Solana meme coin Dead Dad Coin (DDC) in honor of his late father.
The coin sits at a market cap of $1.2 million at the time of writing, after reaching an all-time high of $4.1 million in July.
You may have come across one of the countless memes featuring “Dead Dad” photoshopped into various pop culture references, internet trends, and more. Now he’s a meme coin too.
his dying really shocked my life. it took me years to recover and maybe i still haven’t fully. my wife tells me i cried in my sleep for months after he died. i would wake up and my face and pillow were wet. i love my dad but it surprised me how hard it hit me.
— NFN Kalyan (@nfnkalyan) July 4, 2024
“I think right off the bat, people are drawn in by the fact that it’s ridiculous. It’s a ridiculous idea, and I get that,” NFN Kalyan said.
“But there is another layer to things, which is more than just that this is shocking, silly, or hilarious. There’s something else to it.”
NFN Kalyan is referring to the genuine relationship he had with his dad, which he hopes to honor—not mock—in a way that he believes his father would have appreciated.
In August 2020, NFN Kalyan said that his father went for a walk and suffered a heart attack, collapsing and passing away instantly.
The loss deeply impacted him, he wrote in a Twitter thread alongside the coin launch, leading to months of intense grieving during which he often cried in his sleep.
He expressed that grief through art, including the “Requiem for My Father” series and a 1-of-1 photo NFT of his father’s body, which pay tribute to his father’s memory and explore the impact of his loss.
dad don’t miss pic.twitter.com/25xAj0rEJq
— Dead Dad Coin (@DeadDadCoin) August 3, 2024
For the single-edition photo NFT of his father’s body, he deleted the photo from his phone after minting it, allowing someone else to own what he considers the only legitimate copy. NFN Kalyan emphasizes the shared human experience behind his art.
“When I say my dad is dead and I have a feeling about it, there is a human empathy,” he tweeted. “It’s a shared human experience. This is not a meme based around a dog or a silly drawing.”
NFN Kalyan hopes that members of the crypto community can find an element of emotional connection through his project. He also believes that his father would have found Dead Dad Coin hilarious and invites everyone to contribute.
“We are all in this together,” he said. “Let’s make something that’s alive.”
NFN Kalyan focuses on the art and creative side, while his co-founders help execute the business side.
According to the team, 11.5% of the token supply was burnt (or effectively destroyed), 6% is for marketing, and 3% is saved for future expenses. Data from Bubblemaps shows the exact breakdown of which wallets hold the most supply.
Art and finance are inextricably intertwined, and nowhere is that clearer than in the crypto world. But while they may both be tokens on a blockchain, a piece of visual art represented by an NFT is bound to hit people differently than a token with a name like “Dead Dad Coin.”
Asked why he didn’t just leave his tribute as a visual art piece, but rather decided to market it and create a team and make it a business, he explained that he believes a meme coin has a chance to reach far more people while still spreading his message.
guys high key dad was a capricorn ngl pic.twitter.com/32ApCKhlhH
— Dead Dad Coin (@DeadDadCoin) July 22, 2024
“My thought was that in all of art, you want an audience. If you write a book, you want it to sell a million copies,” NFN Kalyan replied.
“If we do it right, if we do it well, then we can have a big audience paying attention to this art project—to this really interesting thing that we’re doing. And that’s really what’s led to the business side of it even existing.”
And while the price of DDC has dropped in recent weeks alongside the rest of the market, particularly many meme coins, NFN Kalyan said that he plans to continue pushing it for a long time to come given the personal connection that spawned the token.
“It’s an evolving project that can truly go on forever. I’m thinking about IRL events, I’m thinking about all types of things,” he replied. “It’s so close to my heart.”
Bitfarms Co-Founder Nicolas Bonta Steps Down From Board
CEO Ben Gagnon has been appointed to the Bitfarms’ board of directors as co-founder Nicolas Bonta steps down from the board.
Bonta has been at the center of a takeover battle between U.S.-based Riot Platforms and Bitfarms.
It’s been a tumultuous year for Bitfarms’ management team and the bitcoin miner has made another big change in the executive ranks.
CEO Ben Gagnon has been appointed to the Bitfarms board of directors as the company’s co-founder and former chairman Nicolas Bonta steps down. The board appointed Lead Director Brian Howlett as its new independent chairman.
“Nicolas played a critical role in the foundation and development of this Company,” said Howlett.
“He laid the groundwork for our success as a bitcoin miner and spearheaded our international expansion, particularly in Latin America. I have been proud to work alongside him for the past four years and am grateful for the wisdom and guidance he has provided.”
Bonta has been at the center of a takeover battle between the US-based Riot Platforms and Bitfarms.
Riot Platforms attempted to acquire Bitfarms in April for about $950 million. In June, Riot said it was ready to engage with a reconstituted Bitfarms board about a potential acquisition but was withdrawing its previous offer to acquire the company “given the current board’s lack of meaningful engagement.”
Riot has been buying stock in Bitfarms to become its largest shareholder and currently owns about 70 million shares.
In July, Riot nominated three independent directors to the Bitfarms board to replace Bonta, among others.
Bitfarms had set Oct. 29 as the date for a special meeting of its shareholders to vote on reconstituting its board of directors following Riot Platforms’ requisition for the meeting on June 24.
Toronto-based Bitfarms fired CEO Geoffrey Morphy in May after he filed a lawsuit against the company claiming $27 million in damages for breach of contract. Gagnon, who had served as Bitfarm’s chief mining officer, was promoted to CEO in July.
Last week, Bitfarms reported a net loss of $27 million or a 7-cent loss per basic and diluted share, which was better than the 11-cent per-share loss analysts expected.
Revenue of $42 million was down 16% from the first quarter due to the decrease in block rewards following the Bitcoin halving event in April.
Marathon Digital to Raise $250 Million for Bitcoin Investments
Marathon Digital plans to raise $250 million via a debt offering to boost its Bitcoin holdings, following a strategy pioneered by MicroStrategy.
Marathon Digital Holdings, a key Bitcoin mining company, has announced plans to raise $250 million through a debt offering to purchase additional Bitcoin.
This approach mirrors the strategy made popular by MicroStrategy, which started using Bitcoin as a reserve asset in 2020 and raised debt to expand its Bitcoin reserves. Marathon now holds more than 20,000 Bitcoin, making it the second-largest holder among publicly traded companies, just after MicroStrategy.
Marathon intends to issue convertible senior notes that will mature in 2031. These notes will pay semi-annual interest and can be redeemed early or converted into cash or Marathon’s common stock.
The offering is aimed at qualified institutional buyers and includes an option for initial purchasers to acquire an extra $37.5 million in notes shortly after issuance. The announcement led to a drop in the company’s share price.
In July, Marathon acquired $100 million worth of Bitcoin, increasing its holdings significantly. With more than 20,000 Bitcoin, Marathon is making a considerable investment in digital currency’s future.
This acquisition positions Marathon as the second-largest Bitcoin holder among publicly traded companies, only behind MicroStrategy.
MicroStrategy has led the way in this strategy, having issued convertible notes to purchase more Bitcoin earlier this year. The company’s decision to adopt Bitcoin as a reserve asset in 2020 has inspired other firms to adopt similar strategies.
The practice of holding Bitcoin as a reserve asset is gaining popularity among companies. Recently, fintech company Fold and healthcare firm Semler Scientific have joined this trend, showing a broader acceptance of cryptocurrency in corporate finance.
Larger companies like Tesla and Block (formerly Square) have also integrated Bitcoin into their financial strategies in recent years.
This trend suggests increasing confidence in Bitcoin’s long-term value and its potential as a hedge against market volatility.
Marathon’s move to boost its Bitcoin reserves through a significant debt offering highlights the changing dynamics of the cryptocurrency market. By raising funds for further Bitcoin investment, Marathon is betting on the digital asset’s potential.
This approach not only solidifies Marathon’s position as a major player in the crypto industry but also indicates a broader shift in corporate perspectives towards digital currencies.
MicroStrategy’s success with this strategy has opened the door for other companies to consider similar approaches. Its substantial Bitcoin reserves have served as a model for using cryptocurrency as a tool for financial growth and stability.
As more companies adopt this method, Bitcoin’s role as a corporate treasury asset is likely to grow, further legitimizing its place in global finance.
While Marathon’s strategy highlights the growing trend of incorporating Bitcoin into corporate finance, it also presents challenges.
The crypto market’s volatility poses risks, requiring companies to carefully evaluate the potential impact of such investments on their financial stability.
However, the potential benefits of holding Bitcoin as a reserve asset are appealing, particularly as traditional markets face uncertainties.
As Marathon and others continue to invest in Bitcoin, the corporate finance landscape is set to evolve. This trend reflects a recognition of the strategic advantages digital currencies offer, from diversification and hedging to potential value appreciation.
By embracing Bitcoin, companies like Marathon are positioning themselves at the forefront of financial innovation, leveraging opportunities in the digital economy.
In summary, Marathon’s plan to raise $250 million for Bitcoin acquisition is a strategic move aligned with the growing trend of using cryptocurrency as a reserve asset.
As more companies adopt this strategy, Bitcoin’s role in corporate finance is poised to expand, presenting new opportunities and challenges in the changing financial environment.
A South Korean CEO has been arrested for allegedly orchestrating a $365 million crypto scam targeting thousands, particularly the elderly.
South Korean authorities have charged the CEO of tech firm Wacon and his accomplice with orchestrating a major cryptocurrency fraud.
This scheme, valued at over 500 billion won (around $365 million), specifically targeted elderly individuals with false promises of high returns. The scam allegedly involved over 10,000 people and caused significant financial losses for hundreds of victims.
Wacon’s CEO, Byun Young-oh, and Vice Chairman, Yim Mo-soo, were arrested for allegedly running a cryptocurrency scam worth billions of won.
They were charged with “fraud and other offenses” after the court issued warrants due to concerns about potential evidence destruction.
Wacon operated across South Korea and is accused of managing a Ponzi scheme with about 12,000 members. The company offered “crypto staking products” through an unregistered service called “MainEthernet.”
Wacon used a multi-level marketing strategy to attract investors, promising unlimited referral bonuses for recruiting new members. The scam targeted mainly elderly people who were unfamiliar with cryptocurrencies and Ponzi schemes.
Investors were promised significant returns, such as “100% interest” and profits through a “casino-AI platform.”
Wacon also claimed to offer “30% on the 40th day and 7% on the 43rd day,” but failed to return investments.
In June 2023, investors lost billions of won when the company stopped paying interest and returning the original investment. This led authorities to start investigating Wacon.
During the investigation, Wacon reportedly switched to new platforms several times, forcing investors to transfer funds and recruit new members.
The Seoul Central District Prosecutors’ Office recently indicted Byun and Yim for “fraud and fraudulent receipt of funds.”
The investigation claims that the company defrauded about 500 investors of 54 billion won (around $39 million) and was involved in the fraudulent receipt of approximately 500 billion won ($365 million).
The scam involved raising funds with promises of preserving the principal amount without a license or registration.
Fraud charges apply if the money was taken without an intention to return it. Authorities are still searching for more victims and accomplices.
They are also investigating Wacon’s parent company, SAK-3, for potential fraud. SAK-3’s Chairman, Kim Dae-chun, and six shareholders, including Byun, are suspected of running a similar scam.
SAK-3 allegedly lured investors with high-return promises but has not paid customers since February 2023. The damage is estimated at 1 trillion won, including Wacon’s losses and funds from other investors.
This case highlights the significant risks in the cryptocurrency market, especially for those unfamiliar with it. The targeting of elderly investors underscores the need for stricter regulations and increased public awareness to protect potential victims from similar schemes.
The indictment of Byun and Yim is a significant step in addressing financial crimes that exploit people’s lack of knowledge about new technologies. It also serves as a warning to other fraudulent entities in the cryptocurrency space.
The South Korean government’s actions against Wacon and its executives demonstrate a commitment to combating fraudulent activities in the crypto sector.
As the investigation continues, authorities aim to uncover the full extent of the scam and bring all responsible parties to justice.
This case serves as an important reminder of the need for due diligence and regulatory oversight to protect investors and maintain trust in the digital finance landscape.
DBS Bank and Ant International Launch Treasury Tokens Pilot
DBS Bank, in partnership with Ant International, launches Treasury Tokens to enhance corporate liquidity management using a secure permissioned blockchain.
The blockchain integrates with Ethereum and Ant International’s Whale platform for efficient global payments
This initiative builds on DBS’s previous blockchain projects, offering advanced, flexible banking solutions
DBS Bank Introduces New Blockchain Solution for Treasury Management
DBS Bank has made a huge step forward in financial technology by launching the DBS Treasury Tokens pilot.
This new project, announced on August 13, aims to alter how corporations manage liquidity across several marketplaces.
The pilot project, developed in partnership with Ant International, intends to improve corporate treasury and liquidity management using blockchain technology.
The DBS Treasury Tokens are designed to operate on a permissioned blockchain created by DBS Bank. This blockchain, often referred to as a private blockchain, adds an extra layer of security and control.
Unlike public blockchains, where anyone can participate, a permissioned blockchain restricts access to approved participants only. This setup helps in maintaining a controlled and secure environment for financial transactions.
DBS Bank’s Blockchain Boosts Payments and Liquidity
DBS Bank’s blockchain is compatible with the Ethereum Virtual Machine (EVM), which allows it to integrate smoothly with various payment systems.
By connecting with the bank’s core payments engine, the new system enhances its ability to work with different payment infrastructures globally. This compatibility is important for businesses that need to manage their finances across multiple regions efficiently.
The integration with Ant International’s treasury management platform, Whale, is another highlight of this project. Whale uses advanced technology, including artificial intelligence and encryption, to manage fund transfers and increase transparency.
By combining this with DBS Bank’s blockchain, Ant International can manage its liquidity more effectively and with greater visibility.
This initiative builds on DBS Bank’s previous experiences with blockchain technology, particularly through the Monetary Authority of Singapore’s (MAS) Project Orchid and Project Guardian.
These projects have explored the potential benefits of tokenization, which involves converting assets into digital tokens on a blockchain.
DBS Bank’s Treasury Tokens are one of the innovations tested under Project Guardian, demonstrating the practical advantages of these technologies.
Lim Soon Chong Highlights DBS Bank’s New Efficiency Drive
Lim Soon Chong, DBS Bank’s group head of global transaction services, emphasized the importance of this new project. He highlighted how the rise of e-commerce and on-demand services has created a pressing need for more efficient liquidity management solutions.
The DBS Treasury Tokens, along with Ant International’s technology, aim to address this need by providing a scalable solution that adapts to modern business requirements.
Chong also pointed out that DBS Bank’s permissioned blockchain paves the way for new efficiencies in traditional banking.
This includes advancements in “programmable, fractionalized, and atomic value transfer,” which means transferring value in small, precise units quickly and securely.
These capabilities are expected to enhance the overall banking experience by making transactions more flexible and efficient.
DBS Bank’s introduction of Treasury Tokens and its collaboration with Ant International mark a significant advancement in corporate liquidity management.
By leveraging blockchain technology and integrating it with sophisticated treasury platforms, this initiative aims to provide businesses with a robust, secure, and efficient way to manage their financial resources across various markets.
DeFi Education Fund (DEF) Acquired Patent, Ends Lawsuits
DeFi Education Fund (DEF) has acquired a key patent, ending lawsuits against MakerDAO and Compound, and plans to release it publicly to support open-source innovation.
The DeFi Education Fund (DEF) has acquired a patent from True Return Systems (TRS) that effectively ends the legal battles against MakerDAO and Compound Protocol.
This patent describes a “method and system for separating storage and processing” of a computerized ledger, aiming to enhance its functionality. This acquisition is crucial in preventing future legal actions over this technology.
The patent was granted by the US Patent and Trademark Office in 2018. It focuses on improving how computerized ledgers function by separating storage from processing.
TRS accused MakerDAO and Compound of infringing on this patent, claiming that their systems, which connect off-chain data to blockchains, violated its terms. This link is vital for decentralized finance (DeFi) operations.
On Monday, DEF announced that it had “reached an agreement” with TRS to buy the patent, resulting in the lawsuits’ immediate dismissal.
Amanda Tuminelli, DEF’s chief legal officer, stated that DEF plans to make the patent public to ensure it can’t be used to sue other projects using oracle technology.
Tuminelli said, “We are pleased to announce we have purchased the patent from True Return Systems that was being used to sue MakerDAO and Compound. As a result, TRS will dismiss its lawsuits.”
True Return Systems, with patent inventor Jack Fonss, filed lawsuits against MakerDAO and Compound in late 2022.
They alleged the organizations violated their patent, which covers a system for “storing, creating, monitoring, and managing data in distributed ledgers.” The system improves functionality by separating and linking modular data storage and processing.
In a post on X last September, Tuminelli revealed that TRS had tried to sell the patent as an NFT on OpenSea. Initially, it was listed for 2,250 WETH, worth about $6 million today. However, it was later reduced to 1,250 WETH, or $3.3 million, due to a lack of offers.
Tuminelli criticized the idea of patenting widely used technology like oracle technology, saying, “Patenting widely used technology like oracle technology contradicts open-source development principles.”
By purchasing the patent and making it public, DEF shows its commitment to open-source values. This move aims to protect the DeFi community from similar lawsuits and encourage innovation without the risk of patent infringement. It also highlights the ongoing tension between proprietary claims and the collaborative spirit of blockchain technology.
True Return Systems filed a voluntary dismissal of its lawsuits against MakerDAO and Compound following the agreement with DEF. By acquiring and dedicating the patent to the public, DEF aims to protect the DeFi ecosystem from further litigation.
This resolution sets a precedent for handling disputes over foundational blockchain technologies, balancing intellectual property protection with the open-source ideals that drive innovation in the crypto space.
In summary, DEF’s acquisition of the patent from True Return Systems marks a significant step toward resolving conflicts in the DeFi sector.
By making the patent publicly available, DEF aims to foster an environment where developers can build freely, reinforcing the core values of decentralization and innovation in the blockchain community.
WebX 2024 in JAPAN: a Two-Day Gathering of Companies Venturing Into Web3, Led By the Anime Industry
Two Days Opening the Door to Web3 Industry Utilization
WebX2024 is a global Web3 conference organized and managed by CoinPost, Japan’s largest cryptocurrency and Web3 media outlet.
Given the development of regulation, the Japanese government and major corporations attempting Web3 expansion will participate in large numbers. Centered on the theme of Web3’s industrial expansion, drawing participants from around the world to gather.
With approximately 180 exhibiting companies, about 250 speakers (50/50 ratio of Japanese to international sessions), and around 130 media partners, becoming the largest conference in Asia.
Many major companies from globally renowned Japanese industries such as anime and gaming will be among the exhibitors, providing opportunities for interaction with global attendees.
Well known DJ Steve Aoki will participate in the opening party to Kick-off WebX 2024.
Seeing the Future of Web3 Mass Adoption in Japan
– Date: August 28-29, 2024
– Location: Tokyo, Japan – THE PRINCE PARK TOWER TOKYO
– Organized by: CoinPost – Japan’s largest Web3 and cryptocurrency media
With the focus on “Accelerating the Adoption and Social Implementation of Web3 Technologies,” will offer opportunities for acquiring business ideas and forging connections, thereby contributing to the advancement of Web3 technologies.
Why Attend in Person
– Exclusive on-site speaker sessions: Prominent speakers from around the world, with recorded sessions available for ticket holders
– Access to exhibition areas of over 180 companies outside the Web3 industry
– Participation in IP and Gaming areas: Companies like Kodansha, Capcom, Toho, Square Enix, etc. will participate
– Access to networking areas and events (available for Business ticket holders and above)
– Participation in over 100 associated side events: complimentary taxi service to side event venues during WebX
ASIA TOUR and TOKYO Blockchain Week
DAO TOKYO2024 (TOKYO / JAPAN)
August 21 (Wed.) – 22 (Thu.), 2024
Coinfest Asia 2024 (BALI / INDONESIA)
August 22 (Thu.) – 23 (Fri.), 2024
ETHTokyo’24 (TOKYO / JAPAN)
August 23 (Fri.) – 26 (Mon.), 2024
WebX2024 (TOKYO / JAPAN)
August 28 (Wed.) – 29 (Thu.), 2024
Korea Blockchain Week 2024 (SEOUL / KOREA)
September 1 (Sun.) – 7 (Sat.), 2024
WebX Featured Speakers
– Fumio Kishida (Japan / Prime Minister)
– Masaaki TAIRA (Member of House of Representatives / Head, web3 Project Team, LDP)
– Yuriko Koike (Tokyo Metropolitan Government / Governor of Tokyo)
– Richard Teng (Binance / CEO)
– Audrey Tang (Plurality / Taiwan’s First Digital Minister, Co-founder)
– Naohiko UENO (TOYOTA Blockchain Lab)
– Ken Kanetomo (Konami Digital)
– Kosuke Hamasaki (Sanrio – famously known for Hello Kitty)
Exclusive Discount Code
We are offering a 20% discount code exclusively for those who have seen this release.
Binance to Delist CVP, EPX, FOR, LOOM, REEF, VGX on August 26, 2024
Binance announced plans to delist CVP, EPX, FOR, LOOM, REEF, and VGX from its platform effective August 26, 2024, citing the need to maintain high standards.
Binance, one of the world’s leading cryptocurrency exchanges, will delist several digital assets from its platform effective August 26, 2024. The assets affected include CVP, EPX, FOR, LOOM, REEF, and VGX, according to an official announcement from Binance.
Criteria for Delisting
The decision to delist these tokens comes after a comprehensive review process. Binance periodically evaluates the digital assets listed on its platform to ensure they meet high standards and industry requirements.
Factors influencing the delisting include the commitment of the project team, development activity, trading volume and liquidity, network stability, public communication, responsiveness to due diligence requests, and regulatory compliance.
Details of the Delisting Process
Trading for the affected tokens will cease on August 26, 2024, at 03:00 (UTC). The specific trading pairs to be removed are CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, and VGX/USDT.
All trade orders will be automatically removed after trading ceases, and the token valuations will no longer be displayed in users’ wallets. Deposits of these tokens will not be credited after August 27, 2024, and withdrawals will not be supported after November 26, 2024.
Impact on Other Binance Services
Various Binance services will also be affected by the delisting:
Binance Simple Earn: The affected tokens will be delisted from Simple Earn on August 22, 2024. Users can redeem their positions beforehand, or they will be automatically redeemed and transferred to users’ Spot Wallets.
Binance Auto-Invest: The tokens will be removed from Auto-Invest plans on August 20, 2024. Users are advised to remove their plans to avoid any disruption.
Binance Margin: Isolated and cross margin borrowings will be suspended for the affected tokens starting August 14, 2024. All positions will be closed, and pending orders will be canceled on August 20, 2024.
Binance Convert: A Sell-only function will be maintained for the affected tokens from August 21, 2024, to August 26, 2024, after which they will be delisted.
Binance Pay and Gift Card: These services will delist the affected tokens on August 21, 2024, and August 26, 2024, respectively.
Trading Bots: The services for the affected trading pairs will be terminated on August 26, 2024.
Users are strongly advised to update or cancel their trading bots and plans to avoid any potential losses.
Future Considerations
There is a possibility that delisted tokens may be converted into stablecoins on behalf of users after November 27, 2024. However, this conversion is not guaranteed and will be subject to a separate notification.
Binance encourages its users to adhere to these changes and manage their assets accordingly to avoid any inconvenience. For more detailed information, please refer to the official announcement on Binance.
Gemini Kicks Against the CFTC Over Ban on Crypto Prediction Markets
Gemini is opposed to the proposal by the United States Commodity Futures Trading Commission (CFTC), which seeks to ban Polymarket-style crypto prediction markets.
The crypto-exchange has joined other industry leaders such as Crypto.com, Robinhood, and Coinbase.
Gemini Against The CFTC Proposal That Wants To Ban Crypto Prediction Markets Like Polymarket
Gemini, the crypto-exchange of the Winklevoss twins, is making its voice heard to express its disappointment regarding the proposal from the Commodity Futures Trading Commission (CFTC) of the USA.
In fact, led by Elizabeth Warren and other democrats, the CFTC is finalizing a rule that could ban crypto prediction markets, in Polymarket style. Specifically, the CFTC’s proposal sees the ban on trading event contracts, defined as follows:
“To bet or risk something of value on the outcome of a political contest, a prize contest, or a game in which one or more athletes compete, or on an event or a non-event in relation to such contest or game”.
In this regard, Gemini wrote a letter to Christopher Kirkpatrick, secretary of the U.S. CFTC, which explains its vision and begins as follows:
“We ask the Commission to withdraw the proposal. We are respectfully convinced that the proposal is contrary to the regulatory framework of the CEA and, as a substantive matter, is contrary to the public interest. The problems with the proposal are numerous, but we focus on the aspect of the proposal that defines ipso facto all event contracts involving “gioco d’azzardo” as contrary to the public interest. In particular, we highlight the negative impact that this rule would have on prediction markets, including prediction markets used for elections.”
Beyond Gemini, other leaders in the crypto and fintech sector such as Crypto.com, Robinhood, and Coinbase, have also declared themselves against the proposal of the CFTC of the USA.
Gemini vs. CFTC: The Words Of The Co-Founder Of The Crypto-Exchange Winklevoss
Even Cameron Winklevoss, the co-founder of Gemini, has stepped in to share his opinion and did so through his profile on X, followed by over 724,000 followers.
Decentralized prediction markets are a significant innovation with real public utility. They provide valuable information on future events that is rooted in financial accountability. Unlike polls, pundits, or expert opinions, they require participants to put their money where… pic.twitter.com/Il9tiEyQqW
— Cameron Winklevoss (@cameron) August 10, 2024
In his long tweet, Winklevoss emphasizes how decentralized prediction markets are a significant innovation, with real public utility. This is expressed through the financial responsibility of providing valuable information about future events.
In fact, the co-founder of Gemini explains that unlike surveys or opinions, with decentralized prediction markets, people participate by putting “their money where their mouth is.”
Obviously among the most famous crypto prediction markets there is Polymarket, widely cited in every event such as the one concerning the polls of the USA 2024 Presidential elections.
In this regard, Winklevoss explains that the CFTC cannot make the right decision and that, if it did, it would only be bowing to the pressure of Senator Warren.
For this reason, the co-founder of Gemini invites the President of the CFTC to distance himself from toxic characters, in order to act independently.
The Record Volumes Of Polymarket
While US regulation is addressing the issue of decentralized or crypto prediction markets, at the end of July, Polymarket recorded record volumes.
In fact, the significant milestone of the platform concerns precisely the US presidential elections, with Trump and Harris vying for the White House.
The record volumes recorded on the crypto prediction market have exceeded 1 billion dollars. An absolute record for Polymarket, which equals more than a third of the cumulative value in the platform’s history.
BYDFi Exchange has doubled its user base to 30 million by offering no-KYC access and focusing on meme coins, overcoming crypto market challenges.
The meme coin market has surged into a billion-dollar industry, driven by thousands of tokens based on animals, political figures, celebrities, and other meme-worthy characters.
This craze has significantly influenced the broader cryptocurrency market, now valued at $2.2 trillion, and continues to attract more participants. However, many users face challenges accessing these crypto projects due to regulatory barriers in various regions.
BYDFi vrypto exchange addresses these challenges by providing a platform accessible worldwide, regardless of location or local regulations.
Formerly known as BitYard, BYDFi was rebranded in 2023 with the motto “BUIDL Your Dream Finance.”
A standout feature of BYDFi is its no-KYC policy, which allows users to access the platform without mandatory identity verification. However, users must provide additional information to increase their trading limits to up to 10 BTC daily.
The exchange has over half a million users across more than 150 countries, including those with strict crypto regulations like the United States, Canada, and the Netherlands.
BYDFi facilitates the KYC process for users in these areas, ensuring compliance where necessary. BYDFi offers a variety of features, including crypto deposits and withdrawals, copy trading, peer-to-peer (P2P) trading, and crypto derivatives trading.
The platform also rewards users through a native point system, allowing them to earn BYD points for trading activities.
One of BYDFi’s major benefits is its no-KYC policy, which appeals to users seeking privacy and fewer regulatory hurdles.
This approach meets the growing demand for crypto platforms that can serve investors without extensive verification processes. BYDFi’s no-KYC option allows users to bypass regulatory challenges that might otherwise limit their access.
Meme coins have significantly contributed to the crypto market’s growth. BYDFi has a dedicated section for meme tokens on its Spot trading page, featuring popular tokens like DOGE, SHIB, PEPE, WIF, DEGEN, and ORDI.
This feature enables users to invest in the meme coin market and potentially profit from its growth.
Security is a top priority for BYDFi, as inadequate security has historically led to significant losses for crypto projects and users. BYDFi secures users’ assets by storing funds offline in cold wallets and offers two-factor authentication (2FA) for enhanced account security. By not requiring KYC, users can remain anonymous, reducing the risk of data theft.
Many crypto exchanges require extensive documentation for registration, but BYDFi simplifies the process with a fast onboarding system. Users can create an account and purchase crypto tokens in under a minute, avoiding delays typical of other exchanges.
BYDFi stands out as a versatile and secure platform that meets the growing demands of the crypto market.
By offering features like a no-KYC policy, advanced security, and a focus on meme coins, BYDFi empowers users to navigate the dynamic world of digital currencies easily.
This approach broadens access for users globally and aligns with current crypto market trends, making it an attractive option for both new and experienced traders.
With a focus on user privacy, security, and quick access to popular crypto assets, BYDFi positions itself as a forward-thinking exchange capable of meeting the needs of a rapidly evolving market.
As the cryptocurrency landscape continues to change, BYDFi’s user-friendly features and commitment to accessibility will likely continue to drive its growth and popularity.
Three Arrows Capital sues TerraForm Labs for $1.3 billion, alleging market manipulation that led to the LUNA crash and significant financial losses.
Three Arrows Capital (3AC), a collapsed cryptocurrency hedge fund, has filed a $1.3 billion lawsuit against TerraForm Labs, claiming that market manipulation led to significant losses during the LUNA and TerraUSD crash.
This legal action is part of ongoing efforts to recover money for Three Arrows’ creditors following its bankruptcy.
Three Arrows alleges that TerraForm Labs manipulated the market, inflating the prices of LUNA and TerraUSD. This manipulation allegedly induced Three Arrows to invest in these tokens, leading to severe financial losses when the market crashed in 2022.
According to a court document cited by Bloomberg, these actions drastically impacted the value of Three Arrows’ digital assets.
In April 2022, Three Arrows held approximately $462 million worth of LUNA. However, after a massive sell-off of TerraUSD, this value fell to just over $2,700 by mid-May. The lawsuit claims TerraForm’s manipulation was directly responsible for this catastrophic decline.
Once a major player in the crypto hedge fund sector, Three Arrows Capital collapsed soon after the LUNA crash. A British Virgin Islands court appointed liquidators from Teneo to help recover assets for the fund’s creditors.
This lawsuit against TerraForm is one of several actions by the liquidators, who are also pursuing claims against 3AC’s founders, Su Zhu and Kyle Davies.
The lawsuit’s outcome is uncertain, particularly because of legal complexities involving TerraForm Labs and its co-founder, Do Kwon. After the crash, Do Kwon was arrested in Montenegro and faces charges in both the US and South Korea.
A Montenegro court ruled he should be extradited to South Korea, but this decision has faced multiple delays.
On August 8, Montenegro’s Supreme Court postponed Kwon’s extradition at the request of Minister of Justice Andrej Milović. This delay adds to the ongoing legal drama involving Kwon and TerraForm Labs, making the lawsuit’s potential outcomes unclear.
This case underscores the risks of cryptocurrency investments and the potential for market manipulation. The collapse of LUNA and TerraUSD is a warning to investors about the need for oversight and transparency in the crypto industry.
The lawsuit against TerraForm Labs is closely watched and could set important precedents for legal accountability in the crypto space.
As the case proceeds, it may influence how similar situations are handled and shape regulatory measures to prevent future market manipulation.
The lawsuit filed by Three Arrows Capital against TerraForm Labs presents a major legal challenge with potential implications for the crypto industry. As the proceedings continue, the focus remains on whether the liquidators can recover funds for 3AC’s creditors.
The outcome will be crucial in determining the accountability of those involved in the LUNA crash and may influence future regulations in the cryptocurrency market.
Investors and stakeholders are closely watching for developments that could impact the future of digital finance.
Samson Mow Warns of Cold Storage Risks and Predicts Bitcoin Surge
Samson Mow, CEO of JAN3, raises concerns about the security of cold Bitcoin storage and emphasizes the importance of safeguarding private keys.
Samson Mow, CEO of JAN3 and a vocal Bitcoin advocate, has raised concerns about the safety of even cold storage solutions for Bitcoin, urging holders to take extra precautions.
Meanwhile, Wrapped Bitcoin is undergoing a significant shift as BitGo plans to transfer its custodial responsibilities to a joint venture with BiT Global, leading to questions about the future of the asset and the role of Justin Sun in its ecosystem.
Samson Mow Warns on Cold Bitcoin Storage: Not Cold Enough?
In a stark warning to the cryptocurrency community, Samson Mow, a prominent Bitcoin advocate and the CEO of JAN3, has raised concerns about the security of Bitcoin stored in cold wallets.
Mow, whose company specializes in helping nation-states adopt Bitcoin (BTC), recently took to social media to highlight the potential vulnerabilities in even the most secure forms of Bitcoin storage.
Cold storage, a method of storing cryptocurrency offline to protect it from online threats such as hacking, has long been considered one of the safest ways to hold Bitcoin.
However, Mow believes that even cold storage might not be secure enough if the Bitcoin holder can easily access their private keys.
In an X post that has since sparked widespread discussion, Mow emphasized the importance of ensuring that Bitcoin stored in cold wallets is difficult to access—even for the owner.
Don’t keep #Bitcoin key material in your home. It should be difficult even for yourself to move your coins that are in cold storage.
Read that again.
If you can access your cold storage easily it’s not cold enough.pic.twitter.com/HXuk0PO6xZ
— Samson Mow (@Excellion) August 10, 2024
He argued that private keys, which are the cryptographic keys required to access and manage a Bitcoin wallet, should not be stored at home, where they might be vulnerable to theft or coercion.
To illustrate his point, Mow shared a video showing three thieves struggling to move a large safe from a house.
The safe, which they were unable to open, was eventually taken away by the criminals. Mow used this example to drive home his message: “It should be difficult even for yourself to move your coins that are in cold storage.”
The JAN3 CEO’s remarks come at a time when the security of Bitcoin and other cryptocurrencies is increasingly under scrutiny.
As the value of Bitcoin continues to rise, so too does the incentive for criminals to find new ways to steal it.
Mow’s concerns about Bitcoin storage come against the backdrop of his bullish predictions for the cryptocurrency’s future.
The Bitcoin advocate has long been vocal about his belief that the world’s leading digital currency is on a trajectory toward a $1 million price mark.
In recent tweets, Mow has suggested that this milestone could be reached within the next year, driven by significant investments from major corporations or financial giants.
Mow hinted at the possibility of an “Omega candle,” a term used in the cryptocurrency community to describe a sudden, massive price surge.
He suggested that such a surge could be triggered by a tech giant like Apple or a financial powerhouse like Warren Buffett’s Berkshire Hathaway making a significant investment in Bitcoin.
While these predictions may seem optimistic, they reflect Mow’s deep conviction in Bitcoin’s potential to reshape the global financial system.
However, with great value comes great risk, and Mow’s warnings about secure storage highlight the need for Bitcoin holders to take their security measures seriously as the cryptocurrency’s value climbs.
The IRS’s new 1099-DA draft simplifies crypto tax reporting by addressing privacy concerns and streamlining requirements for brokers and investors.
The US Internal Revenue Service (IRS) has unveiled a revised draft of the 1099-DA tax form, aimed at simplifying the reporting of digital asset transactions for crypto brokers and investors.
This updated draft, which will be used starting in the 2025 tax period, marks a significant improvement from the version released in April 2024.
The new draft regulations are available on the IRS website for public comment over the next 30 days. While the draft resolves some issues from earlier versions, experts suggest that the IRS could enhance its understanding of the crypto landscape to better assist investors.
A major update in the new 1099-DA form is the removal of the requirement for investors to disclose their wallet addresses and transaction IDs. This change reduces privacy concerns by eliminating the need to report sensitive information.
Additionally, the form now requires only the transaction date, eliminating the need to report the exact time. Brokers are no longer required to specify their type of brokerage, further streamlining the form.
According to Raj Mukherjee and Seth Wilks, Directors of the IRS Office of Digital Asset Initiative, the new form will help taxpayers comply with the complex regulations surrounding digital assets, making the process more straightforward.
Crypto tax experts have praised the revised 1099-DA form as a major improvement. Jessalyn Dean, Vice President of Tax Information Reporting at Ledgible, noted that the previous draft was confusing and difficult to understand, while this version is much clearer and easier to use.
However, Andrew Rossow, an attorney and CEO of AR Media Consulting, believes that while these changes address some privacy issues, they fall short. He argues that the IRS could further simplify the filing process for investors.
Rossow noted that the IRS has focused on centralized exchanges, often overlooking the growing decentralized finance (DeFi) ecosystem, which operates under different rules.
This oversight could hinder innovation and create an unequal playing field in the industry.
The release of this new draft follows the IRS’s recent guidelines for brokers on reporting virtual currency transactions issued just two months ago.
The agency also plans to consider decentralized and self-custodied brokerage businesses as part of its renewed focus in the coming year. Although the 1099-DA form is not yet finalized, it is expected to be implemented for the 2025 tax year.
The IRS’s updated approach emphasizes increased disclosure and oversight in the crypto space. While the new 1099-DA form is a step in the right direction, it still needs further refinement to better accommodate individuals dealing with virtual currencies.
This draft signals a significant shift in the IRS’s approach to crypto taxation. By addressing privacy concerns and simplifying reporting requirements, the IRS aims to make it easier for taxpayers to comply with regulations in the evolving digital asset landscape.
However, as the crypto industry continues to grow and change, further adjustments may be necessary to ensure that regulations keep pace with innovation and do not hinder the development of decentralized financial systems.
With public feedback now open, the IRS has an opportunity to refine the 1099-DA form further and ensure it meets the needs of both the agency and taxpayers.
As the 2025 tax year approaches, the crypto community will be closely watching how these regulations unfold and impact the broader industry.
Tornado Cash Developer, Alexey Pertsev, Seeks Funds for Legal Defense
Alexey Pertsev, a developer for Tornado Cash, is raising funds for his legal defense in the Netherlands, sparking concerns about the criminalization of open-source software.
Pertsev is seeking financial support to aid his legal battle following his conviction. On August 10, Pertsev publicly appealed for financial assistance via a video on X (formerly Twitter).
He hopes to gather between $750,000 and $1 million to cover his legal fees. A support account on X highlighted the substantial resources backing the government’s prosecution against him.
The campaign calls for supporters to donate Ethereum through Juicebox, a decentralized fundraising platform. Pertsev’s team emphasizes that his fight is not just for personal freedom but also for the broader principles of privacy and open-source software development.
The campaign message states, “If you believe developers shouldn’t face jail time for their code, please consider donating ETH.”
Early reactions from the crypto community have been encouraging.
The “Defend Alexey” fundraiser on Juicebox has already raised 15.35 Ethereum, valued at over $40,000. Privacy researcher Ameen Soleimani has also launched a limited edition NFT collection to help fund Pertsev’s legal expenses.
These efforts build on past support from the crypto community. Notably, Ethereum co-founder Vitalik Buterin donated over $100,000 to support Pertsev and Roman Storm, who is currently detained in the US.
Privacy advocates and blockchain experts closely watch Pertsev’s case, worried about the implications for developers if others misuse their open-source code.
The case raises concerns about holding developers liable for others misusing their code. Daniel Buchner, Head of Decentralized Identity at Block, argues that developers shouldn’t face criminal or civil penalties for how their open-source software is used.
“That Alex’s code was primarily used for shitcoins is irrelevant; everyone who cares about justice and human freedom must fight the insane, authoritarian idea that people using open-source software in a way the government doesn’t like makes the developer criminally/civilly liable,” said Buchner.
Globally, regulators have intensified their scrutiny of privacy protocols, claiming that terrorist groups and rogue states like North Korea use these technologies to hide illegal digital assets. Consequently, the US government has taken legal action against several crypto privacy service providers, including the co-founders of Samourai Wallet, for allegedly violating local laws.
These actions reflect a trend of increased regulatory focus on privacy technologies, which are often viewed with suspicion due to their potential misuse.
Pertsev’s case has gained significant attention from the global crypto community, viewed as pivotal for the future of open-source development. It raises questions about how much responsibility developers have for the actions of those using their code.
The outcome could set a precedent for similar cases, affecting how developers approach open-source projects and their willingness to contribute to privacy-focused technologies.
As Pertsev continues to seek support for his defense, his case highlights the legal and ethical challenges facing the crypto industry. It underscores the need for a nuanced approach to regulating technologies that can be used for both legitimate and illicit purposes.
The crypto community’s support for Pertsev’s fundraising efforts shows a strong commitment to defending developers and the principles of open-source development, despite increasing regulatory pressures.