Incheon, South Korea – On June 3, South Korean police announced the arrest of 13 individuals involved in a suspected “fake crypto mining” scam. The group allegedly promised investors significant profits from mining Cardano (ADA) and other cryptocurrencies. Seven suspects remain in custody on organized crime charges, while the remaining six have been released on police bail.

The police, during raids conducted by the Incheon Central Police Station, seized evidence including mobile phones, laptops, and cash. The suspects reportedly lured victims with promises of lucrative returns from crypto mining “machines.”

Source: Vincent van Zeijst [CC BY-SA 4.0])

The group, led by two 29-year-old individuals, is accused of defrauding 69 investors, ranging in age from their 30s to 60s, out of approximately $518,000. Operating from February 14 to March 4, the scam involved a call center using a dark web database of personal information purchased with Bitcoin (BTC).

Source: Incheon Central Police Station.

The call center contacted potential victims with a “VIP promotional offer” to buy and remotely operate crypto mining rigs at low prices, claiming higher investments would yield greater profits. Police revealed the suspects used fake crypto wallets for ADA, Ethereum (ETH), and Solana.

The masterminds attempted to evade capture for a month, dismantling their operations and deleting evidence. Despite this, police tracked them down and discovered connections to violent gangs in Seoul and Incheon. Investigators also found drugs and a syringe at one suspect’s home.

Authorities have frozen assets worth $88,000 and requested a court to block an additional $360,000. Luxury goods and a high-end vehicle were confiscated from the masterminds’ residence. Police continue to support victims in recovering their lost funds and noted a rise in crypto mining-themed scams over the past year.

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Nayib Bukele, 42, has officially begun his second term as El Salvador’s president, set to govern for another five years with near-total control of parliament. The swearing-in ceremony took place at the National Palace in San Salvador, where President Bukele received the presidential blue and white sash from Ernesto Castro, the President of the Legislative Assembly. The event was broadcast live, drawing crowds of cheering Salvadorans.

President Bukele has been a strong supporter of cryptocurrency, and it was recently revealed that El Salvador holds more Bitcoin than previously estimated. In a recent post on X, Bukele disclosed that the country has moved over 5,000 bitcoins, valued at over $400 million, into a cold wallet.

Donald Trump Jr. attended the inauguration, congratulating Bukele on his second term and joking about not having to imprison his political opponents, to which Bukele responded, “we don’t jail political opponents here.” Crypto enthusiasts took to social media platform X to congratulate Bukele on his decisive victory for the 2024-2029 term.

El Salvador’s Bitcoin Adoption

In September 2021, El Salvador became the first nation to adopt Bitcoin as legal tender when the cryptocurrency was trading around $51,000. This move aimed to enhance financial inclusion, streamline remittance payments, and promote financial innovation. Despite facing criticism, particularly after Bitcoin’s price fell from its all-time high of $69,000 in November 2021, El Salvador has remained committed to its Bitcoin strategy. Currently, Bitcoin is trading around $68,400.

In May, El Salvador launched a cutting-edge online platform to track the country’s Bitcoin Treasury. This platform is a significant step towards enhancing the financial transparency of government operations, providing public access to data regarding El Salvador’s BTC investments.

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Unchained, a Bitcoin financial services firm based in Austin, Texas, has teamed up with the University of Austin (UATX) to create a pioneering long-term endowment fund.

The initiative aims to raise $5 million, which will be invested in Bitcoin for at least five years, according to Unchained’s announcement.

As the first-ever long-term endowment fund held in Bitcoin, this collaboration seeks to integrate cryptocurrency into higher education and explore alternative financial strategies.

“By incorporating Bitcoin into its endowment, UATX is setting a precedent for other academic institutions to explore alternative and potentially more resilient financial models,” the announcement states.

Unchained CEO Donates 2 BTC

To jumpstart the fund, Joseph Kelly, CEO of Unchained, personally donated 2 BTC, equivalent to approximately $137,000 at current prices.

“The world needs more great founders, and we are excited to bring together our communities to build something new,” Kelly said in a post on X on May 31.

Unchained will also provide a secure collaborative custody vault to store the endowment fund, ensuring the safety and integrity of the Bitcoin holdings.

Very proud to help drive this initiative with @uaustinorg. The world needs more great founders and we are excited to bring together our communities to build something new! https://t.co/KTHKUa7r91

— Joseph Kelly (@josephkelly) May 31, 2024

Beyond financial contributions, the partnership aims to foster community engagement through various means. Joint marketing campaigns, events, guest lectures, and debates will be organized to educate the public about the benefits of Bitcoin and its potential to revolutionize finance and education.

The initiative aligns with the core missions of both Unchained and UATX, emphasizing principles such as sound money, resistance to censorship, and challenging the status quo.

While UATX is pioneering the Bitcoin endowment fund, it is not the first American university to venture into the world of cryptocurrencies.

Stanford University’s Blyth Fund increased its exposure to Bitcoin in March by allocating 7% of its portfolio to the digital asset through BlackRock’s spot Bitcoin ETF.

Ivy League institutions like Harvard, Yale, and the Massachusetts Institute of Technology (MIT) have also explored crypto investments since as early as 2018, signaling a growing interest in the potential of digital assets within renowned academic institutions.

Major Hedge Funds Embrace Bitcoin ETFs

Out of the top 25 hedge funds in the United States, 13 have entered the market by investing in spot Bitcoin ETFs during the first quarter.

For instance, Point72, a renowned hedge fund with $34 billion in assets under management, has revealed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC). Point72 held $77.5 million worth of FBTC at the end of the first quarter.

Prominent hedge funds, including Elliott Capital led by Paul Singer and Millennium Management owned by Izzy Englander, have publicly shared their investments in these new funds. Millennium Management stands as the largest institutional holder of these funds, with approximately $2 billion invested as of March 31.

Other notable names among the investors include Fortress Investment Group and Schonfeld Strategic Advisors.

While these hedge funds’ purchases of spot ETFs may be seen as a long-term bet on the potential price appreciation of Bitcoin, it’s important to note that these vehicles can serve other purposes as well.

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Bloomberg ETF analyst James Seyffart believes the approval of spot Ethereum ETFs was likely driven by political considerations rather than purely financial factors.

In an interview with Cryptonews’ Rachel Wolfson at Consensus 2024, Seyffart discussed the timeline and approval process for spot ETH ETFs, including the 19b-4 rule change and the role of the SEC. He suggested that the political climate, influenced by the Biden administration and responses from the crypto community, played a significant role in the approval process.

On May 23, the SEC officially approved 19b-4 applications from major firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise to issue spot Ether ETFs.

“We think this was a complete political decision. We think it was a 180 from the SEC,” Seyffart stated.

@EricBalchunas and I cant see it on the front facing website yet but Phoenix is always right in my experience. https://t.co/xI37RVXqRo

— James Seyffart (@JSeyff) May 23, 2024

SEC Initially Unlikely to Approve Spot ETH ETFs

Seyffart noted that there were initially low expectations for approval due to the SEC’s hostile stance and lack of communication. He indicated that the eventual approval represented a significant deviation from the SEC’s usual position, likely influenced by political pressures.

“I think the SEC, until the week before, was planning to deny the Ethereum ETFs,” he said. “There’s no smoking gun that says this is exactly what happened… but all signs are pointing. There’s a lot of circumstantial evidence.”

He also highlighted the timing of the decision, which coincided with notable political events, such as former President Trump’s pro-crypto stance and bipartisan support for crypto-friendly legislation.

Increased Likelihood of Approval

Seyffart and his colleague Eric Balchunas have gained prominence for their analysis of Bitcoin and Ethereum ETFs. They increased the likelihood of spot ETH ETF approval to 75%, up from a previous estimation of 25%, especially after the final deadline for 19b-4 forms passed last week.

During the interview, Seyffart predicted that the Ethereum ETFs might launch within weeks despite the typically lengthy approval process. “Usually that process takes up to five months on the long end. More standard is 3 to 4 months,” he said. “We are expecting this to be more expedited obviously, especially if this is political.”

Limited Prospects for Other Crypto ETFs

Seyffart expressed skepticism about the approval of other crypto ETFs, such as Solana, without significant regulatory changes. He emphasized the need for a regulated market to monitor these assets for fraud and manipulation.

In contrast, crypto investor and trader Brian Kelly has suggested that Solana could potentially be the next cryptocurrency to have a spot ETF in the United States. On a recent episode of CNBC’s ‘Fast Money’, Kelly, founder and CEO of the BKCM Digital Asset Fund, speculated, “The trade now is, who’s next? You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”

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Judge Throws Out DEBT Box Case, Orders SEC to Pay $1.8M

The US District Court for the District of Utah dismissed the SEC’s case against DEBT Box on Tuesday and imposed fines exceeding $1.8 million on the regulatory body for its bad faith actions. These fines cover legal fees and court costs, following the court’s finding that the SEC misled the judge to obtain a temporary order in its favor.

In the same May 28 filing, Judge Robert Shelby approved the SEC’s request to dismiss the ongoing case without prejudice, allowing the agency to file a related case in the same court at a later date.

DEBT Box and its co-defendants had argued for the case to be dismissed with prejudice to prevent the SEC from initiating further enforcement measures. Despite this, the company expressed satisfaction with the ruling, viewing it as a favorable outcome. “This is a significant win for us. It means that the SEC cannot proceed with the case as it stands,” the firm stated on X.

DEBT Box Challenges SEC’s $49M Fraud Allegations

The judge referred to a March ruling that found the SEC acted in bad faith when obtaining a temporary freeze on DEBT Box’s assets. DEBT Box had contested the SEC’s information, alleging inaccuracies that could result in sanctions against the SEC.

In a lawsuit filed in July 2023, the SEC accused DEBT Box of operating a fraudulent $49 million scheme involving the sale of “node licenses” promising profits from cryptocurrency mining. The SEC claimed that these cryptocurrencies were never actually mined, casting doubt on the operation’s legitimacy.

The case took an unexpected turn when DEBT Box challenged the SEC’s allegations. The SEC had secured a temporary restraining order to freeze the platform’s assets, but DEBT Box accused the SEC of distorting facts to obtain it.

Judge Robert Shelby demanded an explanation from the SEC regarding its actions. Under scrutiny, SEC attorneys admitted to errors but appealed to the judge to avoid imposing formal sanctions.

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Grayscale’s forthcoming spot Ethereum exchange-traded fund (ETF) is anticipated to experience substantial outflows, with projections averaging around $110 million per day.

According to a recent report by analysis firm Kaiko, this projection is based on the observed pattern with Grayscale’s Bitcoin Trust (GBTC) after it transitioned from a closed-end fund to an ETF on January 11. In the first month following its conversion, GBTC experienced outflows amounting to 23% of its assets under management (AUM), totaling $6.5 billion.

Grayscale’s Ethereum ETF Holds $11 Billion in AUM

Currently, Grayscale’s Ether Trust (ETHE) has an AUM of $11 billion. If ETHE experiences outflows similar to GBTC, it could result in average daily outflows of $110 million, which represents about 30% of Ether’s average daily trading volume on Coinbase, according to Kaiko.

Recent data indicates that over the past three months, ETHE has traded at a discount of up to 26% compared to its net asset value (NAV).

Anticipated Outflows Upon Conversion to Spot ETF

Kaiko researchers noted that once ETHE transitions into a spot ETF, outflows or redemptions are expected as the discount narrows. A similar trend was seen with GBTC, where its discount to NAV significantly decreased post-conversion, allowing investors to exit the trust at or above their entry price. GBTC traded at a discount of up to 17% before its conversion, but this gap has gradually narrowed over time.

Following the Securities and Exchange Commission’s (SEC) initial approval of spot Ether ETFs on May 23, ETHE’s discount has already started to narrow. Despite this, the ETF has yet to begin trading as a spot ETF. Data from YCharts shows that ETHE’s discount exceeded 25% on May 1 but gradually decreased over the month amid speculation about the SEC’s potential approval of spot Ether ETFs. By May 24, the discount had reduced to 1.28%.

Potential Impact and Future Prospects

Kaiko analysts also highlighted that GBTC’s initial outflows were eventually surpassed by inflows into other Bitcoin ETFs by the end of January. They concluded that while initial inflows into Ether ETFs might disappoint in the short term, the approval itself has significant implications for Ether as an asset, reducing some of the regulatory uncertainty that has impacted its performance over the past year.

Broader Implications of Spot Ether ETF Approval

The recent approval of Ethereum ETFs has paved the way for more crypto investment products, as per research from TD Cowen’s Washington Research Group. Although the speed of approval caught some off guard, the group viewed it as an inevitable outcome following the approval of Bitcoin ETFs earlier this year.

Jaret Seiberg, a member of TD Cowen’s team, noted that the Ethereum ETF approval arrived about six months earlier than expected but was predictable after the SEC approved crypto futures ETFs. Furthermore, the approval of spot ETH ETFs potentially confirms Ether’s status as a non-security, according to industry experts.

Bloomberg ETF analyst James Seyffart has mentioned that the approval of these commodity-based trust shares suggests that the SEC explicitly recognizes Ether as not being a security. Seyffart further suggested that this recognition could extend to other tokens as well, solidifying their classification as commodities.

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Former US President Donald Trump has thrown his support behind cryptocurrencies, expressing enthusiasm for “all things related to this new and burgeoning industry.” Trump reiterated his pro-crypto stance during a speech at the Libertarian National Convention, stating, “I am very positive and open-minded to cryptocurrency companies.”

Trump emphasized his commitment to ensuring the survival of cryptocurrency, contrasting his stance with what he perceives as President Biden’s attempts to stifle the industry. In a post on Truth Social, Trump criticized Biden, accusing him of wanting cryptocurrency to “die a slow and painful death.” He vowed that such an outcome would never occur under his leadership.

Trump’s endorsement of crypto comes amid criticism of President Biden’s anti-crypto position. However, with the US election approaching, the Biden administration appears to be softening its stance on cryptocurrency. The recent approval of eight spot Ethereum ETF applications by the US Securities and Exchange Commission (SEC) signals increasing acceptance of crypto within traditional finance.

Trump is keen on positioning the US as a global leader in cryptocurrencies, recognizing the importance of appealing to younger, crypto-savvy voters. He has begun accepting crypto campaign donations and aims to capitalize on the growing interest in the industry.

If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC
Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD

All he has done is make it nearly impossible for… https://t.co/uBKupxLhS9

— Mark Cuban (@mcuban) May 10, 2024

Trump’s embrace of cryptocurrency has drawn attention from notable figures like Shark Tank billionaire Mark Cuban, who warned that Trump’s stance on crypto could impact the outcome of the 2024 elections. Cuban highlighted the significance of crypto voters and their potential influence on the electoral landscape.

Despite the relatively low percentage of Americans using cryptocurrency, it holds significant sway in US politics. Crypto businesses are poised to play a significant role in the upcoming 2024 elections, with reports suggesting they could spend over $80 million on political campaigns.

In conclusion, Trump’s support for cryptocurrency underscores its rising prominence in the political arena. As the debate over crypto regulation continues, its impact on electoral outcomes and policymaking is expected to grow, shaping the future of the industry in the United States.

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The crypto, bitcoin realm is a bustling marketplace filled with exciting opportunities. But for many, it feels like stepping into a maze – confusing, overwhelming, and sometimes even a bit scary. Despite its colossal market cap, the market hides dangers. Scams, bad actors, and the fear of losing your funds are just some of the dangers that await even the most cautious users.

And finding the right info? It’s like looking for a needle in a haystack.

The most frustrating part? Fees. Ever tried to swap or bridge your tokens, only to be bombarded with constant fluctuating rates? 

We Get It. 

“We’ve all been there,” admit Moe El-Shibib and Selim Sezgin, the founders of Ponder. “Lost money on platforms with hidden fees, wrestled with confusing wallets, and wasted time deciphering crypto jargon – it can be extremely overwhelming. We get it.”

That’s what sparked the idea for Ponder – a web3 comparison tool that gives you the best rates from swapping, bridging to staking and more. It ponders for you so you can make informed decisions, a way to help others avoid the same pitfalls.

Ponder is more than a guide. It’s a game changer.

“Our vision for Ponder is for it to be the ‘go-to’ tool in the Web3 space. Whether it’s finding the best platforms for your requirements, providing articles you can trust or discovering brand new platforms that otherwise would have been buried in the latter pages of Google.” 

Beyond swaps and bridges, users will soon be able to explore Ordinals, NFT and RWA markets, DeFi solutions, Memecoins and much more. Ponder is one of the first AI-powered Web3 comparison engines leveraging EigenLayer AVS technology and advanced language models. Whether you’re exploring foundational pillars of Web3 or emerging trends like EigenLayer restaking, Ponder allows you to compare and execute the best options across various protocols, including identifying optimal routes and yields – all within a single intuitive interface.

It also provides educational guides to empower users with the knowledge they need to navigate the crypto landscape confidently.

“We’re building Ponder with you in mind. Expect exciting updates and new features in the future!”

Bold moves. Big wins.

Bold moves need the right strategies. Ponder empowers you to compare, trade and own crypto with confidence, maximizing your chances of big wins.

Think of Ponder as your crypto sidekick, making the complex world of crypto easier to navigate and helping you make smart choices.

Own a piece of Ponder, shape the Web3 future.

Gain voting rights and directly influence the evolution of Ponder by utilizing the staking protocol. Have a say in which chains, tokens, platforms, and protocols Ponder integrates next with your $PNDR tokens. 

Ponder is launching soon! Stay connected to Ponder and be the first to know when the sale opens on WePad and Ape Terminal.

Follow Ponder! X (Twitter) and on Telegram

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The concept of the Metaverse has recently garnered significant attention, enticing many to explore its investment potential.

Defined as a virtual universe where users interact within computer-generated environments and with other participants in real-time, the Metaverse integrates a spectrum of technologies including virtual reality (VR), augmented reality (AR), blockchain, and artificial intelligence (AI).

Market Size and Growth

The global Metaverse market has witnessed rapid expansion, with its value reaching approximately $63.83 billion in 2022. Projections suggest an impressive compound annual growth rate (CAGR) of 44.4% from 2023 to 2030, potentially culminating in a market worth $1.6 trillion by 2030.

This growth trajectory is fueled by various factors including advancements in AR and VR technologies, the burgeoning popularity of social media and gaming platforms, and the integration of blockchain technology. Over the past few years, the Metaverse has experienced significant traction, propelled by the surging demand for immersive virtual experiences.

For instance, platforms like Roblox and Fortnite have seamlessly merged gaming with social media functionalities, expanding their user bases considerably. The global shift towards digital transformation, accelerated by the COVID-19 pandemic, has further propelled interest and investment in the Metaverse.

Emerging Trends

Several key trends are shaping the Metaverse landscape. AR and VR technologies are spearheading immersive experiences, particularly in entertainment and gaming sectors. Major companies like Meta are heavily investing in these technologies, driving the market share for AR and VR devices.

Platforms such as Roblox, Fortnite, and The Sandbox are pioneers in integrating social media with gaming, offering users immersive experiences and fostering engagement and revenue growth. Additionally, enterprises are increasingly embracing Metaverse technologies for virtual meetings, training sessions, and customer engagement, especially in the realm of remote work and collaboration.

The synergy between blockchain and Metaverse technologies is also gaining traction, providing the infrastructure for secure transactions and digital ownership within virtual environments.

User Base and Applications

The Metaverse is attracting a diverse user base and applications:

Gaming Community: Platforms like Roblox and Fortnite offer immersive gaming experiences, attracting a large and dedicated user base, particularly among younger demographics.

Consumers: Individuals are actively participating in virtual events, purchasing NFTs, and engaging in virtual commerce within the Metaverse.

Enterprises: Businesses are leveraging Metaverse technologies for remote collaboration, customer interactions, and innovative engagement strategies.

Investment Landscape

Key investors are making significant strides in the Metaverse:

Industry giants such as Meta, Microsoft, Tencent, and Nvidia are channeling substantial investments into the Metaverse to enhance their platforms and create innovative user experiences.

While investments are pouring in, regulatory frameworks around digital assets and virtual environments play a pivotal role in shaping investor sentiment and participation.

Why Invest in the Metaverse?

The Metaverse presents a plethora of opportunities for investors:

Its amalgamation of cutting-edge technologies offers a unique and immersive user experience, fostering high engagement levels and unlocking new revenue streams.

However, investors should remain cognizant of regulatory challenges and the necessity for ongoing innovation to navigate this rapidly evolving landscape.

In conclusion, the Metaverse represents a dynamic and burgeoning market with vast potential. With continuous technological advancements, growing enterprise adoption, and substantial investments, the future of the Metaverse appears promising. Nonetheless, investors should exercise diligence and stay abreast of regulatory developments to capitalize on the opportunities presented by this transformative digital frontier.

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A U.S. district court has recently ruled that crypto influencer Ian Balina violated U.S. securities laws. Judge David Alan Ezra found Balina guilty of promoting and selling SPRK tokens without proper disclosure, determining that the tokens met the criteria of the Howey Test, classifying them as securities.

Balina was charged in September 2022 for his involvement in the unregistered initial coin offering (ICO) of SPRK tokens. The Securities and Exchange Commission (SEC) argued that these tokens required registration and disclosure.

The court concluded that Balina promoted and sold SPRK tokens through various social media platforms without disclosing that he was receiving a 30% bonus as compensation for these promotions, violating Section 17(b) of the Securities Act.

Additionally, Balina organized an investment pool offering SPRK tokens to investors without properly disclosing his financial interest in the tokens received from Sparkster, the company behind SPRK.

According to the SEC, the token offering raised approximately $30 million from nearly 4,000 investors worldwide between April and July 2018.

In response to the SEC’s charges, Balina’s website posted a statement calling the charges “baseless.” It denied receiving any compensation and claimed that there was no evidence to support such allegations. The statement also suggested that Balina might be a victim of fraud by the Sparkster team, similar to other investors.

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The American Bankers Association (ABA) urged House leaders on Monday to support a bill that would prevent the Federal Reserve from creating a central bank digital currency (CBDC) for individuals and using it as a monetary policy tool.

Congressman Tom Emmer (R-Minn.) introduced the CBDC Anti-Surveillance State Act (H.R. 5403) in September 2023. With backing from 165 cosponsors, the bill is expected to be voted on this week.

“ABA believes strongly that a CBDC, defined as a digital form of central bank money that is widely available to the general public, is unnecessary in the United States and would present unacceptable risks and costs to the financial system,” the association stated in a letter to Speaker Mike Johnson and Minority Leader Hakeem Jeffries.

“The dollar is already digital today, and it is unclear how issuing a CBDC would improve financial inclusion or achieve other laudable goals,” the letter added.

Fed Studying CBDC Despite Reservations from Top Officials

The ABA’s letter also warned that a CBDC could disrupt the current financial system. It argued that a CBDC might fundamentally alter the relationship between citizens and the Federal Reserve, weaken the role of banks, worsen economic downturns, and complicate the Fed’s ability to manage the economy effectively.

While the US has not launched a CBDC, the government has shown interest in digital currency initiatives, such as the New York Fed’s 12-week pilot program testing a simulated digital dollar.

Despite hesitations from top officials like Fed Chair Jerome Powell and Governor Michelle Bowman, the Federal Reserve continues to research the potential of a digital dollar.

ABA Warns of Crippling Impact on Banks

The ABA also expressed concern about the Fed’s FedNow Service for instant payments, launched in October, which some experts fear could be a stepping stone toward a future CBDC.

The association argued that a CBDC would harm banks by drawing money away from them and into the Fed, thereby reducing banks’ capacity to lend and stunting economic growth. In essence, the ABA sees a CBDC as a powerful competitor that could siphon deposits from banks, impairing their ability to provide loans that support local economies.

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Japanese manga-inspired game Captain Tsubasa has made its debut on the Oasys blockchain platform, offering players the opportunity to collect 5,000 non-fungible tokens (NFTs).

In an announcement shared via a blog post, Oasys Blockchain revealed that the game was developed by Mint Town, Co., Ltd. and BLOCKSMITH&Co., a subsidiary of the renowned mobile gaming company KLab Inc. in Japan. BLOCKSMITH&Co. specializes in the development and distribution of blockchain technology and crypto assets utilizing NFTs.

Oasys, a decentralized blockchain gaming protocol, distinguishes itself with a dual-layer approach within the Layer 1 blockchain landscape.

Players can engage in Captain Tsubasa by collecting NFTs through active participation. The game offers an immersive experience, allowing players to nurture and collect character NFTs from the original manga series. Captain Tsubasa follows the story of Tsubasa Ozora, a young Japanese elementary school student passionate about football and aspiring to lead Japan to victory in the FIFA World Cup.

In 2023, SoftBank, a prominent Japanese conglomerate, became an official network validator on Oasys, reinforcing the blockchain’s stability and security as a validator. Validators play a crucial role in verifying transactions on a blockchain network.

Captain Tsubasa joins a roster of major gaming publishers on the Oasys blockchain, which boasts support from initial validators such as Bandai Namco Research, SEGA, Ubisoft, Netmarble, Wemade, Com2uS, and Yield Guild Games.

The Japanese cryptocurrency market significantly contributes to the growth of gaming, particularly in play-to-earn games like Stepn. The country’s interest in blockchain gaming, driven by a cultural familiarity with loyalty points programs known as “poikatsu,” underscores its enthusiasm for ecosystem rewards.

Furthermore, Japanese-based Web3 gaming protocols like Oasys facilitate the seamless development of reward-based Web3 games. Developers can leverage Oasys to deploy customized gaming ecosystems featuring a diverse range of play-to-earn games and metaverses, catering to various gaming preferences from casual to hardcore genres.

The year 2024 witnesses rapid growth in Web3 gaming, attracting increased venture capital investment. In 2023 alone, blockchain gaming-related funding rounds reached an estimated $1.7 billion, with a significant portion allocated to the development of over 270 blockchain games on Immutable, a Layer 2 platform for NFTs and blockchain gaming.

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Cryptocurrency exchange Kraken reassured users it has no plans to delist Tether’s USDT stablecoin in Europe, committing to continue meeting all legal requirements.

In an announcement on social media, Kraken’s global head of asset growth and management, Mark Greenberg, addressed recent reports suggesting the exchange was “actively reviewing” and potentially planning to delist USDT from the European market. Greenberg emphasized that European clients value access to USDT and that the firm is exploring all options to offer USDT under the upcoming regulatory regime.

The European Union’s Markets in Crypto Assets regulation (MiCA), set to take effect later this year, will impose new rules on stablecoins, focusing on their promise of a stable value against fiat currencies.

SEC’s Lawsuit Against Kraken

In November 2023, the Securities and Exchange Commission (SEC) initiated a lawsuit against Kraken, alleging it had been operating an unregistered securities trading platform. This lawsuit followed a settlement earlier in the year over charges related to Kraken’s former staking service.

In February 2024, Kraken filed to dismiss the lawsuit, arguing that the SEC’s case relied solely on a registration-based argument regarding Kraken’s operation as an unlicensed securities entity. Kraken maintained that cryptocurrencies listed as SEC-compliant should be treated as commodities, not securities.

Kraken has since escalated its position, urging the court to dismiss the SEC claims to avoid a “significant reordering” of the US financial regulatory structure, according to court filings submitted in the Northern District of California.

The SEC opposed Kraken’s motion to dismiss, asserting that its enforcement action falls within its congressionally granted authority, emphasizing its role in enforcing registration requirements for securities intermediaries. Kraken urged the U.S. court to dismiss the SEC claims to prevent a major shift in the US financial regulatory landscape.

Stablecoin Safety Debate

There has been ongoing debate over the safety of stablecoins, specifically Tether’s USDT and USD Coin (USDC). As of April, USDT’s market capitalization of $104 billion was more than triple USDC’s $32 billion market cap. This difference is partly due to the network effect, as USDT launched in 2014, while USDC launched in 2018, after USDT had already become a popular trading pair asset on crypto exchanges. The dominance of USDT is further highlighted by its daily trading volume, which is 7.5 times higher than USDC’s trading volume.

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The blockchain gaming industry saw an unprecedented surge in investment capital during April, raising a total of $988 million.

While the first quarter of 2024 saw a cautious approach with only $288 million raised among blockchain gaming startups, the beginning of the second quarter marked a significant shift in investor sentiment.

Data from DappRadar revealed that April experienced a remarkable influx of capital into the web3 gaming sector, reaching $988 million. This amount set a new record since January 2021. Sara Gherghelas, a blockchain analyst at DappRadar, highlighted that April’s investment surge “has already surpassed the entire second quarter of 2023, which was the best-performing period of that year with $973 million.”

“This increase in capital comes at a crucial time for the gaming industry, which has faced significant turbulence, including 20,000 layoffs over the past eighteen months.”

Gherghelas noted that 89% of the funds were allocated to investment firms, 7% supported infrastructure, and 5% went to web3 games. A notable highlight of this investment wave was the launch of a $600 million games fund by Andreessen Horowitz (a16z) as part of a larger $7.2 billion fundraising effort.

DappRadar emphasized that a16z’s latest fund continues their “dedication to the gaming sector,” totaling $1.2 billion solely allocated to gaming ventures since their initial $600 million raised in May 2022.

In Q1, the sector raised $288 million in funding, marking a 57% decrease compared to Q4 2023. During that time, the focus of investments was primarily on web3 games and infrastructure, reflecting a period of “foundational building aimed at enhancing the web3 gaming ecosystem.

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Presidential candidate Donald Trump recently announced his support for cryptocurrencies, pledging to end the hostility towards the crypto industry in the U.S. if re-elected. He emphasized, “If we’re going to embrace it, we have to let them be,” and urged crypto enthusiasts to vote for him.

Previously, Trump had criticized Bitcoin and other cryptocurrencies. In July 2019, he described them as “not money,” condemning their volatility and lack of intrinsic value, and expressing concerns about their potential use in illegal activities such as drug trafficking.

Crypto’s Influence on Voter Preferences

According to Coinbase, around 20% of American adults, or over 50 million people, own crypto. Markus Levin, co-founder of XYO Network, noted that this significant figure has caught the attention of political candidates.

“To embrace crypto and solid crypto regulation is a good election strategy and clever policy more generally,” Levin said. “Absolutely, a sizable number of people in the crypto community will vote for Trump based on his seemingly positive approach towards the industry.”

Jonathan Thomas, CEO of prime brokerage Blueberry, added that Trump’s pro-crypto stance will appeal to voters who prioritize cryptocurrency as a key issue. “This is an aspect that some people hold dear to their hearts, and will vote for which candidate supports their bias,” he said. However, he cautioned that Trump’s crypto-friendly rhetoric will only resonate with enthusiasts if it aligns with their other priorities.

Skepticism Around Trump’s Crypto Advocacy

NFT enthusiast Thorne Melcher criticized Trump’s recent endorsement as insincere, highlighting his past negative remarks. “Given crypto’s potential to facilitate the purchase of trans hormone replacement therapy, abortions, and drugs circumventing politics pushed by conservatives, it only feels like a matter of time before they involve it in their authoritarian crackdowns,” she said.

Melcher also noted that while Biden isn’t particularly favorable towards cryptocurrency, supporting Trump solely for his crypto stance doesn’t offer substantial benefits, and Trump is unlikely to gain significant electoral support solely through this endorsement.

Trump’s Strategy to Attract

Trump’s Strategy to Attract Crypto Voters Away from Biden

Once a crypto skeptic, Trump has now become an active participant in the NFT market, selling over $1 million worth of NFTs, some featuring his own image. This shift is seen as a strategic move to attract crypto supporters.

Stephanie Vaughan, co-founder of DeFi firm Veda, observed that many in the crypto community are leaning towards Trump or distancing themselves from Biden. “During the last election, many crypto-focused voters likely supported Biden because it wasn’t clear he would take such a hardline approach against the industry,” she explained. “It’s now evident that the Biden Administration’s ‘regulation by enforcement’ stance is unworkable for many in the crypto sector.”

Vaughan noted that Trump recognizes the significance of crypto as a key issue for a considerable portion of voters in the upcoming election, prompting his efforts to attract them away from Biden.

In summary, while Trump’s recent pro-crypto statements mark a significant shift from his previous skepticism, opinions are divided on whether his stance is genuine or opportunistic. As the 2024 election approaches, his strategy to appeal to crypto enthusiasts could play a pivotal role in shaping voter preferences.

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Developer Alexey Pertsev, associated with Tornado Cash, has filed an appeal with the s-Hertogenbosch court of appeal following a conviction for money laundering.

The appeal process is expected to last several months, though it’s uncertain if the appeal has been granted.

Pertsev, facing a 64-month prison term, may seek home confinement during the appeal trial.

Following the verdict, Pertsev was immediately taken into custody to begin serving the sentence.

The court concluded that Tornado Cash facilitated money laundering activities, leading to Pertsev’s conviction.

Pertsev was apprehended in the Netherlands in August 2022, coinciding with Tornado Cash’s blacklisting by the U.S. government.

The U.S. Treasury linked Tornado Cash to the North Korean hacking group Lazarus, which was implicated in major crypto thefts, including the $625 million Axie Infinity’s Ronin Network hack.

Roman Storm and Roman Semenov, also involved in Tornado Cash’s development, face allegations of money laundering and sanctions violations in the U.S.

Storm is set to stand trial in September, while Semenov remains at large.

Despite Storm’s motion to dismiss charges, the DOJ maintained that Tornado Cash operated as a mixer, comprising a website, user interface, smart contracts, and a network of “relayers.”

Democratic representatives proposed the US Blockchain Integrity Act to curb cryptocurrency mixers, aiming to deter illicit fund flow and promote transparency.

Amidst the crackdown, Bitcoin Fog founder Roman Sterlingov was convicted of money laundering and related charges.

Tornado Cash has been added to the U.S. Treasury’s Specially Designated Nationals list, prohibiting American usage of the mixer.

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Eclipse Labs founder and CEO Neel Somani has officially resigned amid allegations of sexual misconduct, with Vijay Chetty stepping into the role of CEO “effective immediately.”

In a social media announcement, Eclipse Labs confirmed Somani’s departure and Chetty’s promotion from chief growth officer to CEO.

Chetty brings extensive experience in the crypto industry, having held leadership positions at Uniswap Labs, dYdX Trading, and Ripple Labs, in addition to his background in investing at BlackRock.

Somani addressed the allegations on social media, asserting his innocence and readiness to defend his reputation. He previously announced a temporary reduction in his role as the public face of the firm.

The allegations remain unproven in court.

Headquartered in San Francisco, Eclipse Labs is a layer-2 blockchain scaling project built on Ethereum. In March, the company announced a $50 million funding round to support the launch of its Ethereum network scaling solution.

Operational update on behalf of Eclipse Labs: "Effective immediately, Vijay Chetty will be named CEO of Eclipse Labs, taking over for Neel Somani who is departing. Chetty will be elevated from Chief Growth Officer and will assume all responsibilities of CEO.

— Eclipse (@EclipseFND) May 16, 2024

The funding round, co-led by Placeholder and Hack VC, raised the total capital to $65 million. Other notable participants included Polychain Capital, Delphi Digital, Maven 11, DBA, Apollo-managed funds, and Fenbushi Capital.

Eclipse Labs is actively hiring for various positions, including a Growth Engineer, Marketing Lead, and People Operations Manager, with a preference for candidates in the Bay Area.

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A Special Investigation Team (SIT) is currently scrutinizing several officers from the Indian Crime Branch, including an Inspector General of Police (IGP), in connection with a Bitcoin scam.

The SIT has summoned Inspector General of Police (IGP) Sandeep Patil, who was heading the Crime Branch at the time, to address discrepancies in the investigation into the Bitcoin scam.

This scam revolves around hacker Srikrishna Ramesh, also known as Sriki, and his associate Robin Khandelwal. Sriki, the mastermind behind the scheme, hacked the cryptocurrency exchange Unocoin in 2017, making off with 60.6 Bitcoins valued at ₹1.14 crore (around $137,000) at the time. He further hacked various online platforms and laundered the funds using cryptocurrency.

Subsequently, Sriki traded 150 Bitcoins worth ₹5.5 crore with Khandelwal. The duo was initially apprehended in 2020 on charges of using Bitcoin to purchase drugs online.

A first information report (FIR) filed by the SIT in January implicates four former Crime Branch officers—Sridhar Poojar, Prashanth Babu, Chandradhar SR, and Lakshmikanthaiah—alongside Santhosh Kumar, a private cyber expert, for illegal confinement, breach of trust by a public servant, and tampering with evidence related to the Bitcoin scam. The accusations include manipulating the investigation to conceal the misappropriation of recovered Bitcoins.

Initially, investigators claimed to have seized 31 Bitcoins worth ₹9 crores from Sriki and 0.08627702 BTC from Khandelwal. However, these Bitcoins were nowhere to be found. The explanation provided was that Sriki had manipulated the Bitcoin core application to mislead the investigation. Nevertheless, the Crime Branch failed to delve deeper into the specifics of this manipulation.

Furthermore, the SIT’s findings reveal that Inspector Chandradhar compelled Khandelwal into custody and coerced him into transferring money from his account to the crypto exchange Wazirx to purchase Bitcoins. Allegedly, this was to compensate for the Bitcoins that the Crime Branch failed to recover from Khandelwal, who had exhausted his cryptocurrency resources.

Additionally, Rishab, the son of an Additional Director General of Police (ADGP), is under investigation for his purported involvement in the scam. He is accused of utilizing illicitly acquired funds from Bitcoin trading. The SIT alleges that he received a ₹40 lakh cheque during Sriki’s active period and used the funds to purchase a car.

This development comes amid a surge in cryptocurrency-related scams in India. Earlier this month, the Enforcement Directorate cracked down on two major scams, seizing over $30 million. Prior to that, the ED collaborated with the FBI to dismantle a $360 million drug trafficking ring facilitated by cryptocurrencies.

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Since the start of April, the cryptocurrency market has experienced a surge in new token launches, totaling over 1 million new tokens.

Ethereum and Solana have emerged as primary platforms for this token frenzy, with Ethereum hosting more than 370,000 new tokens and Solana boasting an impressive 640,000 new tokens, primarily consisting of memecoins, as per a Dune Analytics dashboard.

Ethereum has seen an overwhelming 372,642 new tokens introduced since April 1.

A significant portion of these tokens, approximately 88%, totaling 327,553, were launched on Coinbase’s layer-2 blockchain, Base.

The surge in Base activity can be attributed to the increasing interest in memecoins, fueled by the low-cost environment for token creation.

Conor Grogan, a director at Coinbase, highlighted that the number of tokens created on Base in this short period is double the total tokens created on Ethereum from 2015 to 2023.

Simultaneously, Solana has witnessed a substantial influx of new tokens, with a remarkable 643,227 tokens created since April.

Among these, about 466,914 were memecoins, according to Step Finance data.

The popularity of memecoins on Solana is evident, with a dedicated dashboard tracking new token launches on the Solana-based memecoin platform pump.fun confirming the trend.

However, the proliferation of memecoins has sparked mixed reactions within the crypto community.

Some argue that it has led to increased scams and rug pulls, diverting funds from more legitimate projects and posing risks to investors.

The surge in new memecoins has also raised concerns about spam and the use of sniper bots, contributing to the perception of memecoins as speculative and volatile assets.

Despite criticisms and concerns, memecoins have proven to be profitable in the first quarter of the year.

For instance, Solana meme coin presale scams have amassed $150 million in SOL from only 33 presales.

This “send coins to this address for presale” reminds me 2017 ICO boom. It happens always when a lot of people become rich accidentally. It’d FOMO until money change their owners. Remember, you made money because someone made wrong decisions.
Very risky game, DYOR

— Andrei Grachev (@ag_dwf) March 19, 2024

However, analysts caution that many of these projects promoted by smaller accounts are dubious or outright scams.

Furthermore, the lack of transparency and accountability within the meme coin space heightens risks for investors, with rug pulls and disappearing funds being prevalent issues.

Andrei Grachev, Managing Partner at DWF Labs, recently warned against token presales, comparing the frenzy to the 2017 ICO boom and emphasizing the importance of making informed investment decisions.

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