An Australian man has been sentenced to two years in prison for cyber-enabled identity theft, which included using fake documents to create online cryptocurrency accounts.

On June 21, the Australian Federal Police (AFP) reported that a 31-year-old man was sentenced at the Melbourne County Court. The sentencing followed an international investigation into a website selling fraud-enabling technology, which was connected to the theft of over 1 million Australian dollars ($670,000) from victims.

Operation Stonefish unveils cybercrime network

The AFP initiated Operation Stonefish in August 2022 following an investigation by UK authorities into a website offering spoofing services for as little as £20. The site facilitated identity theft and financial fraud.

Report Cyber, an Australian Commonwealth Government site for cybercrime reporting, received a complaint from a victim in New South Wales about the unauthorized creation of a bank account.

Source: Australian Federal Police

AFP inquiries revealed that the Australian man used fake driver’s licenses featuring his photo but the real victims’ details to open accounts on two cryptocurrency exchanges.

Arrest and Evidence Seizure

In November 2022, AFP officers executed a search warrant at the man’s residence in Boronia. During the search, they seized an assortment of blank and fake driver’s licenses, a lost passport, and various cards bearing other people’s names. Additionally, authorities discovered an encrypted messaging platform on the man’s computer that contained discussions about identity-based crimes and detailed instruction manuals on creating false documents. The man refused to provide access codes to his devices during the search.

Detective Superintendent Tim Stainton underscored the severe impact of identity theft, stating:

“The theft of someone’s identity can have serious implications for victims and is a serious criminal offense punishable by significant time in prison. A stolen identity and the use of associated fraudulent documentation can have a devastating impact on people’s lives if sold online or used for criminal purposes,” Stainton added.

Conviction and Sentencing

The Australian man was convicted of multiple charges under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Criminal Code. These charges included providing false information, dealing with the proceeds of crime, producing and possessing false documents, and failing to comply with a court order.

He was sentenced to two years in prison, with a ten-month non-parole period. Authorities emphasized that this case highlights the severe consequences of cyber-enabled identity theft and the crucial role of international cooperation in combating such crimes.

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The Swiss National Bank (SNB) has decided to extend its pilot program for issuing a wholesale central bank digital currency (CBDC) until at least 2026, according to a report by Bloomberg citing SNB governing board member Antoine Martin.

Initially set to conclude on June 30, the extended pilot aims to involve more financial institutions over time, Martin noted. He emphasized that the wholesale CBDC could potentially support a broader range of financial transactions. Currently, the pilot includes six commercial banks such as UBS Group AG and Commerzbank AG, collaborating with Swiss stock exchange provider SIX.

“The future success of the pilot project will largely hinge on the participation of new financial market participants, increased transaction volumes, and the expansion of financial market operations on this platform,” Martin remarked.

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Ilya Sutskever, co-founder and former chief scientist of OpenAI, along with former OpenAI engineer Daniel Levy and investor Daniel Gross, previously a partner at startup accelerator Y Combinator, have launched Safe Superintelligence, Inc. (SSI). The company, headquartered in Palo Alto and Tel Aviv, aims to advance artificial intelligence (AI) by prioritizing both safety and capabilities. In an online announcement on June 19, the founders emphasized their commitment:

“From the outset, our focus remains unwavering on AI safety and capabilities. This singular focus ensures we are not distracted by management overhead or product cycles, while our business model shields safety, security, and progress from short-term commercial pressures.”

Sutskever and Gross have long been advocates for AI safety.

Sutskever departed OpenAI on May 14, following his involvement in the dismissal of CEO Sam Altman. His role at the company became ambiguous after he stepped down from the board upon Altman’s return. Shortly after Sutskever’s departure, Daniel Levy, along with several other researchers, also left OpenAI.

Sutskever and Jan Leike co-led OpenAI’s Superalignment team, formed in July 2023 to explore methods for guiding and managing AI systems more intelligent than humans, known as artificial general intelligence (AGI). At its inception, OpenAI allocated 20% of its computing resources to support the Superalignment team.

In May, Leike also left OpenAI to head a team at Anthropic, an AI startup backed by Amazon. Following the departure of its key researchers, OpenAI disbanded the Superalignment team. Greg Brockman, the company’s president, defended its safety protocols in a detailed post on X.

Other prominent figures in the technology industry also share concerns

Former OpenAI researchers, along with numerous scientists, express deep concerns about the future trajectory of AI. Vitalik Buterin, co-founder of Ethereum, labeled AGI as “risky” amidst the recent staff changes at OpenAI. However, he also noted that “such models pose much lower risks of doom compared to corporate megalomania and military applications.”

Source: Ilya Sutskever

Tesla CEO Elon Musk, formerly a supporter of OpenAI, and Apple co-founder Steve Wozniak joined over 2,600 tech leaders and researchers in calling for a six-month pause in the training of AI systems. They emphasized the need for humanity to reflect on the “profound risks” posed by these technologies.

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On Wednesday, Injective announced a strategic partnership with DEGA, a leading game builder platform that operates on Ethereum, Cardano, and BNB Chain.

Injective, known for its platform that supports decentralized applications (dApps) across decentralized exchanges (DEXs), prediction markets, and lending protocols, plans to utilize DEGA’s ecosystem to propel its development into the Web3 gaming sector.

By partnering with DEGA, game developers will be able to efficiently design and launch games, marking a new era for GameFi, according to Injective.

The Web3 gaming market is experiencing rapid growth, with forecasts predicting an increase from $23.9 billion in 2023 to over $133 billion by 2033.

“DEGA and Injective share a common vision for ease of use, financial inclusion, and artificial intelligence,” said DEGA CEO Carlos Rene in a statement. “We anticipate that this integration will be advantageous for all participants within our ecosystems.”

Injective users to gain from airdrops and tournaments

Injective’s partnership with DEGA is set to drive significant growth, particularly in the gaming sector. This collaboration will bring Injective games to DEGA, alongside various community initiatives such as airdrops (including limited edition Elements & Characters), ambassador events, tournaments, and X spaces.

DEGA has reactivated its “Great Benediction” program to celebrate this integration, which will run from Wednesday, June 26, to July 3, 2024, according to a blog post.

This partnership follows Injective’s recent collaboration with Tria, a consumer-first actively validated services (AVS) layer-2 for abstracting gas and unifying liquidity from Web3. Tria’s launch on Injective enhances the user experience for dApps and users by providing complete gas abstraction and cross-chain liquidity unification, giving users greater control over payments and assets.

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Ethereum’s native token, Ether (ETH), has surged approximately 4.5% in the last 24 hours, reaching $3,550 on June 19. The catalyst behind this bullish movement is the U.S. Securities and Exchange Commission (SEC), which has announced the conclusion of its investigation into Ethereum.

SEC Ends Ethereum Probe, Boosting ETH Price
The recent uptick in Ether’s price is attributed to the SEC’s decision to close its investigation into Ethereum, removing uncertainty around ETH’s classification as a security.

According to ConsenSys, the SEC’s Enforcement Division notified them of the investigation’s closure, marking a significant victory for Ethereum’s developers, technology providers, and the broader industry.

Source: TradingView

SEC’s Move Follows ETF Approvals, Boosts ETH Sentiment

In a notable sequence, the SEC’s decision to conclude its investigation coincides with its recent approval of 19b-4 filings by major firms like VanEck, BlackRock, and Fidelity for spot Ether ETFs. These developments pave the way for these ETFs to start trading on exchanges from July 2, as projected by Bloomberg analyst Eric Balchunas. K33 Research forecasts substantial inflows of around $4 billion into these products within the initial five months post-launch, underscoring robust demand for ETH.

Ether Exchanges Holdings Hit 8-Year Low

Simultaneously, data from Glassnode reveals that the collective Ether balance across crypto exchanges fell to its lowest level since July 2016, totaling approximately 12.20 million ETH as of June 18.

Source: Glassnode

The surge in Ether outflows from crypto exchanges has aligned with the cryptocurrency’s price increase, indicating reduced selling pressure and a growing preference for holding ETH in private wallets or decentralized protocols.

For example, the official Ethereum staking address has steadily increased its holdings since its launch in December 2020, now holding over 46.418 million ETH as of June 19—nearly four times the amount held by exchanges.

Source: Glassnode

Despite Ethereum’s Shanghai upgrade in March 2023, which removed the need for ETH stakers to lock their tokens indefinitely, this growth trend continues unabated.

Despite now having the option to withdraw their staked ETH, the majority of users have chosen to keep their tokens staked. This preference highlights the perceived benefits of staking, such as stability and rewards, over selling, suggesting a bullish sentiment for Ether’s price in the upcoming weeks.

ETH price rebounds from a support confluence

ETH price gains today have followed a bounce from a significant technical support confluence near $3,500. This confluence includes its 50-day exponential moving average (50-day EMA), the 0.5 Fibonacci retracement level, and the lower trendline of its current ascending channel trend.

 Source: TradingView

Ether’s target for July seems to be the upper trendline of its ascending channel, converging with the 1.618 Fibonacci extension level around $4,853. This forecast derives from historical rebounds off the lower trendline that have led to comparable price movements.

Alternatively, a significant breach below the lower trendline of the ascending channel could potentially expose ETH to a decline towards its 200-day exponential moving average (EMA), situated near $3,040 by July.

The post ETH Price Spike: Factors Contributing to Today’s Surge appeared first on Baffic.

In its latest edition of the weekly newsletter “The Week On-Chain,” published on June 18, analytics firm Glassnode highlights that Bitcoin remains “largely profitable” despite several months of sideways price action for BTC. The newsletter aims to dispel myths surrounding investors’ unrealized losses.

BTC price analysis highlights “investor boredom and apathy”

Bitcoin (BTC) is currently trading at $65,314, maintaining stability within a defined range, and most hodlers are not experiencing a loss in their investment value.

Glassnode’s latest analysis characterizes the current BTC price action as “finding equilibrium,” citing various on-chain indicators that indicate Bitcoin is in a phase of consolidation rather than significant price decline.

“The current sideways movement of BTC is often associated with investor boredom and apathy, which seems to be the prevailing sentiment across Bitcoin markets,” Glassnode stated.

BTC prices are consolidating within a well-established trading range. The majority of investors are still in a positive position, with more than 87% of the circulating supply holding a cost basis lower than the current spot price.

Source: Glassnode

Researchers utilized the Market Value to Realized Value (MVRV) metric to illustrate that, on average, Bitcoin (BTC) has maintained a value more than twice its initial purchase price in U.S. dollar terms, showing a gain of 120%. The one-year average MVRV is currently at 86%.

“The MVRV Ratio continues to exceed its yearly baseline, indicating that the macro uptrend remains intact,” accompanying commentary noted.

Source: Glassnode

Bitcoin speculators remain steadfast, resisting capitulation despite market conditions.

The newsletter’s sentiment diverges from the heightened anxiety surrounding this week’s decline in BTC prices.

According to ongoing reports from Cointelegraph, traders are cautious as they observe potential breakdowns of support trendlines and the looming possibility of Bitcoin revisiting multi-month lows.

A critical metric currently under scrutiny is the aggregate purchase price of Bitcoin held by speculative investors, specifically the short-term holders (STHs).

Based on the latest data from Look Into Bitcoin, the STH cost basis is positioned at $64,000.

Source: Look Into Bitcoin

Even as unrealized gains diminish, short-term holders (STH) are not showing signs of gearing up for a mass sell-off at current price levels, as highlighted by Glassnode.

Currently, Glassnode reports that STH entities are transferring approximately +17.4k BTC/day to exchanges.

This figure marks a notable decrease from the peak of +55k BTC/day observed during March when the market surged to its all-time high (ATH) of $73,000. During that period, speculative activities were reaching heightened levels.

Source: Glassnode

The post Analysis: Bitcoin Price Uptrend Continues Strong, Hodlers in 120% Profit appeared first on Baffic.

A major Ethereum whale using the wallet address 0xf07 has sold off $35.4 million in Ethereum (ETH) over the past 48 hours. This significant transaction coincides with a notable decline in Ethereum’s price, dropping below the $3,500 threshold.

Prominent Ethereum whales are reducing their holdings

The crypto whale initially purchased 150,000 ETH during the Ethereum Initial Coin Offering (ICO) in 2015 at a price of $0.31 per token. Since then, Ethereum’s value has surged significantly, resulting in substantial returns on the initial investment.

Over the last two days, this investor deposited a total of 10,000 ETH, valued at $35.4 million, into the crypto exchange Kraken. The average transaction price was $3,543 per ETH. The latest transaction on Tuesday involved a deposit of 5,500 ETH to Kraken.

The recent actions by the Ethereum whale suggest a strategic move to capitalize on market conditions amid a downturn. On Tuesday, the crypto market experienced significant pressure, resulting in nearly $500 million in forced liquidations.

Ethereum bore the brunt of this downturn, with liquidations totaling $92.52 million. Bitcoin (BTC) and Dogecoin (DOGE) also faced substantial liquidations amounting to $73.26 million and $60.35 million, respectively.

Despite selling a substantial amount, the whale still retains a significant Ethereum holding. Specifically, 138,900 ETH is staked across eight different crypto wallets, valued at approximately $476 million. This indicates a continued confidence in Ethereum’s long-term potential despite reducing exposure.

Additionally, broader trends among Ethereum holders show a similar reduction pattern. Data from Glassnode reveals a notable decrease in the total supply of ETH that has remained dormant for five to seven years. This metric has declined by over 22%, dropping from 11.6 million ETH tokens in late February to the current 9.01 million ETH.

Source: Glassnode

As these significant holders begin cashing out, it could indicate a shift in sentiment among seasoned investors, possibly seeking to capitalize on long-term gains or reacting to broader economic factors affecting crypto markets.

Despite this trend, some analysts maintain a bullish outlook on Ethereum. They highlight that the supply of ETH on centralized exchanges is at its lowest in eight years.

“Ethereum supply on exchanges is at an 8-year low. Meanwhile, institutional demand will be unlocked through the ETH ETF in July. You don’t need to have a degree to understand what is about to happen,” noted crypto investor Quinten.

The post Ethereum Price Plunge Triggered by $35.4 Million Whale Sell-Off appeared first on Baffic.

On June 18, according to NFT data tracker CryptoSlam, the Bitcoin network advanced in the all-time nonfungible token (NFT) sales rankings, surpassing the Ronin blockchain. Bitcoin-based NFTs achieved a total sales volume of $4,271,928,280, exceeding Ronin’s record of $4,271,675,550. This positions Bitcoin among the top three blockchain networks for NFT sales, following Solana and Ethereum.

Source: CryptoSlam

In the past 30 days, Bitcoin-based NFTs achieved a sales volume of $148 million, securing the second position behind Ethereum, which recorded $157 million. Solana closely followed with approximately $77 million in sales.

However, despite these substantial sales figures, NFTs across the top three chains experienced a downturn, with each showing a decrease of at least 40% in sales volume over the past 30 days, as reported by CryptoSlam.

Bitcoin NFTs are still considered “rudimentary.”

Jeff Zirlin, co-founder of Sky Mavis, the team behind the Ronin network, expressed that increased adoption of NFTs is positive. Speaking to Cointelegraph, he mentioned that their focus has not been on Bitcoin NFTs, as they perceive them to be still rudimentary and unrelated to gaming. Zirlin emphasized that their competitiveness lies in blockchain gaming ecosystems.

“We haven’t been closely following Bitcoin NFTs because they are still at an early stage and not integrated with gaming. Generally, broader NFT adoption is beneficial, and our competitive edge lies in ecosystems dedicated to gaming,” Zirlin stated.

Regarding the gaming industry, Zirlin noted that it is evolving, with traditional strategies facing challenges due to rising user acquisition costs.

“Web3 provides an alternative approach, fostering longer-lasting games through incentive alignment with the core audience and revenue models based on ownership,” Zirlin elaborated.

Bitcoin NFTs have reached a milestone of $4 billion in total sales.

According to CryptoSlam data on June 4, Bitcoin-based NFTs achieved $4 billion in cumulative sales volume, comprising $3.97 billion from NFT sales and over $80 million from wash sales.

Despite reaching this milestone, the overall NFT market experienced decreased sales volumes. May saw a 54% decline in monthly NFT sales compared to April, with NFTs generating over $1 billion in April and the industry recording $624 million in May for digital collectibles.

The post Bitcoin NFTs have exceeded Ronin in total lifetime sales. appeared first on Baffic.

Venezuelan crypto activists claim that the government and President Maduro’s regime have been exploring various methods to circumvent US-imposed sanctions.

“In regimes facing sanctions, there’s typically a range of strategies used to evade them,” noted Andrew Fierman, head of national security intelligence at Chainalysis, in an interview with Bloomberg. “The Venezuelan government and Maduro’s regime have employed numerous tactics over the years.”

The United States recently reinstated sanctions on Venezuela, including bans on oil and gold trade, effective May 31. This decision was made due to the Venezuelan government’s perceived failure to uphold democratic principles ahead of upcoming elections in July.

According to a Wilson Center report released in April by Leopoldo López and Chainalysis’s Kristofer Doucette, the Venezuelan government has a history of leveraging cryptocurrencies to sidestep US sanctions. The authors urge key governments to rigorously enforce existing restrictions to prevent the Maduro regime from exploiting digital currencies.

Venezuela’s Crypto Records

“In 2018, President Maduro proclaimed the launch of Venezuela’s national oil-backed crypto token ‘Petro,’ stating, ‘Today, a cryptocurrency is being born that can take on Superman,’ as a solution to lift the country from economic turmoil.

However, on January 15, 2024, Venezuela halted Petro operations due to its failure to achieve widespread adoption.

Critics cite Venezuela as a prominent example of how digital currencies can facilitate illicit activities like money laundering and corruption,” noted the Wilson Center report.

“Now more than ever, democratic governments must take decisive action to thwart Maduro’s efforts to exploit cryptocurrencies for moving illicit funds through the international financial system.”

Similar initiatives involving cryptocurrencies to evade sanctions have been undertaken by other autocratic leaders, including those in Iran and Russia.

The post Crypto Evasion Allegations Against Venezuela’s President Maduro appeared first on Baffic.

Dubai, UAE, June 14th, 2024, Chainwire

MultiBank.io, the cryptocurrency division of the renowned TradFi broker MultiBank Group, is set to revolutionize the financial landscape with the launch of Real-World Assets (RWAs).

This innovative initiative simplifies the integration between cryptocurrency and traditional markets, eliminating the need for complex transactions. Soon, users will be able to effortlessly navigate between cryptocurrencies and traditional assets like stocks, indices, and commodities within the secure and user-friendly MultiBank.io platform.

Expand Your Investment Horizons:

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Why Choose MultiBank.io for RWAs?

MultiBank.io seamlessly integrates Real-World Assets (RWAs) for a unified investment experience, combining traditional investing, crypto, and up to 1000x leverage.

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24/7 Expert Support: A dedicated team of professionals is always available to guide you.

More Than an Exchange, MultiBank.io is Your Investment Ally

Imagine a world where crypto and traditional markets work together. MultiBank.io’s soon-to-be-announced RWAs are the key, unlocking a truly unified investment landscape!

Invest beyond crypto. Invest in your future. Sign up with MultiBank.io today and unlock a world of boundless investment possibilities!

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Bitwise’s Senior Crypto Research Analyst, Juan Leon, underscores the transformative potential at the intersection of artificial intelligence (AI) and the crypto industry in a recent report.

Leon suggests that the fusion of these two emerging sectors could have a significant impact on the global economy. This convergence has the potential to improve various industries and transform our interaction with technology and digital assets.

“AI-Crypto Synergy: The Future of Innovation”

Leon stresses that the integration of AI and crypto is expected to have a more substantial impact than currently envisaged. He forecasts that it could contribute a total of $20 trillion to the global GDP by 2030.

“PwC forecasts that AI and crypto could contribute $15.7 trillion and $1.8 trillion, respectively, to the global economy by 2030. While this totals $17.5 trillion, I anticipate their synergies to have a compounding effect, potentially driving the combined value to $20 trillion or even higher,” he explained.

Source: PwC

At the intersection of AI and crypto, Bitcoin mining stands out as a key area where infrastructure is increasingly valuable to AI companies. The current AI boom, driven by demand for data centers and powerful chips, has created a shortage of these resources.

Bitcoin miners, equipped with necessary hardware and cooling systems, are stepping in to fill this gap. For instance, CoreWeave’s bid to acquire Bitcoin miner Core Scientific coincided with Core Scientific’s announcement of a $3.5 billion deal to host CoreWeave’s AI-related services in its data centers over the next 12 years.

Felix Mohr, Managing Partner of MohrWolfe, sees potential in integrating AI into the Bitcoin mining industry. He suggests that AI adoption could create additional revenue streams or enhance existing ones, particularly through improved predictability and consolidation among miners.

Looking ahead, Leon explores longer-term opportunities at this intersection, such as information validation. While AI has introduced challenges like deep fakes and biased content, blockchain technology’s transparency and immutability could offer solutions to these issues.

“One example: A startup called Attestiv creates digital ‘fingerprints’ for videos based on their metadata. […] Theoretically, we could see similar ways of validating everything from original research to official government communications. It’s why many experts affirm that blockchains will play a pivotal role in putting checks and balances on AI,” he said.

Moreover, Leon envisions that integrating AI with crypto could revolutionize virtual assistants. By combining AI-driven tools with smart contracts and digital currencies, these assistants could efficiently perform more complex tasks, thereby enhancing productivity.

The post Bitwise Predicts AI-Crypto Synergy to Add $20 Trillion to Global GDP by 2030 appeared first on Baffic.

Check out this week’s newsletter for updates on McDonald’s launch of a new metaverse in Singapore and South Korea’s decision to classify non-fungible tokens (NFTs) as virtual assets. Additionally, learn about the charging of NFT scammers in the United States and how Bitcoin-based collectibles contributed to a surge in weekly NFT sales volumes.

McDonald’s Introduces Its Metaverse in Singapore

McDonald’s has launched the “My Happy Place” metaverse in Singapore, inviting users to indulge in virtual burger crafting and a range of engaging activities. Developed in partnership with Bandwagon Labs, this interactive virtual environment prioritizes creativity and daily incentives.

Employing Web3 technologies such as the crypto wallet MetaMask, the metaverse offers token-gated activities and digital collectibles. Clarence Chan, founder of Bandwagon Labs, emphasized the emphasis on tangible rewards and user engagement, aiming to overcome common limitations of metaverse experiences while boosting fan involvement.

South Korea categorizes mass-produced NFTs as virtual assets.

The Financial Services Commission (FSC) of South Korea has issued comprehensive guidelines regarding the classification of NFTs as virtual assets. According to these guidelines, if NFTs lack distinct characteristics from virtual assets and are mass-produced, divisible, and usable for payments, they will be classified as virtual assets.

The FSC emphasized that high-volume NFT collections could potentially function as a means of payment, with each case subject to individual evaluation. Moreover, the guidelines specify that NFTs may be deemed securities if they satisfy the criteria established in South Korea’s Capital Markets Act.

NY Attorney General Cracks Down on ‘Evolved Apes’ NFT Scam, Charges Three Suspects

Three individuals connected to the “Evolved Apes” NFT scam are facing charges in the U.S. for wire fraud and money laundering. Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan allegedly engaged in inflating NFT prices, making false promises of a video game, and disappearing with 800 Ether, worth about $2.7 million in 2021.

Despite assurances of a game launch, the project collapsed within weeks. Waleedh’s attempt to unlawfully withdraw funds added complexity to the case, with charges carrying a maximum 20-year sentence.

The post Nifty Newsletter Breakdown: McDonald’s Venture into Singapore’s Metaverse, South Korea’s NFT Regulations appeared first on Baffic.

Elon Musk has requested to withdraw his lawsuit against OpenAI and its CEO, Sam Altman. The lawsuit accused the AI firm of deviating from its original mission to develop AI for the benefit of humanity rather than profit.

Musk’s attorneys filed a motion to drop the breach of contract lawsuit without prejudice in the San Francisco Superior Court on June 11. This means the case isn’t dismissed permanently, allowing Musk to potentially file again in the future.

The decision to withdraw the lawsuit came one day before a federal judge was scheduled to decide whether to dismiss the case or proceed to the next stage, as per earlier court filings.

As of now, Musk has not provided a statement regarding his decision to drop the lawsuit.

Source: Superior Court of California

On February 29, 2024, Musk filed a lawsuit against OpenAI and Altman for breach of contract. He alleged that the creator of ChatGPT had strayed from its initial mission to develop large language models for the “benefit of humanity, not profit.”

His grievances centered around OpenAI’s collaborations with Microsoft to develop artificial general intelligence (AGI) technology and its release of ChatGPT-4 in a closed-source format.

Musk insisted that OpenAI return to its open-source ethos and sought an injunction to halt the for-profit utilization of AGI technology.

Additionally, Musk lodged complaints alleging violations of fiduciary duty and unfair business practices against OpenAI.

Related: Elon Musk clarifies stance on Nvidia AI chip deliveries

Elon Musk raises concerns over Apple’s collaboration with OpenAI, integrating ChatGPT into its devices. Musk argues it poses a privacy risk to users. However, Apple reassures that user IP addresses will be obscured, and OpenAI won’t store data requests, emphasizing their privacy commitment. Meanwhile, Musk’s involvement in launching the Grok AI chatbot aims to compete with ChatGPT. Grok’s parent company, xAI, recently secured a substantial $6 billion funding round from notable investors.

The post Elon Musk Ends Legal Battle with OpenAI CEO Sam Altman appeared first on Baffic.

Bitcoin ETFs are gaining traction, with reports showing approximately $105 million in positive flows on Monday alone. This boosts the total inflows to nearly $2.40 billion over the past three weeks

Demand for Bitcoin ETFs rebounds with $105 million in inflows recorded on Monday.

The strengthening market rebound for Bitcoin ETFs continues, with reports indicating $105 million in inflows on June 3. This marks 15 consecutive trading days of positive flows, bringing cumulative inflows to $2.40 billion, according to on-chain data platform SpotOnChain.

Fidelity’s Bitcoin ETF, FBTC, led the day with inflows of up to $77 million (over 1,110 BTC). Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT reported zero net flows on the same day. Bitwise ETF, BITB, recorded $14 million in inflows, while Ark21Shares’ ARKB ETF saw up to $10 million in positive flows.

Source: Bitcoin Archive

The surge in inflows aligns with a rise in global liquidity. Bitcoin analyst Willy Woo emphasizes that the correlation between BTC price and M2 expansion mirrors broader market sentiment and economic conditions.

A significant M2 expansion signals a loose monetary policy and a rise in money supply. Consequently, Bitcoin’s price typically increases as investors turn to alternative assets in pursuit of potential returns.

It’s noteworthy that Bitcoin’s price tends to respond favorably to expansions in the money supply and concerns about inflation. Investors view BTC as a hedge against traditional fiat currencies like the US dollar, which may depreciate due to inflation.

BTC Enters Accumulation Stage: Insights for Market Participants

Bitfinex analysts highlighted in their Monday market update that Bitcoin ETF inflows have averaged $136 million per day over the last two weeks, surpassing miner sell pressure by four times. They observed this as indicative of Bitcoin entering an accumulation period.

Additionally, the analysts suggested that the correction phase may be nearing its conclusion, attributing the recent drop from $73,777 to selling activity among long-term holders. Notably, the report indicated a resurgence in long-term holders re-accumulating BTC for the first time since December 2023.

Furthermore, investor confidence has strengthened since the April 20 Bitcoin halving, bolstering the bullish outlook. This sentiment is reflected in the surge of Bitcoin’s realized capitalization, nearing $600 billion.

Source: Glassnode

The BTC Realized Cap metric offers a distinct view of Bitcoin’s actual value, determined by the price at which coins were last transacted. It presents a unique lens through which to analyze market dynamics, investor actions, and historical patterns within the Bitcoin ecosystem.

Analyzing Bitcoin Dynamics Amid Shifting Investor Sentiment

Bitcoin has maintained a consolidation pattern along an upward trend line since May 1, marked by consecutive higher lows. Currently standing 22% above the range low of $56,552, BTC appears poised for further upward movement as it seeks to break free from consolidation.

Positive indicators include a buy signal triggered by the Relative Strength Index (RSI) crossing above the signal line (yellow band). Traders following this signal may anticipate a northward trajectory for Bitcoin’s price. Additionally, the Awesome Oscillator’s positioning in positive territory reflects bullish sentiment, lending support to the bullish outlook.

Conversely, the volume profile suggests a balance between bullish (orange nodes) and bearish (grey nodes) activity around current price levels. However, there is a notable presence of bearish activity, indicating potential resistance. To overcome this, bulls need to propel BTC above the $72,149 threshold to navigate through resistance levels effectively.

Source: TradingView

A breach of the $67,594 mark may prompt panic selling, potentially driving the price toward $65,000. Further downside could lead Bitcoin to retest the $61,169 support level, offering a potential buying opportunity for investors.

The post Bitcoin ETFs See $2.4 Billion Inflows in Just Three Weeks appeared first on Baffic.

Blockchain intelligence firm TRM Labs has reported a significant increase in cryptocurrency payments to Chinese precursor manufacturers, indicating a growing preference for digital assets within this industry. In 2023 alone, over $26 million in crypto was deposited into wallets associated with these entities, with approximately 60% of payments made in Bitcoin.

TRM Labs, which boasts backing from major financial institutions like JPMorgan Chase, Visa, Citi, and PayPal, observed a sixfold surge in crypto deposits from 2022 to 2023. Their recent research report disclosed that deposits into addresses linked to Chinese drug producers more than doubled in the first four months of 2024 compared to the same period in 2023. Notably, 11 manufacturers accounted for over 70% of all crypto-denominated sales of drug precursors.

The sources of crypto funds to Chinese precursor manufacturers vary, with most transactions originating from unhosted wallets, cryptocurrency exchanges, and payment services. These manufacturers commonly host their wallets on exchanges. Analysis of payment volume reveals that approximately 60% of crypto payments to Chinese precursor manufacturers occurred on the Bitcoin blockchain, followed by 30% on TRON and about 6% on Ethereum.

Despite the increasing trend in crypto payments, Chinese manufacturers also exhibit a willingness to accept fiat currencies through platforms like PayPal, MoneyGram, Western Union, and bank transfers.

Source: TRM Labs

According to TRM Labs’ findings, Chinese drug precursor exports primarily target countries including Canada, the Netherlands, Australia, Germany, and the U.S. However, there are also indications of advertisements targeting Russia and neighboring nations for mephedrone precursors.

The issue of illicit fentanyl precursors has drawn attention globally, with a U.S. congressional committee reporting China’s subsidization of their production, contributing to the opioid crisis in the United States. This support includes value-added tax rebates for companies manufacturing fentanyl analogs, precursors, and synthetic narcotics, provided they sell these products outside China.

Another blockchain intelligence firm, Elliptic, has highlighted the attractiveness of fentanyl to drug cartels due to its lower production cost compared to heroin and its significantly higher potency, making it the leading cause of death for Americans aged 18-45.

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Elon Musk has issued a stark warning to Apple, threatening to ban its devices from his companies if the tech giant integrates OpenAI’s ChatGPT into its iPhone, iPad, and Mac operating systems. Musk labeled such integration as an “unacceptable security violation” and even proposed extreme measures such as storing visitors’ Apple devices in Faraday cages at Tesla, SpaceX, and other enterprises under his helm.

Source: Elon Musk

The controversy stemmed from Apple’s unveiling of “Apple Intelligence” during its 2024 Worldwide Developers Conference. This suite of new generative artificial intelligence (AI) features, set to roll out to iOS 18, iPadOS 18, and macOS Sequoia, includes a function enabling Siri to utilize ChatGPT for answering user queries. However, Musk condemned Apple’s reliance on third-party AI, asserting that it compromises privacy and security. He criticized Apple’s claim of protecting user privacy while outsourcing AI capabilities they themselves cannot develop.

Source: Elon Musk

Despite Musk’s criticism, Apple emphasized privacy protections in its press statement, assuring users that their IP addresses would remain obscured, and OpenAI would not store requests. However, Musk’s concerns about the potential risks of third-party AI integration remain.

The announcement of Apple Intelligence failed to generate a positive response in AI-linked cryptocurrencies, with Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) experiencing declines according to CoinGecko.

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The recent conclusion of the US-Saudi petrodollar agreement has sparked speculation about Bitcoin’s future in the evolving financial landscape. This shift away from a long-standing economic norm could have significant implications for Bitcoin’s trajectory, particularly as nations explore alternative currencies and digital assets.

The termination of the petrodollar deal allows Saudi Arabia to diversify its trading options, potentially including various currencies like the Chinese RMB, Euros, Yen, and digital currencies such as Bitcoin. This diversification could accelerate the adoption of digital currencies globally and reduce reliance on traditional fiat currencies.

Bitcoin stands to benefit from this transition in several ways. Firstly, as traditional fiat currencies face potential devaluation due to increased US dollar printing to offset the loss of its global oil trade monopoly, Bitcoin’s fixed supply and decentralized nature make it an appealing hedge against inflation. Additionally, rising inflation may drive investors towards alternative assets like Bitcoin, potentially enhancing its value over the long term.

The shift away from the petrodollar agreement signals a broader move towards a more diversified and digital global economy, with Bitcoin positioned to play a crucial role in this transformation. This could usher in a bullish phase for Bitcoin as it becomes an increasingly integral component of global financial portfolios.

As of June 10, 2024, Bitcoin is trading at $71,000, showing slight fluctuations in price. Technical indicators suggest bullish momentum above the $69,100 mark, with resistance levels at $70,100, $71,100, and $71,900, and support levels at $68,400, $67,600, and $66,600.

Source: Trading View

In conclusion, the end of the US-Saudi petrodollar agreement presents new opportunities for Bitcoin’s growth and adoption, positioning it as a key player in the future of global finance.

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The Financial Services Commission (FSC) in South Korea has released new guidelines ahead of the implementation of the ‘Virtual Asset User Protection Act’ on July 19, outlining the criteria for classifying non-fungible tokens (NFTs) as virtual assets.

According to the guidelines, NFTs intended for content collection purposes will not be considered virtual assets. However, NFTs demonstrating characteristics similar to virtual assets will be subject to regulation. Businesses issuing such NFTs will need to report their activities to authorities as virtual asset businesses.

Key factors determining whether an NFT qualifies as a virtual asset include mass issuance, divisibility, and usage as a payment method. NFTs issued in large quantities or series, diminishing their uniqueness, will fall under this category. Additionally, divisible NFTs lose their uniqueness and qualify as virtual assets.

Furthermore, NFTs used as a means of payment for goods or services or exchanged between unspecified parties will be considered virtual assets. However, this does not apply to NFTs purchased with virtual assets on marketplaces.

Businesses dealing with NFTs are required to comply with the ‘Specific Financial Information Act,’ covering the sale, exchange, transfer, storage, and brokerage of virtual assets. Failure to report as a virtual asset business operator may result in criminal penalties.

To assist businesses in understanding these regulations, the FSC is offering consultation services and providing examples and case judgments. Jeon Yo-seop, head of the Financial Innovation Planning Division at the FSC, emphasized the Commission’s commitment to strict classification of NFTs to prevent misuse and ensure regulatory effectiveness.

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UK-based crypto infrastructure firm Ramp Network has chosen Ireland as its European base, joining a growing number of cryptocurrency firms establishing headquarters in the country.

Steven Eisenhauer, Ramp’s chief risk and compliance officer, explained in an interview with the Irish Independent that Ireland’s appeal lies in its potential as a premier choice for crypto firms awaiting a regulatory framework to govern the industry.

Eisenhauer emphasized the importance of building consumer trust, citing Ireland’s significance with approximately 12 registered virtual asset service providers.

He estimated that half of the crypto firms preparing for the EU’s Markets in Crypto-Assets Regulation (MICA) are considering Ireland, along with France, Germany, and Belgium.

Ramp Network, a British fintech startup facilitating crypto-to-fiat currency transactions globally, has obtained registration as a virtual asset services provider in Ireland. Eisenhauer clarified that Ramp’s decision to establish its EU headquarters in Ireland was not about evading regulatory oversight but seeking genuine regulators.

He praised the Central Bank of Ireland’s approach to crypto regulation, describing engagements with the bank as positive, collaborative, and amicable. Eisenhauer commended the bank’s efforts to strike a balance between supporting businesses and maintaining integrity and independence.

While some companies, like stablecoin issuer Circle, have opted to relocate their headquarters from Ireland to the US, such occurrences are rare due to Ireland’s favorable business environment and low tax rates, with a corporate tax rate of 12.5%.

Despite occasional shifts, Ireland continues to attract cryptocurrency companies, such as Coinbase, which selected Ireland as its base for EU operations under the upcoming MiCA regulations, drawn by its reputation for fintech friendliness and well-regarded regulatory environment.

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Crypto mining regulation has become a focal point at the St. Petersburg International Economic Forum (SPIEF), where government officials are also discussing the cross-border potential of Russia’s Central Bank Digital Currency (CBDC).

According to RBC, the forum included a session on June 6 dedicated to “crypto mining and the use of cryptocurrencies in international payments.”

Rapid Growth of Russia’s Crypto Mining Sector

Industry leaders noted the fast growth of Russia’s crypto mining sector, predominantly driven by Bitcoin (BTC) mining, with some miners also focusing on tokens like Litecoin (LTC).

SPIEF: Government and Industry Leaders Discuss Crypto Regulation

Key figures in attendance included Valery Seleznev, the first deputy chairman of the State Duma’s energy committee, and Ivan Chebeskov, the Russian Deputy Finance Minister. Also present was Anton Tkachev, a member of the State Duma Committee on Information Policy, IT, and Communications.

Prominent speakers from the crypto mining industry included Sergey Bezdelov, head of the Industrial Mining Association, and Igor Runets, founder and CEO of BitRiver. Other notable participants were Timofey Semenov, CEO of Moscow-based crypto hardware provider Intelion Data Systems, and Stanislav Georgievsky, Vice President of the Russian Export Center.

Potential Legalization and Regulation of Crypto Mining

The meeting suggests that crypto mining leaders are gaining influence in Moscow, making the legalization and regulation of Russia’s industrial crypto mining sector more likely. Earlier this week, a top finance ministry official mentioned the government’s willingness to recognize industrial miners officially as a “form of entrepreneurship.”

Discussions at the session covered regulatory issues and the potential for other uses of miners’ data centers. Industry leaders proposed offering their data centers for state-run projects and co-creating a platform for developing artificial intelligence solutions.

Investment Opportunities in Crypto Mining

Business leaders also discussed financial incentives and the “attractiveness of investments” in the mining sector. Although Russian firms remain hesitant to invest due to the lack of regulation, the potential for government action could change this. Russian banks, limited in investment options due to Western sanctions, might eventually support crypto miners.

Participants also discussed the “possible emergence” of “exchange-traded instruments” and their potential in the Russian market. The Industrial Mining Association estimates that industrial miners have a combined 1.5 GW of computing power, with the industry valued at over $225 million in 2023. Industrial data centers with a capacity of 10 MW or more represent “more than half of the market.”

Digital Ruble and Cross-Border Payments

The SPIEF event is a flagship summit for the Russian financial sector and government officials. In 2017, the Central Bank announced plans for a “national cryptocurrency based on blockchain technology,” which evolved into the digital ruble. The CBDC remains high on the agenda at SPIEF meetings this year.

According to Rambler Finance, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, stated that the first international settlements with the digital ruble could occur in the second half of 2025. He predicted that settlements with other countries in national digital currencies could become common practice by 2029, noting that CBDC operations would not be subject to sanctions or bans from third countries.

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