Today's news tips:
Durov was arrested in connection with a cybercrime investigation into the "Cryptology" service and will be detained until August 28
French President Macron: The arrest of Telegram founder is not politically motivated, but based on judicial investigation
SEC charges brothers with $60 million Ponzi scheme using cryptocurrency trading bots
Aave Labs Unveils Plan to Use Shares of BlackRock’s Tokenized Fund BUIDL to Stabilize GHO
Celsius bankruptcy administrator has paid more than $2.53 billion to approximately 251,000 creditors
Coinbase developer platform is building an API that allows AI to perform multiple functions, including creating MPC wallets
Centrifuge Partners with Morpho and Coinbase to Launch RWA Lending Marketplace for Institutions
PayPal’s stablecoin PYUSD market cap exceeds $1 billion
Regulatory News
Durov was arrested in connection with a cybercrime investigation into the "Cryptology" service and will be detained until August 28
According to The Block, according to a statement released by the Paris Judicial Court, Telegram CEO Pavel Durov has been arrested as part of a large-scale cybercrime investigation, facing charges including providing unauthorized "cryptography" services and tools. The statement said: "Pavel Durov, founder and CEO of the instant messaging platform Telegram, was arrested at Le Bourget Airport in the suburbs of Paris on Saturday, August 24, 2024, and was detained by the police at 8 pm. This move was implemented in the context of a judicial investigation that began on July 8, 2024, after a preliminary investigation was launched by the Anti-Cybercrime Unit of the Paris Prosecutor's Office. The charge of the judicial investigation is the provision of cryptography services and tools". Several other charges are listed in the document, including conspiracy to "possess pornographic images of minors" and "laundering illegal proceeds for criminal organizations". As part of the cybercrime investigation, Durov is being questioned and he may be detained until August 28. According to previous news, many important figures in the crypto industry have expressed their support for Durov, including Musk, Ethereum founder Vitalik Buterin, TRON founder Justin Sun and Solana co-founder Anatoly Yakovenko.
Indian government launches investigation into Telegram, alleging abuse of app for extortion, gambling and other criminal activities
According to Moneycontrol, the Indian government is investigating the potential abuse of Telegram in criminal activities, especially extortion and gambling. If the investigation results are unfavorable, the app may face the risk of being banned. The news came at the time when Telegram founder and CEO Pavel Durov was arrested in Paris on August 24 for content review issues. It is reported that India's investigation is led by the Ministry of Internal Affairs and the Ministry of Electronics and Information Technology, focusing on criminal activities in Telegram's peer-to-peer communication function.
French President Macron: The arrest of Telegram founder is not politically motivated, but based on judicial investigation
French President Emmanuel Macron responded to reports on the arrest of Telegram founder Pavel Durov on social media, clarifying that the arrest was not politically motivated but based on an ongoing judicial investigation. Macron stressed that France attaches great importance to freedom of speech and communication, as well as innovation and entrepreneurship, and will continue to uphold these freedoms within the legal framework. Ultimately, it is up to the independent judicial system to decide how to enforce the law. At the same time, according to Jinshi, a police spokesman pointed out that Durov was accused of failing to cooperate in the investigation of cyber and financial crimes on his platform. The Kremlin said: I hope Durov can organize an effective legal defense.
Russia to start trials of crypto payments and exchanges
According to foreign media reports, Russia is about to start trials of cryptocurrency exchanges and use digital tokens in cross-border transactions to help ease payment difficulties for Russian companies hit by international sanctions. Two people familiar with the matter said the trials will begin on September 1. They said that when testing payment and trading platforms, Russia will use the national payment card system to exchange between rubles and cryptocurrencies. In July, the Russian parliament passed bills legalizing cryptocurrency mining and a framework allowing the testing of digital tokens for cross-border payments under the supervision of the central bank. Russian President Vladimir Putin signed the bills into law on August 8. At a time when cryptocurrency trials are underway, Russian companies are facing increasing obstacles in paying overseas suppliers and getting paid for exported goods.
Nigerian judge moves Binance money laundering case trial forward to September 2
According to Finance Magnates, a Nigerian judge will hear a money laundering case involving the crypto exchange Binance and two of its executives next week. The hearing was held ahead of schedule at the request of the defense. Prosecutors said the hearing, which was originally scheduled for October 11, is now scheduled for September 2. Binance is accused of laundering more than $35 million, and the charges also involve two of its executives: Tigran Gambaryan, a US citizen and Binance's head of financial crime compliance, and Nadeem Anjarwalla, Binance's African regional manager and British-Kenyan African regional manager. Both Binance and Gambaryan have denied the allegations. However, Anjarwalla fled Nigeria before the trial and was not detained. Gambaryan, on the other hand, has been detained in Nigeria since February, and according to his wife Yuki Gambaryan, his health has deteriorated during detention.
Abra settles with SEC over unregistered sale of crypto securities
According to The Block, the U.S. Securities and Exchange Commission (SEC) has reached a settlement with Plutus Lending LLC, which does business under the name of Abra. The SEC said, "Without admitting or denying the SEC's allegations, Abra has agreed to an injunction prohibiting it from violating the registration provisions of the Securities Act and the Investment Company Act and requiring it to pay a civil penalty in an amount determined by the court." The SEC accused Abra of failing to register the offer and sale of its retail crypto asset lending product Abra Earn and operating as an unregistered investment company. According to the SEC's lawsuit, Abra used customers' digital assets to "generate income for itself and fund interest payments." Abra Earn has created nearly $600 million in crypto assets for Abra, of which $500 million came from U.S. customers. According to previous news, in June 2023, the Texas Securities Commission also filed an enforcement action against Abra and its CEO for suspected securities fraud at Abra Earn.
SEC charges brothers with $60 million Ponzi scheme using cryptocurrency trading bots
According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has accused two brothers of operating a $60 million cryptocurrency Ponzi scheme that used a cryptocurrency trading robot that never existed as a gimmick. In an indictment filed on August 26 with the U.S. District Court for the Northern District of Georgia (located in Atlanta), the SEC claimed that Jonathan Adam and his brother Tanner Adam claimed to operate a cryptocurrency robot that could bring investors a monthly net return of 13.5%, thereby defrauding more than 80 people.
U.S. government agencies allege that from January 2023 to June 2024, the brothers told investors that their robot was able to identify arbitrage trading opportunities on cryptocurrency platforms and could buy and sell assets simultaneously to take advantage of small differences between different market prices. They promised investors that the funds would go into a lending pool to fund flash loans and complete transactions, and that the assets would be borrowed and returned in the same blockchain transaction. The trading plan was completely fraudulent, and the robot did not exist. The brothers squandered $53.9 million of the $61.5 million they raised. Investors did receive some returns, but most of the money was used for a lavish lifestyle, including buying cars, trucks and building a $30 million apartment.
To stop the scheme, the SEC has imposed an emergency asset freeze order on Jonathan Adam and Tanner Adam’s companies, GCZ Global, LLC and Triten Financial Group LLC. The government agency also alleges that Jonathan Adam misrepresented his background in order to gain the trust of investors and failed to disclose that he had three prior convictions for securities fraud. The SEC has charged the brothers with violating the antifraud provisions of the federal securities laws. The SEC is seeking a permanent injunction against the companies, forfeiture of all funds raised from investors, and civil penalties.
Project News
Aave Labs Unveils Plan to Use Shares of BlackRock’s Tokenized Fund BUIDL to Stabilize GHO
According to Cryptoslate, Aave Labs proposed to update its GHO Stable Module (GSM), which involves using shares of BlackRock's tokenized fund BUIDL to help maintain its stablecoin GHO pegged to the US dollar. According to the proposal, the new GSM will allow Aave to exchange BUIDL shares with USD Coin (USDC) provided by users to mint its ecosystem's native dollar-backed stablecoin GHO. These tokens will be kept in smart contracts until users redeem their GHO for USDC. The value of BUIDL shares is stabilized at $1 per token, and daily returns are paid to investors every month. The fund allocates its assets into cash, U.S. Treasuries, and repurchase agreements.
According to RWA.xyz, BUIDL has over $502 million in assets under management (AUM). The proposal states that the new GSM will expand Aave DAO's revenue stream into the real-world asset (RWA) space and increase partnership opportunities with BlackRock. According to the proposal, swap fees will accrue in GHO and interest will be paid monthly in BUIDL. Additionally, the GSM may or may not integrate a USDC buffer to compensate for gas redemption costs for BUIDL for small swaps, which will be further evaluated later. The proposal is currently still in the "interim review" stage.
Fractal Bitcoin, the Bitcoin extension network, plans to launch its mainnet on September 9
Fractal Bitcoin, a Bitcoin expansion network, tweeted that it plans to officially launch the mainnet on September 9. 80% of all tokens will be allocated to the community, and 20% of the tokens with a lock-up period will be allocated to the team and contributors. The brc-20 on Fractal will be activated at the Fractal mainnet block height of 21,000. PizzaSwap (formerly known as Fractal Swap) on Fractal will be launched on the testnet this week. Once PizzaSwap goes live, officials will begin testing the embedded mini-asset cross-chain bridge, allowing users to transfer Bitcoin and other assets between the Bitcoin and Fractal networks. Bool Bridge, powered by Bool Network, will also run on the testnet before the Fractal mainnet goes live.
Binance Finance, one-click coin purchase, flash exchange, leverage listing of Dogs (DOGS)
The new Dogs (DOGS) asset has been launched on Binance, and users can trade it through Binance Finance, One-Click Coin Buying, and Flash Exchange. Binance’s Principal Guarantee Coin Earning Platform already supports DOGS Principal Guarantee Coin Earning Current Product, and users can purchase DOGS through the Fixed Investment Platform starting from 18:00 on August 27. In addition, Binance’s Margin Platform will add DOGS/USDT and DOGS/FDUSD full-position and single-position leveraged trading pairs at 22:00 on August 26. Users can also purchase DOGS using a variety of payment methods through the “One-Click Coin Buying” page, and exchange it for other supported tokens on the Flash Exchange Platform without handling fees.
US listed company Semler Scientific buys 83 Bitcoins for $5 million
According to PRNewswire, Semler Scientific, a US medical technology listed company, announced that it purchased an additional 83 bitcoins for $5 million in cash. As of August 26, 2024, the company held a total of 1,012 bitcoins with a total investment of $68 million. Eric Semler, chairman of Semler Scientific, said that the company used operating cash and stock market financing to purchase bitcoins, and was encouraged by the growing acceptance of bitcoin by institutional investors, believing that this trend would increase bitcoin prices and shareholder value. Semler Scientific has made bitcoin its main financial reserve asset.
WazirX has launched the first phase of INR withdrawals and reduced the withdrawal fee by 60%
According to official news from WazirX, the Indian cryptocurrency exchange WazirX has launched the first phase of INR withdrawals. Eligible users can now withdraw half of the 66% limit of their INR balance. At the same time, to facilitate user operations, WazirX has reduced the withdrawal fee from 25 Indian rupees to 10 Indian rupees, a reduction of 60%.
Celsius bankruptcy administrator has paid more than $2.53 billion to approximately 251,000 creditors
According to CoinDesk, Celsius bankruptcy administrators said in their first repayment status report that more than $2.53 billion has been distributed to approximately 251,000 creditors. The payment was made in liquid cryptocurrencies and cash based on the price on January 16. The bankruptcy administrator said in a court filing on Monday that these payments cover approximately two-thirds of the cryptocurrency lending company's eligible creditors (by number) and approximately 93% of the eligible value. Another 121,000 eligible creditors, with an average distribution of approximately $1,500, have not yet successfully received the distribution. “Approximately 64,000 of these remaining creditors received a distribution of less than $100 and approximately 41,000 received a distribution between $100 and $1,000, and given the small size of the distributions received by many of these creditors, they may not have sufficient incentive to take the steps necessary to successfully receive their distributions,” the filing states. The plan involves distributing liquid cryptocurrency, cash and common stock in MiningCo (the new company from which Celsius evolved) to approximately 375,000 creditors from 165 different countries. The filing states that the complexity of the distribution process was increased because “Celsius was not a fully compliant business prior to bankruptcy and many regulators are pursuing enforcement actions against the debtor.”
Vitalik: Ethereum L1's stability is increasing, and many L2 teams are willing to work together to improve interoperability
Ethereum co-founder Vitalik Buterin said on the X platform: "I have communicated with many Layer2 solution teams, and everyone is very willing to work together to improve the overall interoperability of the Ethereum ecosystem. I would like to add that the stability and reliability of Ethereum Layer1 is constantly increasing. In the past year, we have witnessed that the panic of censorship and centralization has not come true - in fact, the opposite is true. "PoW is the gold standard for assets" is being proven wrong, and this is becoming more and more obvious as time goes by. The proportion of blocks with censored transactions is also continuing to decline, and all this happened before solutions such as FOCIL were launched. For a long time, my biggest concern about the roadmap was the block construction part (I called it a "disaster"), but now it seems that there is light at the end of the tunnel, and the debate is mainly centered on FOCIL+APS and BRAID. For decentralized finance (DeFi), the first and most important thing is to ensure that users will not suffer an annualized rate of return (APR) of -100%. The robustness of Layer1 (including anti-censorship) and the growing success of smart contract wallets are positive signs of this. "
Zuckerberg said the Biden administration had "pressured" Meta to delete content related to the epidemic and announced that it would stop donating to local governments to manage elections
According to Jiemian News, Meta CEO Mark Zuckerberg said on August 26 that Facebook was "pressured" by the US government in 2021 to censor content related to the epidemic during the COVID-19 pandemic, and he regretted the company's decision to accept these requests. In a letter to the U.S. House Judiciary Committee, Zuckerberg wrote: "In 2021, senior officials of the Biden administration, including the White House, have been pressuring our team for months to review certain content related to the new coronavirus, including humor and satire. While it is Meta's decision whether to delete content, government pressure is wrong, and I regret that we have not been more outspoken."
The United States is about to hold a presidential election. In order to avoid being accused of political bias, Zuckerberg also said that he has decided to stop donating to help local governments manage elections. Regarding donations made to support election infrastructure during the last presidential election, Zuckerberg wrote in the letter, "The purpose of this is to ensure that local election jurisdictions across the country have the resources they need to help people vote safely during the COVID-19 pandemic. Although the analysis I have seen shows that this is not the case (donations benefit one party), I know that some people think that this work is beneficial to one party and detrimental to the other. My goal is to remain neutral and not play a role in one way or another, or even appear to play a role. So I do not plan to make similar donations in this election cycle."
Several French government websites were taken offline in the early hours of the morning due to DDoS attacks, which may be related to the arrest of Telegram's founder
According to Cointelegraph's early morning report, several French government websites were taken offline due to a DDoS attack, which is believed to be related to a Russian hacker group. The affected websites include the Paris Administrative Court, the French Ministry of Health's ansm.sante.fr website, and the Supreme Court page. As of the time of writing, the media cannot access these websites and has received a warning that the connection to these websites is not secure. Entropia Intel's initial report stated that the attack is believed to be a response to the arrest of Telegram founder Pavel Durov in France on August 24. Earlier today, it was reported that Durov's arrest was related to a cybercrime investigation against the "cryptography" service, and he may be detained until August 28.
Coinbase developer platform is building an API that allows AI to perform multiple functions, including creating MPC wallets
Coinbase senior software engineer yuga.eth said on the X platform that the Coinbase developer platform is building an API that allows AI agents to have cryptocurrency-related functions including: bringing US dollars onto the chain, creating MPC wallets, sending USDC for free, achieving instant settlement on Base, and interacting with smart contracts (message signing).
Centrifuge Partners with Morpho and Coinbase to Launch RWA Lending Marketplace for Institutions
According to CoinDesk, blockchain technology company Centrifuge has partnered with Morpho and Coinbase to launch a real asset (RWA) lending market for institutions. The market relies on Coinbase's second-layer network Base and Morpho Vaults system, using three tokenized U.S. bonds as collateral, including Centrifuge's Anemoy Fund, Midas's short-term U.S. bonds (mTBILL) and Hashnote's U.S. yield coins (USYC). This is the first time that Ethereum-driven Coinbase verification has been used in the lending market, aiming to provide instant liquidity without redeeming U.S. bonds.
Financing News
Ethereum research firm Chainbound completes $4.6 million seed round led by Cyber Fund
According to The Block, Ethereum research company Chainbound has completed a $4.6 million seed round of financing, led by Cyber Fund, with participation from Maven 11, Robot Ventures and Bankless Ventures. Angel investors include Flashbot's Hasu, Titan Builder co-founder Kubi Mensah and Ethereum Foundation researcher Mike Neuder. Chainbound is developing a protocol called Bolt, which will enable "pre-confirmation" of Ethereum transactions, shortening the transaction confirmation time to less than one second, significantly improving the current average confirmation speed of seven seconds. Bolt is expected to be launched first on the Helder test network and is scheduled to be launched on the Ethereum main network before the end of the year.
Mining News
Bitcoin mining company Rhodium files for bankruptcy in Texas court
According to Cointelegraph, Bitcoin mining company Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas, with liabilities of up to $100 million. The document, filed on August 24, includes six subsidiaries - Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW. According to the document, the company's debts range from $50 million to $100 million, while its total assets are estimated to be between $100 million and $500 million. It has been reported that Rhodium's companies have been in financial trouble, and Rhodium's bankruptcy is one of them. Rhodium Enterprises, which owns Rhodium Encore and Rhodium 2.0, reportedly failed to repay a $54 million loan owed to lenders in July. In 2021, Rhodium raised $78 million in loans for its subsidiaries. The company reportedly proposed two debt restructuring plans before the deadline, but disagreements between shareholders led to a default. Under voluntary Chapter 11 bankruptcy, the company will be able to restructure its debt while continuing to operate, allowing it to negotiate a repayment plan under revised terms.
Important data
PayPal’s stablecoin PYUSD market cap exceeds $1 billion
DeFillama data shows that the market value of PayPal's stablecoin PYUSD has exceeded $1 billion, currently about $1.013 billion. Among them, PYUSD on Solana accounts for 63.96%, and PYUSD on Ethereum accounts for 36.04%.
Investment advisors increased their holdings of spot Bitcoin ETFs by $1.1 billion in Q2
According to Bitcoin Magazine, investment advisors bought a net $1.1 billion in spot Bitcoin ETFs in the second quarter of this year, consolidating their position as significant holders. Despite the decline in Bitcoin prices in the second quarter, the absolute value of Bitcoin ETFs owned by investment advisors increased to $4.3 billion at the end of the second quarter, indicating the increasing acceptance and adoption of Bitcoin ETFs.
FTX cold wallet transfers 240,200 mSOL to Coinbase Prime, equivalent to approximately $46.3 million
According to Paidun’s monitoring, the FTX cold wallet address marked as Cold Storag#2has transferred 240,200 mSOL (worth approximately US$46.3 million) to Coinbase Prime.
The total net outflow of the US Ethereum spot ETF yesterday was US$13.228 million, continuing the net outflow for 8 consecutive days
The U.S. Bitcoin spot ETF had a total net inflow of US$203 million yesterday, continuing its net inflow for 8 consecutive days
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