Paxos, a blockchain infrastructure firm, has confirmed that it made a mistake in paying over $500,000 in transfer fees to a Bitcoin miner. On September 10, Paxos paid the unusually high fee to move $2,000, when the average network fee is around $2. The company later realized its mistake and claimed that the transfer came from its own servers. After Paxos publicly acknowledged the error, the Bitcoin miner who received the funds agreed to return the amount to Paxos. The funds were successfully returned on September 15.
In other news, a bankruptcy court has approved the sale of FTX digital assets in weekly batches through an investment adviser. However, the sale does not include Bitcoin, Ether, and certain insider-affiliated tokens, which can be sold separately by FTX after 10 days’ notice. FTX, a bankrupt exchange, holds $833 million worth of Bitcoin and Ether, along with $3.4 billion in Digital Assets A, which includes Solana, Bitcoin, Ether, Aptos, and others. The sales are not expected to have a significant impact on the market.
Gemini Earn users could potentially recover all their funds through a new agreement plan proposed by Digital Currency Group (DCG). DCG estimates that unsecured creditors will receive a 70-90% recovery, with a significant portion of the recovery in digital currencies. The plan also suggests that Gemini Earn users could receive approximately 95-110% recovery without any contribution from Gemini. However, if Gemini were to provide $100 million to Gemini Earn users, they would likely receive more than full recovery. The proposed agreement plan aims to provide a fair and reasonable resolution for all parties involved.
Asset manager Franklin Templeton has filed an application with the United States Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). The fund would be structured as a trust, with Coinbase serving as the custodian for Bitcoin and The Bank of New York Mellon acting as the cash custodian and administrator. Franklin Templeton, with $1.5 trillion in assets under management, joins a long list of asset managers waiting for regulatory approval. The SEC recently delayed decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco.
In the world of cryptocurrency exchanges, Binance.US has witnessed the departure of several top executives, including the CEO, legal head, and chief risk officer. The mass exodus from Binance.US is believed to be connected to the ongoing investigation by the United States Securities and Exchange Commission (SEC) into Binance and Binance.US. The SEC has sued both entities for allegedly engaging in unregistered securities operations and other improprieties. Concerns about a criminal probe by the U.S. Department of Justice have arisen after the agency requested to file sealed documents in the case.
Bitcoin is currently priced at $26,465, while Ether stands at $1,628 and XRP at $0.50. The total market cap is valued at $1.05 trillion. Among the top 100 cryptocurrencies, the biggest gainers of the week include Toncoin (TON) at 21.30%, VeChain (VET) at 11.94%, and Bitcoin Cash (BCH) at 11.36%. On the other hand, the top three altcoin losers of the week are ApeCoin (APE) at -16.82%, Astar (ASTR) at -14.47%, and Flare (FLR) at -12.61%.
In the world of predictions, BitQuant, a popular social media commentator, has predicted that Bitcoin’s price will reach $250,000 after its next block subsidy halving. The pseudonymous commentator also expects Bitcoin to reach a pre-halving target above $69,000. The halving event, which occurs every four years, cuts miner rewards earned per block by 50%. The commentator believes that Bitcoin will peak after the halving in 2024, with a target price of around $250,000.
In regulatory news, Stoner Cats 2 LLC, the company behind the Stoner Cats animated web series, has agreed to a cease-and-desist order and other measures imposed by the U.S. Securities and Exchange Commission (SEC). The SEC charged the company with conducting an unregistered offering of crypto-asset securities in the form of nonfungible tokens (NFTs). SC2 sold more than 10,000 NFTs for about $800 each, with the proceeds being used to fund the series. As part of the settlement, SC2 will pay a civil penalty of $1 million.
OneCoin co-founder Karl Greenwood has been sentenced to 20 years in prison and ordered to pay $300 million in restitution. Greenwood, along with co-founder Ruja Ignatova, was involved in one of the largest fraud schemes ever perpetrated. OneCoin, a multilevel marketing and Ponzi scheme, defrauded 3.5 million victims and amassed $4 billion. Ignatova remains at large and is on the U.S. FBI’s Ten Most Wanted List.
The recent attack on the CoinEx crypto exchange, which resulted in the theft of at least $55 million, has been attributed to the North Korean hacker group Lazarus. Blockchain security firm SlowMist and on-chain investigator ZachXBT identified the hacker group after it accidentally exposed its address, which was the same one used in previous hacks. CoinEx experienced large outflows of funds to an unknown address, leading security experts to suspect a breach. The estimated loss is around $27 million.
In conclusion, this week saw Paxos confirming its mistake in paying over $500,000 in transfer fees to a Bitcoin miner, while FTX digital assets were approved for sale by a bankruptcy court. Gemini Earn users could potentially recover all their funds through a new agreement plan, and Franklin Templeton filed for a spot Bitcoin ETF. Binance.US witnessed the departure of key executives amid SEC action, and various cryptocurrencies experienced gains and losses. Additionally, the SEC charged Stoner Cats 2 LLC with conducting an unregistered securities sale, while OneCoin co-founder Karl Greenwood was sentenced to 20 years in jail. The CoinEx hack was attributed to the Lazarus Group, and predictions indicate a bright future for Bitcoin’s price.
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