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The Last Fortnight in Crypto - September (Part 2)

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Elliott Lyons
Elliott Lyons

LATEST NEWS

Franklin Templeton Joins the Race for the Crypto Grail: A Spot Bitcoin ETF

Franklin Templeton, a major asset management firm, has filed an application with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF, joining BlackRock and Fidelity in the race for the crypto "holy grail."

The ETF would track the price of Bitcoin using the CF Benchmarks Index, which combines data from multiple exchanges. Franklin Templeton would list the ETF on the Cboe BZX Exchange and use Coinbase as its Bitcoin custodian.

The SEC has denied applications for spot Bitcoin ETFs in the past, citing concerns about market manipulation. However, a recent court ruling found that the SEC had wrongly denied a bid by crypto firm Grayscale to launch a spot Bitcoin ETF.

Approval of a spot Bitcoin ETF would be a major victory for the crypto industry, as it would attract new institutional investors and make it easier for investors to gain exposure to Bitcoin.

Ethereum Co-founder Vitalik Buterin's X Account Hacked by SIM-Swap Attack


Ethereum co-founder Vitalik Buterin's X account was hacked on September 9, 2023, by scammers who used a SIM-swap attack to gain control of his T-Mobile phone number. The scammers then used the phone number to reset Buterin's X account password and post a fake NFT giveaway scam, which resulted in victims collectively losing over $691,000.

Buterin has since regained control of his T-Mobile account and confirmed that the hack was caused by a SIM-swap attack. He has also warned other X users to remove their phone numbers from their accounts and enable 2FA.

SIM-swap attacks are a type of fraud in which hackers gain control of a victim's mobile phone number by tricking their mobile carrier into issuing a new SIM card for the number. Once the hacker has control of the SIM card, they can use it to intercept two-factor authentication (2FA) codes and gain access to the victim's online accounts.

This is not the first time that T-Mobile has been involved in a SIM-swap attack. In 2020, the company was sued for allegedly enabling the theft of $8.7 million worth of crypto in a series of SIM-swap attacks. T-Mobile was also sued again in February 2021 when a customer lost $450,000 in Bitcoin in another SIM-swap attack.

SIM-swap attacks are a growing threat, and it is important to take steps to protect yourself from them. One way to do this is to remove your phone number from your online accounts, if possible. You should also enable 2FA on all of your online accounts, but use an authenticator app instead of SMS-based 2FA.

Judge Allows Bankrupt FTX to Sell Its Crypto Holdings to Pay Back Creditors

A judge in the U.S. Bankruptcy Court for the District of Delaware has ruled that bankrupt crypto exchange FTX can sell and invest its crypto holdings to pay back creditors. This allows FTX to sell, stake, and hedge its crypto holdings, which are worth over $3.4 billion.

FTX had submitted a filing requesting permission to engage in these activities in August, arguing that it would allow the company to limit downside risk and generate low-risk returns on its idle digital assets.

The judge asked questions about whether FTX officials could tell who deposited the assets, but the exchange's lawyers said that the assets are in one pool and are not traceable to individual customers.

FTX also revealed earlier this week that it holds $1.16 billion in solana (SOL) – approximately 16% of the token's outstanding supply – and about $560 million in bitcoin (BTC). The rest of its holdings consist of lesser-known illiquid tokens.

This ruling is a positive development for FTX creditors, as it means that they are closer to receiving a payout. However, it is important to note that the sale of FTX's crypto holdings could have a negative impact on the market, as it would increase the supply of these assets.

 SEC Charges Stoner Cats NFT Show with Unregistered Offering of Securities

The Securities and Exchange Commission (SEC) has charged Stoner Cats 2 LLC with conducting an unregistered offering of non-fungible tokens (NFTs) that raised $8 million from investors. The SEC alleges that Stoner Cats marketed the NFTs as an investment opportunity, promising that investors could profit from selling them on the secondary market. Stoner Cats has agreed to pay a $1 million penalty and destroy all NFTs in its possession.

The SEC's action against Stoner Cats is the latest in a series of crackdowns on the NFT market. The agency has previously charged other NFT projects with unregistered securities offerings, and it has warned investors that many NFTs may be securities.

The SEC's actions have been met with mixed reactions. Some critics argue that the agency is overstepping its authority and stifling innovation in the NFT market. Others argue that the SEC is necessary to protect investors from fraudulent NFT projects.

It is important to note that the SEC's actions do not necessarily mean that all NFTs are securities. However, investors should be aware of the risks involved in investing in NFTs, and they should carefully consider the facts and circumstances of any particular NFT offering before investing.

Friend.tech: A Disruptive Social Media Platform That Gives Content Creators a Fairer Share of the Value They Create

friend.tech is a social media platform built on Base, an Ethereum Layer 2 blockchain incubated by Coinbase. It allows users to purchase keys to access private chats with social media personalities. When a key of a user’s account is purchased or sold, the account owner earns a 50% commission.

friend.tech solves several problems with the current social media landscape:

Content creators are unable to adequately monetize their social network. friend.tech allows content creators to earn a much higher cut on the value they create.

Content consumers are mostly unable to interact closely with large content creators. friend.tech makes it easier for content consumers to interact with large creators directly by incentivizing creators to engage with their key holders.

friend.tech is still in its early stages, but it has already achieved significant traction. Over 149k users have purchased a friend.tech key, and approximately 70% of large crypto X influencers with a follower count above 50k have joined friend.tech as account owners.

friend.tech is the first social media platform to successfully monetize gated content. It is also one of the few social media platforms that is built on a blockchain, which gives it a number of advantages over traditional web2 social media platforms.

Overall, friend.tech is a disruptive social media platform that has the potential to revolutionize the way content creators and consumers interact.


SEC Demands Urgent Inspection of Binance US Assets, Slams Company for Lack of Cooperation

The US Securities and Exchange Commission (SEC) has accused Binance US of failing to cooperate with its investigation into the crypto exchange. The SEC has asked Binance US to provide internal documents that would reveal how the company operates, specifically who has control over customer assets.

Binance US at first agreed to cooperate but then refused, saying that the regulator was making "unreasonable demands." The SEC has now accused Binance US of "stonewalling on entire categories of information" and has demanded an urgent inspection of the company's assets.

The SEC is also concerned about the recent departure of top executives from Binance US. The agency believes that these departures could make it more difficult to obtain the information it needs.

Telegram Launches Self-Custodial Crypto Wallet, TON Space, to Global Users (Except US)

Telegram, the popular chat app with 800 million monthly active users, has launched a self-custodial crypto wallet called TON Space. The wallet is built on The Open Network (TON) blockchain and is currently available to Telegram users in most jurisdictions, excluding the United States.

TON Space is the brainchild of The Open Platform (TOP), a company that includes a wallet development team and a venture-building division. The wallet is integrated with Telegram's existing custodial wallet, which has amassed three million registered users so far.

Telegram's decision to launch a self-custodial wallet is seen as a way to solidify its presence in the crypto community and to introduce a substantial number of users to digital assets. The company is also giving priority access for TON projects and partners to its global advertising platform in order to help popularize decentralized apps.

The launch of TON Space comes at a time when the crypto community is undergoing a reckoning, realizing the need for self-custodial wallets over centralized ones. The FTX implosion has further highlighted the importance of users having control over their own digital assets.

Overall, the launch of TON Space is a positive development for the crypto community and for Telegram. It provides users with a convenient and secure way to store and manage their digital assets, and it helps to further integrate Telegram into the crypto ecosystem.

Yuga Labs Announce CryptoPunks Docuseries, Premiering October 10

Yuga Labs, the company behind Bored Ape Yacht Club and CryptoPunks, is producing a docuseries about the history and impact of CryptoPunks. The docuseries will feature interviews with CryptoPunks owners and creators, as well as other experts in the web3, crypto, and digital art space.

The first episode of the docuseries will premiere on October 10th. The series is expected to offer a deeper understanding of the motivations, passion, and culture that have fueled the rise of NFTs.

This docuseries is a significant event for the web3 community, as it represents a historical marker for the NFT ecosystem. It is not just about celebrating the success of CryptoPunks, but also about exploring the ethos and community surrounding it.

The stories, voices, and insights promised in the series will offer a valuable perspective on the digital renaissance that NFTs have ushered in. The docuseries is also likely to become an essential cultural artifact, preserving the memories of this pivotal era in the evolution of digital art and its undeniable role in shaping the future of the internet.

Coinbase CEO Calls Bitcoin 'Most Important Asset in Crypto' Ahead of Lightning Integration

Coinbase CEO Brian Armstrong has announced that Coinbase is moving to enable user access to the Bitcoin Lightning Network, a layer-two scaling solution that allows Bitcoin to be used for faster consumer payments and deferred settlement.

This move marks a significant shift in Armstrong's stance on Bitcoin, as he was previously a vocal critic of the cryptocurrency. His acknowledgment of Bitcoin as the "most important" asset in crypto is a significant endorsement of the leading cryptocurrency's role in the industry.

The integration of the Lightning Network into Coinbase's platform is expected to significantly improve the usability of Bitcoin for its users. By reducing transaction fees and speeding up transaction confirmation times, Coinbase aims to enhance the overall Bitcoin experience for its millions of customers.

The crypto community has largely welcomed this development, as it is expected to set a precedent for other major cryptocurrency exchanges to follow suit, further cementing Bitcoin's status within the industry.

The integration of the Lightning Network is a positive development for both Bitcoin and the cryptocurrency industry as a whole. It demonstrates the growing adoption of Bitcoin as a legitimate form of payment, and it is likely to pave the way for more widespread use of the cryptocurrency in the future.

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