Saylor Gets Sued, FBI Warns of DeFi Exploits, and Crypto.com Drops $495M in Sponsorship: Hodler’s Digest, August 28
Coming every Saturday, Hodler’s Digest will help you track every important news that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more – a week on Cointelegraph in one link.
Top stories this week
DC Attorney General Sues Michael Saylor and MicroStrategy for Tax Evasion
MicroStrategy co-founder Michael Saylor is accused of evading US income taxes he allegedly incurred while living in Washington, DC. The office of the region’s attorney general, Karl Racine, has sued Saylor and MicroStrategy over allegations that the firm helped Saylor evade more than $25 million in DC income taxes. The charges, which stem in part from a change to D.C.’s False Claims Act that encourages whistleblowers to report tax evasion, mean Saylor could see $75 million in penalties.
Crypto.com Pulls Out of $495 Million UEFA Champions League Sponsorship Deal: Report
Crypto.com has decided not to go through with a $495 million sponsorship deal in response to possible regulatory issues. The sponsorship deal with the Union of European Football Associations (UEFA) would have seen Crypto.com advertised in the UEFA Champions League for five seasons. The crypto exchange was reportedly in sponsorship talks after the Champions League removed Gazprom, an energy company owned by the Russian state, as a sponsor. Crypto.com already has several high-profile advertising efforts under its belt, such as a commercial with American actor Matt Damon.
Indonesia plans to set up its crypto exchange by the end of 2022
Indonesia may have a crypto exchange, also known as a crypto exchange, constructed by the government before 2023 arrives. Originally unveiled in late 2021, the completion of the crypto exchange has taken longer than expected, but the government aims to get things right rather than rush a launch. “We will ensure that all requirements, procedures and necessary steps are taken,” Jerry Sambuaga, Indonesia’s deputy trade minister, told DealStreetAsia.
Tether asks Roche Freedman to be barred from class action lawsuit
Tether and Bitfinex remain locked in a lawsuit that began in 2019 alleging that the USDT stablecoin was used to manipulate the cryptocurrency market. The legal team for Tether and Bitfinex is asking that the plaintiffs’ legal counsel, the law firm Roche Freedman, be released from the case due to the firm’s involvement with Kyle Roche – the subject of a recent CryptoLeaks video alleging that he misused privileged information to “damage” Ava Labs competitors in exchange for AVAX tokens Kyle Roche recently moved to recuse himself from several lawsuits, including the one involving defendants Bitfinex and Tether However, the defendants still want the Roche Freedman firm completely out of the lawsuit, in addition to to request that their private information be destroyed or returned by Roche Freedman.
Central African Republic court says new $60,000 citizenship-for-crypto-investment program unconstitutional
In July, the Central African Republic (CAR) launched its Sango hub – a new crypto-focused initiative that aims to expand the use of Bitcoin and create a special economic zone in the Metaverse. The initiative also included the creation of a Bitcoin-backed digital asset called Sango that also allowed foreign nationals to purchase citizenship in the country for $60,000 in crypto, with a corresponding amount of Sango tokens held in escrow for five years. CAR’s Constitutional Court ruled the effort unconstitutional, but noted that citizenship does not come with a price tag.
Winners and losers
At the end of the week, Bitcoin (BTC) is at $20,369Ether (ETH) on $1636 and XRP on $0.33. The total market value is at $1.00 trillion, according to CoinMarketCap.
Among the top 100 cryptocurrencies, the top three altcoin winners of the week are Celsius (CEL) of 36.41%, eCash (XEC) of 20.70% and Lido DAO (I DO) of 18.05%.
The top three altcoin losers of the week are Helium (HNT) at -24.47%, Avalanche (AVAX) of -10.41% and Arweave (YEAR) of -9.92%.
For more info on crypto prices, be sure to read Cointelegraph’s market analysis.
Most memorable quotes
“Building new things is not for the faint of heart.”
Neil Dundonfounder of CryptoRecruit
“Ethereum is about permissionless innovation, free enterprise, property rights, globalization.”
Ryan Berckmansmember of the Ethereum community
“We finally came up with the idea at Coinbase that we need to be agnostic to every chain and token that comes out. We can’t sit here in our ivory tower, just focused on one asset.”
Brian ArmstrongCEO of Coinbase
“I feel it [crypto] cannot be biased.”
Tom Emmermember of the US House of Representatives
“Most crypto is actually still junk. I mean, with the exception of, I’d say, a few dozen tokens, everything else that’s been mentioned is either noise, or frankly, it’s just going to go away.”
Umar Farooqhead of Onyx, JPMorgan’s digital assets unit
“Cryptocurrencies have taken on a life of their own outside the distributed ledger – and this is the source of the crypto world’s problems.”
Ravi Menonchief executive officer of the Monetary Authority of Singapore
Prediction of the week
Bitcoin Pushes to $23K Still Open as Crypto Market Value Holds Key Support
For most of this week, Bitcoin couldn’t decide whether it wanted to stay above or below $20,000, trading north and south of the level multiple times, according to Cointelegraph’s BTC Price Index.
In a Friday tweet, pseudonymous Twitter user “il Capo Of Crypto“ noted that a possible short squeeze could occur if BTC rose above the $20,700 to $20,800 price zone. Pending a breach of this level, Bitcoin could reach between $22,500 and $23,000. On the flip side, a drop below $19,500 would likely take the pressure off the table, especially if the asset continued to fall below $19,000.
FUD of the week
FBI warns of cybercriminal exploits targeting DeFi
This week, a public service announcement from the US Federal Bureau of Investigation (FBI) warned the public of a proliferation of decentralized finance (DeFi) exploits, and said those interested in DeFi should be cautious. The agency also noted that DeFi platforms should conduct code audits to look for weaknesses. Dwarfing totals from 2020 and 2021 combined, malicious actors have stolen more than $1.6 billion via DeFi exploits so far in 2022 per data from CertiK, a blockchain security company.
Accomplice of ‘Cryptoqueen’ Ruja Ignatova faces extradition to US: Report
British citizen Christopher Hamilton, alleged accomplice of Ruja Ignatova, could face extradition to the US thanks to a ruling by a UK judge. However, the move still requires approval from an executive in the UK. Hamilton allegedly had a hand in the $4 billion OneCoin Ponzi scheme linked to Ruja Ignatova, also known as the “Cryptoqueen”. In June, The FBI added Ignatova to the list of the ten most wanted refugees. The charges against Hamilton include laundering $105 million in connection with the Ponzi scheme.
Sneak fake Google Translate app installs cryptomines on 112,000 PCs
The crypto and tech sectors are often rife with tech traps and scams. One particular effort, which has been ongoing since 2019, is particularly difficult. A certain type of malware called “Nitrokod” hides in fake data apps and starts mining Monero (XMR), but only after a few days have passed. The malware resides in convincing versions of fake apps, such as a Google Translate app that boasts many positive reviews online. However, an official Google Translate desktop app doesn’t even exist, but this malware-infused app has become a top search result. Nitrokod malware has affected over 100,000 devices spanning nearly a dozen countries.
Best Cointelegraph Features
Billions Spent Marketing Crypto To Sports Fans – Is It Worth It?
“Without explicit use cases tied to the huge dollars paid for sports marketing sponsorships, branding only leads to logo exposure.”
Get ready for the feds to start prosecuting NFT traders
Securities and Exchange Commission regulators should move to protect investors from traders who distort the NFT market with manipulative trades — and they likely will soon.
Why interoperability is key to blockchain technology’s mass adoption
Interoperability enables blockchain networks and protocols to communicate with each other, making it easier for everyday users to engage with blockchain technology.
