Coinbase’s Battle for Tornado Cash, White House Not Happy with Bitcoin Mining + more news

Get your daily, bite-sized summary of cryptoassets and blockchain-related news – examine the stories that fly under the radar of today’s crypto news.

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Legal news

• A large crypto exchange Coin base has helped organize and is paying the costs of a lawsuit against US Treasury Department over their sanctions with coin mixers Tornado Cash, Bloomberg reported. The lawsuit alleges that the Treasury overstepped its authority to block financial transactions benefiting foreign terrorists. It also claims the department caught law-abiding Americans conducting legitimate digital commerce through a crypto service that offers enhanced privacy and security, according to the report. Coinbase will cover the legal costs of the six individuals challenging the Office of Foreign Assets Control (OFAC).

Mining news

• The White House says the environmental impact of producing crypto-assets like bitcoin (BTC) could hinder US efforts to combat climate change, Bloomberg reported, citing a report from the White House Office of Science and Technology Policy. The office said the United States needs to take steps to reduce pollution associated with crypto production, and that the federal government should collect more data on electricity use and work with states and the crypto industry to set standards.

Crime news

• With the help of law enforcement and crypto industry organizations, more than $30 million worth of crypto was stolen from Axie Infinity of North Korean-linked hackers have been seized, according to the blockchain analytics firm Chain analysis. “This is the first time ever that cryptocurrency stolen by a North Korean hacker group has been seized, and we’re sure it won’t be the last,” they added.
• DeFi protocol Nereus Finance said that on September 6, AVAX/USDC Joe LP NXUSD market was exploited resulting in the creation of USD 500k NXUSD bad debt in the NXUSD protocol. The flash loan exploit reportedly resulted in a profit of USD 371,000. Users’ funds are not at risk and NXUSD continues to be over-leveraged, the team behind the protocol said.

Investment news

• Mysten Labsa Web3 infrastructure company and developer of the Sui Layer 1 blockchain, founded by former executives of Metaits crypto entity, announced the first close of its $300 million Series B funding round, valuing the company at more than $2 billion.
• Gameplay Galaxya “Web3-powered” gaming ecosystem, said it raised US$12.8 million in a seed round led by Blockchain Capital. Gameplay Galaxy said it is launching its “decentralized Web3 gaming ecosystem” starting with Trial Xtreme and adding other extreme sports games in the future.
• Spice AI announced a US$13.5 million seed round for its platform that aims to enable developers to build data-driven applications for Web3. Madrona led the round, they added.
• The Hubble Protocolan issuer of USDH, a Solana (SOL) native stablecoin, said Multicoin Capital has joined the team during a recent strategic fundraising round by providing a capital injection of USD 5 million.
• Bitcoin savings app Swan Bitcoin said it has launched Swan Advisor Services, a platform that offers BTC transaction, monitoring, portfolio management and custody services for financial advisors and their clients.

Exchange news

• Toronto’s Crypto Market Mint berryowned by Kevin O’Leary backed WonderFi Technologies Inc.says it has lost about $3 million in bitcoin due to a software glitch and has yet to recover two-thirds of it from hundreds of customers, the Financial Post reported, citing a lawsuit.

Regulatory news

• Banks engaged in crypto-related activities must have appropriate measures in place to address emerging risks associated with these activities and to ensure compliance with all relevant laws, including those related to money laundering, Michael S. Barr, Deputy Director of Supervision in the United States Federal Reserveso.
• Great Britain Advertising Standards Authority said crypto-related Instagram ads by reality stars Jessica and Eve Gale were misleading. The ads must not appear again in the form complained of, and the Gales sisters must “ensure that they did not trivialize investing in cryptoassets by implying that it was easy or accessible to everyone, and not take advantage of the consumer’s inexperience or gullibility by don’t make it clear [capital gain tax] may be due to profits on cryptoassets,” the authority said.