Last week [In] Crypto: 3AC Founders Vanish, Celsius faces class action lawsuit, Binance accused of violating sanctions against Iran

Be[in]Crypto has searched the crypto industry for the leading stories that resonated over the past week. The stories range from the weak reserve risk indicator for Bitcoin, crypto personalities rubbing shoulders with individuals from TradFi, 3AC entrepreneurs walking in the dark, Vauld about to be bought by Nexo, and the Uniswap V3 phishing saga.

Don’t forget to subscribe to our newsletter and get our weekly summaries straight to your inbox!

Tough times for Bitcoin

Bitcoin had another upsetting week, flooded with low prices and unfavorable attitudes towards regulators. The network’s mining hasrates fell by 26% over the last 30 days, which means a winter for the mining industry. Leading mining companies have been forced to lay off some employees, while others are selling their Bitcoin holdings as a coping strategy for declining revenues.

Bitcoin Reserve Risk Indicator fell to new lows according to the latest data from Glassnode. The indicator measures long-term holder confidence, and current calculations indicate that the asset price may fall significantly in the short term.

The US Securities and Exchange Commission (SEC) further sparked enthusiasm for the community after it delayed a decision on the ARK 21Shares spot Bitcoin fund. The regulator extended the decision by 45 days after rejecting Grayscale’s application a few days earlier.

The larger image shows increasing cryptoadoption

Apart from low prices, crypto adoption is constantly reaching new heights. Last week, Senator Kirsten Gillibrand received over $ 150,000 from donations from crypto leaders including Sam Bankman-Fried and Brett Harrison.

Top crypto personalities came on the list of the most popular figures in finance. MicroStrategy’s CEO and Bitcoin maximalist, Michael Saylor, and Dogecoin enthusiast Elon Musk were part of the exclusive list that respondents sought for investment advice.

In the UK, a judge has approved legal documents to be served through Non-fungible Tokens (NFTs) on the blockchain. The historic ruling came during the case between the owner of a gambling company and the best crypto exchanges, and will serve as a precedent that governs litigation in the UK and other jurisdictions.

Cryptoadoption is on steroids in Indonesia, as the governor of the country’s top bank has praised the crypto potential for the economy. At the top of his list was the improvement of financial inclusion, but he warned stakeholders about the prominent and systemic risk it posed.

The 3AC saga

The liquidators of 3AC achieved a significant victory in court after the issuance of a summons for the difficult founders of the hedge fund. Reports indicate that the entrepreneurs do not cooperate with the liquidators when they try to uncover the stocks of the investors’ funds.

The industry was dazed after a registration indicated that the founders of the hedge fund had gone into hiding. Kyle Davis and Su Zhu, the founders of 3AC, had ordered the company’s offices in Singapore to be abandoned and used the evasive tactic of “turning off audio and video” in a zoom call.

3AC, once a major force in the crypto ecosystem with assets worth over $ 3 billion under its belt, is struggling to stay afloat. The company transferred stack coins worth more than $ 25 million to KuCoin as it struggled to stay afloat.

Celsius and Vauld face steep obstacles

Restless Celsius was criticized with a class action lawsuit that threatened to expose the company as one big Ponzi scheme. Part of the claims of aggrieved parties in the lawsuit includes the fact that Celsius sold unregistered securities through Celsius Earn Rewards.

Taylor Goines, a resident of Arkansas, noted that the company used the unethical strategy of using the funds of new investors to deal with old investors.

Vauld, another troubled company, announced a $ 70 million deficit it discovered in an attempt to put the house in order. Vauld requested a moratorium that would “protect” the company from legal attacks amid reports of acquisitions from Nexo.

The offenders

A report by Reuters sent shockwaves down the spine in the industry when it claimed that Binance had circumvented US sanctions and allowed users from Iran to use the stock exchange. In response, Changpeng Zhao noted that his company is not a US company, and out of respect for the rules, Binance stopped services in Iran, but admitted that it was possible for users to use VPNs to circumvent the protocols.

Uniswap V3 users were the victims of a phishing attack that resulted in the loss of over 7500 ETH. Harry Denley, a blockchain security expert, stated that 73,399 addresses were given malicious tokens as a trick to commit the robbery.

Experts advised investors not to click on suspicious links while the Uniswaps team clarified that the breach was “completely separate from the protocol.” Phishing attacks are becoming commonplace in the industry, with billions of dollars falling.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information contained on our website is strictly at your own risk.