Bitcoin News and Finance: What You Need to Know

Layer one (L1) and layer two (L2) blockchains offer different approaches to scaling distributed ledger networks. While developers of L1 blockchains focus on improving the base protocol, L2 programmers have moved transactions off-chain to enable faster and cheaper transactions. What Are Layer One Blockchains? Layer one or L1 refers to a base blockchain protocol like Bitcoin or Ethereum. These networks operate on a decentralized ledger secured by proof-of-work (PoW) mining or proof-of-stake (PoS) staking . L1 chains such as Bitcoin and Ethereum offer unparalleled security. However, during peak times, both of these chains grapple with sluggish transaction speeds and steep fees. Developers from several L1 networks are working to improve layer one scaling through methods like increasing block size, sharding , and introducing proof-of-stake consensus. However, substantial layer one upgrades require coordination among node operators and can take years to implement. Some blockchains inte...

U.S. authorities are seeking to recover cryptocurrencies linked to the popular pig-butchering crypto scam. “Law enforcement was able to trace cryptocurrency involved in the fraud and money laundering to two Binance accounts, where it was seized,” the United States Attorney’s Office for the District of Massachusetts has revealed. US Continues to Crack Down on Pig-Butchering Crypto Scam The United States Attorney’s Office for the District of Massachusetts announced Tuesday that it has filed “a civil forfeiture action to recover cryptocurrency alleged to be the proceeds of a ‘pig-butchering’ fraud scheme targeting a Massachusetts resident and involved in money laundering.” The announcement details: Specifically, the government seeks to forfeit 412,543.555 tether ( USDT ) and 100.896 Binance coin ( BNB ) seized from two accounts located at Binance.com, a cryptocurrency exchange and custodian. The U.S. Attorney’s Office added: “Collectively, this cryptocurrency has a current estimate...

JPMorgan Chase CEO Jamie Dimon has expressed concerns about the Federal Reserve potentially raising interest rates to 7% and that the U.S. economy could experience stagflation. “I am not sure if the world is prepared for 7%,” he stressed, adding that there is “a range of outcomes.” Jamie Dimon’s Economic Warnings The CEO of JPMorgan Chase, Jamie Dimon, discussed various aspects of the U.S. economy, including the impact of further interest rate hikes, in an interview with the Times of India, published Tuesday. When asked about the possibility of a hard landing in the U.S., the JPMorgan boss replied: “No one knows. There is a range of outcomes. It will be affected by everything else — Ukraine, oil, gas, war, Europe.” The executive added: “I would be cautious … We have to deal with all these serious issues over time, and the deficits can’t continue forever. So rates may go up more. But I hope and pray there is a soft landing.” Dimon explained: “When rates go up sharply, there is stre...

Four U.S. lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to immediately approve spot bitcoin exchange-traded funds (ETFs). “Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards … We urge you to approve the listing of spot bitcoin ETPs immediately,” the lawmakers told SEC Chair Gary Gensler. Lawmakers Want Spot Bitcoin ETFs Approved U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler on Tuesday urging the regulator to immediately approve applications for spot bitcoin exchange-traded funds (ETFs). The lawmakers wrote: We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange traded products (ETPs). The letter cites a recent decision by the Court of Appeals ...

Cryptocurrency exchange Kraken announced new achievements in implementing its strategy to pursue expansion on the European market. The U.S. trading platform for digital assets said it has received regulatory nods from the monetary authorities of Ireland and Spain, two of the EU nations with relatively clear rules for the industry. Another Major U.S. Crypto Exchange, Kraken, Strides On With European Expansion Digital asset exchange Kraken has obtained authorization from the Central Bank of Ireland as an e-money institution (EMI) and has registered with the Bank of Spain as a virtual asset service provider (VASP). In a press release on Tuesday, the San Francisco-based company emphasized that the regulatory approvals highlight its commitment to growing its business in Europe. With the EMI license, which has been granted to Kraken’s subsidiary in Ireland, the exchange will be able to partner with European banks in order to expand its euro fiat services for clients in the EU’s 27 member...

Amazon, the worldwide tech behemoth, has announced that it will invest up to $4 billion in Anthropic, an artificial intelligence (AI) firm that has developed Claude, a generative AI assistant. As part of this strategic partnership, Anthropic will train its models on top of Amazon silicon, and Anthropic will make its models available through Amazon Bedrock. Amazon to Pour up to $4 Billion Into AI Model Company Anthropic Amazon, one of the leading tech companies in the world, has announced a strategic partnership with artificial intelligence (AI) firm Anthropic that includes an investment of up to $4 billion in exchange for a minority stake in the company. According to a press release issued by Amazon, Anthropic will now use Amazon Web Services (AWS) as its primary cloud services provider. Anthropic will also use Amazon-produced silicon, including its Trainium and Inferentia chips, to “build, train, and deploy its future foundation models, benefitting from the price, performance, sc...

Cryptocurrency exchange Binance is now accepting new registrations of Belgian users following an interruption caused by regulatory actions against it. In June, the trading platform was ordered to cease providing crypto exchange and custody services in the EU country. Binance Returns to Belgium 3 Months After Pausing Services Under Regulatory Pressure The world’s largest crypto exchange by daily trading volume, Binance, has resumed operations in Belgium, one of the European countries where it faced a regulatory crackdown in the past few months. This year the exchange found itself under increased scrutiny from authorities on both sides of the Atlantic. “Great news for our Belgian community,” Binance tweeted on Monday, announcing it has reopened registrations. In another post through its Belgian account on X, formerly Twitter, Binance said it has restored access to products and services for Belgian customers who have accepted its new Terms of Use. Dear Binancians We are delighted ...

Lawyers for Sam Bankman-Fried are making another attempt to have the disgraced FTX founder temporarily released from jail before his October trial, claiming he needs better access to prepare his defense properly. Lawyers Cite Bankman-Fried’s Indispensable Knowledge for Complex Trial Preparation In a letter to U.S. judge Lewis Kaplan filed Monday, Sam Bankman-Fried ’s attorneys argued that the current restrictions on meeting with their client at Manhattan’s Metropolitan Detention Center (MDC) are “not workable” for a case this complex. “This case is highly technical and complex, and we need our client to help us understand the facts and explain many of the issues,” lawyers state in the letter. “He alone knows the facts which are also critical in preparing his defense. Unfortunately, his knowledge and insight cannot be replicated by third-party experts as they are not familiar with the underlying facts and cannot provide the necessary help.” Bankman-Fried’s lawyers say they need mo...

Despite the role it has played in narrowing the financial inclusion gap, the e-naira central bank digital currency still poses a risk to financial stability. In addition to bolstering the financial inclusion rate, the central bank claimed that the CBDC would “widen the size and stability of banks’ deposit base.” Nigeria’s Financial Inclusion Rates According to a new Central Bank of Nigeria (CBN) study, the country’s nearly two-year-old e-naira central bank digital currency (CBDC) poses a risk to financial stability. This is despite the fact that such a digital currency can potentially help improve Nigeria’s “financial inclusion rate from 64.1 percent recorded in 2021 to the 95.0 percent target for 2024.” Launched in late October 2021, the e-naira, which was championed by former CBN governor Godwin Emefiele, has not been widely received by the Nigerian population. As previously reported by Bitcoin.com News in August 2022, there were fewer than one million downloads of the e-naira ...

Worldcoin, the biometric wallet and ID project, has reported that it has signed up more than 1% of the population of Chile. According to the organization, more than 200,000 Chileans are already using Worldcoin, a popularity uptick shared with other South American countries, including Argentina, where 9,500 Argentines verified their IDs in a day. Worldcoin Achieves Milestone in Chile; More Than 1% of the Population Reportedly Registered Worldcoin, the project that uses biometric iris scanning as “ proof of personhood ,” has reached a milestone in Chile. The organization reported having signed up 200,000 Chileans since its launch. With Chile having approximately 19.5 million residents, this means more than 1% of the population would have signed up to receive Worldcoin’s grant in the form of WLD, the native token of the protocol. This growth signals the popularity rise of the project in South American countries, that have shown interest in the proposal of the World ID app. Due to thi...

A federal judge has issued rulings limiting some arguments the defense can make at Sam Bankman-Fried’s criminal fraud trial next month. However, the judge will allow Bankman-Fried’s lawyers to question witnesses about past recreational drug use. Bankman-Fried Can’t Mention Jail Time at Trial In a 16-page order , Lewis Kaplan, the U.S. District judge presiding over the case granted some of prosecutors’ requests to bar certain defense strategies and evidence at the October trial of the FTX cryptocurrency exchange founder. Kaplan prohibited Sam Bankman-Fried ‘s lawyers from telling jurors he’s been detained pretrial or referencing his family and personal life. The judge also barred arguments over whether FTX customers were negligent in using the exchange or that Bankman-Fried intended to pay back any allegedly stolen funds. Kaplan wrote both are irrelevant or unfairly prejudicial. However, Kaplan declined to prohibit Bankman-Fried’s lawyers from asking witnesses about recreational d...

Bitcoin and crypto asset funds currently represent a niche market with an estimated worth of $50 billion, as highlighted by Bernstein Research. Yet, under the leadership of Gautam Chhugani, Bernstein’s team of analysts anticipates these funds may oversee between “$500-650 billion of assets” in the coming five years. $650B Horizon: Bernstein Envisions Massive Growth in Crypto Funds Over the next five years, the crypto fund management industry could see significant growth, according to Bernstein analysts . Led by Chhugani, Bernstein’s team currently values the sector at $50 billion, describing it as a “cottage industry.” However, they anticipate it will transform into a regulated asset management industry, managing “$500-650 billion of assets” within five years. One reason is they believe regulatory challenges will diminish. “The meat of regulatory backlash is done for now, and the Coinbase case will provide further clarity,” said the Bernstein team in a note to investors on Monday. ...

The U.S. Better Business Bureau (BBB) has issued a warning about a surge in “money-flipping” crypto investment scams on Tiktok. “They may ask for fees several times,” the BBB cautioned, adding that if you question them, “they may resort to scare tactics, telling you that if you don’t pay, you’ll miss out on the giant return or that they can take legal action.” Crypto Scams on the Rise on Tiktok The U.S. Better Business Bureau (BBB) recently issued a warning about the rising number of cryptocurrency investment scams on Tiktok. Founded in 1912, the BBB is a private, nonprofit organization focused on advancing marketplace trust. According to the bureau: Money-flipping cons have long been popular on Instagram and Twitter. But as Tiktok’s popularity grows, so do the con artists. Watch out for this Tiktok scam, which promises to turn a few hundred dollars worth of cryptocurrency into thousands in no time. The BBB explained that when browsing Tiktok videos, you may come across some sho...

A controversy surrounding Alex Welch, an alleged spokeswoman of Tether, the company behind USDT , erupted last week as an article in the Wall Street Journal (WSJ) quoted her as a source for information on the company’s loans. However, Tether CTO Paolo Ardoino denied any involvement of Welch with the stablecoin company, criticizing the publishing practices of the news outlet. Alleged Tether Spokeswoman Alex Welch Causes Controversy Alex Welch, who has been presented in several articles as a spokesperson for Tether, the stablecoin company behind the issuance of USDT , is at the center of a controversy between the company and mainstream news outlets. Welch was mentioned as a source for allegations regarding the rise in Tether’s outstanding loans in a recent article by WSJ journalist Jonathan Weil, which was criticized as “tabloid-style” reporting in a press release issued by the company. In the article, Welch is reported to have given information regarding these loans, stating that ...

Microstrategy has acquired 5,445 more bitcoin, bringing the company’s total holdings to 158,245 BTC . According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), the additional bitcoins were acquired during the period between Aug. 1 and Sept. 24. Microstrategy Adds 5,445 Bitcoin to Its Treasury The Nasdaq-listed software intelligence firm Microstrategy has continued to increase its bitcoin holdings. On Monday, Michael Saylor, founder and chairman of Microstrategy, announced on social media platform X: Microstrategy has acquired an additional 5,445 BTC for ~$147.3 million at an average price of $27,053 per bitcoin. As of 9/24/23 Microstrategy hodls 158,245 BTC acquired for ~$4.68 billion at an average price of $29,582 per bitcoin. $MSTR According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), the additional bitcoins were acquired between Aug. 1 and Sept. 24. Microstrategy also announced on Monday that as of Sept. 2...

U.S. presidential candidate Nikki Haley has warned that China is preparing for war and Chinese President Xi Jinping intends to win. “China is an existential threat. It has spent half a century plotting to defeat us,” she stressed, cautioning that China is “building a massive cutting edge military, capable of threatening America and dominating Asia and beyond.” Nikki Haley Warns of China’s Preparation for War U.S. presidential hopeful and former governor of the state of South Carolina, Nikki Haley, warned in a speech at the New Hampshire Institute of Politics on her economic policy Friday that China is preparing for war. “Strength and pride are essential to our national survival, especially in the face of Communist China,” she began, elaborating: China is an existential threat. It has spent half a century plotting to defeat us. “It’s taken our manufacturing jobs. It’s taken our trade secrets. Now, it’s taking control of critical industries — from medicines to advanced technology...

The U.S. Securities and Exchange Commission’s former head of internet enforcement has called on the U.S. Department of Justice (DOJ) to prosecute more crypto firms. “The stark reality is that the SEC is merely a civil enforcement agency. And until crypto-grifters face the threat of DOJ prosecution (i.e. prison time), they will continue to treat SEC enforcement-related risks … as the cost of regulatory arbitrage and just another liability item on their balance sheets,” he stressed. DOJ Should Prosecute Crypto Cases, Says Ex-SEC Official Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark has called on the U.S. Department of Justice (DOJ) to take more action against the crypto industry. Commenting on the fraud case of Sam Bankman-Fried (SBF), former CEO of cryptocurrency exchange FTX, Stark wrote on social media platform X Saturday: “For the life of me, I cannot comprehend why the U.S. Department of Justice and the U.S. Securities and Exchange Commission ha...

San Francisco-based law firm Fenwick & West LLP is denying allegations from FTX founder Sam Bankman-Fried that the firm provided legal advice enabling the alleged fraud that led to the cryptocurrency exchange’s collapse. In a recent court filing, Fenwick & West asserts the allegations are “fatally deficient” and should be dismissed with prejudice. Law Firm Challenges FTX Founder’s Claims In a motion to dismiss filed Wednesday in Florida federal court, Fenwick & West argues the complaint fails to state viable claims for conspiracy, aiding and abetting fraud, negligence, or racketeering. The firm asserts the allegations improperly seek to hold it liable based on providing routine legal services to FTX within the scope of representation. Fenwick & West claims the complaint does not show it acted outside its role as legal counsel, an essential element for the asserted causes of action against a law firm. “A lawyer’s representation of a client and knowledge of their emp...

In just five days, liquid staking platforms saw a surge of 370,000 ether in their ethereum holdings, breaching the 12 million ETH mark—rising from 11.94 million to a notable 12.31 million. Interestingly, Binance’s liquid staking token, WBETH, was the powerhouse behind this growth, accounting for over 86% of this week’s increase, swelling by 318,605 ether in the five-day span. Liquid Staking Platforms Leap Over 12 Million Ether As of September 25, 2023, data from defillama.com reveals that Ethereum ( ETH ) holdings in liquid staking derivative protocols have soared past the 12 million mark, reaching an impressive 12.31 million. Rewinding to September 20, historical records indicate that 11.94 million ether was anchored across nearly two dozen of these protocols. Among the 23 contenders, Lido dominates with a staggering 70.90% of the total value locked (TVL). On that same day, September 20, Lido had approximately 8.7 million ether secured in its decentralized finance platform. Fast...

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: a Bitcoin mining farm is discovered during a raid on a Venezuelan jail, a bill that protects crypto from seizure advances in Brazil, and the Chilean police find a Bitcoin farm during a drug raid. Bitcoin Farm Found in Venezuelan Jail A Bitcoin mining farm was dismantled during a mega raid on the Venezuelan penitentiary center of Tocoron, located in the Aragua state. The raid, which involved the participation of more than 11,000 officers, found an undisclosed number of Bitcoin miners inside a makeshift mining farm, which was allegedly operated by the gang that held control of the national jail, called “Aragua’s Train.” During the raid, the police also found drugs, rifles and ammo, C4 explosives, and more eccentric elements, like a disco where events were held, a swimming pool, a baseball stadium, and even a zoo. Authorities have not issued statemen...

U.S.-based crypto exchange Coinbase has obtained a registration in Spain that will allow it to offer a range of services for digital assets. The authorization fits into the company’s current strategy for global expansion through acquiring local licenses and tailoring products for specific markets. Cryptocurrency Exchange Coinbase Registers With the Central Bank of Spain Leading U.S. digital assets trading platform Coinbase has registered as a crypto exchange and custodian wallet provider with the Bank of Spain. The firm said this week the registration will allow it to offer its full suite of products and services to both retail and institutional customers in compliance with in Spain’s laws and regulations. In an announcement on Friday, Coinbase emphasized the development is a milestone in the execution of its “Go Broad, Go Deep” strategy for international expansion. In a recent blog post , the American crypto firm said it’s launching its second phase and shared details about its p...

A London-headquartered law firm is preparing a lawsuit against the fugitive mastermind of the Onecoin crypto pyramid scheme, ‘Cryptoqueen’ Ruja Ignatova. Its lawyers intend to file a class action suit in the United Kingdom’s High Court, the British press revealed. Fugitive Cryptoqueen May Face U.K. High Court Lawsuit Over Investor Losses Mishcon de Reya, the elite British law firm that once had Princess Diana among its high-profile clients, is now working on a lawsuit against the founder of the notorious crypto scam Onecoin, the still “missing Cryptoqueen” Ruja Ignatova. The lawyers are planning a class action lawsuit in Britain’s High Court, the Mail on Sunday reported. Mishcon seeks to recover funds lost by investors in the Ponzi scheme. Claimants can sign up on a “no-win, no-fee” basis, the newspaper detailed. Mishcon partner Rhymal Persad elaborated: The claim aims to achieve at least partial redress for investors taken in by the deception and who suffered losses as a result....

Cryptocurrency exchange Bybit is suspending services in the U.K. next month in order to comply with the new rules set by Britain’s top financial regulator, the Financial Conduct Authority (FCA). “The suspension will allow the company to focus its efforts and resources to best meet the regulations outlined by the U.K. authorities in the future,” Bybit explained. Bybit Halting UK Services Crypto exchange Bybit announced Friday that it is suspending services in the U.K. in order to comply with the new rules on marketing and communications for crypto businesses set by the Financial Conduct Authority (FCA). The new rules are outlined in Policy Statement PS23/6 , titled “Financial promotion rules for cryptoassets,” which the FCA published in June. “It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations in the U.K.,” the announcement details, adding: Bybit has made a choice to embrace the regulation proactively and paus...