Newsfeed

Terraform Labs, the cryptocurrency firm behind the failed stablecoin TerraUSD, has filed for Chapter 11 bankruptcy in Delaware. The filing reveals estimated assets and liabilities ranging from $100 million to $500 million. TerraUSD collapsed in May 2022, resulting in significant losses for investors. Terraform Labs stated that the filing will allow the company to execute its business plan while addressing ongoing legal proceedings, including representative litigation in Singapore and the U.S. The bankruptcy comes as Terraform Labs faces a class-action suit in Singapore and an SEC trial related to the TerraUSD collapse. Terraform Labs CEO Chris Amani stated that the move is crucial for the company and its investors, allowing them to work toward goals while resolving outstanding legal challenges. Co-founder Do Kwon and Terraform Labs are facing fraud charges and a lawsuit from the U.S. Securities and Exchange Commission (SEC), with the recent ruling that they violated securities laws...

Morgan Stanley has raised concerns about the risk of the U.S. dollar losing its dominance, driven by increasing interest in digital assets, including bitcoin. The investment bank highlighted that the U.S. dollar's dominance is under scrutiny due to evolving geopolitical shifts and growing twin deficits. It noted the recent growth in interest in digital assets, stablecoin volumes, and the potential impact of central bank digital currencies (CBDCs) on the global currency landscape. Morgan Stanley emphasized a clear shift towards reducing dollar-dependency, leading to growing interest in digital currencies such as bitcoin, stablecoins, and CBDCs. (Source: Bitcoin.com)

Interpol's Metaverse Expert Group has released a white paper suggesting that metaverse platforms could be valuable in law enforcement training, crime scene preservation, and analysis. The report explores potential use cases, such as immersive training through metaverse environments to enhance frontline policing effectiveness and the creation of virtual replicas of crime scenes for continuous access and analysis. The white paper also addresses metaverse-related crimes, including nonfungible token fraud, cyber-physical attacks, digital identity theft, and more. Interpol emphasizes the need for a holistic approach, involving multi-stakeholder engagement and cross-border collaboration, to effectively address metacrime in the metaverse. (Source: Cryptointelligence)

Bloomberg senior litigation analyst, Elliott Stein, has expressed confidence in Coinbase's ongoing lawsuit against the SEC, forecasting a 70% chance of the exchange securing a full dismissal. Stein initially believed Coinbase could object successfully to certain SEC claims but was uncertain about allegations related to its staking rewards program and overall operational structure. However, after attending the hearing, he shifted his view, stating that he left thinking Coinbase would win a full dismissal. The SEC alleges that Coinbase, through its staking program, is offering and selling investment contracts, while Coinbase strongly refutes the claims. Stein sees the outcome as pivotal for the crypto industry, akin to the Ripple case ruling on XRP's status as a security. (Source: Cointelegraph)

The U.S. Commodities Futures Trading Commission (CFTC) has initiated a civil enforcement action against Debiex, accusing the fraudulent crypto exchange of misappropriating $2.3 million in customer funds through romance scam tactics. The CFTC alleges that Debiex used fake websites, bogus customer service, and money mules to convince victims of its legitimacy. The enforcement action targets Debiex and its associates, aiming to bring justice to the victims and hold those violating anti-fraud provisions accountable. The CFTC also emphasized the importance of verifying a company's registration with them to avoid falling prey to scams. (Source: Bitcoin.com)

The Virginia State Senate has introduced Senate Bill No. 339, presenting regulations for digital asset mining and transactions, along with tax incentives. Sponsored by Senator Saddam Azlan Salim, the bill aims to exempt miners from money transmitter licenses and prevents discrimination against mining activities in industrial zones. It proposes an exemption from securities registration for issuers and sellers of digital assets meeting specific conditions. The legislation also encourages cryptocurrency use in everyday transactions by offering tax benefits, allowing individuals to exclude up to $200 per transaction from net capital gains for purchases made with digital assets. The bill is currently under Senate review and, if approved, will move to the House of Delegates for consideration. (Source: Cointelegraph)

U.S. District Judge Amy Berman Jackson overseeing the SEC case against Binance, Binance.US, and former CEO Changpeng Zhao has ordered a court review on whether digital assets are securities. The judge will hear arguments on how the SEC treats cryptocurrencies under existing regulatory frameworks, allowing Binance.US lawyers to address whether digital assets remain securities indefinitely and the SEC's allegations about staking. The court will consider the Howey test, the SEC's standard for determining securities, to decide if assets meet the definition of an investment contract. The arguments will likely impact the classification of tokens such as BNB and Binance USD in the case. The SEC has previously claimed that many tokens qualify as securities, subjecting them to regulatory oversight. The court review follows the precedent set in the SEC case against Ripple, where XRP was ruled not to be a security in certain contexts. The outcome of this review could have broader implications...

U.S. Treasury Assistant Secretary for Financial Institutions, Graham Steele, has emphasized the need for proactive regulatory standards in the crypto sector. Speaking at an event at George Washington University Law School, Steele highlighted the opportunity for U.S. lawmakers to establish regulatory frameworks in the crypto industry before potential crises arise. Drawing parallels with past financial regulations like the Dodd-Frank Act, Steele urged forward-thinking measures in the burgeoning field of cryptocurrencies. He emphasized the Treasury's role in overseeing crypto, citing last year's executive order by President Joe Biden focusing on responsible digital asset development. Ripple CEO Brad Garlinghouse echoed similar sentiments, acknowledging the speculative nature of the crypto industry and emphasizing the importance of identifying practical applications. The discussion also touched on the recent FTX bankruptcy, illustrating risks in the crypto market and the importance of...

Canada is poised to overhaul its approach to cryptocurrency investments with proposed amendments by the Canadian Securities Administrators (CSA). The changes focus on tightening regulations around how public investment funds interact with cryptocurrencies. The amendments distinguish between alternative investment funds and non-redeemable investment funds as the only entities allowed to directly handle crypto assets. Other mutual funds can participate by investing in these specific funds. The proposal also imposes stringent criteria for crypto investments, requiring assets to be listed on recognized exchanges, fungible, insured, and stored in cold wallets. This move reflects Canada's commitment to creating a comprehensive regulatory framework for crypto assets amid a surge in investment scams in the country. The proposed changes are open for public comments for 90 days, emphasizing a democratic process to include input from various stakeholders. Canada's proactive stance positions it...

Anthropic, the developer of the artificial intelligence model Claude, has responded to a lawsuit filed in October by music companies, including Universal Music Group, alleging copyright infringement. In its objection filed on January 16, Anthropic contends that the claims are invalid and that the lawsuit was filed in the wrong court. The music companies accuse Anthropic of illegally using their AI models for training and distributing copyrighted works without permission. Anthropic argues that the claims are an attack on the new category of digital tools and that the plaintiffs misunderstand both the technology and the law. This lawsuit adds to a growing number of legal challenges between AI developers and creative entities over copyright infringement during the training of models. (Source: Cointurk)

The Securities and Exchange Commission (SEC) has extended the review period for Fidelity's proposed spot Ethereum exchange-traded fund (ETF), pushing the deadline to March 5. Fidelity's move to introduce an Ethereum ETF in November is seen as a significant step toward mainstream adoption of cryptocurrencies in traditional investment portfolios. The SEC's decision to delay its verdict indicates a thorough evaluation of the proposal and addresses the complexities involved. The extended review period allows for a more in-depth consideration of Fidelity's Ethereum ETF, influencing the potential integration of Ethereum into mainstream investment vehicles. The SEC's decision could set a precedent for future cryptocurrency ETFs and impact the regulatory landscape for digital assets. The cryptocurrency community awaits the SEC's decision, expecting significant implications for Ethereum and the broader market. (Source: Blockchainreporter)