Binance Faces Roadblocks in Providing Full Financial Transparency

Binance, the world's leading digital asset exchange, is facing delays in its auditing process, which has been prompted by increased calls for transparency following the collapse of rival FTX. The company had originally planned to carry out a full audit of its assets and liabilities but has encountered challenges in finding an auditor who is adequately equipped to handle the task. According to Binance's Asia-Pacific head, Leon Foong, "It'll take a longer time. It shows you the limitations of the more traditional industries because there is a learning curve. Number one, it's not their core competence. And number two, obviously there's a lot of scrutinies if they get it wrong." More here.

Argo Blockchain's Bitcoin Mining Production Rises 14% in January

Argo Blockchain reported a 14% increase in its Bitcoin mining production for the month of January, producing 168 Bitcoin compared to 147 Bitcoin in December 2022. The London Stock Exchange-listed company attributed the increase to fewer curtailment hours in January compared to December, which was affected by a severe winter storm in the United States. In terms of revenue, Argo's mining revenue increased to $3.42 million in January, compared to $2.49 million in December 2022. The company had 115 Bitcoin in total holdings as of January 31st, with a total hashrate capacity of 2.5 exa hashes per second. However, Argo has announced that it will discontinue its monthly mining updates following the sale of its Helios facility to Galaxy Digital for $65 million. Details here.

FTX Bankruptcy Case: Sullivan & Cromwell Incurs $7.5 Million in Charges

Law firm Sullivan & Cromwell incurred charges of $7.5 million for their services in the FTX bankruptcy case during a 19-day period in November, according to a recent court filing. This prompted concerns from various parties including U.S. lawmakers, the executive branch, FTX founder Sam Bankman-Fried and a group of senators, due to the firm's previous involvement with the company, as well as its former partner's current position as FTX General Counsel. The firm's work involved over 150 staff and over 6,500 hours of work by 32 partners, 85 associates, and 34 non-legal staff. The company's CEO, John J. Ray III, defended their appointment, stating that Sullivan & Cromwell is one of the leading law firms in the relevant areas and is in the best interest of FTX and its stakeholders. Details here.

Chiliz Blockchain Launches Layer-1 EVM Compatible Platform, CHZ Token Surges 20%

 Blockchain technology company for the sports and entertainment industry Chiliz is marking its fifth anniversary by rebranding and launching a new layer-1 blockchain. The genesis block of the new EVM-compatible Chiliz blockchain has been validated and the launch of the new chain is expected to attract more Web3 developers and brands. Chiliz has issued Fan Tokens through its fan rewards and engagement app Socios.com, working with over 170 major sporting organizations. The Chiliz Blockchain will allow sports and entertainment brands to create NFTs, Fan Tokens, and DeFi products, and engage with fans in the web3 environment. More here.

Alameda Research Wallets Reactivate, Transfer Millions in FTX Tokens, Sparking Community Concern

The Crypto community was taken by surprise on February 7th when wallets associated with the now-bankrupt Alameda Research were once again active, transferring millions of dollars worth of FTX Tokens. The source of these funds and how they were accessed has become a major point of concern, causing many to question the actions of law enforcement agencies, according to a Cointelegraph report. The Alameda wallet address "brokenfish.eth" transferred nearly $2 million worth of FTT tokens from the BentoBox smart contract on SushiSwap. The smart contract, which serves as the central vault for the entire Sushi ecosystem, was previously overseen by former FTX CEO Sam Bankman-Fried. More here.

Kraken Under Scrutiny by SEC for Possible Securities Rule Breaches

Major cryptocurrency exchange Kraken is currently under investigation by the United States Securities and Exchange Commission (SEC) over claims that it broke securities rules related to offerings made to American clients. Citing an anonymous source, Bloomberg reported that the SEC probe is in its advanced stages and could lead to a settlement in the near future. The specific tokens or offerings under scrutiny are not yet clear. Kraken, legally known as Payward Inc., and the SEC declined to comment on the investigation. It should be noted that SEC probes do not always result in enforcement action, but fines and penalties for firms and individuals are possible outcomes. More here.

Crypto Market Update: Bitcoin Flat as Ether Soars, Equities Slip Amid Fed Talk

The cryptocurrency market saw a mix of activity as Bitcoin maintained its position near $23,000 while Ethereum made gains. The Sandbox token received a boost from rumors of a potential metaverse partnership with Saudi Arabia. Meanwhile, traditional equities were underperforming. According to TradingView, Bitcoin was trading at around $22,900, experiencing a slight dip of 0.2% over the past 24 hours. Despite the minor decrease, Bitcoin had shown some momentum on Tuesday ahead of Federal Reserve Chairman Jerome Powell's conversation with David Rubenstein of the Carlyle Group. Ethereum experienced a more substantial increase, rising 2% to trade above $1,660. Other major cryptocurrencies also saw varying levels of growth, with Binance Coin (BNB) remaining flat, Ripple's XRP rising by 1.2%, Solana (SOL) jumping 2%, and Polygon (MATIC) skyrocketing almost 6% to trade above $1.30. However, some publicly traded companies in the crypto space experienced a downturn. Coinbase shares slipped 2% to trade around $70, according to Nasdaq data. Silvergate also saw a decrease of 2.4% to $18, while Jack Dorsey's Block fell 1% to trade just above $83. MicroStrategy also took a hit, dropping over 2.6% to $276.50.