Bitcoin, Ether Flat in Trade on Tuesday

> Bitcoin and ether managed to maintain their value, while other digital currencies known as altcoins dropped.

> According to data from TradingView, Bitcoin was trading at around $17,270 and had not experienced any significant changes over the previous 24 hours.

Crypto Exchange Coinbase Lays Off 25% Of Staff Citing Crypto Winter

Coinbase, one of the largest cryptocurrency exchanges in the world, announced on Tuesday that it will lay off around 950 employees, or about 25% of its workforce, due to the downward trend in the crypto market and the broader macroeconomy.

> The layoffs will take effect immediately.

> In a statement, Coinbase CEO Brian Armstrong said Coinbase is well-capitalized, and that crypto is not going anywhere.

> He added that recent events like the collapse of crypto exchange FTX, investigations surrounding competitor exchange Binance, and regulatory clarity will benefit Coinbase, however, the change will take time to take effect and therefore the company needs to have operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge. Continue reading.

OFAC Sanctions Take a Toll: Inflows to Decentralized Mixer Tornado Cash Drop 68%

Sanctions on decentralized mixing service on the Ethereum (CRYPTO: ETH) blockchain Tornado Cash by the United States Office of Foreign Assets Control (OFAC) had a significant impact on the platform, with inflows to the service falling by 68% in the 30 days following its designation.

> The OFAC had sanctioned Tornado Cash first in August and then in November 2022.

> According to a Chainalysis report, the illicit activity on Tornado Cash was primarily concentrated on two forms of cybercrime: crypto hacks and scams and nearly all of the illicit funds received by the service during the 60-day period prior to the sanctions were from stolen funds, with the majority of these funds coming in the form of periodic spikes. Details here.

Former Head of Engineering at FTX Meets with Prosecutors in Cooperation Effort for Fraud Case

The former head of engineering at cryptocurrency exchange FTX, Nishad Singh, has met with federal prosecutors in an attempt to join two other members of former CEO Sam Bankman-Fried's inner circle in seeking a cooperation deal in the fraud case related to the collapse of the exchange.

> Singh, who has not been accused of any wrongdoing, participated in a proffer session last week at the Southern District of New York US Attorney's Office, the report stated.

> This type of meeting is typically used to grant limited immunity to individuals in exchange for information they can share with prosecutors.

> However, a proffer session alone does not guarantee a cooperation agreement. Prosecutors must evaluate the value of the information shared before deciding to offer a deal. Read full report here.

CFTC Charges Digital Artist with Market Manipulation in Massive Exploit on Decentralized Finance Platform Mango Markets

The Commodity Futures Trading Commission (CFTC) of the United States has charged self-proclaimed digital artist Avraham Eisenberg with two counts of market manipulation in relation to an exploit on the decentralized finance platform, Mango Markets.

> Eisenberg was arrested on Dec. 27 and currently remains in custody.

> According to the CFTC, Eisenberg "engaged in a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets" which resulted in "the misappropriation of over $100 million from the platform" in October.

> The legal filing states that Eisenberg "purchased over 400 million MNGO-USDC Swaps on Mango Markets with a position size of approximately $19 million." Continue reading.

Gemini President Calls for Digital Currency Group CEO's Dismissal Over Fraud Allegations

In an open letter, the President of Gemini, Cameron Winklevoss, has called for the dismissal of the CEO of Digital Currency Group, Barry Silbert.

> This comes amid a dispute surrounding the frozen funds of Gemini's Earn program users.

> In the letter, Winklevoss accuses Genesis Global Capital LLC and its parent company, Digital Currency Group, of defrauding Gemini and over 340,000 Earn users, claiming that they misled the company, Earn users, and the public regarding the company's solvency and financial health.

> The letter details the company's perspective on the involvement of Digital Currency Group in relation to the failed hedge fund 3AC.

> Winklevoss asserts that Silbert failed to take action to mitigate the impact following 3AC's collapse. Full report here.

Gemini President Calls for Digital Currency Group CEO's Dismissal Over Fraud Allegations

In an open letter, the President of Gemini, Cameron Winklevoss, has called for the dismissal of the CEO of Digital Currency Group, Barry Silbert.> This comes amid a dispute surrounding the frozen funds of Gemini's Earn program users.> In the letter, Winklevoss accuses Genesis Global Capital LLC and its parent company, Digital Currency Group, of defrauding Gemini and over 340,000 Earn users, claiming that they misled the company, Earn users, and the public regarding the company's solvency and financial health.> The letter details the company's perspective on the involvement of Digital Currency Group in relation to the failed hedge fund 3AC.> Winklevoss asserts that Silbert failed to take action to mitigate the impact following 3AC's collapse. Full report here.

Brother of Former Coinbase Employee Sentenced to 10 Months in Prison for Insider Trading Scheme

The brother of a former Coinbase employee has been convicted for his involvement in an illegal crypto insider trading scheme.

> Nikhil Wahi, the brother of former Coinbase product manager Ishan Wahi, pleaded guilty in September to a charge of conspiracy to commit wire fraud.

> In an order signed on January 4, a U.S. District Judge handed down a sentence of 10 months in prison to Wahi.

> It is alleged that Ishan Wahi while working at the San Francisco-based cryptocurrency exchange, gave inside information about upcoming token listings to his brother and a friend, Sameer Ramani.

> They used this knowledge to buy the tokens before the official announcement from Coinbase, and then sold them for profit, according to prosecutors. More here.

Crypto.com Announces Suspension of USDT Transactions and Delisting from Platform

Cryptocurrency exchange Crypto.com will no longer facilitate transactions involving Tether for customers in Canada and has decided to delist the largest stablecoin by market capitalization in the region.

> The move comes as a result of instructions received from the Ontario Securities Commission (OSC) as part of Crypto.com's pre-registration process for a restricted dealer license.

> Canadian users of the exchange were notified of this change in policy on Tuesday via email, and images of the delisting notice soon began to appear on social media platforms such as Reddit and Twitter.

> This decision is likely to affect a significant number of users, as Tether is one of the most widely-used stablecoins in the crypto space and its delisting will limit the options for users looking to trade or hold it. Continue reading.