Cryptocurrency roundup for March 28: CFTC slaps Binance and its CEO with a lawsuit, Coinbase vs. SEC, German banking giant Dwpbank to offer Bitcoin Services and more

The Securities and Exchange Commission’s (SEC) Wells notice to leading cryptocurrency exchange Coinbase, alleging violations of US securities laws in offering several services, including Earn products has sent ripples across the cryptocurrency industry.
> Industry experts have expressed concerns over the SEC's approach to regulating the crypto market, which attempts to fit cryptocurrencies within existing laws designed for traditional financial institutions.
> They also highlighted the potential consequences of the ongoing debate about classifying cryptocurrencies as securities, emphasizing the importance of Coinbase's strong legal team in crafting a defense strategy, as well as the company's history of compliance with regulatory requirements.
> The experts called for a cooperative stance between Coinbase and regulators, urging the establishment of a clear legal framework around cryptocurrency in the United States in order to benefit the entire industry. Details here.

A recent analysis of global Bitcoin ownership reveals that less than 40% of the total supply is considered liquid, with a growing number of people using the cryptocurrency as a store of value or an instrument of speculation.
> The data also indicates that ownership is highest in emerging and frontier markets and that the typical Bitcoin owner is male and under the age of 45.
> Despite Bitcoin's widespread adoption, the majority of its supply is held by long-term investors, resulting in limited liquidity.
> According to the study, around 67% of the total Bitcoin supply has remained idle for over a year, while 25% has been inactive for over five years.
> This trend suggests that the perception of Bitcoin as a store of value is increasing globally. More here.

Software firm MicroStrategy, co-founded by cryptocurrency proponent Michael Saylor and holding a substantial quantity of Bitcoin, has repaid the outstanding principal on its $205 million loan from the now-defunct Silvergate Bank, specializing in cryptocurrency services, as stated in a recent U.S. Securities and Exchange Commission filing.
> Furthermore, MicroStrategy disclosed the acquisition of an additional 6,455 Bitcoin, worth approximately $150 million (around $23,238 per coin), over the past five weeks.
> The repayment of the loan, amounting to $161 million, took place last Friday.
> In settling the loan, 34,619 bitcoins used as collateral were returned to MicroStrategy's possession. Full report here.

Deutsche WertpapierService Bank (Dwpbank), a provider of securities processing to approximately 1,200 banks in Germany, plans to launch a new platform called wpNex.
> This platform will offer Bitcoin access to all affiliated retail customers in the latter half of the year.
> The innovative service will integrate crypto accounts with customers' existing bank accounts, bypassing the need for additional Know Your Customer procedures, as reported by local media outlets.
> Wallet-as-a-service provider Tangany and Bankhaus Scheich's Tradias digital asset trading service will also be part of the new offering.
> Retail customers, however, will not possess private keys. Dwpbank CEO Heiko Beck stated that the bank aims to include other cryptocurrencies, digital assets, and tokenized securities in the service in the future. More here.

Binance Holdings Ltd., the leading global digital currency exchange, along with its CEO Changpeng Zhao, is facing a lawsuit Monday from the U.S. Commodity Futures Trading Commission (CFTC), accusing the company of violating trading and derivatives regulations.
> The legal action was initiated on Monday in a federal court located in Chicago.
> The lawsuit claims that Binance facilitated trades in cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ether, Litecoin, Tether, and Binance USD, which it refers to as commodities.
> Furthermore, the lawsuit alleges that Binance, under the guidance of Zhao, instructed its employees to use virtual private networks (VPNs) to disguise their locations.
> Following the lawsuit's filing, the price of Bitcoin dropped by around $1,000, and Binance's exchange token fell by roughly 3%. Continue reading.

Creditors of the collapsed cryptocurrency exchange FTX have approved a proposal to sell its preferred stock in Mysten Labs, the developer of the Sui blockchain.
> A March 22 document filed with the U.S. Bankruptcy Court in the District of Delaware outlines a proposed arrangement between FTX creditors and Mysten Labs, which includes a mutual release of claims.
> As part of the deal, creditors intend to sell approximately $95 million in preferred stock back to Mysten, along with $1 million in SUI tokens.
> The filing states, "The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors' estates and creditors." More here.

Binance experienced a surge in withdrawals after being sued by the Commodity Futures Trading Commission (CFTC) for allegedly breaching federal laws and not registering in the United States.
> Following the announcement of the lawsuit, there was a net outflow of $123 million, with withdrawals amounting to $169 million compared to deposits of just $46 million.
> According to crypto data provider Nansen, Binance currently holds cryptocurrencies worth $63.7 billion. This information is based on a publicly disclosed list of wallets from the exchange, which aims to demonstrate transparency regarding its holdings.
> The legal action alleges that Binance, the leading global cryptocurrency exchange, continued to cater to U.S. customers and attempted to expand its footprint in the region, despite public claims that it did not offer services to U.S. clients. More here.

Bitcoin (BTC) experienced a dip under $27,000 following the U.S. Commodity Futures Trading Commission (CFTC) lawsuit against Binance and its founder, Changpeng Zhao, for allegedly providing unregistered crypto derivatives products in the U.S., which violates federal law.
> As a result, the BTC/USD trading pair on the Coinbase exchange fell to $26,525, its lowest level since March 17, according to TradingView data.
> The leading cryptocurrency by market capitalization was recently trading at $26,978, representing a 3.1% decrease over the past 24 hours.
> Ethereum (ETH), the second-largest cryptocurrency, dropped below $1,700 before recovering slightly to $1,703, still down 3.6% from Sunday.
> BNB, the native token of the Binance-developed BNB Chain, fell by over 5% to approximately $310 from around $327 a day earlier.
> Litecoin (LTC) experienced a decline of nearly 4.8%.