Last Updated : May 23, 2023 / 08:57 AM IST
Cryptocurrency roundup for May 23: Malaysia Securities Commission orders Huobi to cease operations, Hotbit shuts down, Michael Lewis' book on collapse of FTX and more
A daily round-up of the most interesting articles on cryptocurrencies like Bitcoin, Ethereum and Tether to help jump-start the day.
Securities Commission Malaysia Acts Against Huobi Global
The Securities Commission Malaysia (SC) has ordered Huobi Global Limited, a well-known digital asset exchange, and its CEO Leon Li, to cease operations in the country due to regulatory non-compliance.
Unraveling Crypto Trends: Bitcoin Outflows and Altcoin Inflows on the Rise
Digital asset investment products have reported a net outflow of US$32m in the past week, marking the fifth week in a row of this downward trend, with the total over this period amounting to US$232m (0.7% of total assets under management).
> Weekly transaction volumes dropped to US$900m, a significant 40% decrease from the average volumes for this year.
Tornado Cash Token
Tornado Cash Token Rises 10% Amid Proposal to Reverse DAO Attack
The Tornado Cash token (TORN) has seen a 10% increase following submission of a proposal by a wallet address associated with a recent intrusion into the decentralized autonomous organization’s (DAO) governance system.
> This proposal intends to undo the harmful modifications that occurred during the attack.
> In the Tornado Cash community forum, a user by the name of Tornadosaurus-Hex stated that the attacker has proposed a new plan to restore the governance state.
> Tornadosaurus-Hex also mentioned that there is a high probability that the attacker would carry out this proposal.
> According to Tornadosaurus-Hex, the assailant is in the process of nullifying the TORN tokens they had self-allocated, which previously provided them with a dominant stake in the governance votes. Details here.
Stepn App Revolutionizes Fitness with In-App Crypto Transactions
Stepn, a fitness application utilizing blockchain technology to reward users with cryptocurrency, has made a ground-breaking announcement.
> The Australian firm revealed that its users can now transact in Stepn's digital assets within the app, eliminating the need for an external marketplace.
> Describing this development, Stepn's Chief Operating Officer Shiti Manghani stated in an interview with The Block, “It is a very, very big step.
> Nothing like this has been done before. Internally we’re saying this is the biggest thing happening in crypto and not that many people know about it.”
> Further, Stepn has rolled out a new feature enabling users to procure digital assets using conventional debit and credit cards connected to Apple Pay. More here.
Hotbit Shuts Down! Crypto World Shaken as Exchange Collapses
Crypto trading platform Hotbit has declared that it will cease operations starting from May 22, urging its users to withdraw their funds before June 21, 4:00 am UTC.
> Hotbit shared in a public statement that its business environment has worsened following an investigation into a former team member back in August 2022.
> This inquiry reportedly led to a temporary halt in its operations, affecting its overall business performance.
> Moreover, Hotbit attributed several disruptive incidents within the cryptocurrency sector as factors contributing to its downfall.
> The exchange pointed out the fall of FTX and the banking crises leading to the USD Coin de-pegging event as key causes of its declining cash flow. Full report here.
EOS Network Contemplates Legal Action Against Block.one: What It Means for EOS Token Holders
In a recent development within the EOS Network community, its founder, Yves La Rose, has urged community members to explore the possibility of initiating legal proceedings against Block.one (B1), a key investor in the network.
> According to La Rose, B1 has not fulfilled its commitment to a $1 billion investment, which it had promised at the time of the network's initial coin offering (ICO) in 2018.
> La Rose offered two potential routes for redress: either through legal action or by executing a hard fork to separate all EOS tokens affiliated with B1, essentially severing ties with the erstwhile backer.
> He expressed his concern over the current state of the EOS Network, stating that the unfulfilled promises of B1 have resulted in inadequate capitalization and consequent hindrance in the development of the network. Details here.
BStrike and Tether Join Forces
A New Era for Cryptocurrency Payments
Digital payment platform Strike has announced a strategic move that is expected to significantly impact the cryptocurrency industry.
> The company has integrated Tether's USDT stablecoin, a leading digital currency that ties its value directly to the US dollar, into its services.
> Strike, which operates on Bitcoin's Lightning Network, has positioned itself as a frontrunner in the digital payments sector.
> With Tether's inclusion, the company intends to streamline digital transactions and strengthen its industry standing.
> The integration follows Strike's recent expansion into 65 additional countries and the unveiling of a new USD₮-supported app design at Bitcoin 2023.
> The marriage of Tether's stable digital currency and Strike's cutting-edge payment technology promises to deliver an enhanced transaction experience for users. Continue reading
From FBI Agent to Binance.US Investigator Caught in Political Crossfire
Russian President Vladimir Putin has announced a list of 500 individuals who are now facing travel and financial restrictions, which includes BJ Kang, the Head of Investigations for Binance.US and a former FBI agent.
> This move is believed to be in response to recent sanctions imposed by the United States on Russian officials and entities.
> The inclusion of BJ Kang, who is known as "the most dangerous man on Wall Street," in Putin's sanctions list could potentially impact Binance.US's ability to do business in countries with close ties to the Russian government.
> The list also includes individuals who were perceived as adversaries by former President Donald J. Trump, such as Letitia James, the state attorney general of New York, and Brad Raffensperger, the secretary of state of Georgia. More here.
Michael Lewis's Upcoming Book Reveals Inside Story of FTX Crypto Empire
Renowned financial journalist and author, Michael Lewis, revealed at the Bitcoin 2023 conference that he is nearing completion of his book on Sam Bankman-Fried and the collapse of the FTX crypto empire.
> Lewis shared insights about his interviews with individuals close to Bankman-Fried, including employees, investors, Bahamas officials, and U.S. regulators.
> While the movie rights have already been sold to Apple, Lewis mentioned that his final manuscript is due in a few months.
> Lewis explained how the project originated with an unexpected call from a friend who ran a Wall Street firm in 2021.
> Intrigued by the friend's dilemma about a deal involving shares exchange with a company led by Bankman-Fried, Lewis agreed to spend time with him and provide feedback. Continue here.
Bitcoin and Stock Markets Show Hesitation as Uncertainty Prevails
> The beginning of the week brought a sense of hesitation to both the Bitcoin and stock markets as uncertainty persisted.
> Bitcoin experienced a decline below the $27,000 mark on Monday, with its value currently standing at approximately $26,800 over the past 24 hours.
> In contrast, certain altcoins displayed positive movement on Monday, including Tron's TRX, which saw an 8% increase throughout the day.
This rise was fueled by a rumor circulating on Twitter suggesting that Tron would be recognized as legal tender in Hong Kong starting from June 1.
You are already a Moneycontrol Pro user.