Breaking: Sullivan & Cromwell Heads To Become Binance’s Watchdog

https://coinedition.com/breaking-sullivan-cromwell-heads-to-become-binances-watchdog/

  • Reports state that Sullivan & Cromwell will most likely be appointed Binance’s independent monitor.
  • The law firm’s partner and former federal prosecutor, Sharon Cohen Levin, is poised to lead the monitoring team.
  • The team will scrutinize Binance’s compliance with its plea agreement and cross-examine its financial records.

According to the latest reports, the American multinational law firm Sullivan & Cromwell is expected to be appointed Binance’s independent monitor after the crypto exchange’s $4.3 billion settlement with the U.S. government. Sources familiar with the matter reported that Sharon Cohen Levin, the law firm’s partner and former federal prosecutor, would likely lead the firm’s watchdog team.

Though the Department of Justice (DoJ) hasn’t signed off on Sullivan & Cromwell’s appointment, reports stated that the department is most likely to approve it. However, the department, the law firm, and the exchange remain silent on the matter, declining to comment.

The current development is part of a larger saga involving Binance and its former CEO, Changpeng Zhao. Last year, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging 13 charges, including the sale of unregistered securities. After a long battle, Binance pleaded guilty, and Zhao resigned, agreeing to a $4.3 billion settlement.

If Sullivan & Cromwell is appointed as the monitor of Binance, they would be in charge of scrutinizing and ensuring the exchange’s compliance with its plea agreement. The firm would also cross-examine the exchange’s failure in anti-money laundering.

In addition, the monitoring team would be given the authority to keep Binance’s financial records and other documents. Following reviews and assessments of these records, the firm would send periodic reports to the government.

The law company’s previous involvement with the once-prominent, now-bankrupt FTX adds more intrigue to the case. Levin was also a prominent figure who previously dealt with the anti-money laundering and asset forfeiture department at the Manhattan US Attorney’s Office.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

SEC Meetings Fuel Speculation on Imminent Spot Bitcoin ETF Approval

https://coinedition.com/sec-meetings-fuel-speculation-on-imminent-spot-bitcoin-etf-approval/

  • Bloomberg ETF analyst James Seyffart predicts official approvals for a spot Bitcoin ETF between January 8 and 10.
  • The SEC is in discussions with major stock exchanges, including the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange.
  • FOX Business reporter Eleanor Terrett’s report hints at the SEC signaling to issuers about possible approvals.

In a recent tweet, Bloomberg ETF analyst James Seyffart shared insights aligning with FOX Business reporter Eleanor Terrett’s reporting, hinting at the SEC signaling to issuers about potential approvals. While official approvals are anticipated between January 8 and 10, the analyst believes the gap between approval orders and actual trading will be measured in days, not weeks.

Following a flurry of Bitcoin ETF-related news, Eleanor Terrett’s report on FOXBusiness suggests that a breakthrough might be on the horizon. The Securities and Exchange Commission (SEC) has been having meetings with important stock exchanges like the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange.

This has raised hopes that the approval for a spot Bitcoin exchange-traded fund, for which people have been waiting for a long time, might happen soon.

SEC staff attorneys from the Division of Trading and Markets are engaging in discussions with officials from major exchanges, fueling expectations of a positive outcome, according to FOX Business. While the final decision remains pending, sources close to the proceedings indicate that the SEC might begin notifying issuers of approval as early as Friday, with trading potentially commencing in the following week.

Analysts and issuers express confidence in a favorable decision from the SEC, with expectations of an announcement on or before January 10, as key meetings continue to shape the regulatory landscape.

The positive momentum for a spot Bitcoin ETF approval counters recent predictions made by Matrixport, suggesting that the SEC could reject all spot ETF applications in January. The divergent perspectives contribute to the uncertainty surrounding the regulatory fate of Bitcoin ETFs.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

How Wall Street’s Lack of Knowledge Could Fuel a BTC Rally

https://coinedition.com/how-wall-streets-lack-of-knowledge-could-fuel-a-btc-rally/

  • The CEO of Custodia Bank predicted in an X post that Bitcoin may take down a global systemically important bank (G-SIB) someday.
  • A tech entrepreneur stated that a rise in the price of BTC to $100K will cause a wave of panic buying from the traditional finance sector.
  • BTC was worth about $37,408.58 after its price managed a slight 0.28% increase in the past 24 hours.

The founder and CEO of Custodia Bank, Caitlin Long, reiterated her belief that Bitcoin (BTC) will take down a global systemically important bank (G-SIB) someday. In an X post published yesterday, Long shared that her prediction is based on the fact that Wall Street views BTC as just another asset class to which it will apply its traditional finance risk models and games.

Included in her post was another X post from a tech entrepreneur by the name of Mike Alfred. Alfred shared that he has had dozens of conversations with analysts, bankers, traders, and portfolio managers over the past few weeks. An intriguing insight that he has uncovered through these discussions is that none of these Wall Street finance gurus understand Bitcoin.

In his post, he revealed that although some people on Wall Street trade BTC occasionally and others note its 100+% rally year-to-date, they still view it as a speculative asset. Nevertheless, there is no one on Wall Street who possesses an in-depth knowledge of the leading cryptocurrency.

Alfred concluded his post by predicting that a lot of people on Wall Street will be shocked when BTC soars above $100K. This could then lead to a wave of panic buying from the traditional finance sector, which will launch BTC’s price even higher.

Despite the bullish prediction for BTC, the cryptocurrency’s dominance in the market dropped 0.02% over the past 24 hours. Notably, this decrease in dominance was not the result of a drop in BTC’s price but rather BTC being outperformed by the rest of the market throughout the past day of trading. 

CoinMarketCap data indicated that BTC was up 0.28% at press time. Subsequently, the cryptocurrency was trading hands at $37,408.58. This 24-hour gain also boosted BTC’s weekly performance to just under 3%.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Fantom Foundation Drainer Swaps 4,390 ETH for 8M DAI: PeckShield

https://coinedition.com/fantom-foundation-drainer-swaps-4390-eth-for-8m-dai-peckshield/

  • PeckShield reports that the Fantom Foundation drainer swapped 4,390 ETH for 8M DAI.
  • A Fantom Foundation employee fell victim to a phishing attack by the drainer.
  • The drainer stole about $7M from Fantom Foundation-labeled wallets on October 17.

PeckShield, the renowned blockchain security firm, shared on X that the Fantom Foundation drainer has swapped about 4,390 ETH for approximately 8 million DAI. The blockchain security firm noted that the drainer stole about $7 million in cryptos from Fantom Foundation-labeled wallets on October 17.

Per multiple reports, an employee of the Fantom Foundation fell victim to a phishing attack and lost approximately $7 million to a drainer. The employee reportedly received an email that appeared to be from a colleague requesting him to update his MetaMask wallet. Unknown to the victim, the link contained in the email led to a fake website that mimicked the official MetaMask website.

According to reports, The Fantom Foundation employee entered critical details on the fake website, including his seed phrase, a 12-word password that grants access to the wallet. That enabled the drainer to take control of his funds and drain them. Reportedly, the drainer stole 139,000 FTM tokens, worth about $3.5 million, and 2,000 ETH, equivalent to $3.8 million, from the wallet.

Following a report by the victim, the Fantom Foundation confirmed the incident, noting that approximately $550,000 of the Foundation’s funds were also affected. However, the organization assured its community of the platform’s security, as over 99% of its funds were unaffected by the drain.

The Foundation also clarified that even though some of the affected wallets were labeled “Foundation Wallets,” they were no longer utilized by the organization and had been reassigned to a Fantom employee.

One week after the incident, the Fantom Foundation announced the official launch of the Sonic Testnet. It included in the announcement that the new product aims to improve Smart Contract execution on the DeFi platform.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

U.S Judge Reviews Terra’s Digital Assets Status as Securities

https://coinedition.com/u-s-judge-reviews-terras-digital-assets-status-as-securities/

  • U.S. judge deliberates classification of collapsed Terraform Labs’ digital assets as securities in SEC lawsuit.
  • Do Kwon and Terraform Labs seek dismissal of SEC case, arguing digital assets don’t meet securities criteria.
  • Judge questions if Terraform Labs’ Anchor protocol should be considered a security.

As per the latest reports, a U.S. judge deliberated over the classification of digital assets of the collapsed Terraform Labs as securities. The new revelation is at the heart of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Terraform Labs and its founder, Do Kwon.

The reports reveal that Do Kwon and Terraform Labs requested the dismissal of the U.S. SEC’s case, which accuses them of failing to “provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD.” Their plea was made to U.S. District Judge Jed Rakoff in Manhattan.

Judge Rakoff expressed doubts during the hearing, regarding the classification of Terraform Labs’ offering of the Anchor protocol. He questioned whether this offering, which guaranteed returns of up to 20% on TerraUSD deposits, should be deemed as a security.

He stated It is something you created, that only people who had taken this first step could take advantage of. I don’t see why that’s not a securities contract at that point.

Terraform Labs and Kwon are contending that the case should be dismissed on the grounds that their digital assets do not meet the criteria for securities, and they argue that the SEC does not have jurisdiction over the industry. Judge Rakoff announced that he will deliver his ruling on the motion to dismiss the case by July 14, 2023.

Last year, Terra’s stablecoin Terra USD (UST) experienced a depeg from the U.S., resulting in volatility for the stablecoin. A disastrous series of events unfolded on May 7, causing its value to plummet to nearly zero within a matter of days. This incident also triggered a collapse in the value of the LUNA token. Currently, Terraform Labs founder Do Kwon is awaiting imprisonment in both the US and South Korea. However, he is currently out on bail in Montenegro, having secured approval from the Montenegro Court for his bail proposal.

Balaji Closes $1 Million BTC Bet, Sounds the Alarm on US Economy

https://coinedition.com/balaji-closes-1-million-btc-bet-sounds-the-alarm-on-us-economy/

  • Balaji Srinivasan has settled his infamous $1 million Bitcoin bet ahead of time.
  • The former Coinbase CTO says he burned a million to highlight the trillions printed by the US Federal Reserve.
  • Balaji has sounded the alarm on the US economy and warned against a potential fiat crisis.

Famed crypto investor Balaji Srinivasan has closed out his infamous $1 million Bitcoin bet and settled it just halfway through. The former Coinbase CTO gave half a million dollars to James Medlock as promised while donating $500,000 to a BTC research group called Chaincode Labs to support the development of Bitcoin.

In addition to the contribution to Chaincode Labs, Srinivasan donated another $500,000 to give charity in order to help people living in extreme poverty. He took to Twitter recently to provide on-chain proof of all of the above-mentioned transactions. Balaji also issued a rather grave warning leading with, “I just burned a million to tell you they’re printing trillions.”

According to Balaji Srinivasan, the current state of the US economy is a matter of great concern. He warned that things could unwind really fast if the authorities don’t take corrective action. Balaji highlighted the fact that many things in the economy are breaking down simultaneously. This includes the real estate and banking sectors. Balaji revealed that he aims to bring attention to the deteriorating economy since the authorities in charge will not tell the truth to the public.

I spent my own money to send a provably costly signal that there’s something wrong with the economy, and that it’s not going to be a ‘soft landing’ like Powell promises — but something much worse.

To bolster his argument, Balaji cited the current debt ceiling where the markets are estimating a record-high probability of default. He also highlighted the banking crisis where three of the four largest bank failures have taken place over the past two months. Srinivasan also cited a report from Morgan Stanley that predicted a commercial real estate crisis around the corner.

A Glitch on Bitrue Exchange Liquidates All XRP Long Positions

https://coinedition.com/a-glitch-on-bitrue-exchange-liquidates-all-xrp-long-positions/

  • XRP price on Bitrue Exchange plummeted to $0.001 and immediately rebounded.
  • The sharp price drop wiped out virtually all active XRP long positions.
  • Several customers on the platform have demanded an explanation from the Exchange

A glitch on the Bitrue Exchange has led to the liquidation of almost all active XRP long positions held by customers. One customer’s tweet indicated the XRP price on Bitrue Exchange plummeted to $0.001 and immediately rebounded. The sharp price drop wiped out virtually all active XRP long positions.

Several customers on the platform have called for the Bitrue team to investigate the situation and provide a proper explanation. The event reignited some negative sentiments, raising issues around the trust that capital users have in the exchange. One customer decried the recent development and stated his resentment since hackers exploited the platform multiple times.

Bitrue exchange is yet to respond to the complaints or make any statement regarding the glitch, at least on Twitter, as of the time of this report. Bitrue’s latest tweet focused on a review asking users for their thesis regarding the next bull run.

The price of XRP as of the time of writing is $0.471. Comparing this with the bottom price of $0.001 reported during the glitch could have significant implications for traders. One of Bitrue’s customers shared an image of an automated message received from the exchange after liquidating his XRP position.

According to the message, his position was closed because his balance was lower than the maintenance margin required to hold the XRP-USD position. He joined other customers to demand an explanation and a viable solution.

Bitrue lost about $23 million on April 14, 2023, after its hot wallet was hacked. The exchange promised to fully compensate customers affected by the hack as a part of the solution in the aftermath of the exploit. However as mentioned earlier, there has been no response yet by the exchange on the latest complaints by users who may be expecting a similar solution, knowing fully well that the glitch is no fault of theirs.

SXP’s Price May Breakout to Set a New ATH in the Coming Week

https://coinedition.com/sxps-price-may-breakout-to-set-a-new-ath-in-the-coming-week/

  • The price of Solar (SXP) has dropped more than 4% over the last 24 hours.
  • A bearish chart pattern present on SXP’s daily chart suggests that its price will continue to drop.
  • SXP’s price breaking above the chart pattern may result in a rally to a new ATH.

The price of Solar (SXP) has fallen 4.92% over the last 24 hours according to CoinMarketCap. As a result, the altcoin’s price stands at $0.574 at press time. SXP also weakened against the crypto market leaders Bitcoin (BTC) and Ethereum (ETH) over the last 24 hours as well. Currently, SXP is down 2.61% against BTC and 1% against ETH.

Daily chart for SXP/USDT (Source: TradingView)

There is currently a bearish descending triangle chart pattern present on SXP’s daily chart as the altcoin printed lower highs over the last 2 weeks. At press time, the crypto’s price is trading at the apex of the chart pattern, which suggests that it may breakout soon. In addition, the crypto price is also trading close to its 24-hour low of $0.5703.

Technical indicators on SXP’s daily chart suggest that this breakout will be towards the downside, as the daily RSI indicator is flagging bearish and the 9-day EMA line is looking to cross bearishly below the 20-day EMA line at press time. Should the chart pattern be validated, SXP’s price will drop to the next key support level at $0.4716 in the next 24 hours.

On the other hand, if SXP’s price is able to break above the chart pattern within the next 24 hours then the altcoin’s price will look to rise to $0.7296 in the coming days. A break above this level will give SXP’s price a clear path towards its all-time high at around $0.941. SXP’s price breaking above $0.941 will likely result in a rally for the crypto’s price.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.