In this issue:
Crypto Companies Launch New Products, Expand Partnerships
By Robert A. Musiala Jr.
A major US cryptocurrency exchange recently launched Ink, a layer 2 network built on the Optimism Superchain blockchain. According to a blog post from the crypto exchange, “Ink is focused on the exceptional success of Ethereum and L2s as we move toward our shared goal of making DeFi more accessible than ever and accelerating the migration of assets and coins. chain activities. »
Another major US crypto exchange recently announced two new product initiatives. The first announcement provided details of a new US-based custody solution for all digital assets of North American clients and eligible North American institutions. The custody product will be offered through a US trust company. The crypto exchange also announced that it has established a banking relationship with a major global bank to provide corporate banking services in support of the exchange’s operations in Singapore, Australia and Hong Kong.
In related news, a major crypto trading firm and liquidity provider recently announced that it has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a registered business of crypto assets. According to a press release, the company is “the first crypto liquidity provider to obtain regulatory approvals from the FCA and the Monetary Authority of Singapore (MAS).”
In a latest development, a UK-based fintech company recently announced a partnership with Pyth Network, one of the leading blockchain oracles, under which the fintech company will begin providing pricing data digital assets in Pyth. According to a blog post, Pyth “brings real-world datasets to blockchain ecosystems to secure hundreds of user applications, such as Kamino Finance, Drift Protocol, and Ondo Finance.”
For more information, please see the following links:
Several reports comment on the outlook for crypto in 2025
By Robert A. Musiala Jr.
Several companies have recently released reports containing outlooks and forecasts for the digital asset market in 2025. In one report, a major American financial services company estimated that “2025 has the potential to be the year considered to be the pivotal period where the “chasm has been crossed as digital assets begin to take root and integrate into multiple domains and industries. The report provides “a set of insights” on what the financial services company predicts for 2025, focusing on the outlook for Bitcoin, Ethereum, stablecoins, DeFi and mainstream adoption drivers . Another report from a major digital asset company made 23 specific predictions for crypto in 2025 and provides related commentary. A full list of 2025 Crypto Outlook Reports can be found in the links below.
For more information, please see the following links:
Treasury Issues Final Rule on DeFi Tax Reporting; Cryptocurrency groups file lawsuit
By Robert A. Musiala Jr.
On December 27, the U.S. Department of the Treasury and the IRS issued final regulations regarding reporting requirements for “commercial front-end service providers interacting directly with customers on digital asset transactions, often referred to as “broker-dealers.” Challenge ” “. Treasury press release, “the rules…require broker-dealers – not holders of digital assets – to report the gross proceeds from the sale of their digital assets via a Form 1099.” The press release further states that the rules “ensure that DeFi brokers of digital assets are subject to the same information reporting rules as securities brokers and operators of custody digital asset trading platforms.” According to the press release, “the final regulations do not treat digital protocol operators or protocol software developers as broker-dealers and modify the proposed regulations in a manner that limits burdens on broker-dealers while ensuring that taxpayers and the IRS receive the information they need. »
Reportedly, the Blockchain Association, the Texas Blockchain Council, and the DeFi Education Fund have teamed up to challenge the new rule by filing a lawsuit in Texas federal court. Among other things, the complaint allegedly asserts that the rule violates the Fourth Amendment, alleging that the rule infringes on the privacy rights of participants in DeFi transactions and amounts to an unconstitutional dig at entities that are required to collect and report large quantities of information. Additionally, the complaint alleges (i) that the rule’s vague definitions violate the Fifth Amendment’s due process rights to fair knowledge of the law, (ii) Treasury exceeded its authority in issuing the rule, and ( iii) compliance with the rule would be technologically impossible due to the nature of DeFi and blockchain technology.
For more information, please see the following links:
SEC and CFTC Settle Crypto Enforcement Actions
By Robert A. Musiala Jr.
In late December, the U.S. Securities and Exchange Commission (SEC) announced a cease and desist order and a $123 million fine settling charges against the subsidiary of a major digital assets company. According to an SEC press release, the defendant allegedly “misled investors about the stability of Terra USD (UST), a purported “algorithmic stablecoin” issued by Terraform Labs PTE Ltd. The press release states that the defendant “acted negligently by trading UST in a manner that misled the market into believing that Terraform’s algorithmic mechanism was working to stabilize UST, when in fact the price was stabilized, at least in part, by (the defendant) large purchases of UST, which were instigated by Terraform. According to the press release, the SEC also alleged that the defendant offered and sold securities in unregistered transactions “while acting as a statutory underwriter for certain of its offers and sales of LUNA, a crypto asset issued by Terraform is offered and sold as security.”
In a more recent enforcement action, a major U.S. cryptocurrency exchange has reportedly agreed to pay a $5 million fine to settle charges brought by the states’ Commodity Futures Trading Commission (CFTC). -United States, alleging that the exchange made false and misleading statements about material facts or omissions. important facts related to the proposed Bitcoin futures contracts. The settlement would resolve CFTC charges dating back to June 2022.
Finally, the T3 Financial Crime Unit (T3 FCU) recently announced that it had “frozen more than $100 million in criminal assets worldwide, taking an important step in its fight against financial crime linked to cryptocurrencies”. According to a blog post, the T3 FCU was launched in August 2024 and aims to prevent cybercriminals from using the USDT stablecoin.
For more information, please see the following links:
Cryptojacking and phishing schemes reported; 2024 Piracy Data Released
By John Robertson
According to a recent report, a popular JavaScript bundler written in Rust fell victim to a supply chain attack, affecting two of its npm packages. The report states that the primary goal of the attack appeared to be cryptojacking – the process of installing and running cryptocurrency mining software without authorization. The attack also appeared to collect the victim’s IP addresses, geographic location, and other network details. The development team has since released a new version of the bundler that removes the malicious code.
Separately, it was revealed that a phishing scam targeted Pudgy Penguins NFT users through the use of a major US technology company’s advertising network. The attack allegedly embeds harmful code in ads that scans users’ browsers for Web3 wallets. When such wallets are found, the malicious code would redirect the user to a fake Pudgy Penguins website designed to steal the user’s wallet credentials. The organization responsible for uncovering the scam has since announced that the malicious code appears to have been removed in its latest update.
Three recent reports from Chainalysis, Cyvers, and Peckshield summarize crypto theft in 2024. The three reports indicate that approximately $2.2 billion was stolen in crypto hacks, which Chainalysis estimates is an increase of 21 .07% year-over-year compared to 2023. The reports’ conclusions are as follows:
- Cyvers’ report details an additional $4 billion that was stolen in other crypto scams and frauds, with the majority coming from pig butchery schemes.
- The Chainalysis and Cyvers reports provide summaries of the top hacks in 2024.
- Chainalysis report reveals that hackers affiliated with North Korea accounted for 61% of stolen funds in 2024.
For more information, please see the following links:
(See source.)
