Hi, everyone! It’s Friday, October 20th, and thank you for opening this week’s Weekly Blocks! 🙌🏻
We have some exciting news for you this week, starting with one from our team! 👇🏻
EXCITING ANNOUNCEMENT!
Weekly Blocks is about to undergo an exciting redesign to provide you with even more value-packed content. To make this transformation possible, we’ll be taking a short break for the next couple of weeks.
Your input is invaluable to us as we revamp our newsletter. We’d love to hear your thoughts on what you enjoy most about Weekly Blocks and what you’d like to see more or less of in the future.
Please send your feedback to [email protected]; we’ll be eagerly awaiting your responses over the coming weeks. Together, we can make Weekly Blocks better than ever!
Thank you for your continued support.
Now let’s get you updated with all the important updates!
Enjoy! ☕️
A QUICK BRIEF 💭
🧑🏼⚖️ The SBF Trial Week 3
🟠 Reddit To Sunset Its Blockchain-Based Community Points Program
🟢 The BNB Chain Ecosystem Launched Greenfield’s Mainnet.
[THE BLOCK WITH THE TOP HEADLINES OF THE WEEK]
Your Weekly News Roundup 🗞️
🧑🏼⚖️ The SBF Trial Week 3
Welcome to the week 3 of Sam Bankman-Fried’s trial! It’s only getting more interesting by day! 👀
During the 8th day of the SBF trial, Zac Prince, former CEO of BlockFi, discussed the lending risks associated with Alameda. The defense attempted to use his testimony to cast doubt on whether Alameda’s lenders, such as BlockFi, bore responsibility for their imprudent lending practices, but their efforts were ultimately unsuccessful.
EXTRA: Day 8 covered by Carly from OPJ, Laura from UnChained, and live updates by Blockworks.
During the 9th day of the SBF Trial, FTX’s head of engineering, Nishad Singh, returned to provide further insights into the alleged financial mismanagement. Singh also shed light on the former CEO, Sam Bankman-Fried’s assertive management style and apparent lack of concern for the company’s growing debt.
EXTRA: Day 9 covered by Carly from OPJ, Laura from UnChained, and live updates by Blockworks.
On the 10th day of the SBF Trial, the defense sought to challenge the reliability of former FTX head engineer Nishad Singh, who had testified against former FTX CEO Sam Bankman-Fried on Monday. Simultaneously, FBI Agent Richard Busick revealed Bankman-Fried’s associations with prominent politicians.
EXTRA: Day 10 covered by Carly from OPJ, Laura from UnChained, and live updates by Blockworks.
During the 11th day of the SBF Trial, a combination of financial experts and technical witnesses provided testimony, with notable insights shared by accounting professor Peter Easton.
His analysis unveiled a substantial disparity between FTX’s liabilities and assets. Nevertheless, the day was not devoid of controversy, as the judge raised concerns about the relevance of certain witnesses.
EXTRA: Day 11 covered by Carly from OPJ, Laura from UnChained, and live updates by Blockworks.
On the twelfth day of the SBF Trial, ex-FTX General Counsel Can Sun provided testimony concerning a $7 billion shortfall in customer funds. Sun, the individual responsible for formulating FTX’s terms of service, conveyed his astonishment at the deficit and disclosed that Sam Bankman-Fried had sought legal justifications from him.
During a meeting with Bankman-Fried and others, Sun’s testimony revealed that FTX didn’t have enough funds to cover customer withdrawals.
EXTRA: Day 12 covered by Laura from UnChained, and live updates by Blockworks
❌ Binance Puts a Pause on New User Registrations in the UK
Binance has recently made the decision to halt the onboarding of new users from the United Kingdom. 🇬🇧
This action was taken in response to the Financial Conduct Authority (FCA) of the UK imposing stringent legal requirements, which, in turn, led to the prohibition of its partner, Rebuildingsociety.com Ltd (REBS), from conducting advertising promotions related to Binance’s products and services.
🧑🏼⚖️ SEC To Dismiss Charges Against Ripple’s Garlinghouse and Larsen
The U.S. Securities and Exchange Commission (SEC) has dropped all charges against Ripple’s executives, CEO Brad Garlinghouse and co-founder Chris Larsen.
The court appearance for both individuals was scheduled for April, and they were confronting charges of aiding and abetting securities law violations linked to the sale of Ripple’s XRP. Notably, Ripple Labs, a named defendant in the lawsuit, was not included in the upcoming spring jury trial.
This development follows the SEC’s recent denial of its request for an interlocutory appeal, and Judge Analisa Torres, presiding over the case, also rejected the regulatory agency’s plea for a trial delay.
🇪🇺 European Central Bank Takes Digital Euro Project to ‘Preparation’ Stage
In a recently released notification, the governing council of the European Central Bank (ECB) has disclosed its intent to initiate the “preparation phase” for the digital euro project after a comprehensive two-year investigation. 🪙
This upcoming preparation phase, commencing in November, is set to extend over a span of two years, during which the ECB will refine the rulebook for the digital euro, identify providers for the development of a Central Bank Digital Currency (CBDC) platform, and carry out additional testing.
⚖️ CFTC Initiates Legal Action Against Former CEO of Defunct Crypto Lender Voyager
The U.S. Commodity Futures Trading Commission (CFTC) has purportedly launched a legal case against Stephen Ehrlich, the former CEO of Voyager Digital Ltd.
The lawsuit contends that Ehrlich oversaw an “unregistered commodity pool” and engaged in “fraudulent solicitation” on the platform. More specifically, the CFTC has accused the company of enticing customers with promises of up to 12% returns on specific crypto assets and disseminating misleading information regarding the platform’s security.
🇸🇬 Upbit’s Singapore Branch Gains Preliminary Approval for Digital Asset License
The Singapore-based subsidiary of South Korean cryptocurrency exchange Upbit has received initial approval from the Monetary Authority of Singapore.
This in-principle approval for a Major Payment Institution license granted to Upbit Singapore Pte. Ltd. will enable it to maintain its essential services as it awaits the issuance of the complete license.
🇪🇺EU Officially Embraces DAC8 Crypto Tax Reporting Regulation
In a significant development, the Council of the European Union has officially endorsed the eighth version of the Directive on Administrative Cooperation (DAC8).
This directive pertains to cryptocurrency tax reporting, enabling tax authorities to exchange information about individuals’ cryptocurrency assets.
The next step involves the document’s publication in the EU’s Official Journal, with it becoming effective 20 days after that.
🇦🇺 Australia Unveils Plan to Regulate Crypto Exchanges Within Current Legal Framework
In a recently published consultation paper, the Australian Treasury has revealed its intentions to introduce draft legislation addressing licensing and custody regulations for cryptocurrency service providers by 2024.
This forthcoming legislation is set to bolster Australia’s commitment to offering clear guidelines and safeguarding customers. Under the proposed legislation, platforms holding a specified asset threshold – AU$1,500 ($948) for an individual or AU$5 million ($3.2 million) in total – will be required to acquire an Australian Financial Services Licence.
ESPRESSO-SIZED NEWS ☕️
📉 On Tuesday, the Fantom Foundation officially verified that a limited number of its wallets had experienced a security breach, resulting in losses estimated at around $550,000. Learn more.
🥶 Cointelegraph, a cryptocurrency media organization, publicly apologized for its recent inaccurate reporting regarding the approval of a Spot Bitcoin ETF. Learn more.
💸 New York Attorney General Letitia James has sued Gemini Trust, Genesis Global Capital, and Digital Currency Group, alleging fraud that led to losses of over $1 billion for more than 230,000 investors, including 29,000 New Yorkers. Learn more.
[THE BLOCK WITH NFT & DEFI UPDATES]
Stay Informed About the Latest NFT and DeFi News 🗞️
🦍 Animoca Brands’ Forj Launches ApeCoin Accelerator
Animoca Brands’ NFT creators platform, Forj, has unveiled the Ape Accelerator, a community-driven accelerator and launchpad, financed by the ApeCoin DAO.
The initiative was initiated after the ApeCoin community proposal (AIP-209) received approval, with Forj assigned the responsibility of constructing the accelerator.
🟠 Reddit To Sunset Its Blockchain-Based Community Points Program
Reddit has announced the discontinuation of its blockchain-based Community Points program, originally launched in May 2020 on the Ethereum blockchain to reward positive engagement within specific subreddits.
While the platform saw potential in this initiative, it has decided to sunset the program, citing resource challenges and a complex regulatory landscape. Although no specific regulation was mentioned as a cause for concern, the effort required to sustain the program, coupled with regulatory uncertainties, made it unsustainable.
Reddit highlighted the infeasibility and high costs of transitioning all users to the Ethereum network and expressed a commitment to exploring decentralized, secure, and scalable alternatives.
👗 Macy’s Steps Into the Metaverse With New Digital Fashion Platform
On Wednesday, Macy’s unveiled its innovative digital fashion platform, Mstylelab, marking its initial venture into the metaverse.
Macy’s, via Mstylelab, aspires to empower users by offering a secure environment that fosters exploration, self-expression, and increased connectivity. This experience is crafted in partnership with Journee, an expert in curating immersive digital spaces, including Mstylelab.
ESPRESSO-SIZED NFT NEWS ☕️
💭 Yuga Labs CEO addresses community feedback and charts future direction. Learn more.
🏎️ Ferrari has begun accepting cryptocurrency payments for its luxury sports vehicles in the United States, with plans to expand in Europe by Q1 next year. Learn more.
🚀 BEANZ Stickers, created by the masterminds behind Azuki, Chiru Labs, are enjoying remarkable success within the Asian messaging platform LINE. Learn more.
WEEKLY DOSE OF DEFI NEWS
🔵 ZkLend Successfully Deploys Mainnet on Starknet
In a significant development, Starknet’s premier decentralized money market, ZkLend, has achieved a successful mainnet launch. Notably, ZkLend has eliminated all supply and borrow restrictions for the six assets it supports.
This announcement comes on the heels of a notable surge in activity on Starknet, which has recently risen to become the second-highest Layer 2 network in terms of transaction throughput.
Before its mainnet launch, ZkLend was already the fourth-largest protocol on Starknet, boasting a Total Value Locked (TVL) of $4.5 million.
🟢 The BNB Chain Ecosystem Launched Greenfield’s Mainnet
BNB Chain, the community-driven blockchain ecosystem featuring the world’s largest smart contract blockchain, has officially launched the Greenfield Mainnet.
Greenfield is an innovative decentralized data storage network connected to BNB Smart Chain (BSC), transforming user data interactions with user rights management, bucket creation, and file deletion.
BNB Greenfield operates as a storage-focused blockchain, achieving high-speed data transfer with robust access control and cross-chain programmability. Users can create data marketplaces, allowing for data monetization and exchange.
🦄 Uniswap Introduces Controversial Fees for Select Tokens in Bid for Sustainability
In a recent announcement, Uniswap Labs CEO, Hayden Adams, revealed that the DeFi protocol Uniswap will implement a 0.15% swap fee on specific tokens, effective October 17.
Tokens subject to this fee include ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD, but it solely applies when using Uniswap Labs’ front-end interfaces and is separate from the Uniswap Protocol fee governed by UNI tokens. This move is aimed at enhancing sustainability and transparency while excluding certain token pairs from fees.
Nonetheless, this announcement has provoked a contentious response within the community. Notably, Gabriel Shapiro, the general counsel at Delphi Labs, criticized the decision, arguing that it creates misaligned incentives between UNI token holders and Uniswap Labs shareholders.”
ESPRESSO-SIZED DEFI NEWS ☕️
🗡️ Hope Lend, a DeFi platform launched not long ago, experienced a security breach, resulting in a loss of 526 ETH and a complete reduction of its TVL. Learn more.
🔝 Manta Pacific is reportedly in the process of shifting its software from Optimism’s OP Stack by Caldera to Polygon’s Chain Development Kit. Learn more.
📜 The Layer 2 scaling solution Scroll, a novel zero-knowledge Ethereum Virtual Machine (zkEVM) compatible protocol, has officially announced its Mainnet launch. Learn more.
Thank you for reading and enjoy your weekend!
Want more insight and love push notifications? Join our Telegram channel ByBlock Insider.
Do you know someone who would enjoy “Weekly Blocks”? Please share it with them. ❤️
Not financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or make other financial decisions. Always do your own research.