Weekly Crypto News Recap – November 3, 2023

November 3, 2023


SBF lied, denied, and forced a trial — He won’t be shown mercy at sentencing, a former prosecutor writes

DL News Feeds
After less than five hours of deliberations, 12 jurors unanimously found Sam Bankman-Fried (SBF) guilty of seven counts of fraud, money laundering, and conspiracy. SBF will be sentenced next March, and the 31 year old is facing a maximum 110 years in prison. In weighing a sentence, US District Court Judge Lewis Kaplan will consider the amount stolen, the number of victims, the substantial hardship caused, the sophistication of the crime, the fact the offence involved financial institutions, and other potential factors. Ari Redbord, a former federal prosecutor, said SBF "will not likely be sent to prison for life, but he will do significant time."

Celestia Airdrops TIA Token as Network Goes Live, Claims Start of 'Modular Era'

Modular blockchain Celestia has rolled out its mainnet beta following the issuance of its native TIA token to 580,000 users. Modular blockchains are designed to solve scalability issues by using specific channels for speed and execution, unlike monolithic blockchains, which can scale only at the expense of decentralization or security. Celestia also uses data availability sampling (DAS), a way of verifying all data that is available on a blockchain. Celestia presents an alternative data layer allowing scaling solutions to potentially reduce their fees. Notably, Ethereum L2s post data to Ethereum mainnet so the L2s state can be reconstructed from data on mainnet, but posting this data on Ethereum is still quite expensive, and Celestia presents an alternative data layer where data could be posted at a cheaper price point, albeit likely with worse security prospects.

PayPal Faces SEC Subpoena over PYUSD Stablecoin

CryptoCurrency – Finance Magnates
PayPal has recently gone under the scrutiny of the SEC as the Enforcement division issued a subpoena related to its US dollar-pegged stablecoin. This development occurd approximately three months after PayPal introduced its own US dollar-denominated PYUSD stablecoin in early August. PYUSD is issued by Paxos Trust and is backed by a reserve of US dollar deposits, short-term Treasurys, and similar cash equivalents.

SafeMoon Founders Arrested as DOJ Unseals Indictment, SEC Files Charges

The U.S. Department of Justice unsealed an indictment charging SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering. Prosecutors said Karony was arrested in Provo, Utah, and Smith was arrested in Bethlehem, New Hampshire, but Nagy remains at large. The news comes the same day that the SEC filed civil charges against SafeMoon and its executives for a "massive fraudulent scheme" that cost investors billions.


MicroStrategy Buys More Bitcoin as Q3 Loss Widens
Nomic kicks off native Bitcoin bridging to Cosmos with 21 BTC
Bitcoin white paper turns 15 as Satoshi Nakamoto’s legacy lives on
‘I don’t own Bitcoin, but I should’ — Legendary investor Druckenmiller


Starknet Foundation Rewards Early Contributors with STRK Tokens before Trading Unlock
'Elemental Knights' Spinoff Leads New Games Coming to Immutable zkEVM
EigenLayer Launches Voting Contest To Onboard New LSTs


Aragon Association to Dissolve, Distributing $155 Million in ETH to Token Holders
Privacy Technology Firm Nym Plans Early 2024 Rollout of 'Decentralized VPN'
SHIB Devs Launch Name Service in Decentralized Identity Push
Solana gains 80% in a month as Firedancer goes live on testnet
Worldcoin’s World App Hits 1M MAU Six Months After Launch
Pyth Network Unveils Retrospective Airdrop
Near taps Nym for metadata privacy, encryption services
Aragon DAO demands update on $160m treasury as frustration mounts
Tokenized U.S. Treasury Market Grows Nearly 600% to $698M as Crypto's RWA Race Intensifies
Gaming Tokens GALA, Axie Infinity, and ApeCoin Post Huge Gains
PancakeSwap Integrates Bril’s Portfolio Manager to Diversify Liquidity Pools
Avalanche blockchain explorer to shut down as Etherscan fees draw controversy
DeFi Market Recovers From 30-Month Low as Volume Hits Highest Point Since March
Uniswap Foundation moves more than $40M worth of UNI tokens to crypto exchanges
Arbitrum Orbit prepped for mainnet launch
DYDX Token Soars After Becoming a Layer 1 Token for the dYdX Chain
Lido DAO raise concerns over LayerZero unapproved wstETH bridge on Avalanche, BN, Scroll


USDC’s circulating supply falls below 25 billion after Circle curbs minting services for retail customers
Tether issues $610M debt financing to Bitcoin miner Northern Data
Tron Quietly Becomes the Leading Blockchain for Stablecoin Transfers
Retail Investors Can No Longer Mint USDC Directly Through Circle
Aave Floats New Plan To Restore GHO Peg
Tether Reports $3.2B Excess Reserves, but Lags in Reducing Secured Loans
MakerDAO moves $250M from Coinbase to rebuild DAI collateral
Brazil’s USDT adoption soars in 2023, makes up 80% of all crypto transactions
Fed Reserve Official Michael Barr Calls for Stablecoin Regulation
Stablecoin market caps stay steady amid bitcoin upswing


Dune Analytics enables natural language queries with DuneAI
Validation Cloud launches platform for institutional stakers
Coinbase’s Stand With Crypto Advocacy Group Raises $2M In Two Months
WalletConnect restricts service in Russia following OFAC guidance
Bulgarian football club Botev Plovdiv now accepting Bitcoin for tickets and merchandise
Crypto community questions Strike’s reported denial of alleged security breach
Blockchain Startup Etherfuse Rolls Out Tokenized Bonds in Mexico Targeting Retail Investors
Kenya to introduce digital IDs for citizens by year-end
Saudi’s NEOM partners with Animoca Brands for regional Web3 development
Lens Protocol’s V2 Migration To Begin On October 30


Steve Aoki Launches Exclusive Digital Sneakers as NFTs on Stepn’s Move-to-Earn Platform
Elon Musk Calls NFTs ‘Just a URL to the JPEG’
Solana Labs unveils GameShift, a web3 suite for game developers


Argentina Presidential Hopeful Wants to Mine Bitcoin From 'Dead Cow'
Bitcoin Miner Marathon Tests BTC Mining With Methane Gas From Waste Landfill
Bitcoin Miner Core Scientific Hits Key Milestone in Bankruptcy Process
Why a Bitcoin ETF Is Making BTC Miners Nervous
Bitcoin’s mining difficulty adjusts upwards for the fourth consecutive time
Bitcoin price and energy use for mining highly correlated: UN report


FTX Claim Pricing Soars to New Heights Amid Skyrocketing AI Company Valuations
Coinbase Exceeds Analyst Expectations with Q3 Revenue of $674.1 Million
Coinbase suspends staking services in Maryland
Coinbase launches regulated crypto futures services for US retail traders
Deribit experiences substantial capital inflows, the largest since Luna debacle
Bittrex’s US bankruptcy plan cleared by court
Japanese Government Sanctions Crypto Exchange Linked to Hamas
OKX Latest Proof of Reserves Shows Exchange Over-collateralized
CME Emerges as Second-Largest Bitcoin Futures Exchange, Approaches Top Spot
Kraken will share data of 42,000 users with IRS
Thailand’s Kasikorn Bank Buys Majority Stake in Satang Crypto Exchange for $103M
Gemini Seeks Control of $1.6 Billion Grayscale Shares in Lawsuit
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada


Trips Raises $2.5M in Pre-Seed Funding
Protocol Village: Toposware, Specialist in Zero-Knowlege Cryptography, Raises $5M
Modulus Labs Completes $6.3 Million Funding to Integrate Cryptographic Security Into AI


ProShares announces launch of short Ether-linked ETF
GBTC Discount Narrows To 23-Month Low On ETF Conversion Hopes
Team Behind Celsius Bidder NovaWulf Starts New Firm Called Valinor
Crypto VC Investments Continue to Take a Hit, Drop Another 10% MoM
Invesco Galaxy spot Bitcoin ETF joins BlackRock on DTCC site
ETF euphoria pushes crypto funds assets near $38bn to pre-Terra crash levels
Crypto asset manager Valkyrie amends spot Bitcoin ETF filing
Vanguard Has No Plans to Join Asset Management Rivals in Pursuing Bitcoin ETFs: CEO Tim Buckley
A16z eyes $3.4B raise for next venture funds: Axios
VanEck Amends Spot Bitcoin ETF Application, Signals Unique Seeding Approach
WisdomTree plans more digital funds for “blockchain-enabled” app


Block reports $2.43 billion in Bitcoin revenue since July from $63 billion total Cash App inflows
Argentina’s E-Commerce Giant MercadoLibre Reports $21 Million in Customer Crypto Assets
Over half of musicians concerned over audience perception of AI use: Survey
HSBC adds fuel to tokenization fire with gold-focused offering
Twitter is now worth half of the $44B Elon Musk paid for it — Report
Voice Actors Slam 'The Finals' for Using AI Instead of Real People
Elon Musk says posts busted by Community Notes won’t earn revenue share
Elon Musk says X payments will eliminate need for bank account by end of 2024
Google to invest another $2B in AI firm Anthropic: Report
Shutterstock Integrates AI Into Its Library of 700 Million Images


Ripple to power Georgia’s central bank digital currency, the digital lari
Swiss Banks Collaborate on Digital Swiss Franc Bonds with Wholesale CBDC
Visa Successfully Concludes CBDC Pilot Program in Hong Kong with HSBC and Hang Seng Bank
Survey: 65% of Spaniards aren’t interested in using digital euro
Hong Kong advances CBDC pilot, bringing e-HKD trials to phase 2


Abu Dhabi pioneers DLT regulation for DAOs, Web3 innovations
US SEC moves for summary judgment in case against Terraform Labs and Do Kwon
Court dismisses Coin Center’s Tornado Cash lawsuit against US Treasury
US trustee objects to amended disclosure statement in Genesis bankruptcy
UK National Crime Agency forms specialized cryptocurrency team with new hires
Genesis’ New Liquidation Plan Is a Material Swerve, U.S. Government Says
PayPal registered to offer crypto services in the UK, with restrictions
CFTC highlights record number of tip-offs stemming from the crypto industry
SEC should submit its crypto custody rule to Congress, says GAO, increasing chances it could be neutralized
Spain Brings Forward MiCA Crypto Rules by Six Months After EU Pressure
Do Kwon's Terraform Labs Seeks Early Court Rejection of U.S. SEC Case
White House issues executive order on AI risk management
G7 countries to launch AI code of conduct: Report
Singapore plans joint crypto pilots with Japan, Switzerland and UK
UK Clarifies FCA’s Incoming Role in Regulating Stablecoins
El Salvador’s Pro-Bitcoin President Registers for Re-election in 2024
Ripple CEO criticizes former SEC Chair Jay Clayton’s comments
Taiwan introduces bill aiming to create regulatory framework for crypto
SEC Commissioner Hester Peirce Challenges SEC’s Actions in LBRY Case
Riot’s fight with activists over ‘pollution factory’ threatens Bitcoin mining gold rush
Thousands of Coinbase users sign up as potential amicus curiae in legal fight with SEC


U.S. Authorities Seize $54 Million Worth of Crypto from a Drug Ring Leader
Report: Lazarus Group Deploys New ‘Kandykorn’ Malware in Crypto Exchange Attack
Sam Bankman-Fried on Verge of Tears as His Lawyer Concludes Defense
DCG Hires Former Trump Impeachment Counsel in Defense Against NYAG Civil Lawsuit
Taiwanese authorities seize $320M in country’s largest crypto laundering scheme
Frax Finance regains control over domains after potential security breach, investigation underway
Taiwan Police Bust $320 Million Crypto Money Laundering Racket
Closing Arguments to Begin Tomorrow in SBF Trial
October sees a comparative lull in crypto crime with losses of $32.2M: CertiK
Daniel Shin Blames Terraform Collapse on Do Kwon's Management: Report
Telegram trading tool Unibot suffers exploit
Bankman-Fried concedes that Alameda enjoyed ‘special privileges’ with FTX
Crypto Exchange Linked to 3AC Founders Drops Lawsuit Against Mike Dudas
Fake Wallet APP Downloads and Malicious Backdoors are Leading Causes of Crypto Loss: Bitrace
Crypto thief steals $4.4M in a day as toll rises from LastPass breach
Russia’s FSB Charges Man with ‘High Treason’ for ‘Donating Crypto to Ukraine’
Wall Street Journal corrects article misciting Hamas’ crypto terrorism funding data
LIVE: Sam Bankman-Fried Tells Jurors: I Made 'Mistakes' at FTX, and 'a Lot of People Got Hurt'

Sign up to conveniently receive GSR crypto content in your inbox.

View Weekly Crypto News PDF

This material is provided by GSR (the “Firm”) solely for informational purposes, is intended only for sophisticated, institutional investors and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to enter into or conclude any transaction (whether on the terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal.  The Firm is not and does not act as an advisor or fiduciary in providing this material.

This material is not a research report, and not subject to any of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with the interests of any counterparty of the Firm. The Firm trades instruments discussed in this material for its own account, may trade contrary to the views expressed in this material, and may have positions in other related instruments. 

Information contained herein is based on sources considered to be reliable, but is not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made by the author(s) as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. The Firm is not liable whatsoever for any direct or consequential loss arising from the use of this material. Copyright of this material belongs to GSR. Neither this material nor any copy thereof may be taken, reproduced or redistributed, directly or indirectly, without prior written permission of GSR.