Heat On For KuCoin 🌡️
US charges KuCoin with multi-billion dollar criminal conspiracy. HSBC launches tokenised gold for retailers. Microstrategy stock score $2k. Vitalik pushes for account abstraction, unsure of metaverse.
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What's happening with KuCoin, the crypto exchange?
An indictment by the US Department of Justice (DOJ)
Money laundering charges.
Result? $882 million flowed out of the exchange in 24 hours.
Here's the breakdown
The DOJ says KuCoin skipped out on basic anti-money laundering checks, turning their exchange into a "haven for illicit activity."
The exchange allegedly failed to register with US regulators and onboarded US users illegally.
Over $5 billion in suspicious funds allegedly flowed through KuCoin.
The exchange's founders, Chun Gan and Ke Tang, are accused of masterminding the whole thing. They're currently MIA.
KuCoin also faces heat for operating illegally as a money transmitter and futures merchant.
Is your crypto safe on KuCoin?
So far, it seems KuCoin has enough reserves to handle the withdrawals.
The exchange hasn't mixed customer funds with its own, which is a good sign.
CryptoQuant's Ki Young Ju says:
But, users' funds are safe - Kucoin
Also, one good thing happened: CFTC calls ETH a commodity in its complaint.
The CFTC filed a complaint against the companies that operate KuCoin.
And they called Ether a commodity.
“KuCoin solicited and accepted orders, accepted property to margin, and operated a facility for the trading of futures, swaps, and leveraged, margined, or financed retail transactions involving digital assets that are commodities including bitcoin, ether (ETH), and litecoin,” the CFTC’s lawyers said.
This gives the CFTC the power to oversee trading of these currencies.
But wait, the SEC might have other plans. They hinted that staking tokens like Ether could be considered securities, which fall under their control.
We're in for a regulatory tug-of-war?
Block That Quote 🎙️
Vitalik Buterin, Ethereum Co-founder.
“To me, metaverse is one of those things that are very poorly defined.”
During a recent speech, he expressed skepticism about the current definition, finding it too vague.
Argues that the focus on fancy VR headsets might be missing the mark.
About account abstraction: Buterin sees this as the key to unlocking both security and convenience for blockchain users and developers.
HSBC Launches Tokenised Gold For Retailers
Everyday investors in Hong Kong can buy and sell gold through their phones.
The HSBC Gold Token is available through their online banking and mobile app.
This move leverages HSBC's Orion digital asset platform for tokenisation.
Maggie Ng, general manager and head of wealth and personal banking for Hong Kong at HSBC
“We are proud that HSBC Gold Token, powered by HSBC Orion, is the first retail product in Hong Kong that is based on distributed ledger technology."
In the Numbers 🔢
$1999.70
That's the high MicroStrategy's stock registered on March 27.
MicroStrategy Soars: Smashing records after adding another $623 million in Bitcoin to its holdings. Now controls 1% of the total Bitcoin supply.
Galaxy digital's comeback:
After a rough 2022 with a $1 billion net loss.
2023 reports $296 million net income.
Why the turnaround? crypto market surged. So did Galaxy Digital's AUM - to $10.1 billion.
New Bitcoin ETF Enters the Ring
Hashdex is joining the brawl on Wednesday with their DEFI ETF.
Few months behind the big guys, who already control most of the $25.5 billion in spot Bitcoin ETFs.
Hashdex converted their existing Bitcoin futures ETF into a spot ETF, meaning it holds actual Bitcoin instead of just contracts.
DEFI will invest at least 95% in real Bitcoin, with a tiny bit left over for wiggle room.
Fees? Higher than average at 0.90% a year.
The Surfer 🏄
A Munchables developer exploited the NFT game for $62.8M in Ether, but in a surprising turn, returned all funds without ransom after negotiations. Hack traced back to a Munchables developer ("Werewolves0943").
Coinbase Boosts Base: They're increasing the amount of USDC stored on their own Layer 2 network, Base. a win-win for users - potentially faster trades and potentially lower costs.
Visa token service hits 1 Billion in Asia-Pacific: VST replaces credit card numbers with secure tokens, offering increased security and convenience for consumers. Credited with a $2 billion boost to the Asia-Pacific market in 2023.
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