The Latest Crypto News You Might Have Missed July 1-7
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Top of the Latest Crypto News of This Week
Mt. Gox Starts Repayments in Bitcoin and Bitcoin Cash
Summary
Defunct crypto exchange Mt. Gox has started repaying its customers in Bitcoin and Bitcoin Cash, ending a nearly decade-long wait following a major hack in 2014.
Details
On Friday, Mt. Gox, once the worlds leading crypto exchange, announced that it has begun repaying customers, marking the end of a nearly 10-year wait for many users to recover their funds.
The company, which handled over 70% of all Bitcoin transactions in its early years, filed for bankruptcy in 2014 after a hack resulted in the loss of approximately 740,000 Bitcoin.
The announcement has added selling pressure on Bitcoin and the broader crypto market. After Mt. Gox revealed its intention to start repayments in July, Bitcoins price plunged to as low as $53,600, its lowest in five months. This sharp decline led to the liquidation of over $580 million in bullish bets.
Some customers may experience delays of 60-90 days before receiving their payouts.
Exchanges approved by the trustee to process repayments include Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade, a Japanese exchange.
Source: CoinDesk
Top of the Latest Cryptocurrency News on DeFi
ConsenSys Acquires Wallet Guard to Boost MetaMask User Protection
Summary
ConsenSys, the Ethereum development firm behind the MetaMask Wallet, has acquired the Web3 security app Wallet Guard to enhance user protection against hacks and scams.
Details
ConsenSys, the developer behind the widely used MetaMask Wallet, has acquired Wallet Guard, a Web3 security application, to enhance MetaMasks security features.
This acquisition aims to provide MetaMask users with an additional layer of protection against potential hacks and crypto scams.
According to a press release, ConsenSys will utilize Wallet Guards security technology, which offers real-time detection of scams and wallet drainers, to safeguard its MetaMask users. The integration includes Wallet Guards browser extension, enhancing MetaMasks existing security measures.
This acquisition also comes after MetaMasks staking product recently attracted attention from the US Securities and Exchange Commission (SEC). The SEC has sued ConsenSys, alleging that MetaMask offered unregistered securities and operated as an unregistered broker-dealer. In response, a US judge has granted ConsenSys request for an expedited schedule in a lawsuit filed against the regulator.
As part of the acquisition, the Wallet Guard team will join the MetaMask team.
Source: Crypto News
Top of the Latest Cryptocurrency News on Regulations
Türkiye Adopts New Crypto Assets Regulation Bill
Summary
The Türkiye Parliament approved the long-anticipated Bill on Amendments to the Capital Markets Law, establishing new regulations for the crypto industry.
Details
This bill requires crypto asset service providers to obtain permission from the Capital Markets Board (SPK) before they can be established and begin operations.
The SPK is granted the authority to regulate the crypto ecosystem, while the Scientific and Technological Research Council of Türkiye (TÜBITAK) sets criteria for information systems and technological infrastructure. The law also introduces key definitions for terms such as crypto asset, crypto asset service provider, and wallet.
The regulations focus heavily on licensing. Platforms offering crypto services in Türkiye must now secure approval from the SPK, which has the power to enact regulatory measures, make specific or general decisions, and impose sanctions. As listed by the SPK, independent audit firms will conduct financial and information systems audits of crypto asset service providers.
However, the new law does not address the taxation of crypto assets, which will be covered by future legislation.
Additionally, the law stipulates that individuals and officials of entities operating without SPK authorization could face prison sentences of 3 to 5 years and hefty judicial fines.
Service providers found misappropriating funds or assets, including crypto assets, could face imprisonment of 8 to 14 years, substantial fines, and be required to compensate for damages.
Current crypto asset service providers must apply to the SPK within one month. Those who fail to comply must cease operations and initiate liquidation within three months. This regulatory framework aims to enhance transparency and trust in Türkiyes strong cryptocurrency market, one of the largest in the world.
Source: Daily Sabah
EU Enforces Travel Rule for Crypto Exchanges
Summary
The European Union has introduced new regulations requiring crypto exchanges to comply with Travel Rule guidelines, effective December 30, 2024. This move aims to enhance Anti-Money Laundering (AML) and Counter the Financing of Terrorism (CFT) measures across the region.
Details
The European Banking Authority (EBA) announced that crypto service providers and intermediaries within the European Union must adhere to Regulation (EU) 2023/1113, known as the Travel Rule guidelines, starting from December 30, 2024. This regulation mandates that information on transfers of funds and crypto assets be reported, aligning crypto exchanges with stringent AML and CFT measures.
Under these guidelines, crypto asset service providers (CASPs), as defined by the EUs Markets in Crypto-Assets Regulation (MiCA), will be subject to the EUs comprehensive AML/CFT regime. Payment service providers (PSPs) and intermediary PSPs, along with CASPs and their intermediaries, will have two months to declare compliance with the new requirements.
Some key provisions of the Travel Rule include collecting user information for fund or crypto asset transfers, identifying transactions related to service purchases, and detecting linked transfers. Furthermore, crypto service providers and intermediaries must disclose their policies on multi-intermediation and cross-border transfers.
The EBA has acknowledged that while achieving compliance with the EU Travel Rule will impose financial burdens on crypto exchanges and service providers, the long-term benefits are expected to outweigh these costs. The guidelines aim to significantly improve the effectiveness of the fight against money laundering and terrorism financing.
Crypto exchanges and service providers already under the EUs Anti-Money Laundering Directive (AMLD) or a domestic AML/CFT regime will continue to adhere to applicable AML/CFT requirements.
Source: Cointelegraph
Sam Bankman-Frieds Family Involved in a $100 Million Political Scandal
Summary
Sam Bankman-Fried, founder of FTX and its family, is accused of misusing $100 million in company assets for political donations.
Details
Sam SBF Bankman-Fried, the founder of the collapsed crypto exchange FTX, is embroiled in a $100 million financial scandal involving the misuse of company assets to fund political donations.
Emails recently revealed by The Wall Street Journal (WSJ) show that SBFs family played a significant role in managing over $100 million in political contributions. These funds, allegedly derived illicitly from FTX customer funds, were aimed at influencing the 2022 election, leading to multiple legal proceedings.
The emails detail SBFs father, Joe Bankman, advising financial strategies related to political donations. According to the WSJ, Joe Bankman was directly involved in these illicit funding operations. SBFs mother, Barbara Fried, and his brother, Gabriel Bankman-Fried, also allegedly directed funds to various political entities and causes.
Barbara, a co-founder of the super PAC Mind the Gap, allegedly directed funds to progressive groups and initiatives, while Gabriel funneled donations to pandemic prevention efforts.
David Mason, former chairman of the Federal Election Commission, noted that Joe Bankmans involvement could result in direct legal liabilities under campaign finance laws. Mason highlighted strong evidence in the emails suggesting Joe Bankman knew about the illegal straw-donor scheme. Despite this, a spokesperson for Joe Bankman stated that he had no knowledge of any alleged campaign finance violations.
On May 28, former FTX Digital Markets co-CEO Ryan Salame was sentenced to 7.5 years in prison after pleading guilty to felony charges. United States District Court Judge Lewis Kaplan issued the sentence after Salame admitted to conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud. Salames sentencing is part of the ongoing FTX saga, following former executives Caroline Ellison and Nishad Singh, who have also pleaded guilty and await sentencing.
Source: Cointelegraph
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