Issue #115

Regulation

1. EU Parliament approves new sanction violation rules that include measures for freezing crypto assets

-- Directive introduces harsher penalties, making sanctions breaches criminal offenses with potential prison sentences of up to 5 years across all member states

2. Operator of crypto mixer Bitcoin Fog convicted for money laundering

-- Government stated that $78M of the funds entering Bitcoin Fog were from known darknet markets

-- Bitcoin Fog operator Roman Sterlingov faces up to 20 years in prison

3. OKX gets in-principle license approval in Singapore

4. US Copyright Office and USPTO conclude that existing IP laws are sufficient to address NFT infringement concerns

5. Hong Kong lists Bybit as ‘suspicious’ crypto trading platform in latest alert

6. South Africa becomes 1st African country to license crypto exchanges

7. Craig Wright loses court battle over Satoshi Nakamoto identity

-- Judge rules against Wright in UK court, rejecting his claim to be Bitcoin creator Satoshi Nakamoto

8. Dubai builds regulatory clarity for digital assets with new law (source)

-- Treats digital assets as property

Infrastructure

1. Ethereum’s Dencun upgrade released to mainnet

-- Key upgrade: reducing fees and improving data availability for L2s using blobs/proto-danksharding

-- For full list of upgrades, check this out

2. Solana sees uptick in activity fueled by memecoins

-- Daily new addresses hit a record high, surpassing 691k

3. L2 Blast experiences block production halt due to issues related to Ethereum's Dencun upgrade

-- Downtime lasted around 2 hours

4. Crypto wallet Zerion building a L2

-- Subsidizing transaction fees for users

-- Hoping to offset the cost of fee subsidization by driving increased wallet usage and revenue through the network's launch

5. Vitalik Buterin outlines a recovery plan for Ethereum in case of a quantum computing attack

-- As simple as hard-forking the chain (more in-depth explanation here)

6. Blockchain-based IP management platform Story Protocol partners with AI infra provider Ritual

-- Allowing creators to host their AI models using Ritual, register them as IP assets using Story - and maintain control over usage, attribution, and revenue sharing

Finance

1. The London Stock Exchange to accept applications for BTC and ETH exchange-traded notes (ETNs) in Q2

-- ETNs must be physically backed, non-leveraged, and held in cold wallets by custodians compliant with AML laws

-- Retail investors are barred from investing in them

2. BlackRock and Fidelity now command 69% of total trading volume for spot Bitcoin ETFs

3. Coinbase plans to sell $1B in convertible senior notes, maturing in 2030, to institutional investors to repay debt and cover costs

4. Wealth management firm Cetera adds spot Bitcoin ETFs to its platform

-- Oversees $322B in assets under administration and $115B in assets under management, serving over 8k independent financial advisors

5. Major financial institutions participate in blockchain pilot test

-- Pilot involved 15 asset managers, 13 banks, 4 custodians, and 3 exchanges (including Goldman Sachs and BNY Mellon)

-- Showcased real-time settlement for tokenized assets and cash on Canton Network

6. Indian crypto exchange Mudrex becomes first mover in offering US spot Bitcoin ETFs to Indian investors

7. Binance Labs spun out of Binance earlier this year

Consumer

1. Starbucks is discontinuing its NFT program

-- Movings its NFTs from its proprietary marketplace to Nifty Gateway

2. Jack Dorsey's Block begins shipping Bitcoin hardware wallet Bitkey

Security

1. Coinbase Wallet: Blockaid partnership has saved users $75M over 5 months

-- Transaction scanner Blockaid prevented 800k malicious transactions during this period

2. DeFi platform Unizen suffers a $2.1M hack

-- Swiftly offered reimbursements to affected users and initiated negotiations with the hacker for a 20% bounty return

3. SECBIT Labs: 2018 vulnerability in Trust Wallet's iOS app has been affecting users as late as 2023

-- Trust Wallet claimed to have patched the issue in 2018

4. Yield farming protocol Mozaic Finance hacked for $2.4M via private key compromise

Research

1. A framework to build blockchain-based covert communication channels (source)

2. Reverse engineering and backdooring post-quantum accelerators (source)

3. How to successfully carry out a 51% attack on Bitcoin with a quantum miner (source)

-- Context: Bitcoin nodes consider the chain with the highest cumulative proof-of-work to be the valid chain

-- A quantum miner can create a competing chain with fewer blocks, but more cumulative proof-
of-work

-- Likely impossible to execute this attack in forthcoming years, as it requires an extremely fast and fault-tolerant quantum computer

4. Atomicity and abstraction for cross-blockchain interactions (source)

-- A cross-chain messaging protocol built on LayerZero

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