Issue #83

Regulation

1. Binance to pay $4.3B to settle with the DOJ

-- Allegedly failed to register as a money transmitting business and knowingly processed transactions from darknet marketplaces, crypto mixing services, and sanctioned accounts

-- CZ personally on the hook for $200M in penalties, resigns as CEO, and pleads guilty to failing to maintain an effective AML program; potential for prison time after sentencing in Feb '24

-- Richard Teng (originally appointed to oversee Binance's regional markets outside the U.S.) to succeed CZ as CEO

-- As part of the settlement, Binance will exit the US market

2. SEC files a lawsuit against Kraken

-- Allegedly (1) operating as an unregistered broker, clearinghouse & exchange and (2) commingling customer and corporate funds

-- Kraken has stated that the lawsuit has no impact on its products and that it remains committed to its customers

3. Tether freezes 225M USDT following an investigation by the DOJ into a human trafficking syndicate

-- The syndicate is luring victims with romance scams and requesting they send crypto overseas

-- DOJ seized an additional 9M USDT linked to the syndicate

4. Singapore releases 2nd tranche of crypto regulations for crypto service providers

-- Guidance: discourage crypto speculation; allow exchanges to come up with their own criteria for listing tokens

-- Rules will start taking effect in phases from mid-2024

5. Montenegro approves extradition of Do Kwon to either South Korea or the United States for financial crimes

Infrastructure

1. Blur Founder goes live with new L2 called Blast

-- Architecture: optimistic rollup built on Ethereum

-- Value proposition: natively integrating ETH and stablecoin yield

2. Crypto miner Luxor Technologies launching logistics business

-- Helping miners navigate customs regulations and reduce the time required for shipping mining rigs

3. Celsius to focus solely on Bitcoin mining post-bankruptcy/reorganization

4. Bitcoin mining pool F2Pool allegedly censoring transactions from an address subject to US sanctions

-- Controversial because it runs contrary to the ethos of crypto

Finance

1. Crypto exchange Bullish purchases CoinDesk from DCG in an all-cash deal

-- CoinDesk will operate as an independent subsidiary of Bullish

-- An editorial committee chaired by Matt Murray (ex-WSJ) will ensure editorial independence

2. Santander Private Bank introducing BTC/ETH trading to HNW clients with Swiss bank accounts

3. Bittrex Global is winding down operations, with trading ending on Dec 4

-- The closure follows the bankruptcy of Bittrex(.US) and a $24M settlement with the SEC

4. Crypto payments services provider BCB Group's CEO Oliver von Landsberg-Sadie has left the firm

-- Co-Founder Oliver Tonkin has taken over as CEO

5. South Korea to pilot CBDC with 100k citizens in 2024

6. 97-year-old Austrian institution Raiffeisen Bank rolling out crypto trading service for retail customers in 2024

-- Partnered with BitPanda

7. GoldenTree Asset Management Partner Joseph Naggar set to leave the fund

-- Joseph led the push for crypto at the firm

Consumer

1. ENS and Unstoppable Domains enter patent dispute

-- Unstoppable obtained patent #11558344, titled "Resolving Blockchain Domains" (source)

-- Unstoppable extended a Patent Non-Assertion pledge to W3DA members

-- ENS claiming that Unstoppable stole its IP

Security

1. KPMG Canada partners with Chainalysis to provide blockchain monitoring and risk management to its clients

2. Taiwanese trading firm Kronos Research hacked for $25M

3. DEX protocol KyberSwap suffers $47M exploit

-- Vulnerability was due to an issue with the tick interval boundaries on Kyber's liquidity pools

-- Offering a 10% bounty to the hacker

Research

1. A pragmatic way to support zero-knowledge tax disclosures (source)

-- The system consists of 3 services: (1) a tax authority provides tax documents signed with a public key; (2) a Redact & Prove Service enables users to produce a redacted version of the tax documents with a zero-knowledge proof attesting the provenance of the redacted data; (3) a Verify Service enables anyone to verify the proof

2. Gradual verification for smart contracts (source)

-- Supports partial specifications and incremental verification of code by applying static verification where possible and dynamic verification where necessary

3. Private user discovery in anonymity networks (source)

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