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Hey, crypto enthusiasts! This is Melega Finance, the world’s leading decentralized ecosystem. Welcome to the latest edition of our weekly cryptocurrency news roundup, where we will discuss the most interesting news from the crypto market from October 15 to October 21, 2023.
It was a rough week for the crypto market, with several negative news stories. LBRY Credits was forced to shut down due to a large loss to the SEC and millions in debt. The Fantom Foundation, a non-profit organization that oversees the Fantom blockchain, was attacked. And Reddit discontinued its blockchain-based community points reward program.
But despite the bad news, the price of Bitcoin rose to as high as $30,171 at one point during the week. It is currently trading at $29,923, up 11.29% over the last 7 days, thanks to optimism surrounding the potential approval of a Bitcoin ETF.
There were a few positive stories as well. For instance, the clients of the defunct FTX crypto exchange might receive a $9 billion shortfall claim settlement by mid-2024. And the SEC has successfully dropped lawsuits against top executives at Ripple.
Alright, so it wasn't all bad news for crypto this week. Let's check out some updates you might have missed!
TOP CRYPTO NEWS RECAP (OCTOBER 15–OCTOBER 21, 2023)
- FTX Clients May Receive $9 Billion Shortfall Claim Settlement by Mid-2024
- The SEC Reveals 2024 Examination Priorities, with Crypto Dealer-Brokers and Transfer Agents Under Target
- Reddit Plans to Discontinue Blockchain-Based ‘Community Points’
- US Halts USD Withdrawals, Instructs Users to Convert USD to Sablecoins
- The SEC Drops Lawsuit Against Ripple Executives Brad Garlinghouse and Chris Larsen
- LBRY Shuts Down Operations
FTX Clients May Receive $9 Billion Shortfall Claim Settlement by Mid-2024
FTX's debtors have reached an agreement that could lead to a $9 billion settlement for FTX clients. The deal involves the Ad Hoc Committee of Non-US Customers, the Unsecured Creditors Committee, and class action plaintiffs. If approved by the bankruptcy court, this settlement will benefit FTX clients and resolve long-standing customer property disputes.
Under the proposed plan, customers will receive over 90% of the distributable value worldwide. Additionally, eligible customers will have the opportunity to settle preference exposure by reducing their claims or accepting cash payments. This offer aims to ensure fairness among clients.
The SEC Reveals 2024 Examination Priorities, With Crypto Dealer-Brokers and Transfer Agents Under Target
The United States Securities and Exchange Commission (SEC) has revealed its examination priorities for fiscal year 2024. The SEC's Division of Examinations is closely monitoring the rapid growth of crypto assets and related investments. They will focus on broker-dealers and advisers introducing new products and innovative practices, as well as transfer agents involved in microcaps and cryptocurrency-related assets.
The examinations will ensure compliance with standards of conduct, especially when advising retail-based and older investors on crypto assets. Additionally, the SEC will review registrants' cybersecurity measures and assess compliance with regulations concerning crypto assets, risk disclosures, and operational resilience.
However, the SEC has yet to provide regulatory clarity for the decentralized asset class, despite engaging in legal disputes with Binance.US and Coinbase.
Reddit Plans to Discontinue Blockchain-Based ‘Community Points’
Reddit will be discontinuing its blockchain-based reward system, Community Points, on November 8th, citing scalability challenges. The program, which was initially launched in 2020, aimed to reward users for positive engagement in specific communities. However, the team found it difficult to scale the program across the platform.
As expected, the decision to discontinue Community Points has been met with criticism from some users, particularly from international users who are currently ineligible for the new Contributor Program. Following the announcement, the MOON token, used on the r/Cryptocurrency subreddit, and other related tokens plunged by over 80%. This prompted some users to accuse the team of rug-pulling the community.
Binance.US Halts USD Withdrawals, Instructs Users to Convert USD to Sablecoins
Cryptocurrency exchange Binance.US has updated its terms of service to remove direct withdrawals in United States dollars.
Users can now only withdraw USD by converting it to stablecoins or other digital assets first. This change comes amid increasing regulatory pressure on the crypto industry and Binance.US has had difficulty maintaining its fiat on-ramps and off-ramps in the past year.
The terms of service update also states that U.S. dollar funds in Binance.US wallets are no longer protected by deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC).
SEC Drops Lawsuit Against Ripple Executives Brad Garlinghouse and Chris Larsen
Ripple's CEO Brad Garlinghouse and Executive Chairman Chris Larsen have been cleared of all charges by the U.S. SEC. The SEC dropped their case with prejudice, marking a significant turn. This is the third victory for Ripple, following a ruling in July 2023 that declared XRP not a security. The SEC's appeal attempt also failed in October.
Interestingly, Brad Garlinghouse called the regulator a "rogue" with a "political agenda." Chris Larsen expressed concern about the lawsuit's origin and motivation. Ripple's business is now 90% international due to regulatory chaos, but it remains committed to responsible innovation in the crypto industry.
LBRY Shuts Down Operations
While Ripple is having a series of victories against the SEC, blockchain publishing platform LBRY Inc. is closing downdue to mounting debts. LBRY lost a legal battle with the SEC over an alleged unregistered security sale, and the court ruled in favor of the SEC. The SEC initially demanded $22 million but later reduced it to $111,614 when LBRY couldn't pay.
LBRY's team, executives, employees, and board members resigned, ending an eight-year journey. However, LBRY's open-sourced and decentralized blockchain will continue as long as miners support it.
NEWS FROM THE MELEGASWAP ECOSYSTEM
CAVEA (CAVEA) Farm & Pool on MelegaSwap
Cavea Project believes in the preservation of artistic content and aims at collecting highly valuable artistic content in the form of a unique, high-quality digital representation (“digital asset”) expressed as a non-fungible token (“NFT”). Cavea Project investors participate in the project by holding CAVEA tokens.
VOC Colonizer Token (VOC) Farm and Pool on MelegaSwap
The VOC Colonizer Token is a community token that aims to revive the history of the VOC (Dutch East India Company) and colonize the crypto space, propelling our wealth to unprecedented heights. The creator of the token grew tired of losing funds on various crypto projects and devised an innovative solution to overcome the challenges faced by many crypto tokens.
XRP GROW (XRPGROW) Farm & Pool on MelegaSwap
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Risk warning: Cryptocurrency investment or trading is subject to high market risk. Hence, you might lose your money in the process. Please do adequate research and plan your investments cautiously. We at MelegaSwap will always make the best efforts to list high-quality and potential coins, but we will not be responsible for your losses.
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