🔴 US Clamps Down on Crypto | This Week in Crypto – Aug 7, 2023
The founder of HEX faces fraud charges, Binance is still doing business in China and copy trading: who’s doing it? These stories and more, this week in crypto.
SEC Charges HEX Founder With Fraud
The US SEC has charged HEX and PulseChain founder Richard Heart with defrauding investors of millions through the illegal sale of unregistered crypto securities. The SEC also claims he misappropriated $12 million for luxury goods like a Rolex, McLaren, Ferrari, and a $4 million black diamond. HEX’s market cap plunged by $500 million in the two days following the news.
WSJ: Binance Does Business in China
Investigative journalists at The Wall Street Journal have revealed that Binance conducts most of its business from China, despite the country’s crypto ban. In May, the exchange recorded over $90 billion in spot and futures trading volume from China, with a total trading volume of over $670 billion. China tops the list of Binance’s top four markets in May, which includes South Korea, Turkey, and Vietnam.
SEC: Coinbase to Halt Altcoin Trading
Coinbase beat second-quarter revenue expectations due to increased interest income, and the firm remains optimistic about winning its legal battle with the SEC. The agency accused Coinbase of trading unregulated crypto securities, and while the SEC denies making any such formal request, Coinbase claims it was asked to halt trading in everything except Bitcoin. CEO Brian Armstrong stated that complying would mean the end of the US crypto industry, leading Coinbase to choose court resolution instead.
Revolut Shuts Down US Crypto Operations
Major fintech neobank, Revolut will halt its US crypto operations from September 2 due to regulatory concerns in the United States. Complete access will be disabled by October 3, preventing US customers from buying crypto on the platform. Revolut still aims to explore alternative ways to offer crypto products in the future.
Curve Hack Raises DeFi Contagion Risk
Hackers stole over $61 million from Curve Finance’s token pools, impacting the decentralized finance ecosystem with broader contagion risks for DeFi protocols. The attack targeted stable pools using certain versions of the Vyper programming language. The crypto community has been studying the exploits to determine whether it can impact other projects in the future.
Australia’s Financial Regulator Sues eToro
Australia’s financial regulator sued leading trading platform, eToro over its contract-for-difference product, alleging it to be harmful for investors. The regulator claims that nearly 20,000 users lost money between October 2021 and June of this year investing in CFD products. The case focuses on eToro’s target market and its screening test as to whether it is appropriate for some retail clients to trade in CFDs.
Hong Kong Grants First Crypto License
Hong Kong has granted its first crypto licenses to HashKey and OSL, fulfilling its promise to develop a global digital asset hub. HashKey, in partnership with Standard Chartered, will offer fiat currency deposits and withdrawals, along with virtual asset over-the-counter trading. Hong Kong’s revamped crypto framework aims to compete with Singapore as a leading Asian financial center.
Half of Crypto Copy Traders are Gen Z
Younger investors, especially Gen Z, show a higher inclination for copy trading and seeking advice from social media influencers. A report by crypto exchange Bitget revealed that among copy traders, 44% are under 25 years old, followed by the 25-35 age group, which makes up nearly a third of the total. 35-55 make up 17%, while only 7% of copy traders are 55 or older.
That’s what’s happened this week in crypto, see you next week.