Brief news and events in the crypto world, from the hacking of the CoinEx exchange and the theft of $54 million in cryptocurrency globally, to the reduction of electricity tariffs for mining by Tavanir in Iran.
Brief News
CoinEx was hacked; $54 million in cryptocurrency was stolen.
On September 12, 2023, unofficial reports about the possible hacking of the CoinEx exchange and the theft of millions of dollars in digital currency circulated on social media. Following this, CoinEx confirmed the news on its Twitter page. The CoinEx team claimed that the stolen amount was only a “very small” portion of the exchange’s assets and emphasized that “users’ assets remain untouched and secure.” However, immediately after the news, they promised to compensate “the damages of those affected by this hack” 100%. Recent assessments indicate that the amount of stolen assets from CoinEx exceeds $53 million. The importance of the CoinEx hack is heightened by certain policies in Iran that have facilitated the growth of foreign exchanges, despite expert warnings about security risks, and this platform has a large number of Iranian users.
China Pursues Its Social Credit System in the Metaverse
China is seeking to implement a mechanism similar to its social credit system in the metaverse and other online virtual worlds. According to Politico, the state-owned telecommunications company “China Mobile” proposed a plan to create a digital ID for all users in the metaverse, working based on individuals’ natural and social characteristics. These IDs are created to maintain order and security in the virtual world and contain personal information, including individuals’ occupations. These digital IDs will be permanently stored and shared with authorities.
Source: cointelegraph.com
Senator Davidson Calls for the Dismissal of Gary Gensler
Senator Warren Davidson, a representative from the United States Congress, has once again called for the removal of Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), following the agency’s second major defeat in federal court. Criticizing Gensler’s actions against the cryptocurrency industry, Davidson stated that there is more evidence suggesting the arbitrary and baseless nature of Gensler’s actions within the SEC. This follows a recent ruling by a U.S. district court in favor of Ripple, marking the second time in two months that Gensler and his team have faced defeat in court.
Source: beincrypto.com
FBI Seizes $1.7 Million in Digital Currency
A new report from the Federal Bureau of Investigation (FBI) reveals that the agency has seized nearly $1.7 million in digital currency this year. The document states, “The Bureau informs that the listed assets are seized due to violations of federal laws.” Most of the seizures involved Ethereum, with other cryptocurrencies amounting to $800,000 in value. The agency seized Ethereum worth $463,000 in Eastern Virginia, marking the largest seizure on the list. Among all U.S. states, Florida and Virginia had the highest amounts of confiscated digital assets.
Source: theblock.co
Member of Parliament: User Count Should Not Be the Basis for Licensing Cryptocurrency Exchanges
Mohammad Rashidi, a member of the Parliamentary Board of Directors, commented on the oversight of the cryptocurrency space in the country, stating, “Given the significant financial turnover in the cryptocurrency sector, there should be an overseer like the Central Bank appointed to prevent serious losses for the public and to avoid repeating past economic experiences.” He also emphasized the need for a specific law to oversee domestic cryptocurrency exchanges: “We are pursuing this matter in Parliament, and supervisory meetings have been convened. The Economic Commission is diligently working to finalize this issue. However, factors such as user count should not be the criteria for granting licenses; instead, priority should be given to having transparent financial operations, paying taxes, and adhering to laws and regulations.”
Source: Tasnim
Founder of Cardano: SEC Complaints Against Cryptocurrencies are Political Moves
Following the U.S. Securities and Exchange Commission (SEC) lawsuit against exchanges like Binance and Coinbase for allegedly supporting unregistered securities, Charles Hoskinson, the founder of Cardano (ADA), stated that this issue is political rather than a matter of securities law. He explained, “The Commission can only file complaints, and after these complaints progress to higher legal stages, similar to what happened with Ripple, they will face defeat.”
Source: coinedition.com
Stablecoins Pose a Threat to Payment Giants like Visa and PayPal
According to Barron’s Weekly, dollar-pegged stablecoins are emerging as a threat to major payment companies like Visa and PayPal. In 2022, over $11 trillion in transactions were conducted on the blockchain using stablecoins. Approximately 25 million wallets hold more than one dollar in stablecoins, with 80% of these having balances of $100 or less. For comparison, a bank with 25 million accounts would rank as the fifth largest bank in the United States. The vast number of these wallets with small assets indicates the potential of stablecoins to provide global financial services to customers who are unsupported by traditional financial institutions.
Source: beincrypto.com
Minister of Economy: Cryptocurrencies Must Be Recognized
Ehsan Khandouzi, the Minister of Economic Affairs and Finance, stated in a meeting with e-commerce and digital economy stakeholders that, “A regulation has been drafted in the realm of cryptocurrencies, but due to various considerations from different agencies, this regulation has become outdated. We are striving to formalize the realm of cryptocurrencies and digital assets and had hoped this would happen in the first year of the government. We insist that during audits of companies, intangible assets be taken into account.” Khandouzi also recently pointed out the controversial nature of cryptocurrencies, noting, “Nowadays, if someone intends to mine cryptocurrency, they can go through the necessary processes to do so officially. The specifics of how the produced cryptocurrency will be traded or stored will also be detailed in the upcoming bill.”
Source: Tasnim
Chinese Official Sentenced to Life Imprisonment for Bitcoin Mining
According to local media reports, a court has sentenced Xiao Yi, a former vice-chairman and member of the Jiangxi Provincial Political Consultative Conference, to life in prison for abusing power and operating a Bitcoin (BTC) mining company valued at approximately $329 million. The company, Jiumo Group Genesis, operated over 160,000 Bitcoin mining machines at one point and misused electricity subsidies from the city of Fuzhou between 2017 and 2021. According to prosecutors, this mining operation accounted for 10% of the total electricity consumption in Fuzhou during that time.
Source: cointelegraph.com
$350 Million Cryptocurrency Mining Center Launched in Oman
The Omani Ministry of Transport, Communications, and Information Technology has opened a new data hosting and cryptocurrency mining center in the Salalah Free Zone in collaboration with Exahertz. Following the introduction of the first mining site worth $390 million in November 2022, this is the second center established in the country, with an investment of $350 million. Sam Fedows, CEO of Exahertz, announced that the Salalah mining center is a pilot project for launching a widespread network of blockchain-based centers in Oman soon.
Source: cryptopotato.com
Asia: The Most Profitable Region for Individual Bitcoin Mining
A new study reveals that Asia, despite significant variations in electricity costs among its countries, has the lowest average Bitcoin (BTC) mining costs for individual miners. The global average cost of electricity needed to mine one Bitcoin is $46,291.24, whereas in Asia it averages $20,635.62. The lowest cost for an individual miner to extract one Bitcoin is $266.2 in Lebanon, while the highest is $64,111.02 in Japan. Iran ranks second among the most profitable countries with a home electricity cost of $532.04 for mining one Bitcoin. The report estimates that the electricity required to mine one Bitcoin is 266,000 kilowatt-hours.
Source: news.bitcoin.com
Binance Enables Cryptocurrency Transfers to 9 Latin American Countries
Binance has launched a new platform that facilitates cryptocurrency transfers from Binance Pay to nine Latin American countries. Initially, this platform will be available in Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, the Dominican Republic, Panama, and Mexico. Users in these nine countries can send their funds to bank accounts in Colombia and Argentina during the first phase of the rollout.
Source: theblock.co
Kaiko: Current Price Volatility of Bitcoin and Ethereum Lower Than Oil
Data from a recent report by Kaiko shows that the 90-day volatility indices for Bitcoin (BTC) and Ethereum (ETH) have dropped to their lowest levels in years, reaching 35% and 37%, respectively. Currently, the volatility of these two cryptocurrencies is lower than the 41% volatility index of oil. A Kaiko analyst noted that the current market conditions are unusual and highlighted that Bitcoin’s volatility has significantly decreased as it matures as an asset.
Source: decrypt.co
Senator Lummis: Responsibility for Crypto Regulation Lies with Congress
Cynthia Lummis, a prominent advocate for cryptocurrencies and U.S. Senator from Wyoming, alongside various lobbying organizations focused on digital assets and several academic figures, has filed a request to dismiss the Securities and Exchange Commission’s (SEC) lawsuit against Coinbase. Lummis asserts that the responsibility for drafting cryptocurrency regulations belongs to Congress, not the SEC. She emphasizes that the SEC has overstepped its authority by attempting to label almost all digital assets as securities, which exceeds the agency’s jurisdiction.
Source: bitcoinist.com
PayPal Announces Launch of Dollar-Backed Stablecoin
PayPal has announced the release of its first stablecoin, named PayPal USD (PYUSD). This new stablecoin, issued by Paxos and backed by U.S. dollars, short-term treasury bills, and cash equivalents, will soon be available to customers in the United States. The PayPal USD will always be redeemable for U.S. dollars and can be exchanged with other cryptocurrencies on the platform. PayPal noted that this stablecoin will be accessible as a payment method for various purchases shortly.
Source: cointelegraph.com
Former CEO of FTX Sent to Jail
Following the revocation of bail by the FTX case judge, former CEO Sam Bankman-Fried has been sent to jail. The court’s decision was based on Bankman-Fried’s attempts to engage in secret negotiations with witnesses in the FTX case. He must remain in jail until the next phase of his trial begins in October.
Source: decrypt.co
John Deaton: SEC’s Lawsuit Against Ripple Stole Three Years of Growth
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in 2020, arguing that most cryptocurrencies are securities. In 2023, the case was finally decided in Ripple’s favor. While this decision was heralded as a victory for Ripple Labs, the XRP token also saw a significant increase. Now, prominent lawyer John Deaton claims that the SEC’s lawsuit robbed Ripple of three years of growth and led many major exchanges, including Coinbase, to delist the token.
Source: en.bitcoinsistemi.com
Congress Representative: CBDC Ban Essential for Future of Fintech in the U.S.
Warren Davidson, a Congressman, has warned about the dangers that the issuance of Central Bank Digital Currency (CBDC) poses to the fintech industry in the United States. He reiterated his opposition to national digital currencies, stating that a central bank digital currency turns money into a tool for pressure and control, and there is no way to issue it in the U.S. without enacting a law.
Source: news.bitcoin.com
Gensler to Testify Before Congress
Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), is set to testify twice before Congress, once in the Senate Banking Committee and then in the House Financial Services Committee. These appearances come after a series of criticisms and accusations from lawmakers, particularly Republicans, directed at Gensler. Representative Patrick McHenry, a member of the House Financial Services Committee, has criticized Gensler’s approach to regulating digital assets as overly aggressive.
Source: cryptoslate.com
Brian Armstrong: Cryptocurrencies Will Be a Priority for 2024 Voters
Brian Armstrong, CEO of Coinbase, stated that the stance of candidates in the 2024 elections regarding cryptocurrencies will be a priority for American voters. He emphasized that American politicians are failing to grasp the influence of cryptocurrencies. Armstrong remarked, “I don’t think everyone in Washington understands how powerful the crypto voting block is. In the 2024 elections, American voters will force candidates to speak about their positions on cryptocurrencies.” He believes that politicians’ support for digital assets presents an opportunity to challenge current government policies.
Source: beincrypto.com
Ripple CEO: Don’t Start a Crypto Business in the U.S.!
Brad Garlinghouse, CEO of Ripple, described the U.S. Securities and Exchange Commission’s (SEC) approach to managing the crypto sector as “out of control.” He lamented that many in the U.S. crypto community must resort to legal proceedings to prove that the SEC is consistently wrong about facts and laws. He pointed out the significant regulatory ambiguities in the crypto space in the U.S., asserting that it is one of the worst countries to launch a cryptocurrency investment. Garlinghouse stated, “The only country I would not encourage you to start a crypto business in is the U.S.”
Source: finbold.com
Tom Emmer: SEC’s Budget Should Be Restricted to Reduce Its War on Cryptocurrencies
Tom Emmer, a Congressman and supporter of cryptocurrencies, has stated that he will back proposals to limit the budget of the U.S. Securities and Exchange Commission (SEC) for regulating digital assets. He believes that Gary Gensler, the chairman of the SEC, has overstepped his authority and is using taxpayer dollars as a “weapon” through enforcement actions. Emmer stated, “Gensler has abused his powers to the detriment of the American people. Congress should utilize all tools, including the budgeting process, to rein him in.”
Source: dailyhodl.com
Tavanir Announces Reduction in Mining Electricity Rates
According to a notification from Tavanir, the price of electricity for mining centers has been reduced to 26,257 rials per kilowatt-hour. This new rate is set for three months, from August 19 to November 19 of this year. The notification was issued on September 5 to regional electricity companies and power distribution. The Ministry of Energy proposed eliminating tariffs and value-added tax from the electricity rates for mining, as the mining industry is considered an exporter. However, since the removal of these charges on the bill is not feasible, it was decided to reduce the base rate so that the total amount, including tariffs and value-added tax, would not be applied. Another proposal from the Ministry of Energy is to change the basis for calculating export tariffs from the NIMA system to the gold and currency system, which would increase the tariff. Implementing these two changes would result in a slight reduction in rates.
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