Tesla and Spacex CEO Elon Musk has debunked reports claiming that he advised former U.S. President Donald Trump on cryptocurrency. While stating that he is pretty sure he has not discussed crypto with Trump, Musk said crypto can “shift power from the government to the people,” and he is generally in favor of it. Musk: […]
Bitcoin News
Nigeria Denies Binance CEO’s Claims of $150M Bribe Demand; Criticizes Attempt to Discredit Government
The Nigerian government has dismissed allegations from Binance CEO Richard Teng that representatives of the cryptocurrency exchange were solicited for a 0 million bribe by members of the House Committee on Financial Crimes (HCFC). A special assistant to the Nigerian Information Minister characterized Teng’s bribery claim as part of a coordinated international campaign by Binance […]
Bitcoin News
HBAR Prices Crashes 35% As BlackRock Denies Any Ties To Hedera
HBAR, Hedera’s native token, saw a sharp correction following clarification that the world’s largest asset manager, BlackRock, was not directly involved in the tokenization of its ICS Treasury Fund on the Hedera network.
HBAR Token Crashes By Almost 35%
Data from CoinGecko shows that the HBAR token has declined by almost 35% since its price rose by over 100% on the back of the announcement, which many misinterpreted to mean that BlackRock tokenized its fund on the Hedera network. On April 24, the Hedera Foundation shared that Blockchain trading firm Archax and Infrastructure firm Ownera had collaborated to tokenize BlackRock’s ICS US Treasury money market fund (MMF) on Hedera.
Members of the crypto community, including influencers like CrediBULL Crypto and Mason Versluis, misconstrued this as meaning that BlackRock had tokenized its fund on Hedera. This assumption immediately created a bullish narrative for the ecosystem, leading to HBAR’s price rallying by over 100% and peaking at .176.
However, the crypto token has since been on a downtrend, with BlackRock denying any involvement with Hedera. Specifically, a BlackRock spokesperson told Cointelegraph that the world’s largest asset manager “has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenize any BlackRock funds.”
Meanwhile, Archax’s co-founder had also clarified on his X (formerly Twitter) platform that BlackRock wasn’t directly involved in the whole move. He claimed that tokenization of the fund can usually be done without the permission of the asset manager. However, he revealed that BlackRock knew they were tokenizing on the network.
Why The News Is Still Bullish For The Hedera Ecosystem
Despite BlackRock not being directly involved in this development, crypto analyst CrediBULL Crypto offered some perspective on why this news is still bullish for Hedera and its HBAR token. He revealed that BlackRock is the fourth largest shareholder of ABRDN, a firm that is a primary investor in Archax.
Therefore, the crypto analyst believes that BlackRock must have signed off on this move, something he considers a “de-facto endorsement of the product.” Meanwhile, he also alluded to an interview that revealed that BlackRock chose Hedera, although ABRDN introduced them to the network.
CrediBULL Crypto noted that even if BlackRock wasn’t building on the network, it is clear that “major enterprises are using Hedera.” They are “actively involved with building on the network and are constantly pushing to move it forward behind the scenes,” he added. He suggested that this puts Hedera above 99% of networks that can’t boast of such achievements.
Nigerian Central Bank Governor Denies Using Forex Reserves to Defend Local Currency
The Nigerian central bank governor has refuted claims that the bank is using the country’s foreign exchange reserves to shore up the naira. The governor attributes the decline in reserves to debt repayments and other payments, which are made because they help to maintain Nigeria’s credibility. Maintaining Nigeria’s Credibility Yemi Cardoso, governor of the Central […]
Bitcoin News
Judge Denies Coinbase Dismissal Request; CEO Hails Win for Self-Custody Wallets
New York Judge Katherine Polk Failla has ruled that the U.S. Securities and Exchange Commission (SEC) has “sufficiently pleaded” its case and the lawsuit will move forward. Legal Battle Ahead: Coinbase Dismissal Motion Rejected by Judge On Wednesday, the most recent legal filings revealed that Judge Katherine Polk Failla has declined Coinbase’s request to dismiss […]
Bitcoin News
Craig Wright Denies Forging Documents in High-Profile Bitcoin Lawsuit
In the ongoing court battle over the identity of Bitcoin’s creator, Craig Wright continues to face accusations that he forged documents to support his claim of being Satoshi Nakamoto. However, Wright maintains the documents were faked by others to frame him. Wright vs. COPA: ‘Industrial Scale’ Forgery Accusation Clouds Craig Wright’s Claim as Bitcoin’s Founder […]
Bitcoin News
Singapore High Court Denies 3AC’s Bid to Dismiss Suit by Defiance Capital Founder
The High Court of Singapore has denied Three Arrows Capital’s (3AC) attempt to dismiss a lawsuit by Defiance Capital founder Cheong Jun Yoong, affirming the legal standing of digital assets in trust disputes.
Singapore Court Upholds Defiance Capital’s Suit Against 3AC in Crypto Case
The High Court of Singapore has rejected a motion by the beleaguered crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed by Cheong Jun Yoong, founder of Web3 investment firm Defiance Capital.
Cheong, also known as Arthur Cheong, filed the suit in April 2023, asserting that Defiance Capital investors were the rightful beneficial owners of assets held in trust by 3AC. He argued that these funds should not be used to satisfy creditor claims against 3AC.
The genesis of the dispute traces back to the establishment of Defiance Capital as an “independent and standalone fund” on the 3AC platform. Under the arrangement, Cheong had access to 3AC’s resources, including its middle and back office infrastructure, fund administrators, and auditors. Despite its close operational ties with 3AC, Defiance maintained separate accounts and wallets under Cheong’s control, contributing 25% of its fees to 3AC founders Su Zhu and Kyle Davies.
By May 2022, Defiance Capital’s holdings included 22.3 million USDT and .8 million in various cryptocurrencies and fiat. Although Defiance Capital was later transferred out of 3AC and restructured as two separate entities in Singapore following 3AC’s move to Dubai, certain assets were not transferred as per a prior agreement.
The High Court’s decision, made public recently, delves into the nuanced legal arguments presented by both parties. Notably, the judgment acknowledged the potential for a trust relationship to exist, despite the wording of legal documents to the contrary. This point is critical, as it suggests that the assets under Defiance’s control might be exempt from being used to settle 3AC’s debts.
The court further established that the crypto assets in question, particularly those in Fireblocks wallets under 3AC control, were in trust. This finding challenges 3AC’s stance that such claims were without merit. Additionally, the court determined Singapore as the appropriate forum for the lawsuit, given the location of the individual controlling the wallet keys and the country’s legal nexus to the case.
This ruling marks a crucial milestone in the case and offers a glimmer of hope to Defiance Capital and its investors. It also sets a precedent in the crypto legal landscape, particularly concerning the treatment of digital assets and the application of trust law.
With the lawsuit against 3AC cleared to move forward, do you think Defiance Capital will be successful? Share your thoughts and opinions about this subject in the comments section below.
SEC Denies Coinbase’s Petition for Clear Crypto Regulation — Exchange Responds by Taking the Regulator to Court
The U.S. Securities and Exchange Commission (SEC) has rejected cryptocurrency exchange Coinbase’s petition for regulatory clarity in the crypto industry. SEC Chairman Gary Gensler backs his agency’s decision to deny Coinbase’s petition. In response, Coinbase has pursued legal action against the securities regulator to challenge this decision.
Coinbase Challenging SEC’s Decision in Court
The U.S. Securities and Exchange Commission (SEC) has denied Coinbase Global’s Petition for Rulemaking. The crypto exchange filed the petition in July last year, seeking regulatory clarity, including “potential rules to identify which digital assets are securities.” With no response from the SEC for 18 months, the crypto exchange escalated the matter to court, prompting the agency to respond with the denial on Friday.
SEC Chair Gary Gensler issued a statement regarding the denial:
I was pleased to support the Commission’s decision for three reasons.
“First, existing laws and regulations apply to the crypto securities markets. Second, the SEC addresses the crypto securities markets through rulemaking as well. Third, it is important to maintain Commission discretion in setting its own rulemaking priorities,” Gensler detailed.
Coinbase’s chief legal officer, Paul Grewal, commented on X: “Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty.”
In a follow-up post, Grewal revealed:
Promise made, promise kept: we are now on file with Third Circuit to challenge the SEC’s arbitrary and capricious denial of our petition for crypto rulemaking. We again appreciate the court’s consideration.
The CEO of Coinbase, Brian Armstrong, wrote on X: “We went to court to challenge the SEC’s refusal to create clear rules for the industry — and it worked (a court compelled them to respond).” The executive added: “Now that they’ve formally responded (with a no!) we can challenge their response in court, which helps us get one step closer to regulatory clarity. The question is why doesn’t the SEC want to clarify outstanding regulatory questions for the crypto industry?”
What do you think about the SEC denying Coinbase’s petition seeking regulatory clarity for the crypto industry? Let us know in the comments section below.
Tether Denies Links With Alleged Spokeswoman Alex Welch; Blasts ‘Tabloid’ News Outlets
A controversy surrounding Alex Welch, an alleged spokeswoman of Tether, the company behind USDT, erupted last week as an article in the Wall Street Journal (WSJ) quoted her as a source for information on the company’s loans. However, Tether CTO Paolo Ardoino denied any involvement of Welch with the stablecoin company, criticizing the publishing practices of the news outlet.
Alleged Tether Spokeswoman Alex Welch Causes Controversy
Alex Welch, who has been presented in several articles as a spokesperson for Tether, the stablecoin company behind the issuance of USDT, is at the center of a controversy between the company and mainstream news outlets.
Welch was mentioned as a source for allegations regarding the rise in Tether’s outstanding loans in a recent article by WSJ journalist Jonathan Weil, which was criticized as “tabloid-style” reporting in a press release issued by the company.
In the article, Welch is reported to have given information regarding these loans, stating that the company received loan requests from customers with whom they had “cultivated longstanding relationships,” deciding to accommodate them.
This is not the first time Welch has been present in news linked to the company. A Bloomberg article published in July 2022 also presented Welch as a Tether spokesperson, explaining that the company had remained “conservative” in its commercial paper holdings when it addressed rumors of its supposed ownership of Chinese commercial papers.
In another WSJ article by Jonathan Weil, published on December 1, Welch is addressed again as a Tether spokesperson, declaring that the secured loans disclosed at that time were issued and denominated in USDT.
Tether Denies Involvement
In a post on X (formerly Twitter), Tether CTO Paolo Ardoino denied that Welch was a company spokesperson or that she worked at Tether.
He explained:
The person that WSJ cites in its article is not a Tether spokeperson nor works at Tether, as that person repeatedly said in her correspondence with the tabloid. Pure bullies. Not unexpected from them tho.
Furthermore, Ardoino criticized Bloomberg’s publishing practices, stating the news outlet published information without confirming its veracity. Ardoino stressed:
Bloomberg as always publishes articles based on unconfirmed information – heard from a friend that was using a bathroom stall nearby, who told a guy that heard a story about Tether being too cool for them to admit.
Finally, he emphasized that Tether was still “committed to continue until secured loans are removed from the reserves.”
What do you think about Tether’s impasse with the WSJ and Bloomberg? Tell us in the comments section below.
Former FTX Law Firm Denies Role in Collapse; Challenges Allegations as ‘Fatally Deficient’ in Court Motion
San Francisco-based law firm Fenwick & West LLP is denying allegations from FTX founder Sam Bankman-Fried that the firm provided legal advice enabling the alleged fraud that led to the cryptocurrency exchange’s collapse. In a recent court filing, Fenwick & West asserts the allegations are “fatally deficient” and should be dismissed with prejudice.
Law Firm Challenges FTX Founder’s Claims
In a motion to dismiss filed Wednesday in Florida federal court, Fenwick & West argues the complaint fails to state viable claims for conspiracy, aiding and abetting fraud, negligence, or racketeering. The firm asserts the allegations improperly seek to hold it liable based on providing routine legal services to FTX within the scope of representation. Fenwick & West claims the complaint does not show it acted outside its role as legal counsel, an essential element for the asserted causes of action against a law firm.
“A lawyer’s representation of a client and knowledge of their employees does not make them omniscient as to the client’s inner workings,” the motion insists.
Additionally, Fenwick & West contends the complaint lacks plausible allegations the firm had actual knowledge of the alleged fraud by FTX founder Sam Bankman-Fried and other insiders. The firm states the claims fail to specify the purported misconduct with sufficient particularity, as required for fraud-based cases under court procedural rules. Fenwick & West further argue that the complaint does not establish the firm substantially assisted the alleged fraud or proximately caused claimed damages.
“Each of these claims against Fenwick is fatally deficient, and the Complaint should be dismissed in its entirety,” Fenwick & West wrote.
The law firm asserts the complaint is deficient in pleading a claim under the Racketeer Influenced and Corrupt Organizations Act, lacking allegations Fenwick & West agreed to participate in a criminal enterprise or that such an enterprise even existed. Fenwick & West maintain the alleged enterprise comprises only FTX and employees acting within their roles, which recent precedent indicates cannot sustain a RICO claim.
In contrast, attorneys for Bankman-Fried claimed in a separate filing he was assured his actions complied with the law, based on legal advice. The lawyers said Bankman-Fried understood lawyers had reviewed and approved FTX policies, refuting accusations he intended to defraud.
What do you think about Fenwick & West’s court motion? Share your thoughts and opinions about this subject in the comments section below.