Despite concerted efforts by the BRICS nations to decrease global dependence on the U.S. dollar, the fiat currency remains the dominant force in the world economy, a new study from the Atlantic Council’s Geoeconomics Center finds. The report underscores the challenges of de-dollarization amidst geopolitical tensions. U.S. Dollar Holds Firm as Global Reserve Leader The […]
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US Continues Efforts to Extradite Terra Founder Do Kwon
Despite Montenegro’s High Court ruling for Do Kwon’s extradition to South Korea, the U.S. is not backing down. “The United States continues to seek Kwon’s extradition in accordance with relevant international and bilateral agreements and Montenegrin law,” the Justice Department told Bloomberg, highlighting the ongoing legal tussle over the Terra founder amidst charges linked to […]
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Lawyer Says FTX Has Abandoned Revival Efforts, Judge Certifies Controversial Reimbursement Plan
The collapsed cryptocurrency exchange FTX will not be proceeding with efforts to resume operations because none of the prospective suitors has pledged to invest the needed capital, the company’s attorney has said. A U.S. Bankruptcy Court judge has said FTX’s proposal to reimburse users based on November 2022 is the correct interpretation of the law.
None of FTX’s Suitors Wants to Put in the Required Capital
An attorney for the collapsed cryptocurrency exchange FTX reportedly told a bankruptcy court that the company has abandoned efforts to resume operations because none of the prospective investors is willing to put in the required capital to make this happen. According to Andy Dietderich, the attorney who represented FTX in the bankruptcy court, the exchange’s unsuccessful negotiations with possible suitors showed that jailed founder Sam Bankman Fried (SBF) never intended for FTX to operate as a viable business.
Dietderich argued that the costs and risks associated with reviving FTX far outweighed any benefit that comes with any such revival of the crypto exchange.
“FTX was an irresponsible sham created by a convicted felon. The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left in a dumpster were simply too high,” Dietderich said on Jan.31.
FTX’s Controversial Reimbursement Proposal
Rather than restarting the business, FTX will now focus on generating revenue from the sale of its assets. The funds raised will be used to reimburse FTX users whose assets were locked in when the crypto exchange filed for bankruptcy in late 2022. At the time of FTX’s sudden collapse, the USD value of many crypto assets, including Bitcoin (BTC), was at its lowest in that year. However, just over a year after FTX’s collapse, the prices of most crypto assets hit their highest in nearly two years, with BTC having grown by 160% in 2023 alone.
Despite Bitcoin’s rise from just under ,000 in November 2022 to ,000 by Jan. 31, 2023, the collapsed cryptocurrency firm’s rescue team has proposed to base the reimbursements on November 2022 prices. This decision has angered users who feel short-changed.
However, U.S. Bankruptcy Judge John Dorsey dismissed the users’ complaints in his ruling. He suggested that FTX had correctly interpreted the bankruptcy law, which clearly states that debts should be repaid based on their value at the time of a bankruptcy filing.
What are your thoughts on this story? Let us know what you think in the comments section below.
Celsius Network Unstakes Ethereum Holdings Amid Reorganization Efforts
The bankrupt cryptocurrency lender Celsius Network announced its plan to unstake significant holdings of ethereum to facilitate asset distribution to its creditors. This move is part of the firm’s ongoing efforts to restructure and resolve outstanding liabilities.
Crypto Lender Celsius to Unstake Ether
Celsius Network’s decision to unstake ethereum (ETH) reflects a broader strategy to manage its assets amidst a challenging phase. After filing for Chapter 11 bankruptcy protection in July 2022, the company faced a liquidity crisis following the downward spiral of the crypto market. The unstaking process is intended to provide necessary liquidity to offset costs incurred during the restructuring process and ensure timely distributions to creditors.
“Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process,” the company announced on Friday. The company added:
The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors.
According to the blockchain and crypto intelligence firm Nansen’s staking data, Celsius has a notable 206,300 ETH queued for unstaking withdrawal. This significant withdrawal is anticipated to considerably influence the firm’s asset handling and represents a move towards meeting its commitments to creditors.
Following the decision to open its vault, allowing select users to withdraw a portion of their crypto assets until February 28, as authorized by the court’s settlement agreement, this maneuver is part of a broader restructuring strategy.
This approach encompasses not only asset redistribution but also a shift towards alternative commercial paths. In November 2023, Celsius revealed a post-bankruptcy focus on bitcoin mining, indicating a shift in its business operations. This strategic pivot received the green light from U.S. District Judge Martin Glenn of Manhattan at the close of December 2023.
What do you think about Celsius’s plan to unstake ether? Share your thoughts and opinions about this subject in the comments section below.
FTX Ramps Up Restitution Efforts, Subpoenas AI Firm CAIS Over $6.5M Investment
Bankrupt crypto exchange FTX, led by newly appointed CEO John Ray III, has embarked on an intensive legal campaign to regain control and recover assets in its pursuit of financial restitution.
As founder Sam Bankman-Fried awaits possible conviction and faces a staggering 114 years in prison if found guilty, FTX’s asset recovery plan continues under Ray’s leadership.
FTX Bankruptcy Battle Escalates
In a recent filing with the US Bankruptcy Court for the District of Delaware, FTX issued a subpoena to the artificial intelligence (AI) firm Center for AI Safety (CAIS), demanding accounting records and information regarding payments, agreements, and contracts related to the .5 million investment.
The motion, filed on behalf of the debtors who sought Chapter 11 bankruptcy protection on November 11 and November 14, 2022, states that the Debtors are operating their businesses and managing their properties as debtors-in-possession under the Bankruptcy Code.
It also highlights the appointment of an Official Committee of Unsecured Creditors by the US Trustee. FTX’s investigations have revealed that CAIS received transfers totaling at least .5 million in debtors’ funds between May and September 2022.
As part of their ongoing efforts to understand the debtors’ financial landscape, transactions, and estate, FTX has requested CAIS to produce relevant documents and information related to payments, agreements, communications, and other pertinent details.
Debtors Seek Answers
According to the motion filed on October 25, despite the debtors’ attempts to engage in a cooperative dialogue and resolve the matter amicably, CAIS has rejected voluntary requests for accounting and failed to respond to formal correspondence. The filing reads:
The Debtors have attempted to engage in a cooperative meet and confer process to obtain information from the CAIS voluntarily. The Debtors have so far been unsuccessful. On a phone call on August 22, 2023, counsel for CAIS expressed unwillingness to make its records related to the transfers available to the Debtors. In emails between October 2-6, 2023, Debtors requested information concerning the amount of Debtor funds CAIS has spent, the amount of Debtor funds it has retained, and its financial condition. CAIS declined to provide that information.
The motion concludes by stating that notice of this action has been provided to relevant parties, including the US Trustee, the Committee’s counsel, the Securities and Exchange Commission, the Internal Revenue Service, the US Department of Justice, the US Attorney for the District of Delaware, and CAIS itself.
FTX’s native token, FTT, is trading at .22, marking a return to the level for the first time since November 2022. Although it has experienced a decline of over 5% in the past 24 hours, the token has exhibited noteworthy gains over the past seven days, amounting to a 17% upward trend.
The token’s value has diminished by more than 95% when considering the one-year timeframe.
Featured image from Shutterstock, chart from TradingView.com
Indonesia Expands De-Dollarization Efforts With National Task Force Formation
Indonesia’s central bank has established a national task force to expand the use of local currency with partner countries. Malaysia, Thailand, Japan, and China are already trading with Indonesia using local currencies. In addition, Singapore and South Korea have signed cooperation agreements to build a local currency transaction framework with Indonesia, according to the central bank.
Indonesia’s De-Dollarization Efforts
Bank Indonesia (BI), the Indonesian central bank, announced on Tuesday that it has “formed a National Task Force to expand the use of local currency transactions (LCT) in Indonesia with partner countries.” The Memorandum of Understanding (MoU) concerning the National LCT Task Force was signed on the sidelines of this year’s ASEAN Summit in Jakarta on Tuesday.
Besides the central bank, the Coordinating Ministry for Economic Affairs, Coordinating Ministry for Maritime Affairs and Investment, Ministry of Finance, Ministry of Foreign Affairs, Ministry of Industry, Ministry of Trade, Ministry of State-Owned Enterprises, Financial Services Authority (OJK), and Indonesia Deposit Insurance Corporation (IDIC) also participate in the LCT project.
The announcement details:
Currently, LCT Corporation has been implemented between Indonesia and several neighboring countries, namely Malaysia, Thailand, Japan, and China. Meanwhile, Singapore and South Korea have also signed cooperation agreements to build an LCT implementation framework with Indonesia.
Indonesia recently ramped up its de-dollarization efforts. In April, Bank Indonesia Governor Perry Warjiyo stated that Indonesia is following the lead of the BRICS economic bloc (Brazil, Russia, India, China, and South Africa) to shift away from using the USD in international trade and financial transactions.
The BRICS nations recently wrapped up their summit in Johannesburg. The economic group invited six countries to join as new members. At the conclusion of the summit, the BRICS leaders agreed to encourage the use of national currencies in international trade and financial transactions.
Indonesia is a member of the Association of Southeast Asian Nations (ASEAN), along with Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. In May, the leaders of the ASEAN nations agreed to push the use of local currencies for economic and financial transactions.
What do you think about Indonesia’s de-dollarization efforts to set up a national task force to focus on the use of local currencies instead of the U.S. dollar? Let us know in the comments section below.
High Proliferation of Crypto Scams in Africa Linked to Limited Educational Efforts — Mitroplus Labs Founder
According to Ivaibi Festo, the founder of Mitroplus Labs, a crypto and blockchain education organization, cybercriminals continue to find success in Africa because not enough is being done to educate residents on the basics of digital assets or the technology that underpins such assets. To make matters worse, the few African individuals who have made it either as traders or entrepreneurs often lack the desire to help their fellow residents become acquainted with the basics.
Using Education to Strike Back Against Scammers
However, Festo, who claims to have bought his first bitcoins in 2009, said African governments’ negative disposition as well as the stigma surrounding cryptos and the blockchain industry have helped convince some successful traders and entrepreneurs to reconsider.
Meanwhile, the Mitroplus founder told Bitcoin.com News that in addition to educating residents and prospective users, his organization is also working to include regulators and legislators in its classes. Festo argued that doing this ensures regulators and legislators are better informed when dealing with crypto assets.
Concerning the approach to regulating cryptocurrencies that African countries should adopt, Festo said governments should consider creating “a friendly environment for this tech to grow as they study and learn how to regulate them” as the biggest and most valuable industry participants will only “run to places where they are welcome.”
Below are Festo’s written answers to all questions sent to him via Whatsapp.
Bitcoin.com News (BCN): The utility of crypto assets and blockchain has become more apparent in the past few years. However, the increasing number of scams or criminals who hide behind cryptocurrencies like bitcoin has slowed the uptake of the technology by those who need it most. In your opinion, why are criminals and scammers still able to steal using the same crypto scams?
Ivaibi Festo (IF): As would be the case with any other new technology, many people still know little about cryptocurrencies and their underlying technology, architecture, white papers, security etc. And the fact that there are still little or no regulations in many countries, criminals are taking advantage of the anonymity, the hype and the fear of missing out (FOMO) to target their prey. Entry into cryptocurrencies hasn’t been easy for at least 95% of the adopters but this can change with education. Some bad actors in the space intentionally scam people using hype, greed & FOMO and the decentralised nature of the industry which allows them to do this for quick money even without showing their faces.
BCN: Many players in the crypto industry agree that a lack of knowledge or the right information on cryptocurrencies is one reason why criminals continue to succeed in their endeavors. However, in places like Africa where many victims of crypto scams are found, there is a sense that the current efforts to educate prospective crypto users fall short of what is expected. Do you agree that not enough is being done to raise awareness or educate prospective users?
IF: I agree that not enough has been done to create awareness in Africa for blockchain and cryptocurrencies. This is a tech that not so many people went to school for, many blockchain participants and cryptocurrency traders quietly go about their business without needing so much external interaction and interference. This leaves the other population at the mercy of network marketers who are eager to earn commission from unregulated crypto projects or initial coin offerings (ICOs).
Unfortunately, this has created a stigma in the African market which can only be healed through education and awareness campaigns run by genuine and successful industry leaders. The only problem is that there is not enough to be earned from education and raising awareness hence there is often little or no motivation for this. However, the negative government attitude towards cryptocurrency and the industry at large as well as the public’s outcry over the growing number of crypto scams are factors that motivate some leaders to act. They understand that this problem affects everyone including both legit and non-legit industry players.
BCN: Scammers predate cryptocurrencies and they will certainly be around for years to come. How, then, can players in the crypto industry make it more difficult for criminals to successfully defraud victims using the allure of cryptocurrencies like bitcoin?
IF: Through education and awareness even in rural areas. Mitroplus Labs is setting up blockchain literacy centres in cities and small towns of Africa for free blockchain, Web3, metaverse and cryptocurrency education. Mitroplus is also blending education and earning with entertainment through free online blockchain and fintech classes, marketmania competitions, translation of the tech and new updates into local languages and Gorilla hub competitions for blockchain startups.
For Mitroplus Labs, this is a better solution to the problems than migrating to crypto-friendly countries as many successful traders and blockchain enthusiasts from the African continent have done. Since there is not any sort of fee collection or deposit-taking, this approach comes with no risk of financial loss to scholars and affiliates. Some governments have welcomed this for their learning as well, a step towards regulations.
BCN: In one of your past interviews, you suggested educating government officials and regulators as one way of driving adoption. Why do you believe that this can make a difference?
IF: Blockchain and cryptocurrencies are disruptive technologies to mainstream financial architecture and other sectors. This is a technology that no one went to school for, all governments are learning. Thereafter they can be able to regulate what is known. So education to governments and regulatory aid is one good step towards citizen protection.
BCN: Since the start of the year 2023, the U.S. government has upped the ante against digital assets. We have heard of the so-called Operation Chokepoint 2.0 and we have seen how the Gary Gensler-led SEC is attempting to hound out crypto firms. In contrast, Asian countries and the EU have adopted a very different approach. In your opinion, what is the most effective approach that African governments should follow when seeking to regulate cryptocurrencies?
IF: We must understand that African governments are younger than many Western governments if not all. Therefore, African governments should now understand the politics behind the whole monetary system. In disruptive innovations, there is usually chaos before order, they should create a friendly environment for this tech to grow as they study and learn how to regulate them.
The biggest and most valuable industry participants will run to places where they are welcome. We have seen this in UAE and Hong Kong which are now earning a lot from the presence of these billion-dollar enterprises. This change in the financial and monetary system is going to be bigger and more impactful than any other that the world has ever seen. All countries have an equal opportunity to participate in this transition.
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What are your thoughts on this interview? Let us know what you think in the comments section below.
Opensea Phases Out BNB Smart Chain Support, Citing Resource Alignment With Promising Efforts
One of the largest non-fungible token (NFT) platforms, Opensea, has declared its decision to withdraw BNB Smart Chain (BSC) support. Opensea revealed that the “cost to continue supporting BSC outweighs the impact.”
Opensea Pivots Away From BNB Smart Chain in Strategy Re-evaluation
On August 18, 2023, Opensea proclaimed that they would cease BSC support after incorporating multiple blockchains over recent years. This announcement coincides with Opensea’s strategy to phase out the enforcement of NFT royalties. Concerning BSC support, Opensea stated that as the industry advances, the company needs to “align resources with the most promising efforts.”
“We’ve decided the cost to continue supporting BSC outweighs the impact,” Opensea said. “Starting today, you will no longer be able to create new listings for or make new offers on BSC NFTs. However, you will still be able to view, discover, and transfer BSC NFTs on our site.”
In response to Opensea’s X thread publication, some individuals claimed they were unaware of BSC support’s existence. Others seized this chance to voice their grievances about the royalty ruling. One individual commented, “IDK what kind of system you guys are running over there but it’s not that expensive to run BSC if you do it right.”
Opensea concluded by asserting their continued optimism regarding a multi-chain future and shared that they recently added support for layer two (L2) blockchains Base and Zora. “We’re confident this decision will help us direct resources to keep pace with the rapid innovation in our ecosystem,” added Opensea.
What do you think about Opensea dropping BSC support? Share your thoughts and opinions about this subject in the comments section below.
Iran Increases Efforts to Join BRICS, Strengthen Ties With Member Countries
Iran has ramped up its efforts to become a member of the BRICS group ahead of the economic bloc’s summit. The Iranian deputy foreign minister for economic diplomacy revealed that Iran is actively pursuing opportunities to strengthen its economic ties with BRICS members, noting that it has already established strong relationships with China, Russia, and India.
Iran Sees No Obstacles to Join BRICS
Mehdi Safari, Iran’s deputy foreign minister for economic diplomacy, said in an interview on Saturday that Iran’s membership in the BRICS economic group has faced no obstacles, Tasmin News Agency reported.
Noting that Iran has officially requested to join the BRICS bloc, Safari detailed:
We are making efforts so that the members of the economic group, including Brazil, Russia, India, China, and South Africa, will accept Iran’s membership.
The Iranian foreign minister and the secretary of Iran’s Supreme National Security Council (SNSC) recently attended BRICS meetings. Safari further disclosed that Iranian President Ebrahim Raisi is expected to participate in the upcoming BRICS leaders’ summit either in person or through videoconference. The summit will take place from Aug. 22-24 in Johannesburg. South Africa is the host of the summit this year.
Safari emphasized that Iran has established strong relationships with key BRICS member states, namely China, Russia, and India. Moreover, Iran is actively pursuing opportunities to strengthen its economic ties with other BRICS members, he noted.
The BRICS has drawn interest from over 40 countries seeking to join the group. According to Anil Sooklal, South Africa’s diplomat in charge of BRICS relations, 22 nations have already formally applied. Moreover, he revealed last week that South Africa has invited 69 leaders to the summit, including all of the African heads of state and the leaders of major Global South bodies. However, no Western countries have been invited, he noted.
Iran’s President Raisi has been pushing for de-dollarization, stating earlier this month that it is key to a fair international system. In May, he asked the central bank of Iran to ditch the U.S. dollar in global trade and shift to using national currencies. Also in May, Iran hosted a meeting of nine Asian countries to discuss de-dollarization.
Do you think Iran will be accepted as a member of the BRICS group soon? Let us know in the comments section below.
BRICS Interest Soars: 40+ Countries Seek Membership as De-Dollarization Efforts Grow
South Africa’s top diplomat responsible for BRICS relations has revealed that more than 40 countries are interested in joining the economic bloc. Among them, 22 nations have formally applied for membership. He believes that the BRICS group could expand to include more than 50 countries.
BRICS Group Attracts More Than 40 Nations
Anil Sooklal, South Africa’s top diplomat in charge of BRICS relations, and officials from the South African foreign affairs department shared the latest stats on BRICS membership applications in a press conference in Johannesburg on Thursday. South Africa will host this year’s BRICS summit. The economic bloc comprises Brazil, Russia, India, China, and South Africa.
Sooklal revealed that 22 countries have formally asked to join the BRICS. He was also quoted by Reuters as saying:
An equal number of countries … have informally expressed interest in becoming BRICS members … (including) all the major global south countries.
Countries interested in joining the BRICS include Argentina, Iran, Saudi Arabia, the United Arab Emirates, Cuba, the Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan.
The BRICS leaders’ summit will take place on Aug. 22-24 in Johannesburg, with one of the key topics on the agenda being the discussion of BRICS expansion. Russian President Vladimir Putin, however, will not be attending in person.
On Tuesday, Sooklal emphasized the rapid expansion of the BRICS bloc. The diplomat was quoted by IOL news outlet as saying:
With the expansion of BRICS, it could increase to include more than 50 countries.
One of the topics that has received worldwide attention is the proposed common BRICS currency. Russian news outlet RT recently claimed that the BRICS nations are launching a gold-backed currency that will be announced at the August summit. However, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, has insisted that the BRICS does not have an immediate plan to create a common currency to challenge the dominance of the USD.
According to IOL, Sooklal said the topic of BRICS currency is not on the summit agenda. He further stated:
We will expand on addressing the idea of deepening interaction in trading in local currencies. Countries want to have greater flexibility and to be less dependent on the dollar.
Brazil’s President Luiz Inácio Lula da Silva said in June that he intends to raise the issue of de-dollarization at the summit. He has been vocal about countries ditching the U.S. dollar in global trade and using their national currencies instead. The Brazilian leader has also expressed support for the creation of a common BRICS currency.
What do you think about the number of countries wanting to join the BRICS bloc? Let us know in the comments section below.