Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Celsius Network Sues Tether To Clawback $2 Billion Worth Of Bitcoin Lost In Fraud Transfer
Celsius Network Ltd. has filed a lawsuit against Tether and its affiliated entities, alleging that the USDT issued conducted “fraudulent” and “preferential” transfers of Bitcoin (BTC) worth $2 billion. The complaint, lodged in federal bankruptcy court, seeks to reclaim the collapsed estate’s lost Bitcoin due to the USDT issuer’s actions during a critical period leading up to the firm’s bankruptcy.
Tether has announced on its official website that it will defend itself against what it describes as an ‘extortionate’ lawsuit initiated by Celsius. However, this lawsuit does not acknowledge the clear validity of agreements made years before Celsius’s bankruptcy. Instead, it unfairly imposes the costs of Celsius’s mismanagement and failure onto Tether. The stablecoin issuer emphasized that it will not become a victim of baseless litigation for profit and is determined to refute the unfounded allegations against it, looking forward to prevailing in this lawsuit.
Marathon Digital To Raise $250,000,000 To Purchase More Bitcoin
Marathon Digital has announced plans to offer $250 million in aggregate convertible senior notes. The Bitcoin mining company intends to use the new raise to fund more Bitcoin (BTC) acquisition plans and general corporate purposes.
Notably, Marathon Digital sold 51% of the Bitcoin it mined in Q2 to fund its operating costs. However, it recently announced that it bought $100 million worth of Bitcoin in the open market and re-adopted a strategy to fully hold all BTC in its balance sheet.
Bitcoin And Crypto Were Not Mentioned During Trump-Musk X Space
An interview between Elon Musk and Republican presidential candidate Donald Trump attracted over 1 million listeners on X. However, crypto was not mentioned during the two-hour event.
The wide-ranging interview covered various topics, including illegal immigration, the economy, artificial intelligence, and global warming, and attacked President Biden and his now-rival presidential bidder, Kamala Harris. The interview was also delayed for over 45 minutes due to what Musk called a massive distributed denial of service (DDoS) attack on X.
Grayscale Introduces Crypto Fund For MakerDAO (MKR)
Asset manager Grayscale has introduced a new fund called the Grayscale MakerDAO Trust, which invests in the governance token of the decentralized lending platform MakerDAO (MKR).
The fund is accessible to eligible individual and institutional accredited investors.
MakerDAO is one of the largest protocols in the DeFi space and manages over $7B of crypto and real-world assets, including the third-largest stablecoin, DAI.
DRW Venture Capital Discloses $150 Million Ethereum ETF Holdings
DRW Venture Capital recently disclosed $150 million in Ethereum exchange-traded fund (ETF) holdings, according to a recent filing with the US SEC.
The revelation comes as the products have reversed an ongoing outflow trend. Specifically, SoSoValue data showed that nine Ethereum ETFs recorded net inflows after three days of negative flow data. They have been led by BlackRock, whose ETH ETF is nearing $1 billion In net inflows.
Coinbase Set To Launch Crypto Services In Hawaii
Coinbase has launched crypto services in Hawaii, allowing residents to buy, sell, stake, and manage their crypto assets and send funds internationally.
The move follows regulatory changes by Hawaii’s Department of Commerce and Consumer Affairs Division of Financial Institutions that clarified rules for cryptocurrency firms.
Coinbase had exited Hawaii in 2017 due to strict regulations requiring one-to-one cash reserves for Bitcoin holdings.
Hawaii’s Digital Currency Innovation Lab, which allowed crypto firms to operate without a state license, ended on June 30th, but companies can still do business in Hawaii under federal regulations.
Goldman Sachs Discloses $418 Million Bitcoin ETF Holdings
According to its quarterly 13F filing with the US SEC, Goldman Sachs held US spot Bitcoin exchange-traded fund (ETF) shares worth around $418.65 million as of June 30th.
Goldman Sachs owns 6.9 million shares of Blackrock’s IBIT worth $238.6 million. It also owns 1.51 million shares of Fidelity’s FBTC, worth $79.5 million, and 660,183 shares of Grayscale’s converted bitcoin fund, worth $35.1 million.
Furthermore, Goldman Sachs’ Bitcoin ETF holdings also include $56.1 million worth of Invesco Galaxy Bitcoin ETF and shares of three other Bitcoin ETFs, including WisdomTree, Ark21 shares, and Bitwise.
Morgan Stanley Discloses $187 Million Bitcoin ETF Holdings
Morgan Stanley reported its form 13F filing with the US SEC and showed a significant position in BlackRock’s spot Bitcoin exchange-traded fund.
As of June 30th, the firm disclosed it owned more than 5.5 million shares or $187.79 million worth of the iShares Bitcoin Trust (IBIT).
The bank also disclosed it owned 26,222 shares of the ARK 21Shares Bitcoin ETF (ARKB) worth about $1.57 million, down slightly from the $2.3 million allocation it showed at the end of the first quarter.
Morgan Stanley’s latest filing also showed a position totaling around $148,000 in the Grayscale Bitcoin Trust (GBTC), a near-total sell-off from the $269.9 million position it showed in the previous quarter.
CPI Inflation Falls To 2.9% In July, Lower Than Expectations
Data: 2.9% YoY, 0.2% MoM
Forecasted: 3.0% YoY, 0.2% MoM
Last Month: 3.0% YoY, -0.1% MoM
According to the US Bureau of Labor Statistics (BLS), inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 2.9% year-over-year in July from 3% in June. This reading came in line with the market expectations.
The annual core CPI, which excludes volatile food and energy prices, rose 3.2%, following the 3.3% increase recorded in July and matching analysts’ estimates. On a month-over-month basis, the CPI and the core CPI both rose 0.2%.
Trump Organization To Launch A Crypto Initiative Relating To “Digital Real Estate”
According to Eric Trump, the son of former President Donald Trump and executive vice president of the Trump Organization, the organization is set to launch a new cryptocurrency initiative. The project details have not been disclosed, but Eric Trump hinted that it could involve “digital real estate” and may allow people to lend or borrow funds through the platform.
Eric Trump expressed his enthusiasm for crypto and DeFi, stating that it offers financial independence and disrupts the traditional banking and finance industry. The Trump family has experienced what they perceive as financial discrimination and wants to create a world where individuals are not excluded from certain markets.
US Government Moves 10,000 BTC To Coinbase
Data reported by blockchain analytics firm Arkham Intelligence indicates that a wallet associated with funds seized in the US government’s takedown of the Silk Road online black market recently transferred 10,000 Bitcoin to an address associated with Coinbase Prime.
This marks the latest high-profile transfer of the US government’s Bitcoin holdings, with the previous transfer of 29,800 BTC.
Coinbase Teases Its Own Wrapped Bitcoin Token “cbBTC”
Coinbase has hinted at a new product called “cbBTC,” sparking speculation that it might launch its own wrapped Bitcoin token. Coinbase made a cryptic post on X, stating “cbBTC” followed by “coming soon.”
This announcement follows a controversy involving BitGo and Tron (TRX) founder Justin Sun over the control of Wrapped Bitcoin (WBTC). On August 9th, BitGo revealed plans to transfer WBTC management to a new joint venture involving itself, Hong Kong-based investment manager BiT Global, and Sun. This decision stirred significant backlash within the crypto community, with concerns primarily focused on Sun’s involvement.
For context, the crypto community often expresses concerns about Justin Sun’s involvement in various projects. Sun has been involved in past controversies, including allegations of market manipulation and rug pulls. He has also been accused of conflicts of interest due to his involvement in multiple projects and exchanges.
US Senate Majority Leader To Speak At Crypto Event For Kamala Harris
US Senate Majority Leader Chuck Schumer has committed to introducing pro-crypto legislation by the end of the year if Kamala Harris becomes president.
Scheduled to speak at the “Crypto4Harris” virtual Town Hall meeting, he emphasized the need for bipartisan support to keep crypto innovation in the United States and prevent it from moving to countries with less regulation.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
