WuBlockchain Weekly: The Bitcoin ETF Fake News Incident, Meitu Plans to Sell Cryptocurrency, Ferrari Accepts Cryptocurrency Payments in the US and Top10 News

Oct 20, 2023

1. Cointelegraph Releases a Detailed Explanation of the Fake News About Spot Bitcoin ETFs link

On October 16th, Cointelegraph tweeted that a spot Bitcoin ETF had been approved by the SEC in the United States. This news caused significant market volatility. However, Cointelegraph later deleted the tweet, and the news was confirmed to be false.

On October 17th, Cointelegraph released a detailed explanation regarding the false news about the spot Bitcoin ETF. The editorial team received alerts about the rumor through a Telegram channel, and to report developments quickly, the staff published the report without verifying the authenticity of the news source beforehand. The news lead came from an unconfirmed screenshot shared by a user who claimed it was from a Bloomberg terminal.

2. Grayscale Submits New Filings to the SEC Seeking Approval for a Spot Bitcoin ETF link

On the morning of October 19, Grayscale Investments submitted a new registration statement to the U.S. Securities and Exchange Commission, attempting to convert its Grayscale Bitcoin Trust Fund into a spot Bitcoin ETF. This is an S-3 filing, a simplified version of the typical S-1 filing used for issuing new shares. They intend to list it on NYSE Arca with the ticker symbol GBTC, and continue to issue these shares after the registration of these shares via the 19b-4 form approved by NYSE Arca and the effectiveness of the S-3 filing.

3. SEC Drops Charges Against Ripple’s CEO and Chairman link

On October 20, based on a publicly disclosed legal document, the U.S. Securities and Exchange Commission (SEC) withdrew the charges against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen. Ripple claims this to be their third victory, following the court ruling in July 2023, which declared that ‘XRP itself is not a security,’ and the SEC’s interim appeal request in October being rejected.

4. California Governor Signs Bill to Regulate Cryptocurrency link

According to Bloomberg Law, California Governor Gavin Newsom signed a bill on October 14th, titled the “Digital Financial Assets Act,” which is a cryptocurrency regulation act set to go into effect in July 2025. This bill mandates that cryptocurrency companies must comply with licensing and strict financial reporting obligations. It requires individuals and companies to obtain a license from the Department of Financial Protection and Innovation (DFPI) to engage in digital asset business activities. The aim of this legislation is to regulate the cryptocurrency industry in California, which is home to nearly a quarter of blockchain companies in North America. California lawmakers are looking to establish new rules around cryptocurrencies, a matter that has become more pressing following the FTX collapse and other market upheavals. With the federal government failing to take action, state legislators aim to create a basic regulatory framework.

5. Hong Kong BC Technology Group May Be Exploring the Sale of Its Cryptocurrency Platform OSL link

On October 16th, according to reports from Bloomberg, sources have revealed that Hong Kong-based BC Technology Group is exploring the sale of its cryptocurrency platform, OSL. They have assessed the interest of industry participants and funds as potential buyers and proposed a valuation of approximately 1 billion Hong Kong dollars (about 128 million USD). However, BC Technology may decide to sell a portion of OSL’s business rather than the entire operation. Currently, negotiations are ongoing, and there is no guarantee that an agreement will be reached. OSL is one of only two exchanges that obtained licenses under Hong Kong’s digital asset regulations introduced in June.

The following day, Hong Kong’s BC Technology Group issued a statement refuting the news reported by Bloomberg, stating that it is not considering the sale of its cryptocurrency platform OSL. They emphasize that the content and statements in the report are not accurate and highly misleading.

6. Binance’s Weekly Summary

a. Binance Completes Its 25th Quarterly BNB Burn link

On October 16th, according to a Binance announcement, the 25th quarterly BNB coin burn has been successfully executed as per the BNB automatic burning mechanism. In this instance, a total of 2,139,182.98 BNB has been burned, equivalent to approximately 453 million USD. This also includes an additional 314.69 BNB burned as part of the BNB Anti-Black Hole Plan.

b. Binance’s Managing Director and Legal Director in France, Stéphanie Cabossioras, Resigns link

On October 19th, it was reported by Bloomberg that Stéphanie Cabossioras has resigned from her position as Managing Director for Binance in France. Stéphanie Cabossioras joined Binance when the company announced its plans to establish a European hub in Paris in April 2022. She served as the legal head for the region and held the position of General Manager for the company in France. Prior to her role at Binance, she served as Deputy General Counsel at the French financial regulatory authority Autorité des Marchés Financiers. In June of this year, Binance faced an investigation by French authorities for allegedly providing digital asset services without proper authorization and potential involvement in money laundering activities. Since July, Cabossioras is at least the fifth senior executive to leave Binance.

7. Coinbase’s Weekly Summary

a. Coinbase Opens Perpetual Contract Trading to Eligible Retail Investors Outside the United States link

On October 18th, Coinbase announced that eligible non-U.S. customers can commence trading perpetual futures contracts on Coinbase Advanced. The platform is currently offering perpetual contracts for BTC, ETH, LTC, and XRP. These contracts initially provide a maximum leverage of 5x (except for XRP, which offers a maximum leverage of 3x) and are settled in USDC.

b. Coinbase Selects Ireland as Its Primary Operational and Regulatory Hub in the EU link

On October 19th, according to CNBC, Coinbase has selected Ireland as its primary operational and regulatory center within the European Union. Once approved, Coinbase will hold a general “MiCA license” in Ireland, which it can use to extend its services to countries such as Germany, France, Italy, the Netherlands, and other EU member states. Coinbase has had an office in Dublin since 2018 and employs approximately 100 people in Ireland.

8. Ferrari to Accept Cryptocurrency as a Payment Method in the U.S. Market link

On October 14th, according to Reuters, Ferrari’s Head of Marketing and Commercial told that their luxury sports cars in the United States have started accepting cryptocurrency payments and intend to expand this initiative to Europe based on demand from affluent customers. Ferrari states that this decision is in response to market and dealer requests, as many of their customers have invested in cryptocurrencies. In the United States, Ferrari has chosen BitPay as its initial partner, enabling payments with Bitcoin, ETH, and USDC without incurring any additional fees.

9. Meitu Executive: AI Drives Growth, No Plans to Dispose of Cryptocurrency Investments link

On October 16th, according to Sing Tao Daily, Meitu previously reported a turnaround in its performance, and Kang Yicong, Meitu’s Senior Investor Relations Manager, stated that the company’s growth is being driven by its AI business. As for the market’s focus on cryptocurrency investments, she disclosed that the company would consider selling them at the appropriate time, but there are currently no specific plans for disposal. With the recent recovery in the cryptocurrency market, Meitu has reversed approximately 190 million Chinese yuan in devaluation losses from its cryptocurrency holdings. The company has essentially refrained from making additional cryptocurrency purchases since 2021, as those purchases were made for strategic reasons, and no further actions have been taken since then.

10. FTX’s New Plan: Repay 15% of Net Withdrawals Exceeding $250,000 Within 9 Days Before Bankruptcy, Otherwise No Lawsuit link

On October 17th, as interpreted by @spreekaway, FTX has proposed a new plan that outlines the following terms: If the net withdrawals made within the last 9 days before FTX’s bankruptcy exceed $250,000, FTX will agree not to prosecute, but 15% of the net amount can be paid (or reduce the claim by 15%). If the net withdrawals made within the last 9 days before bankruptcy are less than $250,000, FTX will not prosecute. However, FTX will seek full recovery from anyone who possesses insider information or modifies their KYC to be eligible for withdrawals.

66% of the general pool will be dedicated to paying customer shortfall claims, and the remaining 34% of the general pool will be used to proportionally pay the remaining shortfall claims and other claims. The estimated global customer shortfall claims for FTX are approximately $8.9 billion, while the FTX US customer shortfall claims are around $166 million. FTX and FTXUS users are expected to receive over 90% of the distributable value globally if approved by the bankruptcy court by the end of the second quarter of 2024. The future recoveries for both customers and non-customers will depend on various variables, including the resolution of tax and government claims, as well as FTX’s ongoing asset recovery efforts.

Fundraising

Coin Metrics has successfully completed a funding round of approximately $6.7 million. link
Decentralized derivatives exchange SynFutures has raised $22 million in a Series B financing round. link
Forge has announced the completion of an $11 million seed funding round with lead investments from Makers Fund and others. link
DeFi protocol Elixir has secured $7.5 million in a Series A funding round. link
Digital identity solution provider Prove Identity has raised $40 million in funding. link
Squads Labs has completed a $5.7 million strategic financing round with Placeholder VC as the lead investor. link
AI platform MyShell, based on opBNB, has successfully raised $5.6 million in a seed funding round. link
OKX Ventures has revealed its participation in Celestia Lab’s Series B funding. link
Cryptocurrency exchange Virgo Group has secured $5 million CAD in funding with participation from Waterdrip Capital and others. link

Learn more, check out crypto-fundraising.info.

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