Hong Kong-based cryptocurrency exchange BitForex has ceased withdrawals for a minimum of three days without offering an explanation.
Prior to the suspension, approximately $56 million in cryptocurrency had been withdrawn from the exchange’s wallets.
According to an X post on February 23, on-chain investigator ZachXBT stated that three BitForex hot wallets experienced outflows of approximately $56.5 million in cryptocurrencies before the exchange halted transaction processing.
The exchange’s X account has not seen any updates since May 2023
BitForex users are encountering issues with their accounts, ranging from being unable to access them to finding that the dashboard displays no assets.
Numerous users have shared a pop-up screen indicating they are blocked from accessing the company’s website.
Attempts by Cointelegraph to access the BitForex website encountered the same issue. However, certain pages of the exchange’s website remain active.
For instance, an announcement dated January 31, disclosing the departure of BitForex CEO Jason Luo, was still accessible on the website at the time of writing.
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In September 2023, BitForex was among the foremost global cryptocurrency exchanges in terms of capitalization, with a daily trading volume of approximately $2.6 billion in cryptocurrency.
Currently, CoinMarketCap does not provide real-time data on BitForex.
In April 2023, Japan’s Financial Services Agency (FSA) accused BitForex of breaching the country’s fund settlement laws, alleging that the exchange conducted business in the country without proper registration.
GHowever, BitForex has not attracted significant attention from regulators or the media since then.
Last week, another Hong Kong-based exchange, Atom Asset Exchange (AAX), transferred around $55.6 million worth of Ether (ETH) from its wallets.
AAX ceased all operations on November 13, 2022, just two days after FTX filed for bankruptcy. Following its closure, AAX’s former CEO Thor Chan and board member Haoming Liang were arrested by Hong Kong police in 2022.
Nevertheless, the founder of AAX, whose identity remains undisclosed, is purportedly still evading authorities with 230 million Hong Kong dollars ($29.41 million) worth of users’ funds and private keys granting access to exchange wallets.
Google and the social media platform Reddit have forged a partnership, with Reddit supplying its content to aid in training the artificial intelligence (AI) models of the search engine giant.
In an announcement, Reddit stated it would furnish Google with enhanced techniques for model training.
Under this collaboration, Google gains access to Reddit’s data application programming interface (API), delivering real-time content from Reddit’s platform.
This access enables Google to tap into Reddit’s vast content repository, facilitating the integration of Reddit content across Google’s suite of products.
In return, Reddit will utilise Vertex AI, Google’s AI-driven service tailored to improve search outcomes for businesses.
Reddit has clarified that this update does not alter the terms of its data API, maintaining restrictions on commercial access without prior approval for developers or enterprises.
This partnership follows reports from Bloomberg indicating that Reddit had secured a $60 million training deal with an undisclosed AI firm.
Reddit had previously outlined intentions to levy charges for API usage. Notably, the collaboration with Google represents Reddit’s inaugural known agreement with a prominent AI developer.
In 2023, Google revised its privacy policy to permit the use of publicly available data for AI training purposes.
This amendment followed closely after OpenAI, the developer of ChatGPT, faced a class-action lawsuit in California, alleging the unauthorized scraping of private user data from the internet.
READ MORE: Starknet Token Plummets Over 60% in Value Amidst Sell-Offs and Airdrop Controversy
However, as per updates to the commercial terms of service for the Claude developer, Anthropic, the generative AI startup pledged to abstain from utilising client data for large language model (LLM) training beginning January 2024.
Despite this landmark agreement, Google and Reddit have not always seen eye to eye.
Reddit had previously threatened to block Google’s crawlers from accessing its site, citing concerns that companies might exploit its data for AI model training purposes.
Reddit commenced its initial public offering (IPO) on Feb. 22, aiming to bolster its valuation, which exceeded $10 billion in 2021.
The IPO filing, slated for March, marks the first major social media IPO since Pinterest’s in 2019.
In recent months, developers of AI models have actively pursued agreements with content providers to diversify their training data beyond extensive web scraping.
This move comes amidst claims from numerous content owners that their material was utilised without authorisation.
Bankrupt cryptocurrency exchange FTX has received approval from Judge John Dorsey of the Delaware Bankruptcy Court to sell more than £1 billion worth of its shares in the artificial intelligence startup Anthropic.
The ruling, delivered during a hearing on February 22, allows the sale to proceed following FTX’s accommodation of some customers who had objected to the sale.
These customers contended that the Anthropic shares did not belong to FTX, alleging they were acquired with misappropriated customer funds, referencing evidence presented during the criminal trial of FTX co-founder Sam Bankman-Fried.
However, they agreed to the sale on the condition that they would later be able to claim proceeds from it for FTX users.
Andrew Dietderich, representing FTX from Sullivan & Cromwell, informed the court that they are selling the Anthropic shares “as we are selling everything and putting the money in the bank.”
He further stated that FTX intends to reimburse users using the proceeds from selling its Anthropic stake, augmenting the existing £6.4 billion it holds in reserve — a sum more than sufficient to repay those who can substantiate their entitlement to a portion of the proceeds.
Earlier this month, FTX filed a motion to sell its 7.84% stake in Anthropic.
The exchange initially invested approximately £530 million in the AI startup in April 2022, prior to its collapse and subsequent filing for Chapter 11 bankruptcy in November of the same year.
READ MORE: Hong Kong Sees Surge in Crypto License Applications as Regulator Receives 18 Bids
Following Anthropic’s subsequent funding rounds, FTX’s stake was diluted from over 13.5%.
According to The Information’s report on February 16, the latest funding round valued Anthropic at £15 billion, elevating the worth of FTX’s stake to over £1.1 billion.
Dietderich informed the court last month that FTX anticipates it could fully reimburse creditors and has abandoned plans to revive the exchange.
However, creditor repayments will be calculated based on cryptocurrency prices at the time of FTX’s bankruptcy over 15 months ago, when Bitcoin was trading at around £16,800 — it currently stands at over £51,000, reflecting a more than 200% increase.
Meanwhile, Bankman-Fried is scheduled to be sentenced on March 28 following his conviction for embezzling over £8 billion in customer funds.
The former FTX chief maintains his innocence and has expressed his intention to appeal the verdict.
Recent data from cryptocurrency data aggregator CoinGecko suggests that holding a newly airdropped crypto token for more than 14 days often means missing out on the chance to sell at its highest value.
Since 2020, interest in airdrops has surged significantly.
The most common method of obtaining free airdropped tokens is by engaging in pre-launch activities or promotional tasks within blockchain networks.
On February 1, Cointelegraph highlighted a report of a 17-year-old crypto investor who purportedly earned over $1 million from the Solana-based Jupiter (JUP) airdrop.
A recent CoinGecko report reveals that over the past four years, approximately 46% of the top 50 crypto token airdrops, including notable tokens such as Ethereum Name Service, Blur, and LooksRare, reached their peak values within a fortnight of their launch.
The report specifies that “23 out of the 50 largest airdrops (46%) witnessed peak token prices during the initial 2 weeks of their airdrop date.”
Among the airdropped tokens that peaked within this timeframe are Manta Network (MANTA), Anchor Protocol (ANC), and Heroes of Mavia (MAVIA).
While certain projects achieved peak gains within days, only one airdropped token out of the top 50 in the past four years took more than a year to reach its peak value.
READ MORE: Coinbase Advocates for Ether ETP Approval Amid SEC Scrutiny
Optimism (OP) took one year and seven months to achieve its highest value.
In contrast, Sweat (SWEAT) reached its peak within two days of the airdrop, while Wen (WEN) saw peak gains in just three days.
However, significant sell-offs of airdrops shortly after listing can lead to a sharp decline in value, diminishing the token’s attractiveness.
On February 22, Cointelegraph reported a roughly 60% drop in the token of Ethereum layer-2 network Starknet (STRK), as Ethereum infrastructure firm Nethermind and airdrop participants offloaded millions of dollars’ worth of the airdropped token.
Furthermore, technical glitches during the claiming process may cause participants to perceive the network as unreliable, prompting them to consider selling the token.
In March 2023, the volume of Arbitrum (ARB) tokens moved to exchanges was 150% higher than inflows to wallets, triggering a significant sell-off.
This followed reports of the airdrop claim page crashing within an hour of the process starting due to overwhelming requests.
The United States Securities and Exchange Commission (SEC) is soliciting feedback on a proposed rule alteration enabling the listing and trading of options for Bitcoin exchange-traded funds (ETFs).
As per a notice dated February 23, the NYSE has sought a rule adjustment to authorise the listing and trading of options on the Bitwise Bitcoin ETF (BITC), the Grayscale Bitcoin Trust (GBTC), and “any trust that holds Bitcoin.”
If sanctioned, the options will be traded “in the same manner as options on other ETFs (including commodities ETFs) on the Exchange,” states the notice.
This encompasses regulations such as listing criteria, expiry dates, strike prices, minimum price changes, position and exercise limits, margin requirements, and protocols for customer accounts and trading halts.
BlackRock is similarly pursuing endorsement for a comparable policy revision.
The asset manager has applied for rule amendments to list options on its Bitcoin ETF in conjunction with the Chicago Board Options Exchange (CBOE). Bloomberg ETF analyst James Seyffart foresees the SEC’s verdict arriving by September 2024 at the latest.
Options are utilised for portfolio hedging, income, or speculative purposes.
They are financial derivatives affording buyers the right, but not the obligation, to buy or sell a specified asset at a predetermined price on a specific date.
READ MORE: Coinbase Advocates for Ether ETP Approval Amid SEC Scrutiny
In the realm of Bitcoin ETFs, options would enable investors to hedge or speculate on the price movements of a BTC ETF rather than Bitcoin itself.
The SEC has previously greenlit other commodity ETFs held by trusts, including the SPDR Gold Trust, iShares COMEX Gold Trust, iShares Silver Trust, and ETFS Gold Trust.
Grayscale CEO Michael Sonnenshein has been publicly advocating for regulators to endorse the crypto derivatives products.
According to the executive, options are advantageous for investors as they bolster “price discovery and can help investors better navigate market conditions or achieve desired outcomes, such as generating income.”
Similar to other investments and financial products, options trading carries risks that may not be suitable for all investors.
The SEC authorised the trading of spot Bitcoin ETFs on Wall Street on January 10, following years of rejections.
Former United States President Donald Trump has shifted his stance on Bitcoin. Once critical of the cryptocurrency, branding it a scam during his presidency, Trump now concedes that BTC is gaining traction and acceptance.
In a recent interview on Fox News, Trump was questioned about his perspective on the ascent of the Chinese digital currency and whether countering it necessitates embracing a decentralized currency like Bitcoin.
Trump reiterated his preference for the US dollar but acknowledged Bitcoin’s increasing popularity, stating:
“I like the dollar, but many people are doing it [using Bitcoin], and frankly, it’s taken a life of its own.
You probably have to do some regulation, as you know, but many people are embracing it.
And more and more, I’m seeing people wanting to pay Bitcoin, and you’re seeing something that’s interesting. So I can live with it one way or the other.”
This marked a departure from Trump’s previous disdain for Bitcoin during his presidency, where he had labelled it a scam and reportedly directed the treasury secretary to take action against it.
Amidst his campaign for the 2024 U.S. presidential election, speculation arises within the crypto community regarding the motive behind Trump’s newfound openness to Bitcoin.
Some view it as a strategic move to court votes from the expanding crypto sector, while others perceive it as typical of Trump’s ambivalent approach to issues.
One user, Blairja, suggests that Trump strategically alternated between pro-BTC and pro-US dollar statements to gauge public opinion, likening it to a fishing expedition to ascertain the prevailing sentiment among voters.
Indeed, politicians have increasingly leveraged cryptocurrency to appeal to tech-savvy demographics.
Trump currently leads the race for the Republican Party’s presidential nomination, with fellow Republican Nikki Haley trailing behind him.
Bitcoin witnessed continued weakness on as consolidation coincided with a brief slowdown in institutional investment.
According to data from Cointelegraph Markets Pro and TradingView, BTC struggled to maintain its price around $51,000.
Bulls found themselves confined within a narrow trading range for over a week, with concerns arising over the inflows to spot Bitcoin exchange-traded funds (ETFs).
Recent days saw a significant deceleration in these inflows, with February 21st even experiencing a net outflow of approximately $36 million, as per data shared on X (formerly Twitter) by sources including BitMEX Research.
February 22nd showed heightened activity, with net inflows surpassing a quarter of a million dollars, even after factoring in outflows from the Grayscale Bitcoin Trust (GBTC).
“Normality resumed with a $251M inflow into the Bitcoin ETFs,” responded James Van Straten, research and data analyst at crypto insights firm CryptoSlate.
Addressing the pace of buying from ETF operators, Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, predicted that BlackRock’s iShares Bitcoin ETF (IBIT), the largest among them, would alter BTC supply dynamics in the future.
“98% of all the #Bitcoin in existence already costs >100K if you tried to buy it,” he argued alongside a chart of IBIT holdings.
“Remember that the current price is just the marginal trade. Blackrock is going to test this theory, so we’ll find out soon enough.”
As of February 23rd, IBIT held 124,535 BTC ($6.35 billion), according to data from Apollo’s own ETF tracker.
Turning to low-timeframe BTC price analysis, popular trader Skew encapsulated the sentiment among seasoned market observers.
He concluded that the uptrend remained intact, but significant support levels were now back in focus.
These included the 88-period and 100-period exponential moving averages (EMAs) on the four-hour chart at $50,017 and $49,654 respectively, along with the 18-period EMA on the daily chart at $49,645.
“Currently, price trades around range low & 4H 55EMA which typically is a near term trend inflection point, meaning momentum picks up soon,” part of his latest X analysis read.
United States cryptocurrency exchange Coinbase has strongly supported Grayscale in its bid to transform its Ethereum Trust into an Ether exchange-traded product (ETP), asserting that Ether is not a security.
On February 22, Coinbase’s chief legal officer, Paul Grewal, unveiled the firm’s 27-page letter presenting the legal, technical, and economic arguments for why the U.S. Securities and Exchange Commission (SEC) should endorse an Ether-based ETP.
Coinbase presented five primary arguments, highlighting that Ether is appropriately categorised as a commodity, as evidenced by the U.S. Commodity Futures Trading Commission’s endorsement of ETH futures, statements by SEC officials, and court rulings.
Furthermore, it emphasised that the SEC has not contested the CFTC’s classification of ETH as a commodity.
“Our letter sets out what anyone knows who’s paid even the slightest attention to the matter: ETH is not a security,” stated Grewal, adding, “In fact, both before and after the Merge, the SEC, the CFTC, and the market have treated ETH not as a security but as a commodity.”
The letter also argued that Ethereum’s proof-of-stake consensus displays robust governance, mitigating risks of fraud and manipulation.
Additionally, it contended that the SEC’s endorsement of spot Bitcoin exchange-traded funds (ETFs) should similarly apply to an Ethereum ETP.
READ MORE: Ethena Labs’ High Yield Stablecoin Sparks Investor Concerns in Crypto Community
Coinbase supported its arguments with market data showing widespread ETH ownership and trading activity, along with the similarity between ETH futures ETFs and spot Ethereum-based funds.
The firm also underscored Ethereum blockchain’s inherent technological and operational security mechanisms that limit susceptibility to fraud and manipulation.
Finally, Coinbase highlighted its advanced market surveillance capabilities and partnership with the Chicago Mercantile Exchange.
The letter was a response to NYSE Arca’s proposed rule change to list and trade shares of the Grayscale Ethereum Trust as an Ethereum ETP, as per SEC’s procedural requirement for public feedback.
However, just two days earlier, analysts from S&P Global expressed concerns about spot Ethereum ETFs, warning that they could introduce new concentration risk to the blockchain network, particularly those incorporating staking, which could affect the mix of validators participating in Ethereum’s consensus mechanism.
The recent debut of the Ethereum layer-2 network Starknet’s token has been tumultuous, with its value plummeting by over 60% within two days.
Initially airdropped to certain users on February 20, the Starknet token (STRK) experienced a sharp decline from its peak of $4.41 to less than $1.90, as reported by CoinGecko.
Although listed on Binance and briefly soaring to $7.70, the token’s value swiftly nosedived by 75.4% to below $1.90. Blockchain analysts at Lookonchain observed this downward trend, noting, “The price of $STRK has been falling since its launch.”
They identified significant sell-offs by Nethermind, an Ethereum infrastructure firm, which offloaded 3.41 million STRK, equivalent to over $6.7 million.
Concerningly, Lookonchain warned that further selling might occur, given Nethermind’s remaining stash valued at over $12 million.
In a separate revelation, Lookonchain disclosed a consolidation of STRK holdings by an airdrop participant, consolidating 1.2 million STRK, worth $2.4 million, from approximately 1,800 wallets into a single address.
READ MORE: Crystal Intelligence CEO Forecasts Continued Growth Amidst Shifting Crypto Landscape
This followed a similar occurrence the previous day, involving 1.4 million STRK from around 1,400 wallets.
Allegations surfaced prior to the airdrop by Yearn.finance developer Banteg, suggesting that a significant portion of eligible wallets were associated with GitHub accounts controlled by airdrop hunters.
Furthermore, dissatisfaction arose among Starknet users who claimed ineligibility for the distribution despite substantial transaction activity.
Eligibility criteria demanded a minimum holding of 0.005 Ether (approximately $10) at a snapshot on November 15, 2023.
Criticism extended to STRK’s unlocking schedule, designed to allocate 1.3 billion tokens, equivalent to 13% of the total supply, to Starknet investors and contributors approximately two months post-launch.
Despite the token’s depreciating value, Starknet’s total locked value surged by nearly 30% within 24 hours to $73.5 million, as per DefiLlama.
The airdrop initially garnered significant interest, with 45 million STRK tokens claimed within the first 90 minutes, amounting to 92% of the total distribution value exceeding $790 million, according to Voyager’s data.
The Gyeonggi Provincial Tax Justice Department, situated in the most densely populated province of South Korea, amassed 6.2 billion won (£3.9 million) in undeclared taxes during 2023 by deploying a digital tracking system aimed at cryptocurrency accounts of tax evaders.
As per a report by Yonhap News Agency on February 22, the Gyeonggi tax department utilised resident registration data of “delinquents,” tracing their mobile phone numbers to uncover their accounts on digital asset exchanges.
The key innovation lies in a digital tracking system.
Previously, tax services had to individually request information from crypto exchanges, a process spanning up to six months for communication and document exchange.
According to Yonhap, the province’s digital management system truncated this period to around 15 days.
Leveraging the system, the provincial tax department pinpointed the crypto accounts of 5,910 individuals, each indebted with over 3 million won (£1,800) in local taxes.
From 2,390 offenders, the department recouped 6.2 billion won (£3.9 million).
The province intends to fortify collaboration with virtual asset exchanges and to “review administrative measures” for platforms unwilling to cooperate.
As Noh Seung-ho, head of the Provincial Tax Justice Department, affirmed:
“We will continue to take robust collection action against unscrupulous delinquents, such as those who claim insolvency to evade taxes and engage in virtual asset trading.”
READ MORE: Crystal Intelligence CEO Forecasts Continued Growth Amidst Shifting Crypto Landscape
Meanwhile, South Korea’s Financial Intelligence Unit (FIU) actively urges crypto exchanges to report any transactions raising suspicions of money laundering and illegal “foreign exchange outflow.”
The agency also plans to introduce a “virtual asset analysis system,” scrutinising and analysing virtual asset transaction specifics and “complex movement paths.”
In early February, the South Korean government issued a fresh update to the Virtual Asset Users Protection Act, imposing significant criminal penalties and fines for infractions.
These include fixed-term imprisonment exceeding one year or a fine ranging from three to five times the amount of illicit profits.
Culprits who amass over 5 billion won (£3.1 million) from unlawful crypto trading schemes face life imprisonment.