Centralized crypto platforms have taken a lot of flack in recent months due to the shenanigans of a few bad actors. The main concern for users is the need to trust a third-party intermediary to manage their funds. But despite this, there are still many reasons to want to use a CEX.
The biggest advantage of CEXs is that they’re often much easier to use, with easy-to-understand user interfaces that enable beginners to get started trading in a matter of minutes. What’s more, CEX platforms can generally offer much deeper liquidity than even the most popular DEX platforms, making them the only suitable choice for professional, high volume traders.
So while DEX platforms might be gaining in popularity, there will always be a sizable audience for CEX platforms. With that in mind, we’ve chosen three DEX platforms that we feel are the best around, in terms of trading functionality, ease of use and low costs.
StormGain: Best CEX For Trading Options
Founded by Alex Althausen, StormGain has emerged as one of the top crypto exchange platforms for European traders thanks to its development of multiple features designed to make trading more lucrative and rewarding.
StormGain enables experienced traders to get the most out of the market with an array of different trading options and order types. For instance, it offers a basic options spot trading market that enables traders to buy and sell assets at the established market price instantaneously.
Spot trading is the most popular market for crypto traders and involves buying and selling tokens at the listed price. When a user initiates a trade, it will be entered into StormGain’s order book, which will rapidly search for a matching bid. Once the seller has been matched with a suitable buyer, the trade is executed immediately, making for lightning-fast transactions.
StormGain also allows futures trading, where traders can hedge against market price movements. With futures contracts, traders are essentially speculating that the price of an asset will move up or down over a set period of time. The user buys a contract that enables them to buy an asset at a given price at the time it expires. The trader will either profit on the deal or lose, based on whether or not the asset’s price appreciates or depreciates at the time of expiry.
A third kind of trading option on StormGain is leveraged trading, in which the user is able to borrow funds from the exchange in order to increase their stake. Looking deeper at its trading options, we find that StormGain also offers novel markets such as crypto indices and tokenized assets, as well as a cloud mining program that provides rewards to users.
Added to these trading options, StormGain is also unique among CEXs in that it operates its own, fully decentralized trading platform. StormGain DEX allows traders to maintain self-custody of their assets in their own wallet, which is simply linked to the platform. Users trade with one another via smart contracts. However, uniquely among DEXs, StormGain DEX is able to tap into the liquidity of its CEX platform to ensure traders can buy and sell at their desired price, without suffering from slippage. Very few CEX platforms can compete with StormGain’s trading options, hence it’s our favorite choice for experienced traders.
Coinbase: Best CEX For Beginners
Coinbase is one of the most user-friendly exchanges around thanks to its simple interface, robust security and its extensive library of educational content.
No doubt you have already heard of Coinbase, which is probably the best-known exchange in the U.S. Not only is it one of the most reputable platforms, but it excels at lowering the barrier for entry to new cryptocurrency users. It begins with a seamless onboarding process and a step-by-step guide to executing your first trade.
Coinbase is also home to a comprehensive portal of educational materials, with guides to things like the basics of blockchain, an explanation of crypto terminology, and a deep dive into hundreds of popular cryptocurrencies. What’s more, users can actually get paid in crypto for reading this stuff thanks to its novel Coinbase Earn program, which pays small rewards to users who participate in its learning modules.
We should also mention its security, which is as good as any in the industry. Notably, Coinbase offers two-factor authentication on its desktop and mobile platforms, and it stores 98% of its funds offline in so-called cold wallets. It also has an insurance policy with the U.S. FDIC that covers deposits of up to $250,000. It provides a level of reassurance that few other exchanges can match, making it an excellent choice for novices and cautious investors alike.
Bitstamp: Best Exchange For Low Fees
For some traders, especially those who trade in smaller amounts, one of the most important considerations is that they don’t get stung by high trading costs. Hence, Bitstamp is well worth a look thanks to its extremely competitive maker and taker fees and zero-cost withdrawals.
Low fees are offered by many CEXs as a way to entice new users to try out their platforms, but what they don’t say is that they will make up for this with expensive costs associated with coin transfers and bank withdrawals. So, you might purchase Bitcoin on its platform for minimal fees, but the moment you transfer that BTC to your own wallet, the exchange will take a sizable cut. That doesn’t happen with Bitstamp, which is notable for minimal costs on all transactions.
Bitstamp’s exact fees depend on the specific cryptocurrency, but they’re as low as you’ll find anywhere. Maker fees range from 0.3% to 0%, while taker fees average between 0.4% and 0.3%, making it one of the lowest cost exchange platforms around. Even better yet, traders whose 30-day trading volume is less than $1,000 won’t have to pay any fees at all, which is ideal for those who only want to buy crypto now and again. Furthermore, Bitstamp’s withdrawal fees are also very low, with ACH transfers being entirely free to users.
As one of the longest-established crypto platforms around, Bitstamp has a long history of secure and transparent operations. It notably became the first platform of its kind to secure an EU Payment Institution license, and it has also been granted a BitLicense by New York’s financial services department, NYDFS. Bitstamp did suffer a hack many years ago in 2015, losing more than $5 million worth of funds, but to its credit it was able to fully reimburse all users without delay.
Conclusion
There are literally hundreds of CEX trading platforms to choose from, but we think the above platforms are among the best all-rounders in the business. When it comes to multiple trading options, few platforms can compete with StormGain. For user-friendliness, Coinbase is hard to beat, and for low cost trading, Bitstamp is always a solid choice.
In a landmark move, two U.S. presidential contenders, Vivek Ramaswamy and Robert F. Kennedy Jr., have declared their intention to accept Bitcoin (BTC) donations for their campaigns. Kennedy, a potential Democratic candidate, broke the news at the Bitcoin 2023 convention, making his campaign the first in U.S history to publicize cryptocurrency acceptance.
Kennedy further promised to promote neutral energy regulations, addressing concerns around the energy-intensive process of Bitcoin mining. He committed to ensure that Bitcoin won’t be classified as a security, advocating a more welcoming regulatory environment for cryptocurrency enterprises. Additionally, he indicated a potential presidential pardon for Silk Road founder, Ross Ulbricht, raising a note of interest among crypto libertarians.
Matching Kennedy’s progressive approach, Republican candidate Vivek Ramaswamy also announced his campaign’s acceptance of BTC donations. He publicized this through a tweet featuring a BitPay donation link, inviting supporters to donate up to $6,600 worth of crypto. He also urged for the upcoming 2024 elections to focus on fiat currency discussions.
In addition to Bitcoin, BitPay’s platform accepts several other cryptocurrencies like Bitcoin Cash, Ether, Litecoin, and Dogecoin. Ramaswamy also offered a unique incentive: anyone who donates to his campaign can mint a commemorative Non-Fungible Token (NFT) using the Proof of Attendance Protocol (POAP).
In sum, these moves showcase the increasing integration of cryptocurrency in mainstream politics, with prospective leaders acknowledging its significance in democratic processes and pledging to foster an inclusive crypto environment.
Cryptocurrency exchange behemoth Coinbase (COIN) has expressed its preference for Canada’s regulatory environment over that of the U.S., citing clearer rules and a more engaged approach from regulators in Canada.
Coinbase has been at odds with the U.S. Securities and Exchange Commission (SEC), which has threatened the firm with enforcement action over alleged violations of securities laws. The recent regulatory turbulence in the U.S. has unsettled numerous firms and investors, prompting them to consider alternative jurisdictions.
While Canada has also increased scrutiny of the crypto industry via its Pre-Registration Undertaking (PRU) system for crypto exchanges, this has resulted in some major platforms, such as Binance, exiting the Canadian market. Despite this, Nana Murugesan, Coinbase’s VP of International and Business Development, has affirmed his preference for the Canadian regulatory framework.
During a CoinDesk interview, Murugesan explained: “There are two main approaches from regulators: regulation by engagement and regulation by enforcement. The latter can be challenging due to uncertainty around rules. However, Canada’s regulators exemplify the former approach, which we appreciate.”
Coinbase, which agreed to Canada’s enhanced PRU in March and is primarily regulated by the Ontario Securities Commission (OSC), has a significant presence in Canada, employing around 200 engineers in the country, according to Coinbase Canada Country Director Lucas Matheson.
Coinbase’s next step is to offer a smoother transition from fiat to crypto for its Canadian clientele by adding new payment channels. Matheson noted, “Over the coming months, we plan to incorporate Interac payment channels into our platform.” Interac is Canada’s domestic interbank payment network, connecting local financial institutions with individuals and businesses for digital payment systems.
Coinbase views Canada as a promising market, given the regulatory clarity offered by the country’s regulators and the exit of competitor Binance. Regarding competition, Murugesan added, “Each company follows its own journey, and it appears that recent developments in Canada align well with our strategic direction.”
Miami, FL, United States, May 18th, 2023, Chainwire
Borderless Capital is the manager behind this new fund. Investors include Jump Crypto, Aptos Labs, Polygon Ventures, Solana Foundation, Algorand Foundation, GSR, Arrington Capital among other institutions
Over twenty blockchain teams and venture funds have teamed up to launch a $50 million Cross-Chain Ecosystem Fund focused on backing and growing new startups that leverage the Wormhole cross-chain messaging protocol. The Cross-Chain Ecosystem Fund is being managed and operated by Borderless Capital, a leading venture capital firm in the Web3 space.
Backed by top blockchain protocols, infrastructure providers, and institutional investors, the fund aims to support cross-chain innovations that will drive the growth and adoption of the Web3 industry. The Cross-Chain Ecosystem Fund is backed by Jump Crypto, Polygon Ventures, Aptos Labs, Solana Foundation, Sei Foundation, Algorand Foundation, CLabs (the company behind the Celo Blockchain), the Moonbeam Foundation, Optimism, Circle, MultiCoin GP’s Tushar Jain and Kyle Samani, Arrington Capital, GSR, Floating Point Group, Chainlayer, Chainode Tech, 01Node, Staking Fund, Moonlet.io, Forbole Ventures, Syncnode, Inotel, Triton One, Strangelove, Securitize’s CEO Carlos Domingo, OtterSec among others.
Navigating the Web3 landscape is becoming increasingly challenging due to the proliferation of numerous layer-1 blockchains, layer-2 scaling solutions, and specialized appchains with unique purposes and parameters. This complexity poses difficulties for users and alienates developers who are restricted from accessing a single ecosystem, hindering their growth. The Cross-Chain Ecosystem Fund seeks to unlock the full potential of a cross-chain future, aiming to redefine users’ experiences and establish Wormhole as the cross-chain standard for builders to transcend the limitations of individual ecosystems. This innovation prioritizes aggregation, security, scalability, compatibility, and composability.
“We believe in a borderless Web3 future and are thrilled to have the support of our partners and investors who share our vision. In the same way that in Web2 the value was created through aggregating the relationship with the users we believe that in Web3 this is the natural next step” said David Garcia, CEO & Managing Partner of Borderless Capital. “Our goal is to empower builders to transcend the limitations of individual ecosystems, paving the way for blockchain applications and protocols to realize their full potential.”
Wormhole, the technological focus of the Fund, is a foundational protocol that enables cross-chain messaging of value and data across more than 23 high-value chains, already leveraged by influential protocols and companies like Uniswap, Circle and Base from Coinbase.
“Crypto is still a nascent industry with essentially limitless growth opportunity, and we should be doing nothing but working together, regardless of which specific networks individuals may be more passionate about. It’s really exciting to see so many ecosystems come together with leading venture funds to unite on solving the interoperability challenge by supporting startups that integrate Wormhole’s cross-chain messaging standard,” said Dan Reecer, Head of Operations at Wormhole Foundation.
Builders, founders and developers looking to reach across ecosystems can apply to the Cross-Chain Ecosystem fund at wormhole.com/programs. Applications will be reviewed by the fund manager, Borderless Capital, starting this month.
About Borderless
Borderless is a leading investment management firm focused on Web3 technology, dedicated to supporting the next generation of innovators who are driving the development of groundbreaking technologies that will enable the creation of value without borders. Borderless comprises a team of builders, partners, and investors who adopt a long-term perspective and strive to unleash the full potential of open, community-driven networks. Since 2018, Borderless has invested in 200+ protocols/companies across infrastructure, business applications, and nascent cryptographic protocols, and has played an integral role in the development of some of the most significant and innovative Web3 communities. For more information, please visit their website.
About Wormhole
Wormhole is the industry standard cross-chain messaging protocol powering applications across Web3. Wormhole provides developers access to liquidity and users on over 20 of the leading blockchain networks, enabling use cases that span DeFi, NFTs, governance, and more. Wormhole enables a growing suite of products to build on its messaging layer. Wormhole Connect is an in-app bridging widget that can be integrated in as few as 3 lines of code. The wider Wormhole network is trusted and used by teams like Circle (USDC) and Uniswap, and to date, the platform has facilitated the transfer of over 35 billion dollars through hundreds of millions of cross-chain messages.
Contact
Borderless Team
[email protected]
Miami, USA, May 17th, 2023, Chainwire
IOVLabs, one of the global blockchain technology leaders, announced the launch of a $2.5 million strategic grants program to further enhance the development and adoption of Rootstock, the world’s first Bitcoin sidechain which has become a growing hub of DeFi activity on the Bitcoin network.
The program was revealed today at the inaugural Bitcoin Builders Conference in Miami, a pioneering event focused on Bitcoin Layer 1 and Layer 2 developers.
To discover eligible candidates for the grant program, IOVLabs also announced the launch of a Hackathon in partnership with HackerEarth, a global community of over 4 million developers.
The Hackathon will run from May to July, featuring an ideation stage, a development stage, and a final pitch to an esteemed panel of judges from the Bitcoin and Rootstock ecosystems. Blockchain developers from all over the world are invited to apply.
Given Rootstock’s compatibility with Ethereum Virtual Machine (EVM), no prior knowledge is required to build decentralized applications (dApps) and integrations on the network. Developers can use the same solidity tools and libraries they are accustomed to, including Hardhat, Truffle, web3.js, and ethers.js.
In addition to the possibility of qualifying for the $2.5 million grant program, all Hackathon participants stand a chance to win over $25,000 in prizes.
Hackathon Judges include Rootstock Co-founder Sergio Lerner and mentors include Rootstock Co-founder Diego Gutiérrez Zaldívar. Rootstock ecosystem leaders including representatives from Sovryn and Tropykus will also be judging the hackathon.
Developers can leverage Rootstock’s extensive resources on the DevPortal and gain the ability to incorporate the RIF’s pre-built open-source protocols into their current and future projects.
This is part of a broader effort by IOVLabs to extend the possibilities of Bitcoin beyond being a store of value and help the ecosystem become a full-fledged financial system. The dual-pronged approach of supporting established financial institutions building and launching Web3 products and aiding entrepreneurs and builders with funding and support through hackathons and grants all speaks to IOVLabs’ desire to empower the community. Co-creation and the continual growth of Rootstock’s ecosystem partner list further attribute to that mission.
IOVLabs VP of Growth Pei Chen comments:
“IOVLabs’ support of the strategic grants program demonstrates our strong commitment to provide the tools needed to build a truly decentralized financial system on Bitcoin. This is an opportunity for the next generation of developers to harness the Rootstock sidechain to extend the capabilities of Bitcoin and help create a freer and fairer financial system for all.”
“Rootstock is rapidly becoming known as the home of DeFi on Bitcoin. But we believe now is the time to make it available to everyone, regardless of their technical ability. That’s why the overarching theme of this year’s grant programme is Everyday DeFi. This is how the first billion users will be onboarded to Web3 and together we can make it happen.”
The Hackathon and grants program will encourage developers to explore a range of concepts and projects aligning with the “Everyday DeFi” theme, including:
- Greater interoperability for different blockchains built on or with Bitcoin (dApps, bridges, technical implementations)
- User-centric utility to achieve effective user engagement (real-world use cases, compelling DAO governance modules, data dashboards)
- Unlocking new functionality and liquidity for DeFi (strategic integrations of marketplaces, dApps, DEXes, aggregators, wallets, on/off ramps, oracles)
- Developer Hackathon Bounties for Rootstock infrastructure & tooling (enhancing the foundational tools and resources for sustainable ecosystems, e.g. compiler support, SDKs, libraries, node-as-a-service, merge mining, rollups, etc.)
The Bitcoin Builders Conference, set for May 17th in Miami, will provide an opportunity for hands-on workshops, panel discussions with engineering leaders, and insightful industry keynotes for developers and innovators. The conference will also showcase the latest development tools for Bitcoin.
IOVLabs President Daniel Fogg adds:
“With the Bitcoin Builders Conference underway, I’m excited to see how developers are harnessing Bitcoin’s potential to solve everyday challenges for people around the world. IOV Labs strongly believes Bitcoin sidechains like Rootstock will play a major role in bringing the first billion users to crypto. This conference is an opportunity to celebrate and share our progress so far while acknowledging there’s still work to do. Every network has its sweet spot, and for Rootstock, it’s all about using Bitcoin to create a more accessible and fairer financial system for all. By bringing together EVM compatibility with the unmatched security of Bitcoin, Rootstock offers developers a network that can be trusted to support the financial futures of people worldwide, no matter their economic status.”
Both the grants scheme and the Hackathon aim to encourage developers to build on Bitcoin by leveraging the smart contract capabilities of its Rootstock sidechain.
This initiative helps to futureproof Bitcoin by enhancing its long-term value proposition and promoting sidechains for complex transactions, thereby addressing the ongoing congestion issue on the leading network.
The $2.5 million grants program is fully funded by IOV Labs, which contributes to the development of Rootstock, a decentralized blockchain protocol.
Rootstock use continues to grow, with close to $400m in Total Value Locked (TVL) and over 60 protocols in its ecosystem.
About IOVlabs
IOVlabs develops the blockchain technologies needed for a new global financial ecosystem that fosters opportunity, transparency, and trust.
The organization currently contributes to the development of the Rootstock blockchain and Rootstock Infrastructure Framework (RIF).
The Rootstock network is one of the more secure smart contract platforms in the world, designed to leverage Bitcoin’s unparalleled hash power while extending its capabilities.
Rootstock Infrastructure Framework (RIF) is a suite of open and decentralized infrastructure protocols that enable faster, easier and scalable development of distributed applications (dApps) within a unified environment.
For more information, visit the IOVLabs website.
About Rootstock
Rootstock is the world’s most secure, permissionless and censorship-resistant Bitcoin sidechain. It provides EVM-compatible smart contract functionality using Bitcoin as the native asset. Rootstock takes Bitcoin from a simple store of value and turns it into the foundations of a fully-fledged decentralised financial system.
Rootstock’s native token RBTC is known as “Smart Bitcoin” and lets users use their BTC to interact with a range of services on the Rootstock Bitcoin layer 2. RBTC is an exact 1:1 peg with BTC. (1 RBTC = 1 BTC) When you transfer bitcoin into Rootstock, your bitcoin is locked and the equivalent amount is released as RBTC.
Rootstock is a Bitcoin sidechain that provides EVM-compatible smart contract functionality using Bitcoin as the native asset. Rootstock is the most permissionless and censorship-resistant Bitcoin sidechain. People around the world use Rootstock every day to interact with a range of DeFi protocols such as Sovryn, Tropykus and stablecoin Money on Chain.
Rootstock is permissionless, and its consensus mechanism is merge-mined proof of work (PoW) with over 50% of Bitcoin’s hash power currently mining Rootstock. This means that Rootstock is mined with more hash power than any other chain, except Bitcoin itself.
RBTC is used as gas to pay for smart contract execution on the network, such as the transaction fee for trading Rootstock ecosystem tokens, the same way as ETH is used as gas for Ethereum. Unlike other blockchain native tokens, Rootstock is non-custodial and maintains the censorship resistance of Bitcoin.
Contact
Director of Brand & Communications
Sam Golden
IOV Labs
[email protected]
Creditors of the insolvent cryptocurrency lending business BlockFi have lodged a fresh court document, challenging the company’s most recent restructuring proposal.
On May 12, BlockFi detailed its Chapter 11 restructuring strategy in a document submitted to the United States Bankruptcy Court in Trenton, New Jersey. The firm suggested that a sale of BlockFi might not yield sufficient value for its creditors given its outstanding debt of nearly $1.3 billion to its top 50 creditors.
Countering this, BlockFi creditors filed an additional court document on May 15, accusing BlockFi of intentionally delaying the court proceedings.
Represented by the Brown Rudnick law firm, the creditors of BlockFi highlighted that the firm liquidated approximately $240 million in cryptocurrency prior to declaring bankruptcy in late November 2022. They underlined that the crypto assets were sold “at the nadir,” referring to a substantial market decline following the FTX collapse.
The creditors criticized BlockFi’s decision to liquidate almost all domestic cryptocurrency in November 2022 as ill-judged, costing them over $100 million in subsequent months. They also pointed out “unnecessary and undesired tax consequences,” asserting that the sale was not relevant to its bankruptcy proceedings. The filing stated:
“Selling $240 million in cryptocurrency was never rationally related to bankruptcy funding needs, given that no reasonable estimate would peg the costs of this bankruptcy at $240 million.”
According to the creditors, BlockFi expended $22.5 million of client funds to purchase a $30 million insurance policy, following the disposal of digital assets before filing for bankruptcy.
The creditors argued in their document, “By selling everything pre-petition, BlockFi provided itself with an almost unlimited budget, essentially shielded from the bankruptcy’s adversarial process, to conduct its case for as long and as contentious as it deems appropriate without the ‘typical milestones’ in a DIP or cash collateral order.”
The plaintiffs urged the court to expedite the case’s conclusion by transferring the estate assets “into the hands of new management.” They reiterated that such a situation appears incongruous with the debtors’ case objectives.
BlockFi did not immediately respond to Cointelegraph’s request for comment.
The total count of Bitcoin wallet addresses possessing at least one BTC has crossed the milestone of one million.
Data from Glassnode confirms that this benchmark was achieved on May 13.
A significant rise in wallet addresses owning a minimum of one Bitcoin was observed last year as the cryptocurrency’s price plummeted by over 65%. The most prominent increases happened during a severe market downturn in June and from November 11, following the bankruptcy declaration by FTX.
As Bitcoin’s price declined from its peak in November 2021, approximately 190,000 “wholecoiners” joined the ranks from early February 2022.
Glassnode co-founder Negentropic advised his 54,000 Twitter followers that the optimal time to invest in Bitcoin is during market distress.
This advice comes amidst several major bank failures in the U.S. and potential halting of interest rate hikes by the Federal Reserve. These factors contribute to Glassnode’s continued belief in Bitcoin’s potential to reach $35,000 in the mid-term.
While the milestone of “one million” is notable, it’s essential to remember that a single Bitcoin wallet address doesn’t necessarily equate to one individual.
Many Bitcoin investors manage multiple addresses, and others belong to major entities like cryptocurrency exchanges and investment firms that often hold substantial Bitcoin quantities.
CoinGlass, a crypto analytics provider, estimates that out of the roughly 19 million Bitcoin in circulation, 1.89 million BTC — valued at $50.7 billion — are held by large centralized exchanges such as Binance and Coinbase.
Moreover, Glassnode’s estimates suggest that an astonishing 3 million BTC — equivalent to $80.4 billion and 17% of the total circulating supply — are irretrievably lost. These estimations are based on various data sources, including BTC sent to “burn addresses,” wallets with lost keys, and substantial accounts that have been inactive for over a decade.
Salem, Oregon, May 15th, 2023, Chainwire
Merov is proud to announce the launch of its comprehensive suite of services designed for the Bitcoin mining industry. The suite of services includes Merov Hosting, Rejuvit Systems by Merov, and Merov Marketplace, each providing solutions to the needs of the Bitcoin mining industry.
“As a pioneer in the industry, we are excited about the opportunities these services present, and we look forward to continuing to innovate and provide exceptional services to the Bitcoin mining community,” said Montana L. Dukes, Founder and Chief Executive Officer of Merov.
Merov Hosting offers state-of-the-art colocation facilities designed to provide the highest levels of performance, reliability, and security for Bitcoin miners.
Rejuvit Systems by Merov is a US-based parts distributor and ASIC repair company with high-quality repair, training, and tools at competitive prices.
Merov Marketplace is an innovative platform that provides due diligence, asset sale, distribution, and procurement services to the Bitcoin mining industry. It is currently in beta testing and will launch in Q3 ‘23.
Milestones Achieved
- $771.96mm in ASIC mining infrastructure deals closed or currently engaged in.
- 105,455 ASICs processed through Merov’s acquisition, verification, repair, or fulfillment services.
- 400+ megawatts of colocation capacity becoming available ’23-’24.
About Merov:
Merov is a team of passionate and experienced professionals committed to enhancing the Bitcoin industry. With a deep understanding of the industry and a range of expertise in related fields, we strive to deliver innovative, reliable, and comprehensive solutions tailored to our clients’ needs.
Our mission is to bridge gaps and streamline operations, enabling businesses and individuals to thrive in the rapidly evolving world of Bitcoin. By pushing the boundaries of technology and staying at the forefront of industry developments, we are dedicated to driving growth, fostering innovation, and empowering our clients to reach their full potential.
Follow Merov on Telegram and Twitter.
Merov is a proud sponsor of the Bitcoin Conference, May 18-20, 2023. Come meet the Merov team at booth 1206.
Contact
Chief Creative Officer
Rachel Schimelman
Merov
[email protected]
The US Department of Justice (DOJ) is intensifying its efforts against hackers and exploiters in the Decentralized Finance (DeFi) sector, following a significant increase in illicit cryptocurrency activities over the past four years.
Eun Young Choi, the head of the DOJ’s National Cryptocurrency Enforcement Team (NCET), shared in a Financial Times report on May 15 that the DOJ is zeroing in on thefts and cyber-attacks related to DeFi, with a special focus on “chain bridges.”
Choi highlighted that this is a considerable concern for the DOJ, especially since North Korean state-sponsored hackers have been identified as major players in this area.
Cointelegraph reported in February that North Korean hackers had pilfered an estimated $630 million to $1 billion in cryptocurrency assets in 2022 alone.
Choi, who has nearly ten years of prosecutorial experience with the DOJ, was named the inaugural director of the NCET in February 2022. The DOJ stated at that time that the NCET would act as the primary hub for the department in dealing with matters related to cryptocurrency, cybercrime, money laundering, and asset forfeiture.
The DOJ underscored that they would specifically target “mixing and tumbling services,” but there was no mention of DeFi platforms in their initial announcement.
Speaking at the recent Financial Times Crypto and Digital Assets Summit, Choi reaffirmed that the DOJ is targeting cryptocurrency companies that either commit crimes or knowingly permit such activities to occur, thereby facilitating money laundering.
Choi underlined that focusing on the platforms where these activities originate could have a multiplying effect by making it harder for criminals to reap the benefits of their illicit activities.
She also noted that the extent and variety of illicit uses of digital assets have significantly increased in the past four years.
Riot Platforms, previously known as Riot Blockchain, a crypto mining company, has initiated legal proceedings against Rhodium Enterprises, a Bitcoin miner based in Texas. The dispute involves recovering an alleged unpaid sum exceeding $26 million in mining facility fees.
Riot Platforms, in its Q1 2023 financial statement released on May 10, claimed that Rhodium violated their contract by not meeting the payment obligations for hosting and service fees. These fees were related to the use of Whinstone’s Bitcoin mining facilities, which Riot Platforms fully owns.
On May 2, a legal petition was lodged against Rhodium Enterprises in the Milam County Court in Texas. The petition seeks to recoup “over $26 million” and requests reimbursement for any legal expenses incurred.
In addition, Riot has asked for authorization to end “certain hosting agreements” with Rhodium. They also proposed that they should not be obligated to pay back any remaining power credits after stopping these services.
Riot Platforms acknowledged the uncertainty surrounding the possible recovery of these unpaid fees at this stage of the litigation. They stated:
“At this early stage of the litigation, it’s not possible to reasonably predict the probability of a negative outcome or the extent of such an outcome, if it happens.”
According to the report, Rhodium was served on May 8 and given until May 30 to respond.
The report also disclosed that Riot Platforms had successfully mined “2,115 Bitcoins” in the first quarter of 2023, marking a 50.5% rise from Q1 2022.
The report clarified that Riot Platforms had no involvement with recent bank failures, stating:
“We have no banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and currently we keep our cash and cash equivalents in several banking institutions.”
Riot Platforms anticipates ongoing challenges for crypto mining businesses in 2023. This is due to the “significant drop in Bitcoin’s value” and “other national and global macroeconomic factors.”
However, Riot believes its “relative position” in the industry, coupled with its “liquidity and lack of long-term debt,” places it in a strong position to “benefit from such consolidation.”