Blockchain rollups, explained

Blockchain rollups are a scalability solution that processes and bundles several transactions off-chain before submitting them to the main blockchain, reducing congestion on blockchain networks.

Consider a busy checkout queue at a store. Blockchain rollups provide quicker processing by acting as a self-checkout lane. To reduce network congestion, they group transactions and manage them off the main blockchain. This reduces the cost per transaction and expedites the process. 

Finally, for security purposes, a single transaction summary — which resembles a receipt for each self-checkout customer — is sent back to the main blockchain. This allows for faster and less expensive side transactions while maintaining the security of the main system. Rollups accomplish this in a variety of ways, but their main goal is to simplify blockchain transactions without sacrificing security.

Types of blockchain rollups

ZK-rollups and optimistic rollups are the two primary types of rollups. Both kinds of rollups ease mainnet congestion, resulting in speedier and less expensive transactions. 

Zero-knowledge rollups (ZK-rollups)

ZK-rollups condense transaction data into a succinct proof using zero-knowledge proofs, which is subsequently sent to the main chain. ZK-rollups accomplish this by lowering the quantity of data that must be processed on-chain while preserving transaction security. 

Zero-knowledge proofs ensure privacy by enabling validators to confirm the accuracy of the transactions without requiring access to the transaction details.

Optimistic rollups

As implied by the name, optimistic rollups operate under the premise that all transactions are legitimate unless demonstrated to be otherwise.

Optimistic rollups only submit the result to the main chain after processing transactions off-chain. The primary chain employs a fraud-proof technique to confirm the legitimacy of the transactions. The transactions are approved if there is no evidence of fraud, but if fraud is detected, the fraudulent transactions are rolled back. 

How do blockchain rollups work?

Before uploading several transactions to the main blockchain, blockchain rollups process and bundle them off-chain. Here’s a step-by-step process of how blockchain rollups work:

Off-chain processing

Firstly, a rollup smart contract processes transactions off-chain. This enables faster and more efficient transaction processing than dealing directly with the main blockchain.

Transaction bundling

The rollup smart contract groups several transactions into a single batch. This bundling procedure reduces the amount of data that needs to be uploaded to the main blockchain.

Validation and compression (for ZK-rollups)

Zero-knowledge proofs are used in ZK-rollups to condense transaction data into a brief proof. After being created off-chain, this proof is added to the primary blockchain.

Submission to the main blockchain

The rollup smart contract uploads the transaction batch or the compressed proof to the main blockchain after the transactions have been processed and bundled.

Verification and settlement

The batch or proof that has been uploaded gets validated on the main blockchain. A fraud-proof technique is used to verify the legitimacy of transactions for optimistic rollups. The transactions are finalized on the main blockchain if no fraud is found.

Applications of rollups

Rollups can help improve the scalability of blockchain networks, decentralized finance (DeFi) projects, nonfungible tokens (NFTs), gaming and virtual worlds and supply chain businesses.

Among the important applications of rollups are:

Scalability solutions

Rollups process and bundle several transactions off-chain before submitting them to the main blockchain, which greatly increases the scalability of blockchain networks. This lowers transaction fees and congestion by enabling a larger transaction throughput.

Decentralized finance

In the DeFi space, where large transaction volumes can cause congestion and expensive gas costs, rollups are very helpful. DeFi applications may be made much more scalable and user-friendly by using rollups, which makes transactions faster and more economical.

Nonfungible tokens

NFT platforms can benefit from rollups by minting and processing NFTs off-chain before submitting them to the main blockchain. This lowers the time and expense involved in generating and trading NFTs.

Gaming and virtual worlds

Rollups facilitate faster and more effective in-game transactions, asset transfers and decentralized governance, all of which can enhance the scalability of blockchain-based virtual worlds and gaming.

Supply chain management

Rollups enhance security, efficiency and transparency in the supply chain by tracking and validating transactions.

Rollups, in general, provide a flexible scaling option that can help a variety of blockchain applications by allowing them to manage increased transaction volumes without compromising the security and decentralization of the underlying blockchain network.

Benefits of blockchain rollups

Blockchain networks can benefit from rollups in multiple ways, including scalability, low transaction fees, faster transaction processing, enhanced privacy and user experience.

Rollups greatly increase scalability by processing and grouping several transactions off-chain before sending them to the main blockchain. This allows blockchain networks to manage a higher volume of transactions.

Moreover, rollups lessen congestion on the main blockchain, which lowers transaction fees. This increases user accessibility and affordability for blockchain transactions. By shifting a large portion of the computation off-chain, rollups allow for speedier transaction processing. This leads to enhanced user experience and faster confirmation times.

Zero-knowledge proofs are used by some rollup solutions, such ZK-rollups, to ensure transaction privacy. This preserves the security and integrity of the blockchain network while helping to protect user data and transaction details.

Furthermore, by resolving the scalability issues that blockchain networks encounter, rollups provide an effective and intuitive user experience. This makes them appropriate for a variety of applications, including supply chain management, gaming, and DeFi and NFTs.

Future of blockchain rollups

Blockchain rollups appear to have a bright future, as these scaling solutions are expected to have a major impact on advancing blockchain technology. 

Rollups present a practical way to increase network capacity, lower transaction costs and improve user experience as blockchain networks expand and encounter scalability issues. Furthermore, rollups are expected to play a bigger role in the DeFi space, where gas fees and large transaction volumes have proven to be major obstacles.

Rollups’ connectivity with Ethereum and other major blockchain platforms is a crucial component of their future. Rollups are likely to be essential in improving the network’s scalability as Ethereum incorporates danksharding. 

There will likely be more innovation in this field, such as advancements in security, privacy and interoperability as rollup technology matures. Though rollup systems like ZK-rollups and optimistic rollups are already becoming popular, new advancements could result in rollup solutions that are even more effective and scalable. 

The Securities and Exchange Commission (SEC) of Thailand wants to ensure that crypto investors are not lured into the ecosystem by misleading advertisements.

On April 29, the Thai SEC warned all operating crypto exchanges against glamorizing crypto investments and reminded them to adhere to prescribed advertising standards.

The warning comes from Deputy Secretary-General Anek Yooyuen, who said the Commission was concerned about crypto exchanges offering special privileges to onboard users.

According to the Bangkok Post, crypto advertisements containing false, exaggerated, distorted, concealing or misleading information violate Thailand’s regulations.

Regulators from key crypto markets have also taken similar measures to minimize losses from crypto investments. For example, the United Kingdom Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone.

In addition, in November 2023, Spain’s principal securities market regulator, the National Stock Market Commission (CNMV), called out fraudulent crypto assets promos on X and reiterated companies’ obligation to comply with local laws.

The SEC reminded crypto exchanges to include appropriate warnings about investment risks and to refrain from onboarding new users through special promotions.

According to Yooyuen, the SEC’s advertisement guidelines protect investors from unwarranted risks:

“When operators organize sales promotions by offering rewards to entice people to use the service, this could encourage the use of the service without considering the investment risks. This is especially the case for cryptocurrencies.”

He warned that violating the said guidelines will attract “punishment according to the law.”

The Thai advertising guidelines require businesses and advertisers to prove the “facts” stated in their marketing campaigns or risk violating the laws of the land.

Related: UK financial watchdog restricts Binance partner from issuing crypto ads

Hackers recently took over the advertisements on Etherscan and began redirecting users to phishing sites designed to drain crypto wallets.

Source: McBiblets

Blockchain investigating firm Scam Sniffer suspected the lack of oversight from advertisement aggregators as the root cause of the large-scale phishing campaign:

“Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.”

The wallet drainer scam involves luring users to fake websites and prompting them to link their crypto wallets. Once linked, the scammer can withdraw funds into their personal wallet addresses without user authentication or permission.

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The prominent artificial intelligence (AI) developer OpenAI has been placed at the center of a new privacy complaint launched by a data rights protection advocacy group in Austria.

On April 29, Noyb opened the complaint alleging that OpenAI has not fixed false information provided by its generative AI chatbot ChatGPT. The group said these actions, or lack thereof, could be in breach of privacy rules in the European Union.

According to the group, the complainant of the case, an unnamed public figure, asked OpenAI’s chatbot for information about himself and was consistently provided with incorrect information.

OpenAI allegedly refused the public figure’s request to correct or erase the data, saying it wasn’t possible. It also refused to reveal information on its training data and where it was sourced.

Maartje de Graaf, a Noyb data protection lawyer, commented on the case in a statement saying:

"If a system cannot produce accurate and transparent results, it cannot be used to generate data about individuals. The technology has to follow the legal requirements, not the other way around.”

Related: Sam Altman’s OpenAI reportedly in partnership talks with his other firm, Worldcoin

Noyb took its complaint to the Austrian data protection authority requesting that it investigate OpenAI’s data processing and how it ensures the accuracy of personal data that its large language models (LLMs) process. 

De Graaf said that, “it's clear that companies are currently unable to make chatbots like ChatGPT comply with EU law when processing data about individuals.”

Noyb, also known as the European Center for Digital Rights, operates from Vienna, Austria with the goal of launching “strategic court cases and media initiatives” that support European General Data Protection Regulation (GDPR) laws.

This is not the first time that chatbots have been called out in Europe by either activists or researchers.

In December 2023, a study from two European nonprofit organizations revealed that Microsoft’s Bing AI chatbot, rebranded to Copilot, was providing misleading or inaccurate information regarding local elections in political elections in Germany and Switzerland.

The chatbot provided inaccurate answers on candidate information, polls, scandals and voting, while also misquoting its sources.

Another instance, though not specifically in the EU, was seen with Google’s Gemini AI chatbot, which was providing “woke” and inaccurate imagery in its image generator. Google issued an apology for the incident and said it would be updating its model.

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Avraham Eisenberg, who was found guilty of fraud and market manipulation in the $110 million heist from decentralized finance (DeFi) protocol Mango Markets in October 2022, has been charged with possession of child pornography.

The court filing dated April 3 that was made public on April 26 alleged that Eisenberg had images of prepubescent minors under the age of 12.

The latest allegations come after another court filing in August last year revealed that the images were initially found on Eisenberg's laptops and cell phones during a preliminary examination concerning the accusations of fraud and market manipulation.

The latest court filing alleged that Eisenberg was in possession of child pornography images and has transferred them from 2017 to 2022.

"The defendant knowingly possessed and accessed with intent to view a book, magazine, periodical, film, videotape, computer disk, and other material that contained an image of child pornography that had been mailed, shipped and transported using a means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce by any means, including by computer."

This is a developing story, and further information will be added as it becomes available.

There’s a very slight chance that Bitcoin (BTC) has already reached its peak this cycle at the $70,000 mark, at least, based on the “exponential decay” pattern floated by veteran trader Peter Brandt.

Of course, many other price models and predictors suggest the cryptocurrency is still far from its cycle peak — and could instead top out at the $210,000 mark before the end of the bull run.

On April 27, veteran trader and analyst Peter Brandt posted a theory suggesting that Bitcoin’s bull market cycles have exhibited an “exponential decay” pattern.

This occurs when each successive cycle has a peak price that is only around 20% of the previous cycle’s peak gain. The data shows that this has occurred in the previous three market cycles.

“Worded another way, 80% of the exponential energy of each successful bull market cycle has been lost,” said Brandt.

Bitcoin cycle exponential decay. Source: Peter Brandt

Based on this decay rate, Brandt estimated the current cycle would only see a 4.5x gain from the low of around $15,500. Thus, the cycle top has been projected to be around $70,000 — a level it already reached in March when prices topped $73,000.

However, Brandt wasn’t fully convinced by this theory, assigning a 25% probability that BTC has already peaked this cycle.

Others argue that alternate models also blow this theory out of the water.

On April 29, CEO and Director of Research at Quantonomy, Giovanni Santostasi, rebutted the exponential decay theory with one of his own based on long-term power law behavior.

Commenting on Brandt’s theory, he said “We have only 3 data points if we exclude the pre-halving period and actually only 2 data points if we consider the ratios,” before adding “This is hardly enough data to do any significant statistical analysis.”

Santostasi measured the percentage deviation of price peaks from the long-term power law trend, extrapolating a different exponential decay pattern.

A power law is a functional relationship where one quantity varies as a power of another quantity, in this case, BTC price over time.

Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K

Using the figures extrapolated from the genesis block, this price model predicts a fourth cycle peak around December 2025 of around $210,000. The predicted bottom for the next cycle is around $83,000, based on historical observations, he said.

BTC power law predictions. Source: Giovanni Santostasi

The analysis combines the power law trend, four-year halving cycles, exponentially decaying peak heights, and other factors into an integrated model for Bitcoin price predictions.

Many more have made predictions on the Bitcoin peak this cycle. Swyftx lead analyst Pav Hundal told Cointelegraph that Bitcoin would at least double by the next halving in 2028, estimating a price of around $120,000.

Meanwhile, CEO of Acheron Trading and quantitative trading strategies expert, Laurent Benayoun, anticipates a potential cycle top of $180,000.

Fidelity Digital Assets revised its medium-term outlook for Bitcoin on April 22, stating that it is “no longer cheap.”

At the time of writing, BTC was trading at $62,528, down 15% from its all-time high in mid-March, according to CoinGecko.

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Australia’s largest stock exchange — the Australian Securities Exchange (ASX) — could greenlight several spot Bitcoin (BTC) exchange-traded funds (ETFs) by the end of the year. 

Following in the footsteps of fund issuers in the United States and Hong Kong, Bitcoin ETF applications from VanEck Australia and local ETF-focused fund manager BetaShares are set to be approved before the year is through, anonymous sources familiar with the matter told Bloomberg.

The uptick in spot Bitcoin ETF applications comes following the Bitcoin ETF approvals in the United States, which have seen some $53 billion in assets under management (AUM) accrued across eleven separate products.

Bitcoin ETF historical netflow. Source: CryptoQuant

The considerable inflows into U.S.-based products have provided the confidence to launch the products in Australia and “prove digital assets are here to stay,” said Justin Arzadon, the head of digital at BetaShares.

Speaking to Cointelegraph, Jeff Yew, the CEO of crypto asset management firm Monochrome — which has an application with a competing exchange — described Australia as a “very crypto-heavy country” and expects Australian spot Bitcoin ETFs to generate between $3 billion to $4 billion in net inflows within the first three years.

Yew explained that the demand for the Bitcoin ETFs would be driven primarily by fund managers looking to gain exposure to Bitcoin and from self-managed super fund (SMSF) investors as well as a smaller, yet still considerable appetite from retail.

SMSF investors currently hold direct exposure to Bitcoin on crypto exchanges, something he said is inherently risky and feels a lot like a “ticking time bomb” if crypto exchanges were to collapse.

“The Australian Taxation Office says there’s over $1 billion of crypto on exchanges and the majority of this is from SMSF investors,” he said.

Bitcoin ETFs on the other hand, allow these investors to gain heavily-regulated and therefore safer exposure to digital assets, said Yew.

Monochrome first applied for a spot Bitcoin ETF with the ASX on July 14 last year, but later switched to Cboe Australia — a much smaller exchange — following a slow approval process at the ASX.

Source: Jeff Yew

“We switched to Cboe because it's an exchange that offers a more realistic time frame and a more transparent listing framework.

“It’s no secret that the ASX had challenges lately with the regulator,” Yew said. “I think that’s just the appetite to push for new products is limited.”

Yew still expects Cboe Australia to approve his firm’s application “within the next few weeks.”

Related: Australian Monochrome spot Bitcoin ETF expected to launch within 2 months, says CEO

A single Bitcoin miner has defied the odds by solving a Bitcoin block alone, netting them the full 3.125 Bitcoin (BTC) block reward. 

On April 29, software engineer and administrator from the solo mining pool ckpool, Con Kolivas, posted to X that a miner had solved the 282nd solo block in Bitcoin’s history.

He added that the solo miner had a large hash rate of around 120PH (peta hashes) at the time, equivalent to around 0.12 EH (exa hashes), with an average of around 12PH over a week which is roughly 0.02% of the total network hash rate. 

The reward for solving block 841,286 was recently reduced from 6.25 BTC to 3.125 BTC in the Bitcoin halving at block 840,000 on April 20, meaning it was worth around $200,000 at BTC prices at the time.

Source: Con Kolivas

Kolivas examined the block-solve summary, postulating that this large miner either recently switched from pooled mining post-halving “presumably for no longer recouping their electricity costs” for a chance at a solo block. Either that or they have been “intermittently hashing/renting large amounts solo,” he added.

The feat is remarkable because mining a valid block solo is an extremely rare event akin to winning the lottery. It is so rare that it has only occurred 282 times out of the 841,300 or so blocks that have been produced since Bitcoin’s inception 14 years ago.

Mining BTC requires participants to input computational power to solve and add the next block to the network.

However, with the asset’s price increasing, mining has exploded in popularity resulting in an increase in competitiveness — known as difficulty — and hash rate, or network horsepower, meaning that it is almost impossible to solve a block alone.

Related: PayPal proposes ‘cryptoeconomic’ rewards for sustainable Bitcoin miners

In March 2023, Cointelegraph reported that a solo miner netted the entire 6.25 BTC reward for solving a block, however, prices were much lower then so the reward was around $150,000.

The most recent solo block was on April 5, a couple of weeks before the halving, when a solo miner solved block 837,814 with 7PH of hash rate netting a reward of around $422,750 at the time.

The average network hash rate is currently 618 EH/s (exa hashes per second) having hit an all-time high of 728 EH/s on April 23, according to Bitinfocharts. It has increased by more than 90% over the past 12 months making the latest solo mining achievement even more exceptional.

BTC hash rate 3 years. Source: Bitinfocharts

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The United States’ arguments to forge ahead on its case against crypto mixer Tornado Cash and developer Roman Storm show a “disdain for privacy” and include a few “egregious statements,” says DeFi Education Fund legal chief Amanda Tuminelli.

The Department of Justice on April 26 opposed Storm’s motion to dismiss conspiracy and money laundering charges which Tuminelli said in April 27 X posts were “filled with technical inaccuracies, obvious disdain for privacy and emerging technology, and misapplication of the law.”

Tuminelli highlighted on X one section where the DOJ said Storm argued that “misconduct through computer software is absolutely protected” and that crypto was “inherently beyond the reach of law enforcement.”

“This is simply not what Storm argued in his motion,” Tuminelli wrote. “It is difficult to imagine how this is not intentionally misleading.”

Tuminelli also slammed prosecutors for not understanding “how immutable smart contract protocols work” as the filing alleges Storm and co-founder Roman Semenov “could have done something about” the alleged unlawful activity on Tornado Cash “but they chose not to.”

Source: Amanda Tuminelli

The DOJ also “completely ignores” the arguments in the DeFi Education Fund’s amicus brief supporting the dismissal of Storm’s charges — which Tuminelli took “as a compliment.”

In it, the advocacy group argued the International Emergency Economic Powers Act (IEEPA) — giving the president power to regulate from “unusual and extraordinary” threats — has “never been used and should not be used to penalize a software developer that never directly engaged with or solicited conduct with a sanctioned entity.”

"Seminal crypto court case”

Meanwhile, observers say one particular section of the prosecutors’ 111-page response could have huge implications for crypto and internet freedom.

The DOJ argued the money transmitting definition under U.S. law “does not require the money transmitter to have ‘control’ of the funds being transferred” and extends to “transferring funds on behalf of the public by any and all means.”

Pseudo-anonymous industry commentator L0la L33tz said in an April 27 X post that the DOJ’s broad argument “could set [dangerous] precedents for the freedom of the internet.”

“Any provider broadcasting financial transactions” including internet service providers “could be at risk of being forced into KYC,” they claimed. “Grandma sent $50 in the mail? Clearly the postman is running a money service business.”

Source: Jason Gottlieb

Another observer, financial writer John Paul Koning wrote on X that the case against Storm “may end up being the seminal crypto court case” and is “really about who, if anyone, is liable for smart contracts and the interfaces that access smart contracts, and to what degree.”

It comes as crypto-focused lawyer Gabriel Shapiro wrote on X that he was “not (yet) worried” that the DOJ’s arguments make decentralized application operators into money transmitters.

He believed the case would come down to the relayers and the crypto mixer’s Tornado Cash (TORN) token.

Related: Samourai Wallet mixer co-founders arrested on AML, licensing charges

“Relayers did Ethereum txs for users (including paying gas). TORN provided an economic interest in the relaying enterprise,” Shapiro explained.

Source: Gabriel Shapiro

In comparison, on most DApps the user transacts on Ethereum — such as by paying their own gas or by a node “owned by wallet operator, not the DeFi web app operator,” he added.

“[Relayers] literally paid for gas for users,” Shapiro wrote. “Does it definitely constitute ‘money transmission’ under law? We’ll find out, but at minimum it’s closer to the line.”

Storm’s trial is currently slated for September. Semenov is still at large.

Magazine: Tornado Cash 2.0 — The race to build safe and legal coin mixers

Gas fees on the Ethereum network have plunged to a six-month low even as the price of Ether (ETH) rallied slightly over the weekend, which analysts from crypto analytics platform Santiment say could signal an upcoming altcoin rally. 

On April 27, the average fee for an Ethereum translation fell as low as $1.12, according to an April 28 X post from Santiment.

“Traders historically move between sentimental cycles of feeling that crypto is going ‘To the Moon’ or feeling that ‘It Is Dead’, which can be observed through transaction fees,” wrote Santiment.

Source: Santiment

Santiment explained that fees tend to peak around local market tops and fall back to “resting state” lows around the time of market bottoms.

Gas fees on Ethereum reached an eight-month high in February this year amid a tidal wave of interest in an experimental token standard called ERC-404.

The analytics platform suggested the low gas fees could indicate a future uptick in Ethereum network activity and herald the beginning of an altcoin rally.

“With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”

It comes as the price of Ether rallied slightly, gaining 4.3% in the last week, per CoinGecko data.

Related: Franklin Templeton lists Ethereum ETF on DTCC

On April 27, Ethereum layer-2 networks Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) accounted for three of the top five best-performing assets in the top 50 cryptocurrencies by market cap, gaining 11.7%, 3.5%, and 2.8% respectively.

Source: Luke Martin

Meanwhile, the lowered activity on the network has seen the circulating supply of Ethereum surge to its highest point in the last month.

In the last 30 days, 74,458 new ETH were issued while just 57,516 were burned, resulting in a net supply increase of 16,979 new Ether (ETH), per ultrasound.money data.

This stands in stark contrast to the previous five months, which have consisted of steady deflation. Despite the recent uptick in ETH-based inflation, more than 437,000 ETH has been burned since the network’s switch to a proof of stake consensus mechanism, dubbed ‘The Merge’ which occurred on Sep. 15, 2022.

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Bitcoin (BTC) attempted to start a relief rally this week but met with intense selling pressure near $67,000. The largest cryptocurrency by market capitalization is on track to end the week with a minor loss of about 2%.

Popular trader and analyst Rekt Capital believes that Bitcoin has “entered the Post-Halving ‘Danger Zone’” where it could see a further dip within the next two weeks. Another negative in the near term is the net outflows from the spot Bitcoin exchange-traded funds. Farside Investors reported that the ETFs witnessed a net outflow of $218 million on April 25, after a $120 million outflow the previous day.

Crypto market data daily view. Source: Coin360

When the price trades in a large range, it is difficult to predict the direction of the breakout with certainty. Traders could buy near the support and sell at the resistance by keeping a suitable stop loss, or stay on the sidelines until a breakout happens.

Will Bitcoin and altcoins stay above their respective support levels and start a relief rally?

Let’s study the top 5 cryptocurrencies that look strong on the charts and may start the recovery.

Bitcoin price analysis

Bitcoin has been range-bound between $59,600 and $73,777 for several days, indicating indecision between the bulls and the bears about the next directional move.

BTC/USDT daily chart. Source: TradingView

Generally, in a range, traders buy near the support and sell close to the resistance. The bulls are expected to aggressively defend the $59,600 level as a break below it could deepen the correction to 61.8% Fibonacci retracement level of $54,298. Such a move will delay the start of the next leg of the uptrend.

Contrarily, if the price turns up from the current level or the $59,600 support, it will suggest that bulls remain active at lower levels. The BTC/USDT pair may jump to $67,250 and later to the overhead resistance of $73,777. A break and close above this level will signal the start of the next leg of the uptrend to $84,000.

BTC/USDT 4-hour chart. Source: TradingView

The flattish moving averages and the RSI just below the midpoint suggest a balance between supply and demand. The first sign of strength will be a break and close above the downtrend line. That could clear the path for a rise to $68,000 and then to $71,500.

Alternatively, if the price turns down from the current level or the downtrend line and breaks below $62,300, it will suggest that bears are in command. The pair could then skid to the crucial support at $59,600, where buyers are likely to step in.

Near Protocol price analysis

Near Protocol (NEAR) closed above the descending channel pattern on April 25, indicating that the downtrend could be ending.

NEAR/USDT daily chart. Source: TradingView

However, the bears have not given up and are selling near the immediate resistance at $7.70. If the price dips back into the channel, it will suggest that the breakout may have been a bull trap. That could pull the price down to $5.90.

Instead, if the price breaks above $7.70, it will suggest that the bulls are taking charge. The NEAR/USDT pair could then attempt a rally to $9., where the bears are likely to mount a strong defense.

NEAR/USDT 4-hour chart. Source: TradingView

Both moving averages are sloping up, and the RSI is in the positive territory, indicating that the bulls have a slight advantage. Buyers are likely to face selling in the zone between $7.70 and $8.10, but if they bulldoze their way through, the rally could reach $9.

This optimistic view will be negated in the short term if the price turns down and breaks below $6.60. Such a move will indicate that the bears continue to sell on relief rallies. The pair may then slump to $5.90.

Arweave price analysis

Arweave (AR) rose above both moving averages on April 25, signaling that the bulls are attempting a comeback.

AR/USDT daily chart. Source: TradingView

The bears tried to pull the price back, but the bulls purchased the dip to the 20-day EMA ($32.19) on April 27. This suggests a change in sentiment from selling on rallies to buying on dips. There is a minor resistance at $40, but if it is crossed, the AR/USDT pair could rally to the stiff overhead resistance of $47.52.

If bears want to prevent the rally, they will have to quickly tug the price back below the 20-day EMA. If they do that, the pair may tumble to $22.

AR/USDT 4-hour chart. Source: TradingView

The pair shows the formation of an inverse head-and-shoulders pattern that will complete on a breakout and close above the neckline. If that happens, the pair is likely to dash toward the pattern target of $50.

On the contrary, if the price fails to maintain above the neckline, it will suggest that demand dries up at higher levels. The pair could then drop to the critical support at $30. A break below this level will tilt the advantage in favor of the bears.

Related: Crypto trader sees best 'altseason' since 2017 as Bitcoin price cools

Core price analysis

Core (CORE) has taken support at the 20-day EMA ($2.23) on two occasions in the past few days, indicating a positive sentiment.

CORE/USDT daily chart. Source: TradingView

If the price bounces off the current level and breaks above $2.91, it will suggest that the bulls are back in the driver’s seat. The CORE/USDT pair could then pick up momentum and surge toward $4.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that the bears are not willing to give up. That could open the doors for a drop to the 50-day SMA ($1.72).

CORE/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is range-bound between $1.83 and $2.91. The flattening moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears.

If the price breaks above the moving averages, the bulls will try to push the pair to $2.91. The bears are expected to defend this level with vigor because a break above it may start a new up move.

Conversely, if the price turns down and breaks below $2.10, the pair may tumble to the strong support at $1.83.

Bonk price analysis

Bonk (BONK) climbed above the moving averages on April 23, signaling that the corrective phase may be ending.

BONK/USDT daily chart. Source: TradingView

The bears tried to yank the price below the moving averages, but the bulls held their ground. This suggests that the bulls are trying to flip the moving averages into support. If the price bounces off the current level and breaks above $0.000030, the BONK/USDT pair will complete an inverse H&S pattern. This bullish setup has a pattern target of $0.000048.

However, the bears are likely to have other plans. They will try to sink the price below the moving averages and gain the upper hand. If they succeed, the pair may descend to $0.000019 and then to $0.000015.

BONK/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are facing stiff resistance at $0.000030. The bears are trying to strengthen their position by pulling the price below the moving averages. If they manage to do that, the pair will complete a H&S pattern and drop toward $0.000019.

On the other hand, if the price turns up from the current level or the 50-day SMA, it will indicate that the bulls continue to buy on dips. A break and close above $0.000030 will be the first sign of strength. The pair may then jump to $0.000036.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

OpenAI, an artificial intelligence company co-founded and helmed by Sam Altman, is reportedly in partnership talks with Tools For Humanity’s Worldcoin, a cryptocurrency-based universal basic income and identity verification firm also co-founded by Sam Altman. 

Bloomberg recently reported that the two firms are in negotiations for a partnership that would see OpenAI providing AI solutions and services to Worldcoin with the possibility for further synergy down the road.

Any partnership between OpenAI and Worldcoin would almost certainly draw additional regulatory scrutiny given Altman’s status within both firms.

Per Tools for Humanity CEO Alex Blania, speaking to Bloomberg:

“I think it’s just because of Sam. Just, like, much more attention than you would usually face as a company of that size or a project of that size.”

It’s unclear exactly what Blania might have meant by their comments, as Worldcoin is currently among the world’s most active universal basic income and identity verification services with an average of two million users per day.

Related: Worldcoin reaches 10M users, 70M transactions and at least 13 goats bought

Controversy and regulatory scrutiny are nothing new for either company. OpenAI recently outlasted threats to investigate its partnership with Microsoft as a merger by European Union authorities, ultimately dodging the allegations entirely.

And Worldcoin has faced bans in Portugal, Kenya, and Spain in the first three months of 2024 alone.

Worldcoin has so far spent the better part of 2024 looking to expand its operations. As Cointelegraph recently reported, the firm launched its own blockchain, a layer-2 solution that prioritizes verified Worldcoin users — humans — over bots.

On the cryptocurrency side of things, Worldcoin recently announced it would increase its WLD token supply by 36 million — currently worth around $196 million — over the next six months as part of a sell-off to select institutions.

This comes as the token’s popularity — at least as far as distribution is concerned — continues to rise. Semafor reports that despite having somewhere between 300 and 500 of the company’s “orbs” in the field, they’re currently facing a shortage.

Orbs are hardware that Worldcoin uses to scan user’s irises — a part of the human eye considered unique, like our fingerprints — to register and confirm their digital identity. Those who sign up for the service in areas where it’s available, can have their eyes scanned to receive 10 WLD tokens — currently trading at $4.81 as of the time of this article’s publication — plus an additional two every month after.

LSE Consulting, a firm anchored within the London School of Economics and Political Science (LSE), recently released a report detailing a potential path towards European dominance in the emerging Web 4.0 sector. 

According to the team, the formation of an Airbus-style industrial conglomerate dedicated to fostering innovation and growth in the metaverse is the EU’s best bet to compete with the U.S., China, and other global sector leaders, and potentially exploit Europe’s current technological and economic potential.

Airbus is a multinational conglomerate that was formed when a trio of French, German, and Spanish aerospace companies merged in 2000. Since 2019, it’s been the world’s leading manufacturer of both airliners and helicopters.

It’s relevancy to the metaverse market, according to LSE Consulting, is in its cross-border incorporation and company focus on ensuring Europe remains the dominant player in the international aerospace market.

Per the team’s report, adopting an Airbus model for the metaverse could help position the EU at the top of the Web 4.0 hierarchy:

“An immersive industrial cluster will contribute to specialised internet engineering expertise in Europe. While national and regional governments must support engineering and research education programmes more broadly, immersive technologies can also make these programmes more attractive.”

The report cited a number of case studies from noteworthy European firms such as BMW, Ikea, Bosch Sensortec GmbH, Ericsson, and STMicroelectronics. Based on the success of these and other European firms exploring metaverse technologies, LSE Consulting came up with three recommendations to advance the sector.

First, the aforementioned formation of an international conglomerate — the Airbus model — for European innovation in the metaverse, is necessary to compete at the global stage, according to the report.

Secondly, LSE Consulting recommends prioritizing skills supply training to ensure that the European workforce is up to the challenge of innovating in the metaverse.

Finally, the report calls for government support in developing innovative cross-border solutions to emergent challenges and standards for adoption.

Related: EU DeFi regulations set to welcome big banks, challenge crypto natives

Michael Barngrover, Managing Director at XR4Europe said in a statement that “There are multiple viable paths ahead for the continent,” but added that “the recommendations presented by LSE's researchers contribute to discussions around the paths we must consider.”

Bitcoin (BTC) bounced past $64,000 ahead of the April 28 weekly close as altcoins sought a recovery.

BTC/USD 1-hour chart. Source: TradingView Altcoins set for boost on waning Tether dominance

Data from Cointelegraph Markets Pro and TradingView tracked stronger BTC price momentum over the weekend.

After putting in weekly lows of $62,400, BTC/USD reversed and managed to maintain higher ground, circling $63,500 at the time of writing.

Altcoins also performed well for “out-of-hours” trading, with the total altcoin market cap up around 1% on the day.

Total altcoin market cap (excluding top 10 tokens) 1-hour chart. Source: TradingView

“Alts bounced very nicely but still have to break the trend of setting week highs around monday to tuesday,” popular trader Skew responded on X (formerly Twitter), referencing recent market patterns.

Skew nonetheless suspected that sell-side pressure would step in on Bitcoin around range highs, keeping bulls from advancing much higher.

Source: Skew

Continuing on altcoins, trader and commentator Moustache was willing to bet on a full-fledged “altseason” entering next, this rivalling anything seen since the market’s ascent to all-time highs on 2017.

The monthly dominance chart for largest stablecoin Tether (USDT) dominance attempting a reclaim after breaking below a rising trendline this year, he suggested, was merely a “backtest.”

"When USDT.D goes down, Altcoins go up," he wrote.

"Biggest Altseason since 2017 is loading imo."

Tether (USDT) market dominance chart. Source: Moustache/X

Others thus awaited the start of “TradFi” trading, including Bitcoin futures, for further cues as to crypto market trajectory.

“Weekend price action so far so good,” fellow trader Daan Crypto Trades told X followers.

“Doubt we see any meaningful move from $BTC from this point until after CME opens back up.”

BTC/USD chart with CME Bitcoin futures open and close. Source: Daan Crypto Trades/X "Very bullish" BTC price structure keeps bull market on radar

Despite consolidating in a range still below previous cycle all-time highs, Bitcoin did not disappoint everyone.

Related: Bitcoin entering most likely 2 weeks for new BTC price dip — Analysis

For trader Alan Tardigrade, the monthly BTC/USD chart looked promising.

“On monthly chart, Bitcoin is still sitting above the Triangle Top, which is very Bullish,” he argued in recent X analysis.

“To have a long and solid Bull Run in the future, Consolidation is necessary to be built up.”

BTC/USD vs. IXIC chart. Source: Alan Tardigrade/X

An accompanying chart compared Bitcoin now to a pre-breakout period for the Nasdaq Composite Index (IXIC) in 2013.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Io.net, a decentralized physical infrastructure network (DePIN), recently experienced a cybersecurity breach. Malicious users exploited exposed user ID tokens to execute a system query language (SQL) injection attack, which led to unauthorized changes in device metadata within the graphics processing unit (GPU) network.

Husky.io, Io.net’s chief security officer, responded promptly with remedial actions and security upgrades to protect the network. Fortunately, the attack did not compromise the GPUs’ actual hardware, which remains secure due to robust permission layers.

The breach was detected during a surge in write operations to the GPU metadata API, triggering alerts at 1:05 am PST on April 25.

In response, security measures were reinforced by implementing SQL injection checks on application program interfaces (APIs) and enhancing the logging of unauthorized attempts. Additionally, a user-specific authentication solution using Auth0 with OKTA was swiftly deployed to address vulnerabilities related to universal authorization tokens.

Source: Hushky.io

Unfortunately, this security update coincided with a snapshot of the rewards program, exacerbating an expected decrease in supply-side participants. Consequently, legitimate GPUs that did not restart and update could not access the uptime API, causing a significant drop in active GPU connections from 600,000 to 10,000.

To address these challenges, Ignition Rewards Season 2 has been initiated in May to encourage supply-side participation. Ongoing efforts include collaborating with suppliers to upgrade, restart, and reconnect devices to the network.

The breach stemmed from vulnerabilities introduced while implementing a proof-of-work (PoW) mechanism to identify counterfeit GPUs. Aggressive security patches before the incident prompted an escalation in attack methods, necessitating continuous security reviews and improvements.

Related: AI has a hardware crisis: Here’s how decentralized cloud can fix it

The attackers exploited a vulnerability in an API to display content in the input/output explorer, inadvertently revealing user IDs when searching by device IDs. Malicious actors compiled this leaked information into a database weeks before the breach.

The attackers leveraged a valid universal authentication token to access the ‘worker-API,' enabling changes to device metadata without requiring user-level authentication.

Husky.io emphasized ongoing thorough reviews and penetration tests on public endpoints to detect and neutralize threats early. Despite challenges, efforts are underway to incentivize supply-side participation and restore network connections, ensuring the platform’s integrity while serving tens of thousands of compute hours per month.

Io.net planned to integrate Apple silicon chip hardware in March to enhance its artificial intelligence (AI) and machine learning (ML) services.

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The United States Department of Justice (DOJ) prosecutors opposed a Motion to Dismiss conspiracy and money laundering charges against Tornado Cash co-founder Roman Semenov. They argued that the defense’s filing raised disputed facts for jury consideration, which is unsuited for early-stage motions.

In the DOJ’s response, the prosecutors analyzed why the Tornado Cash co-founder should answer for the alleged crimes levied against him. The DOJ contested the defense’s characterization of Tornado Cash, noting it was introduced in 2019 as a mixer. The service comprises a website, a user interface, a set of smart contracts, and a network of “relayers.”

The DOJ accused Roman Storm and fellow developer Roman Semenov of conspiring to commit money laundering, operating an unlicensed money transmitter, and violating sanctions by creating Tornado Cash, a crypto-mixing service. U.S. authorities claim that entities like North Korea’s Lazarus Group used Tornado Cash to launder funds.

Court filing in the U.S. District Court for the Southern District of New York. Source: CourtListener

In September 2023, Storm pleaded not guilty to all charges and was released on a $2 million bond shortly after his arrest. He is primarily restricted from traveling outside some areas of New York, New Jersey, Washington and California.

However, in late March, Storm’s attorneys sought to dismiss the indictment by arguing that authorities lacked grounds to charge him. Semenov clarified that he contributed to code design but is not accountable for its use.

Semenov’s legal team’s motion to dismiss emphasized that Tornado Cash does not operate as a custodial mixing service and does not meet the criteria for a “financial institution.” They claimed Storm had no control over the service to prevent entities like Lazarus Group from using it.

Related: FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers

Damian Williams-led team of prosecutors argued in the filing that Semenov was accountable for operating the cryptocurrency mixer and accused him of developing systems aiding criminals in anonymity. They criticized Tornado Cash’s co-founders for inadequate changes to exclude sanctioned addresses.

This comes as the U.S. government continues its crackdown on crypto-mixing services.

On April 24, the co-founders of Samourai Wallet, a cryptocurrency mixer, Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill, were arrested and charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years and conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years.

Ki Young Ju, CEO of CryptoQuant, stated that crypto mixing services are not inherently criminal in response to the recent arrest of the founders of Samourai Wallet.

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Google Cloud has introduced a new Web3 portal with resources for blockchain developers, including datasets and tutorials on creating non-fungible tokens (NFT), but its reception within the cryptocurrency industry has been mixed.

“No native Bitcoin and lightning support? Seems like an oversight to ignore the most important cryptocurrency,” vice president of product marketing at Unchained Phil Geiger stated in an X post on April 25.

“Not impressed Google is way behind,” pseudonymous crypto trader MartyParty told his 80,700 X followers on April 26.

Meanwhile, others were more receptive to the launch. Mitroplus labs founder Ivaibi Festo described the Web3 portal as a "comprehensive resource" in an April 25 post on X.

Source: Google Cloud

According to its website, developers can access a range of products and receive testnet tokens to deploy and test their decentralized applications (DApps) on Ethereum testnets Sepolia and Holesky.

It also has a learn program with tutorials on developing an NFT, implementing Web3 loyalty programs, and how to secure digital assets with multi party computation (MPC).

This comes after several recent developments by Google in the Web3 industry.

Most recently, it has expanded its features to allow users to search wallet balances across multiple blockchains, such as Bitcoin, Arbitrum, Avalanche, Optimism, Polygon and Fantom.

Related: Bitcoin halving searches on Google is at its highest point ever

At the beginning of 2024, Google updated its policies to allow certain crypto products to be advertised on major search engines, including Bitcoin exchange-traded funds (ETF).

Last year, Google appeared to be focusing on establishing partnerships in preparation for the portal launch this year.

In October 2023, Google Cloud’s BigQuery data warehouse was integrated with MultiversX, which will help Web3 projects and users derive valuable insights from powerful data analytics and artificial intelligence tools within the Google Cloud ecosystem.

Just a month before this, in September 2023, Google’s BigQuery added 11 blockchain networks to its data warehouse.

The new networks included Avalanche, Arbitrum, Cronos, Ethereum’s Görli testnet, Fantom, Near, Optimism, Polkadot, Polygon’s mainnet, Polygon’s Mumbai testnet and Tron.

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ACINQ's Bitcoin wallet, Phoenix Wallet, and zkSNACKs’ Wasabi Wallet are both discontinuing services for United States customers in response to the recent crackdown on two major self-custodial cryptocurrency wallet providers.

Both ACINQ and zkSNACKs raised concerns about whether self-custodial wallet providers can be seen as legitimate money service businesses following the recent action taken by the U.S. regulatory agencies against Metamask creator Consensys and crypto mixer Samourai Wallet.

“In light of recent announcements by U.S. authorities, zkSNACKs is now strictly prohibiting U.S. users from using its services,” zkSNACKs wrote in an April 27 statement.

“Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such,” ACINQ explained in an April 26 post on X.

ACINQ has given Phoenix Wallet users until May 2 to adjust to the upcoming changes, while the new policy at Wasabi Wallet was implemented “effective immediately.”

ACINQ explained that Phoenix Wallet users should drain their wallets, but avoid “force-closing” their wallets, as “on-chain fees could be significant.”

Source: Phoenix Wallet

Recently, regulators worldwide have argued that self-custody crypto wallets may assist in facilitating illicit activities such as money laundering.

On April 25, Cointelegraph reported that Consensys received a Wells notice from the SEC on April 10, warning of potential enforcement actions related to its MetaMask Swaps and MetaMask Staking products.

The SEC allegedly said in a phone conference that Consensys was operating as an unregistered broker-dealer.

Related: Wallet providers remain divided on BRC-20 integration despite popularity

Meanwhile, just a day earlier, on April 24, Cointelegraph reported that the co-founders of cryptocurrency mixer Samourai Wallet were arrested on charges of money laundering brought by the U.S. Justice Department (DOJ) and other agencies.

Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill are each facing one count of conspiracy to commit money laundering, with a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money transmitting business, with a maximum sentence of five years in prison.

In the meantime, European regulators have recently relaxed potential proposed regulations concerning self-custody wallets.

On March 23, Cointelegraph reported that a majority of the European Parliament’s lead committees scrapped a 1,000 euro ($1,080) limit on crypto payments from self-hosted crypto wallets as part of new anti-money laundering laws.

However, crypto exchanges, must perform due diligence, such as identity verification checks, on users who carry out business transactions of at least 1,000 euros.

Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

The Imagineers at Disney have come up with what may be the killer app for metaverse hardware, a 360-degree treadmill controllable via remote control, physical movement, or gesture. 

U.S. YouTuber and 2022 Ultimate champion Marques Brownlee, professionally known as MKBHD, was the first non-Disney employee to test the prototype device.

The Holotile, as the device is called, resembles a thick plastic mat made up of hundreds of little spinning pieces arranged in a seemingly random geometric pattern. It uses tilted, spinning discs to essentially create a floor that moves in every direction.

MKBHD demonstrated how it can be used to move objects with a wave of his hand (gesture control), much like the fictional Jedi Knights from the Star Wars entertainment franchise are able to use “the Force” to move objects with their minds.

Per MKBHD, in the video:

“And they've actually mapped anything that crosses a certain line in front of me to move whatever object is on the floor. So when I move my hand in front of that line, the program moves the floor around to match the movement of the object with the movement of my hand.”

Next up, the Disney team put MKBHD in a chair and allowed him to fling himself around the device using a PlayStation controller.

Finally, the YouTuber was allowed to use the device on his own two legs. After a brief training period he managed to walk around in a Disney metaverse environment where his movements were translated into the virtual 3D environment.

While the Holotile is only a prototype, it’s an example of what’s possible. There are 360-degree treadmills on the market today but, of the devices we’ve seen, none are capable of the unfettered movement that Holotile is.

It’s easy to imagine myriad use cases beyond simply imitating scenes from “Ready Player One” where fictional gamers walk, run, and sprint around virtual environments using a futuristic 360-degree treadmill.

Disney apparently sees it as a method by which to explore the company’s theme parks in the metaverse. During MKBHD’s trial, both he and the device’s inventors showed it off by walking around in a digital version of the Magic Kingdom.

Outside of theme parks and video games, it could be used to move objects in shifting environments, to train first-responders, law enforcement agents, and military operatives, and in any number of educational experiences. It could also make collecting NFTs a more interactive, physically-demanding activity if we imagine a paradigm where “Pokemon Go” meets “Bored Apes” in a traversable environment.

Related: ‘Lost’ Yuga Labs restructures again, with layoffs, new executive

Apple is reportedly on the hunt for a big tech partner to help shore up its flagging artificial intelligence (AI) offerings, with a specific focus on bringing th iPhone’s capabilities up to speed. 

Per a report from Bloomberg citing multiple sources, Apple and OpenAI are deep into discussions concerning the further integration of generative AI technologies on iOS.

However, previous reports also indicate that Apple is still shopping around with Google on the hook as another potential cloud partner.

Apple artificial intelligence

The Cupertino company’s AI ambitions appear to have fizzled over the past few years. Where once Apple’s walled garden approach to AI development seemed to indicate that it might have some mysterious tricks up its sleeve now, in 2024, the company’s flagship offering, the iPhone, is starting to show signs of lagging behind its AI-first competitors.

Arguably, the shift from internal development to external partnerships was signalled in May of 2022 when Ian Goodfellow, often referred to as the “GANfather” for his contributions to the field of AI, left his post as director of machine learning over Apple’s return to office policy.

Generative AI

In the time since Goodfellow’s departure, Apple has remained busy in the AI sector. The company recently released a bevy of open-source large language models, eight in total, complete with code and training logs.

While this signals a continuing dedication to AI and machine learning, it’s unlikely that any of the released models could be considered competitive with available closed models such as OpenAI’s ChatGPT and Google’s Gemini.

Market capitalization

As such, it’s possible that Apple is trying to finalize its generative AI partnerships ahead of its annual Worldwide Developers Conference (WWDC) in June.

The WWDC event is the typical showcase for the company’s biggest and most impactful products and, so far, 2024 has been a relatively quiet year for Apple.

Meanwhile, the company’s largest competitor, Microsoft, has had a metaphorical liscene to print money ever since it partnered up with AI sector leader OpenAI. As of current, Microsoft has a commanding lead as the world’s most valuable company by market capitalization with a total value of $3.019 trillion against Apple’s second place score of $2.614 trillion.

Related: Doctors turn to Apple Vision Pro headset to practice surgery amid cadaver shortage

Prosecutors in Taiwan are recommending a minimum 20-year prison sentence for the four main suspects in the fraud and money laundering case related to the cryptocurrency trading platform ACE Exchange.

According to a local news report, the Taipei District Prosecutors’ Office indicted 32 people on fraud and money laundering charges, including ACE Exchange founder David Pan, his business partner, Lin Keng-hong, and prominent attorney Wang Chen-huan, who served as chairman of the exchange.

The prosecutors now believe that over 1,200 individuals were deceived, resulting in an estimated total loss of 800 million New Taiwan dollars (US$24.56 million). This is an increase from the previous estimated loss of 340 million New Taiwan dollars ($10.6 million).

According to the report, the increased scale of the losses justifies the sentence recommendation. The prosecutors also recommended at least 12 years for Wang, considering his status as a director of a well-known law firm and his alleged vital role in assisting the scheme.

In January 2024, Taipei City police arrested Pan and 14 others linked to the case, conducting raids at various sites, including Ace’s headquarters. Investigations revealed Pan’s association with the fraudulent crypto wallet service known as “Alfred” or “Afu wallet,” along with a related crypto card.

According to the prosecutors, in 2019, the suspects promoted investments in NFTC tokens, bitnature coins, mochange — a token from ACE Exchange, and other tokens, using white papers and promotional materials to enhance their credibility.

Related: Taiwan to introduce new digital currency laws in September: Report

During their promotional efforts, Pan and Lin aimed to develop ACE Exchange into Asia’s most comprehensive blockchain ecosystem for crypto trading. However, many investors experienced a sharp decline in token value. They were unable to convert them back to New Taiwan dollars as guaranteed, prompting them to file complaints for a legal investigation.

A Taiwanese court reportedly ruled that the defendant’s property should be seized, with some confiscated assets amounting to at least 3.5 million New Taiwan dollars or $110,000.

In response to the indictment, Ace Exchange published a statement on April 8, reiterating that Pan and his fraudulent activity had nothing to do with the platform, as he reportedly ceased to be involved in day-to-day operations in 2022.

Ace Exchange is a lesser-known centralized crypto exchange based in Taiwan. According to data from CoinMarketCap, the platform was launched in late 2018 and trades around $14 million per day. According to data from Traders Union, Ace Exchange should be considered a “high-risk cryptocurrency exchange” with a trust score of 2.78 out of 10.

Magazine: Taiwan will review global trends before deciding on crypto ETFs