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Bitmain Invests $53.9 Million in Core Scientific to Support Mining Operations
According to CryptoPotato, Core Scientific, Inc., a leading provider of high-performance blockchain computing data centers and software solutions, has announced a $53.9 million investment from Bitmain, a global leader in manufacturing digital currency mining servers. This investment strengthens the existing relationship between the two companies. Bitmain and Core Scientific have agreed to acquire new Bitcoin mining equipment and establish a new hosting agreement, demonstrating Bitmain's ongoing commitment to the North American digital asset mining sector. Max Hua, CEO of Bitmain, expressed enthusiasm about strengthening their strategic partnership with Core Scientific, a trusted U.S.-based collaborator. He praised Core Scientific's professionalism, integrity, and commitment to the success of their hosting customers and their contribution to the growth of the Bitcoin Network. Under the terms of the purchase agreement, Bitmain will provide Core Scientific with 27,000 Bitmain S19J XP 151 TH bitcoin mining servers. In return, Bitmain will receive $23.1 million in cash and $53.9 million in Core Scientific common stock. The per-share value of the stock will be determined in line with a bankruptcy court-approved Chapter 11 reorganization plan, which is expected to receive approval in the fourth quarter of this year. The S19J XP operates at a high-efficiency level of 21.7 Joules per TH/s. Adam Sullivan, CEO of Core Scientific, expressed his honor in expanding their significant partnership with Bitmain. He emphasized their joint efforts to professionalize the industry and pave the way for the long-term growth of the Bitcoin Network, especially in light of increasing Bitcoin adoption worldwide. Core Scientific has managed over 600,000 Bitmain miners across its data centers since its operation. Currently, 99% of the over 200,000 miners in operation, owned by Core Scientific and hosted for customers, are Bitmain S19 models. The 27,000 units from the agreement are expected to be received and activated in the fourth quarter of 2023, potentially adding 4.1 exahashes to Core Scientific's self-mining hash rate. Additionally, the two companies have agreed to collaborate on upgrading Bitmain's prior-generation miners hosted at Core Scientific's data centers with S19J XP servers, further increasing the total hash rate. As of August 31, 2023, Core Scientific operated approximately 206,000 bitcoin miners for colocation and self-mining, generating a total energized hash rate of 22.0 exahashes per second. Its self-mining activities produced 965 bitcoin in August and 9,755 BTC year through August 31, surpassing any other listed bitcoin miner in North America.
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Ex-Deutsche Bank Executive Pleads Guilty to Crypto Fraud Charges
According to CryptoPotato, Rashawn Russell, a former investment banker and registered broker at Deutsche Bank, has pleaded guilty to charges relating to investment fraud after orchestrating a cryptocurrency scheme to swindle investors. The United States Department of Justice (DOJ) announced Russell's guilty plea in a press release on Sept. 19, 2023. As part of the plea deal, Russell will pay restitution of more than $1.5 million and could face up to 30 years in prison upon sentencing. Russell operated a cryptocurrency investment fund called R3 Crypto Fund between November 2020 and August 2022, which promised to help investors get handsome rewards for their crypto investments. However, the 27-year-old former investment banker allegedly misappropriated users' assets, using the money gathered to repay older investors and also for personal use and gambling. According to prosecutors, Russell was able to deceive users by creating a fake document falsely showing significant liquidity. The fraudulent crypto fund managed to swindle $1.5 million from unsuspecting investors. In addition to the crypto fund, the ex-Deutsche executive was also involved in an identity theft scheme between September 2021 and June 2023 by fraudulently acquiring credit cards and access to other devices using the names of third parties to carry out unauthorized transactions. Russell also pleaded guilty to engaging in identity theft. While Deutsche Bank was not accused of any wrongdoing and did not offer any comment following Russell's arrest, the German financial institution pledged to cooperate with law enforcement during its investigations. The investment bank recently partnered with Swiss startup Taurus to offer digital asset custody and tokenization services to clients.
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Singapore Police Seize Over S$2.4 Billion in Assets in Money Laundering Probe
According to CryptoPotato, the Singapore Police Force has confiscated more assets in relation to an ongoing money laundering investigation, bringing the total value of seized funds to over S$2.4 billion ($1.76 billion). The reported figure has doubled since the first operation in August. In a statement published on September 20, the police force announced that the additional asset seizures occurred following further operations. The assets seized so far include over S$76 million in cash, S$38 million ($27.8 million) worth of cryptocurrency, 294 luxury bags, 546 pieces of jewelry, 68 gold bars, 204 electronic devices, and 164 luxury watches, valued at over S$1.127 million ($825,000). The number of properties and vehicles issued prohibition disposal orders has increased to 110 and 64, respectively, with a combined value of S$1.2 million (~$879,000). The ongoing money laundering case is considered one of Singapore's largest crackdowns, involving 10 foreign nationals of Chinese origin with passports from Cyprus, Turkey, Cambodia, Ni-Vanuatu, and China. In August, authorities raided various residences and arrested the foreigners who allegedly laundered funds from criminal proceeds and committed forgery. While the suspects have been arrested, the police said about eight others were still at large, and 12 people were assisting with the case. At the time, the value of cash and assets frozen was worth more than S$1 billion ($737 million). The figure later increased to S$1.8 billion in September, according to prosecutors, following more investigations.
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CoinGecko Report Presents Contrasting Perspective on NFT Demise Rumors
According to CryptoPotato, a recent CoinGecko report offers a contrasting perspective on the rumored demise of non-fungible tokens (NFTs). The NFT sector has experienced a significant slump due to the broader market downturn, but CoinGecko's data suggests that interest in NFTs remains strong. Nakamigos is currently the most popular NFT on CoinGecko, with 1,234 users adding it to their watchlists. Yuga Labs' Bored Ape Yacht Club (BAYC) follows closely behind with 1,076 users, while CyberKongz and bitmap have 867 and 851 watchlist entries, respectively. Among NFTs launched in 2022, Pixelmon has gained the most attention, particularly after the project's revival, and now sits on 786 user watchlists. CoinGecko's data also reveals that all of the top 30 most sought-after NFT collections have garnered the attention of 400 or more users who have added them to their watchlists. NFTs created in 2021 continue to maintain their strong appeal, occupying 12 out of the top 30 spots on CoinGecko's popularity rankings. The aggregator stated that these 2021 NFTs managed to remain relevant over time, demonstrating resilience in terms of their reputation and community support. As of now, 2023 NFTs hold nine positions within the top 30, edging out their 2022 counterparts, which account for eight slots. This trend may suggest that 2022 was a challenging year for NFT collections, offering a slightly more optimistic outlook for 2023. With several months remaining in the year, it remains uncertain whether more 2023 NFT collections will rise in popularity. Despite the prolonged bear market, CoinGecko's latest report suggests that not much has changed, with a majority of the most popular collections still being Ethereum NFTs, comprising 24 out of the top 30 rankings.
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CREAM Token Surges 82% Following 3-Year Staking Contract Launch
According to Coincu, Cream Finance, a decentralized lending protocol, has seen its token, CREAM, surge by 82% following the release of its 3-Year Staking contract. On September 24, Spot On Chain reported that Cream Finance disbursed 241,415 CREAM tokens, valued at $4.27 million, to 19 different addresses over the past 10 hours. Prominent figure Huang Licheng, also known as Machi Big Brother, received the majority of the tokens, obtaining 215,236 CREAM tokens worth $3.8 million, and subsequently staked them. In addition to Huang's involvement, 13 other addresses have sold 5,409 CREAM tokens, valued at $99,200, through various platforms such as Binance, Gate, or decentralized exchanges (DEX). Cream Finance is part of the expanding decentralized financial ecosystem and is positioned as an open-source, permissionless, and blockchain-agnostic protocol. It aims to provide access to financial services for institutions, individuals, and other protocols. However, caution is advised, as short-term price fluctuations may not signify sustainable growth. Huang Licheng recently withdrew from a lawsuit involving on-chain detective ZachXBT, which brought to light allegations of embezzlement related to Huang's previous involvement in crypto projects. Huang has vehemently denied these accusations. As Cream Finance continues to make waves in the crypto space, investors are advised to exercise prudence in response to volatile price movements and ongoing controversies surrounding key figures like Huang Licheng.
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Federal Reserve Releases Working Paper on Asset Tokenization and Risk-Weighted Assets
According to CryptoPotato, the Federal Reserve has published a comprehensive working paper examining asset tokenization and Risk-Weighted Assets (RWA). As the financial landscape evolves, these innovative financial instruments are attracting significant attention for their potential to transform investment strategies and reshape traditional markets. The paper outlines that tokenization, similar to stablecoins, consists of five core components: a blockchain, a reference asset, a valuation mechanism, storage or custody, and redemption mechanisms. These elements establish connections between crypto markets and reference assets, enhancing understanding of their impact on conventional financial systems. As of May 2023, the estimated market value of tokenized assets on permissionless blockchains is $2.15 billion. This valuation includes tokens issued by decentralized protocols like Centrifuge and established companies such as Paxos Trust. Despite the challenge of obtaining comprehensive time-series data due to variability in tokenization designs and levels of transparency, DeFi Llama data reveals a growing trend in tokenization within the DeFi ecosystem. Asset tokenization offers access to previously inaccessible or costly markets, such as real estate, where investors can acquire shares in specific properties. Its programmable nature and smart contract capabilities allow liquidity-saving mechanisms in settlement processes, enhancing efficiency. Tokenizations also enable lending using tokens as collateral, providing a new financing avenue. Transactions involving tokenized assets settle more quickly than traditional reference assets, potentially revolutionizing settlement processes in the financial industry. However, there are concerns regarding financial stability. The potential for growth in tokenized markets raises concerns about fragility within crypto-asset markets and implications for the traditional financial system. The primary long-term concern focuses on the interconnections between the digital asset ecosystem and the traditional financial system through tokenization redemption mechanisms. In instances where reference assets lack liquidity, stress transmission vulnerabilities may arise. This risk mirrors concerns raised in the ETF market, where the paper explains that liquidity, price discovery, and volatility of ETFs closely align with their underlying assets. As tokenization expands, traditional financial institutions may become increasingly exposed to crypto-asset markets through direct ownership or collateralization, introducing new dynamics and interconnections that could influence market behaviors in unforeseen ways.
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Lumerin Unveils Decentralized Bitcoin Hash Rate Market on Arbitrum
According to Coincu, Lumerin has launched a decentralized Bitcoin hash rate market on the Arbitrum network, aiming to disrupt the Bitcoin mining industry by offering decentralization, operational risk management, and dynamic hashpower control. The choice of Arbitrum ensures a superior user experience, faster transactions, and reduced gas fees, making Bitcoin hash rate trading more accessible and liquid while promoting decentralization in the mining sector. Lumerin's hash rate marketplace offers several benefits that can reshape the landscape of Bitcoin mining, including decentralization, operational risk management, dynamic hashpower management, and arbitrage opportunities. By opening a market where anyone can seamlessly buy, sell, and trade computing power, Lumerin's platform reduces the dominance of a few major players in the Bitcoin mining space. Businesses operating within the sector can now manage operational risk more effectively by setting fixed prices, providing predictability in earnings, and reducing the need for substantial investments in rapidly depreciating mining equipment. The selection of Arbitrum as the platform for Lumerin's hash rate marketplace is strategic, offering several advantages such as a superior user experience, faster transaction processing, and reduced gas fees. These benefits contribute to making Bitcoin hash rate trading more liquid and accessible to a broader range of participants. By launching this pioneering platform, Lumerin aims to usher in a new era of transparency, efficiency, and inclusivity in the Bitcoin mining sector, empowering a wider community of participants and reducing the centralized control that has historically dominated the industry.
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