Hey, crypto champs! This is MelegaSwap, the world’s leading decentralized ecosystem. Welcome to the latest edition of the weekly cryptocurrency news roundup, where we will uncover the most interesting news about the crypto market from August 20th to 26th, 2023.
The #crypto market was pretty quiet this week, with most of the leading coins not moving much in either direction. But the once-popular meme coin Pepe ( $PEPE ) took a big hit after the crypto community raised concerns about a sudden change in the project's multi-signature wallet. And the struggling #FTX cryptocurrency exchange said it had been hacked and that the company's bankruptcy agent, Kroll, was investigating.
But there was some good news for crypto fans: Hashdex is using a new approach to filing its spot Bitcoin (BTC) ETF with the SEC, and some people are hopeful that this could be the first time a spot #BTC ETF is approved in the US.
There are more crypto news stories where that came from, so let's get into them!
TOP CRYPTO NEWS RECAP (AUGUST 20 - 26, 2023)
● Pepe Multisig Wallet Change Raises Rugpull Concern Among Investors
● New U.S. Crypto Tax Plan Eases Rules for Miners but Catches ‘Certain’ Decentralized Exchanges
● FTX Reports Security Breach Involving Bankruptcy Agent Kroll
● USDC Stablecoin Prepares To Launch on Six Additional Blockchains
● Hashdex Files for Spot Bitcoin (BTC) ETF With a Different Approach
● Bitstamp Suspends Ethereum (ETH) Staking in the United States
Pepe Multisig Wallet Change Raises Rugpull Concern Among Investors
Popular meme-coin Pepe (PEPE) has plunged by about 20% in 4 days due to alarming events, unsettling the cryptocurrency community. Concerns about a multisig wallet's security, unusual token transfers, and the specter of a potential "rug pull" by the developers have emerged.
A whole $16 million worth of Pepe tokens was transferred from developers' multi-signature wallets to various exchanges, sparking speculation of developers offloading holdings and destabilizing the token’s value. Changes to the wallet's security protocol, requiring only two out of eight signatures, further fueled concerns about a possible exit strategy by developers.
New U.S. Crypto Tax Plan Eases Rules for Miners But Catches 'Certain' Decentralized Exchanges
The U.S. Treasury Department has revealed its crypto tax plan, clarifying tax reporting obligations for the industry. The proposed rule introduces a new "broker" definition, including centralized crypto exchanges, payment processors, and some hosted wallet providers for tax obligations. Notably, miners are exempt from these rules.
However, "some" decentralized finance platforms will face reporting requirements. A new tax form, 1099-DA, will be introduced for these brokers. The crypto industry will have time to adapt, with a comment period and hearings before finalization, as the move addresses tax evasion risks while accommodating privacy concerns and technical issues.
FTX Reports Security Breach Involving Bankruptcy Agent Kroll
Crypto exchange FTX has encountered a cybersecurity breach involving claims agent Kroll, revealing limited, non-sensitive customer data of specific claimants tied to the ongoing bankruptcy case. FTX assured customers that account passwords, systems, and funds remain secure.
The exchange quickly communicated the breach via its X platform to customers, creditors, and the public. Kroll is informing affected parties about protective measures, while FTX clarified that the incident occurred at Kroll and its own systems were unaffected.
USDC Stablecoin Prepares to Launch On Six Additional Blockchains
USDC, the second-largest stablecoin, is set to expand its presence by launching on six additional blockchains, including Polygon PoS, Base, Polkadot, NEAR, Optimism, and Cosmos, bringing its total networks to 15. This move aims to enhance cross-chain interoperability, making USDC more accessible for seamless transactions. Meanwhile, the expansion aligns with growing regulatory clarity for stablecoins.
Hashdex Files for Spot Bitcoin (BTC) ETF With a Different Approach
Crypto asset manager Hashdex has applied a unique approach to a Bitcoin futures ETF that involves spot Bitcoin. Unlike previous filings, Hashdex won't rely on the Coinbase surveillance sharing agreement but will acquire spot Bitcoin from the CME market's real-world exchanges.
This approach could align with the SEC's concerns about manipulation and liquidity. Hashdex's strategy involves using EFRP transactions to exchange futures contracts for comparable spot exposure. Experts suggest higher chances of SEC approval due to regulatory pressure.
Bitstamp Suspends Ethereum (ETH) Staking in the United States
Bitstamp, a major crypto exchange, is stopping Ethereum (ETH) staking for its US users on September 25 due to regulatory uncertainties. Users have until the deadline to earn rewards on their staked ETH. This decision follows Bitstamp's suspension of trading for seven altcoins, including Polygon and Solana, declared "unregistered securities" by the SEC. The move aligns with a trend of exchanges adjusting services due to regulatory challenges in the United States.
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