• The fall of Silicon Valley Bank had a convenient deus ex machina to fix collateral damage.
• Crypto cannot expect the same, according to legal partners Jess Cheng and Amy Caiazza.
• There are important lessons for the crypto community to consider given recent banking system instabilities.

The Fall of Silicon Valley Bank

The fall of Silicon Valley Bank had a convenient deus ex machina to fix collateral damage. Despite headlines not revolving around crypto, there are important lessons for the crypto community to consider, especially as recent instabilities in the banking system have once again prompted cries that decentralized finance can solve many of the problems raised by traditional banking and incumbent financial systems.

Crypto Cannot Expect Same Help

Wilson Sonsini Goodrich & Rosati partners Jess Cheng and Amy Caiazza write that crypto cannot expect the same help from a deus ex machina as SVB did. In “Superman: The Movie”, our eponymous hero flies so quickly around the world that he turns back time and undoes a confluence of disastrous events where a nuclear missile detonated in the San Andreas Fault, showing how convenient it would be if such solutions were available for real-world situations as well.

Measures Taken by Treasury Department, Federal Reserve & FDIC

When it came to SVB’s closure, however, real-world measures needed to be taken by Treasury Department, Federal Reserve and FDIC on March 12th in order to “strengthen confidence in the U.S. banking system” following this dramatic closure.

Important Lessons for Crypto Community

Cheng and Caiazza explain why crypto cannot expect such help from a deus ex machina: though extraordinary measures were taken in this case, they suggest there is an important lesson here for all those involved with cryptocurrency; namely that a collapse within traditional banking does not necessarily make cryptocurrency any more trustworthy or reliable than it already was before this incident occurred.

Conclusion

Crypto users need to remain vigilant when using digital currency services and take necessary steps such as using strong passwords and two factor authentication (where available) in order to protect their accounts from cybercriminals or other malicious actors who may seek access without authorization or permission.

• Starbucks Odyssey released its first limited edition NFT drop, The Siren Collection, which sold out in 18 minutes.
• Members of the Starbucks Odyssey rewards program were able to purchase two Stamps for $100 each.
• Despite some technical issues, secondary sales of the Stamps quickly soared past $550.

Starbucks Odyssey Launches First NFT Drop

Starbucks Odyssey, the company’s Web3 loyalty program, recently released its first limited edition non-fungible tokens (NFT), which it calls „Stamps“. The 2,000-item „Siren Collection“ features a version of the company’s iconic Siren was available to members at a price of $100 per stamp.

Odyssey Beta Program

The program is still in invitation-only beta and allows users to complete activities such as quizzes and in-store purchases to earn Stamps that can be collected or resold on Nifty Gateway. Members were able to buy two stamps each starting at 12 p.m ET and could pay by credit card or by connecting their MetaMask wallet.

Issues With Launch

Despite some initial problems with access and error messages due to an influx of traffic, the collection sold out in 18 minutes and secondary sales quickly soared beyond the original price point. As of this update, the floor price for a Siren Stamp has already passed $550.

Summary Of Results

Despite some technical difficulties during launch, Starbucks Odyssey’s first NFT drop proved highly successful with all 2,000 Stamps selling out within 18 minutes and prices continuing to climb on secondary markets after launch.

Conclusion

The success of this NFT drop indicates that there is high demand for rare digital assets such as these and showcases how brands can leverage blockchain technology to create unique experiences for their customers through loyalty programs like Starbucks Odyssey.

• Three U.S. senators have accused Binance, the world’s largest crypto exchange, of being a “hotbed of illegal financial activity” in a letter sent to the exchange’s CEO Changpeng Zhao.
• The group requested details from Binance about its balance sheets, internal procedures and any communications about alleged efforts by Zhao to limit compliance.
• Binance is reportedly bracing itself for significant fines for past conduct.

U.S Senators Accuse Binance of Illegal Financial Activity

Three U.S senators have written to Binance, accusing the world’s largest crypto exchange of being a „hotbed of illegal financial activity“. Sens Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.) and Roger Marshall (R-Kansas) requested details from Binance regarding its money-laundering controls, balance sheets, internal procedures and any communications related to alleged efforts by CEO Changpeng Zhao to limit compliance.

Allegations Against Binance

The senators allege that Binance and related entities “have purposefully evaded regulators, moved assets to criminals and sanctions evaders and hidden basic financial information from its customers and the public“. They further ask for more information on how exactly Binance intends to comply with anti-money laundering laws going forward.

Binance’s Response

A spokesperson for the exchange told CoinDesk that they “always respond“ to queries from regulatory bodies accordingly. However, the spokesperson declined further comment on this particular incident due to it being an ongoing situation.

Regulatory Scrutiny in Crypto Space

This latest move against Binance highlights increased regulatory scrutiny against cryptocurrency companies in recent months amid concerns over inadequate anti-money laundering measures in the space resulting in greater risk of fraud or criminal activities taking place through these exchanges.

Outlook For Crypto Exchanges

Crypto exchanges should remain cognizant of changing regulations around money laundering control measures as more governments are likely to continue tightening their grip over this sector going forward in order ensure consumer protection as well as maintain investor confidence within this emerging industry

Summary of the Article

• Sam Bankman-Fried’s lawyers are attempting to quash a subpoena issued by Voyager Digital, claiming that it is procedurally deficient and potentially violates Bankman-Fried’s Fifth Amendment rights.
• The subpoena was served on his mother, Barbara Fried, rather than Bankman-Fried himself.
• Lawyers for Voyager’s creditors are looking into the attempt of FTX exchange (which was run by Bankman-Fried) to bail out the crypto lender when it filed for bankruptcy protection in July.

Bankman-Fried’s Lawyers Move To Quash Subpoena

Sam Bankman-Fried’s lawyers have moved to quash a subpoena issued by Voyager Digital. The subpoena was intended for Bankman-Fried but served on his mother, Barbara Fried. The attorneys claim that this is procedurally deficient and presents an undue burden as well as potentially violating Bankman-Fried’s Fifth Amendment rights.

Voyager Creditors Investigating Attempt To Bail Out Crypto Lender

Voyager Digital’s creditors are investigating an attempt made by the FTX exchange (which was run by Sam Bankman-Fried) to bail out crypto lender Voyager Digital when it declared bankruptcy protection in July. The specific type of subpoena used is called a Rule 45 subpoena which requires documents for inspection and copying from the named individual. Substitute service is not permitted with this type of subpoena.

Subpoena Places Undue Burden On Bankman-Fried

The filing states that the subpoenas places an undue burden on Sam Bankman-Fried as it gives him only one business day to produce 49 separate documents and only four days notice of appearance. Compliance with this could also violate his Fifth Amendment rights under U.S Constitution which protects against self incrimination as all requests call for documents relevant to criminal case where loans from/to Alameda are at stake.

„Procedurally Deficient“ Subpoena Moves To Be Quashed

In response, Sam Bankman- Friedman’s legal counsel believes that leaving the said subpoena in possession of Barbara Fried does not satisfy the Rule 45 requirement for personal service thus making it „procedurally deficient“. They further add that substitute service is generally not permitted to serve Rule 45 subpoenas either; hence they ask for these proceedings be quashed immediately due its inability to meet procedural requirements, placing undue burden and potential violation of Fifth Amendment rights.

Conclusion

Therefore, Sam Bankson Friedman’s lawyers have submitted their motion in court asking it be quashed due its procedural deficiencies, potential violation of Constitutional Rights and imposing too much burden on Mr Bankson Friedman

• Bitcoin and Ether prices dropped on Monday due to investor concern over inflation data and stablecoin regulation.
• The New York Department of Financial Services ordered Paxos to stop minting new Binance USD tokens, resulting in a drop in value against its rival tether (USDT).
• Investors will be watching the U.S. Federal Reserve’s consumer price index (CPI) report tomorrow to determine the size of the central bank’s next interest rate hike.

Cryptocurrency Prices Drop

Bitcoin and ether, two of the largest cryptocurrencies by market capitalization, both slid on Monday as investors grew concerned with inflation data and stablecoin regulation. Bitcoin was down 1.4% trading at around $21,640 while ether fell below $1,500.

New York Department of Financial Services Orders Paxos to Stop Minting BUSD Tokens

The New York Department of Financial Services issued an order to Paxos mandating that it stop minting new Binance USD tokens (BUSD). This resulted in BUSD falling to 0.9950 cents against its rival tether (USDT) on the Binance exchange according to crypto data firm Kaiko.

U.S Federal Reserve’s Consumer Price Index Report

Investors are keeping an eye out for Tuesday’s consumer price index (CPI) report from the U.S Federal Reserve which is expected to give insight into how monetary policy impacts inflation and possibly predict the size of the central bank’s next interest rate hike. The CPI currently stands at 6.5%, indicating some downward momentum that has pleased riskier asset markets but Fed governors remain worried about over-tightening money supply and causing harm to economic growth.

Kraken Agrees To Pay $30 Million Fine in SEC Settlement

Bitcoin experienced significant drops this past week after Kraken agreed to shutter its staking service in the United States and pay a $30 million fine as part of a settlement with the U.S Securities and Exchange Commission (SEC). BTC had recently changed hands above $24,000 but now analysts are predicting that it may find support at $20,000 in upcoming weeks due to recent events impacting market sentiment negatively.

Conclusion

Overall cryptocurrency markets have been bearish this month with bitcoin losing roughly a quarter of its January gains and ether dropping below $1500 as investors worry about factors such as inflation data, stablecoin regulations and restrictions imposed by government agencies like the SEC on exchanges like Kraken could continue driving prices lower in coming weeks ahead of Tuesday’s CPI report from the Federal Reserve which could provide more clues as to future monetary policy decisions taken by central banks globally affecting crypto markets going forward

• The U.S. Trustee has opposed a plan by FTX and creditors to subpoena its founder Sam Bankman-Fried, his family and senior staff of the bankrupt crypto exchange.
• This proposal would duplicate any independent examination of the exchange’s downfall, said U.S. Trustee Andrew Vara in a legal filing made Thursday.
• FTX filed for bankruptcy protection on Nov. 11, with new CEO John Ray replacing Bankman-Fried who resigned as CEO the same day.

FTX Files for Bankruptcy

On November 11th, 2020, FTX filed for bankruptcy protection and its founder Sam Bankman-Fried resigned as CEO to be replaced by restructuring expert John Ray.

U.S Trustee Opposes Subpoenas

Proposals for FTX and a committee of its creditors to subpoena Bankman-Fried, his immediate family and senior staff have been opposed by the U.S Trustee – a branch of the Department of Justice dealing with bankruptcy – due to potential duplication of an independent examination into the exchange’s downfall which has yet to be appointed by a court hearing set for Monday February 3rd 2021.

Key Witnesses Not Cooperating

FTX stated that potentially key witnesses are not cooperating with requests for information such as co-founder Gary Wang and head of FTX’s trading arm Alameda Research, Caroline Ellison who have both expressly declined providing requested information about more than $300 million allegedly misappropriated from the company before its collapse.

U.S Government Objects Proposal

The U.S Government objected this proposal stating that plans set to be discussed at Wednesday’s hearing would duplicate any independent examination if an examiner is appointed after Monday’s hearing; thus they have ‘an obligation to prevent unnecessary expenditures in the administration of an estate.‘

Conclusion

In conclusion, FTX filed for bankruptcy on November 11th 2020 and proposals put forward by creditors to subpoena founder Sam Bankman-Fried have been objected by U.S Government due to potential duplication with any future independent examinations which may take place following Monday’s hearing into appointing an examiner if necessary

• Rep. French Hill (R-Arkansas) is the chairman of the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion.
• The subcommittee plans to prioritize the regulation of stablecoins as its first task.
• Rep. Hill believes that a federal privacy statute should also be pursued in order to ensure secure and reliable digital asset operations.

The U.S. House of Representatives has recently established the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, which is chaired by Rep. French Hill (R-Arkansas). On Thursday, Hill spoke to CoinDesk TV’s „First Mover“ about the subcommittee’s priority of regulating stablecoins.

Stablecoins, which are backed by an asset such as a fiat currency, provide a stable store of value for users and are increasingly being adopted by businesses and consumers alike. As such, it is important that the use of these digital assets is regulated in order to ensure secure and reliable operations. The subcommittee plans to take the lead on this issue and use the recently drafted stablecoin regulations as a model for how it will approach the regulation of digital assets moving forward.

In addition to the regulation of stablecoins, Rep. Hill also believes that a federal privacy statute should be pursued. This would help protect the data of users, ensuring their safety and security when dealing with digital assets. This would also help ensure that companies dealing with digital assets can do so in a compliant and secure manner, which is important for the continued growth of the industry.

Overall, the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion is taking a proactive approach to the regulation of digital assets, with the regulation of stablecoins being the first priority. This is a positive step forward for the industry, as it will move towards a more secure and reliable environment for users. Additionally, the pursuit of a federal privacy statute will help to further protect users and ensure that companies dealing with digital assets are compliant with all regulations.

• Porsche has halted its troubled NFT mint early due to criticism of the collection’s launch.
• The secondary market price of the NFTs has more than doubled from its mint price.
• The tokens are now trading for a floor price of 3.3 ETH, or roughly $5,200.

Porsche has recently made headlines for its entry into the realm of non-fungible tokens (NFTs). On Monday, the German automaker launched a collection of 7,500 tokens modeled after the famed 911 sports car, with each token priced at 0.911 ether (ETH), or roughly $1,420. Unfortunately, the launch was not as successful as Porsche had hoped, as the secondary market quickly responded with criticism of the high supply and price. In response, Porsche decided to halt its mint early, leading to a supply shock and an increase in the price of the tokens.

On Tuesday, Porsche announced that it would end its mint with only 2,363 tokens created, leaving a much smaller supply than originally intended. This supply shock had an immediate impact on the market, with the floor price of the tokens rapidly increasing. According to data from OpenSea, the tokens are now trading for a floor price of 3.3 ETH, or roughly $5,200. This is more than double their original mint price and a testament to the power of the secondary market.

The launch of Porsche’s NFT collection is a reminder of the importance of understanding the nuances of the Web3 economy. The secondary market is often quick to react and issues such as supply, price, and branding can have a major impact on the success of a project. As the non-fungible token space continues to grow, it will be important for brands to understand the power of the secondary market and the impact that it can have on their projects.

•Pantera Capital, a venture capital firm with $3.8 billion in assets under management, has released its 2023 forecast: the future is DeFi.
•The bear market was worsened by a wave of exploits and bankruptcies, including the FTX implosion and Genesys Capital filing.
•Ripple’s SVP of Global Customer Success, Brooks Entwistle, joins „First Mover“ to discuss the payment protocol’s crypto and blockchain predictions for 2023, with a focus on the real-world utility from NFTs to CBDCs.

Crypto-focused venture capital firm Pantera Capital is predicting the future of the blockchain and digital asset industries, and the forecast is DeFi. With $3.8 billion in assets under management, the firm has issued its 2023 crypto forecast, emphasizing the need for transaction fees, liquidity and usability.

The bear market that began in early 2020 was further exacerbated by a wave of headline-grabbing exploits and bankruptcies, ranging from the implosion of the multibillion-dollar centralized exchange FTX to the filing by crypto lender Genesys Capital last week. The news has done little to dampen the enthusiasm for the DeFi sector, however, as it continues to evolve and attract new users.

In order to better understand the current state of the blockchain and digital asset industries, and the potential for future development, Ripple’s SVP of Global Customer Success, Brooks Entwistle, recently joined „First Mover“ to discuss the payment protocol’s crypto and blockchain predictions for 2023. Entwistle highlighted the importance of the real-world utility of digital assets, from NFTs to CBDCs, and how these can help drive the industry forward. He also discussed the SEC lawsuit against Ripple, as well as Ripple’s partnership with Solana and Global Blockchain Business Council to explore crypto-based solutions for climate change.

Pantera Capital’s prediction of a future in decentralized finance is an exciting one, and one that the firm believes is well on its way to becoming a reality. With the increasing focus on real-world utility, the rise of NFTs, CBDCs and other digital assets, as well as the continued development of the DeFi sector, the future of the blockchain and digital asset industries looks to be a bright one.

• Timothy Stranex, co-founder and CTO of cryptocurrency exchange Luno, departed in December.
• He was replaced by Simon Ince, Luno’s vice president of engineering.
• Luno, owned by Digital Currency Group, has over 10 million customers worldwide.

Cryptocurrency exchange Luno recently announced the departure of its co-founder and chief technology officer (CTO), Timothy Stranex, in December. With his departure, Luno appointed Simon Ince as its new CTO.

Stranex had co-founded Luno in 2011 with Carel van Wyk, Pieter Heyns, and current CEO Marcus Swanepoel. During his time at the company, Stranex served as its CTO and had been responsible for creating the company’s technology and engineering capabilities.

Luno is owned by Digital Currency Group (DCG), and has over 10 million customers in countries such as Singapore, Cape Town, Johannesburg, Lagos, and Sydney. The company’s mission is to make digital payments easier, faster, and more secure by providing users with an accessible platform to buy, sell, store, and trade cryptocurrency.

Ince, who previously served as Luno’s vice president of engineering, has been brought on board to fill Stranex’s role as CTO. He has worked in the technology industry for over 20 years, and previously held senior positions at companies such as Microsoft and Google.

Commenting on his appointment, Ince said, “I am so excited to be joining Luno as the new CTO. We have a wonderful and talented team, and I am looking forward to leading the engineering and technology efforts going forward.”

Luno’s CEO Swanepoel added, “We are delighted to welcome Simon to the team. His extensive experience in engineering and technology will be invaluable in our mission to make it easier, faster, and more secure for people to buy, sell, store, and trade digital currencies.”

Stranex, who is now pursuing personal projects, said of his departure, “I have hugely enjoyed my time with Luno, and am proud of what we have achieved. I am confident that Simon will do an amazing job leading Luno’s technology and engineering teams and I am excited to see what they will achieve in the coming years.”