Crypto News Headlines (23-Feb-2023)

Solana was not immune to the fallout in crypto markets in 2022 and the collapse of FTX had an inordinate impact on the blockchain’s ecosystem in terms of market sentiment given the network’s historical relationship with the now-defunct exchange, Coinbase (COIN) said in a research report Wednesday.

The Solana community was as stunned by the collapse of FTX as the broader market, the report said, noting that founder Anatoly Yakovenko believed that the blockchain’s “perceived linkages” with FTX have historically been overstated.

“Nevertheless, the fundamental value proposition of the Solana protocol persists from a technical perspective,” wrote analyst Brian Cubellis. As a “blockchain optimized for high throughput, de minimis costs and native scalability,” it represents a “legitimately differentiated approach within the layer 1 landscape,” he added.

The first Finance Ministers and Central Bank Governors Meeting of G20 under India’s presidency, taking place from February 23 to 25 at Bengaluru, is expected to discuss cryptocurrencies, among other issues, Reuters said in a report.

Indian Finance Minister Nirmala Sitharaman, who plays the host, earlier said that the group is exploring if it can collectively regulate cryptocurrencies.

Pitch for Common Regulations

“We are talking with all nations, if we can make some standard operating procedure which is followed by everyone to make a regulatory framework, and if it can be effective,” Reuters quoted her in a February 11 report.

In the past week or so, crypto-themed groups on Russia’s state-controlled social network Vkontakte (VK) have been seeing a growing number of comments seeking to discredit cryptocurrencies and related technologies, the crypto news outlets and RBC Crypto reported.

The comments appear under posts and linked articles about crypto assets. They are all similar, for example: “It’s more expensive to delve into crypto, it’s always big risks,” “Someone still talks about bitcoins?” or “People who buzz about crypto don’t even understand it.”

According to Nikita Zuborev, senior analyst at the exchange aggregator, these bots first appeared in his platform’s community and official page on Vkontakte on Feb. 13. The accounts are typical for such attacks and are only recently registered or stolen dormant accounts.

Cryptocurrency exchange Coinbase signaled yesterday that it’s not backing away from its NFT venture anytime soon. That’s despite a drastic drop in volume over time and fresh scrutiny from shareholders.

After the company reported higher-than-expected sales and a loss of $577 million for its final fiscal quarter of last year, Coinbase fielded a series of questions about the business’s health on an earnings call with investors and analysts.

One question raised by shareholders focussed on the exchange’s NFT venture, a platform that was launched last spring. It asked Coinbase to disclose how much money the company’s lost related to its NFT marketplace and how it plans “to reduce the burn” that comes with operating the business.

Kim Kardashian, Floyd Mayweather and other celebrities are looking to convince a judge to dismiss another revised attempt to hold them liable for allegedly promoting EthereumMax (EMAX) without proper disclosure.

The celebrities asked a California federal judge to dismiss a second amended complaint from EthereumMax investors filed in December 2022. According to the defendants, the renewed allegations push the “same basic theory” forward that the court had previously dismissed.

The investors’ class-action lawsuit runs on the premise that the EthereumMax team worked with the celebrities to sell EMAX tokens to investors in what they describe as a “pump-and-dump” scheme.

Bitcoin Core developer, Marco Falke – the platform’s most prolific contributor – will step down from his maintainer role this summer, he wrote in a tweet published Feb. 21.

Falke racked up more than 2,000 suggested software changes known as “commits” over his seven-year tenure as a Bitcoin Core contributor. For three of those seven years, Falke’s efforts were funded by crypto exchange Okcoin and Web3 investment firm Paradigm.

The storied developer reaffirmed his passion for Bitcoin and said he was “positive about the future,” but that his role was no longer a good fit.

DZ Bank, Germany’s second-largest lender by assets after Deutsche Bank, has tapped Swiss firm Metaco for its digital asset custody services.

This is the fourth such partnership Metaco has made with major financial institutions in the last eight months. The deal follows pacts with Citibank (C), Societe Generale (GLE) and DekaBank in selecting the Lausanne, Switzerland-based firm to develop digital asset offerings for institutional clients.

DZ will use Metaco’s custody tech platform Harmonize to handle its crypto services for institutional clients.

“With the offering we can build by using this technology, we trust to create a durable and fast-growing business cooperation as well as an attractive solution for our clients that can also meet the requirements of digital currencies and decentralized financial instruments,” said Nils Christopeit, DZ’s digital custody design solution lead.

The Russian Bureau of Interpol has arrested a British man wanted by Interpol at the request of the United States, the Russian Telegram channel Baza revealed. Authorities in the U.S. claim he was assisting North Koreans in efforts to circumvent sanctions using crypto.

The 31-year-old Christopher Emms, who is accused of committing fraud against the U.S. government, was detained in the hostel where he was staying. The International Criminal Police Organization issued a ‘red notice’ arrest warrant for him in the beginning of February. Its announcement details:

Christopher Douglas Emms is wanted for allegedly conspiring to violate the International Emergency Economic Powers Act (IEEPA).

The Canadian Securities Administrators (CSA)—made up of securities regulators from each of the 10 provinces and 3 territories in Canada—have published a long list of new requirements for crypto companies wishing to stay legally compliant, and stablecoin platforms are clearly in the agency’s crosshairs.

Crypto asset trading platforms within the country will now be prohibited from allowing customers to buy or deposit stablecoins, or other “Value Referenced Crypto Assets” (VRCAs), without the CSA’s prior written consent. Obtaining consent means meeting the administrators’ many due diligence requirements, including ensuring that the stablecoin is fiat-backed.

Cryptocurrency exchange CoinEx has been sued by New York Attorney General Letitia James, who alleges the firm falsely represented itself as an exchange by failing to register as a securities and commodities broker-dealer in the state.

A 38-page petition filed by James in the New York Supreme Court on Feb. 22 alleged CoinEx “engaged in repeated and persistent fraudulent practices” and violated the state’s Martin Act — considered one of the most strict anti-fraud and securities regulation laws in the United States.

She also asserted CoinEx listed various tokens that qualified as “both commodities and securities,” naming Amp

AMP tickers down $0.01, LBRY Credits (LBC), Rally (RLY) and Terra LUNA tickers down $1.75.