Crypto News Headlines (27-Sep-2022)

Financial services firm Galaxy Digital (GLXY.TO) has teamed up with Chainlink Labs to bring crypto pricing data to blockchains.

The initiative will utilize Chainlink’s oracle network, and the data will be directly distributed to multiple blockchain applications including those in the DeFi ecosystem.

“Blockchains don’t come preloaded with external data, so we’re providing reference prices for spot digital assets that will be able to power a variety of complicated financial structures that only have traditionally been the domain of our existing financial system,” Zane Glauber, Galaxy’s head of strategic opportunities, told CoinDesk.

The data contains spot prices for cryptocurrencies such as bitcoin (BTC) and ether (ETH), as well as other cryptocurrencies in various currency pairs, including dollars, according to a statement.

Glauber also told CoinDesk that the crypto reference data will aid developers that are building their DeFi primitive or DApp. “These reference prices are important as they can be embedded within smart contracts tied to lending, borrowing, options, futures and more to settle matters all on chain. The growth of these future products should help secure the growing total value locked on DeFi apps, supporting the future development of the ecosystem,” he added.

Almost a year after Binance blocked South African users from accessing its futures trading platform, the crypto exchange has said perpetual and delivery futures contracts are now available to eligible users from the country. In a statement, the crypto exchange told its users that the type of futures products being offered has “not changed from Binance’s previous futures offering in South Africa.”

The cryptocurrency exchange however said it had altered the way such product offerings are provided to South African users. As reported by News in October 2021, Binance said it would stop South African users from accessing its “futures, options, margin, and leveraged tokens products.”

The crypto exchange’s abrupt decision came shortly after a regulator, the Financial Sector Conduct Authority (FSCA) warned the public against having dealings with Binance. At the time, the regulator revealed that the crypto exchange was not authorized to offer any financial advice or render any intermediary services in South Africa.

The U.S. Securities and Exchange Commission has fined Tether’s former auditing firm, Friedman LLP, to the tune of $1.5 million, according to an order issued Friday.

The regulator found the accounting firm engaged in several instances of “improper professional conduct” in its audits of two companies from 2017 to 2020.

According to the SEC, Friedman LLP “failed to design and perform” appropriate audit procedures in its work with grocery chain iFresh, and also “did not exercise professional skepticism and due professional care” in its handling of another unnamed company’s audit.

While the order doesn’t mention Tether outright, the stablecoin issuer retained Friedman LLP as auditor from May 2017 to January 2018 before ending the relationship.

The SEC’s order said Friedman LLP, which did not admit or deny the SEC’s findings, had agreed to settle the charges and will pay approximately $1.5 million in fines, as well as implement training for staff.

Rich Dad Poor Dad Author Robert Kiyosaki has twisted on his official account warning the upcoming enormous crash will have serious effects on Bitcoin and other assets.

Robert Kiyosaki said on his Twitter that the largest financial cataclysm since the 1990s was due to the FED’s new monetary policies.

EVERYTHING BUBBLE into EVERYTHING CRASH. I warned in my books, the biggest crash has been building since 1990s. Rather than fix problems FED printed FAKE $. In Everything Crash everything crashes even gold, silver, BC. Your ultimate asset in giant crash, your financial wisdom

— therealkiyosaki (@theRealKiyosaki) September 26, 2022

Rich Dad Poor Dad author said that the US treasury policies are a vicious cycle without any value for the world’s financial development. These latest regulations from unreasonable borrowing amount to USD devaluing stifle and suppress all crypto investors.

Following, the best-seller suggests that BTC, gold, and silver are the best assets to hold in the bull market.

“1. US borrows too much money. 2. US keeps interest rates low. 3. Low interest rates forces US to borrow more $ to buy more US Bonds 4. to keep interest rates low 5. Causes inflation 5. Forcing interest rates up 6. Debt becomes too expensive 7. US dollar dying. BUY Gold-Silver-Bitcoin.”

After the mining failure involving its stablecoin, aUSD, the Acala Network announced on Monday that it had resumed its operations following a referendum allowing liquidity pools (LPs) to withdraw liquidity from pools or unstake LP tokens.

In August, a misconfiguration of the iBTC (IBTC)/aUSD liquidity pool led to a 3.022 billion aUSD to be erroneously minted, taking its price to less than $0.01 from its United States dollar peg. Acala is a decentralized finance (DeFi) platform built on the Polkadot ecosystem.

The wallet addresses that had received the minted aUSD have been identified via on-chain tracing, allowing the recovery of 2.97 billion aUSD mistake mints from 16 addresses. Other thirty-five accounts were identified as having acquired 12.38 million erroneously minted aUSD.

London-based asset manager Fasanara Capital has established a new $350 million venture capitalist fund focused on fintech and Web3, according to a press release.

The firm has more than $3.5 billion assets under management and also has a team dedicated to digital assets arbitrage trading and lending.

Founded in 2011, Fasanara Capital pivoted to venture investing over the past three years, participating in 27 funding rounds across the fintech industry in Europe. It led a $35 million Series A round for web3 startup Twig, a company that is building a green crypto payments infrastructure.

“Having gained a reputation as the leader in the space, we are now seeing a dealflow of unprecedented quality and we want to capitalize on it,” said Francesco Filia, Fasanara Capital CEO.

Venture capital investment in crypto hasn’t slowed in 2022 despite a bear market that has seen the likes of bitcoin and ether plunge by over 50% since the turn of the year. Prominent Silicon Valley investor Andreessen Horowitz (a16z) formed a $4.5 billion crypto fund in May, while earlier this month Two Sigma Ventures raised $400 million for two funds that will include crypto investments.

Following the issues that took place last year against Celsius’ and Blockfi’s interest-bearing accounts, the crypto lender Nexo has been targeted by several state securities regulators concerning the company’s Earn Interest Product (EIP). The state of California insists that since June 2020, Nexo has “offered and sold unqualified securities, in the form of Earn Interest Product accounts, to the United States public at large and to California residents.”

The state of New York and attorney general Letitia James filed a lawsuit against Nexo. Similarly, the state of New York and James say that Nexo started offering the EIPs around June 2020, up until the present day. James claims Nexo violates New York’s Martin Act, and acted as “unregistered securities brokers or dealers.” Washington is saying the same and Washington’s securities division mentioned several states are in on the law enforcement actions together.

Crypto markets saw a sudden upward movement in the early hours on Tuesday as the price of Bitcoin (BTC) has once again reclaimed the $20,000 level.

The leading cryptocurrency, which was trading below $19,000 on Monday, is up 6.4% over the past day, currently changing hands at a 10-day high of $20,199, according to data from CoinGecko.

While investors hope the latest price action will signal a new bull run, this is still a far cry from the asset’S all-time high of over $69,000 that was recorded last November. As of today, Bitcoin has fallen by roughly 71% from its record high and is down 57% since the start of the year.

The Fear and Greed Index, a metric used by some investors to gauge the market sentiment, is currently at 20 points, which corresponds to “extreme fear.”

In a tweet, Kaili.eth, a member of Stanford, announced that the institution came up with the idea of reversible transactions in the blockchain network following the increased amount of cryptocurrency thefts happening in recent times.

Kaili.eth also posted a detailed explanation of how the team came up with the solution to mitigate theft early on and reverse the malicious transactions to the owners. The post indicated that the answer would also truck stolen funds before initiating the reverse transaction. This means that the owners of the addresses could potentially be found too.

The Stanford team comprised Dan Boneh, Qinchen Wang, and Kaili.eth. The team designed prototype tokens ERC-20R and ERC-721R to support the reverse of blockchain transactions. The team is also aware that having reversed transactions in the network would degrade blockchain trust in the users, as this is one of the attributes that has made the technology successful. The team, through the post, emphasized that the reversal transaction will only be initiated when the alleged victim provides enough evidence to prove the funds were stolen or transacted maliciously.

Russia is in the pilot phase of its central bank digital currency development (CBDC), and new reports indicate that the country could use its national digital currency to settle international trade.

According to a report published in Reuters, Russia is reportedly planning to use the digital rouble for mutual settlements with China by next year. The digital rouble is currently being tested for settling with the banks and is expected to be completed by early next year.

The United States Treasury Department added 22 individuals and two Russia-based entities to the sanction list in the third week of September. With the growing sanctions against Russia from the West in the wake of the ongoing conflict with Ukraine, the country has been actively looking for alternate financial routes and trade settlements.