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Crypto suspension season is here 🦥
Binance.US suspends USD deposits. Crypto.com suspends US institutional exchange service. Robinhood suspends ADA, MATIC and SOL. SEC clampdown leads to $4B deposit withdrawal.
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The recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against Binance, Binance.US, and Coinbase have led to a whopping $4 Billion worth of deposits withdrawal from these crypto exchange giants.
People are not taking any chances, bets are off.
According to blockchain data from Nansen and Glassnode, there was a net outflow of $3.1 Billion via Ethereum and $864 Million in Bitcoin between Monday and Thursday.
That means more money was withdrawn than deposited. The exchanges handled the withdrawals in an orderly manner, though, so at least chaos was avoided.
The aftermath of SEC’s all guns firing actions are here.
Binance.US has suspended USD deposits
There is not room to wriggle for Binance in the US. With SEC ramping up its aggressive stance, Binance.US has suspended USD deposits and warned customers about potential pauses in USD withdrawal channels starting from June 13. The exchange plans to become crypto-only but will maintain a 1:1 ratio for customer assets.
While USD trading pairs will be delisted, Tether (USDT) trading pairs will continue. Binance.US has been experiencing challenges with banking partners and the SEC's actions have made it worse.
The exchange has already delisted several Bitcoin (BTC) and BUSD pairs and paused OTC Trading Portal services. Despite the hurdles, the platform assures customers that their assets are safe and the exchange is fully operational for crypto trading, staking, deposits, and withdrawals.
It's a bumpy ride for Binance.US.
Crypto.com suspends institutional service
The Singapore-based crypto exchange has announced the suspension of its institutional service in the United States starting from June 21.
The decision was primarily driven by limited demand from institutional clients, which has been further affected by challenging market conditions. The exchange's retail mobile application and platform will continue to operate normally for individual users in the US.
While the suspension is in effect, American retail users can still engage in regulated cryptocurrency derivatives trading and utilise the UpDown Options feature on the platform. Crypto.com remains open to the possibility of relaunching its institutional exchange in the US in the future.
In the meantime, the exchange has obtained a major payment institution license from the Monetary Authority of Singapore, allowing it to offer services within the country.
This development comes at a time when the Securities and Exchange Commission (SEC) has initiated legal proceedings against Binance.US and Coinbase, alleging violations of securities laws, causing further scrutiny on cryptocurrency exchanges in the US.
Robinhood suspends ADA, MATIC and SOL
Robinhood is ending support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) cryptocurrencies starting from June 27, 2023. Users are required to withdraw or sell these assets by the deadline, after which they will be sold at market prices, with the proceeds going to the users.
The decision to delist these assets comes in the wake of recent lawsuits against Binance and Coinbase by the US Securities and Exchange Commission (SEC), which alleged that ADA, MATIC, and SOL were unregistered securities.
Robinhood cited the cloud of uncertainty created by these lawsuits as the reason for ending support for these cryptocurrencies. The move reduces Robinhood's crypto offerings from 18 to 15 assets, including popular options like Bitcoin, Ethereum, and Dogecoin.
TTD Blockquote 🔉
The European Consumer Organisation (BEUC) warning for cryptocurrencies on social media platforms.
The BEUC's report categorises digital assets as highly risky and prone to scams. The combination of social media networks, influencers, and cryptocurrency is referred to as a "toxic cocktail."
Specific social media platforms called out in the report include Instagram, Twitter, YouTube, and TikTok.
The report highlights the loose policies of these networks, which are seen as dubious, and the targeting of unsuspecting teenagers by scammers. The role of "finfluencers" who make unrealistic promises is emphasised.
The BEUC calls for stricter advertising policies and regulation of cryptocurrency promotion on social media platforms.
The report argues that the European Union's consumer laws have been broken and urges the European network of national consumer authorities to enforce stricter measures.
Educational campaigns on social media have been launched to increase investor awareness about cryptocurrencies, but more action is needed to protect consumers.
The European Union has already taken steps to counter crypto scams with the approval of the Markets in Crypto Asset (MiCA) legislation.
TTD Ban 🙅♀️
In July 2022, Minecraft announced plans to ban the use of NFTs on player-run servers, causing a stir in the Web3 community. Nearly a year later, the ban has not been implemented, but it is still expected to happen.
Mojang, the developer owned by Microsoft, stated that they would update Minecraft's usage guidelines to restrict the integration of NFTs with the game. The guidelines were meant to prevent NFT projects from using Minecraft assets and implementing exclusive features or content restricted to a small group of asset owners.
Mojang cited the values of creative inclusion and playing together, expressing concerns about the exclusionary nature of NFTs and their focus on profit rather than gameplay.
The ban would also impact third-party Web3 projects that had been built around Minecraft servers. Although the guidelines have not been updated yet, a Microsoft representative confirmed that the update is still forthcoming and the policy remains unchanged.
TTD Charges 🤬
The US Department of Justice has charged two Russian individuals, Alexey Bilyuchenko and Aleksandr Verner, in connection with the 2011-2014 hack of Mt. Gox, the prominent Bitcoin exchange.
They are accused of conspiring to steal around 647,000 Bitcoin from Mt. Gox, which constituted the majority of the exchange's customers' holdings. Mt. Gox was a Japanese exchange that collapsed in 2014 after being hacked, resulting in the loss of 850,000 Bitcoin.
The charges also involve allegations of money laundering and connections to the operation of the BTC-e cryptocurrency exchange.
The Department of Justice's actions demonstrate its commitment to combatting major cryptocurrency-related crimes and protecting the integrity of the digital asset industry.
TTD Numbers 🔢
Google Cloud is offering up to $1 Million in protection to subscribers of its Security Command Center Premium who incur costs during undetected crypto mining attacks.
A report by Google's Cybersecurity Action Team published in September 2022 showed that in 65% of cases involving compromised cloud accounts, hackers were engaging in cryptocurrency mining. The move is aimed at addressing the serious security and financial impact of crypto mining attacks on organisations lacking preventative controls and threat detection capabilities.
The attacks are often automated and can be easily carried out. If a hacker manages to bypass Google's detection systems and runs crypto mining software on a user's cloud account, Google will cover the customer's expenses up to $1 Million.
The protection program is specifically for mining software and does not pertain to bitcoin mining, with monero (XMR) being a popular token for this type of mining.
TTD Surfer 🏄
BitGo bails out Prime Trust in acquisition deal, the tentative agreement would result in BitGo purchasing Prime Trust outright.
The Organisation for Economic Cooperation and Development (OECD) has rolled out a new tax standard for cryptocurrencies along with a set of amendments to the already existing common reporting standard.
Polemos announces a new chain-agnostic blockchain game platform - The Armory. It offers gamers the ability to rent digital assets without collateral or deposit requirements.
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The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.