Day: April 25, 2023

Chainlink Oracles Integrate with GMX DEX

by Blockchain News

Following the approval of a governance proposal, Chainlink’s decentralized oracles are going to begin integrating with GMX’s decentralized exchange (DEX). Over 96% of the GMX tokenholders who participated in the voting approved of the idea to give GMX v2 with greater “granular” real-time market data.

The functioning of perpetual DEXs and price-sensitive trading on GMX has been improved thanks to the introduction of new Chainlink oracles. These oracles were developed with the assistance of key contributors to GMX, who also helped build them. According to Johann Eid, who is in charge of integration at Chainlink Labs, the low-latency oracles will increase security, further decentralize the protocol, and improve the user experience.

These new oracles make use of the identical oracle node operators and data aggregation algorithms as are used in the already operational Chainlink reference feeds; the only difference is that the data is extracted at a greater frequency. It is anticipated that the low-latency oracles would provide a high degree of tamper-resistance while settling user transactions, hence increasing the level of security provided by the network.

It is anticipated that the incorporation of the Chainlink oracles would lessen the likelihood of GMX derivative traders being exposed to outdated price execution and value extraction. On the Arbitrum testnet, a beta version of the GMX-tailored, low-latency oracle feeds is currently accessible to users.

Chainlink will receive 1.2% of the protocol fees produced by the low-latency oracles that are part of the GMX protocol as payment for the service. In addition to the regular borrow costs and swap fees, the fees associated with margin trading are included in the protocol fees that customers must pay.

Eid indicated that Chainlink will continue to improve the quality of its oracle services to GMX in light of the protocol’s ongoing development and expansion. Although GMX is not the first perpetual DEX to come on board with the new kind of oracle, it is anticipated that the integration would deliver a more granular degree of real-time market data to GMX v2, hence boosting both the functioning of the platform and the quality of the user experience.

In conclusion, the integration of Chainlink’s low-latency oracles with GMX’s DEX is anticipated to improve the platform’s level of functionality and security, which will be to the advantage of the platform’s users and will contribute to the expansion of the DeFi ecosystem.

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5 Charged for Hydro Token Market Manipulation

by Blockchain News

The US Department of Justice (DOJ) has charged five individuals with conspiring to manipulate the market in relation to an alleged scheme involving the Hydro (HYDRO) token. The charges include conspiracy to commit securities price manipulation and wire fraud. The three individuals charged with manipulating the market for Hydro are Michael Ross Kane, the former CEO of Hydrogen Technology Corp.; Shane Hampton, Hydrogen’s chief of financial engineering; and George Wolvaardt. The other two individuals were charged separately for their alleged roles in the scheme. Tyler Ostern, the former CEO of Moonwalkers, and Andrew Chorlian, a blockchain engineer from Hydrogen Technology Corp., were also charged for their involvement in the alleged manipulation scheme.

According to the indictment, from June 2018 through April 2019, Kane, Hampton, and Wolvaardt defrauded market participants looking to trade the Hydro tokens that Hydrogen issued. Wolvaardt, who was the chief technology officer for a market-making firm called Moonwalkers Trading Limited, designed a trading bot that executed a number of high-value “spoof orders” at obscure intervals to make it appear as though there was high demand for the token. The bot also bought and sold large volumes of the token from the same account, a practice known as wash trading.

The alleged manipulation of the Hydro token price resulted in the co-conspirators making an approximate total of $2 million in ill-gotten profits. The DOJ claims that following the artificial manipulation of the token’s price, the co-conspirators sold large chunks of their holdings.

Kane, Hampton, and Wolvaardt have each been charged with one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. If found guilty on all charges, they each face a maximum penalty of five years imprisonment in relation to the conspiracy to commit securities price manipulation charge and a staggering 20 years in prison on each of the other charges. Ostern and Chorlian have each been charged with one count of conspiracy to commit securities price manipulation and wire fraud. If found guilty, they face a maximum penalty of five years in prison.

In a separate case brought by the Securities and Exchange Commission, Hydrogen Technology Corporation and former CEO Michael Ross Kane were ordered to pay $2.8 million in remedies and civil penalties. On April 20, a New York District Court judge ruled against Hydrogen Technology Corporation and Kane in the case. The SEC alleged that Hydrogen and Kane had made false and misleading statements to investors about the company’s financial performance and the development of its technology.

In conclusion, the charges against the five individuals for market manipulation of the Hydro token highlight the importance of transparency and fairness in the cryptocurrency market. The DOJ’s efforts to prosecute individuals who engage in fraudulent activities in the cryptocurrency market sends a strong message that such activities will not be tolerated.

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Visa New Crypto Initiative

by Blockchain News

Visa, a leading global payment corporation, has announced its latest initiative focused on stablecoin payments. This move is part of the company’s ongoing exploration of the potential benefits of the cryptocurrency industry. Visa’s latest cryptocurrency-related endeavor was unveiled by Cuy Sheffield, the company’s head of crypto, via Twitter on April 24th. Visa made the announcement. A new cryptocurrency product has been developed to promote the extensive use of public blockchain networks and stablecoin transactions.

Visa is on the hunt for software engineers with specialized skills in programming, backend systems, and Web3 technologies. The goal is to create innovative products that simplify digital commerce in our daily lives. The organization is seeking potential employees with prior experience in writing and debugging smart contracts using Github Copilot and other AI-assisted engineering tools. In the latest job posting, the preferred qualifications for the position include a comprehensive understanding of layer 1 and layer 2 solutions, proficiency in writing smart contracts using Solidity programming language, and familiarity with both public and permissioned distributed ledger networks, security protocols, private key custody, and Ethereum enhancements like ERC-4337.

Visa’s venture into the cryptocurrency market in 2020 has led to the development of a new cryptocurrency product. In a recent development, the business has partnered with the blockchain startup Circle to facilitate the integration of the stablecoin USD Coin (USDC) on a specific set of credit cards. In the face of a challenging market for cryptocurrencies in 2022, Visa has reportedly postponed a number of new industry partnerships. Despite the company’s efforts to expand its crypto offerings, setbacks such as the struggles of Celsius and FTX have contributed to a more cautious approach.

Visa has announced a new crypto project, signaling the company’s increasing involvement in the cryptocurrency and blockchain industry. The move also highlights Visa’s desire to promote the widespread adoption of stablecoin payments. Visa’s goal to encourage widespread use of stablecoin payments is a testament to the growing interest and demand for this type of currency. In a recent development, Visa has launched a new cryptocurrency product that is expected to have a significant impact on the growth and progress of the industry. As more companies and individuals begin to recognize the benefits of cryptocurrencies, this latest offering from Visa is poised to play a crucial role in their adoption.

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Terraform Labs Co-Founder Indicted for Terra Stablecoin Collapse

by Blockchain News

The Seoul Southern District Prosecutors’ Office has indicted Shin Hyun-seong, co-founder of Terraform Labs, and nine other individuals for their role in the collapse of the Terra stablecoin ecosystem. The 10 individuals were charged with fraud, breach of trust, and embezzlement after 11 months of investigation, with suspected illicit profits of nearly $350 million.

Shin is accused of misleading investors and falsely advertising the product despite knowing that the project was unfeasible, leading to significant losses. The indictment comes just days after a Seoul district court ruled that the Luna token was not a security and did not fall under the purview of the Capital Markets Act. The court had earlier refused the prosecution’s ten demands of charging Shin for violating security law.

Prosecutors have seized assets worth a total of $180 million from the indicted individuals. This includes assets belonging to Shin, who co-founded Terraform Labs, one of the budding crypto ecosystems that popularized the concept of algorithmic stablecoins. The collapse of the native stablecoin, TerraClassicUSD (USTC), de-pegged from its dollar value in May 2022, and the $40 billion ecosystem came crashing down.

The indictment of Shin and nine other executives comes just a month after former CEO Do Kwon was arrested in Montenegro. Prosecutors in Montenegro indicted Kwon on charges of document forgery, and he is also facing multiple charges of security fraud from the United States Securities and Exchange Commission.

Terra was a prominent crypto ecosystem that offered algorithmic stablecoins, which gained immense popularity. The Terra stablecoin ecosystem’s collapse has raised concerns about the credibility and reliability of stablecoins in the crypto market. Stablecoins are widely used in the cryptocurrency market to hedge against market volatility, and their reliability and stability are crucial for investors.

The indictment of Shin and his associates highlights the need for stricter regulations in the crypto market to prevent fraudulent activities and ensure investor protection. The Korean government has been taking significant steps to regulate the crypto market, with the latest being the amendment of the Act on Reporting and Use of Specific Financial Information to strengthen anti-money laundering regulations in the cryptocurrency sector.

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CFTC Commissioner Calls for Reduced Cryptocurrency Anonymity

by Blockchain News

Christy Goldsmith Romero, a commissioner of the US Commodity Futures Trading Commission (CFTC), has called for reduced anonymity for cryptocurrencies. Speaking at the City Week 2023 conference in London on April 25, Romero emphasized the need to manage the risks associated with digital assets. She believes that anonymity is the primary feature that makes cryptocurrencies appealing to illicit finance and that this issue must be addressed by both governments and the industry.

In her keynote speech on Illicit Finance and Other Key Risks of Digital Finance, Romero stated that the risks associated with digital assets must be managed. She stressed that market integrity, national security, and financial stability are crucial and cannot be compromised. Romero’s proposal for reducing anonymity in cryptocurrencies could help to address these risks.

Cryptocurrencies are often used by criminals to evade detection and launder money. With the anonymous nature of transactions, it is difficult to trace the movement of funds and identify the parties involved. By reducing anonymity, it would become easier for law enforcement agencies to track down criminals who use cryptocurrencies for illegal activities.

Romero’s proposal may also help to address concerns around the regulation of cryptocurrencies. With greater transparency and traceability, governments and regulatory bodies would have greater visibility into cryptocurrency transactions, which could help them to identify potential risks and take appropriate action.

The issue of anonymity in cryptocurrencies has been a topic of debate for several years. Some argue that anonymity is an essential feature of cryptocurrencies and that reducing it would compromise privacy and security. However, others argue that anonymity enables criminal activities and that reducing it would make cryptocurrencies more legitimate in the eyes of the public and regulators.

Despite the debate, there have been several initiatives to reduce anonymity in cryptocurrencies. For example, the Financial Action Task Force (FATF) has introduced guidelines for virtual asset service providers (VASPs) that require them to implement measures to identify and verify their customers. Similarly, several countries have introduced Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations for cryptocurrency exchanges and other service providers.

In conclusion, Romero’s proposal for reduced anonymity in cryptocurrencies could help to address the risks associated with digital assets. However, it remains to be seen whether the industry will adopt such measures and whether they will be effective in managing the risks of cryptocurrencies. The debate around anonymity in cryptocurrencies is likely to continue, as governments and industry stakeholders grapple with the challenges posed by digital assets.

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Blockchain and Human Consciousness

by Blockchain News

Emerging technologies such as blockchain are changing the way we interact with the digital world, and the potential impact on human consciousness is a topic of growing interest among thought leaders both inside and outside of the tech industry. On April 25, the reState Foundation hosted a virtual talk on this subject, featuring Vitalik Buterin, the co-founder and inventor of Ethereum, and Sadhguru, the founder of the Isha Foundation and an Indian mystic.

During the talk, Buterin and Sadhguru discussed the intersection of technology and human consciousness, exploring how new technologies like blockchain may prompt a shift in the way we understand and experience the world around us. They touched on a range of topics, from the role of technology in spirituality to the potential for blockchain to create a more equitable and decentralized global economy.

For Buterin, blockchain has the potential to transform the way we think about money and power. He argued that the rise of decentralized finance (DeFi) on blockchain platforms could create a more equitable and democratic financial system, one that is less reliant on centralized institutions like banks and governments. This, in turn, could lead to a broader shift in the balance of power between individuals and institutions, ultimately changing the way we understand our place in the world.

Sadhguru echoed this sentiment, highlighting the potential for blockchain to create a more just and compassionate society. He argued that new technologies like blockchain could help to eliminate corruption and create a more equitable distribution of resources, ultimately leading to a more peaceful and prosperous world. He also emphasized the importance of cultivating a deeper understanding of human consciousness, one that is informed by both spirituality and technology.

Overall, the talk between Buterin and Sadhguru highlighted the complex and evolving relationship between technology and human consciousness. As new technologies like blockchain continue to emerge and evolve, they are likely to prompt a fundamental shift in the way we understand and experience the world around us. Whether this shift will be positive or negative remains to be seen, but one thing is clear: the intersection of technology and human consciousness is an area ripe for exploration and reflection.

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First Jury Hearing in OpenSea Insider Trading Case

by Blockchain News

On April 24th, the Southern District Court of New York held the first jury hearing in the case against former OpenSea product manager Nathaniel Chastain. Chastain is facing two counts of wire fraud and money laundering, with allegations of insider trading with non-fungible tokens (NFTs). The case has garnered attention from the cryptocurrency and legal communities alike, as it may have a significant impact on the legal classification of NFTs.

The allegations against Chastain were filed by the U.S. Manhattan Attorney’s Office on May 31st, 2022. The prosecution claims that Chastain used his insider knowledge to secretly purchase 45 NFTs just before their listing and sold them immediately afterward for a profit. One such example cited in the filing was the case of NFT “The Brawl 2.” Chastain allegedly bought four of these NFTs “minutes before” they were featured on OpenSea and sold them within hours for a 100% profit.

Chastain’s defense attempted to remove the “insider trading” references from his charges, arguing that the term only applies to securities and not to NFTs. However, prosecutors noted that the allegation of insider trading can be used to reference multiple types of fraud in which someone with non-public knowledge uses it to trade assets. The use of the term “insider trading” to describe NFT-related charges is a new development, and the outcome of the trial may have implications for the legal classification of NFTs.

If the case against Chastain results in a conviction for insider trading, it could set a precedent for similar charges in the future, potentially leading to NFTs being classified as securities. Alma Angotti, a former U.S. Securities and Exchange Commission (SEC) lawyer, predicted this outcome in 2022, citing the Howey test, which determines whether a financial instrument is a security. Another former SEC employee, Philip Moustakis, expressed a similar concern, stating that “if this case sticks, there is precedent that insider trading theory can be applied to any asset class.”

In another recent court case, cryptocurrency exchange Coinbase supported a motion to dismiss insider trading charges against the brother of the platform’s former product manager. The defense argued that the SEC had no jurisdiction to file a lawsuit because the tokens in question did not pass the Howey test. This case highlights the uncertainty surrounding the legal classification of NFTs and the potential impact of Chastain’s trial on the industry as a whole.

The trial is expected to last several weeks, and its outcome may have far-reaching consequences for the NFT market. The case has drawn attention to the need for clear regulations surrounding NFTs and cryptocurrency in general. The outcome of this case could set a precedent for the legal classification of NFTs and have a significant impact on the future of the industry.

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Terraform Labs CEO Asks for Dismissal of SEC Charges

by Blockchain News

In a recent motion filed to dismiss the charges leveled against him by the Securities and Exchange Commission (SEC), Do Kwon, co-founder and CEO of Terraform Labs, argued that the claims are invalid and that the SEC lacked proper jurisdiction to bring charges against him and his company. Kwon’s counsel stated that the tokens and projects developed by Terra were “aimed at the world” and did not specifically target U.S. investors, making the SEC’s claims invalid.

The SEC had previously claimed that tokens including MIR, LUNA (LUNA), and UST are securities, but Kwon pushed back against this argument in his motion to dismiss the charges. The South Korean district court recently dismissed security violation charges against the co-founder of Terraform Labs, Hyun-seong Shin, deeming LUNA as a non-security under Korea’s Capital Markets Act. This ruling makes Kwon’s motion right only in connection to LUNA.

However, recent developments suggest that Kwon’s legal troubles may not be over. In a press conference after the Seoul Southern District Prosecutor’s office indicted 10 people involved in the collapse of the Terra stablecoin ecosystem, the prosecutor reportedly identified Signum as the Swiss bank account where Kwon transferred more than 10,000 Bitcoin (BTC) from the Terra platform and the Luna Foundation Guard to a cold wallet, which was then converted to fiat.

The Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutor’s office is reportedly monitoring Bitcoin owned by Luna Foundation Guard and has determined that the transferred amount, which aligns with the SEC complaint, is approximately $100 million (equivalent to 130 billion won). The prosecutors clarified that the $100 million was not kept solely in the Signum account and was dispersed in various locations. It was verified that a portion of the funds was transferred to the Kim & Chang law firm account to cover legal fees, while the rest amounted to billions of won.

Kwon’s legal troubles began when the SEC filed charges against him and his company, which preempted his arrest in Montenegro, where he currently faces extradition. South Korean authorities had issued an arrest warrant for Kwon in September, and U.S. federal prosecutors unveiled criminal charges against him shortly after he was arrested a month ago.

In conclusion, while Do Kwon has requested the dismissal of SEC charges against him, recent developments suggest that his legal troubles may not be over yet. It remains to be seen how this situation will develop and how it will affect the future of Terraform Labs.

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Opera Browser Launches AI Prompt Feature

by Blockchain News

The latest version of the Opera browser, Opera One, now includes a new generative AI integration known as AI Prompt. This in-browser AI feature provides users with contextual prompts for web pages or highlighted text. According to Opera, the AI-enhanced version of Opera One will automatically enable the AI features for all users. The browser will also provide quick access to other AI tools like ChatGPT and ChatSonic in the browser’s sidebar.

The Opera One update page lists several examples of how generative AI can be used while browsing. These examples include shortened long texts for more accessible reads, explanations of complex ideas, and content creation like tweets. Currently, the AI-enhanced version of Opera One is released under early access. The company has called its updated browser a Web3, “future proof” platform.

Back in December, Opera launched a suite of security tools aimed at protecting users from malicious Web3 actors. The tools, known as Web3 Guard, are integrated into the original Opera browser and help detect harmful decentralized applications (DApps) and seed phrase phishing attacks, among other features.

The latest AI integration by Opera falls in line with major trends in the emerging technology industry. Internet and tech giants such as Google, Microsoft, Amazon, and more have all recently made AI-integration related-announcements since the beginning of the year.

Moreover, Elon Musk has reportedly purchased thousands of GPUs for an upcoming Twitter AI project. The Twitter CEO later said he will also be launching a truth-seeking AI platform to be called TruthGPT, which will seek to understand the nature of the universe.

As AI becomes more pervasive in major industries across the world, Opera’s latest AI integration is an example of how technology is advancing to make the browsing experience more accessible and efficient. With the introduction of AI Prompt, users can expect more personalized and helpful interactions with the content they view online.

Opera’s AI Prompt feature is just one of the many ways that AI is being integrated into everyday life. With AI becoming more mainstream, it is likely that more applications and tools will be developed to make use of this powerful technology. Opera’s move to a Web3, “future proof” platform is indicative of the increasing importance of AI and other emerging technologies in the digital landscape. As more companies invest in AI, it is likely that we will see even more innovative and transformative uses of this technology in the future.

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Genesis Capital’s Settlement Disrupted by Creditors

by Blockchain News

Genesis Capital, a troubled digital currency company, has hit another roadblock in its settlement process, just two months after reaching an initial agreement with creditors. The company’s parent firm, Digital Currency Group (DCG), has issued a statement on Twitter announcing that Genesis has filed a motion for mediation due to renewed demands from creditors.

In February, Genesis Capital submitted a comprehensive settlement proposal to the bankruptcy court after reaching an “agreement in principle” with DCG and its creditors. Under the proposed restructuring plan, Genesis creditors were expected to recover 80% of funds lost due to the company’s collapsed operations.

However, DCG has now reported that Genesis creditors have raised their demands, significantly disrupting the ongoing court process. “While it is difficult to understand the rationale given the limited engagement from Genesis creditors since the February court filing, our understanding is that a subset of creditors have decided to walk away from the prior agreement,” DCG wrote.

The disruption has raised concerns about the timing of the settlement process, with some experts questioning whether the prolonged proceedings could harm the company’s chances of recovery. However, others have suggested that the additional mediation may ultimately help resolve outstanding issues and pave the way for a successful restructuring.

Genesis Capital’s struggles come amid broader uncertainty in the digital currency market, with many investors and companies grappling with regulatory challenges and price volatility. The company’s difficulties are particularly notable given its high profile in the industry; Genesis has been a leading provider of digital asset lending and borrowing services, with a portfolio of more than $15 billion in assets.

Despite these challenges, DCG expressed confidence in Genesis’ ability to weather the storm. “We believe that Genesis is well-positioned to continue to provide best-in-class digital asset services,” the company wrote. “We remain committed to working through these challenges in partnership with our creditors and the broader digital asset community.”

The case underscores the challenges facing digital currency companies as they navigate a rapidly evolving regulatory landscape and seek to establish themselves as viable players in the broader financial ecosystem. With Genesis’ future hanging in the balance, the industry will be closely watching to see how the settlement process unfolds in the coming months.

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