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Paxos confirms it’s responsible for paying a $500K Bitcoin transaction fee

The Bitcoin miner who received 19.8 BTC in fees from blockchain infrastructure firm Paxos has returned the funds following Paxos’ claim that it made a mistake in paying over $500,000 in transfer fees. On Sept. 10, Paxos paid the six-figure fee to move $2,000, with the average network fee typically being around $2. The company later acknowledged the mistake, confirming the transfer came from its servers. Almost a day after Paxos’ claims, the Bitcoin miner who received the funds went on X (formerly Twitter) to express frustrations after agreeing to refund the amount to Paxos. The funds were returned on Sept. 15.

Court approves sale of FTX digital assets

A bankruptcy court has approved the sale of FTX digital assets in weekly batches through an investment adviser and under preestablished guidelines. The sale does not include Bitcoin, Ether and “certain insider-affiliated tokens,” which can be sold through a separate decision by FTX after 10 days’ notice. FTX sales are not expected to have a heavy impact on markets. According to a recent shareholder update, the bankrupt exchange has $833 million worth of Bitcoin and Ether. A total of $3.4 billion is held in Digital Assets A — the top 10 assets the company holds — which include Solana, Bitcoin, Ether, Aptos and others.

Gemini Earn users could recover all funds in new DCG remuneration scheme

Digital Currency Group has proposed a new agreement plan for the creditors of the now-bankrupt Genesis Global. The plan estimates unsecured creditors will receive “a 70–90% recovery with a meaningful portion of the recovery in digital currencies.” Additionally, the remuneration plan says the recovery of claims for Gemini Earn users would be projected at “approximately 95–110%” without any contribution from Gemini. According to the filing: “If Gemini were to agree to provide $100 million to Gemini Earn users under the Proposed Agreement, as it previously did, there would be little doubt Gemini Earn users would receive more than full recovery.”



Franklin Templeton files for spot Bitcoin ETF

Asset manager Franklin Templeton applied with the United States Securities and Exchange Commission to launch a spot Bitcoin exchange-traded fund (ETF). According to the application, the fund would be structured as a trust. Coinbase would custody the BTC, and The Bank of New York Mellon would be the cash custodian and administrator. Franklin Templeton has $1.5 trillion in assets under management and joins a long list of asset managers waiting for regulatory approval. The SEC recently delayed decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise and Invesco on Aug. 31.

Two more top executives depart Binance.US amid layoffs, SEC action

The exodus of executives from crypto exchange Binance has reached the firm’s offshoot in the United States, as at least three top employees left Binance.US over the past few days. This week’s departures included the exchange’s CEO, Brian Shroder, alongside legal head Krishna Juvvadi and chief risk officer Sidney Majalya. The mass exit is believed to be tied to the ongoing U.S. investigation into Binance and Binance.US. The SEC sued Binance.US, Binance and CEO Changpeng Zhao in June for allegedly engaging in unregistered securities operations and other improprieties. On Aug. 28, the agency requested to file sealed documents in the case, fueling concerns about a criminal probe by the U.S. Department of Justice.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $26,465, Ether (ETH) at $1,628 and XRP at $0.50. The total market cap is at $1.05 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Toncoin (TON) at 21.30%, VeChain (VET) at 11.94% and Bitcoin Cash (BCH) at 11.36%. 

The top three altcoin losers of the week are ApeCoin (APE) at -16.82%, Astar (ASTR) at 14.47% and Flare (FLR) at 12.61%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Blockchain games take on the mainstream: Here’s how they can win


Features

Porn Payments Were Supposed to be Crypto’s Killer App: Why Have They Flopped?

Most Memorable Quotations

“I think my generation and younger than me are the ones that are really going to change that narrative for investing, whether it’s in cryptocurrency or other investments moving forward.”

Scotty James, Australian snowboarder

“The only country I would not encourage you to start a company right now is in the U.S.”

Brad Garlinghouse, CEO of Ripple

“We’re still in the fax era of global payments.”

David Marcus, former PayPal executive and co-founder Lightspark

“I don’t think everybody in D.C. actually fully realizes how powerful the crypto voting community block is.”

Brian Armstrong, CEO of Coinbase

“You cannot get 100% transparency and 100% privacy.”

Alex Svanevik, CEO of Nansen

“Climate change is still a systemic threat to our species. I think as a society, we kind of owe it to ourselves to do anything that we can.”

Marek Olszewski, CEO of Celo

Prediction of the Week 

Bitcoin price all-time high will precede 2024 halving — New prediction

Bitcoin has a $250,000 target for after its next block subsidy halving — but new all-time highs will come sooner, according to the latest BTC price prediction from BitQuant, a popular social media commentator who sees a rosy future for the largest cryptocurrency.

On Sept. 15, the pseudonymous “central banker and Bitcoiner” revealed a pre-halving target above $69,000. “No, Bitcoin is not going to top before the halving,” he wrote in part of the commentary.

Bitcoin has just over six months before the halving, the event that cuts miner rewards earned per block by 50% every four years. “No, BTC is not going to $160K because the magnitude of every pullback is large,” he wrote, adding that “this means it will peak after the halving, in 2024. And yes, the target price is around $250K.”

FUD of the Week 

SEC charges company behind Stoner Cats NFT series with unregistered securities sale

Stoner Cats 2 LLC (SC2), the company behind the Stoner Cats animated web series, has agreed to a cease-and-desist order and other measures imposed by the U.S. Securities and Exchange Commission after being charged with conducting an unregistered offering of crypto-asset securities in the form of nonfungible tokens (NFTs). According to the SEC, SC2 sold more than 10,000 NFTs for about $800 apiece. The sale took 35 minutes and occurred on July 27, 2021, and the proceeds were used to fund the series. Besides agreeing to the cease-and-desist order, SC2 will pay a civil penalty of $1 million.

OneCoin co-founder Greenwood gets 20 years in US jail for fraud, money laundering

Karl Greenwood, co-founder of OneCoin with Ruja Ignatova, was sentenced in the United States to 20 years in prison and ordered to pay $300 million on Sept. 20. Ignatova remains at large. Greenwood, who is a citizen of the United Kingdom and Sweden, was sentenced in a court in New York. In a statement by the Justice Department, U.S. Attorney Damian Williams called OneCoin “one of the largest fraud schemes ever perpetrated.” The multilevel marketing and Ponzi scheme reaped $4 billion from 3.5 million victims, the statement said. Ignatova has not been seen since October 2017 and is on the U.S. Federal Bureau of Investigation’s Ten Most Wanted List.

North Korea’s Lazarus Group responsible for $55M CoinEx hack

The attack on crypto exchange CoinEx, which drained at least $55 million, was carried out by the North Korean hacker group Lazarus, according to blockchain security firm SlowMist and pseudonymous on-chain investigator ZachXBT. The hacker group was identified after it inadvertently exposed its address, which was the same one used in the recent Stake and Optimism hacks. On Sept. 12, CoinEx saw large outflows of funds to an address without any prior history. Security experts immediately suspected that the exchange was breached, with initial estimates reaching approximately $27 million.

Are DAOs overhyped and unworkable? Lessons from the front lines

Many contend that DAOs have failed to deliver on their promises, but developers are coming up with novel solutions.

6 Questions for Kei Oda: From Goldman Sachs to cryptocurrency

Kei Oda spent 16 years trading bonds for Goldman Sachs — a life that eventually bored him. That was when he turned to cryptocurrency.

Web3 Gamer: PUBG devs’ Web3 project, Animoca’s $20M raise, Shardbound review

The company behind PUBG announces a new Web3 platform, monetization in Web3 and more.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this article.

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Politics

Home secretary admits illegal immigration numbers still ‘too high’ under Labour – but says Farage can ‘sod off’

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Home secretary admits illegal immigration numbers still 'too high' under Labour - but says Farage can 'sod off'

The home secretary has admitted the UK’s illegal immigrant numbers are “too high” – but said Nigel Farage can “sod off” after he claimed she sounded like a Reform supporter.

Shabana Mahmood, speaking just after announcing a major policy change on migration, said she was “horrified” by the 27% increase of irregular arrivals in the year to June.

Speaking to Sky News’ political editor Beth Rigby, the home secretary said: “I acknowledge the numbers are too high, and they’ve gone up, and I want to bring them down.

“I’m impatient to bring those numbers down.”

She refused to “set arbitrary numbers” on how much she wanted to bring illegal migration down to.

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Beth Rigby: The two big problems with Labour’s asylum plan

Earlier on Monday, Ms Mahmood announced a new direction in Labour’s plan to crack down on asylum seekers.

The “restoring order and control” plan includes:

• The removal of more families with children – either voluntarily through cash incentives up to £3,000, or by force;
• Quadrupling the time successful asylum seekers must wait to claim permanent residency in the UK, from five years to 20;
• Removing the legal obligation to provide financial support to asylum seekers, so those with the right to work but choose not to will receive no support;
• Setting up a new appeals body to significantly speed up the time it takes to decide whether to refuse an asylum application;
• Reforming how the European Convention on Human Rights (ECHR) is interpreted in immigration cases;
• Banning visas for countries refusing to accept deportees;
• And the establishment of new safe and legal refugee routes.

Read more: Everything you need to know about Labour’s plans

Shabana Mahmood has two really big problems

The home secretary wants to make it less attractive for illegal migrants to try to get to the UK by making it much harder to get permanent residence here, by overhauling human rights laws to make it harder for illegal migrants to stay, and by suspending UK visas to some countries who refuse to take back illegal migrants.

That’s the plan, but there are two really big problems.

The first one is the Labour Party.

Labour knows it has to try to win back voters turning to Reform, but also risks a backlash from those with more liberal values who believe Mahmood is abandoning what Labour stands for to them.

That’s the politics. But on the policy, they just have to deliver and so much is at stake.

There’s no doubt Keir Starmer’s Number 10 is in real trouble.

There’s now open chatter about whether he should lead Labour into the next general election and whether his chancellor really is the person to deliver on the economy as she faces into that very difficult budget.

With the government in the doldrums, there is a lot riding on this policy and this politician.

Beth was speaking after her interview with Shabana Mahmood, watch her full analysis in the video above.

Reform UK leader Nigel Farage said the plan was much like something his party would put forward, and said Ms Mahmood sounded like a Reform supporter.

The home secretary responded with her usual frankness, telling Rigby: “Nigel Farage can sod off. I’m not interested in anything he’s got to say.

“He’s making mischief. So I’m not going to let him live forever in my head.”

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Home secretary announces details on asylum reform

You might need our support, says Badenoch

Her plans have also been tentatively welcomed by the Conservatives, with Kemi Badenoch suggesting the home secretary work with her in case of a rebellion by Labour MPs.

The backing of Tory MPs could “come in handy”, Ms Badenoch said.

The government’s attempts to cut the welfare bill earlier this year were thwarted by its own backbenchers, and the proposals announced on Monday have already attracted backlash from some on the left of the Labour Party.

Nadia Whittome MP called Ms Mahmood’s plans “dystopian” and “shameful”, while Richard Burgon MP said she should change course now rather than be forced into a U-turn later.

Read more:
How the UK and Denmark’s immigration policies compare

Nigel Farage said the home secretary was sounding like a Reform supporter
Image:
Nigel Farage said the home secretary was sounding like a Reform supporter

Mahmood’s warning to Labour MPs

But Ms Mahmood has warned her colleagues that disrupting her bid to reform the asylum system – thus hoping to bring down the number of small boat crossings – risks “dark forces” coming to prominence.

Speaking in the House of Commons on Monday evening, Ms Mahmood said: “If we fail to deal with this crisis, we will draw more people down a path that starts with anger and ends in hatred.”

She later told Beth Rigby that Reform wanted to “rip up” indefinite leave to remain altogether, which she called “immoral” and “deeply shameful”.

The home secretary, who is a practising Muslim, was born in Birmingham to her Pakistani parents.

Earlier, in the House of Commons, she said she sees the division that migration and the asylum system are creating across the country. She told MPs she regularly endures racial slurs.

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Politics

New campaign backs introduction of Graduated Driving Licences

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New campaign backs introduction of Graduated Driving Licences

MPs and bereaved families have launched a new campaign urging the government to re-think its position on introducing Graduated Driving Licences.

The event, in Parliament, came at the start of Road Safety Week and ahead of the government’s highly anticipated new road safety strategy, the first in a decade, which could be published next month.

Kim Leadbeater MP told the gathering that the idea for tougher rules for new drivers “transcends party politics” and could leave to “saving people’s lives”.

Five young adults died in a crash in Ireland on Saturday night. Pic: PA
Image:
Five young adults died in a crash in Ireland on Saturday night. Pic: PA

Organisations, including fire services, police and crime commissioners, motoring organisations as well as road safety charities, are behind a new website, “Protect Young Drivers: Time for Change”, which documents the case for introducing stronger measures.

Graduated Driving Licences (GDLs) is a system designed to give new drivers a staggered approach to gaining full privileges on the road, such as driving at night or with a full car of passengers.

The system has been successful in countries including Canada and Australia at reducing the number of young people killed or seriously injured.

“I feel as a bereaved parent we are very easily dismissed”

More on Roads

Last year 22% of fatalities on Britain’s roads involved a young person behind the wheel.

Data released by the Department for Transport also shows that male drivers aged 17-24 are four times more likely to be killed or seriously injured than all drivers aged over 25.

At the start of the launch a one minute silence was held to remember victims of road traffic accidents – including five young adults who died in a crash in Ireland on Saturday night.

Chris Taylor, who lost his 18-year-old daughter Rebecca in a road traffic collision in 2008, said the grief doesn’t go away.

“I feel as a bereaved parent we are very easily dismissed,” he said. “We’ve got an opportunity. Together we are a movement that can create real change.”

The Department for Transport has previously told Sky News it is not considering GDLs.

“Every death on our roads is a tragedy and our thoughts are with everyone who has lost a loved one in this way,” said a spokesperson.

“Whilst we are not considering Graduated Driving Licences, we absolutely recognise that young people are disproportionately victims of tragic incidents on our roads and continue to tackle this through our THINK! campaign.

“We are considering other measures to address this problem and protect young drivers, as part of our upcoming strategy for road safety – the first in over a decade.”

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Labour MPs fear wipe out at next local election – as chancellor’s career is ‘toast’

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Labour MPs fear wipe out at next local election - as chancellor's career is 'toast'

Many Labour MPs have been left shellshocked after the chaotic political self-sabotage of the past week.

Bafflement, anger, disappointment, and sheer frustration are all on relatively open display at the circular firing squad which seems to have surrounded the prime minister.

The botched effort to flush out backroom plotters and force Wes Streeting to declare his loyalty ahead of the budget has instead led even previously loyal Starmerites to predict the PM could be forced out of office before the local elections in May.

“We have so many councillors coming up for election across the country,” one says, “and at the moment it looks like they’re going to be wiped out. That’s our base – we just can’t afford to lose them. I like Keir [Starmer] but there’s only a limited window left to turn things around. There’s a real question of urgency.”

Another criticised a “boys club” at No 10 who they claimed have “undermined” the prime minister and “forgotten they’re meant to be serving the British people.”

There’s clearly widespread muttering about what to do next – and even a degree of enviousness at the lack of a regicidal 1922 committee mechanism, as enjoyed by the Tories.

“Leadership speculation is destabilising,” one said. “But there’s really no obvious strategy. Andy Burnham isn’t even an MP. You’d need a stalking horse candidate and we don’t have one. There’s no 1922. It’s very messy.”

More on Labour

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Starmer’s faithfuls are ‘losing faith’

Others are gunning for the chancellor after months of careful pitch-rolling for manifesto-breaching tax rises in the budget were ripped up overnight.

“Her career is toast,” one told me. “Rachel has just lost all credibility. She screwed up on the manifesto. She screwed up on the last two fiscal events, costing the party huge amounts of support and leaving the economy stagnating.

“Having now walked everyone up the mountain of tax rises and made us vote to support them on the opposition day debate two days ago, she’s now worried her job is at risk and has bottled it.

“Talk to any major business or investor and they are holding off investing in the UK until it is clear what the UK’s tax policy is going to be, putting us in a situation where the chancellor is going to have to go through this all over again in six months – which just means no real economic growth for another six months.”

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Why is the economy flatlining?

Read more:
Starmer and Reeves ditch plans to raise income tax
Former chancellor Osborne is shock contender to head HSBC

After less than 18 months in office, the government is stuck in a political morass largely of its own making.

Treasury sources have belatedly argued that the chancellor’s pre-budget change of heart on income tax is down to better-than-expected economic forecasts from the Office for Budget Responsibility.

That should be a cause of celebration. The question is whether she and the PM are now too damaged to make that case to the country – and rescue their benighted prospects.

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