Binance.US scores against SEC, Mt. Gox delay repayments, and other news: Hodler’s Digest, Sept. 17-23

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2 years ago

September 23, 2023

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SEC sees temporary setback in request to access Binance.US software

The United States Securities and Exchange Commission has failed to win immediate access to Binance.US’s software, with the judge saying he isn’t “inclined to allow the inspection at this time.” The hearing was held on Sept. 18 to discuss the SEC’s motion to compel Binance to hand over detailed information and make its executives more available for depositions. In a hearing, Judge Faruqui said that he wasn’t “inclined to allow the inspection at this time.” Alternatively, he proposed that the SEC should come up with more specific requests for discovery and speak with a broader range of witnesses. In another headline, Binance global and its CEO Changpeng “CZ” Zhao requested dismissal of the SEC’s lawsuit filed against them in June, claiming the regulator overstepped its authority in the case.

Mt. Gox trustee changes repayment deadline to October 2024

Mt. Gox trustee Nobuaki Kobayashi has officially changed the deadline for paying back the exchange’s creditors from Oct. 31, 2023, to Oct. 31, 2024. Presently, the Mt. Gox estate holds some 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen. Mt. Gox was one of the earliest cryptocurrency exchanges, once facilitating more than 70% of all trades made within the blockchain ecosystem. Following a major hack in 2011, the site subsequently collapsed in 2014 due to alleged insolvency; the fallout affected about 24,000 creditors and resulted in the loss of 850,000 BTC.

Tether authorizes $1B USDT to ‘replenish’ Tron network

Tether’s Treasury is set to provide a $1 billion near-term liquidity for the Tron network. The billionaire authorization was flagged by blockchain tracker WhaleAlert, which drew a quick-fire response from Tether chief technology officer Paolo Ardoino, who said that the USDT tokens would be used as inventory to “replenish” the Tron network. Authorizing USDT in the Tether Treasury allows the company to issue USDT instantaneously once customer funds are received to ensure that the issuer maintains 100% of its reserves. Ardoino added that the event was an authorization and not an actual issuance, with the allocated amount set to serve as inventory for upcoming issuance requests and chain swaps from the Tron network.

FTX founder’s parents sued, accused of stealing millions from crypto exchange

Debtors of FTX have launched legal action against the parents Sam “SBF” Bankman-Fried, alleging that they misappropriated millions of dollars through their involvement in the crypto exchange. The plaintiffs argued that Joseph Bankman and Barbara Fried exploited their access and influence within the FTX empire to enrich themselves at the expense of the debtors in the FTX bankruptcy estate. The debtors alleged that SBF’s parents were “very much involved” in the FTX business from inception to collapse, contrary to what SBF has claimed. According to the complaint, Bankman and Fried extracted significant unearned rewards from their involvement in FTX Group, including a $10-million cash gift and a $16.4-million luxury property in the Bahamas.

Grayscale files for new Ether futures ETF — Official

Digital currency investment company Grayscale is the latest firm to file with the Securities and Exchange Commission for a new Ether (ETH) futures exchange-traded fund (ETF).

Grayscale Ethereum Futures Trust will hold Ether futures contracts with a “roughly constant expiration profile,” according to the filing. The trust will “never carry futures positions to cash settlement.” The nature of the Ether futures contracts in the ETF will not require the trust to use an Ether custodian. Grayscale’s application comes a few weeks after Valkyrie also filed for an Ether futures ETF with the SEC in mid-August, following several other firms filing for ETH futures ETFs.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $26,525, Ether (ETH) at $1,590 and XRP at $0.51. 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 Immutable (IMX) at 27.07%, Curve DAO Token (CRV) at 16.16%, and Aave (AAVE) at 15.92%.

The top three altcoin losers of the week are Gala (GALA) at -8.57%, Axie Infinity (AXS) at -7.42%, and Optimism (OP) at -7.52%.

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

Most Memorable Quotations

“There remains a real risk that the use of AI develops in a way that undermines consumer trust or is dominated by a few players […].”

Sarah Cardell, CEO of the U.K. Competition and Markets Authority

“Don’t give up on the United States. This too shall pass, the confusion shall pass. The United States is a good place to build things, and I want it to stay that way.

Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission

“If the average end-user, who isn’t a computer scientist, who doesn’t understand blockchain, has to know about their private keys — we’ve got it wrong. They have to be abstracted away,”

James Tromans, head of Web3 at Google Cloud

“Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.”

Jamie Coutts, crypto market analyst at Bloomberg

“It is an inevitable future where there will no longer be any intermediaries between fans and creators — this is an obvious but unrealized potential of blockchain technology.”

Leon Lee, founder and CEO of Only1

“[The U.S. government] can do a central bank digital currency if it’s open, permissionless and private. It has to emulate cash.”

Tom Emmer, U.S. Representative

Prediction of the Week

Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar

Bitcoin circled lower after the United States Federal Reserve decision on interest rates, with $20,000 BTC price predictions resurfacing.

The aftermath of the Fed interest rates pause on Sept. 20 offered little for Bitcoin bulls, BTC/USD having dipped almost $700 the day prior. Data from Cointelegraph Markets Pro and TradingView covered a lackluster 24 hours for BTC price action, with $27,000 fading from view.

Now, market participants returned to a more conservative outlook in the absence of tangible volatility. “Something like this over the course of October would be perfect i would say,” popular trader Crypto Tony told X (formerly Twitter) subscribers.

“Slow grind up to $28,500, followed by hype and FOMO, to then dump it once more.”

FUD of the Week

Ethereum-based automated market maker Balancer believes a social engineering attack on its DNS service provider was what led to its website’s front end being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen. Blockchain security firms SlowMist and CertiK reported that the attacker employed Angel Drainer phishing contracts. SlowMist said the exploiters attacked Balancer’s website via Border Gateway Protocol hijacking — a process where hackers take control of IP addresses by corrupting internet routing tables. The hacker has already bridged some of the stolen Ether (ETH) to Bitcoin (BTC) addresses.

Crypto influencer arrested in Hong Kong for JPEX association

A Hong Kong-based social media influencer has reportedly been arrested after investigations around the liquidity crisis of the crypto exchange JPEX traced back their involvement. According to a local report, the Securities and Futures Commission of Hong Kong recently issued a statement blaming JPEX for actively promoting the platform’s services and products to the public through online celebrities and over-the-counter money changers. Another unconfirmed report suggests that Lin Zuo presented “schemes” to a chat group created for cryptocurrency investment. Also related to this story, Hong Kong regulators are looking to tighten regulations around the crypto market following the failure of JPEX, which led to the arrest of over six individuals.

CoinEx hack: Compromised private keys led to $70M theft

Hong Kong-based cryptocurrency exchange CoinEx has revealed that compromised private keys allowed hackers to steal over $70 million worth of tokens. According to CoinEx representatives, the amount represents a small percentage of its total assets under management. CoinEx stated that affected users will be compensated entirely for any lost funds. The exchange explained that a preliminary investigation pinned the root cause to a compromised private key for its hot wallets. These were used to store exchange assets for carrying out deposits and withdrawals.

‘AI has killed the industry’: EasyTranslate boss on adapting to change

If you’re not transforming your business to take advantage of AI now, you’ll be left behind, says Easy Translate boss Frederik Pedersen.

NFT Collector: William Mapan explains generative art using a crayon and dice

What even is generative art? William Mapan, whose 250-piece Distance collection just sold out at 2ETH each, explains using a crayon and die.

JPEX staff flee event as scandal hits, Mt. Gox woes, Diners Club crypto: Asia Express

Hong Kong crypto exchange JPEX busted in $166M scam, Mt. Gox delays repayments yet again, oldest credit card company in Singapore moves into blockchain.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this article.

Politics

Sir Keir Starmer ‘absolutely’ wants Angela Rayner back in cabinet

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2 hours ago

November 23, 2025

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Sir Keir Starmer 'absolutely' wants Angela Rayner back in cabinet

Sir Keir Starmer has said he “absolutely” wants Angela Rayner back in his cabinet after she resigned for failing to pay the correct amount of stamp duty.

Speaking from the G20 Summit in South Africa, the prime minister told broadcasters his former deputy is “the best example ever” of social mobility and he is still in touch with her.

Asked if she could make a comeback this side of a general election, Sir Keir said: “I’ve always said I want Angela back. Even back in September at the time I said she is going to be a big voice in the Labour movement.

“Do I want Angela back at some stage? Yes absolutely.

“I think she is the best example ever in the United Kingdom of social mobility – going from a pretty challenging childhood to being deputy prime minister of the United Kingdom. She is the story of social mobility above all other stories.”

Asked if he missed having her around, Sir Keir said: “I’m friends with Angie and I like Angie a lot and we talk a lot. We still do.

“It’s always good to have Angela.”

Ms Rayner’s meteoric rise to the top of Labour came after she left school aged 16, pregnant and with no qualifications.

She was elected deputy Labour leader by the membership in 2020, and was made deputy prime minister then housing secretary by Sir Keir.

She resigned from all of those positions in September, after it emerged she had not paid the higher rate of stamp duty on a second home she bought in Hove, East Sussex, saving her about £40k.

It followed a tearful interview with Sky’s political editor Beth Rigby about the “complex living arrangement” regarding her first home, which was sold to a trust following her divorce to provide stability for her teenage son, who has lifelong disabilities and is the sole beneficiary of the trust.

An investigation by the prime minister ethic’s watchdog found she breached the ministerial code by failing to get correct tax advice, but that she acted “with integrity”.

Ms Rayner is still a backbench MP and recently did not rule out a return to the front bench herself – telling the Daily Mirror during a visit to a care centre in her constituency that she had “not gone away”.

Other cabinet ministers have also supported her return.

During the Labour Party Conference a few weeks after she resigned, Health Secretary Wes Streeting paid tribute to her work on the Employment Rights Bill and said Labour “wants her back and needs her back”.

Politics

Rachel Reeves vows to ‘grip the cost of living’ – despite expectation of tax rises in budget

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4 hours ago

November 23, 2025

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Rachel Reeves vows to 'grip the cost of living' - despite expectation of tax rises in budget

Chancellor Rachel Reeves has promised to “grip the cost of living” in the budget next week.

Writing in The Mirror newspaper, she acknowledged that high prices “hit ordinary families most” and that the economy “feels stuck” for too many.

But at the same time, she is expected to raise taxes when she sets out economic policies on 26 November as she seeks to bridge a multibillion-pound gap in her spending plans.

“Delivering on our promise to make people better off is not possible if we don’t get a grip on inflation,” Ms Reeves wrote in The Sunday Times.

“It is a fundamental precursor to economic growth. It is essential to make families better off and for businesses to thrive.

“There is an urgent need to ease the pressure on households now. It will require direct action by this government to get inflation under control.”

She said reforms would change the welfare system from “trapping millions of people on benefits” to one “designed to help people succeed”.

It comes as the government announced that rail fares will be frozen for the first time in 30 years.

The fare freeze applies to England and services run by English train operators.

And it will save commuters on more expensive routes more than £300 a year.

Among the rumoured measures in the budget is an extension of the freeze on income tax thresholds, which would see more people dragged into paying tax for the first time or shifted into a higher rate as their wages go up.

However, Conservative leader Kemi Badenoch said Ms Reeves should “have the balls” to admit that such a move would breach Labour’s manifesto promise not to raise taxes on working people.

Politics

Ex-Reform leader in Wales who took pro-Russia bribes ‘can’t besmirch everyone else’, says party’s head of policy Zia Yusuf

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4 hours ago

November 23, 2025

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Ex-Reform leader in Wales who took pro-Russia bribes 'can't besmirch everyone else', says party's head of policy Zia Yusuf

Nathan Gill’s actions were “treasonous” but people should not “besmirch everyone else at Reform”, the party’s head of policy Zia Yusuf has said.

Gill, the former leader of Reform UK in Wales, was jailed for 10 and a half years last week after he admitted accepting tens of thousands of pounds in cash to make pro-Russian statements to the media and European Parliament.

Asked by Sky News’s Sunday Morning with Trevor Phillips if the case showed the party was soft on President Vladimir Putin, Mr Yusuf said that would be an “incredibly unreasonable position to take”.

He said: “Nathan Gill, what he did was treasonous, it was horrific, it was awful. He’s been dealt with by the authorities and he deserves the sentence that he got.”

He added: “As far as we’re concerned he is ancient history. I’ve never met him, I had never heard about him until I saw he was in the newspapers. It is unreasonable to besmirch Reform and the millions of people around the country who support Nigel and support our party.”

Gill, 52, was announced as the leader of Reform UK in Wales in March 2021, but quit the party a few months later after he failed to be elected to the Senedd.

He previously led the Welsh wing of UKIP (UK Independence Party) between 2014 and 2016, then ran by Nigel Farage, and was a member of the Senedd between 2016 and 2017, as well as an MEP between 2014 and 2020.

Gill left UKIP in 2019 to join Mr Farage’s new Brexit Party – later rebranded as Reform UK.

Following an investigation by counter-terrorism police, officers said they believe Gill likely took a minimum of £40,000 in cash.

Prime Minister Sir Keir Starmer demanded an investigation into links between Reform UK and Russia following the case.

Mr Farage’s position on Russia has come under scrutiny in the past. He faced a backlash during the general election campaign when he spoke about the incursion of NATO and how “we provoked this war” in Ukraine.

Speaking to Trevor Phillips, Mr Yusuf insisted his boss has never supported or been sympathetic to Russia’s decision to invade Ukraine, saying it is “not Nigel’s position that ‘we provoked the war’.”

He said: “When he [Farage] was pressed as to how he would respond if he was prime minister and Russian jets encroached into NATO airspace, his view was that those planes should be shot down. We are crystal clear about our position.

“I would also say this: the notion that Vladimir Putin, the murderous dictator, is making decisions based on what Nigel Farage is saying here in England, I think is for the birds.

“We are now in a situation where Ukraine’s sovereignty has been violated, and Vladimir Putin needs to be brought to heel.”

But Labour accused Reform of “pandering to Moscow” following the interview.

Anna Turley, chair of the Labour Party, said Mr Farage has previously called Mr Putin “the leader he most admired and has repeatedly parroted Kremlin talking points”.

She added: “Reform must urgently allow an independent investigation to root out pro-Russia links, to assure the public that Putin holds no sway over their party or its representatives.”

Police have confirmed Mr Farage has not been part of the investigation into Gill.

Mr Farage said on Friday: “An investigation into Russian and Chinese influence over British politics would be welcome.”

The Reform UK MP for Clacton had previously described his former colleague as a “bad apple” and said he was “shocked” after Gill pleaded guilty to bribery.

He said: “Any political party can find in their midst all sorts of terrible people.

“You can never, ever guarantee 100% that everyone you meet in your life, you shake hands with in the pub, is a good person.”