XRP is not a security, Celsius CEO arrested on criminal charges, and more: Hodler’s Digest, July 9-15
Top Stories This Week
Judge rules XRP is not a security in SEC’s case against Ripple
Ripple Labs scored a victory in a district court in New York on July 13, with Judge Analisa Torres ruling partially in favor of the company in a case brought forth by the U.S. Securities and Exchange Commission (SEC) dating back to 2020. According to court documents, Judge Torres granted summary judgment in favor of Ripple Labs, ruling that the XRP token is not a security, but only in regard to programmatic sales on digital asset exchanges. XRP’s price skyrocketed within minutes of the news breaking. The case has been ongoing since December 2020, when the SEC sued Ripple and two of its executives over allegations of offering an unregistered security. Despite the positive outcome, several lawyers warned against celebrating too soon, noting the ruling is only partial and does not set a precedent. In addition, the SEC may appeal the decision, which could result in a reversal by a higher court.
XRP becomes 4th largest crypto after Ripple’s partial win over SEC
XRP has become the fourth-largest cryptocurrency by market capitalization this week after Ripple’s partial victory over the SEC. The price of XRP surged as much as 98% in the hours following the decision, reaching as high as $0.93, according to data from TradingView. Meanwhile, its market cap surged a whopping $21.2 billion to reach a new yearly high of $46.1 billion. The new ruling has also sparked a fresh wave of re-listing activity from mainstay U.S. exchanges, with Coinbase, Kraken and iTrustCapital making the token available for trading on their respective platforms.
Celsius Network fined $4.7B by FTC, and CEO arrested under criminal fraud charges
U.S. authorities have announced charges against the former CEO of bankrupt crypto lender Celsius, Alex Mashinsky, over securities fraud, commodities fraud and wire fraud. Former chief revenue officer Roni Cohen-Pavon and Mashinsky will also face charges of conspiracy, securities fraud, market manipulation and wire fraud related to manipulating the price of the Celsius token. Authorities arrested Mashinsky as part of the indictment, which includes seven criminal counts. In parallel, the Commodity Futures Trading Commission announced a complaint against Celsius along with a $4.7 billion fine, claiming its co-founders marketed the platform as a “safe place” for consumers to deposit their cryptocurrency while misappropriating over $4 billion in consumers’ assets. Under similar allegations, the SEC also filed a lawsuit against the company. While Celsius is cooperating with regulators, Mashinsky pleaded not guilty to charges of misleading customers and inflating the CEL token.
Europe’s first spot Bitcoin ETF eyes 2023 debut after year-long delay
Europe’s first spot Bitcoin exchange-traded fund (ETF) is set to debut later this year after a long delay. The Bitcoin ETF, created by London-based Jacobi Asset Management, was set to debut in July 2022 but was postponed due to market conditions. The asset manager now sees a gradual shift in demand compared with 2022. A related development also took place in Argentina this week, as the nation welcomed its first Bitcoin futures contract. According to Matba Rofex, the trading platform behind the investment vehicle, it is the first Bitcoin futures contract in Latin America.
Binance headcount reduction hits 1,000 employees
Binance has reportedly laid off hundreds of employees in recent weeks. According to former employees, cuts were global and customer service workers were heavily affected, particularly in India. Including this week’s layoffs, over 1,000 employees have lost their jobs at the exchange. Before the slash, Binance’s global headcount was estimated at 8,000. The reorganization could cost Binance more than a third of its staff. The crypto exchange announced the 20% reduction in staff on May 31, claiming it was not downsizing but reallocating resources amid the ongoing crackdown in the United States. Binance’s most enduring challenge is reportedly an ongoing investigation of its activities and executives by the U.S. Justice Department.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $30,227, Ether (ETH) at $1,923 and XRP at $0.72. The total market cap is at $1.21 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are XRP (XRP) at 54.20%, Stellar (XLM) at 37.88% and Synthetix (SNX) at 31.92%.
The top three altcoin losers of the week are eCash (XEC) at -21.82%, Bitcoin SV (BSV) at -16.75% and Maker (MKR) at -7.87%.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Read also
Most Memorable Quotations
“This [Ripple ruling] is a big deal. […] It’s been clear since this case was filed that it would have implications across the entire industry.”
Sheila Warren, CEO of the Crypto Council for Innovation
“What I do think is BlackRock, Invesco [and] the group of ETF providers is a real signal that adoption is coming.”
Mike Novogratz, founder and CEO of Galaxy Digital
“I think the next crypto cycle will be driven by consumer apps that are powered by crypto, but users won’t know it’s crypto unless they look closely.”
0xDesigner, pseudonymous Web3 UI/UX designer
“XRP is not a security. This victory for Ripple is a win for the entire industry and a step toward regulatory clarity in the U.S.”
Ripple Labs, developers of the Ripple payment protocol
“[It] is our expectation that the price of Bitcoin will repeat its historical pattern of rallying both ahead of and following each Bitcoin halving.”
Berenberg Capital Markets, New York-based investment firm
“I think if we want Bitcoin to be more than payments, it needs more scaling solutions.”
Vitalik Buterin, co-founder of Ethereum
Prediction of the Week
Can XRP price hit $1? Watch these levels next
The price of XRP has skyrocketed after a federal court ruling declared that its sales on crypto exchanges complied with United States securities laws. At its highest during the week, the XRP/USD pair reached $0.93, its best level since December 2021.
Certain indicators show that XRP’s ongoing price pump may not be just a short-term reaction to the positive news for Ripple. For instance, the duration of XRP’s massive pump coincides with its trading volumes reaching a 10-month high.
The number of XRP whale transactions — wallets holding more than $100,000 — climbed to their best level in 2023, suggesting that the wealthiest investors back the XRP rally. “If key whale and shark addresses are increasing their supply going into this pump, then it is a get foreshadowing signal that the pump may just be getting started,” stated pseudonymous analyst Brian Q from data analytics platform Santiment.
From a technical standpoint, XRP can test the key $1 level in the coming days, but its potential to continue the rally beyond looks weak for the time being. If the XRP price decisively breaks above $1, then its next price target by September will likely be near $1.35.
FUD of the Week
Blockchain Association calls for investigation into Prometheum over alleged ‘sweetheart’ SEC deal
The Blockchain Association has submitted a letter to the U.S. SEC calling for an investigation into crypto firm Prometheum. In the letter, the Blockchain Association requested the regulator to take a look at Prometheum’s special purpose broker-dealer license approval by the Financial Industry Regulatory Authority. The group also raised concerns about the means by which co-CEO Aaron Kaplan secured a seat testifying before the U.S. House Financial Services Committee in June. Prometheum has reportedly changed its public position from calling for regulatory clarity from the SEC to claiming that “there exists a clear pathway to registration for digital assets and legislation is unnecessary” in the country.
New York prosecutor charges hacker over $9M exploit of Solana-based exchange
A former security engineer for an international technology firm has been arrested and charged for allegedly using a smart contract bug to steal $9 million in cryptocurrency from a Solana-based decentralized crypto exchange. The attack was carried out in July 2022 and involved exploiting a vulnerability in the exchange’s smart contracts to generate inflated fees with flash loans. The exploiter later returned most of the funds but was allowed to keep $1.6 million as a white hat bounty. The indictment indicates that the U.S. Department of Justice will “pursue criminal charges if a person intentionally uses a protocol in a way that it was not *intended* to be used,” crypto lawyer Orlando Cosme said on Twitter.
Algorand decentralized lending protocol Algofi to shut down by end of year
Algofi, the borrowing and lending protocol built on decentralized finance blockchain Algorand, will soon shut down. According to a July 11 announcement, developers’ “belief in the strength of Algorand’s technology and novel consensus algorithm has not wavered.” Liquidity Mining programs will be halted and several collaterals will be reduced to 0% until December. The Algofi protocol has around $25 million in total value locked, down from its $135 million peak in February.
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Sir Keir Starmer has said he was “heavily focused” on world affairs before he was forced to U-turn on his welfare bill after rebellion by MPs.
In a piece in The Sunday Times, Sir Keir said he was occupied with the G7 and NATO summits and the escalating tensions in the Middle East for much of the past two weeks.
His “full attention really bore down” on the welfare bill on Thursday, he added.
It comes after the government was forced to U-turn on plans to cut sickness and disability benefits after significant rebellion by Labour MPs earlier this week.
The government has since offered concessions ahead of a vote in the Commons on Tuesday, including exempting existing Personal Independence Payment claimants (PIP) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.
Prime Minister Sir Keir Starmer. File pic: PA
Sir Keir defended the U-turn by saying: “Getting it right is more important than ploughing on with a package which doesn’t necessarily achieve the desired outcome.”
He said all the decisions were his and that “I take ownership of them”.
There have been reports that rebel MPs blamed Sir Keir’s chief of staff Morgan McSweeney for the government’s approach.
Read more:
This has been the PM’s most damaging U-turn yet
Is Starmer at the mercy of his MPs?
Sir Keir said: “My rule of leadership is, when things go well you get the plaudits; when things don’t go well you carry the can.
“I take responsibility for all the decisions made by this government. I do not talk about staff and I’d much prefer it if everybody else didn’t.”
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Is Starmer at the mercy of his MPs?
Sir Keir said on Saturday that fixing the UK’s welfare system is a “moral imperative”.
Speaking at Welsh Labour’s annual conference in Llandudno, North Wales, Sir Keir said: “Everyone agrees that our welfare system is broken, failing people every day.
“Fixing it is a moral imperative, but we need to do it in a Labour way, conference, and we will.”
Politics
Hundreds of NHS quangos to be axed – as plans unveiled for health funding to be linked to patient feedback
NHS funding could be linked to patient feedback under new plans, with poorly performing services that “don’t listen” penalised with less money.
As part of the “10 Year Health Plan” to be unveiled next week, a new scheme will be trialled that will see patients asked to rate the service they received – and if they feel it should get a funding boost or not.
It will be introduced first for services that have a track record of very poor performance and where there is evidence of patients “not being listened to”, the government said.
This will create a “powerful incentive for services to listen to feedback and improve patients’ experience”, it added.
Sky News understands that it will not mean bonuses or pay increases for the best performing staff.
NHS payment mechanisms will also be reformed to reward services that keep patients out of hospital as part of a new ‘Year of Care Payments’ initiative and the government’s wider plan for change.
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Do you want AI listening in on chats with your doctor?
Speaking to The Times, chief executive of the NHS Confederation Matthew Taylor expressed concerns about the trial.
He told the newspaper: “Patient experience is determined by far more than their individual interaction with the clinician and so, unless this is very carefully designed and evaluated, there is a risk that providers could be penalised for more systemic issues, such as constraints around staffing or estates, that are beyond their immediate control to fix.”
He said that NHS leaders would be keen to “understand more about the proposal”, because elements were “concerning”.
Read more from Sky News
Amber health heat alert issued
Patient died ‘unexpectedly’ after NHS cyber attack
Doctors told to stop using unapproved AI
Health Secretary Wes Streeting said: “We will reward great patient care, so patient experience and clinical excellence are met with extra cash. These reforms are key to keeping people healthy and out of hospital, and to making the NHS sustainable for the long-term as part of the Plan for Change.”
In the raft of announcements in the 10 Year Health Plan, the government has said 201 bodies responsible for overseeing and running parts of the NHS in England – known as quangos – will be scrapped.
These include Healthwatch England, set up in 2012 to speak out on behalf of NHS and social care patients, the National Guardian’s Office, created in 2015 to support NHS whistleblowers, and the Health Services Safety Investigations Body (HSSIB).
The head of the Royal College of Nursing described the move as “so unsafe for patients right now”.
Professor Nicola Ranger said: “Today, in hospitals across the NHS, we know one nurse can be left caring for 10, 15 or more patients at a time. It’s not safe. It’s not effective. And it’s not acceptable.
“For these proposed changes to be effective, government must take ownership of the real issue, the staffing crisis on our wards, and not just shuffle people into new roles. Protecting patients has to be the priority and not just a drive for efficiency.”
Elsewhere, the new head of NHS England Sir Jim Mackey said key parts of the NHS appear “built to keep the public away because it’s an inconvenience”.
“We’ve made it really hard, and we’ve probably all been on the end of it,” he told the Daily Telegraph.
“The ward clerk only works nine to five, or they’re busy doing other stuff; the GP practice scrambles every morning.”
Carrie Johnson – the wife of former prime minister Boris Johnson – has revealed she was admitted to hospital with severe dehydration, as she offered advice to other breastfeeding mothers in the hot weather.
Mrs Johnson, 37, posted a picture of herself and her newborn daughter Poppy Eliza Josephine on Friday in a hospital bed.
“Being hospitalised for two nights for severe dehydration was not on my postpartum bingo card,” she captioned the Instagram post.
Mrs Johnson urged other “breastfeeding mums” to make sure they eat and drink enough “in this heat”, especially those who are “clusterfeeding”.
Poppy was born on 21 May, becoming the couple’s fourth child after their son Frank, born in July 2023, daughter Romy, born in December 2021, and son Wilfred, born in April 2020.
Boris Johnson with newborn daughter Poppy Eliza Josephine Johnson. Pic: Carrie Johnson/Instagram
In a separate Instagram story, Mrs Johnson described an “honestly brutal week”.
“Mastitis (me), reflux (her), dehydration (me). What a pair we are!,” she said.
“But thank you for all the kind messages, especially all the brilliant advice on reflux. Really appreciate it and made me feel way less alone going thru (sic) it all. And as ever, thanks to our amazing NHS.”
Carrie and Boris Johnson after his resignation in 2022. Pic: PA
Read more from Sky News:
Hundreds of NHS quangos to be axed
‘Most effective’ protection to avoid sunburn (and it isn’t suncream)
The NHS recommends drinking plenty of fluids while breastfeeding – and avoiding caffeine and alcohol to stop their effects being passed on to the baby.
Having a drink nearby when mothers stop to feed is advised, as is water, lower-fat milk, and low-sugar drinks.
The UK Health Security Agency (UKHSA) has issued an amber heat health alert for the next four days.
Although not a public weather warning, it advises health and social care organisations of possible dangers to their patients and facilities.
Temperatures could reach 34C on Monday – with a 20% chance of beating the hottest June day on record of 35.6C from 1976.
The likelihood of record-breaking temperatures could increase over the weekend as the day approaches.
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