Editor's Choice
Russia has risen to second place in the world in terms of energy capacity for cryptocurrency mining: up to 2.5 GW is utilized thanks to 800,000 ASIC miners, despite the lack of regulation 🏦⚡️
Russia has become the second-largest country by energy capacity for crypto mining, reaching 1 gigawatt (GW) in the first quarter of this year, according to Bitriver, the country’s largest mining operator. The US remains the leader with 3–4 GW of mining power. However, Alexander Brazhnikov from the Russian Association of Cryptoeconomics estimates Russia's capacity might exceed 2.5 GW due to around 800,000 ASIC miners in operation.Russia's growth in crypto mining has been driven by cheap energy and favorable climates in regions like Irkutsk, with electricity consumption increasing 20-fold from 2017 to 2022. Despite this, the future remains uncertain due to a lack of clear regulations, as a proposed bill has yet to be passed in Moscow.Other top mining countries include Gulf nations (700 MW), Canada (400 MW), Malaysia (300 MW), and Argentina (135 MW). Though the US leads in global hashrate share, the market faces challenges due to rising electricity costs, lower profitability, and bankruptcies among over-leveraged mining companies.
Taiwan has allowed major investors to invest in foreign crypto ETFs through re-entrustment: thorough checks and staff training are implemented for safe operations with volatile assets 💰📊
Taiwan’s Financial Supervisory Commission (FSC) is allowing professional investors, including institutional investors, high-net-worth individuals, and high-asset clients, to invest in foreign crypto ETFs through local securities firms. This “re-entrustment” method opens the door to high-stakes virtual asset investments, but only for those who meet strict criteria. Securities firms are responsible for ensuring investors have the necessary experience and knowledge, and must regularly train staff to stay informed on crypto products.Taiwan’s crypto market has faced tighter regulation, especially after incidents like the FTX collapse. The FSC now requires virtual asset service providers (VASPs) to comply with Anti-Money Laundering (AML) regulations, operational transparency, and consumer protection standards. Non-compliance means no business, and all crypto activities are subject to a 5% VAT, with exceptions for smaller transactions under NT$40,000 monthly.
Jensen Huang: AI will become both a threat and a solution to the issue of disinformation in US elections, predicting a 20-fold increase in power consumption in data centers ⚡️ and the need for more powerful AI to protect against harmful attacks 🧠
Nvidia CEO Jensen Huang argues that advanced AI is the only way to combat AI abuse, especially with concerns over AI-generated misinformation rising ahead of U.S. elections. Nearly 60% of Americans worry about AI's potential to spread false information. Huang compares AI threats to cybersecurity, emphasizing that AI-driven systems are essential for defense. He predicts AI data centers will need 10 to 20 times more electricity in the future and suggests building them near abundant energy sources.Huang also urges the U.S. government to embrace AI across all departments, especially Energy and Defense, and even proposes an AI supercomputer. However, debates over AI regulation continue. In California, Governor Gavin Newsom vetoed a bill that would have imposed mandatory AI safety measures, arguing it would stifle innovation without effectively addressing AI threats.
The US Securities and Exchange Commission charged TrueCoin and TrustToken with fraud related to TrueUSD: the companies agreed to fines and restitution after using offshore funds
The SEC has announced settled charges against TrueCoin LLC and TrustToken Inc. for fraudulent and unregistered sales of investment contracts involving TrueUSD (TUSD). According to the SEC, from November 2020 to April 2023, TrueCoin and TrustToken falsely marketed TUSD as fully backed by U.S. dollars, when in reality, a significant portion of the backing assets were invested in a speculative offshore fund. By September 2024, 99% of the reserves backing TUSD were tied up in this risky fund. Both companies agreed to settle by paying civil penalties and disgorgements without admitting or denying the allegations, pending court approval. The investigation is ongoing.
A phishing attack stole 12,083 Spark Wrapped Ethereum (spWETH) worth $32 million, with funds distributed across wallets holding 1,750 ETH, 2,050 ETH, 2,900 ETH, and 3,730 ETH
A senior Kakao executive filed a 10 billion South Korean won ($7.6 million) lawsuit against GroundX after the hacking of the Klip cryptocurrency wallet in KakaoTalk
South Korea expands the concept of "improper influence": Cryptocurrencies and insider information exchanges are now included in the list of financial gains to combat corruption and protect investors under a new legislative initiative 🇰🇷💸
Binance Pool has launched merged mining for Bellscoin (BEL) with simultaneous rewards in Litecoin (LTC), Dogecoin (DOGE), and BEL; the service is available from September 29, 2024, for verified users 🎉
Elon Musk posts an AI-generated image of Kamala Harris as a communist on X, garnering millions of views and criticism for spreading misinformation 💬
The UK Gambling Commission accuses Sorare of unlicensed gambling: the French Ethereum-based fantasy sports platform is under trial for using NFTs 💰
A fraudulent app on Google Play stole more than $70,000 in cryptocurrency by posing as WalletConnect: 150 users fell victim to a phishing attack 🚨
Senator Cynthia Lummis criticizes the SEC for a lack of clear crypto regulations, proposes transferring the regulation of Bitcoin and Ethereum to the CFTC, and calls for the repeal of SAB 121 📉
The FBI seized over $6 million in cryptocurrency following a scam in Southeast Asia: 12% of American dating site users were victims of the "pig butchering" scheme 💸
The FBI recently seized over $6 million in cryptocurrency following a scam targeting American citizens, which was operated from Southeast Asia. The fraudsters tricked victims into believing they were investing in legitimate projects, leading to significant financial harm.FBI Assistant Director Chad Yarbrough emphasized the devastating impact of such crypto scams on Americans and highlighted the importance of continued efforts to combat them. This seizure marks one of the largest of its kind this year, underscoring the growing challenges of tackling cryptocurrency fraud in a globalized market.
The U.S. Foreign Affairs Committee is demanding the release of Binance head Tigran Gambaryan, who was detained in Nigeria on charges of financial crimes, amid serious health issues including pneumonia and a herniated disc 💼🌐
U.S. House Demands Release of Binance Exec Tigran Gambaryan Amid Health CrisisThe U.S. House Foreign Affairs Committee recently passed H.Res. 1348, urging Nigeria to release Binance’s head of financial crime compliance, Tigran Gambaryan, who has been detained since February. Gambaryan, accused of illegal financial activities, faces serious health issues, including pneumonia and a herniated disk, prompting urgent calls for his release.The U.S. Committee has heightened diplomatic pressure, criticizing Nigeria’s lack of cooperation and calling for Gambaryan to be classified as "wrongfully detained." The situation has drawn international attention, especially as Binance connects Gambaryan's case to its compliance with Nigeria’s evolving regulatory framework for Virtual Asset Service Providers.Despite these challenges, Binance remains strong, reporting a 40% rise in institutional investor interest this year. The crypto community is closely watching how the case and upcoming regulatory developments, including the anticipated release of Binance founder Changpeng Zhao, will impact the market.This case reflects the growing tension between international crypto regulation, corporate responsibility, and human rights.In related news: Polygon's POL token rose 5% following an upgrade to dApps and rebranding from MATIC.
Mango DAO settled the case with the SEC for $700,000 over the sale of unregistered MNGO tokens and unlicensed brokerage activities, reaching an agreement with the CFTC for $500,000 💸 amid accusations of violating U.S. securities and exchange laws 💼
Mango DAO Reaches Settlement with SEC Over Unregistered SecuritiesMango DAO settled charges with the SEC for selling unregistered MNGO tokens and offering unlicensed broker services through Mango Labs LLC and Blockworks Foundation. The settlement requires Mango DAO to destroy its MNGO tokens, halt trading requests on exchanges, and pay $700,000 in fines. The agreement, still pending court approval, follows a community vote in August.Additionally, Mango DAO reached a $500,000 settlement with the CFTC in October 2023 over a similar investigation. The SEC's complaint accused Mango DAO of raising $70 million from the sale of MNGO tokens in 2021, while Mango Labs was accused of acting as an unregistered broker.The settlement follows the conviction of Avraham Eisenberg, who exploited Mango Markets in 2022, resulting in $110 million in losses. Eisenberg faces sentencing for fraud and market manipulation in December. This case marks a notable event amid increased regulatory focus on DeFi platforms and token offerings.
Bitget Wallet launches the OmniConnect SDK to integrate Telegram Mini-Apps with over 500 blockchains, including Solana and EVM-compatible networks, attracting over 1 billion users into the Web3 ecosystem 🌐📱
Bitget Wallet has introduced OmniConnect, a new SDK designed to integrate Telegram Mini-Apps with over 500 blockchains, including Solana and EVM-compatible networks. This allows for seamless transaction execution across multiple platforms, broadening the possibilities for developers. Previously, Telegram Mini-Apps were limited to the TON network, but OmniConnect expands their utility, positioning Telegram as a powerful entry point into Web3 for its billion-plus users.Alvin Kan, COO of Bitget Wallet, highlights that OmniConnect eliminates the limitations of interacting solely with TON, offering developers more flexibility to create multichain applications. This aligns with Bitget Wallet's vision of onboarding users from social platforms into Web3. With nearly 2 million downloads in August 2024 alone, the wallet is rapidly gaining popularity. It offers innovative features like trading bots and keyless logins, emphasizing ease of access and security.Bitget Wallet's OmniConnect SDK marks a significant step in integrating social media with decentralized technologies, paving the way for broader Web3 adoption through Telegram.
Best news of the last 10 days
Roman Storm (co-founder of Tornado Cash) will go on trial on December 2 in New York for money laundering through Tornado Cash and violating the International Emergency Economic Powers Act 💰⚖️
The Bitcoin Federal Association (BTCBV) has started operations: lobbying and developing the Bitcoin ecosystem in Germany and the EU, with the government selling all 46,359 BTC in 2024 💰📉
Nic Carter: Regulatory pressure from the U.S. forced Silvergate Bank to limit cryptocurrency deposits to 15%, which led to its collapse and became part of "Operation Choke Point 2.0" during the 2023 banking crisis 💥
Visa and Mastercard have invested more than $80 million in lobbying against reforms to protect their positions amid rising cryptocurrency threats from Bitcoin and Ethereum 💳
PayProtocol AG will cease virtual asset services for Paycoin in South Korea by April 2025 due to regulatory issues but will continue developing international payments with PCI at Apple, Shake Shack, and Swarovski 🌍
PayProtocol AG, the issuer of Paycoin, announced it will end its virtual asset custody services in South Korea due to regulatory challenges. Since February 2023, the company has been unable to resume its payment services, leading to the decision not to renew its Virtual Asset Service Provider (VASP) registration, set to expire in April 2025. Instead, PayProtocol will focus on expanding its international payment ecosystem.In July, South Korean authorities considered delaying a planned 20% crypto gains tax until 2028 due to concerns over market impact and regulatory readiness.Paycoin is making strides internationally, launching a global app for PCI payments at retailers like Apple and Shake Shack. The company also established operations in Lithuania, securing VASP status in crypto-friendly jurisdictions.While Paycoin's domestic wallet services will end, other features like Wallet Connect and Paycoin Shopping will continue. Withdrawals will be supported until April 2025, though new wallet creation and deposits stopped in September 2024.
The Bedrock protocol lost $2 million due to an exploit in uniBTC vaults, despite a warning from Dedaub; the amount could have reached $75 million. The developers offered the hacker the chance to become a white-hat hacker 👾
Bedrock, a crypto liquid restaking protocol, recently suffered a $2 million loss due to a security exploit. Web3 security firm Dedaub detected a vulnerability in Bedrock’s uniBTC vaults on September 26 and alerted the protocol. However, Bedrock didn't act quickly enough, and the attacker exploited the flaw before it was fixed.The attacker stole $2 million but had the potential to take up to $75 million. On September 27, Bedrock confirmed the breach and assured users that remaining funds were secure. The protocol is now working on compensating affected investors and collaborating with auditors to recover the stolen funds.In a notable move, Bedrock reached out to the hacker via an onchain message, offering a reward and a potential role as a white hat hacker. As of yet, the hacker has not responded.
The US accused two Russians of laundering $1.15 billion through crypto schemes: $10 million for information about those involved with the illegal exchanges Cryptex-net, UAPS, and PM2BTC 🌐
Two Russian nationals, Sergey Ivanov and Timur Shakhmametov, have been charged by U.S. authorities for operating a global cryptocurrency money laundering network. They allegedly provided services to cybercriminals, including darknet drug traffickers and ransomware operators, using crypto platforms. The U.S. Department of State has offered a $10 million reward for information leading to their arrests.This action is part of a broader international effort involving authorities from the U.S., Europe, and multiple other countries, which included the seizure of websites associated with illicit crypto exchanges like Cryptex.net, UAPS, and PinPays. Ivanov and Shakhmametov were linked to laundering billions of dollars and operating carding sites, such as Joker's Stash, known for selling stolen payment card data.U.S. President Joe Biden emphasized the importance of this operation in the context of efforts to counter Russian sanctions evasion amid ongoing geopolitical tensions.
Hong Kong regulators will introduce Digital Token Identifiers (DTI) for cryptocurrency derivatives reporting starting on September 29, 2025, following EU standards 📅📈
Hong Kong's financial regulators are aligning their reporting requirements for crypto over-the-counter (OTC) derivatives with European standards. On September 26, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced plans to implement Digital Token Identifiers (DTIs) for identifying crypto assets in OTC derivatives reporting, starting September 29, 2025.This decision follows a consultation earlier in 2024, where Hong Kong stakeholders highlighted challenges in classifying OTC derivatives into traditional asset classes. The move aims to provide clearer identification of crypto assets, mirroring the European Securities and Markets Authority's (ESMA) use of DTIs, which was introduced in October 2023.To aid in the transition, reporting entities can continue using existing identifiers like Unique Swap Identifier (USI) and Unique Trade ID (TID) until the new system takes full effect. Hong Kong regulators also plan cross-border cooperation with financial authorities from Singapore, Australia, and Japan for a coordinated implementation of DTIs in the Asia-Pacific region.This regulatory shift comes as Hong Kong's Customs and Excise Department and SFC consider a new licensing framework for OTC crypto services and cryptocurrency custody regulations.