“The CFTC announced Thursday that BitMEX, CEO Arthur Hayes, company owners Ben Delo and Samuel Reed, and corporate entities allegedly offered U.S. customers illicit crypto derivative trading services.
Similarly, Audrey Strauss, the acting U.S. Attorney for the Southern District of New York announced that Hayes, Delo, Reed and Gregory Dwyer (BitMEX’s first employee) were being charged with violating the Bank Secrecy Act and conspiracy to violate the act.
Reed has already been arrested; the others remain at large, an SDNY press release said.
The CFTC charged BitMEX with executing futures transactions on an unregistered board, offering illegal options, failing to register as a futures commission merchant, failing to register as a designated contract market, failing to implement proper know-your-customer rules and other counts, according to an attached legal filing.
One defendant went as far as to brag the company incorporated in a jurisdiction outside the U.S. because bribing regulators in that jurisdiction cost just ‘a coconut. Thanks to the diligent work of our agents, analysts, and partners with the CFTC, they will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time.
The CFTC is looking for a permanent injunction prohibiting the defendants from entering into any transactions “involving ‘commodity interests,’” soliciting funds for purchasing or selling commodity interests and applying for registration with the CFTC.
In addition, the agency wants the defendants to disgorge profits; provide full restitution to its customers; pay civil penalties; and rescind “all contracts and agreements” with any customers if those agreements violate the law.
Attorneys for Dwyer said they would contest the charges. ‘In the meantime, the BitMEX platform is operating entirely as normal and all funds are safe.'”
See Also: BitMex denies CFTC and DoJ allegations, says trading will continue
See Also: Should DEXs Be Worried After BitMEX? DeFi Founders Weigh In
See Also: BitMEX’s Receding Market Share Might Have Spared Bitcoiners Bigger Sell-Off
“SKALE, an “elastic blockchain network” working to support Ethereum-based projects, has successfully deployed phase two of its mainnet. The Ethereum-as-a-service platform said it now has over $78 million in total value locked (TVL).
These staked millions come from more than 4,000 users and entities from 90 countries helping to secure some 130 network nodes across 46 validators.
SKALE Chains will run DeFi, gaming, and Web 3 applications.”
“Ethereum miners earned over six times more in fees compared to those working on Bitcoin in September. Ethereum’s total transaction fees stood at an all-time high of $166 million for the month – far more than the $26 million taken in Bitcoin fees.
Fee revenue on Ethereum first outpaced Bitcoin’s in June – the same month decentralized lender Compound released its governance token and kick-started the DeFi mania.”
“Although Spadina is now healthy and finalizing, the launch was not as smooth sailing as it could have been [with] some errors near the edge of the stack with regards to client release and configuration.
Since many users experienced critical issues getting their nodes up and running, we’re opting for another crack at it before the deposit contract is launched and a mainnet genesis date is set. Enter Zinken.
As with Spadina, the primary goal of Zinken is to practice the genesis process. This means that, although the testnet may run for longer, client teams and ecosystem tools will only provide support for a few days.
The Zinken Launchpad is live today. Genesis time is expected to be approximately Monday, October 12th at 12 UTC.”
“Vaults are now open for deposits of Chainlink’s LINK, Loopring’s LRC and Compound’s COMP. Community members pitched proposals to add the tokens this summer and voted for their integration via Maker’s on-chain governance platform this week.
Counting this new crop of collateral options, MakerDAO has added 11 new DAI vault pairs this year, [including] MANA, WBTC, ZRX, KNC, TUSD, PAX, USDC and USDT.”
“With close to $1 billion bridged to the Ethereum blockchain in the form of “Wrapped Bitcoin”(WBTC), it’s clear that the demand for cross-chain crypto assets within DeFi is very real.
To scale WBTC’s reliability and support its growing demand, we are excited to be working with the Chainlink team to streamline the auditability of WBTC reserves. DeFi applications can now receive definitive onchain proof about the fully backed collateralization of WBTC.“
“Kik CEO Ted Livingston said he was “disappointed in this ruling,” and that the company is considering its options, including a potential appeal. The parties have until Oct. 20 to file either a joint proposal for providing relief to Kik’s investors, or a document explaining their positions on how to proceed.
Kik General Counsel Eileen Lyon took aim at the SEC in a statement, saying the agency ‘should engage in proper rulemaking, including the opportunity for public commentary, rather than force our industry to hunt for regulatory clues among the SEC’s conflicting statements.'”
“An institutional-grade conduit to the crypto ecosystem, is emerging from stealth mode to serve brokers, custodians, exchanges and over-the-counter (OTC) trading desks.
Over the past year or so, Talos has been quietly onboarding a core group of capital market participants so that the platform can make its debut in a revenue-generating state.
Talos provides tools to support clients through the full trading lifecycle, from price discovery through to clearing and settlement.
One of the biggest keys to widespread institutional adoption of digital assets is a technology infrastructure that unites all market participants and gives them the confidence to operate at scale.”
“Dapper Labs is rolling out its blockchain-based collectibles game, NBA Top Shot, to the public [toward the end of Q4]. Currently in its beta version and developed in partnership with the National Basketball Association, Top Shot will also be available to U.S.-based Samsung users on the Galaxy app store.
Built using non-fungible tokens (NFTs) minted on the purpose-built Flow blockchain, Top Shot lets users collect, showcase and trade in-game “moments” which capture moves made on the real court.
For instance, a user can purchase a moment based on a James Harden dunk and showcase it, sell it or swap it for, say, a Steph Curry three-pointer.”
“I’ve been fascinated with crypto for years and its applications beyond currencies, and believe that it can create a new paradigm for creative ownership directly between artists and their communities.
Anjos said 25,000 $RAC will be split between 1,545 Bandcamp supporters, and another 25,000 $RAC will be split between 219 individuals that have purchased token merchandise.
In addition, 200,000 $RAC will be split between 152 existing Patreon supporters, and 14,000 $RAC will go to EGO token holders. Not to be left out, 150,000 $RAC tokens will be going to Twitch supporters.”
“Shenzhen’s stock exchange, one of the biggest exchanges in the Asia-Pacific region, announced that they have co-launched a blockchain solution for trading with unlisted private-sector companies.
On September 30, the Shanghai Stock Exchange also announced their intention to conduct a pilot for a blockchain-backed trading platform jointly with the China Securities Regulatory Commission.”