Aave pauses V2 on Ethereum, freezes certain assets on V3 due to reported issue
DeFi lending protocol Aave has paused some operations as a temporary protection measure following reports of an issue, the protocol announced in a post on X. No funds are at risk, the protocol added. The protocol has paused Aave V2 operations on Ethereum, along with freezing certain assets on Aave V3 on Polygon, Arbitrum, and Optimism. The protocol announced service will be restarted following the approval of a forthcoming proposal to restart the paused operations.
The protocol clarified that V3 remains live on Ethereum, Base, and Metis, and V2 operations on Polygon and Avalanche are unaffected. Aave did not respond immediately to a request from comment from The Block. The protocol has paused Aave V2 operations on Ethereum, along with freezing certain assets on Aave V3 on Polygon, Arbitrum, and Optimism. The protocol announced service will be restarted following the approval of a forthcoming proposal to restart the paused operations, and that a postmortem explaining the issue will be released "once the issue is fully resolved." No user funds are currently at risk, the protocol added.
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JPMorgan Adds Programmable Payments to JPM Coin
Users of JPMorgan's (JPM) blockchain-based settlement token, JPM Coin, can now program their accounts to make payments automatically according to preset conditions. The financial giant is allowing clients to plug in conditions for funds to be moved to cover overdue payments or margin calls, according to an email on Friday. Previously, they had to set standing orders for payments to take place at a particular time, whereas now they can program them to kick in when the relevant criteria are met.
JPMorgan introduced JPM Coin in 2019 to enable institutional clients to make wholesale payments on a blockchain. Last month it reached the milestone of handling $1 billion of transactions daily, though this remains a trivial figure compared with the $10 trillion the bank moves every day in total. "This new feature helps clients to respond dynamically to events, which is ever more important as 24x7 payment infrastructure proliferates, and responding to volatility becomes vital," the bank said. Previously clients would need to set standing orders for payments to take place at a particular time; now they can program them to kick in when the relevant criteria are met. whereas now they can program them to kick in when the relevant criteria are met.
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NPS Buys Coinbase Shares For A Total Of $19.9 Million, Signaling Crypto’s Rise
The world’s third-largest pension fund, NPS buys Coinbase shares in Q3, marking its first venture into the crypto industry. This year alone, the pension fund acquired 282,673 shares of Coinbase Global. According to the latest holdings report submitted to the US Securities and Exchange Commission (SEC), the NPS bought $19.9 million worth of shares in the digital asset company during the third quarter. This year alone, the pension fund acquired 282,673 shares of Coinbase Global.
The acquisition marks the first time NPS has included any crypto-related security as part of its investment option. With over $755 billion in assets under management, it is not common for investors like NPS to directly invest in digital assets. Instead, they typically enter the industry through company investments, as seen in this case with Coinbase. Coinbase, with its position at the forefront of the industry, is well-positioned to take advantage of this growing interest. It is expected that similar moves by other investors will emerge in the coming months, signaling the continued development and potential of the crypto market. The fact that NPS, a traditional finance and investment entity, has shown interest in purchasing Coinbase shares highlights
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BNB price spikes amid report of possible Binance deal with DOJ
The price of BNB rose Monday after a report the U.S. Department of Justice is seeking $4 billion from Binance as part of a deal that could end its ongoing investigation. BNB has increased by over 5% in the past 24 hours and was changing hands for $254.51 at 1:50 p.m. in New York, according to CoinGecko. It had surged as high as $258.05, the highest price since June 9. According to a Bloomberg report on Monday, the DOJ is seeking over $4 billion from Binance Holdings Ltd.
The DOJ has been investigating the world's largest cryptocurrency exchange over alleged money laundering, bank fraud and sanctions violations, according to the Bloomberg report. Negotiations include the possibility that Binance CEO Changpeng Zhao could face criminal charges in the U.S. as part of an agreement to resolve the probe, the report added. The report said investors are stalling, with risk-off sentiment returning to a previously buoyant market. This is despite the latest indications on FedWatch that reveal an almost 98.8% probability that the U.S. central bank will maintain its target rate within the current range of 5.25% to 5.50% at its next meeting on December 13.
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GBTC Discount Shrinks To Two-Year Low of 7.5%
GBTC shares are approaching BTC parity as negotiations between Grayscale and the SEC move apace. Shares for the Grayscale Bitcoin Trust (GBTC) – the world’s largest Bitcoin fund – are nearly back to parity with Bitcoin (BTC)’s price after trading deeply underwater for the past two years. Their rising value reflects market confidence that Grayscale’s efforts to convert its fund into a Bitcoin spot ETF will prove successful. GBTC’s discount to NAV ratio shrank as low as 8.6%, according to Bloomberg ETF analyst Eric Balchunas.
The discount reflects the difference between the market cap of GBTC’s shares versus the total value of all BTC held by the trust. According to the most recent figures from Grayscale’s website, the fund holds $33.75 in BTC per share, compared to a market price of $31.21 right now – a mere 7.5% discount as of Friday. At the time, separate memos from the Securities and Exchange Commission (SEC) showed that executives from Grayscale, BlackRock, and others held meetings with the SEC’s Division of Trading and Markets on Monday to discuss their respective ETF applications. Major investors like Cathie Wood and Mike Novogratz – who themselves govern funds sponsoring separate ETF applications – have noted increased engagement from the SEC in helping to sharpen their products before they reach the market
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AntPool agrees to refund record $3 million Bitcoin transaction fee
Bitcoin mining pool AntPool has agreed to refund the record-breaking $3 million transaction fee it mined last week, pending owner verification. AntPool wrote in the announcement. “The risk control system of AntPool temporarily froze the fee when packaging the transaction. Please contact us before 00:00 (UTC+8) on December 10, 2023 and verify personal identity. After verification, AntPool will refund the fee.”
AntPool requested the original owner of the funds to prepare a signing tool, such as Electrum or Bitcoin Core — the most widely used software implementation of the Bitcoin protocol — using the private key of the address that sent the transaction to sign the message “AntPool”, then send the signed text to its support email address. The transaction was mined by AntPool in block 818,087 but it had not publicly commented on the matter until now. The previous record $500,000 fee paid in September was subsequently identified as a “fat finger” overpayment by the crypto services provider Paxos. F2Pool, the miner facilitating that transaction, agreed to reimburse the fee to Paxos
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Tether’s holdings of BTC currently have a profit of $1.1 billion
Tether’s holdings of BTC have announced a new investment strategy that will see it allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC). The move is seen as a sign of Tether’s confidence in the cryptocurrency market and its belief in Bitcoin’s long-term potential. Under the new strategy, Tether will only purchase Bitcoin with profits that it has already realized, rather than unrealized capital gains from price increases.
Tether will also store the Bitcoin it purchases in its own custody, rather than using a third-party custodian. This is in line with the company’s philosophy of “Not your keys, not your bitcoin”. Tether’s decision to invest in Bitcoin is based on the belief that the cryptocurrency has the potential to reshape the way we conduct business and live our lives. Bitcoin has a proven track record of impressive returns and is increasingly being recognized and adopted by major financial institutions. Tether believes that Bitcoin is a key component of a diversified investment portfolio. In addition to investing in Bitcoin, Tether is also exploring other opportunities in the digital asset landscape.
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Binance Research Report Reveals 110% Surge in Crypto Market Cap YTD
Positive shift in stablecoin supply, NFT trade volume resurgence, and increased fees signal crypto market maturation. A recent report from Binance Research reveals a remarkable surge in the total cryptocurrency market capitalization, which has climbed by about 110% year-to-date, adding over $870 billion in capital, with a notable 55% increase observed in Q4 alone. This growth follows a period of stagnation after the 2021 crypto highs, marking a potential shift in market dynamics.
A significant finding highlighted in the report is the first positive shift in the quarterly net change of the supply of the top five stablecoins since Q1 2022. This indicates a growing interest and influx of capital into cryptocurrencies. Moreover, there has been a notable resurgence in trade volumes of NFTs, particularly in Bitcoin NFTs, breaking the previous year-long downtrend. NFT trade volume resurgence reflects a renewed market sentiment and a revival in speculation. The study also highlights a surge in fees generated by leading crypto projects in November, suggesting the maturation of these platforms into revenue-generating businesses, with Ethereum leading in fee generation.
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SEC Chair Gary Gensler doesn't want to talk about 'crypto securities'
Securities and Exchange Commission Chair Gary Gensler didn't seem like he wanted to talk about crypto on Wednesday after a meeting focused on the U.S. Treasury market, rebuffing a reporter's question about the status of various applications for spot bitcoin ETFs. "The $26 trillion Treasury market, which is really the base of our entire capital markets. It's how we fund our government. It's how our Federal Reserve does monetary policy. It's how we maintain the dollar dominance around the globe.
The U.S. Treasury market is a very consequential, very important market. Crypto securities are not only much smaller, it's not how we fund our government. It's not how we conduct monetary policy. And for many investors, they've been harmed in that market. And they're being harmed because there's too much non-compliance. It's not just non-compliance with securities laws. It's non-compliance with a raft of other laws. The SEC is currently reviewing more than a dozen applications from asset management giants including BlackRock and Fidelity for what would be the country's first spot bitcoin fund. The price of the world's largest cryptocurrency by market capitalization has surged over recent months as analysts speculate that a decision could be getting closer.
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Federal judge approves settlement between CFTC and Binance
A federal judge approved a settlement between crypto exchange Binance and the Commodity Futures Trading Commission, a month after the crypto exchange's former CEO pleaded guilty to charges related to anti-money laundering violations. Under the settlement, former CEO Changpeng Zhao will have to pay $150 million, with a third of that paid within the next 30 days, according to the order signed on Dec. 14 by Judge Manish Shah in the U.S. District Court for the Northern District of Illinois.
Binance will have to pay a $1.35 billion penalty to the CFTC, as well as disgorge $1.35 billion of "ill-gotten transaction fees," according to the order. The agency said Binance, at former CEO Changpeng Zhao's direction, solicited customers in the U.S. and was aware of regulations in the U.S. but "chose to ignore them," according to a statement released on Monday. The consent order also requires Binance and Zhao to guarantee that the exchange will put in place a corporate governance structure that includes a board of directors with independent members, a compliance committee and an audit committee. 's governance and rendering his interest in the U.S. arm of the exchange "purely economic
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