SEC targets Coinbase, Do Kwon arrested, FTX’s $95M in Mysten…

This Week’s Top Stories

Coinbase may face SEC enforcement action for ‘potential securities law violations’

Crypto exchange Coinbase received a Wells notice from the United States Securities and Exchange Commission (SEC) recommending upcoming enforcement actions. According to Coinbase, the “legal threat” could potentially target the staking program, registered digital assets, wallet or Coinbase Prime service. The exchange’s chief legal officer, Paul Grewal, said the warning “comes after Coinbase submitted various proposals to the SEC regarding registration over several months, all of which the SEC ultimately did not respond to.” Coinbase CEO Brian Armstrong renewed his call for crypto users to “vote pro-crypto candidates” after the development.

FTX Debt Agrees to $95M Stock Sale in Mysten Labs

As bankruptcy proceedings for FTX progress, the debtors of the defunct crypto exchange have approved an agreement to sell their $95 million worth of preferred stock in Mysten Labs, the company behind the Sui blockchain. Court approval is pending, as is the potential for another bid on the stock. In a related headline, FTX is seeking to recover $460 million in misappropriated customer funds from venture capital firm Modulo Capital, which received a sizeable investment from Alameda Research last year. The investment was reportedly directed by Sam Bankman-Fried, who faces multiple charges in federal court related to alleged fraud during his tenure as CEO.

Do Kwon faced fraud charges from US prosecutors hours after his arrest

Just hours after his arrest in Montenegro, Terraform Labs CEO Do Kwon was charged with eight separate charges by the United States prosecutor in New York, including commodity fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation. According to reports, Kwon is also facing criminal charges in Montenegro for allegedly forging travel documents. Prosecutors in South Korea issued an arrest warrant for Kwon in September last year, followed by an Interpol red-notice list a few weeks later. The charges brought against him relate to his alleged role in the collapse of the $40 billion Terra Luna Classic token and TerraClassicUSD stablecoin in May 2022.

Mastercard to settle transactions for stablecoin wallets in APAC

Mastercard launches stablecoin digital wallet integration to allow retail customers in the Asia-Pacific region to spend stablecoins pegged to US dollars wherever Mastercard is accepted. The international payments company plans to convert USDC stablecoin to fiat and establish the network in partnership with Australian stablecoin platform Stables. The service will initially be available to users based in Australia before expanding to Europe, the United States, the United Kingdom and most of Asia-Pacific.

Celsius custody account holders can receive 72.5% of crypto, bankruptcy judge says

The judge overseeing the bankruptcy case for crypto lender Celsius Network has approved a settlement plan that will allow custodial account holders to recover 72.5% of their crypto assets. Owners have 30 days to review the terms. If they choose, the assets will be returned in two distributions – 36.25% up front and 36.25% after the resolution of the plan (or at the end of the year). The inactive platform announced in February that NovaWulf Digital Management will be the sponsor of the restructuring plan, which claims that more than 85% of Celsius customers will recover approximately 70% of their crypto.

Winners and Losers

At the end of the week, Bitcoin (BTC) that’s it $27,157Ether (ETH) at $1,734 and XRP at $0.41. The total market capitalization is at $1.15 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, the top three altcoins this week are Mask Network (MASK) at 24.22%, Flare (FLR) at 22.23% and XRP (XRP) at 11.89%.

The top three altcoins of the week were Arbitrum (ARB) at -89.76%, Immovable (IMX) at -25.82% and Toncoin (TON) at -15.12%.

For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

Most Memorable Quotes

“What happened this month just shows that Bitcoiners and Bitcoin maxis are right all along.”

Paul ArduinoTether’s chief technology officer

“It’s not crypto versus Goldman Sachs or crypto versus institutions. It’s a race to see who can do crypto better.

Oliver LynchCEO of Bittrex

“Stablecoins will play an important role in the new financial system and will be at the core of reconciling the world of traditional and decentralized finance.”

daniel lichief operating officer Stables

“What central bank digital currency is all about is monitoring the American people and controlling the behavior of the American people.”

Ron DeSantisgovernor of the US state of Florida

“Bitcoin was designed as a reaction to Lehman Brothers in the crisis of 2008. It was designed because you can’t trust a central authority.

Pascal GauthierCEO of Ledger

“We are at serious risk of seeing entire strategic technology arenas disappear from US leadership.”

Jeremy AllaireCEO of Circle

Sunday Predictions

Bitcoin is likely to outperform all crypto assets after the banking crisis, analysts explain

The banking crisis could be the spark that will start the next crypto bull run, where Bitcoin can beat all other cryptos, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence.

According to McGlone, the United States Federal Reserve refused to ease monetary policy even as the banking crisis pushed the US economy into recession. This macro environment will eventually favor Bitcoin, which will surpass all other cryptocurrencies.

“The more Bitcoin can sustain above $25,000, then the more the S&P 500 has the potential to pressure below 4,000, you will have an indication that Bitcoin is going to take off,” McGlone pointed out. “I think that Bitcoin will surpass all cryptos, including Ethereum,” he said.

FUD from Sunday

US Senator Ted Cruz is trying again with a new bill to block CBDC

US Senator Ted Cruz has introduced a bill to block the Federal Reserve from launching a “direct-to-consumer” central bank digital currency because it “could be used as a financial surveillance tool by the federal government.” According to Cruz, the federal government “does not have the authority to unilaterally create” a digital dollar. The same bill that Cruz introduced with other senators on March 30, 2022, seeks to prohibit the Fed from issuing CBDC directly to individuals. Nearly 12 months later, the bill still hasn’t moved past the introduction phase.

Hindenburg Research reports Block short positions, fraudulent facilitation claims and inflated metrics

A report after a two-year investigation from Hindenburg Research claims the digital payment company Block has “systematically taken advantage” of its users, alleving really inflated its user metrics and facilitated fraud. According to the report, Block’s practice allows users to set up fraudulent accounts, exposing many criminals who use the platform to steal funds. Block labeled the report “inaccurate and misleading,” saying it plans to take legal action against the research firm.

European banks entered another uncertain weekend as default risks rose

European banks faced another weekend of renewed fears about the future, as shares of Deutsche Bank fell on the New York Stock Exchange on March 24, after a day of decline in the Frankfurt market. German bank shares were hit by a rise in the cost of insuring against potential default risks, with the five-year credit default swap rising for the week and closing at 222 basis points on Friday. Fears about European banks are not limited to Deutsche Bank. European shares of Commerzbank, Société Générale, and UBS also fell in European trade.

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Creating ‘organic’ generative art from robotic algorithms: Emily Xie, NFT Creator

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US enforcement agencies are heating up on crypto-related crimes

New high-profile indictments by the Department of Justice and collaborating agencies indicate that the federal government is intent on aggressively going after crypto criminals in the United States and abroad.