Celsius Files Lawsuit Against Tether for 39,542 Bitcoin

Celsius Files Lawsuit Against Tether for 39,542 Bitcoin

Celsius has filed a lawsuit against Tether, seeking to recover 39,542.42 Bitcoin ($2.4 billion at current price), alleging that Tether improperly sold it during the market's downturn. Tether denies the accusations, labeling them as "baseless" and "bullying," and claims the lawsuit is just a shakedown benefiting no one but lawyers and consultants.

Celsius has also targeted other companies like Badger DAO, Compound, and Bancor in similar lawsuits aiming to reclaim funds for creditors. The case against Tether is part of a broader effort by Celsius to retrieve withdrawals and preferential payments made before its bankruptcy. At the time when Celsius went bankrupt the the 39 thousand BTC was worth around $800 million.

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Coinbase & Others Oppose CFTC Prediction Market Rule

The US Commodity Futures Trading Commission's proposed rule change, which could ban political prediction markets (big part of Polymarket's business), has met with strong opposition from key industry players, including Coinbase, Gemini, Crypto.com, and Robinhood. The proposed rule seeks to prohibit event contracts that involve wagering on political contests.

Some lawmakers argue this could exacerbate issues like dark money in politics and foreign interference in elections. Opponents of the rule, like Gemini's Cameron Winklevoss, urge the CFTC to reconsider its stance and collaborate with industry stakeholders instead. Critics argue that the CFTC is overstepping its authority and the agency should not regulate election event contracts without court tenacity.

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Critics Worry About BitGo & Justin Sun WBTC Partnership

BitGo announced a new joint venture with Hong Kong-based BiT Global for its wrapped Bitcoin (WBTC) product, partnering with Justin Sun and the Tron ecosystem. While some, like Maker DAO, express concerns over Sun's involvement, BitGo CEO Mike Belshe reassures that the company's commitment to security remains unchanged, emphasizing the legal safeguards in place.

Sun stated his role is purely strategic and that he doesn't control the WBTC reserves, countering fears of mismanagement. Despite community skepticism, Belshe argues that the partnership maintains top-notch security standards and represents a strategic expansion in the WBTC market.

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Hong Kong to Improve Crypto Regulation Within 18 Months

Hong Kong plans to improve its digital asset regulation within the next 18 months as part of its strategy to become a global fintech hub. At the Foresight 2024 summit, David Chiu highlighted the need for robust legislative supervision, particularly in stablecoins, which are expected to be introduced by the year's end.

The Hong Kong Monetary Authority has launched a stablecoin issuer sandbox with notable participants, aiming to foster innovation while maintaining regulatory oversight. This move is part of Hong Kong's broader pro-crypto financial approach, including launching Asia's first Bitcoin futures inverse product by CSOP Asset Management.

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Data of the Day

A recent report from Uniswap, Circle, and the Copenhagen Business School aimed to find what drives crypto asset prices. The study uses a structural VAR model to analyze the impact of various shocks on Bitcoin returns, identifying crypto adoption and risk premium shocks as the primary drivers of Bitcoin's daily price fluctuations.

While traditional monetary policy and risk premium shocks also affect cryptocurrency prices, their impact is more significant at lower frequencies. The paper highlights the role of stablecoins as safe havens during market stress and suggests that investors consider these crypto-specific factors for diversification and risk management.

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More Breaking News

• Pump.fun is removing token deployment costs and paying creators 0.5 SOL when their tokens succeed, transferring the creation fee to the first buyer.
• OKX CEO Star Xu announced that accounts interacting with sanctioned entities like Tornado Cash and Garantex will be terminated.
• Ripple is testing its stablecoin Ripple USD (RLUSD) on the XRP Ledger and Ethereum, ahead of its planned 2024 launch.
• The SEC delayed its decision on Hashdex's ETF that would directly own spot Bitcoin and Ethereum until September 30, 2024.
• Solana developers and teams preemptively secured their network against a critical vulnerability before making it public.
• The IRS updated its crypto tax form 1099-DA to remove the request for digital wallet addresses, with partial implementation planned for 2025.

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