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Scenius Sync (Issue #74)
BlackRock Registers Ethereum Trust, Crypto Protests Treasury's Proposed Tax Reporting Regs, Aave Resumes Normal Operations, & The Block Gets Bought
Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.
Welcome to The Scenius Sync.
Our mission with this concise publication is twofold:
Share the essential stories driving the crypto industry and markets.
Highlight innovative applications and mainstream adoption of crypto and blockchain technology.
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Essential News 🗞
The crypto industry is staunchly fighting back against proposed regulation that would expand who would have to report certain cryptocurrency transactions with some calling it an impediment on decentralized finance citing constitutional concerns. The Treasury, alongside the IRS, released a set of proposed regulations in August that would require crypto brokers to be treated similarly to brokers for more traditional investments like stocks and bonds. Since then, over 124,000 letters have flooded in — with 2,000 being filed in just the past two days. Some argue that the proposed rules stretch the definition of a broker too far.
FTX has sued ByBit, hoping to claw back hundreds of millions of dollars in assets withdrawn by the firm from FTX on the eve of its collapse, alleging that ByBit used its VIP status to recover its funds before everyday customers. The lawsuit also accuses ByBit of secretly controlling BitDAO, now known as Mantle, and attempting to devalue the tokens held by the FTX debtors’ estate.
Cryptocurrency exchange Poloniex has had its hot wallets drained by hackers with an estimated loss of around $114 million, several sets of on-chain data show. A suspected hack was flagged by blockchain security firms PeckShield and Cyvers. Poloniex announced 12 minutes later that the exchange's wallet had been disabled for maintenance. The hack was later confirmed by Poloniex owner Justin Sun in a tweet, who also stated the exchange will fully reimburse the affected funds.
In the wake of a security vulnerability that surfaced earlier this month, Aave version 2 and 3 markets have been unpaused and have resumed standard functions, marking recovery for the decentralized lending protocol. No funds have been impacted. The vulnerability that came to light on Nov. 4 impacted various lending markets across Aave V2 on Ethereum and Aave V3 on blockchains including Optimism, Arbitrum, Avalanche, and Polygon. The issue prompted immediate action from the Aave DAO. In response to the issue, the DAO temporarily disabled the stable rate borrowing feature, a move to prevent any potential exploitation.
Bankrupt crypto lender Genesis has agreed to settle $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million, court documents show. The hedge fund's collapse in June 2022 marked the first storm in a long crypto winter, and its claims against Genesis refer to transfers made prior to the lender's own bankruptcy in January. The deal, set out in a filing from Nov. 9, follows "extensive negotiations," between the parties, and Genesis is seeking a New York bankruptcy court's go-ahead to settle the claims.
Innovation & Adoption 💡📈
Wall Street titan BlackRock has registered an iShares Ethereum Trust in Delaware. The registration doesn't mean BlackRock has filed an application with the SEC to offer an Ethereum ETF, but analysts today noted that the $8.5 trillion asset manager submitted a similar registration a week before its application for a Bitcoin ETF.
In related news, Bogus BlackRock XRP Filing Spoofs ETF Watchers, Crypto Traders
Crypto news and data provider The Block said Singapore-based Foresight Ventures had completed an acquisition of the majority of its shares.
The purchase was completed at a $70 million valuation, and the company plans to “build out new exciting products” and expand into Asia and the Middle East, CEO Larry Cermak said in an X post on Monday.
UBS Group AG joined rivals such as HSBC Holdings Plc in allowing clients in Hong Kong to trade some crypto-linked exchange-traded funds amid a push by the city to foster a digital-asset hub.
Uniswap Labs’ front-end fees have topped $1 million within a month. The firm introduced a 0.15% fee in mid-October that applies to web interface and wallet app transactions.
Bitcoin mining revenue has hit a new yearly high, as the price of the cryptocurrency surged this week amid widespread excitement surrounding the possible approval of a U.S. spot Bitcoin ETF by the SEC. Per data from Blockchain.com, BTC mining revenue hit $42,386,514.038 on November 9, topping its previous yearly high of $41,744,197.067 set on May 8, 2023. For context: That's even higher than mining revenue was during the Ordinals craze in May.