Scenius Sync (Issue #75)
Altman Ousted from Open AI and Joins Microsoft, Binance in Talks to Pay Over $4B to End DOJ Case, BlackRock & Fidelity File For Spot ETH ETFs, & Strike Partners with Checkout.com
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 🗞
OpenAI Ousts Sam Altman From CEO and Board Roles; Worldcoin Drops 12%
Artificial intelligence company OpenAI ousted Sam Altman as CEO and from the board, the board of directors announced in a blog post Friday.
"Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities," the blog post said.
Thoughts from COIN CEO Brian Armstrong here.
And more developments here: Microsoft hires Sam Altman, Greg Brockman after departure from OpenAI
Binance in Talks to Pay More Than $4B to End U.S. Criminal Case; CZ Could Still Face Charges
Binance Holding Ltd. would be asked to pay $4 billion to settle U.S. Department of Justice accusations of multiple criminal violations, according to a report from Bloomberg News on negotiations between the DOJ and the company, which are also leaving open the possibility that its founder Changpeng "CZ" Zhao would also face U.S. criminal charges.
In related news: Bitcoin and BNB Token Stage Relief Rallies on Binance Settlement News
FTX creditor claims increase to as high as 65 cents on the dollar
Some larger FTX creditors are being offered as much as $0.60 to $0.65 on the dollar, marking an increase of as much as 30% when compared to about a month ago. In late October, some over-the-counter (OTC) trades of FTX creditor claims closed at over $0.50 on the dollar.
Javier Milei Wins Argentine Presidency; Bitcoin Gains Nearly 3%
The next president of Argentina will be Javier Milei as his opponent Sergio Massa conceded on Sunday evening, saying "Argentines chose another path." The self-described anarcho-capitalist has been supportive of bitcoin, calling it "the return of money to its original creator, the private sector."
Coverage from Bloomberg here.
The U.S. SEC on Monday sued crypto exchange Kraken over alleged securities laws violations. "Without registering with the SEC in any capacity, Kraken has simultaneously acted as a broker, dealer, exchange and clearing agency with respect to these crypto asset securities. In doing so, Kraken has created risk for investors and taken in billions of dollars in fees and trading revenue from investors without adhering to or even recognizing the requirements of the U.S. securities laws that are designed to protect investors," the SEC wrote in a court filing in the U.S. District Court for the Northern District of California. The suit further alleges that Kraken's business practices, internal controls and record keeping presented investors additional risks "that would also be prohibited for any properly registered securities intermediary."
In response, Kraken says products remain unaffected amid SEC’s new ‘disastrous’ lawsuit and argued that the SEC is “demanding compliance with a regime that doesn’t exist” in response to the regulator’s Monday lawsuit against the crypto exchange.
Innovation & Adoption 💡📈
BlackRock files for spot Ethereum ETF with SEC
BlackRock, the world's largest asset manager, has officially filed for a spot Ethereum exchange-traded fund with the United States Securities and Exchange Commission. The ETF, dubbed iShares Ethereum Trust, seeks to "reflect generally the performance of the price of ether," reads Form S-1 filed with the SEC by iShares late Wednesday. The iShares brand is associated with BlackRock's ETF products. The Form S-1 comes a week after BlackRock registered iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. Then hours after Nasdaq filed for the proposed ETF, confirming BlackRock is working on a spot ether ETF.
Fidelity files for spot Ethereum ETF, says approval would be 'major win' for US investors
Asset management giant Fidelity has filed for a spot ether ETF, in the footsteps of its spot bitcoin ETF application. "To this point, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space," the filing states, claiming that investors are facing significant risk without such products as they seek alternative, riskier ways to get exposure.
Cs
The crypto app Strike on Thursday announced a major expansion of its services, powered by a new partnership with the payment processing platform Checkout.com, that will allow users in more than 65 countries to buy Bitcoin directly with their debit card.
Republic selects Avalanche blockchain for its investment security token
Republic has selected Avalanche as its blockchain of choice for the launch of Republic Note, a digital asset that allows investors to earn returns from an investment portfolio. The Republic Note digital investment vehicle — a security token to be listed in a few months — aims to generate profits from a portfolio invested in more than 750 "private assets," according to a statement. The digital asset has attracted more than $30 million in "pre-sale participation" from thousands of individual investors and institutions, the statement also said.
Standard Chartered, Philippines Bank Issue $187M Blockchain Bond
Standard Chartered Bank and UnionBank of the Philippines said Monday they have completed a proof-of-concept issuance of a 9 billion Philippines peso (US$187 million) tokenized retail bond on a blockchain-backed platform.