The Scenius Sync (Issue #29)

China To Launch National NFT Market Place, FTX & Gemini Earn Customers File Class Actions, & Mango Markets Attacker Arrested

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:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

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Essential News 🗞

1. FTX Customers File Class-action Lawsuit to get Priority Reparations

   • A class lawsuit initiated by four individuals demands priority access to frozen funds of the company for its customers, not investors. The plaintiffs emphasize that the FTX User Agreement did not permit the platform to use customer funds for its own purposes, including borrowing or using it for operating expenses. Any removal of customer funds from accounts was an “impermissible co-mingling, misappropriation, misuse, or conversion of customer property,” according to the complaint.

2. Investors Sue Gemini, Winklevoss Twins Over High-Yield Earn Products meanwhile Cameron Winklevoss Accuses DCG’s CEO of 'Bad Faith' Stalling in $900M Locked Funds Dispute

   • Gemini Trust Co. and its founders Tyler and Cameron Winklevoss are facing a class-action lawsuit over claims the crypto exchange sold interest-bearing accounts without registering them as securities.

   • Meanwhile, Cameron Winklevoss blasted DCG CEO Barry Silbert in an open letter posted to Twitter, alleging crypto broker Genesis Global Capital and its parent company, DCG, owe Gemini’s clients $900 million. The letter alleges Gemini has awaited word on a repayment agreement for six weeks to no avail. Silbert responded, tweeting that DCG delivered to Genesis and Gemini’s advisers a proposal on Dec. 29, 2022, and has not had any response.

3. Bankrupt Celsius Seeks to Extend Claims Deadline for Burned Users

   • Bankrupt crypto lender Celsius will file a petition requesting an extension of the deadline for users to submit their claims in the ongoing bankruptcy proceedings by another month.

4. Mango Markets Attacker Avraham Eisenberg Arrested, Charged With 'Market-Manipulation Offenses'

   • The Department of Justice announced on Tuesday the arrest of Avraham Eisenberg, charging him with "market-manipulation offenses" related to his attack on the Mango Markets crypto exchange.

5. Italian Lawmakers Approve 26% Capital Gains Tax on Crypto

   • Italy's Parliament has approved a 26% capital gains tax on crypto. The tax, in the works since earlier this year, will be levied on profits in excess of 2,000 euros. Included in the measure is an incentive to declare such assets as of Jan. 1 whereby taxpayers would only pay a 14% levy.

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Innovation & Adoption 💡📈

1. China to Launch First National ‘Digital Asset’ Marketplace

   • China is launching its first state-backed NFT marketplace, the latest sign of embrace for a technology that has occupied a legal gray area within the country’s notoriously strict crypto regulations. A ceremony celebrating the launch of the marketplace will be held in Beijing on Sunday. The platform will be run by three state-owned and private entities, including China Technology Exchange and Art Exhibitions China, both of which are government-backed, and Huban Digital, a private company, according to a report by Chinese state media outlet China Daily.

2. Bitcoin Miner Argo Blockchain Sells Texas Facility to Galaxy Digital for $65M

   • In addition to the $65 million sale to Galaxy, Argo is also grabbing a $35 million loan backed by more than 23,000 mining machines.

3. Japan Plans to Allow Local Listing of 'Foreign' Stablecoins Such as USDT and USDC

   • Japan's Financial Services Agency is seeking feedback on new regulations that would allow stablecoins issued outside the country to be listed on local exchanges, Japanese newspaper Nikkei reported on Monday.

4. Hong Kong Brokers, Fund Managers Get Ready for Virtual-Asset Trading as SFC Widens Access to Retail Investors

   • Hong Kong’s financial services firms are wasting no time in preparing the groundwork to enable their retail clients to trade virtual assets in the coming months, following a key amendment to a local legislation, according to industry players.

5. BlackRock Gives Bankrupt Bitcoin Miner Core Scientific New $17M Loan

   • BlackRock, which is Core Scientific's largest shareholder according to FactSet data, already held $37.9 million in secured convertible notes as of Wednesday. The latest $17 million is part of the new $75 million convertibles notes, which are part of Core's prearranged bankruptcy process, the filing says.