CryptoSlate Wrapped Daily: Binance hires ex-Kraken compliance chief; Coinbase faces patent infringement lawsuit CryptoSlate Wrapped Daily: Binance hires ex-Kraken compliance chief; Coinbase faces patent infringement lawsuit
Bitcoin mining firm Compute North files for chapter 11 bankruptcy, CFTC fines bZeroX for $250K while filing a lawsuit against its successor Ooki DAO, and much more in this edition of CryptoSlate Wrapped Daily.
3 min read
Updated: Sep. 24, 2022 at 12:27 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The biggest news in the cryptosphere for Sept. 23 includes Kraken’s former compliance chief’s switch to Binance, the new patent infringement lawsuit Coinbase has to face, and Bitcoin mining firm Compute North’s chapter 11 bankruptcy.
CryptoSlate Top Stories
Binance hires former Kraken compliance chief
Binance hired its rival Kraken‘s chief of compliance and said it is looking to hire more personnel to work at its compliance department.
Steven Christie left Kraken to become Binance’s new senior vice president of compliance. He is leading a 750 people team in Binance, including the cyber investigations team.
Bitcoin mining firm Compute North files for bankruptcy, CEO resigns
Compute North, a Bitcoin (BTC) mining data center, has filed for Chapter 11 Bankruptcy. The company reportedly owes $500 million to nearly 200 creditors while having assets valued between $100 and $500 million.
CFTC levies $250K fine on bZeroX, charges Ooki DAO for regulatory violations
In one day, the Commodity Futures Trading Commission (CFTC) fined a blockchain trading protocol, bZeroX, and filed a federal civil enforcement action against bZeroX successor, Ooki DAO (OOKI).
The CFTC revealed that bZeroX was operating an illegal decentralized trading service from 2019 to 2021. Ooki DAO, on the other hand, faced federal civil enforcement action for allegedly offering illegal leverage and margin trading.
Celsius shareholders want their own legal representation in a bankruptcy case
Shareholders of the bankrupt Celsius Network want the company to dollarize the crypto holdings of its customers and pay them their shares.
The stakeholders argue that the Unsecured Creditors Committee is prioritizing the retail customers to ensure they get maximum value without considering the situation of the equity holders.
IRS secures court approval to probe records of M.Y. Safra Bank, SFOX users over failure to report taxes
The International Revenue Service (IRS) has been legally going after M.Y. Safra Bank users, arguing that they failed to pay their taxes.
On Sept. 22, a U.S. judge granted the IRS a petition which forced M.Y. Safra Bank to submit records of its taxpayers. Upton receiving the petition, the IRS also insisted on receiving the same records from the cryptocurrency prime broker SFOX, saying that the M.Y. Safra Bank offered services to SFOX users as well.
U.K. should lower crypto tax rate to encourage growth – MP Matt Hancock
Former Secretary of State for Digital, Culture, Music and Sport Matt Hancock said the U.K. must adopt a long-term approach towards crypto.
He said:
“HMRC has taken a revenue-maximizing approach…applying it in a sledgehammer way… what we need to do is take a growth-maximizing view where revenues in the future will be far greater.”
Currently, the U.K. law treats crypto trading the same as other assets and imposes a fixed 20% tax rate on all capital gain.
Binance to add opt-in button for 1.2% LUNC burn tax on all trades
Binance CEO Changpeng Zhao stated that the exchange is implementing an opt-in button for the Terra Luna Classic (LUNC) tax burn.
This button will be visible to LUNC holders, and they can switch it on if they want to burn 1.2% of their LUNCs in each transaction.
Research Highlight
Debunking the FUD surrounding Bitcoin transaction fees
CryptoSlate analysts published an exclusive report about the Fear-Uncertainty-Doubt (FUD) on Bitcoin transaction fees. The transaction fees tie the Bitcoin network together, and people who’d like to see Bitcoin fail rely heavily on FUD attacks.
The attackers are not random individuals on Twitter. Instead, we see that the World Economic Forum, national regulators, and central banks attack Bitcoin by claiming “it will consume more power than the entire world” or “it is not a secure network.”
News from around the Cryptoverse
Coinbase sued for infringement of crypto transfer technology
Veritaserum Capital LLC has filed a patent lawsuit against Coinbase for allegedly infringing the patent for a crypto transfer technology awarded to Veritaserum’s founder, Reuters reported Sept. 23.
Veritaserum claimed that several Coinbase services violated the patent and requested $350 million in compensation for its damages.
Crypto Market
Bitcoin (BTC)decreased by 2.71% in the last 24 hours to be traded at $18,675. Ethereum (ETH) also fell by 1.38%, dropping to $1,285.
Biggest Gainers (24h)
- Cronos (CRO): +9.65%
- Chiliz (CHZ): +7.25%
- XinFin (XDC): 7.01%
Biggest Losers (24h)
- Unus Sed Leo (LEO): -16.11%
- Toncoin (TON): -8.96%
- Terra Classic (LUNC): -7.97%%
Mentioned in this article
Bitcoin 
Ooki Protocol 
Cardano 
Ethereum 
UNUS SED LEO 
TON 
Terra Classic 
Cronos 
Chiliz 
XDC Network 
Celsius Network 
Binance 
Kraken 
Coinbase 
Changpeng Zhao Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ooki Protocol
$0.00009
Ooki is a powerful and fully decentralized margin trading, borrowing, and lending platform with a ton of features.
Cardano
$0.86603
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Ethereum
$3,285.47
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
UNUS SED LEO
$9.38573
UNUS SED LEO (LEO) is a cryptocurrency token and operates on the Ethereum platform.
TON
$5.39852
TON is a third-generation proof-of-stake blockchain designed in 2018 by the Durov brothers, the founders of Telegram Messenger.
Terra Classic
$0.00011
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Chiliz
$0.08380
Chiliz (CHZ) is a digital currency for sports and entertainment platforms.
XDC Network
$0.07950
XDC Network (formerly known as XinFin Network) is a hybrid (public / private) blockchain platform that combines the transparency of public blockchains with the speed and security of private networks.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
