Weekly Crypto News Summary

Key Headlines

Charges Filed Against Ex-FTX Partner for Campaign Finance Violations

Authorities in the United States have formally charged Michelle Bond, associated with former FTX Digital Markets co-CEO Ryan Salame, for breaching campaign finance regulations.

On August 22, an indictment was revealed in the U.S. District Court for the Southern District of New York, detailing allegations against Bond and an unidentified co-conspirator for unlawfully financing her 2022 candidacy for the U.S. House of Representatives. Charges include conspiracy for illegal campaign contributions, accepting excessive contributions, and misrepresentation to the Federal Election Commission alongside a congressional committee.

The unnamed co-conspirator—identified as Bond’s romantic partner and a senior executive at a previously operational cryptocurrency exchange—allegedly facilitated a $400,000 payment to Bond, crafted to obscure their actions.

McDonald’s Instagram Hacked, $700K Earned on Grimace Memecoin

A security breach on the official McDonald’s Instagram account on August 21 led to the theft of over $700,000 in Solana. The hack involved the promotion of a fraudulent token called “GRIMACE” using the fast food giant’s social media platform.

Posts on Instagram described the token as a “McDonald’s experiment on Solana,” reaching a global audience of 5.1 million followers.

Data from blockchain analytics indicates the hacker acquired 75% of the total supply of the Grimace token before redistributing it to around 100 wallets. Following the promotional posts, the token surged from a market cap of a few thousand dollars to approximately $25 million in mere minutes before the hacker liquidated their holdings, leading to a rapid decline in value.

Legal Action Against Binance for Alleged Crypto Laundering

Binance and its former CEO, Changpeng “CZ” Zhao, are facing a class action lawsuit from three crypto investors who assert they were unable to recover stolen assets due to the exchange’s alleged facilitation of money laundering.

Filed on August 16 in the U.S. District Court in Washington, the lawsuit claims that stolen funds were funneled through Binance, effectively obstructing traceability. Plaintiffs contend that the exchange was essential in laundering money, which allegedly violates the Racketeer Influenced and Corrupt Organizations Act.

RFK Jr. Suspends 2024 Presidential Campaign

In a live-streamed address from Phoenix on August 23, presidential candidate Robert F. Kennedy Jr. announced the suspension of his 2024 campaign, clarifying that he is not terminating it outright. RFK Jr. indicated that his name would still appear on ballots in most states but would withdraw from 10 states to prevent acting as a spoiler for leading candidates.

He expressed disbelief in his potential for victory given the political landscape, highlighting challenges posed by censorship and media control.

Court Rejects Kraken’s Motion to Dismiss SEC Lawsuit

A federal court in the United States denied Kraken’s motion to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC) that accuses the exchange of operating without proper registration as a securities platform.

The SEC had charged Kraken in November with operating as an unregistered securities exchange, brokering and clearing agency. The court’s ruling signifies ongoing regulatory scrutiny in the cryptocurrency sector, particularly surrounding the definition of securities under U.S. law.

Market Overview

As the week concludes, Bitcoin (BTC) is valued at $64,714, Ether (ETH) stands at $2,791, while XRP trades at $0.61. The overall market capitalization is approaching $2.27 trillion, according to CoinMarketCap.

• Top Altcoin Gainers:
  • Popcat (POPCAT): 71.30%
  • Artificial Superintelligence Alliance (FET): 44.64%
  • Klaytn (KLAY): 39.01%
• Top Altcoin Losers:
  • Helium (HNT): -3.06%
  • Zcash (ZEC): -1.47%
  • Litecoin (LTC): +0.65%

Notable Quotes

“In the last Bitcoin halving cycle, the bull rally began in Q4. Whales won’t let Q4 be boring with a flat YoY performance.”

“LLMs should have crypto wallets. Let’s help AI agents get work done (on your behalf) and participate in the economy.”

“Technical indicators are improving, and with some traders holding short positions, there’s potential for a short squeeze.”

Upcoming Insights

Bitcoin’s Resistance Point: $62K

Bitcoin’s current market position is critical, with analysts suggesting it must reach and maintain the $62,000 mark to avert a decline back to $49,000. As of now, it is trading at about $60,691.

Concerns in the Crypto Space

SEC Battles Richard Heart Over Securities Lawsuit

The SEC has countered HEX founder Richard Heart’s attempt to dismiss a $1 billion securities lawsuit, underscoring its authority in the case and stating that Heart has directed promotional efforts toward U.S. investors, despite his claims of residing abroad.

Price Recovery for Hacked Cryptocurrencies

According to a recent report, nearly 80% of cryptocurrencies that were hacked do not recover their price. The losses are chronicled with over 77.8% of hacked tokens suffering continuous price declines for up to six months post-incident.

Pressures on Spot Ethereum ETFs

Spot Ether ETFs in the U.S. are experiencing a lengthy outflow period, losing a significant amount in investments, largely driven by withdrawals from funds like Grayscale’s Ethereum Trust, overshadowing new inflows from competing ETFs.

Feature Stories

Can Decentralization Combat Social Media Censorship?

Exploring why decentralized platforms might be key in addressing misinformation and toxic content on social media.

Milestones that Shaped Ethereum

A retrospective on vital events in Ethereum’s journey that positioned it as the second most notable cryptocurrency.

Bitcoin Mining Developments in Asia

A look at significant regulatory measures impacting Bitcoin mining in Malaysia and China’s state initiatives.