Weekly Crypto Recap: Celestia and Binance Updates, Gensler’s BTC Stance
The past week in the world of cryptocurrency has been eventful, with significant developments in the venture capital scene, regulatory landscape, and market trends. From major funding rounds for startups to regulatory actions and market movements, here is a comprehensive recap of the key highlights from the week.
Venture Capital Investments in Crypto Startups
The crypto startup ecosystem continues to attract substantial investments, with over $253 million pouring into various projects. One standout funding round was secured by the Celestia Foundation, a blockchain network that raised a staggering $100 million to support its modular blockchain network. This substantial investment underscores the growing interest in blockchain technology and its potential applications across various industries.
In addition to Celestia, Infinex, a decentralized exchange, managed to secure $65.29 million through a non-fungible token (NFT) sale. This funding will enable Infinex to further develop its platform and enhance the decentralized trading experience for users. These funding rounds highlight the increasing appetite for innovative blockchain projects and decentralized solutions within the crypto space.
Legal Troubles for Binance Founder and Former CEO
Changpeng Zhao, the founder and former CEO of Binance, recently completed a four-month prison sentence related to compliance issues at the cryptocurrency exchange. Zhao admitted that Binance had failed to implement adequate Know Your Customer (KYC) checks during his tenure as CEO, leading to regulatory scrutiny and legal repercussions. This development underscores the importance of regulatory compliance in the crypto industry and the consequences of non-compliance for key industry players.
In a separate legal case, crypto entrepreneur Caroline Ellison received a two-year prison sentence for her involvement in the collapse of cryptocurrency exchange FTX and its affiliated hedge fund, Alameda Research. The collapse of these entities was linked to one of the largest financial scandals in U.S. history, highlighting the risks and legal challenges faced by participants in the crypto market.
SEC Chair’s Stance on Bitcoin Classification
Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), recently clarified the regulatory classification of Bitcoin (BTC) during a TV appearance. Gensler stated that Bitcoin is not considered a security under current regulatory frameworks, categorizing it as a non-security commodity. This clarification provides further clarity on the regulatory status of Bitcoin and its treatment under securities laws.
In related news, TrueCoin and TrustToken reached a settlement with the SEC regarding charges of unregistered offering and investment contract sales between November 2020 and April 2023. This settlement highlights the SEC’s ongoing efforts to enforce securities laws within the crypto industry and hold companies accountable for regulatory violations.
PayPal’s Expanded Crypto Services for Merchants
PayPal announced plans to enable U.S. merchants to purchase, hold, and sell cryptocurrency directly through their PayPal business accounts. This expansion of crypto services to business account holders follows…
**Continued in next message**
