Headline
▌FTX Creditors to Receive 142%-118% Compensation
Cryptocurrency exchange FTX has amassed billions of dollars in funds beyond what it needs for customers it lost in its November 2022 collapse, enabling them to receive full compensation after the company goes bankrupt. The extra cash will be used to pay interest to the company's more than 2 million customers, a rare outcome as creditors typically receive very little money in U.S. bankruptcies. According to a company statement, once the sale of all assets is completed, the company will have as much as $16.3 billion in cash to distribute. It owes about $11 billion to customers and other non-government creditors.
According to court documents filed late Tuesday in the federal court in Wilmington, Delaware, which is handling the FTX case, while all debts will be paid in full plus interest, shareholders will not be left with anything.
Depending on the type of claim in the case, some creditors could receive up to 142% of what they are owed. However, the vast majority of customers are likely to receive 118% of what they earned on the FTX platform on the day the company filed for Chapter 11 bankruptcy. The company, which is currently being run by a restructuring adviser, has also proposed setting up a fund to pay some creditors (including those who lent FTX cryptocurrencies) that would otherwise go to government regulators. Payments may still take several months as FTX moves into the final stages of its bankruptcy case. Vitalik Buterin proposes an alternative to EIP-3074 Wallet Connect developer Pedro Gomes posted on the X platform that Vitalik Buterin proposed an alternative to EIP-3074, moving from opcodes to a transaction type approach that benefits from using 4337 infra PLUS to reduce the risk of core developers. Wallet Connect also includes the 7377 txn type for smoother migration of EOAs to smart accounts.
It was previously reported that Ethereum developers intend to improve the usability of encrypted wallets through EIP-3074.
Market
As of press time, according to Coingecko data:
BTC's latest transaction price is $62,362.69, with a daily increase or decrease of -1.3%;
ETH's latest transaction price is $3,011.74, with a daily increase or decrease of -1.7%;
BNB's latest transaction price is $577.42, with a daily increase or decrease of -1.8%；
SOL's latest transaction price is 148.11 US dollars, with a daily increase or decrease of -3.1%；
DOGE's latest transaction price is 0.1501 US dollars, with a daily increase or decrease of -4.1%；
XPR's latest transaction price is 0.5245 US dollars, with a daily increase or decrease of -2.9%。
Policy
▌U.S. SEC Chairman: Crypto Investors Do Not Get Proper Disclosure
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), discussed topics such as cryptocurrencies in an interview with CNBC on Tuesday. Gensler said that we regulate $110 trillion in capital markets. About half of that is the stock market. Half is the bond market and other markets, and cryptocurrencies are only a small part of our entire market. But this is a huge part of the scams, frauds and problems in our market because much of this field does not meet the protection of our securities laws.
Gensler also emphasized that cryptocurrency investors do not get the proper disclosure they deserve, and our compensation is also based on the principle of performance neutrality. As long as investors get full, fair, complete and true information, they can make a decision. They don't get this in cryptocurrencies. Gensler reiterated that if they are a crypto security, then it is required.
▌The U.S. SEC refutes Terraform's claim that the fraud occurred outside the United States
Lawyers for the U.S. Securities and Exchange Commission have responded to a memorandum from Terraform Labs that proposes remedies after the civil case judgment. In a filing with the U.S. District Court for the Southern District of New York on May 6, the SEC rejected Terraform's argument to reduce illegal gains in the civil case judgment, for which the jury found the company responsible. According to SEC lawyers, Terraform and co-founder Do Kwon have never made such an argument in court that the commission is enforcing the extraterritorial application of federal law to the issuance and sale of tokens outside the United States. The SEC's documents say the defendants' arguments lack basis because they rely on misapplication of the law and misrepresentation of relevant facts.
As previously reported, Terraform Labs said the SEC's request for a $5.3 billion fraud fine was unreasonable, and Terraform said most of the stablecoins were sold outside the United States.
▌U.S. Congressman: New regulations will be introduced to combat mixers as money laundering tools
U.S. Congressman Sean Casten said that new legislation is coming soon, and the bill will combat mixers as money laundering tools. Casten also emphasized that USDT is the favorite token of illegal finance.
▌U.S. SEC cryptocurrency regulation sparks partisan differences, DEBT Box case and mixer regulation become the focus
The U.S. Democratic and Republican parties disagreed on the Securities and Exchange Commission (SEC)'s position on cryptocurrency regulation at a congressional hearing on Tuesday. Democratic Representative Maxine Waters said that the party will always pursue compliance, investor protection and market integrity, while SEC Chairman Gary Gensler insisted that most cryptocurrencies should be considered securities. In addition, the SEC was questioned in its handling of the case of cryptocurrency startup DEBT Box, with one federal judge criticizing the SEC's behavior as malicious and two lawyers from the agency resigning for improper handling of the case. On the other hand, Republican lawmakers plan to repeal an accounting guideline of the SEC, sparking another round of controversy. The hearing also touched on the regulation of mixers, with one Democratic congressman proposing a bill aimed at cracking down on cryptocurrency mixing services suspected of money laundering. These disputes highlight the complexity of cryptocurrency regulation and the divisions that exist between the government, industry, and regulators. Coinbase Legal Head Questions SEC Chairman's Statement That Most Cryptocurrencies Are Securities Coinbase Chief Legal Officer Paul Grewal called on U.S. SEC Chairman Gary Gensler to stop misleading the market on the legal status of cryptocurrencies in a social media post on May 7. Grewal made the statement in response to Gensler's recent interview claiming that many digital assets fall into the category of securities under current laws. However, Grewal countered that SEC Chairman Gensler's statement was wrong because the regulator's lawyers had previously acknowledged that cryptocurrencies do not fall within the definition of securities.
Blockchain Applications
▌KfW Bank to Issue Blockchain-Based Digital Bond
KfW Bank is preparing to issue the first blockchain-based digital bond in the form of crypto-securities under the German Electronic Securities Act (eWpG). The blockchain-based transaction will be conducted by a consortium of bookrunners consisting of DZ Bank, Deutsche Bank, LBBW and Bankhaus Metzler, with Union Investments listed as the lead investor. Other investors will join in the coming weeks, and the transaction is scheduled to be completed in summer 2024. KfW Bank has issued its first digital bond in the form of centrally registered securities.
▌Silent Protocol Introduces "Ghost Layer" Solution for Ethereum Using ZK, 0VM
Silent Protocol has launched the "Ghost Layer", described as "the world's first Layer 1.5 for Ethereum", according to an official blog post. Founder Novachrono wrote in the post that it implements a "modular secure value transfer layer, creating the first fully compliant, composable and privacy-preserving ecosystem". The team said: "Using ZK-based systems and 0VM technology, private asset storage and cross-chain value flow are realized. Silent Protocol also launched EZEE in 2023, solving the challenge of state denial. Ghost Layer marks Silent Protocol's commitment to building an Ethereum-compatible and composable framework that enables developers to create privacy-preserving applications."
▌NFT Market Etherity Plans to Transform to Ethereum L2
The Ethernity team said it is using Optimism to transform from an Ethereum-based NFT market to an Ethereum Layer 2 solution designed for entertainment brands. Etherity's enhanced platform integrates an AI-driven DRM protocol to ensure strong IP protection, thereby improving security and scalability. This strategic upgrade aims to redefine blockchain entertainment, aiming to attract major franchises from global entertainment brands and establish new industry standards.
Cryptocurrency
▌Former Digitex Futures Exchange CEO pleads guilty to violating the Bank Secrecy Act
Digitex Futures Exchange founder and former CEO Adam Todd pleaded guilty in federal court for failing to establish an anti-money laundering program at the company. In a statement on May 7, the U.S. Attorney's Office for the Southern District of Florida said Todd admitted to "intentionally causing" Digitex to violate the Bank Secrecy Act. Authorities indicted the former CEO in February. According to the indictment, Todd operated an unregistered futures platform for U.S. customers between 2018 and 2022 and failed to implement and maintain AML and Know Your Customer (KYC) programs.
▌Grayscale Withdraws 19b-4 Application for Ethereum Futures ETF
Grayscale has taken the surprising step of withdrawing its 19b-4 application for its Ethereum (ETH) futures exchange-traded fund (ETF), just three weeks after the securities regulator was forced to make a decision. The crypto asset manager filed a notice of withdrawal with the U.S. Securities and Exchange Commission on May 7.
▌Pro-Crypto U.S. Presidential Candidate Kennedy to Appear at Consensus 2024
Robert F. Kennedy Jr., an independent U.S. presidential candidate who touted his pro-crypto stance during his campaign, will speak at the Consensus 2024 cryptocurrency conference in Austin, Texas later this month.
▌BlackRock, Ondo, Superstate become the most influential companies in the RWA field in the first quarter
BlackRock, Ondo, Superstate become the most influential companies in the RWA field in the first quarter. The RWA market achieved rapid growth in the first quarter. Driven by huge institutional interest and innovative product launches, tokenized treasuries including BlackRock's US Dollar Institutional Digital Liquidity Fund, Superstate's Short-Term U.S. Government Securities Fund and Ondo's USDY increased by 41% to nearly $1.3 billion.
▌Bloomberg ETF Analyst: Inflows into Grayscale Spot Bitcoin ETF May Be the Result of Short-Term Trading
Bloomberg ETF analysts have some theories about the two consecutive days of inflows into Grayscale's spot Bitcoin exchange-traded fund. Grayscale's spot Bitcoin ETF ended 78 days of outflows after recording net inflows for two consecutive days. Bloomberg ETF analyst James Seyffart said he wasn't entirely sure what might have caused the volatility, but there could be several different explanations. "It could be a short-term tactical trade or some kind of hedging trade, where fees are far less important over shorter time frames," he said.
▌Robinhood's first-quarter revenue is expected to hit a nearly three-year high
Trading app Robinhood is expected to record its highest quarterly revenue in nearly three years, benefiting from a steady rebound in stock and cryptocurrency trading. Expectations of global interest rate cuts pushed U.S. stocks and Bitcoin to record highs earlier this year, attracting traders back to the market and helping the retail brokerage company earn more trading revenue. Robinhood was at the forefront of the "monster stock" frenzy in 2021 and is now recovering from a slump after the trading boom caused by the epidemic. JPMorgan analysts said that Robinhood's core business saw a sharp rebound in stock, options and cryptocurrency trading volumes in the first quarter, with total trading volumes up nearly 20% year-on-year. Driven by strong retail trading activity, Robinhood's stock price soared 58% in the first three months of this year, the largest single-quarter gain since its listing.
Important Economic Dynamics
▌The probability of the Federal Reserve keeping interest rates unchanged in June is 91.2%
According to CME's "Fed Watch", the probability of the Federal Reserve keeping interest rates unchanged in June is 91.2%, and the probability of a 25 basis point rate cut is 8.8%. The probability of the Federal Reserve keeping interest rates unchanged by August is 69.5%, the probability of a cumulative 25 basis point rate cut is 28.4%, and the probability of a cumulative 50 basis point rate cut is 2.1%.
▌Morgan Stanley postpones its expectations for the first Fed rate cut to September
Citing the "lack of progress" in inflation, Morgan Stanley economists postponed their expectations for the first Fed rate cut from July to September. They still expect three rate cuts of 25 basis points this year. Economists including Ellen Zentner, Sam Coffin and Diego Anzoategui said in the report that the lack of progress since the beginning of the year means that it will take longer for Fed policymakers to be confident that inflation is falling back toward the 2% target. They expect the three-month and six-month core PCE to be "close to or below" 2% by the end of the year, in which case it would be "too late" to wait until after September to cut interest rates.
Golden Encyclopedia
▌What is Liquidity Staking?
Liquidity staking allows stakers to maintain liquidity of staked tokens by using alternative tokens, which they can use to earn additional returns through DeFi protocols. Liquidity staking enables cryptocurrency holders to participate in staking without giving up control of their holdings. This changes the way users stake. Projects such as Lido have introduced liquidity pledge, providing tokenization of pledged assets in the form of tokens and derivatives.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
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