Home » CBDC Report Published; Crypto and NFT Initiatives Launch; OFAC Redesignates Tornado Cash; SEC and CFTC Target Crypto Fraud; FTX Files for Bankruptcy | BakerHostetler

CBDC Report Published; Crypto and NFT Initiatives Launch; OFAC Redesignates Tornado Cash; SEC and CFTC Target Crypto Fraud; FTX Files for Bankruptcy | BakerHostetler

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CBDC Report Published, Blockchain Settlement And Payments Initiative Launched

To Robert A. Musiara Jr.

This week, the US Central Bank’s New York branch released a report on the results of Phase I of Project Cedar. This is a “multi-stage research effort to develop a technical framework for a theoretical wholesale central bank digital currency (wCBDC)”. Currently, it takes him two days for most foreign exchange (FX) spot trades to settle, according to a press release. This exposes payment senders and recipients to “settlement, counterparty, and credit risks. These risks, among other things, can impede the ability of financial institutions to make payments. In Project Cedar Phase I, “the experiment will simulate foreign exchange (FX) spot trading, introduce a central bank digital currency prototype, and use blockchain technology to enable cross-border We tested whether it could improve the speed, cost, and access of wholesale payments across the world.” Experiments in this test environment reportedly revealed three key findings:

  • Faster Payments: In our test environment, transactions on blockchain-enabled systems settled in less than 15 seconds on average.
  • Atomic settlement: Atomic payments are now possible with simulated ledger networks. This means that both sides of the simulated transaction are settled at the same time or not at all, thus reducing FX risk.
  • Safer and more accessible transactions: The design of the distributed ledger system enabled payments on a 24/7 basis, supporting goals related to interoperability between financial institutions, including central and commercial banks.

Separately, a major global bank issued a press release this week announcing “the world’s first digital bond to be publicly traded and settled on both blockchain-based and traditional exchanges.” According to the press release, “[t]The CHF 375 million bond will be digital only and will be issued on the SIX Digital Exchange (SDX) blockchain-based platform and will be dual listed and traded on SDX and the SIX Swiss Exchange (SIX). “

Last but not least, a major South African grocery chain has announced plans to allow customers to pay for groceries in Bitcoin at 39 South African stores using a Bitcoin Lightning-enabled app. It is reported. According to the report, the customer scans her QR code from the app and accepts the exchange rate on her smartphone at the time of transaction.

For more information, please refer to the following link.

NFT World Cup Initiative Launched, Market Players Launch NFT Loyalty Solution

To Veronica Reynolds

According to a recent press release, a major US financial services company has partnered with a major cryptocurrency exchange to launch an NFT auction for fans of the 2022 FIFA World Cup Qatar. Iconic goals from 5 legendary footballers. The experience will become immersive later this month, allowing fans to create “digital art inspired by their signature moves” and mint that art into their own NFTs.

This week, NFT marketplace OpenSea reportedly announced a new on-chain tool that makes it easier to enforce royalties. Described in an OpenSea blog post as a “simple code snippet,” the tool allows NFT creators to enforce on-chain fees on an opt-in basis, and to marketplaces where NFTs do not support creator fees. It’s intended to allow you to block being listed. This tool can only be used with new NFT collections that do not yet exist. This decision led some users to say that they had no plans and [there are] no clear answer [regarding] Existing collections and artist royalties. “

Last week, Solana-based NFT marketplace Exchange.Art announced its “Loyalty Protection Standards.” This reportedly “enforces creator royalties on secondary sales of NFTs originally created on the platform.” According to the report, the new standard will allow NFT creators to choose a secondary NFT platform that features her NFT, and is designed to prevent “forced listing of the creator’s work” on marketplaces that don’t use NFTs. opt-in program. Don’t enforce NFT usage fees.

In a related development, the Ethereum Layer 2 NFT platform recently announced the release of “community-managed whitelists and blacklists for smart contracts respecting royalty fees.” This feature will allow the NFT creator to use the list to control the smart contract that deploys the NFT without the help of a third-party exchange, allowing his May be used to limit transferability of NFTs.

For more information, please refer to the following link.

OFAC Redesignates Tornado Cash, Mixer Receives Hacked Crypto

To Amos Kim

This week, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) said, “To record additional reasons for the designation, such as its role in obfuscating the movement of more than $455 million stolen in March 2022, Tornado We have delisted and redesignated Cash.” The largest known cryptocurrency heist to date by OFAC-designated and DPRK-controlled Lazarus Group. OFAC also issued new guidance “to provide additional compliance guidance regarding the nature of Tornado Cash entities,” and with the additional guidance he updated three existing FAQs. According to reports, earlier this week, according to Etherscan data, the hackers involved in his $28 million hack of Deribit, a leading Bitcoin and Ether options exchange, had stolen 1,600 Ether (approximately $2.5 million). ) have been transferred to Tornado Cash.

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SEC, CFTC bring enforcement action involving rogue crypto trading bots

To Joanna F. Wasick

Last week, the U.S. Securities and Exchange Commission (SEC) announced that it had indicted four individuals for their role in the Trade Coin Club (TCC). From his more than 100,000 investors around the world at the time,” the complaint alleges that TCC is a multi-level marketing program that operated from 2016 to 2018, and that he was involved in trading activities purported to be cryptocurrency trading bots. promised a profit. The defendant told investors that the bot was making “millions of microtransactions” every second, and that investors would receive a minimum return of 0.35% each day. However, the investor’s money went into the pockets of the defendant and other of his TCC promoters, rather than being used for purported bots, according to the SEC.

In a similar move, last week the Commodity Futures Trading Commission (CFTC) issued an order showing that Jeremy Roundsville defrauded investors through his company Arbitraging.co. Arbitraging.co claimed to have a “sophisticated arbitrage trading bot” that performs complex functions for the company. Digital asset trading strategy. However, the bot never executed any trades, according to the CFTC. The customer was unable to make a withdrawal and lost all funds. The order requires Rounsville to pay his $177,000 civil fine, permanently bans him from soliciting or trading in commodity interests and virtual currencies or registering with the CFTC, We demand that you stop and stop further violations of the Commodity Exchange Act. and CFTC regulations.

For more information, please refer to the following link.

Binance FTT Sale and FTX File Bankruptcy Amid DOJ Investigation

To Christopher W. Lamb

On November 11, 2022, FTX, the once one-third cryptocurrency exchange, announced that it had filed for bankruptcy protection along with about 130 affiliates. According to reports, his CEO and founder Sam Bankman-Fried is stepping down and he will be replaced by John Ray III, a turnaround veteran who participated in Enron’s bankruptcy.

After multiple reports were released this week, highlighting that FTX sought to bail out more than $1 billion, it received a non-binding letter of intent from fellow cryptocurrency exchange Binance. After initially reviewing the FTX book, Binance reportedly failed to move forward amid concerns that FTX was under government investigation. A report explains that the problem started when Binance began offloading hundreds of millions of dollars of his FTT (a token created by FTX) on Sunday. FTX’s legal and compliance officer resigned shortly thereafter, according to the report. Another report says FTX is already under investigation by state and federal regulators, and the U.S. Department of Justice (DOJ) may have launched an investigation into FTX in connection with recent liquidity issues. I have.

For more information, please refer to the following link.

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