2024-07-16 21:01

The Mt. Gox distribution will not end the bullish trend, CryptoQuant's CEO noted. The crypto rebound from last week's low showed no signs of stopping with bitcoin (BTC) hitting its highest price in four weeks on Tuesday. BTC surged above the $65,000 level for the first time since late June, shrugging off a dip below $63,000 earlier in the day as wallets related to the defunct Mt. Gox exchange's estate moved $2.8 billion worth of BTC, likely preparing to distribute assets to creditors in the coming days. The crypto rally was broad-based, showcased by the market benchmark CoinDesk 20 index (CD20) gaining nearly 3% over the past 24 hours with 16 of the 20 constituents in the green during the day. The strongest performer among altcoin majors was XRP (XRP), the native token of the XRP Ledger payment network, up 9% during Tuesday and extending its weekly gains to 35%. The token's rally is supported by whales, or large asset holders, increasing their holdings, in a sign conviction in higher prices, crypto data provider Santiment pointed out. Another catalyst was traditional derivatives trading powerhouses CME and CF Benchmarks announcing indices and reference rates for XRP. These offerings may boost institutional adoption for XRP, Brad Garlinghouse, the CEO of closely related blockchain payments firm Ripple, suggested. Mt. Gox sell pressure "overestimated" As Germany's BTC sales are behind, crypto investors mull how much of the $9 billion bitcoin about to be distributed to creditors will be dumped on the market to capitalize on the asset's appreciation after ten years of waiting. Ki Young Ju, CEO of crypto analytics firm CryptoQuant, argued that fears over the sell pressure is "overestimated" and will not derail the crypto rally underway. "I believe this distribution won't end the bullish trend, as the coins are expected to react to market sentiment similarly to the existing bitcoin supply," he explained in an X post. "Unlike the German government selling, Mt. Gox creditors aren't forced to sell, so it's not purely sell-side liquidity." Well-followed crypto and macro analyst Alex Krüger estimated a 10% price drop at maximum for bitcoin if creditors dump their reclaimed assets en masse, Ju pointed out. CoinMetrics also said that the market should absorb Mt. Gox creditors liquidating their assets if they happen orderly and spread through weeks based on bitcoin's current market depth and trading volumes. "The distribution of ~65,000 BTC (worth approximately $1.95B at current prices) could potentially be absorbed by the market over a period of a couple weeks without causing severe disruptions, assuming the liquidations are done gradually and across multiple exchanges," CoinMetrics analysts wrote in a Tuesday report. "These findings, however, are only suggestive of the depth and maturity of the BTC market, but should assuage fears of liquidity shortage in the near-term." https://www.coindesk.com/markets/2024/07/16/bitcoin-hits-65k-shaking-off-mt-gox-payout-worries-xrp-leads-crypto-rally/

2024-07-16 20:47

A U.K. court ruled earlier this year that Wright was not the inventor of bitcoin and had lied “extensively and repeatedly” and forged documents in his attempt to convince the world otherwise. Australian computer scientist and one-time Satoshi Nakamoto claimant Craig Wright has been forced to update the homepage of his personal website with a legal notice declaring that he is not the inventor of Bitcoin. The notice – which must be displayed on Wright’s website for six months – declares that Wright lied “extensively and repeatedly” in court proceedings where he claimed to be Satoshi Nakamoto, and “attempted to create a false narrative by forging documents ‘on a grand scale’.” Wright’s web of lies, spun through “multiple legal actions” constitute a “most serious abuse” of the legal systems in the U.K., Norway, and the U.S., the declaration reads. It also links visitors to the full judgment against Wright, and “its appendix detailing various forged documents created by Dr. Wright.” The notice is part of a dissemination order granted by the U.K. judge, Justice James Mellor, overseeing the case brought against Wright by the Crypto Open Patent Alliance (COPA), a non-profit organization representing Bitcoin developers. COPA, which is funded by crypto industry heavyweights like Block’s Jack Dorsey and Coinbase as well as organizations like the Human Rights Watch, sued Wright in 2021 to get a once-and-for-all ruling that he is not Nakamoto to prevent him claiming copyright of the Bitcoin whitepaper and from suing his critics and developers alike under the guise that he created Bitcoin. Earlier this year, Mellor ruled that Wright was not the creator of Bitcoin. In a written judgment that followed two months later, he declared that Wright had lied throughout the trial and forged evidence. On Tuesday, Mellor issued a final judgment in the case referring Wright – as well as his colleague and go-to character witness, nChain co-founder Stefan Matthews, to U.K. prosecutors, the Crown Prosecution Service (CPS) to be considered for perjury charges. The dissemination order granted by Mellor was part of his final judgment. Wright was also ordered to post a similar notice on his Twitter/X account and on the Slack channels where he communicates with his supporters. At the time of publication, Wright had not yet updated his X account to display the legal notice. His most recent post, dated May 20, is a declaration of his intent to appeal Mellor’s decision that he was not Satoshi Nakamoto. In Mellor’s final judgment, he said that Wright has made “no application for permission to appeal” despite what he has said on social media. https://www.coindesk.com/policy/2024/07/16/after-court-order-craig-wright-updates-website-with-admission-he-is-not-satoshi-nakamoto/

2024-07-16 18:57

In a new court filing, lawyers for Northern Data called the suit a “textbook example of bad faith litigation.” European bitcoin mining firm Northern Data is pushing back against a whistleblower suit filed by two former executives of the company who say they were wrongfully terminated after raising concerns about the company’s financial health and alleging tax evasion. On Monday evening, lawyers for Northern Data filed a motion to dismiss the federal case, calling it a “textbook example of bad faith litigation” and alleging that the two plaintiffs – Gulsen Kama and Joshua Porter – had “unproductive, brief tenures at the company” after which Kama was fired for cause and Porter was laid off for his “lack of productivity” “When Porter and Kama made extortionate demands for ‘severance’ payments, Northern Data rejected them,” Northern Data’s lawyers wrote in the motion to dismiss. “In response, both employees now style themselves as ‘whistleblowers’ and seek to profit personally and financially from allegations that they know – and have every reason to know – are false.” The Monday filing also pointed out that Kama’s suit against Northern Data is not her first rodeo filing lawsuits against her former employers. In 2019, she filed a whistleblower suit against tax preparer Jackson Hewitt, alleging that she was wrongfully terminated after raising concerns that the company lied about potentially relocating in order to get a $2.7 million tax break from the state of New Jersey. Last year, Kama filed suit against another employer, Quest Diagnostics, alleging workplace discrimination on the basis of her sex and ethnicity. The results of those whistleblower cases were not immediately clear. A lawyer for Kama and Porter did not respond to CoinDesk’s request for comment. Northern Data’s motion to dismiss is fairly procedural in nature, arguing that the California court overseeing the case should toss it out due to a lack of jurisdiction over the corporate defendants (in this case, the U.S. subsidiaries of the German tech company), who are incorporated in Delaware and have principal places of business in Virginia. The lawyers also argue that the fraud claims – which they describe as “inflammatory but completely unsupported” – lack sufficient particularity. A hearing to discuss the motion to dismiss will be held in a Los Angeles court on Aug. 19, 2024 at 1:30 pm local time (20:30 UTC). Explosive allegations Kama and Porter’s first amended complaint against their former employer contained explosive allegations that Northern Data lied to investors about the strength of its finances, hiding the fact that it is “borderline insolvent,” and, additionally, is “knowingly committing tax evasion to the tune of potentially tens of millions of dollars.” The allegations came amidst growing media buzz that the Tether-backed tech firm is considering a U.S. initial public offering (IPO) of its artificial intelligence unit, which Bloomberg reported was valued at up to $16 billion. In their Monday motion, lawyers for Northern Data declined to comment on market speculation but stressed that, if it were true, “the period leading up to an IPO is a particularly sensitive time for a company. As Plaintiffs undoubtedly know, public accusations of fraud – no matter how irresponsible – can disrupt that process.” Porter and Kama have alleged that the firm had a “$30 [million] German tax liability and additional liabilities of almost $8 [million] while simultaneously having only $17 [million] cash on the balance and a monthly burn rate of $3 [million]-$4 [million].” Their suit also alleges that the firm committed “rampant tax evasion” in its early years and had no plan to take remedial measures to account for it, potentially leaving them liable for “tens of millions of dollars” in U.S. tax liabilities if it were to be audited. Both Kama and Porter claimed they were fired after bringing their concerns to supervisors. A spokesperson for Northern Data said the firm “refutes the allegations in the strongest terms.” “It is no coincidence that these allegations from disgruntled former employees were publicized just days after unconfirmed media speculation that the company is evaluating a potential capital markets event and just ahead of the publication of our 2023 accounts. The allegations are clearly financially motivated and completely baseless. We will contest them vigorously to protect ourselves against false assertions which damage our company and our business.” The spokesperson added that the firm is “well capitalized” and has a “very robust growth plan, with revenue expected to more than triple in 2024.” https://www.coindesk.com/policy/2024/07/16/bitcoin-miner-northern-data-moves-to-dismiss-ex-employees-whistleblower-suit/

2024-07-16 17:52

Gambaryan reportedly has a herniated disc in his back, leaving him in severe pain and “hardly able to walk.” Detained American Binance executive Tigran Gambaryan had to be pushed into a Abuja, Nigeria courtroom today in a wheelchair after a herniated disc in his back left him in severe pain and “hardly able to walk,” according to a Monday report from his family. Gambaryan’s health has steadily deteriorated since he was detained in Nigeria in February. At first, Gambaryan was placed under home detention but was later transferred to the notoriously dangerous Kuje prison – which holds violent criminals including members of the Boko Haram terrorist group – after his colleague and fellow detainee, British-Kenyan citizen Nadeem Anjarwalla, escaped. Gambaryan, a former Internal Revenue Service agent and Binance’s current head of financial crime compliance, voluntarily traveled to Nigeria in February to meet with government officials. He was subsequently detained without explanation and later charged with money laundering and tax evasion – essentially as a scapegoat for his employer, which Nigerian officials have accused of tanking the value of the naira. The tax evasion charges against Gambaryan were later dropped. He has pleaded not guilty to all charges. Since his transfer to Kuje prison, Gambaryan is believed to have contracted malaria and suffered double pneumonia, complained of numbness in his foot, and has collapsed in court at least once. The judge overseeing Gambaryan’s money laundering trial has issued a court order to officials at Kuje prison to release his medical records, but they have not complied. In a statement to CoinDesk, Gambaryan’s wife Yuki said she was “heartbroken to see my once fit and healthy husband reduced to such a condition.” “This ordeal has taken a severe toll on him, leaving him in so much pain that he can hardly walk," she said in the statement. "I do not understand why this is being allowed to continue," she continued. "Tigran is innocent. All he did was dutifully travel to Nigeria for a meeting.. “Now our lives have been turned upside down and his health is at serious risk. I am pleading with the Nigerian authorities to urgently release my husband on humanitarian grounds. This situation is destroying him. I need him safely home with us right now." The Biden Administration has come under fire for seemingly doing little to aid Gambaryan. Two members of Congress, Rep. French Hill (R-Ark.) and Rep. Chrissy Houlahan (D-Penn.) visited Gambaryan in prison last month, and asked the U.S. embassy to advocate for his humanitarian release due to the “horrible conditions in the prison, his innocence and his health.” Hill was one of the 12 signatories on a letter from members of Congress to President Biden, Secretary of State Antony Blinken and Presidential Envoy for Hostage Affairs Roger D. Carstens urging Gambaryan’s case to be treated as a hostage situation. A State Department spokesperson told CoinDesk earlier this year that the department was "aware of reports" of Gambaryan's detention, while a White House spokesperson later referred CoinDesk back to the State Department. Without intervention, Gambaryan will likely be stuck in Kuje prison through the fall. His money laundering trial has been adjourned to October while the Nigerian courts close for the summer. https://www.coindesk.com/policy/2024/07/16/detained-binance-exec-tigran-gambaryan-wheeled-into-nigerian-court-as-health-deteriorates/

2024-07-16 16:43

It was the seventh consecutive day of net inflows for the U.S.-based spot funds. Spot bitcoin ETFs now have attracted over $16 billion of inflows since launching in January. The ETFs took in $300 million alone on Monday, continuing a seven-day inflow streak. Lifetime net inflows into the U.S.-based spot bitcoin exchange-traded funds topped $16 billion on Monday as investors of late have shown themselves to be buyers in both up and down markets. The funds yesterday added another $300 million, marking the seventh consecutive day of overall net inflows, according to data from Farside Investors. Most of the money was poured into BlackRock’s iShares Bitcoin Trust (IBIT) which took in $117.2 million. Currently with $18.4 billion in assets under management, IBIT appears poised to soon cross the $20 billion mark, while Fidelity’s Wise Origin Bitcoin Frund (FBTC) is nearing the $10 billion AUM threshold. The strong inflows came as bitcoin bounced strongly from the mid-$50K area at which it had been stuck in since earlier this month when Germany’s sale of 50,000 BTC combined with Mt. Gox repayments to crash the market. Bitcoin (BTC) at press time was trading at $64,600, up about 13% from levels seen late Friday afternoon. This long streak of ETF inflows is particularly notable as it began alongside bitcoin's early July plunge, with net additions ranging from $140 million to $300 million per day. The action stands in contrast with ideas from a few bears in the space who have contended that much of the ETF interest was hot money that would dump the funds at the first sign of price trouble. Inflows also come as issuers of a potential spot ether ETF prepare to submit their final documents with the U.S. Securities and Exchanges Commission (SEC) who signaled that the funds could hit the market as soon as Tuesday, July 23. https://www.coindesk.com/markets/2024/07/16/bitcoin-etf-traders-bought-the-dip-and-now-are-buying-the-rebound-as-inflows-topped-300m-monday/

2024-07-16 16:14

America PAC has raised $8.75 million this quarter from a handful of tech and venture capital executives. An elite group of venture capitalists, business moguls and tech executives including Gemini co-founders Tyler and Cameron Winklevoss have contributed a combined $8.75 million to a new super political action committee (PAC) backing Donald Trump’s presidential campaign. According to America PAC’s latest filings with the Federal Election Commission (FEC), other donors to the PAC include former managing director of Sequoia Capital Douglas Leone, Palantir co-founder Joe Lonsdale, and Troy Link, CEO of Jack Link’s Beef Jerky. Elon Musk has also reportedly committed to donating to America PAC, though his name does not currently appear on any of the PAC’s July filings. Yesterday, the Wall Street Journal reported, citing sources familiar, that Musk planned to donate a whopping $45 million per month to the PAC. But Musk has seemingly denied the report, replying to the WSJ’s post on X about the report with a meme that said “FAKE GNUS.” After the former president was injured in an apparent assassination attempt at a rally in Pennsylvania over the weekend, Musk came out in full support of Trump’s reelection campaign on social media, posting “I fully endorse President Trump and hope for his rapid recovery.” Whether Musk is, in fact, donating to America PAC or not, he is one of a growing number of high profile tech and business executives who have recently declared their support for Trump’s campaign. Crypto executives – like Kraken founder Jesse Powell, who donated $1 million to Trump, largely in ether – have also been outspoken about supporting Trump’s reelection. In addition to their contributions to America PAC and other super PACs, including pro-crypto PAC Fairshake (to which the brothers have donated roughly $5 million), the Winklevoss twins said in June they each gave $1 million to Trump’s campaign. A portion of their donations were later refunded to comply with legal limits on individual donors. https://www.coindesk.com/policy/2024/07/16/cameron-and-tyler-winklevoss-each-contributed-250000-to-new-trump-aligned-super-pac/