Hodler’s Digest, November 5-11 – Cointelegraph Magazine

This week's main news

CME has overtaken Binance to hold the largest share of Bitcoin futures open interest

The Bitcoin futures market is experiencing an interesting turnaround as the Chicago Mercantile Exchange (CME) has surpassed Binance in terms of Bitcoin futures open interest. This change occurred after Bitcoin broke above the $37,000 mark for the first time in more than 18 months.

However, James Seifert, a research analyst specializing in trading at Bloomberg Intelligence, questioned whether the rise of Bitcoin futures on CME would address the United States Securities and Exchange Commission's historic concerns about the depth and potential of Bitcoin markets. For market manipulation.

“Okay, that's interesting… is this a huge market now?” Seifert said in a post on X (formerly Twitter).

Cryptoqueen OneCoin's legal chief pleads guilty to fraud.

The former head of legal and compliance at OneCoin is looking at a potential 10-year prison term for her involvement in a $4 billion cryptocurrency business scheme. In Manhattan federal court, OneCoin's former chief compliance officer, Irenia Dilkinska, pleaded guilty to wire fraud and money laundering charges.

U.S. District Judge Edgardo Ramos accepted Dilkinska's guilty plea, the U.S. Department of Justice said in a statement. She also admitted one count of conspiracy to commit money laundering and one count of money laundering. Each charge carries a maximum sentence of five years in prison.

Dilkinska is scheduled to be sentenced on February 14, 2024, where she could face up to 10 years in prison for her role in the OneCoin scheme.

Genesis is seeking court approval to reduce Three Arrows' capital request from $1B to $33M

Bankrupt cryptocurrency investor Capital (3AC) has asked a court to approve a settlement agreement with the failed crypto hedge fund.

In a recent court document, Genesis 3AC said it should be awarded a $33 million claim against Genesis. This represents 3.3 percent of the total claims filed against Genesis in the first place, which is $1 billion.

According to Genesis, 3AC's claims against Genesis are the largest verified claims in Chapter 11 related to the failure of the FTX exchange. Genesis emphasized that the 3AC borrower was one of Genesis' largest borrowers from 2020 to 2022, until the bankruptcy.

SafeMoon CEO granted bail after feds cite flight risk

Safe Moon CEO Braden John Caroni's bail has been delayed by U.S. federal prosecutors, who have argued that he received funds overseas and may be trying to get out of the country with connections. Prosecutors expressed concern that his release could cause a flight risk and pose a danger to the community.

The delay comes after New York District Judge Lashan DeArcy Hall decided on Nov. 8 to suspend a bail order issued by a Utah magistrate judge that allowed Caroni to be released on $500,000 bail. However, the prosecution contested this decision saying that the release order was passed “without taking into account the high financial capacity of the accused and his ability to flee”.

Binance to stop Russian ruble deposits next week

Binance users in Russia should take note: They have a little more than two months until January 31, 2024 to get their quarter off the stage. Binance is winding down operations in Russia and plans to stop accepting deposits in Russian rubles as of November 15, 2023.

This comes after Binance announced in September 2023 that it will sell its operations to a newly established crypto exchange called CommEX and completely withdraw from Russia. However, he had limited information about the details of the deal, including the amount of the transaction and the founders of CommEX. , creates some controversy.

Winners and losers

At the end of the week, Bitcoin (BTC) at $37,249, Ether (ETH) at $2,078 and XRP (XRP) at $0.67. According to CoinMarketCap, the total market cap is $1.42 trillion.

Among the largest 100 cryptocurrencies, the top three altcoin gainers for the week were FTX Token (FTT) at 250.48%, Kaspa (KAS) at 67.23% and Cronos (CRO) at 52.20%.

The top three altcoin losers of the week were Maker (MKR) at -3.39%, Tether Gold (XAUt) at -2.60% and PAX Gold (PAXG) at -2.51%.

Be sure to read Cointelegraph's market analysis for more information on crypto prices.

The most memorable quotes

SEC Chairman Gensler cannot continue to abuse the agency's authority to further his political agenda of driving the new and promising digital asset industry overseas.

Tom Emmer, United States Republican Congressman

If it's too technical or aggressive for some people, they help define the core values ​​of standard Bitcoin in a more friendly way than Bitcoin.

Lugui Tillier, Lumx Studios commercial director

Binance's Chief Compliance Officer harshly but succinctly sums up this issue, admitting that Binance is operating ‘like a fking fking unauthorized securities exchange in the USA bro'. It was right.”

United States Securities and Exchange Commission

As we've seen with cryptocurrency, heavy hand restrictions have hindered the exploration of potentially revolutionary applications.

Matthew Putman, CEO and Founder of Nanotronics

In Web 3, it's not the code that's king, but the community. Focus on up front clarity rather than perfecting the back logic.

Thiago Cerodio, Community Head of Partisia Blockchain

‘I'm sorry we're boring,' I say. But we are one of the earliest projects. We're pretty big… we're the one with the most changes on GitHub, and we haven't slowed down in over 2000 days… sometimes boredom is good.

Frederik Gregard, Cardano Foundation CEO

Forecast of the week

Bitcoin ‘Terminal Price' hints at BTC's next all-time high of at least $110K.

As the price of BTC hovers at its highest level in the past 18 months, analysts are predicting the upward trajectory it may take in the coming months and years. As the new bull cycle plays out, Bitcoin may next “sell” at $110,000, according to a popular on-chain indicator.

Analyzing the terminal price, See to Bitcoin creator Philip Swift described the value as a “simple” method of estimating long-term BTC price levels. Terminal value is calculated from Bitcoin's so-called “forward value” — the value obtained by dividing the “defective coin days” by the current supply. It will not reach the all-time high terminal price, but BTC/USD managed to hit the all-time high in 2017 and the trend line for the first time in April 2021. The current all-time high of $69,000 was set in November of that year.

As terminal prices continue to rise, $110,000 may eventually become a conservative target, with the next all-time high only coming later in the next cycle.

FUD of the week

JPEX Scandal: Taiwan Declares New People Suspected of Fraud – Report

Prosecutors in Taiwan are seeking to arrest Chang Tung Ying, the main partner in JPEX's Taiwan office, on fraud charges related to the JPEX cryptocurrency exchange. The situation surrounding the crashed exchange is under investigation and the Taipei District Prosecutor's Office (TDPO) has reportedly identified new suspects. According to a news report from local TV channel TVBS on November 9, the TDPO has sought the arrest of Chang Tung Ying on fraud charges.

As part of the ongoing JPX investigation, prosecutors in Taipei searched nine locations and summoned Chang along with three other individuals. Chang and JPX lecturer Shih Yu-sheng (also known as Shi Yu) are suspected of violating the Banking Act and the Money Laundering Regulation Act.

Crypto exchange CoinSpot has reportedly suffered a $2 million hot wallet hack

Blockchain security firm Certike has revealed that the recent theft of $2.4 million from Australian exchange CoinSpot's hot wallet may have been due to “private key compromise”. CoinSpot appears to have encountered a hack involving the compromise of a private key in a hot wallet.

Anonymous blockchain researcher ZachXBT has highlighted two transactions that took place in a wallet belonging to the suspected hacker on November 8th. The wallet owner then transfers the funds to the Bitcoin network via THORChain and OneBridge. CertiK revealed that the apparent exploit was likely the result of a “private key compromise” on at least one of CoinSpot's hot wallets.

According to Etherscan data, a transaction of 1,262 Ether, with a current value of $2.4 million, was obtained from a known CoinSpot wallet and entered the wallet associated with the suspected hack.

Poloniex Exchange Suffers $100 Million Exploit, Offers 5% Bonus

Crypto wallet Poloniex, which is connected to the digital exchange, has encountered an apparently suspicious flow on the blockchain explorer Etherscan. As blockchain security experts suspect a breach, attackers have drained up to $100 million into the crypt.

In the year On November 10, millions of crypto assets were withdrawn from an account named Poloniex 4 on Etherscan. Initially estimated at $60 million, later assessments put the loss at more than $100 million. CertiK, a blockchain security company, suggests that “private key agreement” may be the cause and the funds have already been transferred to four foreign holdings, some of which have been converted to Ether.

The best magazine sections of the week

EXCLUSIVE: 2 years after John McPhee's death, widowed Janice is broken and needs answers.

Two years after John McPhee's death, his wife, Janice, still can't get closure. “I want to see the body for myself and know that it really happened.”

‘$10K JPGs' Scares Gamers, Animoca Crypto Game Streaming Plans: Web3 Gamer

Animoka owns a Twitch-like platform and Web3 Games was a major talking point at Binance Blockchain Week.

6 questions for Lugui Tillier about Bitcoin, Ordinals and the future of crypto

Lugui Tillier is the Business Director of Lumx Studio, one of the top cryptocurrency companies based in Rio de Janeiro – a city with a growing crypto industry.

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Editorial staff

Cointelegraph magazine writers and reporters contributed to this article.