Grayscale wins SEC lawsuit, but bitcoin falls to $26,000


Bitcoin first rose and then collapsed, Grayscale won a lawsuit against the SEC, the regulator postponed the decision on bitcoin-ETF, cryptocurrency exchanges removed sanctioned Russian banks from P2P platforms and other events of the outgoing week.

Bitcoin Price Drops Below $26,000

On Tuesday, August 29, the quotes of the first cryptocurrency exceeded $28,000 after the US court granted the petition of Grayscale Investments in a case against SEC.

On the night of Friday, September 1, bitcoin fell below $26,000. Before that, the SEC postponed a decision on applications to launch spot bitcoin ETFs.

At the time of writing, digital gold is trading below the $26,000 level.

Hourly BTC/USDT chart on Binance exchange. Data: Trading View.

Most of the top 10 digital assets by capitalization ended the week in the red zone. Solana (-6.4%) and XRP (-4.8%) lost the most.

Data: CoinGecko.

The total capitalization of the cryptocurrency market is below $1.1 trillion. The Bitcoin dominance index is 49.3%.

Grayscale won a lawsuit against the SEC. The regulator postponed the decision on bitcoin-ETF

In June 2022, asset manager Grayscale sued the SEC for refusing to convert GBTC into a bitcoin ETF. The company sent an application for the conversion of the investment product in October 2021.

In August 2023, the Court of Appeal ordered the Commission to reconsider its decision. After that, a member of the US House of Representatives, Warren Davidson, again called for the removal of Gary Gensler from his post as head of the SEC.

On August 31, the regulator postponed a decision on applications to launch spot bitcoin ETFs from BlackRock, Fidelity, Bitwise, VanEck, WisdomTree, Invesco and Valkyrie until at least mid-October.

In total, the agency has 240 days from the start of the review.

Bloomberg analysts James Seiffart and Eric Balciunas raised the likelihood of a spot Bitcoin ETF this year to 75%. Former SEC head Jay Clayton called a positive decision on the instrument inevitable.

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OKX, Bybit and KuCoin remove sanctioned Russian banks from P2P platforms

Russian users of the P2P service of the OKX cryptocurrency exchange noticed that Sberbank, Alfa and Tinkoff banks became unavailable as payment methods.

The disappearance of Sberbank and Tinkoff was also reported by users of the Bybit exchange. Although these banks remained in the drop-down list of payment methods, transactions for them are not carried out.

KuCoin has banned operations with Sberbank and Tinkoff, as notified in a letter. It is possible to buy or sell cryptocurrencies only with the help of a bank transfer and through payment services.

Earlier, the Binance exchange banned citizens of the Russian Federation from conducting transactions through its P2P platform with any currencies other than the ruble.

Binance to end support for BUSD in 2024

Cryptocurrency exchange Binance has informed customers of its intention to stop supporting its own stablecoin BUSD in 2024.

In February NYDFS launched an investigation into stablecoin issuer Paxos. The regulator ordered the company to stop issuing BUSD. At the same time, the firm stopped cooperation with Binance.

The company has stopped issuing new stablecoins in accordance with the instructions of the regulator. Redemption and conversion operations are supported until at least February 2024.

Also on ForkLog:

  • Bitcoin trading volume has fallen to five-year lows.
  • OpenAI has launched an improved business version of ChatGPT.
  • In Russia, for the first time, insurance was paid in digital rubles.
  • Robinhood buys out Sam Bankman-Freed’s stake for $605 million

Pepe developer accuses ex-team members of stealing $15 million

The only remaining developer of the Pepe meme token (PEPE) said that three former members of the project team are behind the theft of 16 trillion coins (~$15 million).

On August 25, on-chain researchers noticed that the PEPE multisig wallet reduced the number of required confirmations from five to two and transferred part of the assets to decentralized exchanges OKX, Binance, KuCoin and Bybit.

“Since its inception, PEPE has unfortunately been plagued by internal strife with part of the team being saboteurs driven by big ego and greed. Conflicts arose frequently, and most of those involved in the creation of the coin began to distance themselves a week after the launch, ”said the developer.

The representative of the project apologized for the situation and noted that now only he controls the smart contracts of the token. According to him, PEPE will be fully decentralized in the coming months.

Stolen coins account for about 4% of the total supply, and about 10 trillion PEPE remained in the multisig wallet. These tokens will be transferred to a new address, where they will be “securely stored until there is a need to use or burn them,” the programmer explained.

BlackRock has invested over $400 million in mining companies

Investment giant BlackRock holds shares of four cryptocurrency mining companies totaling $411 million.

According to Finbold, on July 30, the firm bought on a dip:

  • Riot Blockchain (RIOT) – 10.7 million shares (6.14%) for $199.08 million;
  • Marathon Digital (MARA) – 10.9 million shares (6.44%) for $190 million;
  • Cipher Mining (CIFR) – 2.2 million shares (0.88%) for $8.36 million;
  • TeraWulf (WULF) – 4.8 million shares (2.28%) for $14.10 million

The venture firm’s total investment corresponds to a 0.35% share of the $117.6 billion it owns.

In addition, BlackRock’s current position makes it one of the largest members of the Bitcoin Mining Council, the lobbying group for the Bitcoin industry in the United States, in terms of investment.

What else to read?

This week, ForkLog talked to a former employee of scam companies, learned about the technology for launching a crypto-processing service in Europe, and talked about the essence of neuro-art.

The traditional digest collected the main events of the week in the field of cybersecurity.

The cryptocurrency industry is attracting an increasing number of institutional players. This is evidenced by new investments in infrastructure, and the increasing attention that companies are showing to bitcoin as an asset class. The most important events of recent weeks are in the ForkLog review.

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