The R Roundup: Cointelegraph ETF Error 😬 - Issue #111

Bitcoin experienced a sudden surge in price following a misleading announcement from Cointelegraph, a prominent crypto news outlet, about the approval of a long-awaited spot Bitcoin exchange-traded fund (ETF).

The news falsely claimed that the U.S. Securities and Exchange Commission had given the green light to BlackRock’s application for a spot Bitcoin ETF. Bitcoin prices briefly shot up by 10%, surpassing the $29,300 mark before correcting to around $28,100.

Cointelegraph swiftly issued an apology, acknowledging the dissemination of inaccurate information and attributing the error to an unverified screenshot shared on social media. The publication emphasized its commitment to transparency, promising to share the results of their internal investigation.

A spot Bitcoin ETF is highly anticipated within the crypto community, as it could pave the way for traditional and institutional investors to enter the market through regulated channels. Despite this incident, several applications for spot Bitcoin ETFs are pending, though the SEC remains cautious about the volatile nature of the crypto market.

As the situation unfolded, the SEC cautioned the public, emphasizing the importance of relying on official sources for accurate information, reminding investors to exercise prudence and verify news from reputable channels.

International Crypto Mixers Beware ⛔️

The US Treasury Department is set to label international crypto mixers as money-laundering hubs, specifically mentioning their use by Hamas and other terrorist groups.

This designation functions as a sanction, necessitating specific reporting for financial transactions. The move aims to combat illicit actors exploiting Convertible Virtual Currency mixing, including state-affiliated cyber actors, cyber criminals, and terrorist groups. Wally Adeyemo, Deputy Treasury Secretary, emphasized the department's commitment to curbing such exploitation.

The decision follows concerns raised by lawmakers, including Senator Elizabeth Warren, regarding Hamas's use of crypto for fundraising. Warren, along with Senator Roger Marshall, called for decentralized finance companies to adhere to the same anti-money-laundering rules as banks.

However, Yaya Fanusie, Director of Anti-Money Laundering at the Crypto Council for Innovation, countered this argument, highlighting existing regulations in the US.

Chainalysis also suggested that reports on terrorist groups' crypto use might exaggerate the situation, emphasizing their historical reliance on traditional financing methods.

Fantom Foundation $7m Fumble 😨

A shocking incident struck the Fantom Foundation as one of its employees fell victim to a crypto exploit, losing a substantial $7 million, according to Andre Cronje, Director of Fantom Foundation.

The attack, revealed by a pseudonymous figure named Spreek, was facilitated through a zero-day exploit in the Chrome browser, as indicated by an admin in the Fantom Telegram channel. The stolen funds, totaling 4,500 ETH, were swiftly highlighted on blockchain explorers.

Fantom Foundation promptly reassured stakeholders that the foundation's funds remained secure, emphasizing that the breach exclusively impacted an individual employee's personal holdings.

The organization stated that only a fraction, approximately $550,000, of foundation funds were compromised, which accounts for less than 1% of their total reserves.

Fantom Foundation assured ongoing investigations into the incident, underscoring their commitment to resolving the matter and maintaining the security of their financial assets.

No More UK Binance Users🚫

In response to the U.K. Financial Conduct Authority's (FCA) stringent regulations on crypto advertising, Binance has announced a halt in accepting new users from the country, effective Monday.

The FCA's recent restrictions prevented Binance's local partner, Rebuildingsociety.com, from approving cryptocurrency advertisements. Under the updated guidelines introduced on October 8, U.K. firms registered with FCA can self-approve their ads or employ authorized entities for this purpose.

Binance, in compliance with these rules, ceased onboarding new users and is actively seeking an FCA-authorized entity to approve its financial promotions. While existing U.K. users who have completed the "Investor Declaration and Appropriateness Test" will maintain access to services, they won't be able to explore new products and services during this period.

The cryptocurrency exchange expressed its commitment to collaborating with the FCA to safeguard user interests, underscoring the importance of finding an authorized firm swiftly to continue providing seamless services within the regulatory framework.

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