HEX’s founder is accused of fraud, Binance is still operating in China and engaging in copy trading. Who is doing it? This week we bring you these stories and more in cryptocurrency.
SEC charges HEX founder with fraud
The US SEC has charged HEX and PulseChain founder Richard Heart with defrauding millions of investors through the illegal sale of unregistered cryptocurrency securities. The SEC also alleges that he misappropriated $12 million to purchase luxury goods such as a Rolex, McLaren and Ferrari, as well as $4 million in black diamonds. HEX’s market capitalization plummeted by $500 million just two days after the news broke.
WSJ: Binance is doing business in China
Investigative reporters at The Wall Street Journal found that Binance is conducting most of its business in China despite the country’s cryptocurrency ban. Last May, the exchange recorded more than $90 billion in spot and futures trading volume in China, with total trading volume exceeding $670 billion. China topped Binance’s list of top four markets in May, including South Korea, Turkey, and Vietnam.
SEC: Coinbase suspends altcoin trading
Coinbase beat second-quarter revenue expectations thanks to higher interest income, and remains optimistic it will win its legal battle with the SEC. The agency accused Coinbase of trading unregulated cryptocurrency securities, and claims Coinbase was asked to stop trading all but Bitcoin, although the SEC denied such a formal request. CEO Brian Armstrong said compliance would mean the end of the U.S. cryptocurrency industry and would force Coinbase to opt for a court settlement instead.
Revolut suspends U.S. cryptocurrency operations
Revolut, a leading fintech neobank, will cease its US cryptocurrency operations from September 2 due to US regulatory concerns. Full access will be disabled until October 3, preventing US customers from purchasing cryptocurrencies on the platform. Revolut still aims to explore alternative ways to offer cryptocurrency products in the future.
Curve Hack Increases DeFi Contagion Risk
Hackers stole more than $61 million from Curve Finance’s token pool, impacting the decentralized finance ecosystem with widespread contagion risks for DeFi protocols. The attack targeted a stable pool using a specific version of the Vyper programming language. The cryptocurrency community has been researching the exploit to see if it could affect other projects in the future.
Australian financial regulator sues eToro
Australian financial regulators have filed a lawsuit against leading trading platform eToro over its contract-for-difference product, claiming the product is harmful to investors. The regulator claims that around 20,000 users who invested in CFD products suffered losses between October 2021 and June this year. This case focuses on eToro’s target market and a screening test of whether it is appropriate for some retail clients to trade CFDs.
Hong Kong grants first cryptocurrency license
Hong Kong has granted its first cryptocurrency licenses to HashKey and OSL, fulfilling its promise to develop a global digital asset hub. HashKey collaborates with Standard Chartered to provide fiat currency deposit and withdrawal services along with virtual asset over-the-counter trading. Hong Kong’s revamped cryptocurrency framework aims to rival Singapore as a leading Asian financial centre.
Half of cryptocurrency copy traders are Gen Z
Younger investors, especially Gen Z, are more likely to seek advice from copy trading and social media influencers. According to a report from cryptocurrency exchange Bitget, 44% of copy traders are under the age of 25, followed by the 25-35 age group, making up almost a third of the total. While those aged 35 to 55 account for 17%, only 7% of copy traders are aged 55 or older.
This is what happened in the cryptocurrency market this week. I will see you next week.