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US prosecutors have appealed the time-served sentences of Sergei Potapenko and Ivan Turõgin, the co-founders of the fraudulent crypto-mining scheme HashFlare. The government is seeking a 10-year prison sentence, arguing the scheme caused significant harm to victims. The co-founders had pleaded guilty to wire fraud conspiracy after being extradited from Estonia, but successfully argued for time served, claiming their customers' crypto appreciated in value beyond their initial investment. The HashFlare scheme, which prosecutors say raised over $577 million, was exposed for using fake dashboards and operating like a Ponzi scheme, paying early investors with funds from new members.
In other news, Donald Trump Jr. has joined the advisory board of the prediction market Polymarket following a strategic investment from 1789 Capital, an investment vehicle focused on supporting companies that promote “American exceptionalism.” This move is part of Polymarket's strategy to legally re-enter the US market after being fined by the Commodity Futures Trading Commission (CFTC) in 2022. Additionally, blue-chip NFT collections like Pudgy Penguins and Bored Ape Yacht Club saw double-digit price declines this week, a trend that coincided with a significant pullback in the price of Ether from its recent all-time high. Source
Commerce Secretary Howard Lutnick announced that the U.S. Department of Commerce will begin publishing economic data, starting with GDP figures, on a blockchain. The move, framed as part of the Trump administration's pro-crypto stance, is intended to enhance transparency, prevent data manipulation, and modernize the distribution of official government statistics. Lutnick stated that the initiative will eventually be made available across the entire government. The announcement comes as part of a broader effort within the administration to integrate blockchain technology into federal operations.
The article notes that a key detail—which specific blockchain network will be used—has not yet been clarified. The government is still "ironing out the details." While blockchain technology can create an immutable and secure record, it does not guarantee the accuracy of the underlying data itself. The decision to use blockchain for data that is already publicly available also raises questions about its practical utility, though it could provide a single, verifiable source of information for investors and the public. Source
A new collaboration between TRIO, a Bitcoin-native marketplace, and Swarm Markets has led to the launch of "Gold on Bitcoin," a project that tokenizes physical gold bars on the Bitcoin blockchain using the Ordinals protocol. Each token, or Ordinal, is inscribed with the unique serial number of a physical gold bar held in a Brinks vault, allowing for the ownership and trading of real gold in a digital format. While the tokens can be traded freely on the Bitcoin network, redeeming the physical gold requires a "know-your-customer" (KYC) verification process through Swarm Markets to comply with regulations for physical assets.
This initiative merges the stability of gold with the accessibility of crypto trading, a growing trend in the real-world asset (RWA) market. The project has started by tokenizing a small number of one-ounce gold bars but plans to expand based on demand. The move is also seen as a symbolic gesture, uniting Bitcoin's reputation as "digital gold" with the traditional asset itself. By creating a standardized process for tokenizing gold on Bitcoin, the creators hope to encourage broader adoption by other custodians in the future. Source
Europe is reportedly considering a significant shift in its digital euro plans, moving away from a private, centrally-run system toward potentially issuing the currency on public blockchains like Ethereum or Solana. This re-evaluation is being driven by the recent passage of a U.S. stablecoin law, which has heightened concerns that the U.S. dollar could gain a competitive advantage in the digital payments space. Deploying the digital euro on a public blockchain would provide it with instant access to the global crypto economy, including decentralized finance and cross-border payments, without the need to build entirely new infrastructure. This approach is seen as a way to increase the euro's visibility and maintain its relevance in global finance.
However, moving to a public blockchain presents several challenges for European policymakers. Key concerns include user privacy and compliance with the EU's strict General Data Protection Regulation (GDPR), as the public nature of these networks conflicts with the right to data erasure. There are also technical risks, such as scalability issues with Ethereum and reliability concerns with Solana, along with the fact that a public blockchain's governance is outside direct state control. Officials are also wary that a widely accessible digital euro could lead to a large-scale withdrawal of deposits from traditional banks, which could threaten financial stability. Source
Bitcoin's recent price rebound may be short-lived, as analysts point to several factors suggesting a potential "cooling-off phase" in September. On-chain data indicates a significant slowdown in network activity, with a 13% drop in adjusted transfer volume. If this trend continues, it could signal a broader contraction in demand for the cryptocurrency. Additionally, Bitcoin is facing sustained selling pressure from long-term holders, which, according to Glassnode, suggests the market may be in a late-stage phase of its current cycle.
The bearish outlook is compounded by ongoing outflows from spot Bitcoin ETFs and a historically weak performance for Bitcoin in the month of September, which has averaged a negative return of -3.77% over the past 12 years. Analysts are cautioning investors to adopt a "wait and see" approach, noting that a price target of $100,000 is on the table if the selling pressure from both institutional and individual investors persists. Source
Markethive has coined the term blogcasting to describe its innovative broadcasting system that expands the reach of blog and newsletter content far beyond traditional email subscriptions. The platform allows users to connect their social media accounts and WordPress blogs, so when a new article is published, it's automatically syndicated across a vast network of social media feeds and other connected blogs. This "ripple effect" or "Blog Cloud" significantly increases brand awareness, drives website traffic, and generates valuable backlinks, essentially acting as a content multiplier that leverages the power of social networks.
The article also highlights the platform’s unique Blog Swipe feature, which allows Markethive members to give others permission to curate, edit, and republish their content. This collaborative approach is intended to foster a sense of community and collective growth. Users can set specific permissions for their articles, choosing to make them available to everyone in the community, friends, specific groups, or only themselves. This collaborative environment is designed to help new bloggers improve their skills while ensuring a steady stream of high-quality content for the entire network. Source
Thailand has selected KuCoin as the first international crypto exchange to be part of a consortium for its G-Token initiative, the world's first publicly offered tokenized government bond program. KuCoin's local, regulated arm in Thailand will handle subscriptions, redemptions, and listings for the initial 5 billion baht issuance, working alongside other partners. The exchange was chosen due to its strong regulatory presence and ability to form a strategic consortium with local partners, which positioned it as a trusted collaborator for the Ministry of Finance.
The G-Token initiative is designed to provide retail investors with easier access to sovereign debt, with the bonds initially listed on licensed domestic exchanges. While the program is seen as a potential template for other governments, challenges remain, including building regulatory confidence regarding security, AML/KYC compliance, and addressing liquidity issues in the secondary market. KuCoin aims to tackle these by facilitating listings on both domestic and potentially its global platform to connect liquidity and ensure seamless participation for public investors. Source
Analyst James Check argues that Bitcoin's market cycles are not primarily driven by the four-year halving events but rather by trends in adoption and market structure. He defines three distinct cycles: a retail-driven "adoption cycle" from 2011 to 2018, an "adolescence cycle" from 2018 to 2022 characterized by leverage-fuelled boom and bust, and a current "maturity cycle" from 2022 onward, which is being shaped by institutional participation and stability. Check believes that those who assume past patterns will repeat, based on the halving cycle theory, may miss the new signals driving the market.
Despite Check's analysis, the popular theory that Bitcoin's cycles are anchored by halvings remains prevalent, with bull market peaks historically occurring the year after a halving. Other analysts also suggest that the traditional four-year cycle may be ending due to new factors like institutional investment and macroeconomic liquidity dynamics, which could extend the current bull run. However, on-chain analytics firm Glassnode contends that Bitcoin's recent price action still aligns with its historical cycle patterns, noting that indicators like profit-taking suggest the market has entered a late phase of the cycle. Source
Webull Australia has launched cryptocurrency trading services in Australia, offering access to 240 different cryptocurrencies through a new partnership with Coinbase Prime. The move comes just days after the company relaunched its crypto offering in the United States, following a two-year withdrawal from that market in 2023. The CEO of Webull Australia stated that the addition of crypto is part of a mission to give investors more freedom to trade a wider range of assets.
The timing of Webull’s expansion into Australia is noteworthy as it follows growing concerns within the local crypto industry about the country falling behind global developments in the digital asset space. Webull has also announced that it plans to expand its crypto services into additional markets in the coming months, having already launched in Brazil earlier in the year. The company's CEO noted that the return to offering crypto in the U.S. was a "natural" move that aligns with customer expectations. Source
Bitwise Asset Management has filed an application with the U.S. Securities and Exchange Commission (SEC) to create the Bitwise Chainlink ETF, making it the first to file for a fund that tracks the native token of the crypto oracle platform. The proposed ETF would hold Chainlink's native token (LINK) and allow for in-kind creation and redemption, meaning investors could buy and sell shares using the token itself. The filing names Coinbase Custody as the custodian for the fund's assets. Following the news, the price of LINK saw a notable increase.
This filing is part of a broader trend of fund issuers seeking to launch new cryptocurrency ETFs beyond Bitcoin and Ether, which have seen a more favorable regulatory environment recently. Other recent filings include VanEck's bid for an ETF based on a liquid staking token and Grayscale's attempt to convert its Avalanche trust into an ETF. The flurry of new filings highlights the growing interest in bringing a wider variety of digital assets to mainstream investors through regulated financial products. Source
U.S. prosecutors have appealed the time served sentences of HashFlare co-founders Sergei Potapenko and Ivan Turõgin, who pleaded guilty to conspiracy to commit wire fraud in a $577 million Ponzi scheme. Despite the government arguing for a 10-year prison sentence, the judge instead sentenced the pair to time served, a $25,000 fine, and community service. The defendants had already spent 16 months in custody in their native Estonia before being extradited to the U.S. and were released on supervised release to be served there.
Lawyers for the HashFlare co-founders claimed that despite the scheme's fraudulent nature, victims ultimately received more than their initial investments due to the subsequent rise in crypto prices, and they would be fully repaid from over $400 million in forfeited assets. However, prosecutors alleged that the data used to support these claims was fabricated. This case highlights a broader concern among blockchain investigators and experts who believe that a lack of significant consequences for crypto criminals is contributing to the rise in crypto-related crime. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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