👮SEC Backs Down From Ripple Lawsuit
The SEC's long-running lawsuit against Ripple's executives is now over, with both sides agreeing to dismiss the charges. Per the agreement, Ripple and the SEC will now discuss suitable penalties for the $729M worth of XRP sales found to be unlawful during legal proceedings.
In other legal news, the New York Attorney General is suing Digital Currency Group, Gemini, and Genesis. The NYAG alleges the firms defrauded 230,000 investors out of more than $1B by falsely representing the Gemini Earn program as a low-risk investment opportunity.
Joe Lubin, the founder of Consensys, is also facing a lawsuit from 26 former employees who claim they were promised company equity that they never received. Consensys described the complaint as "frivolous."
Moderators for Reddit's r/CryptoCurrency subreddit are facing accusations of insider trading. Researchers identified that MOON, the native token of the r/CryptoCurrency subreddit, started plummeting one hour before Reddit publicly announced it would abandon its tokenized rewards campaign.
The Lido community is mulling a governance proposal advocating for the project to leave the Polygon ecosystem. The proposal cites lackluster revenue on the network and follows Lido's decision to exit Solana after failing to offset its operational costs.
And Lightning Labs has upgraded the Taproot protocol to facilitate the issuance of stablecoins and other innovative digital assets on the Bitcoin network.
✍️ In today’s newsletter:
- SEC walks away from Ripple lawsuit
- NYAG sues Gemini, Genesis, and DCG
- Former Consensys employees demand equity
- Reddit mods accused of insider trading
- Lido mulls Polygon exit
- Taproot upgrade paves way for stablecoins on Bitcoin
📈 Markets in last 24 hrs:
|S&P 500||$4,278||↙ -0.85%|
|Arch WEB3||0.72pts||↙ -1.21%|
|↳ FINANCE||0.73pts||↙ -1.37%|
|↳ INFRA||0.73pts||↙ -0.76%|
|↳ CONSUMER||0.78pts||↙ -1.64%|
Learn more about Arch Indices here.
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SEC Drops Securities Lawsuit Against Ripple Executives
TLDR The SEC has dropped its lawsuit against Ripple's brass after more than 30 months. The two sides will now discuss potential penalties for Ripple, with the judge presiding over the case ruling that the company illegally sold $729M worth of XRP to accredited investors.
SO WHAT The news comes after Judge Torres recently delivered major blows to the SEC's claims. In July, the court ruled that XRP does not inherently comprise a security even if it was sold via securities a contract, before rejecting the SEC's attempt to appeal the decision. XRP is up 7.5% in 24 hours.
New York AG Sues DCG, Genesis, and Gemini for Massive Investor Fraud
TLDR New York Attorney General Letitia James filed a lawsuit accusing Gemini, Genesis, and Digital Currency Group of defrauding 230,000 users out of $1B in assets. The lawsuit accuses the company of falsely claiming the Genesis Earn product offered low-risk returns while concealing the precarious state of its finances.
SO WHAT The lawsuit marks the latest chapter in the drama unfolding from last year's CeFi implosions, when major centralized lenders failed due to contagion risk triggered by Three Arrows Capital and FTX. The NYAG is seeking a permanent ban prohibiting Genesis, Gemini, and DCG from doing business in New York.
ConsenSys Founder Joe Lubin is Being Sued by Ex Employees in Equity Dispute
TLDR The founder of Consensys is facing a lawsuit in the United States from 26 former employees who claim they are owed equity in the company. The plaintiffs claim Lubin divested Consensys to transfer most of the firm's assets into the control of a new entity, leaving early employees holding shares in a less valuable entity.
SO WHAT Consensys denied the plaintiffs' claims, characterizing the lawsuit as a desperate final attempt at extracting assets from the company after an initial lawsuit struggled to make headway in Switzerland. Consensys is a major Ethereum development firm, with its product suite including the MetaMask wallet and the Infura infrastructure provider.
Investor Pro Tip: Are you checking for locked liquidity before buying a coin?
Investing in DeFi memecoins can feel like the wild west but seasoned investors have tricks to navigate the space comfortably. Professionals know to always check for locked liquidity before investing in a project - it’s a key step towards making cautious investments in DeFi! This is because tokens with locked liquidity (from a reputable 3rd party locker) have the inability to rug pull by draining the liquidity pool.
Projects with liquidity pools on UniSwap v2 or v3 are increasingly locking their liquidity because investors now expect them to, but also because it is a key step towards building a good relationship with their communities. Wouldn’t you feel better about investing in a token that has shown they believe in the longevity of their project?
Now if you yourself are a token project looking to increase your good reputation, attract more investors, and increase their trust in you, locking is key. Locking a majority of your liquidity is like getting a much needed safety badge. Learn more about locking with the most reputable lockers in the space here.
Reddit Mods Accused of Selling Subreddit Tokens With Inside Information
TLDR Moderators on the popular social media platform, Reddit, are facing accusations of insider trading. Analysts noted that MOON, the token of the r/CryptoCurrency subreddit, began dumping an hour prior to Reddit announcing it would abandon its Arbitrum-based tokenized rewards campaign.
SO WHAT Blockchain sleuths identified large MOON sales from wallets linked to Reddit moderation staff — two of whom have since become inactive. Reddit's move to abandon the program serves a blow to mainstream web3 adoption, with Reddit's r/Fortnite subreddit also receiving its own BRICK token.
Lido Token Holders Discuss Whether to Leave Polygon
TLDR Lido community is considering exiting the Polygon ecosystem. A post published to its governance forum cites poor revenue and uncertainty surrounding the roadmap for Polygon's 2.0 overhaul as motivations for leaving.
SO WHAT The post went online the same day that Lido governance approved a proposal to leave Solana that estimated the project lost $0.5M operating on the network.
Taproot Assets v0.3 Enables Issuance Of Stablecoins On Bitcoin Network
TLDR The newly released Taproot version 0.3 from Lightning Labs promises to pave the way for stablecoins and other web3 assets launching on the Bitcoin network. The developers claim Taproot's latest version will transform Bitcoin into a multi-asset network.
SO WHAT The news is the latest example of Bitcoin moving to embrace web3 assets initially pioneered on Ethereum. The recent BitVM proposal endeavors to facilitate Bitcoin-based smart contracts, and the launch of NFT-like Ordinals and BRC-20 tokens kicked off a brief Bitcoin-based memecoin trading frenzy earlier this year.