Crypto News Roundup: August 3, 2023 👀

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3 Aug 2023

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Welcome to Crypto News Roundup Today, where I bring you the latest and most exciting stories from the world of cryptocurrencies. In this edition, I cover:

A lawsuit that challenges the origin story of MetaMask, a popular Ethereum wallet
A milestone for HashKey Exchange, the first crypto platform in Hong Kong to receive a license for retail trading
A celebration for Litecoin, which completed its third halving event and saw increased adoption
A dilemma for US prosecutors, who worry that charging Binance with fraud could trigger a run on the exchange

Read on to find out more!

MetaMask Faces Lawsuit Over Alleged Idea Theft 🧐

MetaMask, one of the most widely used Ethereum wallets and browsers, is facing a lawsuit from Joel Dietz, an entrepreneur who claims to have conceived the idea of an in-browser crypto wallet back in 2015.

Dietz alleges that he hired Aaron Davis, the founder of MetaMask, to help him code his project called Vapor, but Davis betrayed him and conspired with ConsenSys, a leading Ethereum development firm, to create MetaMask instead.

Dietz is seeking damages for breach of contract, fraud, unjust enrichment, and misappropriation of trade secrets. He also wants to be recognized as a co-founder of MetaMask and receive a share of its profits.

ConsenSys has denied the allegations, calling them “frivolous” and “false”. The company said that Dietz has no relation to MetaMask or its technology and that it looks forward to the court dismissing his claims.

MetaMask is a popular tool for accessing decentralized applications (dApps) on the Ethereum network. It has over 10 million monthly active users and supports various features such as token swaps, hardware wallets, and custom networks.

Source: CoinDesk

HashKey Exchange Becomes First Licensed Crypto Platform in Hong Kong 📃

HashKey Exchange, a crypto financial services group based in Asia, has announced that it has received approval from the Securities and Futures Commission of Hong Kong (SFC) to operate a virtual asset trading platform under a Type 1 (Dealing in securities) license and a Type 7 (Providing automated trading services) license. This makes it the first crypto exchange in Hong Kong to obtain a license that allows it to offer services to both professional and retail customers.

The approval comes only two months after Hong Kong launched its new Virtual Asset Service Provider (VASP) licensing regime on June 1, which aims to regulate crypto exchanges and foster a digital asset hub in the city. Under the new rules, crypto exchanges must comply with strict requirements such as risk assessments, insurance cover, asset custody, anti-money laundering, and investor protection.

HashKey Exchange said that it has partnered with Standard Chartered Bank to provide fiat currency deposit and withdrawal services. It also launched its virtual asset over-the-counter (OTC) trading service for institutional clients.

HashKey Exchange is part of HashKey Group, which operates in various areas of the crypto industry such as venture funding, asset management, and trading. The group was reportedly in talks to raise $100 million to $200 million at a valuation above $1 billion in May.

Source: The Block

Litecoin Halving Completes as LTC Sees Increased Payments Adoption 🤩

Litecoin (LTC), one of the oldest and most recognized cryptocurrencies, has successfully completed its third halving event on August 2, 2023. This means that the block reward that miners receive for validating transactions has been reduced by half, from 12.5 LTC to 6.25 LTC. This will lower the supply of new LTC entering the market, which could lead to an increase in price.

Halving is a mechanism that is programmed into Litecoin’s code to control its distribution and eventually cap its total supply at 84 million coins. Halving occurs every four years or every 840,000 blocks on Litecoin’s network. The next halving is expected to take place on May 11, 2027.

Litecoin was created in 2011 as a fork of Bitcoin with faster transaction speeds and lower fees. It is often considered as the silver to Bitcoin’s gold. Litecoin has seen increased adoption as a payment method in recent years, with platforms such as PayPal, Venmo, and Flexa supporting it. Litecoin founder Charlie Lee and his brother Bobby Lee have also created 500 collectible cards made of 99.9% pure silver to commemorate the blockchain’s third halving.

Source: CoinTelegraph

U.S. Prosecutors Worry Binance Charges Could Cause Run on Exchange ❗️

According to a report by Semafor, the U.S. Department of Justice (DOJ) is planning to charge Binance, the world’s largest crypto exchange by trading volume, with fraud, but hesitating due to concerns about the costs to consumers. Specifically, federal prosecutors are worried about a potential run on Binance if they indict the exchange. They fear it would cause consumers to lose their money and potentially spark a panic in the crypto markets, similar to the one that befell FTX, a now bankrupt platform that was charged with fraud in 2022.

The report said that the DOJ is weighing alternatives such as fines and deferred or non-prosecution agreements. Binance has not commented on the report, but has previously denied any wrongdoing and said that it cooperates with regulators.

Binance has been under scrutiny from various authorities around the world for its compliance issues. The exchange has faced investigations, warnings, and restrictions from regulators in countries such as the U.S., the U.K., Japan, Germany, Singapore, and Canada. Binance has also scaled back some of its services, such as derivatives trading and stock tokens, in response to the regulatory pressure.

Source: Semafor

Australian Financial Watchdog Takes eToro to Court Over High-Risk Trading Products ⚖️

eToro, a social investing platform that offers various financial products such as stocks, commodities, currencies, and crypto, is facing a lawsuit from the Australian Securities and Investments Commission (ASIC), the country’s financial regulator. The lawsuit accuses eToro of breaching its “design and distribution obligations” and its licence obligations to act “efficiently, honestly and fairly”.

The lawsuit pertains to eToro’s contract for difference (CFD) product, which is a leveraged derivative contract that allows a client to speculate on the change in the value of an underlying asset such as crypto. CFDs are considered high-risk trading products that can result in significant losses for investors.

ASIC alleges that eToro failed to properly assess the target market for its CFD product and did not provide adequate information or warnings to its clients about the risks and costs involved. ASIC also claims that eToro misled its clients by using terms such as “zero commission” and “no fees” when in fact it charged fees through spreads and overnight fees.

eToro has not commented on the lawsuit, but has previously said that it complies with all regulatory requirements in Australia and other jurisdictions where it operates. eToro has over 23 million registered users worldwide and offers various features such as copy trading, social trading, and staking.

Source: Decrypt

Conclusion 🙏

That’s all for today’s Crypto News Roundup Today. I hope you enjoyed reading my summaries and learned something new about the crypto space. Stay tuned for more updates and insights from me. And don’t forget to share this article with your friends and family who are interested in crypto!

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