GM fellow Asterials. [Witty comment]

It’s [day] people lets get right to it🔥

• ⚖️ SEC sues Coinbase

SEC sues Coinbase

In recent news, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase.

The SEC alleges that Coinbase offered and sold unregistered securities through its staking services, which allow users to earn rewards on their crypto holdings.

According to the SEC, Coinbase permitted the trading of crypto assets that fall under the category of securities without complying with the necessary regulations.

The SEC's lawsuit claims that Coinbase prioritised its profits over the interests of investors and failed to uphold the required level of compliance with securities regulations.

It is worth noting that Coinbase had previously received a Wells Notice from the SEC, which served as a warning of an impending enforcement action.

This lawsuit by the SEC against Coinbase follows a similar regulatory action taken against another major cryptocurrency exchange, Binance, which involved comparable charges and addressed U.S. investors' access to Binance.com.

Twitter has not taken this too lightly as the SEC has become somewhat of a joke towards the industry by not providing clear guidance to crypto firms on how to operate.

I guess just sue them all right Gary?

Atomic wallet hack linked to North Korea

The cryptocurrency community was recently shaken by the news of a security breach that targeted Atomic Wallet, resulting in the theft of approximately $35 million.

In this incident, the stolen funds are reported to be undergoing a process of conversion into Bitcoin (BTC) and laundering through the Sinbad coin mixing service, which allows for the obfuscation of the origin and destination of funds.

Notably, security analysts from Elliptic Connect have traced the stolen crypto from the hack to the infamous Lazarus group, a state-sponsored hacking group based in North Korea.

Lazarus has been involved in numerous high-profile crypto hacks and is estimated to have laundered over $100 million using Sinbad. Their track record in the crypto industry is particularly alarming, with reports suggesting that they have stolen a staggering $1.2 billion.

Yes, I know. Thats a lot.

By mixing the stolen funds with legitimate transactions, these mixers make it challenging to trace the flow of illicitly obtained assets. Sinbad itself is a clone of the sanctioned mixer known as Blender.

The impact of the Atomic Wallet hack extends beyond the monetary losses. Approximately 1% of Atomic Wallet's user base, which amounts to around 5 million individuals, was affected by the breach.

Atomic Wallet is actively investigating the security breach to identify the root cause and prevent future incidents. While the investigation is ongoing, it is crucial for unaffected users to remain cautious and take necessary precautions to ensure the safety of their funds.

Atomic Wallet has not yet determined the exact cause of the hack but is working diligently to address the situation and protect its users.

Was suing Binance a mistake? Or not?

In a significant development, the U.S. Securities and Exchange Commission (SEC) has filed 13 charges against Binance, alleging violations of federal securities laws.

This legal action by the SEC raises concerns and has prompted discussions about the impact on the crypto industry and the need for regulatory clarity.

Jim Bianco, the president and founder of Bianco Research, offers a contrasting perspective, suggesting that the SEC's lawsuit against Binance may be a mistake if other countries provide a more conducive environment for crypto industry growth and potentially replace traditional banking systems.

On the other hand, Aaron Kaplan, co-CEO and co-founder of Prometheum Inc, sees the SEC's action as a signal for the gradual shift towards regulated market infrastructure for cryptocurrencies.

Kaplan believes that such a shift, while initially challenging, could ultimately benefit the industry and foster long-term innovation.

The lack of regulatory clarity in the United States has been a growing concern, causing some digital asset ventures to relocate to more crypto-friendly jurisdictions.

Richard Mico, CEO and Chief Legal Officer of Banxa, emphasises that this trend could result in a loss of jobs and innovation domestically.

This further underscores the urgent need for clear and comprehensive regulations to foster growth and innovation within the U.S. crypto industry.

Experts with a favourable view of the SEC's lawsuit against Binance argue that the action is warranted and long overdue. They express concerns about the exchange's alleged lack of operational transparency and limited accessibility to high-ranking executives.

For them, the lawsuit represents a necessary step in addressing these issues and ensuring a more accountable and transparent crypto ecosystem.

As the legal proceedings unfold, it is crucial to closely monitor the developments surrounding the SEC's lawsuit against Binance and its potential impact on the broader crypto industry.

The outcome of this case could have significant implications for regulatory frameworks, market participants, and the future direction of the crypto industry.

Bitcoin and Ethereum has both dropped by 3-4% after Coinbase and Binance announcements and relatively holding up pretty well despite the situation that is happening.

Let’s see where these cases would take us.

✨Bonus News✨

• Explosion of a Dam destroys power plant and many homes. Ukraine and NATO blames Russia for the attack.

• Is Augmented reality (AR) about to become a thing? Apple releases their VisionPro.

• Prince Harry’s testimony in court. The prince is standing up to the British media.

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.