Paxos Charges Astonishing $500K Bitcoin Fee while FTX Tokens Launches Awaited Sales: Weekly Crypto Highlights

Paxos to Recover $500K Bitcoin Transaction Fee Error

Blockchain infrastructure firm Paxos has confirmed its responsibility in paying a $500,000 Bitcoin transaction fee, which was received by a Bitcoin miner. The miner has since returned the funds to Paxos after the company claimed it made an error in the payment. On September 10th, Paxos paid the six-figure fee to transfer $2,000, whereas the average network fee is typically around $2. After acknowledging their mistake, Paxos confirmed that the transfer came from its servers. The Bitcoin miner expressed frustration on social media before agreeing to refund the amount, and the funds were returned on September 15th.

FTX Digital Asset Sales Approved by Bankruptcy Court

A bankruptcy court has approved the sale of FTX digital assets in weekly batches through an investment adviser, following preestablished guidelines. The sale will exclude Bitcoin, Ether, and “certain insider-affiliated tokens,” which can be sold separately if FTX provides ten days’ notice. The sales are not expected to have a significant impact on the markets. The bankrupt exchange holds $833 million worth of Bitcoin and Ether, with a total of $3.4 billion held in the top 10 assets, including Solana, Bitcoin, Ether, Aptos, and others.

DCG Proposes Remuneration Scheme for Genesis Global Creditors

Digital Currency Group (DCG) has proposed a new agreement plan for the creditors of bankrupt Genesis Global. The plan estimates that unsecured creditors will recover “a 70-90% recovery with a meaningful portion of the recovery in digital currencies.” The agreement also states that Gemini Earn users could receive a projected recovery of “approximately 95-110%” without any contribution from Gemini. If Gemini were to provide $100 million as it had previously done, Gemini Earn users would receive more than a full recovery. The proposal aims to provide a high level of recovery for all parties involved.

Franklin Templeton Applies to Launch Spot Bitcoin ETF

Asset manager Franklin Templeton has applied with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). The proposed ETF would be structured as a trust, with Coinbase acting as the custodian for Bitcoin and The Bank of New York Mellon serving as the cash custodian and administrator. Franklin Templeton manages $1.5 trillion in assets and joins a growing list of asset managers waiting for regulatory approval for spot ETFs. The SEC recently delayed decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco.

Executives Depart Binance.US Amid Layoffs and SEC Action

Several top executives have departed from Binance.US, the U.S. offshoot of cryptocurrency exchange Binance. The departures, which include the CEO, legal head, and chief risk officer, are believed to be connected to the ongoing investigation into Binance and Binance.US by the U.S. Securities and Exchange Commission (SEC). The SEC sued Binance.US, Binance, and CEO Changpeng Zhao in June for alleged unregistered securities operations and other improprieties. The agency’s request to file sealed documents in the case has fueled speculation about a potential criminal probe by the U.S. Department of Justice.

Crypto Market Performance

At the end of the week, Bitcoin (BTC) is valued at $26,465, while Ether (ETH) stands at $1,628 and XRP at $0.50. The total market cap is $1.05 trillion, according to CoinMarketCap. Among the top 100 cryptocurrencies, the biggest gainers of the week are Toncoin (TON) at 21.30%, VeChain (VET) at 11.94%, and Bitcoin Cash (BCH) at 11.36%. The biggest losers of the week are ApeCoin (APE) at -16.82%, Astar (ASTR) at 14.47%, and Flare (FLR) at 12.61%. For more information on crypto prices, refer to market analysis from trusted sources.

Quotes:

“I think my generation and younger than me are the ones that are really going to change that narrative for investing, whether it’s in cryptocurrency or other investments moving forward.” – Scotty James, Australian snowboarder

“The only country I would not encourage you to start a company right now is in the U.S.” – Brad Garlinghouse, CEO of Ripple

“We’re still in the fax era of global payments.” – David Marcus, former PayPal executive and co-founder of Lightspark

“I don’t think everybody in D.C. actually fully realizes how powerful the crypto voting community block is.” – Brian Armstrong, CEO of Coinbase

“You cannot get 100% transparency and 100% privacy.” – Alex Svanevik, CEO of Nansen

“Climate change is still a systemic threat to our species. I think as a society, we kind of owe it to ourselves to do anything that we can.” – Marek Olszewski, CEO of Celo

Bitcoin Price Prediction Indicates New All-Time High Before 2024 Halving

According to a price prediction by BitQuant, a popular social media commentator, Bitcoin is expected to reach a new all-time high before the 2024 halving. The commentator, who goes by the pseudonym “central banker and Bitcoiner,” predicts a target above $69,000 before the halving. They also stated that BTC will not reach $160,000 as the magnitude of each pullback is significant. Instead, they believe the peak will occur after the halving in 2024, with a target price of around $250,000.

Stoner Cats NFT Series Faces SEC Charges

Stoner Cats 2 LLC, the company behind the Stoner Cats animated web series, has been charged by the U.S. Securities and Exchange Commission (SEC) for conducting an unregistered offering of crypto-asset securities in the form of nonfungible tokens (NFTs). The SEC alleges that the company sold over 10,000 NFTs for approximately $800 each, with the proceeds being used to fund the series. Stoner Cats 2 LLC has agreed to a cease-and-desist order and will pay a civil penalty of $1 million.

OneCoin Co-Founder Receives 20-Year Jail Sentence for Fraud

Karl Greenwood, co-founder of OneCoin along with Ruja Ignatova, has been sentenced to 20 years in prison and ordered to pay $300 million for his role in the OneCoin fraud scheme. Ignatova, who remains at large, is on the U.S. Federal Bureau of Investigation’s Ten Most Wanted List. OneCoin is described as “one of the largest fraud schemes ever perpetrated,” having amassed $4 billion from 3.5 million victims.

Lazarus Group Identified as Culprit Behind CoinEx Hack

Blockchain security firm SlowMist and on-chain investigator ZachXBT have identified the Lazarus Group, a North Korean hacker group, as responsible for the recent hack on crypto exchange CoinEx. The hack resulted in the theft of at least $55 million. The identification of the hacker group was made after they inadvertently exposed their address, which was the same one used in previous hacks. CoinEx noticed large outflows of funds to the address without any previous history, leading to suspicion of a breach.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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