LianGuai Daily | Wormhole Completes $225 Million Financing at a Valuation of $2.5 Billion; Cryptocurrency Mixer Sinbad Hit with US Treasury Sanctions

LianGuai Daily | Wormhole Secures $225 Million in Financing at a Valuation of $2.5 Billion; Cryptocurrency Mixer Sinbad Faces US Treasury Sanctions

Top News Highlights for Today:

Cryptocurrency mixing service Sinbad sanctioned by US Treasury for alleged ties to North Korean hackers

Bloomberg analyst: BlackRock begins another meeting with US SEC, submitting revised physical model design for Bitcoin spot ETF

Grayscale updates GBTC protocol content for the first time since 2018, proposing adjustments to fees structure and asset custody

• Cathie Wood’s ARK Snags $1.5M SOFI Shares While SoFi Bids Farewell to Crypto
• Trust Wallet Encounters Bitcoin Node Issue: Hold Your Horses!
• Grayscale Bitcoin Trust (GBTC) Sets the Stage for a Bitcoin ETF Showdown

FTX gets approval to start selling $744 million worth of Grayscale and Bitwise assets

Robinhood plans to launch cryptocurrency trading in the EU within the next few weeks

Cross-chain protocol Wormhole raises $225 million at a $2.5 billion valuation and establishes Wormhole Labs

Total funding in the blockchain sector in November reaches $1.09 billion, a 96% increase compared to previous month

OpenAI: Microsoft joins the board of OpenAI as a “non-voting observer”

Regulatory News

Brazil passes new income tax rules, crypto earnings held on foreign exchanges could be subject to up to 15% tax

According to Cointelegraph, the Brazilian Senate passed new income tax rules on November 29, which could soon require Brazilian citizens to pay up to 15% tax on crypto earnings held on foreign exchanges. The bill has already passed the House of Representatives and is expected to receive the approval of President Luiz Inácio Lula da Silva’s, as it was his government that initiated the changes to the income tax rules.

Under the bill, Brazilian citizens earning over $1,200 (6,000 Brazilian reals) on foreign exchanges will be subject to this tax from January 1, 2024. However, income earned before December 31 of this year will continue to be taxed at the current rate of 8%.

Cryptocurrency mixing service Sinbad sanctioned by the US Department of the Treasury due to allegations involving North Korean hackers

According to CoinDesk, the US Department of the Treasury has blocked cryptocurrency mixing service Sinbad from the global US dollar financial system because the service supports transactions related to North Korean hacker organizations. Sinbad’s website has also been seized by the Federal Bureau of Investigation, the Dutch Financial Intelligence Investigation Service, the Dutch Public Prosecution Service, and the Finnish National Bureau of Investigation.

US Department of the Treasury seeks to expand its sanctioning power in the digital asset sector

According to Bloomberg, Wally Adeyemo, Deputy Secretary of the US Department of the Treasury, stated that the Biden administration is requesting Congress to consider the most severe reform of the Treasury’s sanctioning power since the 2001 terrorist attacks to help combat the use of digital assets in illicit finance. Adeyemo said, “We’re calling on Congress to establish a secondary sanction framework that will not only exclude a company from the US financial system, but it will also expose any company that continues to do business with sanctioned entities to be cut off from contact.”

Adeyemo stated that the Treasury provided Congress with a “series of commonsense recommendations on Tuesday to expand our powers, expand our tools and resources to go after illicit actors in the space of digital assets.”

Philippine regulatory agency takes action to block access to Binance platform

According to Bloomberg, the Philippine Securities and Exchange Commission (SEC) has asked Google and Meta to prohibit showing online ads for Binance to social media users in the Philippines. It also requested the National Telecommunications Commission and the Department of Information and Communications Technology to assist in blocking access to the Binance platform. The SEC stated, “We have to be responsible. Those acting as promoters, brokers, dealers, agents, representatives, endorsers, recruiters, influencers, endorsers, and pushers for Binance, attracting people to invest in their platform in the Philippines, even if done online, may be held criminally liable.”

NFT & AI

OpenAI: Microsoft to join OpenAI’s board as a “non-voting observer”

OpenAI CEO, Sam Altman, announced the company’s three immediate priorities: First, advancing research agendas and further investing in comprehensive safety efforts, which have always been at the core of the company’s work. Second, continuously improving and deploying products to serve customers. Altman emphasized the importance of allowing people to experience the benefits of AI and have the opportunity to shape it. Lastly, Bret Taylor, Larry Summers, and Adam D’Angelo will work on building a diverse perspective board, improving corporate governance, and overseeing an independent review of recent events. Altman expressed his excitement to build beneficial artificial general intelligence (AGI) alongside the world’s best team.

This blog post is once again being publicized. Sam Altman is returning to the company as CEO, while Mira will be returning to the position of CTO, and Greg Brockman will be assuming the role of President. The new board of directors will include Bret Taylor as Chairman, Larry Summers, and Adam D’Angelo. Microsoft will join the OpenAI board of directors as an “observer without voting rights.” Although Ilya will no longer be a board member, OpenAI is discussing how he can continue his work at OpenAI. OpenAI describes Ilya as a guiding light in this field and a treasure to humanity.

Project Updates

Swiss asset management company LianGuaindo Asset has submitted a Bitcoin spot ETF application to the US SEC

According to The Block, Swiss asset management company LianGuaindo Asset submitted a Bitcoin spot ETF application to the US Securities and Exchange Commission (SEC) on Wednesday. The S-1 form shows that the ETF will be traded on the Cboe BZX exchange, with Coinbase serving as the custodian. The Bitcoin pricing will be based on the CME’s CF Bitcoin Reference Rate. According to its website, LianGuaindo has already issued a cryptocurrency exchange-traded product (ETP) called “LianGuaindo Asset Crypto 6 ETP” on the Swiss stock exchange.

Bloomberg analyst: BlackRock meets with the US SEC again, submits revised Bitcoin spot ETF physical model design

Bloomberg analyst Eric Balchunas tweeted that BlackRock met with the US SEC’s Trading and Markets Division again yesterday and submitted a “revised” physical model design for a Bitcoin spot ETF based on the staff’s recommendations at the November 20 meeting. The presentation shows that the main change after the revision is in the fourth step, where an offshore entity market maker obtains Bitcoin from Coinbase and then pre-pays cash to a US-registered broker-dealer who is prohibited from touching Bitcoin.

In addition, Hashdex meets with the US SEC this week regarding Bitcoin spot ETF

Grayscale updates GBTC agreement content for the first time since 2018, proposes adjustments to fee structure and asset custody

According to CoinDesk, a document submitted on Wednesday shows that Grayscale has updated the GBTC agreement for the first time since 2018. The purpose is to optimize the GBTC structure in preparation for the expected listing of a Bitcoin spot ETF and to be in a favorable position when competing with asset management giants like BlackRock and other applicants. The updates to GBTC involve two proposed modifications to the trust agreement, which will be subject to shareholder voting thereafter. The first modification will allow management fees to be charged on a daily basis instead of monthly. The company spokesman stated that this is a structural adjustment rather than a fee reduction. Grayscale currently charges a 2% management fee for GBTC, while other Bitcoin spot ETF applicants charge management fees ranging from 0.7% to 1% according to an analyst report from Matrixport. The second modification will allow assets to be mixed in a commingled account, which is a core mechanism of ETFs and will facilitate the creation and redemption of shares. This is also an innovation of Coinbase Custody service. BlackRock’s iShares products and some other spot ETF applicants will also be using Coinbase Custody. The document states that these two content updates will not bring additional costs to Grayscale shareholders and are not necessary for conversion to an ETF. Shareholders have 20 days from the date of the application submission to vote on the proposed updates.

Binance’s newly appointed CEO says the executive team will “remain intact”

According to Bloomberg, Binance’s new CEO Richard Teng stated in an interview that he is not in a hurry to reshape the company’s leadership team after reaching a settlement with the US Department of Justice and the resignation of Changpeng Zhao. When asked about the role of Binance’s senior executive He Yi, Richard Teng said, “Our core team remains intact, and that’s important.”

Richard Teng also emphasized that the company’s “revenue and profits remain strong” and that the company has no debt in its capital structure, but did not disclose further details. He also refused to disclose when they would select a financial auditor.

Celsius: Eligible custodial users can make additional withdrawals starting today

Celsius announced on the X platform that eligible custodial users can make additional withdrawals starting today. Please note that currently the only assets available for withdrawal are certain custodial assets; all other cryptocurrencies are still unable to be withdrawn. It is highly recommended for users to withdraw these assets from the Celsius app and immediately obtain personal records of any information they may find useful, as the Celsius app will only be available for a limited time.

Sei Blockchain plans to add Ethereum Virtual Machine support in V2 upgrade

According to The Block, Sei Labs plans to add support for the Ethereum Virtual Machine (EVM) in the Sei V2 upgrade, allowing developers to port Ethereum-based contracts onto the network and use them. Sei Labs states that they have developed a specialized interface to facilitate the interaction between Sei’s existing smart contract components (based on CosmWasm technology) and the EVM components. CosmWasm is a custom Cosmos SDK module that allows smart contracts to run within the Cosmos ecosystem. With V2, the team will be able to effectively integrate EVM support into the Sei network.

Robinhood plans to offer cryptocurrency trading in the European Union in the coming weeks

According to Bloomberg, Robinhood Markets Inc. announced the launch of its commission-free stock trading app in the UK, marking its first entry into the international market. Robinhood plans to offer trading for over 6,000 US-listed stocks and securities and will expand its services to all users by 2024. The company also plans to start offering cryptocurrency trading in the European Union in the coming weeks. This move is part of Robinhood’s continued expansion of its digital asset and blockchain business, as the company has already been offering cryptocurrency trading services through its platform in the United States.

Digital asset investment platform Fasset obtains Dubai VASP operating license

According to CoinDesk, digital asset investment platform Fasset has obtained an operating license as a Virtual Asset Service Provider (VASP) in Dubai, allowing it to serve institutional, qualified, and retail investors.

Upbit to launch Bitcoin market trading pair for ID today

South Korean cryptocurrency exchange Upbit announced that it will launch a Bitcoin market trading pair for ID today at 6 p.m. local time (5 p.m. Beijing time). ID deposits will be supported within 3 hours after this notice is released. ID only supports deposits on the Ethereum network. SLianGuaice ID (ID) is a comprehensive Web3 domain name service platform that allows registration, trading, and management of various domain name services within the Web3 ecosystem.

Polkadot 2.0 Block Space as a Service expected to launch in Q2 2024

According to PolkaWorld, Polkadot 2.0 Block Space as a Service (BaaS) is expected to launch in the second quarter of 2024. The main change in 2.0 is the transition from parallel chain slot auctions to core time (Coretime) leasing. Lastic will provide a market for buying and selling block space.

Core time leasing offers a different resource management approach – bulk or on-demand sale of block space: 1. Bulk core time leasing provides stable and predictable resource allocation, where block space is purchased in continuous 28-day cycles and unused block space can be sold as NFTs in time slices. 2. On-demand core time leasing offers block space tailored to the needs of small projects, medium projects, dApps, smart contracts, and traditional enterprises. Initially, the price of BaaS will be relatively cheap, but it will naturally adapt to current demand. It’s a market that everyone can participate in. Currently, this new model is being tested on the Rococo testnet (Q4 2023), and will soon launch on Kusama (Q1 2024) and Polkadot (Q2 2024).

Lastic has already begun developing the Core Time Market. Lastic is currently designing a static model with simulated data to showcase user interactions on the future Core Time chain. Lastic has won funding in the 19th round of the Web3 Foundation’s Grant program, with the main objective of developing a user interface (UI) specifically designed for Polkadot BaaS.

FTX approved to start selling $744 million worth of Grayscale and Bitwise assets

According to Bloomberg, FTX Trading Ltd. has obtained approval from the bankruptcy court to start selling its shares in Grayscale Investments and Bitwise crypto trusts, raising funds to repay billions of dollars owed to debtors. Court documents show that FTX plans to sell these assets in a way that maximizes value and avoids disrupting the digital investment market. According to the court documents, as of last month, the shares held by FTX in the Grayscale and Bitwise trusts were worth approximately $744 million, with GBTC accounting for the highest proportion, worth around $597 million. Since FTX filed for bankruptcy last year, the company’s advisors have been trying to recover assets. To date, FTX executives have recovered approximately $7 billion in assets, including $3.4 billion in cryptocurrencies.

Hooked Protocol announces the launch of a $50 million educational ecosystem fund

Web3 social network Hooked Protocol announced on the X platform that, in order to kickstart the HOOKED 2.0 proposal, Hooked Protocol will launch a $50 million educational ecosystem fund and collaborate with educational institutions. The new education fund will leverage the HOOKED 2.0 ecosystem to explore learning innovations and underlying utilities of the HOOK token. It aims to integrate HOOK into online courses, allowing the token to be used for interactive on-chain and offline educational experiences. Through collaboration between Hooked Protocol and educational institutions, HOOK will facilitate the seamless transition of educational products onto the blockchain, advancing the crypto education space. The Hooked educational ecosystem fund will further enhance the HOOKED 2.0 ecosystem and play a crucial role in innovative educational initiatives and driving widespread adoption of the HOOK token.

Cyvers Alerts: Suspected addresses drained Nobitex hot wallets and received tokens worth approximately $12.5 million

Cyvers Alerts issued a warning stating that its system detected multiple suspicious transactions associated with the Iranian cryptocurrency exchange Nobitex. Two hot wallets of Nobitex were affected. The two suspected addresses drained the Nobitex hot wallets and received a total of approximately $12.5 million worth of digital assets. Cyvers Alerts has approached Nobitex to inquire whether these transactions are authorized trades or migrations.

Polygon secretly funded DraftKings with millions of dollars, but the latter was still kicked out of the network due to poor validator performance

In early 2022, Polygon Labs announced that sports betting company DraftKings would begin operating as one of its network validators; what Polygon did not disclose at the time was that it provided DraftKings with millions of dollars’ worth of MATIC tokens. On-chain data shows that DraftKings received millions of dollars in cryptocurrencies directly from Polygon when the “strategic blockchain protocol” began in October 2021. DraftKings then earned millions more through a special staking arrangement, a privilege that few other validators in the Polygon network enjoyed, and neither company disclosed these financial relationships. Representatives from Polygon and DraftKings declined to discuss the funding issue of validator transactions, citing confidentiality agreements. As one Polygon executive put it, DraftKings was not an “equal community member” among the 100 validators on the Polygon network. Blockchain data shows that it received significant rewards for “active participation in blockchain governance,” but subsequently failed to deliver on commitments, allowing its Polygon validator to deteriorate. On October 19th, due to poor performance of DraftKings’ validator, Polygon removed DraftKings from the validator program and reallocated its slot to the crypto exchange Upbit.

KyberSwap Hackers propose “acquire full control and all assets of Kyber company” settlement conditions

KyberSwap attackers have released a new message on the blockchain, proposing a series of settlement conditions, including full executive control over Kyber company, temporary complete control over KyberDAO’s governance mechanism to implement legislative changes, as well as demanding the turnover of all documents and information related to the company/protocol. Additionally, they demand Kyber company to surrender all on-chain and off-chain assets.

The attackers promise a series of compensatory measures for company executives, employees, token holders, and investors once their demands are met. These measures include providing fair valuation buyouts for executives, doubling employee salaries, providing 12 months of severance pay and comprehensive benefits for employees who choose not to stay, and guaranteeing the value of investor tokens. The attackers emphasize that if their demands are not met by December 10th or if they face any contact from agents of any sovereign nation, the settlement agreement will be considered void.

Funding News

Cross-chain protocol Wormhole raises $225 million at a valuation of $2.5 billion and establishes Wormhole Labs

According to Fortune magazine, cross-chain protocol Wormhole has announced a $225 million funding round at a valuation of $2.5 billion, making it the largest cryptocurrency project funding of 2023. This funding round had no lead investor, with participants including Brevan Howard, Coinbase Ventures, Multicoin Capital, LianGuairaFi, Dialectic, Borderless Capital, Arrington Capital, and Jump Trading. Wormhole Labs CEO Saeed Badreg stated that technically, this is the company’s first funding round, while high-frequency trading firm Jump Trading’s cryptocurrency division, Jump Crypto, has been incubating the project for several years. Badreg mentioned that the equity of these investors will be fully constituted by token subscription rights, rather than company shares, and he declined to comment on the name of the Wormhole token or its launch date (which has not been reported before).

In addition, the team behind Wormhole has announced the establishment of a new company, Wormhole Labs, which will assist in the development of the protocol. Badreg refused to disclose how the $225 million will be allocated between Wormhole Labs and Wormhole Foundation, another entity established in 2021 to encourage developers to use the protocol.

Important Data

Coinbase CEO: Met with SEC 30 times in the past 18 months, but received no real feedback

According to Decrypt, Coinbase CEO Brian Armstrong stated in an interview that despite the company’s attempts to seek clarification from the U.S. Securities and Exchange Commission (SEC), they have still faced criticism from the SEC. Armstrong said that over the past 18 months, Coinbase has had 30 meetings with the SEC, but apart from Bitcoin, they have yet to receive any feedback from the SEC regarding which assets are securities and which are not. The “enforcement regulation” environment and lack of clear guidance have prompted Coinbase to expand its business outside the United States.

Suspicious address starting with 0x865 withdrew approximately $ 36,590,000 from Binance in various assets in the past 18 hours

Spot On Chain monitoring shows that a suspicious whale address starting with 0x865 withdrew approximately $36,590,000 worth of various assets from Binance in the past 18 hours, including: 10,000 Ethereum (ETH) worth approximately $20,300,000; 45,000 Binance Coin (BNB) worth approximately $10,200,000; 300 billion SHIB coin worth approximately $2,470,000; 260 million IOST worth approximately $2,400,000; 16 million CHZ worth approximately $1,180,000. It is worth noting that this whale address was created 175 days ago on June 8, 2023, but only now has it accumulated such a large number of tokens. Currently, the whale holds various assets worth approximately $38,200,000.

A dormant Bitcoin whale that has been inactive for nearly 4 years transfers all of its 3,623 Bitcoins, profit approximately $112 million

A Bitcoin whale that has been inactive for approximately 4 years transferred all of its 3,623 Bitcoins (BTC) worth approximately $136.94 million to two new wallets just 1 hour ago. This whale accumulated 3,623 Bitcoins between October 25, 2018, and December 31, 2019, which were worth approximately $24.96 million at the time, with an average purchase price of approximately $6,889 per Bitcoin. Based on the current price, the profit from this transaction is approximately $112 million.

Data: 100,000 ETH transferred from Coincheck to unknown wallet, worth over $200 million

WhaleAlert monitoring shows that at 15:56 Beijing time, 100,000 ETH ($203,290,251) was transferred from Coincheck to an unknown wallet.

A new address has accumulated 10,796 BTC since November 28, becoming the 71st largest BTC holder

According to The Data Nerd monitoring, a new whale address starting with “157hv” has accumulated a total of 10,796 BTC (approximately $401 million) since November 28, with an average price of $37,208. Currently, it ranks as the 71st largest holder of BTC, with an unrealized profit of $11.2 million.

Total funding in the blockchain sector reached $1.09 billion in November, a 96% increase compared to the previous month

According to data published by The Block research director twan on X platform, total venture capital funding in the blockchain sector increased by 96% compared to the previous month, reaching a 6-month high. Based on chart data, the total funding in the blockchain sector since November is $1.09 billion, with the infrastructure sector having the highest proportion at $413 million, accounting for 37.9%.

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