LianGuai Morning Post | 3 more people arrested in JPEX case, bringing the total number of arrests to 15.

LianGuai Morning Post | 3 additional arrests in JPEX case, totaling 15.

Headline

▌3 More Arrested in the JPEX Case, Bringing Total Arrests to 15

Three more individuals have been arrested in the JPEX virtual asset trading platform fraud case, bringing the total number of arrests to 15. The arrested individuals include a female employee from Unicoin, an over-the-counter exchange shop, a 29-year-old social media influencer known as “Xiangxiang,” and a 23-year-old male responsible for another over-the-counter exchange shop called Lupin.

The police stated that as of 5 pm, they have received reports from 2,407 victims, involving approximately 1.499 billion yuan. They do not rule out the possibility of more arrests and will continue to contact individuals involved in the case for assistance in the investigation.

• SeeDAO White Paper Digital City-State
• JPEX bankruptcy, Hong Kong SFC plans to issue a blacklist for virtual asset exchanges.
• Crypto Security Differences Between Hacker Attacks and Fraud

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Market Update

As of the time of writing, according to coinmarketcap data:

The recent trading price of BTC is $26,381.3, with a daily change of +0.31%;

The recent trading price of ETH is $1,598.8, with a daily change of -0.19%;

The recent trading price of BNB is $212.04, with a daily change of -0.12%;

The recent trading price of XRP is $0.4990, with a daily change of -0.51%;

The recent trading price of DOGE is $0.0605, with a daily change of -0.20%;

The recent trading price of ADA is $0.2446, with a daily change of +0.20%;

The recent trading price of SOL is $19.13, with a daily change of +0.97%.

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Policy

▌US Department of Justice Opposes “Temporary Release” of SBF

In a court filing submitted on September 28, the US Department of Justice stated that the latest proposal for the temporary release of Sam Bankman-Fried, even with strict restrictions, should be denied. SBF’s lawyer requested the release of SBF and agreed to be supervised outside the court and be prohibited from using any electronic devices such as laptops or mobile phones.

The US Department of Justice stated that the proposed conditions do not meet the legal requirements for the defendant, and the filing stated, “Based on the record confirmed by the circuit court, the general inconvenience claimed by the defendant regarding detention is no match for the danger posed by his release.”

Judge Lewis Kaplan has scheduled a hearing to discuss this matter on Thursday at 10:00 am Eastern Time.

▌SEC Begins Considering Cryptocurrency ETF Applications from Franklin Templeton and Hashdex

According to Bloomberg analyst James Seyffart’s tweet, the US Securities and Exchange Commission (SEC) has acknowledged the filing of a Bitcoin ETF by CBOE and Franklin Templeton, as well as an Ethereum ETF filing by Hashdex. This indicates that the SEC has begun considering these two ETF applications.

The analyst stated that it typically takes about 1-2 weeks from submission of the 19b-4 to SEC acknowledgment, but Franklin Templeton only submitted the 19b-4 document yesterday, possibly due to concerns about a potential US government shutdown.

▌SEC Chairman: Cryptocurrencies are not currencies and do not fulfill the three functions of currency

During a hearing on Wednesday, US Congressman Al Green asked SEC Chairman Gary Gensler if he believed that the US could have a regulated digital currency.

Gensler responded, “I think the dollar is quite strong, and we have been using it as a form of digital dollar. Cryptocurrencies are different; they are not currencies and do not fulfill the three functions of currency: store of value, unit of account, or medium of exchange. Perhaps they will fulfill these functions someday, but honestly, that won’t happen in 2023.”

▌Terraform Labs Founder Do Kwon Opposes SEC’s Extradition Request

A court document shows that Terraform Labs founder Do Kwon has requested that the federal court reject the SEC’s request to question him in the US regarding the collapse of Terra and Luna.

The document states that Do Kwon’s lawyers oppose any opportunity for Do Kwon to provide testimony to US regulatory agencies. The lawyers argue that it is “impossible” to bring Do Kwon to the US as he remains indefinitely detained in Montenegro. They also argue that Do Kwon cannot provide written testimony to the SEC as it would violate his due process rights under US law.

It is reported that the SEC requested the court to allow questioning of Kwon regarding the Terra/Luna collapse issue before the trial deadline of October 13.

▌SEC Delays Decision Date for ARK 21Shares and VanEck Ethereum ETFs to December

The US Securities and Exchange Commission (SEC) has stated in new filings that it will postpone its decision on the proposed ARK 21Shares Ethereum ETF, with a new decision deadline set for December 26. It has also decided to delay the decision date for the VanEck Ethereum ETF to at least December 25.

Earlier, LianGuai reported that the SEC had postponed its decision on the proposed ARK 21Shares Bitcoin ETF to January 10 next year.

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Blockchain Applications

▌IBM, Microsoft, and other companies establish Post-Quantum Cryptography Alliance

IBM Quantum and Microsoft have formed an alliance with non-profit research organization MITRE, UK-based cryptography company PQShield, Google sibling company SandboxAQ, and the University of Waterloo to collectively address post-quantum cryptography challenges. Post-quantum cryptography (PQC) addresses the potential threats posed by future quantum computers. Current cryptographic schemes rely on mathematical problems to prevent decryption attempts. According to the press release, preparations for the transition to PQC include the development of algorithm standards, the creation of secure, reliable, and efficient implementations of these algorithms, and the integration of new post-quantum algorithms into cryptographic libraries and protocols.

▌Ethereum Relayer Count Drops to 4, Raises Centralization Concerns

After Blocknative decided to stop its MEV-boost relayer earlier this week, as of the time of writing, there are only four relayers active on the Ethereum network. Over 90% of Ethereum transactions are now processed by four block producers, raising concerns about centralization.

According to the data compiled on mevboost.pics, 93% of the Ethereum blocks created in the past 14 days have used MEV-boost. Data from relayscan.io shows that before Blocknative stopped its MEV-boost, five entities were responsible for relaying 98% of the MEV boost transactions. Elias Simos, CEO of Ethereum data platform Rated, expressed conflicting feelings about Ethereum’s continued reliance on its four major relayers.

▌Data: Over 52 million compressed NFTs minted on Solana

Austin Federa, Strategic Lead at the Solana Foundation, tweeted that users have minted over 52 million compressed NFTs on Solana, doubling the number of holders in just six months. The compression is not only related to NFTs, but the entire ecosystem’s engineers have designed it to be used with accounts.

▌Chainlink CEO: Most cross-chain bridges are “absolutely insecure”

Chainlink CEO Sergey Nazarov stated that most cross-chain bridges are “absolutely insecure.” Nazarov explained that decentralized infrastructure for bridges is particularly difficult. This is because, unlike forked blockchains, developers cannot benefit from the inventions of security research, as the bridge itself is not a blockchain-based system.

He said, “They are a new invention, and so far, no one has invented a secure bridging method. Most bridges are single servers that transmit information and value between two chains, which is absolutely insecure.” As an alternative, Nazarov envisioned a cross-chain communication platform that would be operated by multiple independent networks that can dynamically respond to risks.

▌Infura: Starknet Goerli 2 testnet to be deprecated on October 2nd

Blockchain development toolkit Infura announced on X platform (formerly known as Twitter) that the Starknet Goerli 2 testnet will be deprecated on October 2nd. Starknet developers are advised to update the configuration files or variables of their services or dapps to use the Starknet Goerli API endpoints on the Infura dashboard.

▌Monad releases documentation on proof-of-stake blockchain, reveals token name as “mon”

Monad Labs has released the technical documentation for its upcoming proof-of-stake blockchain, which details that its native token will be named “mon.” However, the token name was later removed from the document for unspecified reasons.

Monad is a blockchain compatible with the Ethereum Virtual Machine (EVM), capable of processing up to 10,000 transactions per second with a block time of one second. It claims to have optimized Ethereum’s workings to provide greater throughput. The document states, “Monad greatly enhances the performance of EVM-compatible blockchain networks, introduces multiple innovations, and is expected to become the standard for Ethereum in the coming years.” Users of the Monad blockchain will use the mon token to pay for transactions to be included in blocks and transactions to be executed.

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Cryptocurrency

▌Bloomberg: Kraken Plans to Launch Stock and ETF Trading Services in 2024

Bloomberg Law reported, citing sources familiar with the matter, that cryptocurrency exchange Kraken plans to launch stock and ETF trading services in 2024. The company will offer trading of stocks listed in the United States and exchange-traded funds, marking its first foray into the crypto field.

An anonymous source revealed that Kraken will initially offer the service in the United States and the United Kingdom through a new department called Kraken Securities. The source stated that the company has obtained the necessary regulatory licenses in the UK and has applied for a broker-dealer license from the US Financial Industry Regulatory Authority. The company aims to launch the new service in 2024.

▌Data: Texas Accounts for 28.5% of Bitcoin Hashrate in the US

According to the latest hashrate map by Foundry, Texas accounts for 28.5% of the total Bitcoin hashrate in the United States, followed by Georgia at 9.64%, New York at 8.75%, and New Hampshire at 5.33%. The data was extracted between July 21 and 27, 2023, during which Texas faced power outages. The report suggests that the actual hashrate in Texas may be higher than reported on the map.

Foundry stated that the global Bitcoin hashrate has reached 400 EH/s by July 2023, almost double the figure at the end of 2021, which was 174 EH/s.

▌Industry Executives: Chase UK’s Anti-Crypto Measures “Absurd” but “Not a Big Deal”

Several industry executives interviewed by Blockworks stated that Chase UK’s decision to ban customers from cryptocurrency trading is “not a big deal.”

Jesper Johansen, founder and CEO of cryptocurrency service provider Northstake, called the decision “absurd” and contradictory to both the country’s crypto policy goals and the efforts of its parent company. Johansen stated that the ban contradicts the UK government’s established policy goal of creating favorable conditions and a supportive environment for crypto companies to establish and expand their services. Additionally, the ban contradicts JPMorgan’s ambitions to expand its bank-led blockchain platform and JPM Coin.

CasLianGuair Sauter, co-founder of decentralized exchange D8X, pointed out that while Chase UK’s actions follow the trend in the banking industry, they “stand in stark contrast” to practices in other European regions. It is expected that most European banks will accept digital asset banking services in the coming years.

▌CoinShares Research Director: Bitcoin and Stock Correlation to Continue Diverging in the Coming Months

CoinShares research director James Butterfill told The Block in an interview that as the idea of “long-term rate hikes” by the Federal Reserve becomes more popular, the correlation between Bitcoin and stocks is starting to diverge.

He said, “A prolonged period of higher rates may benefit Bitcoin but not stocks, leading to continued pressure on corporate profit margins.”

James Butterfill added that the current situation will “result in further divergence between Bitcoin and stocks in the coming months, or even within a year.”

▌Data: About 70% of Bitcoin has not moved in the past 365 days

Data released by Unchained shows that about 70% of Bitcoin has not moved in the past 365 days. Historically, when investor enthusiasm for Bitcoin trading diminishes, the Bitcoin bear market ends, leaving only strong holders, and the price begins to slowly rise from recent lows. Bitcoin has risen 73% from its low point in 2022.

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Important Economic Developments

▌CBOT soybeans rise as adverse weather affects harvesting in production areas

According to foreign media reports, CBOT soybean futures closed slightly higher on Wednesday due to anticipated rain in some major soybean-producing regions, which is unfavorable for soybean harvesting. The latest 72-hour accumulated precipitation map released by the National Oceanic and Atmospheric Administration (NOAA) shows that rain is expected in parts of the Ohio Valley, Minnesota, and Iowa from Thursday to next week, although most of the corn-growing regions will remain dry later this week. (Jinshi Data APP)

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LianGuai Encyclopedia

▌What do we mean by “institutions entering cryptocurrency”?

We are currently in the season of cryptocurrency conferences in the United States. It is therefore expected that discussions on “institutional influx” or “what we need for institutional adoption” will be widespread. The fundamental issue is that in the United States, the term “institution” often encompasses too much. Institutions can actually include: large-scale asset owners (pension funds, endowments, foundations); asset management companies (such as Fidelity, Van Eck, Franklin Templeton, BlackRock, etc.); banks (JPMorgan Chase, Goldman Sachs, Morgan Stanley, etc.); corporations (actually enterprises, not real institutions); and smaller-scale asset owners (family offices, high-net-worth individuals).

Disclaimer: As a blockchain news platform, LianGuai’s published articles are for information reference only and should not be considered as actual investment advice. Please establish the correct investment concept and enhance risk awareness.

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