Results of the week: bitcoin consolidated above $23,000, and Changpeng Zhao accused Bloomberg of defamation

Results of the week: bitcoin consolidated above $23,000, and Changpeng Zhao accused Bloomberg of defamation

Week results: bitcoin fixed above $23,000, and Changpeng Zhao accused Bloomberg of slander

Bitcoin fixed above $23,000 after the Fed meeting, the media learned about investigations into Coinbase and Kraken, Changpeng Zhao filed a lawsuit against Bloomberg and other events of the outgoing week.

The Fed raised the key rate. Bitcoin fixes above $23,000

On Wednesday, July 27, the US Federal Reserve System (FRS) increased the key rate range by 75 basis points at once, to 2.25-2.5%. On July 28, the Bureau of Economic Analysis of the Ministry of Commerce reported that in April-June, the country's GDP decreased by 0.9% compared to the first quarter of 2022.

The leading cryptocurrencies reacted to the news with growth. Over the past week, the price of Bitcoin has increased by almost 6%, Ethereum – by 10%. At the time of writing the quote, the first asset is trading near $23,750, the second is around $1,700.

Results of the week: bitcoin settled above $23,000, and Changpeng Zhao accused Bloomberg of defamation

BTC/USDT hourly chart of the Binance exchange. Data: Trading View.

Results of the week: bitcoin settled above $23,000, and Changpeng Zhao accused Bloomberg of defamation

ETH/USDT hourly chart of the Binance exchange. Data: Trading View.

All digital assets from the top 10 by capitalization closed the week in the green zone. Polkadot (DOT) showed the best dynamics — its price grew by almost 21%.

Results of the week: bitcoin settled above $23,000, and Changpeng Zhao accused Bloomberg of defamation

Data: CoinGecko.

The opinions of experts regarding the further development of events were divided. Former Goldman Sachs top manager and macro investor Raul Pal said the market is preparing for a trend reversal in light of rising money supply.

Guggenheim Partners warned of a possible decline in quotes. According to Scott Minerd, chief investment officer of the company, the industry has not yet “cleansed itself” of problem participants.

Bloomberg: SEC Investigates Coinbase

The U.S. Securities and Exchange Commission (SEC) launches an investigation into Coinbase Global due to possible access to US residents to trade digital assets that could be regarded as securities, the agency found out.

The information had a negative impact on Coinbase stock quotes. On July 25-26, the COIN rate collapsed by more than 20%. As a result, ARK Invest, an investment company owned by Kathy Wood, sold a total 1.41 million Coinbase shares worth ~$75 million. However, the subsequent rise in bitcoin and the market as a whole compensated for part of the fall. Bloomberg for libel

Changpeng Zhao, head of Binance cryptocurrency exchange, filed a lawsuit in Hong Kong against Bloomberg Businessweek, accusing him of defamation.

The top manager claims that the 250th edition of the Chinese version of the publication, titled “Changpeng Zhao Ponzi Pyramid”, contains materials that are defaming and damaging the image of Binance CEO.

AntPool invests $10 million in the Ethereum Classic ecosystem amid the coming Ethereum to PoS

Bitmain-affiliated mining pool AntPool has announced a $10 million investment in the Ethereum Classic (ETC) ecosystem, with plans to increase funding going forward. Over the past week, the price of cryptocurrency has grown by more than 60% and returned to the top 20 largest assets by capitalization. 

The community attention to ETC is due to the latest news about the upcoming transition of Ethereum to the Proof-of-Stake algorithm after the final merger on the Goerli testnet. Another key factor is the expected migration of miners to alternative networks. On the eve of the attractiveness of Ethereum Classic for miners, Vitalik Buterin said.

Media: US authorities suspected Kraken of violating sanctions

The Office of Foreign Assets Control of the US Department of the Treasury may collect a fine from the Kraken exchange for violating the sanctions regime. The investigation has been ongoing since 2019, the NYT reported.

The publication reported that as part of communication within the company, Kraken CEO Jess Powell posted a table with verified exchange accounts. It followed that the platform had 1,522 users in Iran, 149 in Syria, and 83 in Cuba. The document was subsequently deleted.

Celsius Network filed a class action lawsuit in the United States

The lawsuit is represented by the law firm Bragar Eagel & Squire, P.C. Lawyers have acted on behalf of individuals and entities that have invested in Celsius. Among the defendants are Celsius Lending LLC, Celsius KeyFi LLC and the head of the company, Alex Mashinsky. They, according to lawyers, violated the provisions of the Exchange Law and misled investors about “their financial products.”

This week, Celsius filed a motion to retain former CFO Rod Bolger as a bankruptcy advisor. The company also suffered from a data breach that occurred due to the compromise of the Customer email service.

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  • Solana will open a physical store in a prestigious New York mall.

Babel Finance lost $280 million trading client funds

Crypto financial service provider Babel Finance lost over $280 million as a result of poor client funds trading decisions. Unhedged positions worth 8,000 BTC and ~56,000 ETH were subject to forced liquidation during the period of Bitcoin's fall from $30,000 to $20,000.

FTX offered Voyager customers an expedited refund method

FTX offered Voyager Digital customers to open accounts on the exchange, which will accumulate proceeds from their crypto broker bankruptcy claims. With the consent and approval of the court, they will have access to the assets earlier than under the standard liquidation procedure.

Ethos startup founder and former Voyager chief innovation officer Shingo Lavin filed an objection to the crypto broker’s proposed restructuring plan this week.< /p>

Lavin presented his own project for the reorganization of the company's business, which consists of eight points. The program includes the dismissal of Voyager executives, the cessation of lending-related operations, and the launch of a recovery token for repayment of obligations.

Lido community rejected the sale of 10 million LDOs to Dragonfly Capital, and Harmony users secured a revision of the compensation plan

The Lido Finance platform community has voted against a proposal to sell 10 million LDO tokens to venture capital firm Dragonfly Capital. The proposed token sale was part of a plan to diversify Lido's treasury. At the same time, a lockup period was not envisaged.

The founder of the Harmony blockchain project Stephen Tse said that the team would reconsider the proposal to compensate victims of the Horizon cross-chain bridge hack for $100 million by issuing additional native ONE tokens. 

The previous plan called for a hard fork and two payout options – 2.4 billion ONE (to compensate for 50% of the damage) or 4.97 billion ONE (to pay 100% of the damage). Both options were criticized by the community, since the additional emission of ONE could have a negative impact on the asset's price.

Michael Saylor allowed Ethereum to become unstable in the next three years

Michael Saylor, Head of MicroStrategy, during his speech at the Blockchain Economy Summit in Istanbul criticized Ethereum on the eve of The Merge update. According to him, additional time may be required to stabilize the second-largest cryptocurrency by capitalization.

Saylor noted that it is important for institutional investors to see the finished version of the protocol working without hacks for 5-10 years. He admitted that Ethereum could be unstable in the next three years.

Also on ForkLog:

  • The Cardano team has postponed the activation of the Vasil hard fork.

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  • El Salvador names the benefits of Bitcoin legalization
  • The Aave community approved the launch of the decentralized stablecoin GHO.
  • Tether promised to zero out the share of commercial paper in reserves.
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