Welcome to Barmy’s Daily Crypto News – July 29th, 2022
1. Fed, FDIC Oppose Voyager’s ‘False and Misleading’ Insurance Claims
On Thursday, the Federal Reserve and the Federal Deposit Insurance Corporation issued a cease-and-desist order to the troubled cryptocurrency company Voyager Digital. Voyager is accused by the authorities of making “false and misleading” promises about the government-backed insurance of consumers’ funds.
The FDIC declared on July 8 that it was looking into Voyager’s assertions that it was FDIC insured due to the company’s affiliation with Metropolitan Commercial Bank.
“MCB is a depository institution whose deposits are insured by the FDIC. The Board of Governors is the primary federal regulator of MCB,”officials stated. In other words, just because MCB is FDIC-insured does not automatically imply that Voyager is as well.
2. City of Miami To Launch 5,000 Ethereum NFTs
Francis X. Suarez, the mayor of Miami, announced plans to release 5,000 Ethereum NFTs later this year. To make it happen, Miami is working with Salesforce, Mastercard, and TIME magazine publisher Time USA.
According to a news statement from the city, 56 different Miami artists are creating the NFTs, which are exclusive blockchain tokens that symbolize ownership.
Mastercard will provide Miami NFT holders with exclusive privileges like exclusive event access at restaurants and private cultural tours in the city, while Time USA will aid in the project’s definition and execution.
3. Axie Infinity CEO Moved $3M In Tokens Prior To $622M Hack Disclosure
Axie Infinity, a popular cryptocurrency game, survived one of the worst DeFi attacks ever in March when the bridge connecting its Ronin network sidechain to Ethereum was breached, resulting in the theft of $622 million worth of bitcoin. The CEO of the company that created Axie has now acknowledged that he removed tokens worth millions of dollars from Ronin before the hack was made public.
According to a report published today by Bloomberg, who examined blockchain data, a cryptocurrency wallet controlled by Trung Nguyen, CEO and co-founder of Sky Mavis, transferred the game’s AXS governance token, which is valued at about $3 million, from the Ronin network to the cryptocurrency exchange Binance.
Only three hours after Sky Mavis revealed the Ronin network hack, or about a week after the attack, Nguyen transferred tokens, blocking access to the network until late June. Kalie Moore, a spokesman for Sky Mavis, confirmed the deal to Bloomberg when the news source shared its findings with the company.
4. Ethereum’s Final Testnet Merge Is Days Away
The Ethereum Foundation has announced that the Goerli/Prater testnet deployment, the last test to be finished before Ethereum’s eagerly awaited switch to proof of stake, will take place the following week.
As a dress rehearsal for the merge, testnets like Goerli transfer the whole Ethereum mainnet to a test network environment. The third and last of these dry runs will be the Goerli testnet. The Ropsten testnet successfully switched to proof of stake in June, and the Sepolia testnet functioned without a hitch earlier this month.
The Goerli testnet and Prater, its accompanying beacon chain, are expected to converge between August 6 and August 12. Since December 2020, a proof-of-stake Ethereum network has been operating in parallel with the current proof-of-work Ethereum network as the main beacon chain.
5. Senator Urges Regulators To Combat Crypto Scams and Fraud
On Thursday, the head of the Senate Banking Committee raised concerns about the hazards associated with cryptocurrencies and emphasized the need for regulators to shield the public from fraud and scams.
“Bitcoin can be used for old-time schemes and frauds like Ponzi schemes and bogus investments, promising big returns with only upside and no risk,” said Senator Sherrod Brown (D-OH). “New ways to cheat people out of their money is not the kind of innovation most people want in our economy.”
The remarks were given at a hearing titled “Protecting Investors and Savers: Understanding Scams and Risks in Crypto and Securities Markets,” which was presided over by the head of the Senate Committee on Banking, Housing, and Urban Affairs. He emphasized how the failure of lending platforms like Celsius and Voyager Digital, which provided investors with high rates on cryptocurrency deposits, hurt investors.
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