Former FDIC regulator hints at anti-crypto ‘coup d’etat’
A former regulator for the Federal Deposit Insurance Corporation has hinted at an anti-crypto ”coup d’etat” that saw a crypto-friendly chair Jelena McWilliams removed from office.
Jason Brett, managing director at consulting firm Key Bridge Advisors who served as a regulator at the FDIC, said market watchdogs may use the recent turmoil to cut off crypto from accessing the US banking services.
Brett stated it may be possible that these current efforts were in the works prior to last week’s crisis, which saw the failure of Silvergate Bank, Silicon Valley Bank and Signature Bank – all of which possessed large crypto business arms.
NOW READ: Bank meltdown crushes crypto regulation hopes: ‘Crypto in the US is dead’
It's clear the Biden administration is weaponizing market chaos to kill crypto.
— Tom Emmer (@GOPMajorityWhip) March 16, 2023
This is why I sent an investigative letter to FDIC Chairman Gruenberg seeking additional information yesterday. pic.twitter.com/oPr3WLZtk3
READ NOW: Bank meltdown crushes crypto regulation hopes: ‘Crypto in the US is dead’
Popular influencers slapped with $1bn FTX class action lawsuit
A group of former FTX investors sued multiple popular influencers in a $1 billion class action lawsuit Wednesday.
The lawyers behind the suit put big Youtube names such as Ben “Bitboy Crypto” Armstrong and Graham Stephan in their crosshairs.
The lawsuit claims that various content creators promoted FTX’s yield-bearing account products, allegedly receiving payment for their endorsements.
The lawsuit claims that many of the defendants “scrubbed their YouTube channels” of promotional content following FTX’s collapse and published apology videos addressing the company’s failure.
Armstrong has hit back on Twitter, saying, “Countersuit coming. The lawyers on this case can’t possibly be more stupid.”
Countersuit coming. The lawyers on this case can’t possibly be more stupid. I’ve never had contact with anyone at FTX and never even had a reflink.
— Bitboy Crypto (@Bitboy_Crypto) March 16, 2023
Show me you are dumb without telling me you are dumb.
I’m going to roast these Low IQ plebs and their lawyers https://t.co/1y2ct85vFq
READ NOW: Meet the regulation banker-turned-memelord who trolls crypto Twitter: ‘It’s TradFi cosplay’
Custody bank State Street cuts ties with Copper
State Street has severed business ties with crypto custody firm Copper, in another example of a mainstream bank distancing itself from crypto businesses.
The major global custody bank called the termination of the licensing agreement “mutual,” affirming State Street’s intention to continue working on its own “digital strategies.”
The move comes following a Thursday announcement by Copper that it would close its enterprise business, which focused on infrastructure and software development.
NOW READ: Crypto investors drive USDC rebound amid Silicon Valley Bank fallout
Layer 2 Arbitrum’s upcoming airdrop stirs hype
Ethereum’s layer 2 scaling leader Arbitrum, is a week away from releasing its long-awaited ARB token, which will be airdropped to users March 23.
ARB will act as a governance token, which can be used to vote on proposals covering everything from technical changes to decisions involving the future of the protocol.
Arbitrum parent company Offchain Labs will effectively rescind control of the protocol once the coin goes live.
Although, a 44% token allocation to core developers and investors means considerable voting power will remain in the hands of insiders.
Euler Finance exploiter washes $1.8m in ETH through Tornado Cash
The Euler Finance exploiter transferred $1.8 million worth of ETH to currency mixer Tornado Cash on Wednesday, marking a clear example of the protocol being used to facilitate criminal activity.
Euler was hacked earlier in the week for $197 million in various cryptocurrencies.
The team at Euler attempted to negotiate with the attacker on Tuesday, sending a message via blockchain ordering the attacker to return 90% of the funds or face heightened efforts to bring them to justice.
Euler later offered a $1 million bounty to catch the attacker.
Given the relatively small amount the exploiter sent to Tornado Cash, it is unclear whether or not the attacker will comply with Euler’s request.
Alexey Pertsev was jailed in the Netherlands in August, accused by Dutch prosecutors of money laundering because he was a developer of Tornado Cash.
NOW READ: Euler hack victim who got 100 ETH: ‘He was probably moved by my message’
Worldcoin enlists taps Jabil for controversial eye-ball scanning orbs
Crypto project Worldcoin has finalised a deal with manufacturing conglomerate Jabil to produce its controversial retina-scanners.
Worldcoin is an identity-focused project headed by OpenAI CEO Sam Altman. The project garnered attention in 2021 after presenting prototypes for the scanners, called orbs, to the public.
Privacy advocates such as Edward Snowden spoke out against the technology, saying the biometric data it uses to secure Worldcoin accounts poses a privacy risk.
Worldcoin has ordered 400 orbs from Jabil. It remains to be seen if the success of OpenAI’s wildly popular ChatGPT product aids the eyeball-scanning orbs in seeing mass production.
More web3 news from around the web...
Crypto exchange Orca to block US traders from website – CoinDesk
Circle ‘substantially clears’ backlog of USDC redemptions – The Block
FDIC wants buyer of Signature Bank to give up crypto business, report says – Fortune Crypto
