Fideum Crypto News Desk #61
Ethereum’s Dencun Upgrade: 10x lower rollup costs
The Ethereum network is undergoing significant enhancements with the Dencun upgrade, aimed at substantially lowering gas fees and speeding up transactions for layer-2 rollups. This upgrade, which includes several Ethereum Improvement Proposals (EIPs), notably EIP-4844, was first tested on the Goerli testnet in January 2024. Despite a temporary setback due to a bug in the Prysm client, the upgrade was successfully deployed. Key benefits of Dencun include more efficient data storage, reduced costs for transactions, and enhanced scalability without compromising decentralization. This progress paves the way for more complex applications on Ethereum’s layer-2 solutions and is a critical step towards improving the network’s overall functionality.
Terraform Labs Files for Chapter 11 Bankruptcy
Terraform Labs, the entity behind the TerraUSD and Luna cryptocurrencies, has filed for Chapter 11 bankruptcy in a Delaware court. This move is a response to the significant financial turmoil the company faced following the 2022 collapse of its digital currencies. The bankruptcy filing lists liabilities between $100 million to $500 million and is part of Terraform Labs’ broader strategy to address ongoing legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC). The company’s financial difficulties were compounded by the arrest of co-founder Do Kwon, further destabilizing its operations.
Bitcoin ETFs Reach New Heights with Nearly $4 Billion in Assets
The nine new spot Bitcoin ETFs have collectively amassed nearly $4 billion in assets under management. Fidelity and BlackRock’s ETFs are leading the pack, with each seeing over $1.2 billion in inflows within six days of trading. Notably, BlackRock’s iShares ETF currently holds slightly more assets than Fidelity’s, at $1.4 billion compared to nearly $1.3 billion. Invesco and VanEck’s ETFs are also showing substantial growth. This marks a significant milestone in the adoption of Bitcoin ETFs.
SEC vs. Binance Court Case Delayed Due to Snowstorm
The anticipated court hearing between the U.S. Securities and Exchange Commission (SEC) and Binance, originally scheduled for this week, has been postponed to the next week due to a severe snowstorm. This delay affects a significant legal battle where the SEC alleges that Binance operated as an unregistered exchange and misled its customers. The outcome of this case is eagerly awaited, as it could have substantial implications for Binance and the broader cryptocurrency market.
SEC Postpones Decision on Fidelity’s Ethereum ETF Proposal Until March
The U.S. Securities and Exchange Commission (SEC) has extended its review period for Fidelity’s proposed spot Ethereum exchange-traded fund (ETF) until March 5. This extension allows the SEC more time to consider the proposal and its implications. Fidelity Investments had filed for the Fidelity Ethereum Fund in November, aiming to offer direct exposure to Ethereum. The SEC’s decision to delay comes amidst broader regulatory scrutiny of cryptocurrency products. Fidelity’s proposal, if approved, would be a significant step in providing institutional investors with more direct access to Ethereum through a regulated financial product.
Denver Pastor Claims Divine Instruction in Alleged Crypto Scam Involving Luxury Spending
Eli Regalado, a Denver-based pastor, is at the center of controversy involving the alleged misuse of funds from the cryptocurrency INDXcoin. Accused by Colorado state regulators, Regalado and his wife are said to have diverted investor funds for personal expenses, including a costly home renovation, a Range Rover, and luxury items. Despite the accusations, Regalado maintains that the $300,000 home remodel was a directive from God. Investors in the cryptocurrency, meanwhile, are reportedly unable to withdraw their funds. Regalado hopes for a financial miracle to repay these investors.
Trezor Reports Phishing Attack Affecting 66,000 Users
Trezor, a prominent cryptocurrency hardware wallet manufacturer, experienced a security breach impacting nearly 66,000 users. The breach, discovered in January 2024, occurred through unauthorized access to a third-party support portal. Users interacting with Trezor’s support since December 2021 might have had their contact details exposed, raising concerns about potential phishing attacks. However, Trezor confirmed that no funds or recovery seed phrases were compromised in the incident.
“We want to stress that none of our users’ funds have been compromised through this incident. Your Trezor device remains as secure today, as it was yesterday.”
