Fideum Crypto News Desk #62
Polygon’s Innovative Leap: Introducing AggLayer for Enhanced Blockchain Interoperability
Polygon Labs is set to revolutionize blockchain technology with the launch of AggLayer in February. This cutting-edge solution aims to unify liquidity across different blockchains, leveraging zero-knowledge proofs for seamless connectivity. Central to the upcoming Polygon 2.0 network, AggLayer promises to maintain uniform security across both modular and monolithic chains within the ecosystem. By aggregating ZK proofs from all connected chains, it creates an environment that feels like a single chain, maintaining the sovereignty of each individual network. This development positions Polygon as a leader in fostering interoperability and security within the blockchain space.
Fidelity’s Bitcoin ETF Gains Momentum Amidst GBTC Outflows Decline
Fidelity’s Bitcoin ETF (FBTC) has experienced a notable upsurge, pulling in $208 million in a single day, marking a significant shift in the cryptocurrency investment landscape. This surge contrasts with the outflows from Grayscale’s Bitcoin Trust (GBTC), which saw a reduction in outflows to $192 million on the same day. The event reflects changing investor preferences, with Fidelity’s ETF showing robust performance. Additionally, this shift comes amidst a broader trend in the ETF market, including fee reductions by various fund issuers to attract investors. The competition in the spot Bitcoin ETF sector is intensifying, reshaping investment strategies and preferences in the cryptocurrency domain.
GRIID Infrastructure has Gone Public in the US
Cincinnati-based bitcoin mining company GRIID Infrastructure has officially entered the US market, trading on Nasdaq after its initial public offering in Canada. Specializing in bitcoin mining, GRIID operates facilities primarily using carbon-free power, aiming for 90% clean energy usage by the end of 2024. The company’s strategic approach to sustainability and growth, combined with its recent public listing, marks a significant step in the evolving landscape of cryptocurrency mining and its increasing move towards environmentally conscious practices.
Hong Kong Tightens Crypto Exchange Security with Mandatory 50% Insurance Coverage
Hong Kong’s Securities and Futures Commission has recently mandated a minimum insurance coverage of 50% for all licensed crypto exchanges holding customer assets. This move, aimed at enhancing the safety of users’ assets, comes as two major exchanges, OSL and HashKey, lead the way with robust insurance policies. OSL has partnered with Canopius for a 95% coverage, while HashKey’s deal with OneInfinity could extend beyond current protections. Amidst growing interest in virtual asset trading, this regulation underscores Hong Kong’s commitment to creating a secure and reliable crypto trading environment.
Invesco Galaxy Lowers Bitcoin ETF Fee to 0.25%
In a significant move to stay competitive in the cryptocurrency ETF market, Invesco Galaxy has reduced the fee for its bitcoin ETF, BTCO, from 0.39% to 0.25%. This adjustment aligns BTCO’s fee with major players like BlackRock, Valkyrie, VanEck, and Fidelity, signaling a strategic response to the competitive landscape. Interestingly, this fee reduction is accompanied by a waiver for the first six months or until BTCO reaches $5 billion in assets. The decision reflects the intensifying competition among bitcoin ETF issuers, where fees have become a critical differentiator. Moreover, this trend isn’t just limited to the US; Invesco has also decreased the fee for its European physical bitcoin ETP.
DOJ Charges Trio in $1.9 Billion Crypto Scam
The U.S. Department of Justice (DOJ) has charged three individuals for their involvement in a $1.9 billion cryptocurrency scam centered around HyperFund, a supposed DeFi platform. Australian Sam Lee, co-founder of HyperFund, along with Americans Rodney Burton and Brenda Chunga, are accused of defrauding investors by falsely promising returns from non-existent crypto mining operations. This massive scheme, which ran from June 2020 to November 2022, lured investors with the promise of daily passive rewards and substantial returns on their initial investments. However, these claims were baseless as the purported mining operations didn’t exist. The scam unraveled as HyperFund began blocking investor withdrawals in July 2021. Facing serious charges, including securities and wire fraud conspiracy, the accused could receive a maximum five-year federal prison sentence.
Amazon Approves New Film Revealing $3 Billion Bitfinex Hack and Laundering Plot
Amazon and MGM Studios are joining forces to create “Razzlekhan,” a film based on the real-life story of Ilya Lichtenstein and Heather Morgan. This couple is infamously known for laundering billions in Bitcoin stolen from the 2016 Bitfinex hack. Directed by Hannah Marks, the movie draws inspiration from a New York Times article and chronicles the journey of Lichtenstein and Morgan, aka “Crocodile of Wall Street,” from executing the hack to their eventual capture by the DOJ in 2022. With a staggering 120,000 BTC stolen, their arrest led to the largest seizure in the DOJ’s history, worth nearly $3.6 billion. The film promises to delve into the sophisticated hacking techniques used and the couple’s eventual guilty plea, offering a dramatic portrayal of one of the most significant cryptocurrency heists.
