STABLECOIN DIGEST #7/2023

Your guide into the summary of last week’s events in the crypto

The crypto realm grows by leaps and bounds. Our weekly news bulletin is here to inform you of the most impactful of last week’s events. Read about the essential news and analytics of the stablecoin market, DeFi, NFTs, and the crypto regulation sector.

The winter might be heading toward the end, but cryptocurrency markets are still far from stability and signs of true recovery. The Bitcoin price tested the level of $25,000, and the total capitalization of the cryptocurrency market was around $1.18 trillion. The Bitcoin dominance index increased to 40.5%.

More than that, WSJ reports that many banks around the world are distancing themselves from cryptocurrency-related activities due to regulatory pressures. Banks are worried about the risks associated with cryptocurrencies, such as fraud and money laundering, and they are increasingly unwilling to provide banking services to companies involved in the sector. Some banks have even closed the accounts of customers who trade cryptocurrencies, making it difficult for them to access the financial system. The regulatory crackdown on the crypto realm is likely to continue, which could make it even more challenging for individuals and businesses to use or invest in cryptocurrencies.

The supervisory authorities express concern about such relationships after the infamous collapse of FTX. Due to the SEC campaign against prominent industry players, the banking sector is considering limiting business with clients who may be at the sight of the commission.

However, STASIS is proud to be a rare exception in such cases. We have taken the high road since its inception back in 2018 and continue to hold high standards within the stablecoin sector.

• New malware threatens crypto investors

Cybersecurity firm Cisco Talos has identified two new types of malware targeting cryptocurrency investors.

Both cases — MortalKombat ransomware and Laplas Clipper-believed to have originated from Eastern Europe and are actively being used in attacks against cryptocurrency investors. These malicious apps are being distributed through fake cryptocurrency apps and can steal login credentials and private keys, allowing attackers to access users’ cryptocurrency wallets. The report warns investors to be cautious and only use trusted sources when downloading cryptocurrency-related applications.

• Crypto investors poured $4.6 billion into buying tokens, allegedly part of Pump & Dump schemes in 2022.

Chainalysis have determined that more than 9,900 of the tokens launched on the BNB Smart Chain and Ethereum networks last year were created only to carry out such fraudulent activities. The most “successful” link in the scheme was an unnamed company that issued 264 tokens of such kind.

• The latest development in the ongoing OneCoin scam saga suggests exciting revelations

OneCoin was a cryptocurrency that was widely believed to be a Ponzi scheme, and its founders have been charged with fraud and money laundering. One of the key figures in the scheme was Konstantin Ignatov, the brother of OneCoin’s founder, Dr. Ruja Ignatova, who was known as the “Crypto Queen.”

The latest documents, filed in a New York court by the U.S. government, reveal that Dr. Ignatova allegedly died in 2018. The new documents shed light on the complexity of the OneCoin scheme, which is believed to have defrauded investors of billions of dollars. The U.S. government has been working to unravel the scheme for years, and the case is still ongoing. The latest revelations may impact the case, as investigators continue to seek justice for the victims of the OneCoin scam.

• U.S. SEC charged Terra founder Do Kwon with fraud

On February 16, 2023, the U.S. Securities and Exchange Commission (SEC) charged Do Kwon, the founder of Terra, a blockchain-based payment platform, with fraud. According to the SEC’s complaint, Terra founder made false and misleading statements about Terra’s financial performance and misrepresented the nature of the company’s relationships with certain key partners. The complaint also alleges that he engaged in insider trading by selling Terra tokens before the company announced a significant decrease in revenue. The SEC is seeking disgorgement of ill-gotten gains, civil penalties, and a permanent injunction against Kwon to prevent him from further violating securities laws. Terra’s founder has denied the allegations and plans to fight the charges.

• USP Stablecoin Lost Dollar Peg as DeFi Protocol Platypus Suffered $8.5M Attack

On February 16th, 2023, the USP stablecoin lost its peg to the U.S. dollar due to an 8.5 million dollar attack on the decentralized finance (DeFi) protocol Platypus. The attack caused the price of USP to drop significantly, and investors could not redeem their tokens. As a result, trading in the USP stablecoin was halted on multiple exchanges, causing concern and uncertainty across the crypto markets. The incident highlights the risks associated with investing in DeFi and stablecoins, which are not backed by traditional financial institutions or regulatory frameworks.

Stay in the loop!

That’s all for today, folks! Thanks for reading the STASIS Blog! Want to learn more about what we do? Check out our website, or download the STASIS Wallet.

Moreover, make sure you subscribe to our socials on Twitter, Telegram, Facebook,and LinkedIn to stay tuned to what we’re up to!