Binance.US scores against SEC, Mt. Gox delay repayments, and other news: Hodler’s Digest, Sept. 17-23

FTX founders parents sued, accused of stealing millions from crypto exchange

Debtors of FTX have launched legal action against the parents Sam SBF Bankman-Fried, alleging that they misappropriated millions of dollars through their involvement in the crypto exchange. The plaintiffs argued that Joseph Bankman and Barbara Fried exploited their access and influence within the FTX empire to enrich themselves at the expense of the debtors in the FTX bankruptcy estate. The debtors alleged that SBFs parents were very much involved in the FTX business from inception to collapse, contrary to what SBF has claimed. According to the complaint, Bankman and Fried extracted significant unearned rewards from their involvement in FTX Group, including a $10-million cash gift and a $16.4-million luxury property in the Bahamas.

Grayscale files for new Ether futures ETF Official

Digital currency investment company Grayscale is the latest firm to file with the Securities and Exchange Commission for a new Ether (ETH) futures exchange-traded fund (ETF).

Grayscale Ethereum Futures Trust will hold Ether futures contracts with a “roughly constant expiration profile,” according to the filing. The trust will “never carry futures positions to cash settlement.” The nature of the Ether futures contracts in the ETF will not require the trust to use an Ether custodian. Grayscale’s application comes a few weeks after Valkyrie also filed for an Ether futures ETF with the SEC in mid-August, following several other firms filing for ETH futures ETFs.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $26,525, Ether (ETH) at $1,590 and XRP at $0.51. The total market cap is at $1.05 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Immutable (IMX) at 27.07%, Curve DAO Token (CRV) at 16.16%, and Aave (AAVE) at 15.92%. 

The top three altcoin losers of the week are Gala (GALA) at -8.57%, Axie Infinity (AXS) at -7.42%, and Optimism (OP) at -7.52%. 

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

Most Memorable Quotations

There remains a real risk that the use of AI develops in a way that undermines consumer trust or is dominated by a few players […].

Sarah Cardell, CEO of the U.K. Competition and Markets Authority

Dont give up on the United States. This too shall pass, the confusion shall pass. The United States is a good place to build things, and I want it to stay that way.

Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission 

If the average end-user, who isnt a computer scientist, who doesnt understand blockchain, has to know about their private keys weve got it wrong. They have to be abstracted away,

James Tromans, head of Web3 at Google Cloud

Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.

Jamie Coutts, crypto market analyst at Bloomberg

It is an inevitable future where there will no longer be any intermediaries between fans and creators this is an obvious but unrealized potential of blockchain technology.

Leon Lee, founder and CEO of Only1

[The U.S. government] can do a central bank digital currency if its open, permissionless and private. It has to emulate cash.

Tom Emmer, U.S. Representative

Prediction of the Week 

Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar

Bitcoin circled lower after the United States Federal Reserve decision on interest rates, with $20,000 BTC price predictions resurfacing. 

The aftermath of the Fed interest rates pause on Sept. 20 offered little for Bitcoin bulls, BTC/USD having dipped almost $700 the day prior. Data from Cointelegraph Markets Pro and TradingView covered a lackluster 24 hours for BTC price action, with $27,000 fading from view.

Now, market participants returned to a more conservative outlook in the absence of tangible volatility. Something like this over the course of October would be perfect i would say, popular trader Crypto Tony told X (formerly Twitter) subscribers.

Slow grind up to $28,500, followed by hype and FOMO, to then dump it once more.

FUD of the Week 

Balancer blames social engineering attack on DNS provider for website hijack

Ethereum-based automated market maker Balancer believes a social engineering attack on its DNS service provider was what led to its websites front end being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen. Blockchain security firms SlowMist and CertiK reported that the attacker employed Angel Drainer phishing contracts. SlowMist said the exploiters attacked Balancers website via Border Gateway Protocol hijacking a process where hackers take control of IP addresses by corrupting internet routing tables. The hacker has already bridged some of the stolen Ether (ETH) to Bitcoin (BTC) addresses.

Crypto influencer arrested in Hong Kong for JPEX association

A Hong Kong-based social media influencer has reportedly been arrested after investigations around the liquidity crisis of the crypto exchange JPEX traced back their involvement. According to a local report, the Securities and Futures Commission of Hong Kong recently issued a statement blaming JPEX for actively promoting the platforms services and products to the public through online celebrities and over-the-counter money changers. Another unconfirmed report suggests that Lin Zuo presented schemes to a chat group created for cryptocurrency investment. Also related to this story, Hong Kong regulators are looking to tighten regulations around the crypto market following the failure of JPEX, which led to the arrest of over six individuals.

CoinEx hack: Compromised private keys led to $70M theft

Hong Kong-based cryptocurrency exchange CoinEx has revealed that compromised private keys allowed hackers to steal over $70 million worth of tokens. According to CoinEx representatives, the amount represents a small percentage of its total assets under management. CoinEx stated that affected users will be compensated entirely for any lost funds. The exchange explained that a preliminary investigation pinned the root cause to a compromised private key for its hot wallets. These were used to store exchange assets for carrying out deposits and withdrawals.

AI has killed the industry: EasyTranslate boss on adapting to change

If youre not transforming your business to take advantage of AI now, youll be left behind, says Easy Translate boss Frederik Pedersen.

NFT Collector: William Mapan explains generative art using a crayon and dice

What even is generative art? William Mapan, whose 250-piece Distance collection just sold out at 2ETH each, explains using a crayon and die.

JPEX staff flee event as scandal hits, Mt. Gox woes, Diners Club crypto: Asia Express

Hong Kong crypto exchange JPEX busted in $166M scam, Mt. Gox delays repayments yet again, oldest credit card company in Singapore moves into blockchain.