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Binance US Faces SEC Accusations Over Alleged Securities Trading Violations

The Securities and Exchange Commission (SEC) has leveled a series of accusations against the US operations of cryptocurrency exchange Binance, casting a significant cloud over the future of the platform in the United States.

In a formal complaint, the SEC claimed that Binance US facilitated trading in a range of tokens identified as securities without the requisite permissions. The assets in question include Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity Shards (AXS), and Coti (COTI).

The SEC’s allegations also extend to investment schemes run by the platform. Binance’s BNB Vault and Simple Earn programs, as well as a staking investment plan, are accused of having operated outside of US regulatory oversight.

The accusations seem to point to a fundamental charge of intentional evasion of US supervision by Binance, a claim that could carry significant implications for the cryptocurrency exchange’s operations within the country.

However, it is important to clarify the nature of these charges. The allegations brought forth by the SEC, as well as those by the Commodity Futures Trading Commission (CFTC), against Binance are civil, not criminal in nature. This marks a distinction from the money laundering charges faced by other exchanges such as BitMEX in previous cases.

The fallout from the accusations is yet to be fully realized, but this could mark a pivotal moment in the ongoing tug-of-war between cryptocurrency exchanges and regulatory bodies. As Binance contends with these accusations, the crypto industry will no doubt be watching closely, aware that the outcome could have far-reaching implications for the future of digital asset trading in the United States.

SEC Lawsuits Target Multiple Tokens: DCG Founder Points Out Absence of PoW Cryptos

In an unfolding legal battle against two major cryptocurrency exchanges, Coinbase and Binance, the United States Securities and Exchange Commission (SEC) has declared various tokens as securities. These tokens include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO in the case against Coinbase. For Binance, the list features SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.

This declaration by the SEC highlights its ongoing effort to regulate the cryptocurrency market and could have substantial implications for these tokens and their holders. If the SEC succeeds in classifying these tokens as securities, it would subject them to more stringent regulatory rules and obligations.

Barry Silbert, the founder of Digital Currency Group (DCG), commented on the situation via Twitter, noting, “No Proof of Work tokens in any of the lawsuits, I believe (BTC, LTC, XMR, ETC, ZEC, etc.).” Silbert’s tweet refers to the SEC’s decision to not include tokens that use Proof of Work (PoW) consensus mechanism in their lawsuits. This includes Bitcoin (BTC), Litecoin (LTC), Monero (XMR), Ethereum Classic (ETC), and Zcash (ZEC), among others.

The implication of Silbert’s statement suggests that the SEC might be differentiating between PoW tokens and other tokens. This differentiation could lead to different regulatory standards and implications for tokens depending on their underlying consensus mechanism.

This ongoing case and the SEC’s decisions could set a precedent for future regulations and classifications in the crypto market. As such, all eyes within the crypto community are keenly focused on the developments. It is yet to be seen how these decisions will shape the regulatory landscape of digital assets.

Long-Term Bitcoin Holders Unfazed by Recent SEC Accusations Against Binance and Coinbase

Data provided by Glassnode reveals that the percentage of Bitcoin supply sent to trading platforms by long-term holders accounts for a mere 0.004% of the total. This figure underscores the significant inactivity of long-term Bitcoin holders amid intensifying market pressures, demonstrating an apparent indifference to the regulatory accusations faced by leading cryptocurrency exchanges, Binance and Coinbase.

Despite apparent market strain and uncertainty, these holders remain remarkably composed amidst these allegations. This could indicate a lack of concern over the potential impact of these charges, or perhaps a strong belief in the long-term value of Bitcoin, rendering them relatively immune to short-term market fluctuations and events.

On June 5, the U.S. Securities and Exchange Commission (SEC) lodged a lawsuit against cryptocurrency exchange platform Binance and its founder, CZ, for alleged violation of U.S. securities rules. On the subsequent day, June 6, the SEC proceeded to file charges against Coinbase at a federal court in New York.

The SEC contends that Binance-related tokens such as BNB and BUSD, alongside several other tokens including Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC, are indeed securities. Apart from these, the SEC argues that other crypto assets traded on Binance.com and Binance.US, including Filecoin’s FIL, Cosmos’ ATOM, Sandbox’s SAND, Decentraland’s MANA, Algorand’s ALGO, Axie Infinity’s AXS, and Coti’s COTI tokens, were “offered and sold as securities.”

In its lawsuit against Coinbase, the SEC identified 13 cryptocurrencies which included the previously classified SOL, ADA, MATIC, SAND, and AXS, and six more: Chiliz (CHZ), Flow (FLOW), Internet Computer(ICP), Voyager Token (VGX), and Nexo.

Over the weekend, most altcoins, especially those alleged as securities by the SEC, experienced a significant crash. Yet, despite these market upheavals, the data suggests that long-term Bitcoin holders remain largely undeterred by the current climate, possibly indicating a steadfast belief in Bitcoin’s resilience and long-term prospects.

This news event will continue to be a focus of the cryptocurrency market, as the legal challenges and their potential consequences could shape the landscape of cryptocurrency regulation and adoption in the future.

The Sandbox Q2 2023 Report: 59% Increase in NFT Mints, 52% Rise in Primary Sales, 15% Fall in Revenue in Q2

The Sandbox, a leading gaming metaverse, posted a mixed performance in the second quarter of 2023, according to a report released by Messari. The platform saw a robust 59% QoQ increase in NFT mints, primary sales were up 52% QoQ, and active buyers grew 22% QoQ. However, total revenue fell 15% QoQ, despite a 30% increase in non-LAND primary sale volume and an 18% rise in ESTATE volume.

The SEC’s lawsuits against Coinbase and Binance, where SAND was classified as a security, could herald a new era of crypto regulation in the U.S. A recent court ruling on XRP adds complexity to the regulatory scenario.

The Sandbox announced collaborations with brands like Paris Hilton, Warner Music, and others. The roadmap includes new features such as self-publishing experiences by the end of Q3 2023 and the ability to create and rent ESTATEs in Q4 2023.

Daily SAND staked grew 5% QoQ, but fell as a percentage of the circulating supply by 2% QoQ. SAND’s fully diluted valuation hovered between $2.1 billion and $1.1 billion, ending the quarter at $1.22 billion.

Despite facing a tough quarter marked by a fall in revenue, staking rewards, and SAND price, The Sandbox continued to facilitate new partnerships and grow in key areas. The platform faces regulatory uncertainty but is positioned for potential growth.

The Sandbox is a gaming metaverse where players and creators can monetize 3D assets and experiences via NFTs. Initially launched as a 2D mobile game in 2012, it rebranded as a 3D metaverse game in 2018.

$SAND Price May Plunge with 127 Million Transferred from The Sandbox Wallets

On August 4, 2023, Lookonchain, a Twitter account specializing in tracking on-chain cryptocurrency data, announced a substantial transfer involving The Sandbox’s ($SAND) tokens. The tweet stated, “We noticed that 127M $SAND ($51.32M) was transferred from #TheSandbox wallets 6 hrs ago.”

In addition, Lookonchain cited information from Token Unlocks, revealing, “According to @Token_Unlocks, 332.55M $SAND ($134.4M) will be unlocked after 10 days, 16.16% of the circulating supply.”

Earlier, on June 5, The Securities and Exchange Commission (SEC) charged Binance, naming SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities in the filing. This announcement led to a significant market reaction, with the $SAND price reaching its peak of 0.6151 on June 5, before plummeting to a low of 0.331 on June 10—a 50% decline within just six days.

On July 14, 2023, Spot On Chain drew attention to a resurgence in $SAND and $MATIC, highlighting that both were “up 10%+ over the past 24 hours after the US judge ruled $XRP is not a security! Amid the pumps, we noticed: The Sandbox may reduce their $SAND position soon. KOL @degentradingLSD took profit from a $MATIC deal he accumulated before the pump.” The $SAND price reached 0.4862 that day, marking the highest level in recent days. However, since then, the price has been on a continuous downward trend.

At the time of writing, the $SAND price stands at approximately 0.4, reflecting a 20% decrease from the recent high. The latest transfer of 127 million $SAND is significant and may exert considerable pressure on the $SAND price, adding further complexity to the market dynamics surrounding this cryptocurrency.

Crypto Exchange Bitstamp to Suspend Trading AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL

Bitstamp, one of the world’s oldest cryptocurrency exchanges, has announced a suspension of trading for seven cryptocurrencies in the United States, effective from August 29, 2023. The affected cryptocurrencies include AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL.

In an official statement released on Bitstamp’s blog, the company explained that the decision was made “considering recent developments” and in alignment with their “comprehensive framework” to evaluate cryptocurrencies in light of the dynamic regulatory environment. The statement further clarified that as of the mentioned date, new orders involving these assets would be disabled, and all existing orders across the affected trading pairs would be canceled.

Customers in the U.S. will still be able to hold these assets within their Bitstamp accounts and withdraw them at any time. The company has urged users to execute any desired buy or sell orders involving the affected assets before the deadline.

The New York State agency of Financial Services has issued Bitstamp USA, Inc. a license allowing it to participate in Virtual Currency Business Activity. This same agency has also issued Bitstamp USA, Inc. a license allowing it to act as a Money Transmitter.

This move comes at a time when Bitstamp is actively seeking to raise funds for expansion. The delisting coincides with the company’s efforts to comply with the dynamic regulatory environment, as stated in their official announcement, though no direct connection to investor pressure has been publicly disclosed

According to a Bloomberg report, Bitstamp initiated the fundraising process in late June 2023, with Galaxy Digital Holdings acting as an adviser. The funds are planned to be used for launching derivatives trading in Europe next year, expanding into Asian markets, and enhancing operations in the U.K.

Bitstamp’s global chief executive officer, Jean-Baptiste Graftieaux, emphasized that the company is not for sale and that the priority is to “accelerate Bitstamp’s growth by providing new products and services to retail and institutional crypto customers.”

Founded in 2011 and headquartered in Luxembourg, Bitstamp was once a primary venue for Bitcoin trading. It is now the world’s seventh-largest exchange, with about $126 million in trading volume in a recent 24-hour period. In 2018, Bitstamp was acquired by NXMH, a European investment firm owned by South Korean conglomerate NXC.

The suspension of trading for the seven cryptocurrencies is a significant indicator in Bitstamp’s operations, reflecting the ongoing challenges and complexities of regulations.

Bithumb Korea Reports Operational Losses Due to Declining Crypto Trading Volume

According to decenter, Bithumb Korea, the company behind the virtual asset exchange Bithumb, has reported a significant operational loss in the second quarter of 2023. According to the electronic disclosure system operated by the Financial Supervisory Service on August 16, Bithumb Korea recorded an operational loss of KRW 3.442 billion in the second quarter. This is in stark contrast to the profit of KRW 38.42 billion that was witnessed during the same time period the previous year.

Earnings for the corporation as a whole also went down, decreasing by 60% yearly to a total of KRW 31.993 billion. The net loss for the time was KRW 8.583 billion, which is much less than the loss of KRW 43.3 billion that occurred during the previous year.

Analysts attribute Bithumb’s deteriorating performance to the decrease in virtual asset trading volume, leading to a decline in fee-based income. The first quarter saw a bullish trend in virtual asset prices, but by the second quarter, prices stagnated below the $30,000 mark, causing a dampening of investor sentiment. While there were brief rebounds due to positive news such as major US asset managers applying for Bitcoin (BTC) ETF listings and Ripple (XRP) securing legal victories, these did not translate into sustained growth.

In response to the declining trading volumes, Bithumb has initiated a no-fee event for select virtual assets in a bid to boost activity. Currently, the exchange is not charging fees for transactions involving assets like Solana (SOL), Ethereum Classic (ETC), and Sandbox (SAND) among 30 other virtual assets. Bithumb stated, “The goal is to lower the barrier of entry for investors and increase new inflows to ensure liquidity. This no-fee zone event is the beginning, and we plan to introduce more proactive and diverse services.”

Bithumb Korea, established in 2014, has become a prominent virtual asset exchange on the global stage. With its deep expertise in virtual asset trading and blockchain technology, Bithumb is poised to shape the future of digital financing platforms worldwide. As per Coinmarketcap, Bithumb currently ranks 13th in terms of spot trading volume.

Animoca Brands Reports US$402 Million Bookings for 2022

Animoca Brands, a leading figure in the realms of digital entertainment and blockchain technology, has unveiled its financial performance for the year ending 31 December 2022, providing a comprehensive insight into its achievements and future prospects.

The company’s financial health appears robust, with bookings escalating to a commendable A$594 million (approximately US$402 million). This figure represents a significant uptick from the A$428 million (around US$291 million) reported in the previous year. Such bookings are not just mere numbers; they encapsulate the company’s diverse ventures, including token sales, NFT (Non-Fungible Token) sales, and other activities that don’t necessarily fall under the blockchain umbrella.

Diving deeper into their financial reservoir, Animoca Brands has showcased a strong liquidity position. Their cash and stablecoin reserves are pegged at A$286 million (approximately US$191 million). Furthermore, the company’s liquid digital assets, which comprise reserves of the SAND utility token used predominantly in The Sandbox platform, are valued at a substantial A$690 million (roughly US$469 million). Such figures not only highlight the company’s financial prowess but also underscore its strategic investments in digital assets, which are becoming increasingly pivotal in today’s digital age.

Another noteworthy mention is the off-balance sheet token reserves associated with Animoca Brands’ majority-owned Web3 subsidiaries. These reserves have reached a staggering A$2.4 billion (about US$1.6 billion). This includes an array of tokens such as PROS, ASTRAFER, QUIDD, PRIMATE, REVV, TOWER, GMEE, and several others, reflecting the company’s diversified approach in the rapidly evolving blockchain space.

In terms of business expansion, 2022 was a landmark year for Animoca Brands. The company strategically acquired six firms, broadening its portfolio and fortifying its position in the market. These acquisitions include industry players like Grease Monkey Games, known for its prowess in game development, and PIXELYNX, a unique music metaverse gaming platform. Such acquisitions are a testament to Animoca’s vision of integrating diverse digital platforms to offer unparalleled user experiences.

The introduction of Web3 services by Animoca Brands in 2022 is a significant stride towards bridging the gap between traditional web platforms (Web2) and blockchain-based platforms (Web3). With this venture, the company aims to guide other businesses in seamlessly integrating tokens and NFTs into their existing models. This initiative alone contributed a whopping US$120 million to the total bookings for the year, underscoring its success and potential for future growth.

On the leadership front, the company has infused fresh talent into its senior management. The induction of industry stalwarts like Alan Lau, Minh Do, and Jared Shaw is expected to steer the company towards newer horizons.

Product development has also been in the limelight, with Blowfish Studios’ “Phantom Galaxies” making waves by securing US$19.3 million from its Planet Private Sale.

In conclusion, Animoca Brands, with its recognition from industry giants like Deloitte and the Financial Times, continues to shape the digital landscape. Its vast portfolio, strategic acquisitions, and focus on innovation position it as a formidable player in the digital property rights domain and the burgeoning open metaverse.

The Sandbox Appoints Nicola Sebastiani as Chief Content Officer

On 17 October 2023, The Sandbox (crypto symbol: SAND), a leading decentralized virtual world platform and a subsidiary of Animoca Brands, welcomed Nicola Sebastiani as its new Chief Content Officer, marking a significant stride in its global content development endeavor. The announcement also introduced two other executive reshuffles within the organization.

Nicola Sebastiani, with a rich history in the gaming industry from Sony PlayStation Studios and Apple, steps into a crucial role aimed at nurturing the content and creator ecosystems within The Sandbox. The move aligns with the platform’s broader strategy to foster a vibrant community of content creators, game studios, and brand partners, thereby enriching its virtual world with a myriad of content spanning different styles.

In his new capacity, Sebastiani will liaise with The Sandbox’s global community to publish varied content, ranging from single-player games to social hubs infused with community reward mechanisms and innovative game formats. He will also have oversight on game publishing and in-house game production for The Sandbox’s partners. This network encompasses over 250 agencies and studios in The Sandbox’s Partners Program and more than 400 brand partners across diverse sectors such as entertainment, music, lifestyle, fashion, education, social impact, and gaming.

Moreover, Sebastiani is tasked with spearheading the development of Game Maker and VoxEdit, the platform’s no-code creator tools, and to build upon the success of The Sandbox’s Game Jam events. These events serve as a melting pot for game designers and creator communities, cultivating new interaction points for existing brands and celebrities, and steering interactive content that resonates with evolving audience preferences.

Before joining The Sandbox, Sebastiani was instrumental in steering PlayStation Studios’ mobile games strategy, serving as the Vice President and Head of Mobile. His tenure at Apple also saw him as the Head of Games Business Development for the App Store before propelling the launch of Apple Arcade as its Head of Content. His extensive experience in the gaming realm aligns seamlessly with The Sandbox’s mission to empower a fresh generation of creators in building engaging and socially enriching virtual experiences.

In addition to Sebastiani’s appointment, The Sandbox announced the promotion of Mathieu Nouzareth from CEO of North America to Chief Business Officer, tasked with overseeing global business strategy. Simultaneously, Amit Kumar transitions from Chief Growth Officer to Chief Marketing Officer, aligning with the platform’s vision to expand its global community through diverse ecosystem partnerships.

This executive reshuffling comes at a time when The Sandbox celebrates a notable milestone of 5 million registered wallets. It anticipates rolling out self-publishing for all landowners by year’s end, amplifying the reach of its virtual platform for user-created and monetized experiences. The strategic appointments aim to inject new vigor into The Sandbox’s mission of promoting interoperability and user-generated content in its open metaverse platform.