Top Five Stories of the Week

Sen. Lummis Introduces Bitcoin Strategic Reserve Bill in Senate

On July 31, Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve Bill, proposing a significant shift in U.S. financial strategy by advocating for a governmental reserve of Bitcoin. The bill aims to direct the United States government to start a decentralized reserve fund, establishing a "decentralized network of secure Bitcoin vaults" under the control of the U.S. Treasury.

Goals and Security Measures

The ambitious bill aims to accumulate 1 million Bitcoin over time, representing about 5% of Bitcoin’s total supply. The acquisition will be funded using existing U.S. Treasury funds, mirroring the U.S. Treasury’s gold allocation system. Additionally, the bill outlines strict cybersecurity measures and physical security protocols to ensure the safety of Bitcoin funds from theft.

Reaffirming the Right to Self-Custody

An essential part of the bill is reaffirming the right to self-custody for U.S. citizens. This right has recently been contested by some U.S. lawmakers, and Lummis’ bill seeks to protect it from further legislative challenges.

Read more about the Bitcoin Strategic Reserve Bill on Cointelegraph.

Bitfinex Hacker Heather Morgan Spotted at Bitcoin Conference 2024

Heather Morgan, infamously known as the Bitfinex hacker, recently attracted attention by appearing at the Bitcoin 2024 conference in Nashville. This appearance came as a surprise since she had pleaded guilty to one of the most significant cyber heists in history, involving the theft of 120,000 Bitcoin in the 2016 Bitfinex hack.

Controversy and Community Reactions

Jameson Lopp, a Bitcoin developer, expressed concerns about her presence, suggesting that she might pose a risk and advising event organizers to deny her entry. Lopp speculated that she could be either seeking consulting gigs to pay her $250,000 government fine or collecting intelligence on behalf of the government to reduce her sentence.

Four Suspects Forced a Bitcoiner to Transfer BTC Before Killing Him, Police Say

In a tragic event in Kyiv, Ukraine, police arrested four suspects accused of kidnapping and murdering a 29-year-old foreign national Bitcoiner. The victim was forced to transfer $170,000 worth of Bitcoin before being killed.

Details of the Crime

The suspects, aged between 24 and 29, premeditated the attack and executed it around midnight on July 29. After forcing the victim to transfer approximately 2.55 BTC, they strangled him and buried his body in a forest. They altered the appearance and license plates of the car used, converted the Bitcoin into cash, but were eventually tracked down and detained by Kyiv Police.

Trump’s Bitcoin Sneakers Already on eBay for $2,500

Limited-edition Bitcoin-themed sneakers launched by Donald Trump quickly appeared on eBay, with sellers asking for as much as $2,500. The orange high-tops, priced initially much lower, sold out within three hours of their pre-order launch on July 31.

Market Reaction

While the resale market has seen listings from $700 to $2,500, the legitimacy of these listings is uncertain. Interestingly, five pairs of the limited edition shoes will be randomly signed by Trump, giving enthusiasts a 1 in 200 chance of acquiring a signed pair.

Judge Grants Ex-FTX Exec’s Request to Postpone Reporting to Prison

Ryan Salame, former co-CEO of FTX Digital Markets, has been granted a 45-day extension before reporting to prison. The delay stems from medical complications following a dog attack that occurred on June 29.

Legal Proceedings

Salame’s legal team cited the need for treatment and surgery following the mauling by a German Shepherd. Initially sentenced to 7.5 years in prison in May, Salame was originally supposed to report by Aug. 29 but will now do so by Oct. 13.

Winners and Losers

At the week’s end, major cryptocurrencies showed varied performances. Bitcoin (BTC) stood at $62,083, Ether (ETH) at $3,038, and XRP at $0.56. The total market cap reached $2.21 trillion, according to CoinMarketCap.

Top Gainers and Losers

• Top Gainers:

  • AAVE (AAVE): +14.02%
  • Bitcoin Cash (BCH): +4.14%
  • Kaspa (KAS): +2.45%
• Top Losers:
  • dogwifhat (WIF): -35.25%
  • Render (RENDER): -27.10%
  • Bittensor (TAO): -24.54%

For a detailed market analysis, visit Cointelegraph Market Analysis.

Most Memorable Quotations

• “The general premise is that if criminals are less aware of you, they are less likely to target you.” – Jameson Lopp, co-founder of Casa
• “There is no reason to think SEC has decided SOL is a non-security.” – Jake Chervinsky, chief legal officer at Variant
• “As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve.” – Cynthia Lummis, United States Senator
• “Politicians are embracing crypto because Americans are embracing crypto.” – Matt Hougan, Chief Investment Officer at Bitwise Asset Management
• “Tone deaf anyone??? Moving Silk Road BTC two days after Trump’s pledge to not move them is just dumb!!!!” – Mike Novogratz, CEO of Galaxy Digital
• “The SEC’s approach threatens the livelihoods of artists and creators that are simply experimenting with a novel, fast-growing technology or have chosen it as their preferred medium.” – David L. Patron, attorney at Phelps Dunbar

Prediction of the Week

Ethereum ETFs Could Reach $10B AUM in First Year: Sygnum Bank

Spot Ether exchange-traded funds (ETFs) could accumulate up to $10 billion in assets under management in their first year, according to Katalin Tischhauser, head of investment research at Sygnum Bank. She predicts Ethereum products will follow the success of Bitcoin ETFs.

Timeframe and Adoption

• Bitcoin ETFs: Expected inflows between $30 billion and $50 billion.
• Ethereum ETFs: Predicted inflows between $5 billion and $10 billion due to lower market capitalization and slower adoption.

FUD of the Week

SEC Likely Still Believes SOL is a Security, Say Crypto Execs

Despite the SEC retracting its request for a court determination on whether Solana (SOL) is a security in its Binance lawsuit, experts like Jake Chervinsky warn that the SEC hasn’t decided that SOL is a non-security. This perspective is shared by other legal experts who believe the SEC’s stance on SOL remains unchanged.

SEC Charges BitClout Founder Nader Al-Naji with Fraud

The SEC and the U.S. Attorney’s Office for the Southern District of New York have charged BitClout founder Nader Al-Naji with selling $257 million in unregistered securities and defrauding investors. Al-Naji allegedly misused funds to lease a Beverly Hills mansion and make lavish gifts.

Crypto Sleuth Investigates Suspect in Sydney Sweeney’s Hack

After actress Sydney Sweeney’s X account was hacked, pseudonymous on-chain sleuth ZachXBT identified convicted hacker Gurvinder Bhangu as one of the people behind the attack. Bhangu had previously hacked Instagram accounts and blackmailed users.

Top Magazine Stories of the Week

How Crypto Bots Are Ruining Crypto — Including Auto Memecoin Rug Pulls

Crypto bots, while essential for trading, also manipulate markets, ruin airdrops, and extract billions in Maximum Extractable Value (MEV), causing significant disruptions.

‘Elon Musk at Bitcoin 2024’ Scam, Lazarus Group Hacks, MOG Phishing: Crypto-Sec

Investors lost $79K to a deepfake Elon Musk scam at Bitcoin 2024. Other notable security breaches include hacking by the Lazarus Group and a phishing attack on MOG holders.

Backlash as WazirX ‘Socializes’ $235M Loss, $10B Metaverse Plan for Shut-ins: Asia Express

• Japan’s ‘hikikomori’ phenomenon presents a $10B opportunity in the metaverse.
• Binance is under time constraints in the Philippines for compliance.

FAQs

1. What is the Bitcoin Strategic Reserve Bill?

The Bitcoin Strategic Reserve Bill, introduced by Senator Cynthia Lummis, proposes establishing a U.S. government reserve of Bitcoin, focusing on accumulating 1 million Bitcoin and ensuring the safety of these assets with strict cybersecurity measures.

2. Who is Heather Morgan?

Heather Morgan, also known as the Bitfinex hacker, gained notoriety for her role in the 2016 Bitfinex hack, where 120,000 Bitcoin were stolen. Recently, she attracted attention by attending the Bitcoin 2024 conference.

3. Why was Ryan Salame’s prison reporting delayed?

Ryan Salame’s prison reporting for his involvement in the FTX scandal was delayed due to medical complications from a dog attack requiring surgery and treatment.

4. What are Ethereum ETFs, and why are they significant?

Ethereum ETFs are exchange-traded funds that track the performance of Ether, making it accessible to traditional investors. They are predicted to attract significant investment, with estimations reaching up to $10 billion in assets under management within their first year.

Conclusion

This week brought significant developments in the cryptocurrency world, from legislative proposals and high-profile appearances to tragic events and speculative market activities. As the market evolves, it remains crucial to stay informed and vigilant. For more detailed updates and analyses, make sure to visit credible sources and stay abreast of the latest in cryptocurrency developments.

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