218 days ago • cryptodaily
Nomura, CoinShares, Ledger-Backed Komainu Receives VARA License
Crypto custody joint venture Komainu announced it received a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA).
Komainu, the joint venture (JV) between Nomura, Ledger, and CoinShares, has been awarded a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The operating license allows Komainu to offer its full range of custody services.
Komainu To Offer Full Range of Custody Services
In a press release, the digital asset custody service provider announced that it had been granted the operational license after securing its MVP license in November 2022. Komainu said that achieving “this final step in VARA’s licensing process allows Komainu to offer its full suite of custody services,” which includes institutional staking and collateral management through its Komainu Connect platform to clients in Dubai.
Komainu’s Head of Strategy, Sebastian Widmann, said in the press release:
“We see tremendous opportunities to scale our business here amid a significant boom in assets driven by fund formation and exchange launches.”
Adding,
“Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business.”
The regulated digital asset custodian was built by “institutions for institutions” and came into existence as a JV between digital asset manager CoinShares, digital security company Ledger, and Nomura. The custodian, established in 2018, offers regulatory complaint multi-asset support. Komainu launched in June 2020 and provides custody services to exchanges, financial institutions, asset managers, government agencies, and corporations.
Nomura Holdings announced recently that its subsidiary, Laser Digital Middle East FZE, received a full crypto license in Dubai. Laser Digital’s license allows the firm to offer Virtual Asset Broker-Dealer Services and Virtual Asset Management and Investment Services.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
218 days ago • cryptodaily
Nomura, CoinShares, Ledger-Backed Komainu Receives VARA License
Crypto custody joint venture Komainu announced it received a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA).
Komainu, the joint venture (JV) between Nomura, Ledger, and CoinShares, has been awarded a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The operating license allows Komainu to offer its full range of custody services.
Komainu To Offer Full Range of Custody Services
In a press release, the digital asset custody service provider announced that it had been granted the operational license after securing its MVP license in November 2022. Komainu said that achieving “this final step in VARA’s licensing process allows Komainu to offer its full suite of custody services,” which includes institutional staking and collateral management through its Komainu Connect platform to clients in Dubai.
Komainu’s Head of Strategy, Sebastian Widmann, said in the press release:
“We see tremendous opportunities to scale our business here amid a significant boom in assets driven by fund formation and exchange launches.”
Adding,
“Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business.”
The regulated digital asset custodian was built by “institutions for institutions” and came into existence as a JV between digital asset manager CoinShares, digital security company Ledger, and Nomura. The custodian, established in 2018, offers regulatory complaint multi-asset support. Komainu launched in June 2020 and provides custody services to exchanges, financial institutions, asset managers, government agencies, and corporations.
Nomura Holdings announced recently that its subsidiary, Laser Digital Middle East FZE, received a full crypto license in Dubai. Laser Digital’s license allows the firm to offer Virtual Asset Broker-Dealer Services and Virtual Asset Management and Investment Services.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
224 days ago • cryptodaily
No More On-Chain Royalty Enforcement On OpenSea
NFT marketplace OpenSea will be sunsetting its on-chain royalty enforcement tool, Operator Filter.
Operator Filter Falls Short Of Expectations
On Thursday, OpenSea announced on X (formerly Twitter) that it would be removing the Operator Filter tool from its platform. The tool was introduced on the platform back in November 2022 to allow creators to blacklist NFT marketplaces that didn't adhere to royalty enforcement standards. However, according to founder and CEO Devin Finzer, the tool's effectiveness fell short of expectations.
Starting August 31, the Operator Filter will cease to block any marketplaces. For existing collections on non-Ethereum blockchains and those currently using the tool, creator fees will remain enforced until February 29, 2024.
Finzer clarified,
"To be clear, creator fees aren’t going away — simply the ineffective, unilateral enforcement of them."
Operator Filter Rendered Useless
The Operator Filter, touted as a "simple code snippet," aimed to limit NFT sales exclusively to marketplaces that upheld creator fees. Yet, its impact didn't align with the aspirations of its creators, as Finzer pointed out that the NFT ecosystem's support for the tool was insufficient.
Additionally, certain NFT marketplaces like Blur, Dew, and LooksRare managed to bypass the filter by integrating Seaport Protocol, which helped them circumvent OpenSea's blacklist and thus avoid creator fees.
Creator Concerns and Redirecting Efforts
Creators themselves expressed concerns about the Operator Filter infringing upon their control over where their collections were sold.
He said,
“We have heard from some creators that the Operator Filter limits their sense of control over where their collections are sold, and at the same time may collide with a collector’s expectation of full ownership…The Operator Filter’s restrictions come at the expense of decentralized ownership.”
Finzer also emphasized that while creator fees play a role in specific business models, they constitute only one among many revenue streams available to creators. OpenSea is redirecting its efforts toward enabling new use cases, such as digital and physical redeemables, and promoting these use cases more effectively in primary and secondary experiences.
Mixed Reactions from the NFT Community
This decision from OpenSea holds implications for NFT artists seeking passive income. Some creators expressed disappointment, suggesting that collectors should support them on platforms that enforce royalties.
However, a Reddit avatar artist posited that the move might have been prudent, as the existing business model appeared to profit excessively from hype trading.
OpenSea's cessation of the Operator Filter reflects a shift in approach to NFT market dynamics. While the decision might disappoint some in the NFT community, the move aims to strike a balance between creator autonomy and the evolving landscape of NFT technology applications.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
224 days ago • cryptodaily
No More On-Chain Royalty Enforcement On OpenSea
NFT marketplace OpenSea will be sunsetting its on-chain royalty enforcement tool, Operator Filter.
Operator Filter Falls Short Of Expectations
On Thursday, OpenSea announced on X (formerly Twitter) that it would be removing the Operator Filter tool from its platform. The tool was introduced on the platform back in November 2022 to allow creators to blacklist NFT marketplaces that didn't adhere to royalty enforcement standards. However, according to founder and CEO Devin Finzer, the tool's effectiveness fell short of expectations.
Starting August 31, the Operator Filter will cease to block any marketplaces. For existing collections on non-Ethereum blockchains and those currently using the tool, creator fees will remain enforced until February 29, 2024.
Finzer clarified,
"To be clear, creator fees aren’t going away — simply the ineffective, unilateral enforcement of them."
Operator Filter Rendered Useless
The Operator Filter, touted as a "simple code snippet," aimed to limit NFT sales exclusively to marketplaces that upheld creator fees. Yet, its impact didn't align with the aspirations of its creators, as Finzer pointed out that the NFT ecosystem's support for the tool was insufficient.
Additionally, certain NFT marketplaces like Blur, Dew, and LooksRare managed to bypass the filter by integrating Seaport Protocol, which helped them circumvent OpenSea's blacklist and thus avoid creator fees.
Creator Concerns and Redirecting Efforts
Creators themselves expressed concerns about the Operator Filter infringing upon their control over where their collections were sold.
He said,
“We have heard from some creators that the Operator Filter limits their sense of control over where their collections are sold, and at the same time may collide with a collector’s expectation of full ownership…The Operator Filter’s restrictions come at the expense of decentralized ownership.”
Finzer also emphasized that while creator fees play a role in specific business models, they constitute only one among many revenue streams available to creators. OpenSea is redirecting its efforts toward enabling new use cases, such as digital and physical redeemables, and promoting these use cases more effectively in primary and secondary experiences.
Mixed Reactions from the NFT Community
This decision from OpenSea holds implications for NFT artists seeking passive income. Some creators expressed disappointment, suggesting that collectors should support them on platforms that enforce royalties.
However, a Reddit avatar artist posited that the move might have been prudent, as the existing business model appeared to profit excessively from hype trading.
OpenSea's cessation of the Operator Filter reflects a shift in approach to NFT market dynamics. While the decision might disappoint some in the NFT community, the move aims to strike a balance between creator autonomy and the evolving landscape of NFT technology applications.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
227 days ago • cryptodaily
SBF Charged With Using Stolen Funds For Political Donations
FTX founder Sam Bankman-Fried is in the news once again after a recent development revealed that he had allegedly used stolen customer funds to donate over $100 million to political campaigns.
FTX Founder's Troubles Deepen
Federal prosecutors have filed a fresh indictment against Bankman-Fried, charging him with seven counts of conspiracy and fraud related to the collapse of his crypto exchange. According to the indictment, Bankman-Fried contributed over $100 million of funds stolen from customer accounts on the FTX exchange to donate to political campaigns in the run-up to the 2022 U.S. midterm elections to influence softer crypto legislations.
The former CEO of the defunct crypto exchange is already under legal scrutiny over charges of pilfering billions in FTX customer funds to offset losses at Alameda Research, his crypto-focused hedge fund.
Political Leanings And Opaque Donations
The 31-year-old entrepreneur, who previously pleaded not guilty to the initial charges, is now confronted with new allegations that he misappropriated customer funds for political donations.
Bankman-Fried reportedly made substantial political donations in 2022, with a CBS News analysis suggesting the figure exceeded $40 million. Although the majority of these contributions were made to Democratic candidates and causes, he stated that Bankman-Fried had also supported Republicans through undisclosed "dark" donations.
Lobbying Efforts And Hidden Agendas
The indictment highlights Bankman-Fried's alleged use of FTX's influence and connections to push for cryptocurrency-friendly regulations. He purportedly directed fellow FTX executives to make donations aimed at circumventing contribution limits, with the goal of supporting legislation that would enable FTX to continue accepting customer deposits and growing its operations.
The indictment claims that Bankman-Fried orchestrated the donations in a covert manner, transferring funds from FTX's sister trading firm, Alameda, to the personal bank accounts of FTX executives. These executives would then make donations under their own names, evading restrictions on certain political contributions and enhancing FTX's political clout.
Legal Maneuvering And Upcoming Trial
While prosecutors initially charged Bankman-Fried with violating U.S. campaign finance laws, they later dropped this charge in light of the Bahamas' refusal to extradite him on that basis. Despite this setback, prosecutors have indicated their intention to file a new indictment that would clarify the allegations of an illegal campaign finance scheme as part of the broader fraud and money laundering charges.
U.S. District Judge Lewis Kaplan ordered Bankman-Fried's incarceration prior to his scheduled trial on October 2. The decision was made based on probable cause to believe that he tampered with witnesses on two occasions. Previously confined to his parents' home in Palo Alto, California, on a $250 million bond, Bankman-Fried now faces a more restrictive situation in the lead-up to his trial.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
227 days ago • cryptodaily
SBF Charged With Using Stolen Funds For Political Donations
FTX founder Sam Bankman-Fried is in the news once again after a recent development revealed that he had allegedly used stolen customer funds to donate over $100 million to political campaigns.
FTX Founder's Troubles Deepen
Federal prosecutors have filed a fresh indictment against Bankman-Fried, charging him with seven counts of conspiracy and fraud related to the collapse of his crypto exchange. According to the indictment, Bankman-Fried contributed over $100 million of funds stolen from customer accounts on the FTX exchange to donate to political campaigns in the run-up to the 2022 U.S. midterm elections to influence softer crypto legislations.
The former CEO of the defunct crypto exchange is already under legal scrutiny over charges of pilfering billions in FTX customer funds to offset losses at Alameda Research, his crypto-focused hedge fund.
Political Leanings And Opaque Donations
The 31-year-old entrepreneur, who previously pleaded not guilty to the initial charges, is now confronted with new allegations that he misappropriated customer funds for political donations.
Bankman-Fried reportedly made substantial political donations in 2022, with a CBS News analysis suggesting the figure exceeded $40 million. Although the majority of these contributions were made to Democratic candidates and causes, he stated that Bankman-Fried had also supported Republicans through undisclosed "dark" donations.
Lobbying Efforts And Hidden Agendas
The indictment highlights Bankman-Fried's alleged use of FTX's influence and connections to push for cryptocurrency-friendly regulations. He purportedly directed fellow FTX executives to make donations aimed at circumventing contribution limits, with the goal of supporting legislation that would enable FTX to continue accepting customer deposits and growing its operations.
The indictment claims that Bankman-Fried orchestrated the donations in a covert manner, transferring funds from FTX's sister trading firm, Alameda, to the personal bank accounts of FTX executives. These executives would then make donations under their own names, evading restrictions on certain political contributions and enhancing FTX's political clout.
Legal Maneuvering And Upcoming Trial
While prosecutors initially charged Bankman-Fried with violating U.S. campaign finance laws, they later dropped this charge in light of the Bahamas' refusal to extradite him on that basis. Despite this setback, prosecutors have indicated their intention to file a new indictment that would clarify the allegations of an illegal campaign finance scheme as part of the broader fraud and money laundering charges.
U.S. District Judge Lewis Kaplan ordered Bankman-Fried's incarceration prior to his scheduled trial on October 2. The decision was made based on probable cause to believe that he tampered with witnesses on two occasions. Previously confined to his parents' home in Palo Alto, California, on a $250 million bond, Bankman-Fried now faces a more restrictive situation in the lead-up to his trial.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
229 days ago • cryptodaily
Developers’ Commitment Shines As Uwerx Maintains Launch Momentum By Tackling Hack Challenge
Beyond its ground-breaking features, Uwerx's developers' agile methodology approach has significantly contributed to the project's success. They have been so committed to promoting Uwerx’s vision and purpose that investors and users could completely trust them and buy into the project.
This was part of why the Uwerx launch was overwhelmingly successful, surpassing expectations and initial forecasts. The developers are back to work and ready to take Uwerx to the next level.
However, they witnessed a setback as Uwerx was attacked. The team has yet again shown commitment by quickly and efficiently developing recovery strategies and plans. This article will detail the launch, updates, the hack, and Uwerx’s road to recovery.
Uwerx’s Successful Launch: Developers Set To Renounce Smart Contract Ownership
After so much anticipation, Uwerx finally launched on August 1, 2023. The launch was successful, as everyone wanted to become a WERX holder. Also, investors and users made tons of profits with all the bonuses that were up.
The developers released updates on what to expect next from Uwerx as soon as the launch ended. Uwerx has finally deployed liquidity on Uniswap. The Uwerx Vault, which received positive feedback from 84% of the community, will soon be available as the smart contracts await a thorough audit.
To show their commitment to Uwerx’s community, the developers immediately began the 25-year liquidity locking they promised to do once Uwerx launched. They are also ready to denounce smart contract ownership when Uwerx goes live on centralized exchanges. The team has submitted their applications to CoinMarketCap and CoinGecko to facilitate this.
The team is working to ensure the Uwerx platform is completed immediately. They are working on the core functionality design, focusing on Freelancer, Client, and Agency Dashboards, Project Management, and Additional Settings Pages.
Once this is finished, a Minimum Viable Product (MVP) with functions will be released to the community for testing. Based on the feedback obtained, they will proceed with the premium design.
There will be a buyback campaign that will scale accordingly to provide support for Uwerx. It will happen weekly, although the dates and times will not be released to avoid anyone taking unfair advantage of the system.
Uwerx Gets Exploited
On August 2, Uwerx reported it got hacked, with the hacker stealing around $327,000. The attacker flash-loaned 20,000 ETH, which he swapped for 5,053,637 WERX. He then sent 4,429,817 WERX to the Uniswap pool. This amount was ten times the prior balance.
Afterward, he used the skim() function of Uniswap with the address 0x00...1 as the “to” address. He also used the transfer function of the Uwerx contract, which first modifies a sender’s balance.
Since the “to” address was a UniswapPoolAddress (0x00...1), an extra 1% of the initial amount was burned. As a result, there was an imbalance that the attacker took advantage of to gain 176 ETH ($327,000).
Uwerx Maintains Momentum As It Sets To Relaunch
Despite the hack, Uwerx continues to shine as it devises ways to tackle the hack and maintain its momentum. Once they noticed the hack, they immediately alerted SolidProof and InterFiNetwork, their auditors. Also, the team contacted PeckShieldAlert and SlowMist_Team directly on Twitter.
The team began by putting out a white-hat bounty, stating the attacker should return 80% of the exploited funds and keep 20%.
A new WERX will be relaunched, and its platform will have more robust security measures. As to the relaunch, there will be a new contract address, which will be released to the community soon.
However, the contract address will be audited twice by reputable companies and once by an independent contractor. Due to a change in the contract address, the Uwerx Vault smart contracts are being altered, after which they will be audited before being released to the public.
The new WERX will be deployed on the Polygon network instead of Uniswap, on which it is currently deployed. This will enable token holders to easily use WERX on the Uwerxplatform without having to bridge, and it will also lower gas fees.
However, those who bought WERX on Uniswap will not be abandoned. The team has decided to airdrop the tokens at the end of the vesting period to ensure they still benefit. They also assure those who bought WERX during the presale that they are safe and will be unaffected by the relaunch.
The new WERX will be deployed with more liquidity. To do this, the funds reserved for the buyback campaign will be directed to liquidity. Also, the team is proposing a no-burn tax and a sliding sell tax, of which 100% will be directed to liquidity.
A poll is already up on Uwerx’s Twitter page and Telegram channel, asking the community if they support a sliding sell tax wholly directed to liquidity. Another poll also asks the community how long the vesting period should be.
These polls will end on August 13, after which the development of the new WERX will commence on August 14. The team also welcomes feedback or opinions, which can be sent to [email protected].
Also, there will be press releases this week and another major announcement on August 21 to update the community on the new WERX development and plans for the relaunch.
The Uwerx platform development is ongoing, and the team has completed certain sections like Settings, Security, Help Center, Login, Privacy Policy, Create Account, and Finished Payments.
The WERX allocations will also be changed, and the new allocation is:
● Presale: 57% (427,500,000)
● User Performance Incentives: 6% (45,000,000)
● Liquidity Reserve: 14% (105,500,000)
● Marketing: 9% (67,500,000)
● Team Tokens: 6% (45,000,000)
● Partnership Incentives: 2% (15,000,000)
● Joining Incentives: 6% ( 45,000,000)
At the end of the presale, 25,499,071 WERX will be burned. The airdrop and vesting schedules were shifted, and the new schedules have been released. Uwerx’s whitepaper will also be modified to reflect the ongoing changes.
Uwerx is on to big things, and once the polls are concluded on August 13, the team will announce the specific details of the new WERX, as they are committed to launching it as soon as possible.
Uwerx’s dedication throughout this period has been incredible. Their efforts in tackling this challenge have removed all forms of doubt and fear the community initially had. No wonder its community has continued to gather momentum, growing to over 2,500 Telegram members and 2,000 Twitter followers.
Uwerx remains focused on its vision, which is to be a change in freelancing, and no matter what, it is resolved to achieve this purpose. So why not throw in your support? Be a part of this value-driven community by following the links below:
Website: https://www.uwerx.network
Telegram: https://t.me/uwerx_network
Twitter: https://twitter.com/uwerx_network
Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
231 day ago • cryptodaily
Bittrex Settles With SEC, Pays Out $24m Fine
Crypto exchange Bittrex has agreed to a $24 million settlement with the U.S. Securities and Exchange Commission (SEC), bringing to a close allegations of offering unregistered securities to American investors.
The announcement, made on Thursday, comes within two months of Bittrex's bankruptcy filing and follows the trend of regulatory scrutiny facing cryptocurrency exchanges.
Bittrex's Position and SEC's Allegations
Bittrex, which filed for bankruptcy in May, was sued by the SEC earlier this year. The regulator's charges revolved around the simultaneous operation of the company as a securities exchange, broker, and clearinghouse without appropriate registration, allegations that have also been leveledd at Coinbase and Binance.US.
According to the settlement agreement, Bittrex neither admits nor denies the allegations. The terms also stipulate that Bittrex will have 90 days after its liquidation plan is effective to pay the SEC, and any delays may prompt the regulator to seek court judgment.
SEC Enforcement Director Gurbir Grewal said the following in an official statement:
"Today’s settlement makes clear that you cannot escape liability by simply changing labels or altering descriptions, because what matters is the economic realities of those offerings [as such]."
Context and Details of the Settlement
The case against Bittrex is rooted in its alleged role as an unregistered broker, exchange, and clearing agency in providing services to U.S. investors in connection with crypto assets. Part of the charges includes an accusation that Bittrex worked closely with token issuers to edit online statements to circumvent federal securities laws.
The settlement, subject to court approval, includes financial components: disgorgement of $14.4 million, prejudgment interest of $4 million, and a civil penalty of $5.6 million, culminating in a total monetary payment of $24 million.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, noted in his remarks that:
“[For years], Bittrex worked with token issuers to 'scrub' their online statements of any indicia that they were investment contracts—all in an effort to evade the federal securities laws. They failed.”
The settlement underscores the broader regulatory landscape and the SEC's vigilant stance against non-compliance in the crypto industry. The outcome serves as a reminder to other crypto exchanges of the necessity to adhere to existing regulations, in a market that continues to draw significant attention from both investors and regulators.
Bittrex's settlement with the SEC, centering on unregistered operationbs as a broker, exchange, and clearing agency, brings further focus to the compliance measures (and, by extension, frameworks designed to adapt specifically for crypto) necessary in the space. The detailed legal agreements and financial components of the settlement highlight the regulatory challenges and ongoing efforts to bring clarity to the industry.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.