Crypto Weekly Roundup: BitClout Founder Faces Charges, Compound Faces Governance Attack, & More

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As a seasoned analyst with over two decades of experience in the financial industry, I’ve seen my fair share of market volatility and regulatory actions. The recent events surrounding Bitcoin, DeFi, and Regulations have once again proven that this space is no exception to the rule: “The more things change, the more they stay the same.”

The creator of BitClout, Nader Al-Naji, is under investigation by both the SEC and DoJ for allegations involving wire fraud and securities law violations. Meanwhile, Compound Finance is grappling with a $24 million dispute concerning governance issues. Moreover, the U.S. government transferred approximately $2 billion in Bitcoin, leading to a 4% decrease in its market value. Let’s delve deeper into these developments.

Bitcoin

Following Presidential candidate Donald Trump’s assertion at the Bitcoin 2024 conference that he wouldn’t seize US Silk Road Bitcoin ($BTC), authorities surprisingly moved $2 billion worth of it into an unrecognized digital wallet within just two days. This announcement led to a 4% drop in Bitcoin’s value.

At the Bitcoin Conference in 2024, Cantor Fitzgerald unveiled their intentions to establish a $2 billion Bitcoin lending program. This initiative aims to provide Bitcoin owners with access to borrowing options and enhanced safety measures.

DeFi

A heated debate about spending $24 million from Compound Finance’s reserves has led to accusations that a few token owners are trying to manipulate governance, causing worry about the fairness of the platform’s decision-making process.

Technology

Polkadot‘s governance system enables the protocol to adapt and progress in accordance with the desires of its stakeholders, thereby ensuring that a majority of these stakeholders control the network.

Business

At the largest Web3 festival in Asia, Coinfest Asia 2024, taking place in Bali, Indonesia on August 22nd and 23rd, 2024, Polkadot has secured the main sponsorship role. This event, expected to draw over 6,000 attendees and 250 speakers, promises to be a significant gathering. Notable teams from the Polkadot ecosystem, such as Mandala Chain, Scytale Digital, Bifrost Omnichain, Kilt Protocol, The Kusamarian, and others, will be present at this exciting event.

Web3

One of the most prominent football teams globally, Manchester United, has teamed up with Tezos to debut the first Web3 fantasy football game in the Premier League. This game, built on the Tezos blockchain, enables supporters to oversee and virtually control Manchester United players. The objective is to boost fan interaction by offering unique, interactive collectibles.

As a researcher, I am thrilled to share that we have formed a strategic alliance with Space and Time (SxT), a robust computing layer specializing in verifiable processes across the blockchain spectrum. This collaboration empowers us to utilize SxT as our zero-knowledge co-processor, enabling us to implement a trustless mechanism for slashing penalties and reward distribution within our Distributed Secure Services network.

Regulations

According to reports, the founder of BitClout, Nader Al-Naji, is facing charges from both the SEC and DoJ for alleged wire fraud and securities law violations. The SEC claims that Al-Naji misused approximately $257 million in investor funds, using it for personal expenses such as renting a mansion in Beverly Hills and lavishing gifts on family members, totaling over $7 million.

In a recent decision, the Appellate Court of Montenegro chose to hand over Terraform Labs’ founder, Do Kwon, to South Korea. This choice was made despite a separate demand from the U.S. However, it is important to note that as of now, no date for this extradition has been established.

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2024-08-04 13:07