– New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, the former CEO and co-founder of Celsius Network LLC, for allegedly misleading investors about billions of dollars of cryptocurrency.
– The lawsuit demands damages, restitution, and disgorgement, as well as a ban from Mashinsky from doing business in New York, citing multiple violations.
– Mashinsky allegedly misled investors about Celsius’s safety to lure them into depositing billions of dollars, misrepresented and concealed Celsius’s deteriorating financial condition, and failed to register as a Celsius salesperson or a securities and commodities dealer.

The Attorney General of New York, Letitia James, has filed a lawsuit against Alex Mashinsky, the former CEO and co-founder of Celsius Network LLC, for allegedly misleading investors about billions of dollars of cryptocurrency. The lawsuit seeks to hold Mashinsky accountable for his alleged actions, demanding damages, restitution, and disgorgement, as well as a ban from him from doing business in New York.

According to the lawsuit, Mashinsky is accused of making false and deceptive statements about Celsius’s safety, its number of users, and its investment strategies to attract investors. During his appearances at cryptocurrency conferences and social media to promote Celsius, he allegedly claimed that Celsius was safer than a bank, and as a result, many investors lost funds. Additionally, Mashinsky is accused of misleading investors about Celsius’s safety to lure them into depositing billions of dollars, misrepresenting and concealing Celsius’s deteriorating financial condition, and failing to register as a Celsius salesperson or a securities and commodities dealer.

The lawsuit states that Mashinsky’s alleged actions „have caused immense harm to investors and the larger cryptocurrency community“. It also claims that Mashinsky has been „unjustly enriched“ and seeks to make him pay for the damages he caused.

This is not the first time the New York Attorney General has taken action against crypto firms. In the past, it has gone after companies such as Bitfinex and Tether for allegedly manipulating the crypto markets.

The lawsuit against Mashinsky is an important step in protecting investors from unscrupulous actors in the cryptocurrency space. It is a reminder that investors need to do their due diligence and research projects before investing, as there are still many bad actors in the space who are looking to take advantage of unsuspecting investors.

• HiFi Finance and Crown Ribbon are partnering to tokenize real-world assets, such as horse syndicates, on the blockchain.
• Tokenization of real-world assets will allow a broader audience to invest and gain financial exposure to experiences such as horse ownership and can also serve as a growth tool for syndicates.
• HiFi Finance is a decentralized lending and borrowing protocol that offers fixed-rate loans.

In this episode of the Slatecast, host Akiba and Doug from HiFi Finance discussed the potential impact of decentralized finance (DeFi) on tangible real-world assets through tokenization. HiFi Finance is a decentralized lending and borrowing protocol that offers fixed-rate loans, and its partnership with Crown Ribbon aims to bring horse syndicates onto the blockchain and offer token holders a unique, SEC-compliant security that pays dividends.

Crown Ribbon provides the legal guidance and assistance necessary to make the process a reality. This includes filing exemptions with the SEC, acting as custodian for the ownership papers of the horses, and handling the issuance and audit of digital assets. The goal is to provide liquidity to syndicate owners and disrupt the performance horse industry. Doug noted that although horse syndicates may not be the most technologically savvy, the user experience can be made more accessible through widgets and ACH payments.

Tokenization of real-world assets provides a variety of benefits. It allows a broader audience to invest and gain financial exposure to experiences such as horse ownership, which can serve as a growth tool for syndicates. Furthermore, it provides investors with the opportunity to trade in fractionalized assets and to receive dividends from their tokenized assets.

The process of tokenizing real-world assets is still in its early stages; however, it has the potential to revolutionize the way assets are valued and traded. The partnership between HiFi Finance and Crown Ribbon is just one example of how tokenization can bring tangible assets onto the blockchain, and it will be interesting to see how the process evolves in the future.

• The cryptocurrency market cap experienced minor net inflows of around $740 million over the past 24 hours and currently stands at $807.70 billion — up 0.07%.
• Bitcoin and Ethereum’s market caps decreased by 0.01% to $322.15 billion and 0.15% to $148.80 billion, respectively.
• The top 10 cryptocurrencies traded flat during the last 24 hours, with the majority posting gains of less than 1%.

The cryptocurrency market has seen a positive start to the new year, with overall market cap increasing slightly in the past 24 hours. According to CryptoSlate, the market cap of the entire cryptocurrency market was up 0.07% over the reporting period, with net inflows of around $740 million.

Leading the market were Bitcoin and Ethereum, which experienced slight drops in their market caps. Bitcoin’s market cap decreased by 0.01%, while Ethereum’s decreased by 0.15%. Despite this, both digital assets maintained their respective prices of around $16,735 and $1,215.

The top 10 cryptocurrencies traded flat during the last 24 hours, with the majority posting gains of less than 1%. Tether’s market cap remained flat at $66.24 billion, while USD Coin (USDC) marginally increased to $44.72 billion. BinanceUSD (BUSD) dropped to $16.43 billion.

The positive start to the new year is indicative of the bullish sentiment of the market as investors look ahead to the 2021 bull run. Bitcoin, Ethereum and other digital assets are expected to see significant price growth over the coming months as institutional investors continue to enter the market and increase demand.

Overall, the cryptocurrency market appears to be on a positive trajectory heading into the new year. With institutional investors increasing their exposure to the market, it is likely that the market cap and prices of digital assets will continue to grow throughout 2021.

• Bitcoin core developer Luke Dashjr lost 216 BTC ($3.6 million) to the compromise of his PGP key.
• Blockchain explorer showed that the wallet transacted four times and holds 216.93 BTC as of press time.
• Crypto-security experts have raised several theories behind the compromise, ranging from the possibility of a backdoored software to a data breach.

On January 1st, Bitcoin core developer Luke Dashjr revealed on Twitter that he had lost “basically” all of his Bitcoin stash due to the compromise of his PGP key. While Dashjr did not reveal the exact amount of BTC he lost, blockchain explorer showed that the wallet he was associated with transacted four times and holds 216.93 BTC, worth roughly $3.6 million, as of press time.

Dashjr added that his attempts to reach out to law enforcement agencies had been unsuccessful so far. This led to crypto-security experts from the community trying to explain the incidence. Blockchain engineer Peter Todd posited that Luke might not have been a victim of a targeted hack and that he didn’t keep different activities separated, which could have been one of the ways he was compromised. Meanwhile, other members of the community pointed out that Dashjr previously said his server was compromised on November 17th, 2022, and questioned if he used LastPass, which suffered a data breach in December 2022 that led to its users‘ data loss.

The incident has certainly been a tough lesson for Dashjr, and a reminder to the rest of the crypto community to always be vigilant and take the necessary steps to protect their crypto assets. Keeping one’s activities and accounts separate, using secure and trusted password managers, and not sharing PGP keys with anyone are just some of the steps that everyone should be taking to ensure the safety of their funds.

• BTC and ETH bear market started in mid-2021, months before the all-time highs in November 2021.
• Active addresses suggest the bear market could have started in mid-2021, months before BTC and ETH attained all-time highs.
• Analyzing address activity can help to gauge the activity in the ecosystem or how well the ecosystem is being used.

The cryptocurrency market has been on an unstoppable ride in the past few years, particularly in 2021. After the bear market in 2018, Bitcoin (BTC) and Ethereum (ETH) have been on the rise, with BTC reaching an all-time high of over $68,600 on Nov. 10, 2021, according to CryptoSlate data. On the same day, Ethereum (ETH) also reached an all-time high price of $4,864.11, CryptoSlate data shows.

However, a closer look at the data on active addresses reveals a different story. Active addresses indicate that the bear market set in months before BTC and ETH prices attained all-time highs in November 2021. Analyzing address activity can help to gauge the activity in the ecosystem or how well the ecosystem is being used.

Between January and May 2021, active BTC addresses hovered around the 1.2 million mark, breaching it twice in the five months and reaching as high as over 1.3 million, according to Glassnode data. But in June 2021, active Bitcoin addresses reached a low of around 500,000, which could be indicative of the bear market setting in.

Similarly, the number of active Ethereum addresses also started to decline in June 2021. By August, the number of active Ethereum addresses had fallen to its lowest level since January 2021, according to Glassnode data. This could be indicative of investors moving out of the market, as they had already begun to sense the bear market.

The bear market has been further corroborated by the declining Bitcoin volumes. Bitcoin volumes have been on the decline since December 2021, according to Glassnode data. The same trend is being seen in Ethereum volumes, as they have also been declining since January 2021.

The bear market is further evidenced by the declining open interest in the derivatives markets. The open interest in the Bitcoin futures market has been on the decline since December 2021, according to Skew data. Similarly, the open interest in Ethereum futures has also been declining since January 2021, Skew data shows.

It is clear that the bear market set in months before BTC and ETH prices attained all-time highs in November 2021. The declining active addresses, volumes, and open interest in the derivatives market all indicate that the bear market had already set in. As investors become more cautious, it is likely that the bear market will continue into 2022.

Bullet Points:
• Sam Bankman-Fried, founder and former CEO of FTX, denies accessing funds related to the Alameda cryptocurrency addresses.
• Bankman-Fried is facing criminal charges, but will likely plead not guilty at his next hearing on Jan. 3.
• Bankman-Fried is willing to cooperate with authorities to investigate the matter.

Sam Bankman-Fried, the founder and former CEO of FTX, recently returned to Twitter to deny accessing funds related to the Alameda cryptocurrency addresses. This comes after several batches of assets were moved from those addresses on Dec. 28 to crypto mixers, amounting to at least $1.7 million.

Bankman-Fried made it clear that he doesn’t have access to the funds anymore, but suggested that “various legit legs of FTX” can access them. He also offered to “advise regulators” in the investigation of the matter. Bankman-Fried’s willingness to cooperate is likely due to the criminal charges he’s facing, which could lead to a plea deal similar to those obtained by his associates Caroline Ellison and Gary Wang.

However, one former federal prosecutor believes that Bankman-Fried is unlikely to be given a favorable deal due to his lead role in FTX’s alleged fraud. Bankman-Fried’s next hearing is set for January 3, and according to sources, he will plead not guilty. This could be Bankman-Fried’s way of attempting to negotiate a plea deal that is more favorable to him.

Regardless of the outcome, Bankman-Fried’s case is a cautionary tale for those operating in the cryptocurrency space. His willingness to cooperate with authorities is a reminder that it is important to remain compliant with the law, even if the potential for large profits exists.

• Valkyrie Investments has proposed to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC).
• Valkyrie plans to offer orderly redemptions at net asset value, reduce fees, and offer redemptions in both Bitcoin and cash.
• Grayscale intends to convert GBTC into an ETF, though its past attempts to do so have been rejected.

Valkyrie Investments recently announced its proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC). GBTC is the largest Bitcoin investment fund, valued at 643,572 BTC ($10.6 billion) at the time of the announcement. However, the fund has been facing trouble recently, as it was trading at 50% less than the value of the Bitcoin it holds.

Valkyrie provided details of its proposal, which seeks to improve upon the operation of GBTC. The company aims to offer orderly redemptions at net asset value (NAV), allowing customers to withdraw their funds at a fair value. This would ensure that customers do not encounter any issues when trying to withdraw their funds. Additionally, Valkyrie plans to reduce GBTC fees, and offer redemptions in both Bitcoin and cash.

The company also said that it is launching the Valkyrie Opportunistic Fund LP, which will take advantage of the discrepancy between GBTC and the NAV. Valkyrie asked Grayscale to consider its proposal, which it believes is a “significant improvement” over the current management of GBTC.

Grayscale has its own plans for GBTC. The firm intends to convert the fund into an ETF, though its past attempts to do so have been rejected by the U.S. SEC. Grayscale has also suggested other possibilities, including a tender offer for up to 20% of outstanding shares.

Valkyrie’s proposal comes at an interesting time for Bitcoin, as the cryptocurrency continues to surge to new highs. It will be interesting to see how Grayscale responds to Valkyrie’s proposal, and whether or not the company will be able to improve upon the operation of GBTC. Regardless, it is clear that the Bitcoin investment fund has a bright future ahead.

• The total supply of wallets holding between 0.1 Bitcoin (BTC) and 1 Bitcoin has surpassed 1 million coins.
• Wallets with 1 – 10 BTC have also broken its own all-time high by surpassing 2 million.
• As of Dec. 29, wallets that hold between 0,1 BTC and 1 BTC collectively own over 1 million coins.

Wallets that hold Bitcoin have seen a steady increase in total supply over the past few years. As of December 29th, the total supply of wallets holding between 0.1 Bitcoin (BTC) and 1 Bitcoin has surpassed 1 million coins, while the collective supply of wallets that hold between 1 BTC and 10 BTC topped 2 million.

The total BTC supply held in wallets with 0.1 BTC to 1 BTC has had a stable growth since late 2013, with short exponential growth periods in 2016 and 2018. As of December 29th, the total supply sits at 1.01 million BTC. In addition, wallets with 1 – 10 BTC have also broken its own all-time high by surpassing 2 million as of December 30th. The total BTC supply held by these wallets is 2.06 BTC.

The increase in total BTC supply held by wallets has been exponential since late 2011. The chart below represents the total supply held by wallets with 0.1 BTC to 1 BTC since 2010 with the orange line.

The chart above demonstrates the increase in the total BTC supply held by wallets that hold between 1 BTC and 10 BTC since 2010. This metric recorded an upwards spike in late 2011 and has continued its exponential growth since then.

Overall, the total supply of wallets that hold Bitcoin has seen a steady increase over the past few years. As of December 29th and 30th, the total supply of wallets holding between 0.1 Bitcoin (BTC) and 1 Bitcoin has surpassed 1 million coins, while the collective supply of wallets that hold between 1 BTC and 10 BTC topped 2 million. This exponential growth signals a positive trend for the future of Bitcoin and cryptocurrency.

-Hundreds of users of Celsius, FTX, and Voyager have chosen to sell their bankruptcy claims for a fraction of their value rather than go through a lengthy bankruptcy process.
-Firms specializing in buying bankruptcy claims have taken advantage of those wishing to move on by offering deals.
-Mt. Gox serves as a reminder of the long and drawn-out process of bankruptcy administration, with users only now preparing to receive their remaining assets eight years later.

Investors are currently looking to take advantage of those wishing to avoid a drawn-out bankruptcy process by offering to purchase their claims for a fraction of their value. This has been seen with recent customers of Celsius, FTX, and Voyager, who have opted to sell their claims rather than having to wait out the lengthy bankruptcy process.

Firms specializing in acquiring bankruptcy claims, such as Cherokee Acquisition and Xclaim, have taken advantage of those who wish to move on. Cherokee Acquisition reported that creditors holding over a billion dollars with FTX, and $100 million at Celsius, have approached them for deals. Similarly, Xclaim have offered their services as a marketplace for buyers and sellers of bankruptcy claims, allowing them to negotiate a deal.

The example of Mt. Gox serves as a reminder of the long and drawn-out process of bankruptcy administration. The Bitcoin exchange shut down in 2014 after being hacked for a reported 650,000 to 850,000 BTC, with users only now preparing to receive their remaining assets eight years later. This uncertainty and the potential for a long wait, has led to some creditors being willing to sell their claims at a loss.

For those who do decide to go through the bankruptcy process, there is no guarantee of a successful outcome. The assets remaining at Celsius, FTX, and Voyager are unknown, and outcomes can vary drastically depending on the complexity of the case.

With the potential of a lengthy wait and no guarantee of a successful outcome, it is unsurprising that some customers have opted to move on by selling their bankruptcy claims for a fraction of their value. This has allowed them to put the ordeal behind them and move on with their lives, while also benefiting those looking to take advantage of the situation.