G-7 Ministers Discuss Crypto Regulation and CBDCs

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TL: DR

• G-7 finance ministers discuss commitment to regulating crypto-assets and exploring CBDCs in Japan.
• Group calls for regulation, monitoring, and oversight of crypto while supporting innovation.
• Financial Stability Board (FSB) to finalize high-level recommendations for crypto regulation by July 2023.
• Eleven countries have launched CBDCs, with all G7 economies in the development stage.

The G-7 finance ministers met in Japan over the weekend to discuss their commitment to regulating crypto-assets and exploring central bank digital currencies (CBDCs). According to a press release, the group called for regulation, monitoring, and oversight of crypto while supporting innovation.

Keep an eye out for the Financial Stability Board (FSB) finalizing its high-level recommendations for crypto regulation by July 2023. The FSB, an international advisory body created by the G20, has expressed concerns about custodial wallet providers, exchanges, and liability around losing private keys.

The G-7 appears to be doubling down on these recommendations, committing to implementing effective regulatory and supervisory frameworks for crypto-asset activities and markets. Meanwhile, the group acknowledged that CBDCs could have a "substantial role" in a reliable global payment system. With eleven countries already launching CBDCs and all G7 economies in the development stage, it's clear that digital money is on the rise.

As of now, 114 countries representing over 95% of global GDP are exploring CBDCs, a significant increase from just 35 countries in May 2020.

In other news,

• Gov. Ron DeSantis bans CBDCs in Florida. Read more.
• SEC prepared to assist amid surge in enforcement actions for crypto startups. Read more.

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7-Day Market Moves

Road to recovery?

BTC is making a comeback after hitting a two-month low of $25,964 over the weekend. The dip was driven by network congestion and rising transaction costs caused by the popularity of Bitcoin Ordinals and the introduction of new BRC-20 memecoins like Pepe and Floki. Meanwhile, ETH experienced a 1.38% loss for the week.

In NFT news, Milady Maker, an Ethereum-based NFT collection, stole the spotlight with impressive sales following a tweet from none other than Elon Musk.

Looking ahead, all eyes are on President Joe Biden and congressional leaders as they meet to discuss raising the debt ceiling. The market is optimistic that a potential debt default can be avoided, and investors are keeping a close watch on the outcome of these discussions.

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BlockFi's Countdown to Liquidation and Potential Billion-Dollar Recovery Ride

TL: DR

• BlockFi is liquidating its crypto lending platform
• New Jersey bankruptcy court to determine eligible creditors for repayment claims on June 12, 2023.
• Creditors have until July 28, 2023, to support or reject BlockFi's restructuring plan; 100,000 customers among them.
• Client asset recovery depends on lawsuits against FTX, Alameda, and Three Arrows Capital.

Let’s kick things up with an update on BlockFi's ongoing bankruptcy saga. The company is gearing up to liquidate its crypto lending platform to repay creditors, as disclosed in a recent New Jersey bankruptcy court document. BlockFi was granted extra time in April to devise its bankruptcy plan, and the amended reorganization plan and disclosure statement were filed just last Friday.

Mark your calendars, as the court is set to determine eligible creditors for repayment claims on June 12, 2023. Creditors with voting rights will have until July 28, 2023, to either support or reject BlockFi's restructuring plan or choose to opt-out. Among the creditors are approximately 100,000 BlockFi customers.

According to BlockFi's legal team, client asset recovery hinges on lawsuits against firms accused of defrauding them, including FTX, Alameda, and Three Arrows Capital. If the litigation proves successful, some claims could see recoveries exceeding 90%, with total swings in client recoveries potentially surpassing a whopping $1 billion.

In a recent win for customers holding crypto in custodial, non-interest-bearing accounts, a judge greenlit the return of around $300 million in digital assets. This follows BlockFi's freezing of transfers in early November 2022 and subsequent bankruptcy declaration on November 28, 2022, in the wake of FTX's collapse.

In other news,

• BlockFi attributes over $1B in asset recoveries to claims against FTX, Alameda. Read more.
• Microsoft, Goldman Sachs, and more support Canton Network. Read more.
• SEC Chair Gensler Claims Existing Rules Can Regulate Crypto Amid Coinbase Dispute. Read more.

OpenAI's Sam Altman Raises $100M for Worldcoin

TL: DR

• Sam Altman's Worldcoin project is close to securing $100M in funding from investors like a16z, Digital Currency Group, and Coinbase Ventures.
• Worldcoin aims to create a collectively owned, globally distributed cryptocurrency and tackle AI complexity.
• The project plans to launch its blockchain protocol and record transactions within the next six weeks.
• A gas-free crypto wallet exclusively for verified humans has already been launched, focusing on simplicity.

OpenAI boss Sam Altman is reportedly close to securing a whopping $100 million in funding for Worldcoin, a project focused on creating a collectively owned, globally distributed cryptocurrency. According to a Financial Times report, the funds will come from a mix of existing and new investors, including big names like a16z, Digital Currency Group, and Coinbase Ventures.

Worldcoin, co-founded by Altman, Alex Blania, and Max Novendstern, aims to tackle the growing complexity of artificial intelligence. The project is gearing up to launch its blockchain protocol and start recording transactions within the next six weeks. Plus, they've already launched a gas-free crypto wallet exclusively for verified humans, focusing on simplicity.  

In other news,

• Irish Paper eats humble pie after botched AI generated post. Read more.
• Metaverse meets AI, Meta unveils its AI advances. Read more.
• Amazon is hiring AI Engineers to develop a ChatGPT-inspired search interface. Read more.

DOJ Drops the Hammer on Crypto Exchanges: No More Shady Business Allowed!

TL: DR

• US cryptocurrency enforcement ramps up scrutiny on crypto exchanges for illicit activities.
• DOJ's National Cryptocurrency Enforcement Team targets companies engaging in or allowing crimes like money laundering.
• Recent crackdown aims to send a "deterrent message" to businesses avoiding anti-money laundering and client identification rules.
• Justice Department also focuses on decentralized finance crimes, including "chain bridges" and vulnerable nascent projects.

The US Department of Justice (DOJ) is turning up the heat on cryptocurrency exchanges, targeting those that engage in or enable illicit activities like money laundering, according to the Financial Times. Eun Young Choi, director of the DOJ's National Cryptocurrency Enforcement Team (NCET), aims to send a "deterrent message" to businesses skirting anti-money laundering and client identification rules.

Remember the DOJ's March charge against Minh Quoc Nguyen for money laundering and identity theft? Well, they're just getting started. Choi emphasized that a company's size won't shield it from potential charges, and the crackdown will also focus on decentralized finance crimes, including "chain bridges" and projects with vulnerable codes. It's time for the crypto world to step up its compliance game!

In other news,

• Coinbase assembles a high-profile advisory board. Read more.
• Legislator's cryptocurrency controversy triggers raids on Upbit and Bithumb. Read more.
• Binance exits Canada in response to new crypto regulations. Read more.

LG Eyes Blockchain-Based Smart TV Patent

TL: DR

• LG Electronics has filed a patent for a blockchain-based smart TV, allowing users to engage in NFT trading directly from their televisions.
• The patent application was recorded by the World Intellectual Property Organization (WIPO), with the examination process underway.
• LG had previously launched the "LG Art Lab Marketplace" for NFT trading on its smart TVs running webOS 5.0 and later systems.
• LG's expansion into blockchain and NFT integration align with the trend of big tech companies exploring Web3, Crypto, Blockchain, and the Metaverse.

LG Electronics is making waves in the digital world with a groundbreaking invention—a blockchain-based smart TV. The company has filed a patent for this innovation, enabling NFT trading directly from televisions. Once the patent is granted, users can connect their crypto wallets and an NFT market server to engage in non-fungible token transactions.

LG has already established its presence in the NFT space with the launch of the "LG Art Lab Marketplace" on the Hedera blockchain, allowing seamless trading of digital artworks on their large screens.

In line with the evolving digital landscape, tech giants LG and Samsung are expanding the capabilities of their electronic devices. LG announced plans to develop and sell blockchain-based software, fueling speculation about a potential cryptocurrency exchange launch.

They have also partnered with Pixelynx and Oorbit to bring the metaverse to smart TVs. Samsung, on the other hand, has integrated NFT platforms into their TVs and has a venture capital arm investing in NFTs and the metaverse. Both companies are capitalizing on the rising interest in blockchain, NFTs, and the metaverse to elevate user experiences and embrace the digital future.

In other news,

• Web3 Educators Collaborate to Launch Easy-to-Use NFT Platform HeyMint. Read more.
• Jack Butcher debuts fresh take on trendy checks NFTs at Christie's. Read more.