Binance Accused Of Possible Money Laundering As Feds Go After Biggest Exchange

Bitcoin (BTC) continued to rise over the past 24 hours, reaching $106,000 for the first time this year, before pulling back by around $2,000.

BTC Hits $106K

Bitcoin began the week with a sharp drop to a low of $89,200. After this decline, the bulls stepped in, pushing Bitcoin back above $97,000. Positive US CPI data on Wednesday led to further gains, and Bitcoin surged past $100,000.

The flagship crypto eventually reached $106,000, its highest since mid-December, but could not surpass $108,000 and has since dropped to $104,000. Its market cap is now nearly $2.05 trillion, with dominance approaching 55%.

Meanwhile, while most altcoins are retracing, SOL has risen 10%, reaching its highest level since early December, nearly $240. Other altcoins, like XRP, Ethereum, BNB, and ADA, have all seen losses, with TRUMP continuing to impress. Despite this, the total crypto market cap remains above $3.7 trillion.

Other Markets

Donald Trump recently met with Republican Senators on Capitol Hill, while traders are preparing to navigate the risks due to his trade policies in Asia. Meanwhile, San Francisco faces a record-high office vacancy rate, and regional banks are grappling with the effects of rising Treasury yields.

Elsewhere, port closures have been enacted in Western Australia because of a cyclone warning, and Kantar plans to sell its media division to H.I.G. for $1 billion. In Nigeria, inflation has surged to nearly an 18-year high, prompting a planned tax overhaul by July.

Commerzbank is considering job cuts as part of a strategy revamp, and U.S. Ambassador to India Eric Garcetti is in discussions with Indian leaders about easing nuclear liability laws. Additionally, China is scouring the globe for new food suppliers, actively preparing for potential trade wars and the return of Trump as United States President.

Vitalik Buterin has announced major leadership changes at the Ethereum Foundation to prioritize technical expertise and improve communication with Ethereum (ETH) builders.

Supporting Devs

On January 18th, the Ethereum co-founder outlined the goals of supporting decentralized app developers and advancing decentralization, censorship resistance, and privacy. He also confirmed that the Foundation would avoid political lobbying or taking a central role in ecosystem development.

The Dencun upgrade in March 2024 led to a 99% drop in transaction fees on Ethereum, spurring a rapid increase in rollups. While this raised concerns over base-layer revenue loss, the base layer revenues, which had fallen 99% in mid-2024, rebounded by the end of the year.

Dealing With Criticisms

These changes follow a rocky 2024, marked by the Foundation being repeatedly criticized over various issues such as budgeting, roadmap, and staffing.

In May 2024, the Ethereum Foundation introduced a conflict of interest policy after several researchers, including Justin Drake and Dankrad Feist, took paid advisory roles at EigenLayer. Drake later apologized and stepped down in November.

Just days before his second inauguration, President-elect Donald Trump and his social media team announced the launch of a Solana-based meme coin called TRUMP.

Seems Legit

The announcement generated hundreds of millions in trading volume, with on-chain analysts and security experts initially raising concerns over potential scams. However, with many of these concerns eventually clearing up, the launch appears legitimate.

While the launch initially triggered skepticism due to the resemblance to past celebrity meme coin scams, the follow-up post on X alleviated many concerns. At present, the meme coin has only seen upward movement, with no signs of a dump.

A Massive Surge

On-chain analysts noted that the project had been seeded with funds by Binance and Gate.io, two exchanges that do not serve U.S. customers. However, further investigation diminished these concerns, especially as the official website of the meme coin mirrored previous Trump NFT launches, which are managed by CIC Digital, his official NFT partner.

The meme coin surged to $7.31, with a market cap of around $7.1 billion, although 80% of the 1 billion coins are locked for the next three years. This means the circulating supply is closer to 200 million tokens, bringing the market cap to around $1.5 billion. So far, the coin has seen $680 million in trading volume.

A charity NFT initiative launched on Friday by prominent Web3 artists allows collectors to acquire digital artwork while supporting families impacted by the recent wildfires in Los Angeles, California.

All proceeds generated through the sales will be donated to a local nonprofit providing emergency relief to those in need.

Exclusive Artworks

The I Heart LA collection, organized by Web3 fashion brand mmERCH, showcases digital pieces by seven renowned creators including Larva Labs, Grant Yun, Gremplin, Nice Aunties, Chikai, ClownVamp, and Goyong.

By minting an Ethereum NFT, participants will randomly receive one of these seven exclusive artworks. The NFTs are available for purchase between January 17th to 19th at 0.0069 ETH (around $25) and can be bought through highlight.xyz.

Deep Fakes Rise

All funds raised will support Baby2Baby, a nonprofit that has already distributed over 3 million emergency supplies, including diapers, formula, food, and hygiene products, to families displaced by the wildfires in the LA area.

As firefighters continue their efforts to control the fires in Los Angeles, another challenge has emerged, the spread of AI-generated deep fakes. On Wednesday, fabricated images of the Hollywood sign in flames circulated on X (formerly Twitter), leading to further confusion, including false depictions of looting.

Bitcoin (BTC) recently surpassed $100K for the fourth time, with market sentiment shifting to greed as the price ranged between $90,000 and $100,000 throughout this week.

Support Remains Strong

There are various reasons why BTC rose above $100K again, chief among which being the upcoming inauguration for Donald Trump. After reaching a high of around $108,000 on December 17th, Bitcoin has posted a series of lower highs, similar to the 2024 consolidation phase.

The $90,000 level remains strong support, with Bitcoin holding above it since November 18th, except for a brief dip on January 13th. Leverage also plays a key role in gauging market sentiment, seen through Bitcoin futures OI (Open Interest).

Spot-Driven

Data by Coinglass shows the aforementioned OI has dropped to 621,000 BTC ($61.6 billion), its lowest since early November, indicating recent price action has been more spot-driven than leverage-driven.

For accurate analysis, it is important to track open interest in Bitcoin terms rather than nominal value, which fluctuates with price. Still, all eyes are on the flagship crypto now, as investors hope the correction is all but over.

Telegram-based malware scams have now surpassed traditional phishing attacks, according to Scam Sniffer. Between November 2024 to January 2025, incidents involving malicious Telegram groups skyrocketed by over 2,000%, while phishing-based attacks remained relatively stable.

Advanced Tactics

These new scams utilize a variety of methods including fake verification bots, fraudulent trading and airdrop groups, and exclusive alpha groups. Once users interact with these, attackers gain access to sensitive data like passwords, wallet files, clipboard activity, and browser data.

This shift towards Telegram-based malware reflects a strategic move by cybercriminals, as malware offers broader access and makes financial losses harder to trace. To protect against these threats, Scam Sniffer advises users to avoid running unknown commands, installing unverified software, and using clipboard-based verification methods. Hardware wallets also provide added security.

A Losing Battle

Scam Sniffer has also reported an increase in scams where cybercriminals impersonate influencers and lure victims into fraudulent Telegram groups. These groups use bots like OfficiaISafeguardBot to inject harmful PowerShell code into clipboards, compromising sensitive data.

The latest scams target legitimate project communities, urging users to run code for updates, bypassing traditional phishing tactics and relying on sophisticated social engineering. Security companies are also under pressure to come up with reliable mechanisms to protect everyone, albeit easier said than done.

The XRP/USD pair has now accounted for over 25% of the 24-hour trading volume on Coinbase, with more than $1.7 billion in trades.

XRP Skyrockets

After XRP/USD, the BTC/USD pair follows in second place with $1.3 billion (19.6%). XRP ranks third in overall trading activity, behind only Bitcoin (BTC) and Ethereum (ETH), with a massive $20 billion in trading volume.

This surge in market activity comes as XRP reached a new all-time high after seven years, with over $18 million worth of XRP shorts liquidated in the past 24 hours. XRP also saw its futures OI (Open Interest) rise to $8 billion, reflecting an 8% increase.

Digital Asset Reserves

The recent price surge coincides with rumors that the U.S. government may be considering establishing a reserve involving digital assets like XRP, a claim first reported by the New York Post, though such speculation should be taken with caution.

Still, there appears to be some substance to these rumours, especially since President-elect Donald Trump has said on multiple occasions that he plans to establish a strategic Bitcoin reserve for the United States.

Nasdaq has submitted a request to the U.S. Securities and Exchange Commission (SEC) seeking approval for a spot Litecoin (LTC) ETF.

The Canary Litecoin ETF

The application, filed on Wednesday on behalf of Canary Capital, aims to introduce the Canary Litecoin ETF. Bancorp Fund Services will serve as the fund administrator, with U.S. Bank NA designated as the cash custodian for the ETF. Coinbase Custody Trust Company LLC will hold the LTC in custody.

This filing represents the second phase of a two-step procedure. It coincides with Canary Capital recently submitting an updated Form S-1. The approval of this filing will trigger the Canary Litecoin ETF approval process once the SEC certifies and publishes Form 19b-4 in the Federal Register.

A Much Needed Boost

Litecoin, which launched in 2011, offers faster transaction speeds compared to Bitcoin and lower transaction fees. It also utilizes a distinct hashing algorithm that promotes a more decentralized mining process, unlike Bitcoin.

Should the SEC approve the listing of the Canary Litecoin ETF, it could reinvigorate the dormant altcoin, which has seen its lowest daily active address count since 2023. Canary Capital took its first step towards the Litecoin ETF in October 2024.

Hindenburg Research has announced that it will be shutting down, effective immediately. The decision was made after the firm completed its pipeline of ideas and emphasized that there are no personal or health-related reasons behind the closure.

The Time Was Right

Hindenburg gained widespread attention for its investigative reports on companies such as the Adani Group, Nikola, and Carvana, which stirred major controversies, particularly in India. The firm accused Adani of corporate wrongdoing, triggering significant financial losses and political turmoil.

Known for publishing research sold to hedge funds and investors while simultaneously making the findings public, the firm capitalized on market shorts. Still, the plan all along was to wind down once the pipeline of ideas was finished.

Stocks Rise
The closure occurs amid increased regulatory scrutiny, particularly by the U.S. Department of Justice, the SEC, and SEBI (based in India). Hindenburg faced allegations of breaching regulations by using offshore instruments to short the Indian market, with SEBI issuing a show-cause notice to the firm.

The Adani case remains unresolved, though Adani Enterprises saw a sharp rise in its stock price at the start of trading today. Other companies in the Adani Group, such as Adani Power, also saw significant gains.

The United Arab Emirates (UAE) is set to build a 17-story Crypto Tower in Dubai by 2027, according to DMCC and REIT Development. The tower will include office floors for crypto startups, blockchain incubators, an AI innovation floor, a crypto club, and an NFT art gallery.

A Top Destination

Dubai has long been a top destination for crypto enthusiasts due to its progressive regulations, strong infrastructure, and government support for digital innovation. The city offers a thriving ecosystem for crypto startups, investors, and professionals.

This project follows a pre-existing crypto center in Uptown Tower, which supports crypto-oriented firms with licensing and regulatory services. DMCC expects the new tower to be completed by Q1 2027, with operations beginning shortly after.

Global Expansion

Elsewhere, a Bitcoin Hotel in Tokyo, planned by Metaplanet, will open in Q3 2025, aiming to promote Bitcoin adoption, education, and community. Other crypto-themed projects include IKAR Holdings, which is currently planning a chain of Bitcoin Hotels in Portugal and Cyprus.

Similarly, the Satoshi Island project, aiming to create a blockchain-based economy on an island near Vanuatu, is progressing with villa designs, while Akon City, a crypto-powered smart city in Senegal named after the famous singer, has faced setbacks, with local authorities threatening to reclaim 90% of the land unless progress is made soon.

Oklahoma has introduced House Bill 1203, aiming to allow state pension funds and savings accounts to allocate assets to Bitcoin (BTC) as a hedge against inflation.

Several States Consider Bitcoin

Representative Cody Maynard, who proposed the bill, highlighted the decentralized nature and fixed supply of Bitcoin, positioning it as a safeguard against inflation risks driven by government currency manipulation.

Other states like Pennsylvania, Texas, North Dakota, and New Hampshire are also proposing Bitcoin-related legislation. Pennsylvania is considering allocating up to 10% of state assets to Bitcoin, Texas has proposed a five-year holding period for Bitcoin reserves, North Dakota has introduced a bipartisan-backed Bitcoin reserve bill, and New Hampshire is exploring a broader initiative that includes other digital assets.

A Much Needed Alternative

These efforts reflect growing concerns over inflation and economic instability, with Bitcoin offering a potential alternative for preserving purchasing power. Still, as many states look toward BTC as a store of value, critics remain wary of its volatility and regulatory uncertainties.

Despite these challenges, states like Oklahoma are pushing forward, recognizing the potential benefits that Bitcoin adoption can offer, despite the risks.

Sony Group has officially launched the Soneium Mainnet, a new Ethereum (ETH) Layer-2 protocol developed by Sony Block Solutions Labs and powered by the Optimism Foundation and their Superchain technology.

Transforming The Internet

First announced in August, Soneium is designed to offer innovative use cases for creators and fans, aiming to enhance creativity, engagement, and profit-sharing in both the digital and physical worlds.

Sony believes that Web3 can transform the Internet, empowering millions globally to collaborate, innovate, and onboard new users. Since its testnet launch, Soneium has garnered over 14 million active wallets and processed more than 47 million transactions.

Growing Potential

Sony is currently integrating various blockchain tools into the Soneium ecosystem, including a Fan Marketing Platform, which leverages NFTs for digital marketing purposes. Additionally, users will be able to trade crypto assets through the BLOX platform.

In any case, the launch underscores the growing potential of Web3 across entertainment, gaming, music, art, and community apps. It highlights how creativity can be amplified and supported using blockchain technology.