Coinbase Wants Access To Private Emails As Fight Against SEC Continues

Coinbase secured a crucial victory against the U.S. SEC after gaining approval to appeal key legal questions to a higher court. Previously, Coinbase filed a motion against the SEC wherein the exchange compelled the regulator to provide access to private emails linked to Gary Gensler.

On January 7th, District Judge Katherine Polk Failla paused the case, allowing Coinbase to seek clarification by an appellate court on whether certain digital assets on its platform qualify as securities and if these transactions require an investment contract under the Howey test.

A Transitional Period

Coinbase argues that tokens listed on its exchange do not meet the legal definition of securities. Judge Failla acknowledged that this issue could be interpreted differently and that resolving it could streamline the case. Coinbase Chief Legal Officer, Paul Grewal, noted that the case will now move to the Second Circuit. The pause halts further litigation at the district court level until the appeal concludes.

This ruling comes during a transitional period for U.S. crypto regulations. With President-elect Donald Trump set to make some major changes soon, there could be a shift in policy. Under SEC chair Gary Gensler, the agency took a tough stance on crypto platforms like Coinbase, but Paul Atkins, who may lead the SEC under Trump, might deprioritize enforcement actions initiated by Gensler.

Mounting Criticisms

The SEC sued Coinbase in 2023, alleging that at least 13 tokens traded on the platform should have been registered as securities. Some claims were dismissed in 2024, including those related to Coinbase Wallet. Coinbase has criticized the SEC for approving its public listing while later questioning the legality of its operations.

Beyond the courtroom, Coinbase achieved another win by securing a license which enabled it to offer new products to New York residents. The company also raised concerns about federal efforts to restrict banks when it comes to working with crypto businesses, accusing regulators of unfairly targeting the industry.

A 24-year-old law student living in Hengelo, Netherlands, has been arrested for running crypto scams that defrauded around 300 people of over $4.5 million. The arrest followed new evidence provided by a victim advocacy foundation.

Another Ponzi Scheme

The student, who had been hiding since his scheme collapsed last year, initially sought police protection after being harassed by investors. Authorities relocated him to a secure location, but investigators later found that he continued attracting new investors even as his scheme neared failure.

Victims claim he ran a Ponzi scheme, requiring a minimum &euro5,000 investment and taking 50% of the profits. Legal experts are concerned about the scale of the alleged fraud, which is currently under investigation.

Crypto Scams Surge

Crypto-related fraudulent activities hit alarming levels in 2024, with losses totaling $2.3 billion, up 40% compared to 2023. Scammers have taken advantage of the influx of new investors driven by the ongoing bull market.

Recent scams include fraudulent tokens linked to the Squid Game Netflix series, phishing attacks on Ledger users, and hacked social media accounts promoting fake tokens. AI-driven scams are also rising, as seen in Hong Kong, where a deepfake crypto romance scam led to 27 arrests and $46 million in losses.

Bitdeer Technologies, a prominent Nasdaq-listed cryptocurrency mining company, released its latest unaudited mining and operational update on January 9th, providing key insights into its performance and financial activities for December 2024.

A Modest Decline

According to the update, Bitdeer successfully mined a total of 145 BTC during December. This marks a slight reduction compared to the 150 BTC mined in November 2024, highlighting a small decline in mining output.

While the decrease is relatively modest, it reflects the ongoing volatility and various challenges faced by crypto mining companies in terms of network difficulty, energy costs, and other operational factors. Many countries are also actively rethinking their crypto mining strategies due to environmental concerns.

Continued Expansion

In addition to the mining update, Bitdeer also made a significant financial announcement regarding its debt obligations. The company confirmed that it has fully repaid the outstanding principal balance of $10 million in senior secured notes.

These notes were originally issued as part of Bitdeer acquiring two companies, namely TROLL HOUSING AS and TYDAL DATA CENTER AS. This move to clear the outstanding debt could be seen as part of a broader strategy by Bitdeer to strengthen its financial position and focus on expanding its mining operations going forward.

According to CoinGecko, the crypto market dropped 5% this week, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) seeing significant declines.

The Silk Road Incident
The downturn follows the U.S. Department of Justice (DOJ) receiving approval to sell 69,370 BTC seized via the Silk Road darknet marketplace. In 2013, the FBI seized all Silk Road assets, including a colossal amount of Bitcoin.

Valued at around $6.5 billion, this Bitcoin stash has been tied up in several lengthy legal battles, with the U.S. government initially auctioning off some of it. Battle Born Investments tried to block the sale, but its claims were officially dismissed through a recent court ruling on December 30th.

Politically Motivated
A federal judge authorized the DOJ to sell the crypto, citing concerns over potential losses if held too long. The sale, managed by the U.S. Marshals Service, could become one of the largest crypto liquidations in history. Analysts worry this liquidation could adversely affect Bitcoin and possibly trigger a market crash.

Some, like crypto user DefiBanked, speculate that the decision by the DOJ might have political motives, with proceeds potentially supporting Ukraine and a move to suppress crypto entirely. Others fear it could be a tactic to manipulate the market and thwart Donald Trump and his Bitcoin reserve plans.

Nvidia unveiled its most compact yet powerful AI supercomputer yet at the Consumer Electronics Show (CES) on January 6th, but the announcement failed to prevent a stock decline amid a broader market downturn.

Catering To Researchers And Students

CEO Jensen Huang introduced Project DIGITS, a personal AI supercomputer powered by the GB10 Grace Blackwell Superchip, designed for researchers and students, priced at around $3,000. He also showcased the Cosmos platform for developing humanoid robots and autonomous vehicles, highlighting its ability to generate synthetic driving scenarios.

Cautiously Optimistic

Meanwhile, Nvidia launched AI Blueprints for creating custom agents with features like PDF-to-podcast conversion and video summarization. Despite these innovations, Nvidia shares dropped 6.2% on January 7th, following weak U.S. jobs data that impacted tech and crypto stocks.

However, analysts remain optimistic, citing the strategic positioning that Nvidia has in data centers, autonomous vehicles, and robotics, in addition to the fact that the company saw its stock go up by 166% compared to a year ago.

Virtuals Protocol (VIRTUAL) has surged 133% in the last 30 days, driven by the meteoric rise of crypto AI agents. However, it has seen a 6% dip in the past 24 hours, suggesting a potential pause in its upward momentum.

Uncertainty Looms

Currently with a $4 billion market cap, VIRTUAL is now the third-largest AI coin, behind RENDER and TAO. The ADX is at 13.3, indicating weak trend strength, and the BBTrend has turned negative at -1.51, signaling possible consolidation.

In fact, the ADX for VIRTUAL has dropped to 13.3, signaling a weakening trend and potential consolidation. With minimal trend momentum, the price may stay range-bound unless a shift in market pressure occurs.

BBTrend Turns Negative

After a positive run, VIRTUAL saw its BBTrend turn negative at -1.51, reflecting bearish sentiment. This change, following a peak of 20.5 on January 4th, suggests that selling pressure has overtaken buying activity, potentially leading to further consolidation or downward movement.

If VIRTUAL breaks the $3.73 support level, further declines to $3.27 and $2.81 are possible. However, the ongoing AI hype could sustain interest, and if bullish momentum returns, VIRTUAL may challenge resistance at $4.59, potentially pushing past $5.

Andrew Tate, the self-proclaimed Top G under house arrest in Romania, has officially launched his own political group known as the Bruv Party, aimed at saving Britain.

National Bitcoin Reserve

Tate and his policies, including 24/7 live streams of knife crime offenders in solitary confinement and a new BBC model sourcing content via X (formerly Twitter), have been widely mocked. Tate also proposes creating a national Bitcoin reserve to prevent foreign economic pressure and holding weekly referendums to engage the public in constant national polls.

While the idea of forming a national Bitcoin reserve is not new by any means, as both Donald Trump and Vladimir Putin have previously announced similar plans for their respective countries, many wonder if Tate is actually serious about his plans to do so or if he is simply trying to secure more votes through the crypto community.

Easier Said Than Done

The whole spectacle began when Andrew asked his followers if he should run for Prime Minister, misspelling Britain in the process. Critics quickly pointed out the irony of his plans, with some highlighting his criminal history involving trafficking and abuse. Tate did release a manifesto detailing his plans, albeit filled with typos and bizarre ideas.

Labour MP Emily Darlington condemned his political ambitions, stating that Britain would not support a misogynist charged with serious crimes, despite the fact that Andew has millions of devoted followers worldwide. As Tate remains confined in Romania, many question whether this is a genuine political campaign or just another attention-seeking stunt.

Cryptocurrency prices tumbled in the past 24 hours, with Bitcoin (BTC), Dogecoin (DOGE), and Solana (SOL) leading the decline as both crypto and stock markets struggle to recover.

Shifting Expectations

Bitcoin dropped to about $97,856, showing a 4% dip, while Ethereum (ETH) and Dogecoin fell around 7%, and Solana saw a 6% drop. The unexpected rise in U.S. job openings and a shift in investor expectations regarding Federal Reserve interest rate cuts seem to be contributing factors.

More Corrections To Come

This market correction led to a surge in liquidations, with $385 million in long and short positions wiped out in the past 24 hours. The crypto market had previously thrived under low interest rates, but the rate hikes by the Fed in 2022 made Bitcoin less appealing.

Despite this, Bitcoin and equities surged last year as the Fed eased borrowing costs. Former BitMEX CEO Arthur Hayes predicts the crypto market will peak in mid-to-late March before experiencing a significant correction.

Canadian Prime Minister Justin Trudeau has officially announced his resignation, opening the door for Pierre Poilievre, the Conservative leader known for his pro-crypto views, to potentially assume leadership.

A Series Of Challenges

The resignation comes amid growing political pressures and internal disputes, with recent polling showing the Liberal Party heading toward a significant loss in the next general election, set to occur before October 20th.

This resignation follows a series of challenges, including rising living costs and an ongoing housing crisis, which have led to increasing discontent among voters. The move was accelerated following a meeting with 50 Liberal members representing Ontario, many of whom voiced concerns about Trudeau and his leadership.

Mending Fences

Tensions reached a high point in 2016 when Donald Trump threatened to impose tariffs on Canadian goods, and efforts to resolve the issues failed to calm the situation. With Trudeau stepping down, the focus turns to Pierre Poilievre, the leader of the Conservative Party, who many believe would form a more mutually beneficial partnership with Trump and the United States.

Poilievre has championed the potential of blockchain technology and digital currencies. Moreover, Trudeau faced plenty of controversy through his handling of the 2022 Freedom Convoy protests, which saw the invocation of the Emergencies Act and the freezing of bank accounts. This drew sharp criticism, particularly by the crypto community.

Some crypto traders have made millions through AI-related tokens, but the rapid rise of these agents has sparked backlash by community members and experts who argue that these tokens are even more problematic than meme coins.

Making Millions

On January 6th, Lookonchain reported that a Solana-based trader turned $2 million into $21 million in under two months by investing in the AI agent and meme coin AI16Z. The investor purchased 10.6 million ai16z between November 15th and 22nd, 2024, at an average price of $0.214. The token surged by 965%, reaching $2.28. The investor also made $13.4 million through other AI crypto tokens like GOAT and FARTCOIN.

Criticism Of AI Tokens

Despite the aforementioned gains, the sector has faced heavy criticism. ZachXBT, a well-known on-chain investigator, called AI tokens a flatout scam, claiming that 99% of the sector is fraudulent. He argued that while meme coins make no promises and are usually not meant to be taken seriously, AI coins try to appear legitimate to deceive buyers.

Additionally, a poll of 42 Solana founders found many considered AI agent tokens to be overhyped. Still, the sector has seen a 5% increase in the last 24 hours, with a trading volume of $2.28 billion and a market cap of $17.5 billion, according to CoinGecko.

Spot Bitcoin ETFs in the U.S. recently saw a surge in net inflows, totaling nearly $1.9 billion on January 3rd and January 6th, reversing a dip in demand compared to late December.

Over $900M

On January 6th, Bitcoin ETFs attracted $978.6 million, led by Fidelity Wise Origin Bitcoin Fund at $370.2 million. The BlackRock iShares Bitcoin ETF and ARK 21Shares Bitcoin ETF followed with $209 million and $153 million, respectively.

In addition, the Bitwise Bitcoin ETF and the Grayscale GBTC and BTC ETFs saw over $70 million in inflows, while VanEck and Franklin Bitcoin ETFs collected $17.3 million and $8.9 million, respectively. However, Invesco, Valkyrie, and WisdomTree saw no inflows on January 6th.

Offsetting Outflows

The strong inflows on January 3rd and 6th nearly offset the $1.9 billion in outflows between December 19th to January 2nd, bringing the total net inflows for spot Bitcoin ETFs to $36.9 billion since their launch.

The iShares Bitcoin ETF leads with $37.4 billion in inflows, followed by Fidelity at $12.4 billion. In contrast, GBTC saw $21.4 billion in outflows. An October Binance report found nearly 80% of demand for spot Bitcoin ETFs came through retail investors, but analysts expect increased institutional interest in 2025.

Meanwhile, Bitwise predicts a $200,000 Bitcoin price by 2025, while VanEck forecasts Bitcoin could surpass $180,000.

U.S. prosecutors handling the criminal case against Do Kwon, co-founder of Terraform Labs, estimate that over one million individuals may have been impacted by the infamous collapse of the Terra ecosystem.

A Monumental Collapse

Acting U.S. Attorney Daniel Gitner stated that the government plans to set up a website to inform victims of their rights, deeming other methods impracticable due to the decentralized nature of cryptocurrency transactions, which lack identifiable personal information.

Terra collapsed in May 2022, losing a $50 billion valuation in just 72 hours. Kwon had claimed his project aimed to build an ecosystem superior to Bitcoin (BTC) and Ethereum (ETH), but lacked transparency. The U.S. Department of Justice alleges Kwon misled investors and manipulated markets.

An Ongoing Case

Kwon was extradited to the U.S. via Montenegro earlier this year, facing nine felony fraud charges. He pleaded not guilty in court on January 2nd. Authorities have not yet revealed whether they will offer a plea deal or proceed to trial.

In addition to the various criminal charges, Kwon was also ordered to pay a $4.5 billion settlement to the United States Securities and Exchange Commission (SEC) in April 2024.