The Brazilian Supreme Court has mandated that X, the social media platform owned by Elon Musk, be suspended due to the company repeatedly failing to appoint a legal representative within the country. Meanwhile, Brazil has recently attracted attention with its active support for Solana ETFs. The country is set to list its first Solana-based ETF on the B3 exchange, with a second one receiving regulatory approval.

Growing Pains

According to the ruling issued by Justice Alexandre de Moraes, Internet service providers in Brazil, which is home to approximately 215 million people, must block access to X. This decision escalates the ongoing conflict between Musk and the Brazilian government. Earlier this week, X removed its legal representatives in Brazil after Moraes threatened arrest. Moraes then gave X a 24 hour deadline to appoint a new legal representative, which the company did not meet.

The suspension order also includes potential fines for users who try to circumvent the ban using VPNs, with penalties reaching 50,000 reais, or about $8,900, according to BBC. The failure by X to adhere to local regulations and its refusal to remove specific accounts further strained relations, leading to this severe court action.

Impact On The Brazilian Crypto Community

Brazil is a crucial market for X, with around 40 million Brazilian users engaging with the platform each month, as reported by CNN. Since Musk acquired the platform in 2022, it has faced numerous challenges, including a sharp drop in advertising revenue.

This suspension could also significantly impact the burgeoning Brazilian cryptocurrency community. X serves as a vital digital forum for crypto enthusiasts, facilitating discussions, information sharing, and market updates. The ban might disrupt the flow of cryptocurrency news and hinder communication among traders and investors in the region, where interest in digital assets has been growing. Recently, asset management firm BlackRock expanded its Bitcoin and Ethereum ETFs in Brazil, highlighting the importance of this market.

The Blockchain Association has submitted a Freedom of Information Act (FOIA) request to investigate if the United States Securities and Exchange Commission (SEC) is secretly advising certain banks on avoiding SAB121, potentially giving preferential treatment to traditional banks.

Examining Possible Favoritism 

Previously, the association sought information on the de-banking of crypto firms in the US, focusing on allegations of unfair account closures and refusals. The Blockchain Association has filed a FOIA appeal to explore whether the SEC is guiding specific custody institutions to evade SAB121 requirements.

This could indicate a new strategy, potentially offering exemptions to a few traditional banks while leaving crypto service providers at a disadvantage. SAB121, introduced in 2022, requires companies holding crypto to list it on their balance sheets, creating significant capital implications. Despite strong bipartisan support to repeal the bulletin, President Biden vetoed the repeal.

De-Banking Concerns

In March 2023, the Blockchain Association requested documents that the FDIC, Federal Reserve, and OCC have in order to investigate claims of unjust account closures and denials affecting crypto firms, including those linked to the failures of Signature, Silicon Valley Bank, and Silvergate.

Kristin Smith, CEO of the Blockchain Association, highlighted the need for fair treatment of crypto businesses and encouraged impacted parties to share their experiences confidentially. This is especially important as centralized exchanges are becoming increasingly controlled by the government and large conglomerates, something which the crypto community wants to do away with if possible.

The controversies continue to pile up for Binance as the exchange has come under scrutiny for seizing cryptocurrency assets, such as BTC and ETH, linked to Palestinian accounts. This action, reportedly undertaken at the request of the Israeli Defense Forces (IDF), has sparked significant debate within the cryptocurrency community and beyond.

The seizure is connected to the Israeli Anti-Terrorism Law of 2016, which grants the government broad powers to confiscate property linked to groups designated as terrorist organizations. According to various reports, a seizure order labeled T56/23 was issued on November 1st, 2023, based on this legislation.

Alienating Users

Ray Youssef, a notable figure in the crypto space, has claimed that Palestinian cryptocurrency wallets have been affected because they allegedly received funds via a group identified by Israel as a terrorist organization. This group, known as the Dubai Exchange Company, was flagged by Israeli authorities in 2022.

His statements also suggest that Binance choosing to comply with this order has extended to other users in the Middle East and North Africa (MENA) region. He argues that these actions could potentially impact Lebanese and Syrian users as well, highlighting broader concerns about the security and accessibility of cryptocurrency assets on centralized platforms.

Compounding these concerns are allegations that Binance may have shared user information with the IDF without appropriate legal processes, such as warrants or subpoenas. These claims, if verified, would raise serious questions about data privacy and the protection of user rights on centralized exchanges.

Staying Informed

This controversy underscores the broader debate about the risks and responsibilities associated with centralized cryptocurrency exchanges. While these platforms offer significant convenience and liquidity, they also introduce points of vulnerability where user assets could be subject to governmental actions, potentially without adequate legal recourse.

As the situation unfolds, it is crucial for users and investors in the cryptocurrency space to stay informed and consider the implications of geopolitical and legal dynamics on their digital assets. The unfolding events serve as a reminder of the complex interplay between technology, law, and global politics in the evolving landscape of digital finance.

The TON blockchain, developed by Telegram, is experiencing its second outage within two days. According to the team, block production issues began at 19:19 UTC and were shared with users via Telegram and X (formerly Twitter) on Wednesday. The team attributes the disruption to high demand related to DOGS token minting, with TON Core actively working on a resolution.

What Went Wrong

As previously mentioned, block production on TON has faced interruptions since 19:19 UTC, primarily due to the high load related to DOGS token minting. TON Core is addressing the issue, and updates will be provided as the situation progresses.

More importantly, Telegram has reassured users that their assets remain safe and issued an urgent call on X for mainnet validators to update and restart their nodes. According to Tonscan block explorer, the last recorded blocks were at 12:23 Eastern Time (16:23 UTC).

Not The First Time

At the time of reporting, the price of the TON token showed minimal change, decreasing by 0.99% over four hours and 4% over 24 hours. One user commented on the ordeal, claiming that as long as he can finally withdraw his dogs, he can wait.

The previous outage occurred during Asian trading hours on Wednesday and lasted about six hours, also having a minor impact on the price of TON, which had already declined earlier due to Pavel Durov being arrested in France. This earlier downtime was partially linked to the DOGS airdrop.

On 28th August, 2024, in South Korea, the CEO of crypto company Haru Invest was attacked during his trial for alleged fraud involving over $800 million. Hugo Hyungsoo Lee was repeatedly stabbed in the neck by a man in his 50s, as reported by local media, and was quickly rushed to the hospital. His injuries were not considered life threatening. The assailant was said to be a former client of Haru Invest.

A Controversial Issue

The trial has garnered significant attention and controversy not just due to the substantial sum of money at stake but also because it coincides with updates to South Korean consumer protection laws. Lee was one of three executives apprehended in February for charges related to embezzlement involving 1 trillion Won worth of cryptocurrency (about $748,900,000 USD).

In response to growing concerns over crypto regulations, South Korea introduced its first law aimed at safeguarding crypto investors. The Virtual Asset User Protection Act seeks to address unfair trading practices and follows past incidents such as the Terra-Luna crash and the collapse of FTX. This law came after South Korean crypto exchanges had previously attempted to prevent widespread delistings.

An Effective Response

According to the prosecution, the executives were accused of accepting deposits by approximately 16,000 clients between March 2020 and June 2023, claiming to manage these funds with a stable, diversified investment strategy, but suspending withdrawals without notice after June 2023.

In response to these issues, the South Korean government enacted the aforementioned Virtual Asset User Protection Act in June 2023, which came into effect a year later. This legislation aims to address unfair trading activities, enhance market oversight, and empower the Financial Services Commission to regulate the sector more effectively.

During his keynote at Rare Evo 2024, Cardano founder Charles Hoskinson presented major updates for the Cardano (ADA) blockchain, focusing on advancements in technology, governance, and global outreach.

Key Updates And Future Plans

Hoskinson introduced Plutus V3, set to launch soon. He praised its enhanced functionality and security, emphasizing a collaborative approach in development. Plutus V3 will be here in weeks, and with Ouroboros Leios, Cardano has not only addressed but excelled beyond the blockchain trilemma, Hoskinson stated.

He also discussed Hydra, which is a layer-2 scaling solution designed to significantly increase transaction throughput. Hydra is groundbreaking and the team specifically developed the extended UTXO model for it to ensure efficiency and security, Charles added.

Additionally, Hoskinson revealed plans for a massive decentralized autonomous organization (DAO), which will manage a large digital treasury and feature a governance model including a constitutional committee, stake pool operators (SPOs), and elements of liquid democracy. This new governance model is a major step towards decentralized and democratic blockchain management, he claimed.

Global Engagement And Future Events

Charles highlighted recent interactions with Argentine officials and academic institutions, reflecting global interest in blockchain. The team is very excited about visiting the University of Buenos Aires for a Constitutional Convention with delegates representing over 50 countries to discuss Cardano and the future of digital assets, Hoskinson shared.

Looking ahead, Hoskinson previewed the October Cardano Summit, featuring a unique challenge where Hydra could effectively handle one million transactions per second (TPS), a feat which will be demonstrated through a live Doom game with a $100,000 prize for the winner.

Hoskinson concluded by reaffirming his commitment to advancing blockchain technology, highlighting the ongoing innovation and resilience of the Cardano ecosystem. Charles concluded by saying that Cardano will always strive to make blockchain simpler, faster, cheaper, and more impactful, aiming for cryptocurrency to revolutionize the world.

Alameda Research has moved a total of 698,000 Worldcoin (WLD), valued at approximately $1.13 million, to Binance over the past 20 days. The now insolvent crypto trading firm has been liquidating its WLD holdings since August 8th, 2024.

A Costly Venture

Alameda Research initially acquired 25 million WLD through an investment in Worldcoin. Currently, the firm retains 24.3 million WLD, worth $36.69 million. According to EmberCN, these WLD tokens are expected to be sold in stages over an extended period, based on previous liquidation patterns by FTX/Alameda.

Recently, a federal district court in Manhattan ruled that FTX and Alameda Research must pay $12.7 billion to creditors. This sum includes $8.7 billion in restitution and $4 billion in disgorgement. The court found that FTX violated the federal Commodity Exchange Act and trading regulations, and that the firms involved made significant misrepresentations and omissions to customers.

Making Amends

Following the WLD transfer, Alameda Research also moved approximately 36 Bitcoin (BTC), valued at $2.17 million, via its Bitbank hot wallet to its WBTC wallet. Alameda has been trying to make amends and redeem itself ever since the infamous FTX crash in late 2022.

Regarding Worldcoin, the token has been experiencing a steady decline over the past month. WLD is currently priced at $1.50, marking a 35.47% drop over the past month and an 11.97% decrease in the last day.

The Buenos Aires Ministry of Education has teamed up with the ETH Kipu Foundation to integrate Ethereum (ETH) and blockchain technologies into high school curriculums. ETH Kipu announced that this effort aims to equip students with skills for the tech-driven economy.

This initiative reflects an increasing overall interest in blockchain technology and cryptocurrency within Argentina. Previously, Diana Mondino, the Minister of Foreign Affairs for Argentina, affirmed the decision taken by the local government to acknowledge Bitcoin (BTC) as a legally sanctioned currency for contractual agreements. This development aligned with various reports highlighting an ongoing depreciation in the value of the Argentinian national currency (ARS).

A Novel Initiative

Beginning on August 27th, the program will introduce blockchain concepts to high school students in their classrooms. Students will also gain practical experience through internships with blockchain projects. ETH Kipu Foundation, a non-profit supported by the Ethereum Foundation, aids the Ethereum ecosystem in Latin America and has run numerous developer programs.

The program will offer 500 students aged 18 and older the opportunity to learn Solidity, the programming language for Ethereum smart contracts. The partners hope this will help students develop the skills needed to create decentralized applications that can benefit the local economy. Additionally, the program will train 30 teachers in blockchain technology through a hybrid format.

The government is also hopeful that, once the locals are properly educated about the subject, they will be able to successfully start mining BTC, especially since big names like Giga Energy have expanded their operations into Argentina, aiming to utilize excess energy via natural gas flaring in the local oil fields.

Improving Argentina

This initiative underscores efforts by Argentina to establish itself as a crypto hub in Latin America. The country ranks fourth globally in cryptocurrency ownership and has a thriving crypto ecosystem, with many residents earning in digital assets.

Community-driven projects like ETH Kipu and the Crisciemento movement have fostered the growth of the crypto ecosystem. The election of a pro-crypto president in November 2023 has also introduced critical regulatory frameworks for crypto startups.

Since Javier Milei became President, Argentina has implemented pro-crypto policies, including the Virtual Assets Service Providers Register and regulations allowing companies to accept cryptocurrency. The country is also exploring crypto industry regulations and tax exemptions for up to $100,000 in digital assets.

In addition to Ethereum-focused education, NGO Bitcoin Argentina has recently partnered with crypto exchange BingX to offer Web3 educational courses on various crypto topics, including Bitcoin and stablecoins.

Shiba Inu (SHIB) has announced plans to launch a decentralized autonomous organization (DAO), aiming to enhance community governance and expand real-world applications. The announcement, made by marketing lead Lucie on August 25th, signifies a major shift in the management of the project.

The announcement comes shortly after the release of the Shiba Eternity closed beta was revealed, which is the first game on the Shibarium blockchain. Lucie, the Shiba Inu marketing lead, announced the update on X, marking a major shift towards a utility-focused ecosystem.

Giving Users A Voice

The DAO will reportedly give all SHIB holders a voice in shaping the future of the initiative, regardless of their stake. Since its 2020 debut, Shiba Inu has grown significantly. It initially began as an experimental token created by the anonymous Ryoshi to a prominent digital asset under the leadership of Shytoshi Kusama.

The introduction of the DAO represents the next step in involving the community more deeply in governance. The DAO will feature two main councils, the Charity Council, focused on philanthropic efforts, as well as the Culture and Heritage Council, dedicated to preserving the uniqueness of Shiba Inu.

Boosting Real World Apps

Shiba Inu also plans to boost its real-world applications, with SHIB already accepted by thousands of merchants globally. The DAO is expected to strengthen the position of Shiba Inu within the world of decentralized finance (DeFi) in addition to enhancing its practical utility.

Furthermore, lead developer Shytoshi Kusama indicated that he might step down by the end of the year, aligning with the launch of the DAO and further decentralizing the project. In summary, the move to a DAO is a significant development for Shiba Inu, emphasizing community governance and practical applications.

On August 25th, 2024, Toncoin (TON) dropped over 20% following news about Pavel Durov, the founder and CEO of Telegram, being detained in France.

Key Details

TON serves as the native cryptocurrency for The Open Network, which Telegram initially developed but left behind in 2020 after an initial legal battle with the U.S. Securities and Exchange Commission (SEC). This latest incident underscores the strong connection between the blockchain project and Telegram itself, even though the messaging app has portrayed TON as an independent platform.

Durov was apprehended in France on Saturday evening, shortly after his private jet touched down at Bourget Airport near Paris, according to a recent Reuters report. The arrest, as reported by broadcasters BFMTV and TF1, was linked to a preliminary investigation concerning insufficient moderation on Telegram, which authorities argued facilitated criminal activities on the platform.

A Significant Impact

While formal charges against Durov have not been filed yet, the news has significantly impacted the TON ecosystem, with the value of the coin plummeting to $5.52 in just two hours. In light of these events, The Open Network reassured users via X, emphasizing that the ecosystem remains functional despite the arrest.

Telegram wants to assure everyone that the TON community remains strong and fully operational following the recent news concerning Pavel Durov. A post on X stated that Telegram users are being encouraged to stay calm, united, and continue building together.

Additionally, TON Ventures, a venture capital firm connected to the project, issued a statement suggesting that the arrest challenges the principles of free speech and decentralization. Others however believe that the situation is not that simple, and that Pavel was indeed involved in illicit activities.

Concerns are rising within the crypto community about the increasing centralization of Bitcoin (BTC), which some fear could undermine the fundamental principles of the flagship cryptocurrency. Recent data by BTC.com shows that two mining pools, Foundry USA and AntPool, now control about 57% of the total Bitcoin Network hashrate.

Growing Influence And Geopolitical Concerns

Bitcoin mining pools are collaborative networks where miners combine their processing power to increase their chances of mining a block, with rewards distributed based on contribution. These pools have become popular due to their stable income compared to solo mining. However, Foundry and AntPool now dominate the space, with Foundry contributing 215.79 EH/s and AntPool 153.55 EH/s out of a total network hashrate of 651 EH/s.

Experts also warn that the competition between Foundry and AntPool could have geopolitical implications. Foundry USA, part of Digital Currency Group (DCG), aligns with US interests, while AntPool, operated by Bitmain Technologies, represents Chinese influence.

Risks of Centralization

The centralization trend raises concerns about the future of Bitcoin and crypto as a whole. Developer Luke Dashjr has warned that large mining pools could compromise the decentralization aspect of BTC, potentially leading to issues like censorship. If a pool gained over 50% of the hashrate, it could execute a 51% attack. Although no pool currently holds such power, the concentration has led to instances of transaction censorship.

Additionally, mining pools must comply with economic sanctions. For example, in 2023, F2Pool censored transactions to adhere to the Office of Foreign Assets Control (OFAC) list but later reversed this decision after community backlash. There is also concern that other countries are entering the crypto mining sphere which could further contribute to increased centralization.

Nautilus Chain raised an undisclosed amount with the help of 3base. Nautilus Chain is a production-ready, modular chain built on Eclipse.

Ark Labs secured $2.50M in Pre-Seed funding with support by Draper Associates. Ark Labs is a Bitcoin Layer 2 payments network designed to simplify user experiences while maintaining self-custody.

Credbull raised $5.20M with Gnosis providing support. CredBull is a financial platform designed to help individuals and businesses access financing options quickly and efficiently.

vooi secured an undisclosed amount with support by Binance Labs. VOOI is an intent-based cross-chain perpetual DEX aggregator.

Arch Network secured $5M in Extended Seed funding with support by Castle Island Ventures. Arch Network is a Bitcoin native application platform that introduces smart contract functionality directly into Bitcoin through a novel architecture.

Fanton Fantasy Football raised $1M in Seed funding with help by Delphi Ventures. Fanton is a fantasy football game fully integrated into Telegram Messenger which features collectible cards of top football players that earn points according to their real-life performances.

g8keep secured $1.25M in Pre-Seed funding with support by Robot Ventures. g8keep addresses the flaws in token launching and trading by providing a secure and transparent platform that protects users from the inherent risks of the current systems.

Starfish Technologies raised an undisclosed amount in M&A funding with support by Humans.ai. Starfish Technologies is a company focused on building modular, scalable, and interoperable technology solutions. Their offerings include advanced frameworks and tools designed to enhance digital infrastructure, enabling efficient data management, system integration, and automation.

Skyfire obtained $8.50M in Seed funding with help by Circle. Skyfire is a financial stack designed for the AI economy, offering an instant, global payment system for AI Agents, LLMs, data platforms, service providers, and other goods and services. It enables autonomous transactions without human oversight, supported by the USDC stablecoin.

GenLayer raised $7.50M in Seed funding with support by North Island Ventures. GenLayer is a blockchain platform that extends the capabilities of traditional smart contracts by incorporating AI, transforming them into Intelligent Contracts.