Crypto Chronicle with NewsCrypto
Hello, fellow crypto enthusiasts! The NewsCrypto Crypto Chronicle newsletter is here to empower you with the knowledge and tools you need to conquer the crypto frontier.
Just like a skilled archer hits the bullseye with precision, our newsletter aims to provide you with accurate information, analysis, and strategies to make your crypto journey a successful one.
Here's what we got on the menu today:
1. Multichain CEO Vanishes, Service Stalls
2. Wahi Brothers Settle SEC's Coinbase Insider Case
3. Funny Gif
Multichain CEO Pulls a Houdini, Service Grinds to a Halt
In a plot twist that would make Agatha Christie proud, cross-chain protocol Multichain dropped a bombshell on May 31: its CEO, Zhaojun, has gone AWOL. This sudden vanishing has started rumors that the protocol's leaders might be in a Chinese prison, while technical problems keep causing trouble.
"The team has been burning the midnight oil to keep the protocol humming, but Zhaojun has gone radio silent, and we're locked out of the server needed for maintenance," the team revealed in a Twitter thread. Multichain has been plagued by technical gremlins over the past week, with transactions across multiple cross-chain bridges stuck in limbo without a clear reason.
According to a tweet from Multichain, the Router5 node, which acts as a bridge between chains, has been throwing a tantrum. With the CEO MIA and the team lacking the keys to fix the issue, services for over 10 chains, including the likes of Kekchain, Public Mint, and DynoChain, have been put on ice.
"To safeguard our users, we've hit the pause button on the cross-chain service for the affected chains on the UI," the team announced.
In response to the ongoing saga, Binance hit the brakes on deposits for 10 bridged tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks on May 25. The Fantom Foundation also yanked 449,740 MULTI ($2.4 million) from liquidity on the decentralized exchange SushiSwap. Meanwhile, blockchain analytics firm Lookonchain reported $3 million worth of MULTI outflows related to smart money accounts last week.
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Wahi Brothers Wave White flag in SEC's Coinbase Insider Trading Saga
In a twist that's more dramatic than a season finale, former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi have decided to play nice with the United States Securities and Exchange Commission (SEC). They've agreed to settle the insider trading charges that the SEC has been lobbing at them like hot potatoes. The SEC announced this plot twist on May 30 and has filed a motion for final judgment in the U.S. District Court of the Western District of Washington.
The Wahi brothers were accused of using their crystal ball to predict "at least" nine crypto assets that would be listed on Coinbase. They allegedly bought these assets before they hit the Coinbase shelves. The SEC threw down the gauntlet against them on July 21, 2022, and is now demanding they cough up their ill-gotten gains, with interest.
SEC Division of Enforcement Director Gurbir Grewal didn't mince words in a statement: “While the technologies at issue in this case may be new, the conduct is not. […] The federal securities laws do not exempt crypto asset securities from the prohibition against insider trading, nor does the SEC."
In April, the SEC announced it had reached “an agreement in principle” with Ishan Wahi, who was sentenced to a two-year vacation in the slammer by the U.S. District Court for the Southern District of New York on May 9. It was determined that Wahi had made a cool $1.5 million through his illicit trading. Nikhil Wahi was sentenced to a 10-month stint in January by the same court.
The SEC’s suit claimed that the Wahis and another defendant, Sameer Ramani, had traded in “crypto asset securities.” This claim stirred up a hornet's nest, with U.S. Commodity Futures Trading Commission Commissioner Caroline Pham warning that the classification of tokens “that could be described as utility tokens and/or certain tokens relating to decentralized autonomous organizations (DAOs)” could “have implications beyond this single case.” Pham dubbed the SEC action “regulation by enforcement."
The Wahis tried to get the case dismissed in February, arguing that the SEC had wrongly classified the tokens in question based on the Howey test and major questions doctrine. If the settlement gets the green light, the validity of the SEC’s claims will remain a mystery.
The settlement is now waiting for the court's stamp of approval.
Funny Gif
