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On Tuesday, US-based crypto exchange Coinbase, achieved a significant legal victory in its ongoing dispute with the Securities and Exchange Commission (SEC). 

Judge Katherine Polk Failla of the Southern District of New York has granted Coinbase a “rare interlocutory appeal,” allowing the company to challenge the SEC’s claims that it operates as an “unregistered exchange and broker-dealer,” as well as engages in the illegal sale of unregistered securities through its staking program.

Judge Offers Coinbase A Strategic Opportunity To Contest Claims

This ruling comes as a critical moment for Coinbase, which has been under scrutiny from the SEC regarding its compliance with federal securities laws. 

Judge Failla’s decision not only allows Coinbase to appeal but also halts the district court proceedings while the appeal is considered. 

This pause provides Coinbase with a strategic opportunity to contest the SEC’s assertions at the Second Circuit Court of Appeals.

The implications of this ruling are profound. According to Paul Grewal, Coinbase’s Chief Legal Officer, the court’s decision represents a significant win against the SEC’s aggressive regulatory posture. 

Grewal also expressed in a social media post on X (formerly Twitter), appreciation for the court’s “careful consideration,” likening the decision to a referee stopping play to review a controversial call.

The court documents highlight that this ruling presents a “clear and controlling question of law” concerning whether transactions involving crypto assets, like those intermediated by Coinbase, qualify as “investment contracts” under the Securities Act. 

This interpretation of the Howey test—a standard used to determine whether certain transactions qualify as investment contracts—could reshape the regulatory landscape for crypto assets.

Implications For Cryptocurrency Regulation At Stake

Judge Failla emphasized the need for clarity on how the Howey test applies to cryptocurrencies, noting that there is substantial ground for differing opinions on this matter. 

The resolution of such questions is vital not only for Coinbase but for the entire cryptocurrency ecosystem, as it could set precedents affecting future regulatory actions and compliance requirements across the industry. 

The SEC’s enforcement actions against cryptocurrency firms have intensified over the past years under President Biden’s administration. However, this case may serve as a pivotal moment in the ongoing dialogue about the appropriate regulatory framework for digital assets.

As Coinbase prepares to present its case to the Second Circuit, the broader implications of this legal battle extend beyond the company itself. 

Should the court find in favor of Coinbase, it could signal a shift in how regulatory bodies approach cryptocurrencies and their classification under existing securities laws.

Featured image from Shutterstock, chart from TradingView.com

The altcoin market is heating up following Bitcoin’s recent price resurgence to $102K. Recent indicators from CoinMarketCap suggest we’re back on our way to the type of heady altcoin rally we enjoyed in early December 2024.

Meme coins, in particular, continue to garner loads of attention from investors, with the meme sector seeing a 30.67% bump in trading volume over the past seven days.

This surge in activity signals a growing bullish sentiment in the altcoin space, with new and upcoming meme coins and utility tokens poised to deliver significant returns to investors.

However, with so many alt- and meme coins available, finding the gems worth your time can be difficult. To get you off to an easier start, here are some of the best altcoins right now, according to recent market trends and fundamental analysis.

1. Wall Street Pepe ($WEPE) – New Pepe Presale Nearing $44M, Ready for a 578.58x Boom

$WEPE has recently become one of the most successful new meme coin projects around. The presale has already surpassed $43.8M, and the project boasts thousands of followers on X and Telegram, signaling good community sentiment and growing popularity.

Wall Street Pepe’s unique roadmap helped generate a lot of buzz thanks to the project’s plans to provide access to the Frog Army trading group, exclusive to $WEPE holders.

Here, degen investors can discuss the best trading strategies and get hot top meme coin picks and trading signals to maximize their gains – a novel way to add long-term utility to the project.

The meme coin’s rapid growth during presale also shows the meme coin buzz is still ongoing. Over the past year, the OG $PEPE surged 1,585.92%, while new Pepe coins like Kekius Maximus saw a 578.58x bump in early January.

If $WEPE follows this trend soon after the presale ends, early investors could expect solid returns in early 2025.

2. Flockerz ($FLOCK) – Vote-to-Earn Crypto Project Eyeing $10M in Presale

$FLOCK is a new ERC-20 token with its own upcoming decentralized autonomous organization (DAO). In presale for 14 more days, the token has already seen a significant price bump to $0.0066351 after raising $9.1M from early investors.

Moreover, Flockerz already boasts a significant following on social media platforms like X and Telegram thanks to its attractive roadmap and 298% staking rewards.

According to the project’s whitepaper, the upcoming phase 3 will include exchange listing, ongoing marketing efforts, and the introduction of The Flock’s Vote-to-Earn mechanism. This innovative feature rewards Flockerz for voting on key project developments and token burns.

With 30% of its tokenomics going towards marketing and listing on CEX and DEX, $FLOCK is well-positioned to gain traction immediately after its presale ends. This would create a liquidity surge and deliver a potential 10x to 15x return to early investors.

Beyond its utility as a Vote-to-Earn token, $FLOCK is also likely to gain traction thanks to its listing on Best Wallet’s ‘Upcoming Tokens’ feature, a trusted predictor of successful projects.

This hints at potential gains similar to $PEPU’s 757.2% surge or $SLAP’s staggering 4366.6% increase after similar endorsements.

3. Best Wallet Token ($BEST) – Proprietary Token of The Fastest-Growing Hot Wallet in 2025

$BEST is an upcoming token with serious long-term utility – always a good indicator of solid potential growth.

Its parent project, Best Wallet, is one of the most expansive offers of all Web3 wallets today — an in-app DEX aggregator of 50+ exchanges with the best exchange rates and the lowest fees, plus plans to support 60+ blockchains in the near future.

Best Wallet users holding $BEST also enjoy exclusive perks like early access to trusted presales, reduced transaction fees, higher APY rewards, and governance rights within the project’s ecosystem.

With Best Wallet reporting 50% month-on-month user growth, the $BEST token is positioned for widespread future adoption and could deliver significant returns to early investors.

As evidence in this regard, the presale raised $160k within the first 24 hours after launch and currently sits at $6.7M two months in. Currently selling for $0.023525, $BEST’s price is set to increase again on January 9th.

Following these recent trends, popular crypto influencer ClayBro believes $BEST could see 10x growth on launch.

4. ai16z ($AI16Z) – AI-Powered Meme Coin Surging Following Whale Activity

$AI16Z is the best-performing AI meme coin in early 2025, being the first in this category to reach the $2B market cap milestone. The AI meme coin market is currently worth $5.3B, with $AI16Z taking up 37% of the chunk.

In line with recent crypto market trends, AI meme tokens, especially $AI16Z, could play a big part in the upcoming 2025 altcoin bull run. There’s already been whale activity in the emerging AI meme coin sector, with one whale spending $10M on over 13M ai16z tokens.

Other Solana-based AI meme coins, like Fartcoin ($FARTCOIN), also saw huge market activity, recording a 1676.75% 1Y increase.

As $AI16Z was first listed in October 2024 — and it currently boasts a one-year increase of 447.87% — there’s still room for 10x–20x returns as ai16z leads the new rally.

The developers behind $AI16Z are already working to expand the token’s ecosystem and drive future utility and growth. Plans to launch a new Layer-1 network to support the project’s venture capital DAO could further secure ai16z’s stability in 2025.

Potential for Major Altcoin Returns in 2025

The altcoin market is heating up following Bitcoin’s recent resurgence, showing promise for an upcoming bull run. Considering the recent spike in meme coin market activity (including a 30% increase in trading volume over the past week), interest in altcoins remains high in Q1 2025.

Newcomers like $WEPE, $FLOCK, and $AI16Z have the potential for significant investor returns thanks to their strong presales, innovative roadmaps, and community backing. However, as always, it’s essential to DYOR and understand the risks involved before investing.

These tokens are poised to capitalize on current trends, but market volatility remains a factor. These predictions are based on sentiment and fundamental analysis and don’t serve as financial advice.

Phoenix Group, a crypto company based in the UAE, is pushing hard to get into the US market. In a recent news release, the company said that its newest 50MW Bitcoin mining facility in North Dakota was now fully operational.

News sources say that this new mining plant can boost the company’s current hash rate by up to 2.7 exahashes. The new crypto mining center has cutting-edge technologies and a better layout to make it work better and faster.

The North Dakota project is Phoenix Group’s second crypto-mining facility in the country. The group’s first was a 25MW crypto mining facility in South Carolina. Phoenix Group’s second mining facility was finished in record time, reflecting the company’s leadership in the industry, particularly in designing and managing highly efficient digital asset infrastructure.

Securing the blockchain, one hash at a time. Phoenix Group proudly energizes its cutting-edge 50MW mining facility in North Dakota. Completed in under 5 months, this engineering marvel adds 2.7 exahashes to our capacity. As Munaf Ali, CEO of Phoenix Group, states, “This is a… pic.twitter.com/5FGLtgIGsB

— Phoenix Group (@phoenixgroupuae) January 6, 2025

Phoenix Group Adds A Canadian Facility

Currently registered on the Abu Dhabi Securities Exchange, Phoenix Group is among the leading crypto miners worldwide. It boasts a presence in the US, UAE, and Canada and is building the region’s biggest Web 3.0 ecosystem.

One of its latest projects was launching its 20-megawatt crypto mining facility in Canada. With the site’s completion, it added 700PH and has the lowest electricity price at 0.039 USD within the Phoenix Group’s fleet, with over 97% uptime.

The construction of another mining facility in North Dakota reinforces the company’s commitment to crypto and blockchain technology. According to Reza Nedjatian, the company’s CEO for Global Mining Operations, their new Dakota project is a major step in its expansion plans. He said the United States is a key market for their operations.

North Dakota Site Brings Competitive Edge

A major turning point for the business will be the construction of its new North Dakota crypto mining facility. Launching the second US site is part of Phoenix Group’s plan to increase their global Bitcoin mining capability and increase their visibility, claims Munaf Ali, CEO of the company.

In a very competitive market for crypto-mining, Ali said that finishing the job in record time shows how accurate, fast, and creative they are.

Phoenix Group Expansion

Since its first mining activities in the UAE in 2017, the Phoenix Group has been expanding its activities and other related projects. After becoming the first Bitmain dealer in the area in 2019, the company went public in 2023.

In August 2024, Phoenix Group and Tether worked together to make a stablecoin based on the UAE dirham.

Featured image from Getty Images, chart from TradingView

In recent weeks, the Solaxy ($SOLX) presale has become one of the most talked-about events among crypto investors, and for a good reason. With global events like Donald Trump’s pro-crypto stance and Bitcoin’s ongoing rally driving the bull run, $SOLX is the next crypto to present an exciting investment opportunity.

$SOLX is the native token of Solaxy, the first-ever Layer-2 blockchain for Solana. It’s already 2025’s biggest presale listing yet, having raised over $9.2M so far.

In the coming months, this coin is set to redefine blockchain technology and emerge as a key player in the DeFi ecosystem.

The First Solana Layer-2 Blockchain

Although Solana is one of the fastest and most efficient blockchains, it has struggled with scalability and failed transactions.

Solaxy, however, addresses these pain points with its Layer-2 solution while taking advantage of Solana’s speed and low fees.

Thanks to the innovative roll-up architecture, Solaxy solves the core issues that have been hindering Solana’s growth. These include:

• Congestion: Solaxy ensures smooth transaction flows even when network activity remains high.
• Failed transactions: This coin prevents failed transactions even during peak hours.
• Scalability: It can seamlessly handle a greater number of transactions, allowing the network to scale with increased demand.

$SOLX operates across both Solana and Ethereum, which creates a bridge between two leading crypto ecosystems. Interestingly, Ethereum has established itself as the preferred network for DeFi and NFTs.

This unique feature significantly expands Solaxy’s potential user base to ensure more liquidity.

Thus, $SOLX emerges as an attractive prospect for investors looking to capitalize on the best features of both networks.

Solaxy offers developers the tools needed to build scalable decentralized applications (dApps) on Solana’s infrastructure.

The modular approach of the platform ensures that developers can create customized solutions without compromising on speed or performance.

Since $SOLX can be used on both ecosystems, it means greater liquidity and easier access to DeFi platforms for investors and traders. 

Early Access to a Revolutionary Token Through the $SOLX Presale

Early participants in the $SOLX presale can buy tokens at a discounted price before their public listing. Each token is currently available at $0.001594, with a price increase coming in the next 22 hours.

When investing in $SOLX, investors receive several benefits:

• Buy $SOLX at the lowest possible price before the token is publicly listed.
• Stake $SOLX tokens and earn rewards while contributing to the network’s development.
• Gain exposure to the fast transaction speeds of Solana along with Ethereum’s liquidity.

In addition to the above, it’s also worth noting that experts are predicting $SOLX to be the next crypto to 100x.

The Role of Solaxy in the Bullish Crypto Market

The appointment of Paul Atkins as the new SEC chairman and Bitcoin’s surge has ushered in a new era in the crypto market. Atkins has been an advocate for innovation and a supporter of the crypto community.

Naturally, his leadership can make the crypto landscape more favorable. The ongoing crypto market rally further strengthens the growth trajectory of $SOLX.

Solaxy’s innovative approach, combined with the positive market conditions, makes $SOLX one of the best meme coins to watch in 2025. 

At the same time, do note that the crypto market is volatile, meaning you should back any investments you make with your own research and due diligence.

Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty were spotted dining with President-elect Donald Trump at Mar-a-Lago on January 7, 2025. The news broke via both Garlinghouse and Alderoty’s posts on X, featuring a photograph with Trump that quickly went viral.

What Did Ripple’s Execs Discuss With Trump?

Garlinghouse stated, “Great dinner last night with Donald Trump & Stuart Alderoty. Strong start to 2025!” while Alderoty, adding a personal flair, wrote, “…and to top it off, the beef bourguignon was really good.” Neither executive elaborated on specific topics covered during the dinner, leaving the crypto community to speculate on whether regulatory matters—or the still-unresolved legal battle with the US Securities and Exchange Commission—were on the agenda.

Trump, set to be inaugurated later this month, chose Paul Atkins in December to lead the SEC. In light of the ongoing Ripple-SEC case, many analysts are waiting to see whether Atkins and Trump’s administration might alter the agency’s appellate strategy. As reported by Bitcoinist yesterday, the SEC’s grounds for appeal are due by January 15, just days before Inauguration Day. While some in the XRP community believe a withdrawal of appeals could be in the cards under new leadership, no official statements have been released.

Despite the lack of concrete information about the discussion, crypto proponents have largely welcomed the meeting. Charles Hoskinson, founder of Cardano, congratulated Garlinghouse directly, posting, “Nicely done Brad.” The sentiment was echoed by other influencers.

Moon Lambo (@MoonLamboio) wrote via X “If anyone thought Trump wasn’t serious about making crypto great again, you can put those fears TO BED!!! $XRP.” Pro-XRP lawyer bill Morgan commented “Love that” and Joey Swoll (@TheJoeySwoll) added: “Make crypto great again! LOCK IN! #XRPARMY”

However, not everyone responded uncritically. ĐΛRKHØRSΞ (@DarkhorseDNME4) questioned the meeting’s cost, writing, “So for the record… you know ‘have met’ with Donald Trump where as before Stuart said you had and you hadn’t.. how much did that cost? I heard dinners with Trump are upwards of $100k per seat.”

Still, the overall mood among XRP holders appears bullish. Commentators are optimistic that the dinner signals friendlier policy measures under the forthcoming Trump administration.

Others point to a tweet Garlinghouse shared on January 5—just days before the Mar-a-Lago meeting—highlighting what he described as the “Trump bull market.” In that tweet, Garlinghouse wrote, “2025 is here and the Trump bull market is real. For Ripple, this is even more personal after Gensler’s SEC effectively froze our business opportunities here at home for years. The optimism is obvious and very deserved.”

Garlinghouse also disclosed tangible signs of momentum. “75% of Ripple’s open roles are now US-based, while over the last 4 years, the vast majority of hires were outside the US,” he revealed. Furthermore, he disclosed that Ripple has “signed more US deals in the last six weeks of 2024 (since the election) than the previous six MONTHS.”

He credited these developments to the “Trump effect,” contending that the President-elect, along with allies such as Scott Bessent, David Sacks, and Paul Atkins, has already been “jumpstarting innovation and job growth” before even taking office.

At press time, XRP traded at $2.28.

New cryptocurrency projects can take advantage of a growing market entering 2025.

But is this the best the market can be? Or is the crypto market set for even bigger things to come? 

A recent report from Fidelity, the investment giant, highlighted that the crypto world is just now entering the stage of broad adoption.

They draw the comparison between digital assets now – including crypto – and the heady growth of the internet with mobile phones, wireless technology, and the internet’s general integration into every aspect of modern life.

In other words, Fidelity doesn’t think the crypto market has capped at all; instead, it’s just now entering an era of explosive growth, big gains, and rapidly developing technology.

And there’s one new cryptocurrency project with the potential to soar above the rest and draw huge numbers of investors to its innovative voting and earning mechanisms. 

New Cryptocurrency Project $FLOCK Brings Vote-to-Earn To a Broader Audience

Flockerz ($FLOCK) pioneers a new protocol mechanism – Vote-to-Earn, or V2E. 

Any $FLOCK token holders gain the opportunity to vote on community proposals in the Flock DAO (decentralized autonomous organization).

The V2E mechanism better aligns meme coin communities with long-term goals, opening the door for bigger gains and broader adoption.

Currently in the presale stage, Flockerz has already raised almost $9.2M. There are under two weeks left before the presale ends, meaning the best time for investors to get in on the project is now.

Flockerz is also part of the upcoming crypto highlight from Best Wallet, the world’s leading Web3 wallet, which identifies key new cryptocurrency projects and provides access to them directly within the app itself. 

Crypto: Still In The Early Stages

The Fidelity report maintains that crypto is still early in its lifecycle. The technology isn’t brand new anymore but is mature enough that new use cases can emerge even while adoption grows.

And even while the sector grows beyond its original humble beginnings, certain elements remain the same.

As the Fidelity report notes, ‘the core principles of decentralization, modularization, and data privacy remain central to its ongoing development.’

Flockerz offers a case in point: the V2E mechanism is exactly the sort of decentralized governance model (combined with an earning mechanism) founded on core crypto principles while pushing meme coin development forward.

It’s part of a growing trend for meme coins to pioneer new use cases or innovative approaches to utility, such as the upcoming Meme Index project, which incorporates traditional stock market indexes with meme coins. 

That’s big news for the meme coin sector, which is building on big gains in 2024 as it seeks to become a major force in the crypto economy.

$FLOCK to 13x?

With the broader market, including Ethereum and Bitcoin, looking for even bigger growth in 2025, and with Flockerz flying high on a $9.2M presale, could $FLOCK increase by 100%? Or could it go even higher? 

Some analysts have identified Flockerz as having the potential to go 13x, returning big gains for early investors. 

And on a related point, Fidelity identified a continued ‘risk-on’ attitude towards tech and crypto from investors. That’s a good sign for $FLOCK and other new cryptocurrency projects.

There’s never been a more exciting time in the crypto world, and there’s a growing number of promising crypto projects.

But as always, be careful to do your own research. Crypto investments are risky, as Fidelity points out, and any investor should be careful not to invest more than they can afford to lose.

That said, keep an eye on the feathered friends of $FLOCK. 

On-chain data shows the Bitcoin netflow on Binance has turned negative recently. Here’s what this could mean for the asset’s price.

14-Day SMA Bitcoin Binance Netflow Has Plunged Recently

In a CryptoQuant Quicktake post, an analyst has discussed about the trend in the 14-day simple moving average (SMA) of the Bitcoin Exchange Netflow for the Binance platform.

The “Exchange Netflow” here refers to an indicator that keeps track of the net amount of the cryptocurrency that’s entering into or exiting out of the wallets associated with a given centralized exchange.

When the value of this metric is positive, it means the investors are depositing a net number of coins to these platforms. As one of the main reasons why holders would transfer to exchanges is for selling-related purposes, this kind of trend can lead to a bearish outcome for the asset.

On the other hand, the indicator being negative implies there are more outflows taking place on the exchange than inflows. Such a trend can be a sign that the investors are accumulating, which can be bullish for the coin’s price.

Now, here is a chart that shows the trend in the Bitcoin Exchange Netflow for Binance, as well as its 14-day SMA, over the last few months:

As displayed in the above graph, the Bitcoin Exchange Netflow for Binance has seen a sharp negative spike during the past day, which implies the investors have withdrawn a large number of tokens from the platform.

During the second half of last month, the indicator mostly stayed inside the positive territory, which resulted in the 14-day SMA attaining a value greater than zero.

In the chart, the quant has highlighted the instances of the 14-day SMA showing this trend in the last few months. It would appear that the pattern has generally led to short-term declines for the asset in this period. The latest inflows into the platform, too, were accompanied by a drawdown in the Bitcoin price.

After the latest sharp negative spike has appeared in the daily version of the Binance Exchange Netflow, though, its 14-day SMA value has also dipped back into the red zone.

While a surge into the positive territory precedes a short-term decline for the asset, a plunge into the negative region usually leads to bullish price action. Thus, Bitcoin may currently be well-set in terms of this indicator.

In total, the users of the exchange have taken a net amount of 5,407 BTC off into self-custody during the latest negative spike in the Binance Exchange Netflow.

BTC Price

Bitcoin has retraced its latest recovery during the last 24 hours as its price has slipped under the $98,000 level.

Bitcoin (BTC) crossed the psychologically significant $100,000 price level yesterday, fuelling optimism among bulls that the digital asset could continue its upward momentum and achieve new all-time highs (ATH) in the coming weeks.

Head-And-Shoulder Pattern Bound To Fail?

With Bitcoin reclaiming a key price level, speculation about its future price trajectory has intensified. Analysts are closely monitoring bearish chart patterns for potential invalidation, which could signal a continuation of the bullish trend.

One such bearish formation is the head-and-shoulders pattern on the daily chart, which garnered significant attention throughout December. This pattern was seen as a possible signal that Bitcoin might experience a sharp correction to the mid-$70,000 range.

For the uninitiated, a head and shoulders pattern is a bearish chart formation that indicates a possible reversal from an uptrend to a downtrend. It features three peaks with the middle peak as the highest, known as the “head,” flanked by two lower peaks called “shoulders,” and a neckline acting as a critical support level. A break below this neckline confirms the bearish trend.

However, with Bitcoin surpassing $100,000, the probability of the head-and-shoulders pattern materializing has diminished. According to crypto analyst Aksel Kibar, current market trends suggest the bearish scenario may fail to unfold. Kibar explained:

BTCUSD On daily scale formed a similar head-and-shoulders top. Price is now challenging the high of the possible right shoulder. Breach can result in a pattern negation and should be considered bullish. Head-and-shoulders failure price target stands at 116K.

Kibar also noted that even if the head-and-shoulders pattern plays out and Bitcoin drops to $73,800, it might still not disrupt the broader bullish trend. Such a retracement would likely serve as a pullback to test the previous ATH around $73,000 as a new support level.

It is worth noting that since surpassing its March 2024 ATH, Bitcoin has not experienced a major pullback, aside from a flash crash to $90,500 on December 4. Typically, bull markets are characterized by steep price declines followed by rapid recoveries, setting the stage for the next leg upward.

Bitcoin Price Projections For 2025

Price forecasts for Bitcoin in 2025 remain overwhelmingly bullish. For instance, crypto analyst Jason A. Williams predicts that BTC could reach $131,500 by the first quarter of 2025.

Similarly, Standard Chartered analyst Geoff Kendrick envisions Bitcoin climbing to $200,000 by the end of 2025, driven by factors such as strategic Bitcoin reserves and increasing institutional interest.

However, crypto entrepreneur Arthur Hayes has issued a cautionary note, suggesting that the wider crypto market might face a “harrowing dump” around President-elect Donald Trump’s inauguration on January 20. At press time, BTC trades at $100,099, down 0.7% in the past 24 hours.

A UK judge has ordered the seizure of $4.3 million in Bitcoin (BTC) from a British crime lord known as “Don Car-Leone.” The ruling comes after the fugitive failed to prove the crypto holdings weren’t related to criminal activities.

Fugitive Crime Boss Claims Bitcoin Fortune Is Lawful

UK High Court judge Mr. Justice Timothy Mould recently granted the Crown Prosecution Service (CPS) the right to seize £3.5 million worth of Bitcoin, around $4.3 million, from convicted crime boss Alexander Surin, also known as “Don Car-Leone.”

According to The Telegraph’s report, Surin fled to Dubai after being convicted in France in 2015 for drug trafficking. After his conviction, the National Crime Agency (NCO) seized his high-end car fleet, money, and several properties in London.

At the time, he and his wife accepted that the £4.5 million seized assets, worth around $5.6 million, were acquired with money from criminal activities. Moreover, Surin, who seemingly earned the nickname from his luxury car fleet, holds millions in Bitcoin in a Coinbase Kenya account.

However, he claims his Bitcoin holdings were earned lawfully by trading gold bullion in Dubai. The fugitive argued that the Bitcoin was made through two sales with a trader operating out of “small rooms in shops or buildings” at Dubai’s gold souk.

Surin added that the trader allegedly doesn’t have a website or bookkeeping record to prove the sales, as he conducts his business “based on trust and reputation.”

Judge Orders Seizure Of BTC Holdings

CPS’ representative, Martin Evans KC, told the High Court that “compelling evidence” suggested the money was made through illicit activity. Evans cited two large transfers into Surin’s Coinbase Kenya account proceeded from Christian Hargreaves, who was convicted and sentenced to 17 years for “conspiracy to supply class A drugs.”

According to the report, The CPS told the court that apart from two fake invoices, Surin didn’t provide records that explained how he became so wealthy after having previous assets seized.

Moreover, Evans argued that Surin and Hargreaves being British created the “sufficient connection to England and Wales” required to launch proceeds of crime action to seize the Bitcoin sitting in the Coinbase Kenya account.

Through email, Surin responded to the CPS’s claims, stating there was “no evidence to show my involvement in any criminality to suggest that the bitcoin were the proceeds of crime.”

However, Mr. Justice Mould dismissed his claims and ruled that Surin’s Bitcoin holdings were laundered money from illegal drug trafficking, granting the CPS the right to seize the crypto assets:

The evidence advanced by the (CPS), that in each case those transactions were made by Hargreaves with the knowledge of the defendant with a view to laundering money derived from illegal drug trafficking, is compelling. (Surin’s) alternative explanation, that each was a legitimate gold bullion sale to Panache Jewels LLC, lacks any credibility in the face of the (CPS’s) evidence.

HashKey Group, a prominent Asia-based cryptocurrency financial services firm, has successfully obtained Virtual Asset Service Provider (VASP) registration approval from the Central Bank of Ireland through its European arm, HashKey Europe Limited (HEL).

This milestone marks a significant step in HashKey’s global expansion strategy, as it is “HashKey Group’s first VASP license fully compliant with the EU’s Fifth Anti-Money Laundering Directive (AMLD5).

Strengthening Global Regulatory Footprint

The VASP registration allows HashKey Europe Limited to offer a suite of regulated services, including virtual asset-to-fiat and virtual asset-to-virtual asset exchange, custodial crypto wallet services, and facilitating virtual asset transfers between accounts.

Prior to Ireland, HashKey had already secured regulatory licenses in financial hubs like Hong Kong, Singapore, Japan, and Bermuda, showcasing a strategic focus on aligning with “strong regulatory frameworks” worldwide.

According to the announcement, HashKey Europe Limited’s registration with the Central Bank of Ireland signifies the “firm’s readiness” to comply with European Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.

The registration ensures that HashKey operates within a “well-defined legal and regulatory environment,” which is crucial for building investor confidence and facilitating institutional adoption of digital assets.

The approval comes at a time when global regulatory scrutiny on virtual asset providers is intensifying, highlighting the need for crypto firms to align with international compliance standards.

HashKey’s strategy revolves around establishing regulated entities in key markets, creating a global infrastructure capable of serving institutional and retail clients while mitigating regulatory risks.

Furthermore, HashKey’s blockchain innovation, including the recent launch of its Ethereum Layer 2 HashKey Chain on the mainnet, highlights the company’s focus on developing scalable and efficient blockchain infrastructure.

These technological advancements complement its global compliance approach, ensuring secure and transparent service delivery across jurisdictions.

Expanding Service Portfolio And Market Influence

HashKey Group’s portfolio encompasses a range of business divisions, including HashKey Exchange, HashKey Global, HashKey Capital, HashKey OTC, HashKey Cloud, and HashKey Tokenisation.

This diverse range of services positions the firm to cater to varying market needs, from asset management and exchange services to blockchain infrastructure and tokenization.

The VASP approval in Ireland not only enhances HashKey’s presence in Europe but also aligns with the broader goal of supporting the “sustainable growth” of the virtual economy.

In its official statement, HashKey emphasized its commitment to compliance, delivering value-added services, and “fostering trust” within the Web3 ecosystem. The company wrote:

HashKey Group remains dedicated to supporting the sustainable growth of the virtual economy by ensuring compliance with international regulations, delivering value-added services, and fostering trust within the ecosystem.

Featured image created with DALL-E, Chart from TradingView

In a move to bolster its presence in the European market, Backpack Exchange, a crypto trading platform established by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million. 

As earlier reported by Bloomberg, this acquisition aims to expand Backpack’s derivatives offerings in a region where the regulated crypto derivatives market is increasingly gaining traction.

FTX EU’s Bankruptcy Claims Transferred

FTX EU was one of the units that fell under bankruptcy proceedings following the collapse of the exchange in 2022. As part of the acquisition deal, Dubai-based Backpack will assume responsibility for distributing court-approved bankruptcy claims totaling approximately €53 million ($55 million) to affected FTX EU customers.

The FTX estate had previously pursued legal action to recover millions from the original owners of FTX EU. However, this lawsuit was ultimately dropped as part of a settlement that facilitated the sale of the unit to its co-founders, Patrick Gruhn and Robin Matzke, who then sold it to Backpack.

This acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives trading within the European Union. 

The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region.

Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company’s “top priority” following the acquisition. In an interview, he stated, “We will not serve a single user, not serving a single trade in the EU until we have the ability to return customers’ funds.” 

A Rising Star In Crypto? 

Founded in 2022, Backpack has already made a mark in the industry. Ferrante, who previously worked at Alameda Research and played a pivotal role in developing the Solana blockchain, brings valuable experience to the table.

Co-founder Tristan Yver also has a background as a former executive at FTX. Backpack secured a virtual-asset service provider license in Dubai and is currently pursuing a license to operate in Japan, having raised $17 million last year at a valuation of $120 million.

With the acquisition of FTX EU, Backpack is positioned to offer regulated crypto derivatives products, including perpetual swaps—futures contracts that do not expire—across the European Union. 

The regulated crypto derivatives market in Europe has become increasingly appealing to various crypto firms, as evidenced by Coinbase Global Inc.’s recent acquisition of a Cyprus-based brokerage unit, which also secured a MiFID II license.

“Derivatives make up an enormous amount of crypto trading volume,” Ferrante remarked, expressing enthusiasm for the opportunity to reintegrate crypto derivatives trading in the EU. 

As the market evolves, firms like Backpack are poised to play a crucial role in shaping the future of crypto trading by offering innovative and regulated products that cater to the growing demand.

At the time of writing, FTT, the defunct exchange’s native token, is trading at $3, following the broader market correction with a drop of nearly 11%. 

Featured image from DALL-E, chart from TradingView.com

Data shows the Bitcoin Open Interest has seen a sharp increase alongside the recovery rally that the asset’s price has gone through.

Bitcoin Open Interest Has Observed A Spike Recently

As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the Bitcoin Open Interest has shot up. The “Open Interest” here refers to an indicator that keeps track of the total amount of derivatives positions related to BTC that are currently open on all centralized exchanges.

When the value of this metric rises, it means that the traders are opening fresh positions on the market. As the total amount of leverage present in the sector rises when positions increase, this kind of trend can lead to more volatility in the asset’s price.

On the other hand, the indicator going down implies that the derivatives users are either closing up their positions of their own volition or being forcibly liquidated by their platforms. Such a trend may result in calmer price action for the cryptocurrency.

Now, here is a chart that shows the trend in the 24-hour percentage change for the Bitcoin Open Interest over the past month or so:

As is visible in the above graph, the Bitcoin Open Interest has recently registered a sharp positive change, which suggests that investors have opened up a large number of positions inside a short window.

The impetus behind this trend is likely to be the notable price recovery that the cryptocurrency has seen during the last couple of days. Investors find rapid moves in the asset to be exciting, so they tend to participate in more speculation than normal whenever they occur.

As mentioned before, an increase in the Open Interest can lead to BTC becoming more volatile. The reason behind this is the fact that mass liquidation events turn more probable the more leveraged positions there are in the market. Such events can be violent, with all the liquidations feeding back into the price move that triggered them.

Some growth in the Open Interest may still not be bad for the asset, but when it occurs inside a narrow window and is of a sufficiently large scale, the risk of the price being negatively affected can be considerable indeed.

As the analyst has highlighted in the chart, the latest jump in the Open Interest took its percentage change into a zone that has generally signaled trouble for Bitcoin in the past month.

Given this pattern, it now remains to be seen whether the derivatives market will have to see another cooldown before the asset’s rally can continue.

BTC Price

Bitcoin recovered above the $102,000 mark earlier, but the coin appears to have seen a pullback since then, as its price is back at $100,800.

In a potentially major turn for crypto regulation in the US, Rostin Behnam, the Chairman of the US Commodity Futures Trading Commission (CFTC), has revealed his resignation, effective January 20, with his exit from the commission scheduled for February 7.

Behnam Resigns, Leaves Key Regulatory Challenges In Crypto

In a statement released Tuesday morning, Behnam reflected on his tenure at the regulatory agency, stating:

Over the past several years, a multitude of domestic and global events tested the resilience of all financial markets. I am proud that the commission consistently made deliberate and intentional decisions to ensure continued strength.

Throughout his time in office, Behnam emerged as a strong advocate for expanding the CFTC’s authority, particularly regarding cryptocurrency regulation. He pushed for legislation that would designate the CFTC as the primary regulator of Bitcoin (BTC) and other digital currencies, aiming to provide oversight of crypto exchanges. 

Despite these efforts, significant legislative changes remained elusive during his tenure. However, with Republicans poised to control both Congress and the White House, there is renewed momentum to expand the CFTC’s jurisdiction over major crypto assets like Bitcoin and Ethereum (ETH).

“Folks recognize the crypto market is here. It’s not going to change or go away,” Behnam stated in an interview with Bloomberg News. “And the CFTC is going to be at the center of that new regulatory regime, whatever comes out.” 

This sentiment underscores the growing acknowledgment of cryptocurrency’s permanence in the financial landscape and the need for a comprehensive regulatory framework.

Urgent Action From Congress Needed?

Behnam’s leadership has coincided with rapid developments in the financial sector, including the emergence of new asset classes and trading platforms. Behnam remarked in an October interview that the CFTC has been “stretched thin” as it adapts to these changes. 

The next chair is expected to face significant challenges, particularly in regulating digital assets and emerging financial products known as event contracts. These contracts allow traders to wager on a variety of outcomes, from political elections to entertainment awards.

Political prediction markets gained visibility during the recent electoral cycle, but their regulatory future remains uncertain due to ongoing court cases and the need for rule-making. 

Behnam has expressed concerns about the CFTC taking on the role of an “elections cop,” particularly in his legal battle against Kalshi Inc., an exchange that enables US customers to bet on political outcomes.

As litigation regarding these prediction markets continues, Behnam has advocated for Congress to revisit the CFTC’s statutory framework to clarify what types of event contracts are permissible. 

He highlighted that the agency is grappling with a growing array of novel prediction markets, which consume significant staff resources and time.

“You’re going to see that line being blurred between what is legal, what’s illegal, what’s permitted, what’s impermissible,” Behnam cautioned, emphasizing the urgency for regulatory clarity in an evolving market landscape.

Featured image from Forbes, chart from TradingView.com