Suicide Club

• Ark Invest, Cathie Wood’s investment network, invested about $6.4 million in Block shares.
• The recent investments were made through three different funds and include 77,991 shares of Block Inc for the ARK Innovation ETF, 13,170 shares for Ark Next Gen and 1,004 shares for Ark Fintech innovation.
• This is not the first time Ark Invest has invested in Jack Dorsey’s Block Inc; they have been purchasing shares in Coinbase as well.

Ark Invest Buys Block Shares

Reports indicate that Ark Invest bought about $6.4 million in Block shares via three funds. Block is a company owned by Twitter founder and former CEO Jack Dorsey, designed originally as a payment network but recently evolving into a bitcoin-centric network.

Shares Bought Through Funds

The $6.4 million represents 62,165 shares of Block Inc, based on the closing values in March 13. On that day, Block shares closed the day trading at just about $69.46. The 92,165 shares were invested through three different funds: 77,991 for the ARK Innovation ETF; 13,170 to Ark Next Gen; and 1,004 to Ark Fintech innovation.

Previous Investments

This is not the first time Ark Invest has invested in Dorsey’s Block Inc; last September they bought 100,000 block inc shares at about $6.9 million through the Innovation ETF ARKK; in July 2021 they purchased 225,937 block share split between 179 664 and 46 273 respectively for ARKW and ARKK respectively . It is expected that these investments will help develop a bitcoin centric firm with more innovative solutions associated with BTC mining space from Block Inc soon to be released publicly .

Ark Invest Also Invests In Coinbase

Aside from banking on Block inc., Ark invest has also been banking on other crypto-focused firms such as Coinbase where they currently hold 9.9 million Coinbase shares at press time .

Market Impact

Owing to economic pressures , SQ share prices fell from a high of $146 .84 to its current value of $72 .88 , representing over 50% loss of value over the past year .

• U.S lawmakers have started pushing for the introduction of a bill to reform how digital assets are evaluated for tax purposes.
• The new bill, known as the “Keep Innovation in America Act,” seeks to differentiate between traditional brokers and crypto brokers for tax purposes.
• Lawmakers believe that this adjustment will promote growth in the crypto sector and increase transparency in blockchain operations.

Lawmakers Push For New Crypto Legislation

U.S lawmakers are spearheading efforts to revamp the premise of cryptocurrency taxation with the reintroduction of the Keep Innovation in America Act (KIAA). Sponsored by congressmen Ritchie Torres and Patrick McHenry, KIAA proposes a distinction between “crypto broker” and traditional brokers for taxation purposes, an adjustment that would bring clarity on crypto taxes under the $1.2 trillion infrastructure bill signed into law in 2021.

Impact Of KIAA On Cryptocurrency Growth

Supporters of KIAA believe it will promote growth within the crypto industry and encourage more transparency in blockchain operations, while those against it argue that tighter regulations might scare away potential investments from entering into the market. However, SEC Chairman Gary Gensler has underlined the importance of strong regulations when it comes to digital asset custody, deeming it essential if traditional investors are ever going to trust cryptocurrencies as a legitimate asset class.

Why Reform Is Needed

The current provisions contained within IIJA concerning cryptocurrencies like Bitcoin and NFTs appear incompatible with their operational structure, which could be impeding innovation and development within this space if not amended accordingly. This is why Congressmen McHenry and Torres are pushing so hard for KIAA’s reintroduction; they don’t want misguided policies or regulatory overreach hindering America from taking full advantage of this technology’s capabilities.

What Else Is Included In The Bill?

In addition to differentiating between crypto brokers and traditional ones for taxation purposes, KIAA also includes provisions requiring persons who engage frequently with digital assets to report certain information about their customers’ transactions when filing returns with IRS or any other government entity responsible for collecting taxes on behalf of citizens or corporations operating within US jurisdiction.

Conclusion

With its reintroduction, KIAA could provide much-needed clarity on taxation rules regarding digital assets like Bitcoin and NFTs while also protecting consumers from potential financial harm brought about by insufficient regulation enforcement or lack thereof altogether. As such, its passage could mean good news for all stakeholders involved with cryptocurrencies both inside and outside US borders

• Bitcoin has surged in popularity, with the quantity of bitcoin held on the lightning network increasing by 66% over the past year.
• Payment processing companies, such as BitPay and Coinspaid have reported significant increases in transaction volumes.
• Despite progress towards mainstream adoption, bitcoin still faces regulatory hurdles and scalability issues.

Growing Popularity of Bitcoin

Bitcoin has recently seen a surge in popularity, with the quantity of bitcoin held on the lightning network rising by 66% over the past year. Payment processing companies, such as BitPay and Coinspaid have reported significant increases in transaction volumes, suggesting that cryptocurrencies are evolving into viable means of payment. Furthermore, bitcoin’s underlying technology, blockchain, has matured significantly to enable faster and more efficient transactions which is making it attractive to merchants for payments acceptance purposes.

Mainstream Adoption

The recent surge in popularity of bitcoin may be due to its adoption by mainstream financial institutions such as PayPal, Visa, and Mastercard which began to facilitate cryptocurrency transactions. However despite this progress towards mainstream adoption there are still challenges facing its use as a payment method including regulatory hurdles and scalability issues.

Regulatory Challenges

Cryptocurrencies remain a subject of interest for regulators worldwide who view digital currencies as alternative forms of payment systems but also take into account any associated risks with their use and regulate accordingly. In recent years many countries have taken steps to regulate cryptocurrencies however there is still much uncertainty regarding how they will be treated going forward.

Scalability Issues

Scalability is another issue that needs to be addressed before crypto can become a widely accepted form of payment. Currently blockchains face issues related to throughput due to limited capacity which creates bottlenecks when processing large numbers of transactions at once. As such solutions need to be developed so that cryptos can handle larger amounts of information without reducing performance or becoming too expensive for users or businesses alike.

Conclusion

In conclusion, while cryptocurrencies have come a long way since their inception fifteen years ago they still face several challenges before they can become fully adopted as a means of payment worldwide. Many countries have taken steps towards regulating crypto however uncertainty remains about how it will be treated going forward while scalability issues still need to be addressed for wider acceptance amongst users and businesses alike.

• PeckShield, a blockchain security company, has issued a warning about the rise of pump and dump tokens on BingChatGPT.
• Mischievous groups are using these tokens to deceive people into buying them at a high price and then dumping them, causing their value to plummet.
• PeckShield recommends that investors be extra cautious when investing in new and untested tokens.

PeckShield Warns of BingChatGPT Scams

PeckShield, a blockchain security company, has issued a warning about the rise of pump and dump tokens on BingChatGPT. These mischievous groups are using these tokens to deceive people into buying them at a high price and then dumping them, causing their value to plummet. This leaves people who invested in these tokens with worthless tokens and a significant loss of their money.

Tips for Investing Carefully

PeckShield recommends that investors be extra cautious when investing in new and untested tokens. Investors should do their research before putting their money into any project, and they should be wary of any token that experiences sudden and significant price changes. These changes may be a sign of a pump and dump scheme. Furthermore, experts recommend doing thorough research before investing in order to avoid any token that shows signs of artificial inflation or sudden price changes.

Increasing Number of Scams

The emergence of numerous pump and dump tokens on BingChatGPT is an alarming trend. This highlights the need for investors to familiarize themselves with the risks associated with investing in such projects before committing funds to it. It is important for potential investors to understand how these scamming schemes work so they can make informed decisions regarding their investments.

Investor Caution Advised

PeckShield’s report warns potential investors to be extra cautious when dealing with these types of tokens as they can have devastating consequences if not handled properly. They advise that people should do thorough research before investing in any new or untested token as well as pay close attention for signs of artificial inflation or sudden price changes which could indicate fraudulent activity is occurring behind the scenes.

Conclusion

To conclude, PeckShield’s warning serves as an important reminder for all potential investors – especially those looking into new or untested projects – to always do thorough research first before committing funds into anything related to cryptocurrencies or blockchain technology-based investments as this could help protect them from losses due to scams like those seen on BingChatGPT today

• Peter Schiff, in an interview with Anthony Pompliano, said that bitcoin has no value.
• He believes that due to the lack of physical presence of bitcoin, there is no difference in utility between one satoshi and all the bitcoins in existence.
• According to Schiff, dark economic times are ahead and people will need to sell their bitcoins to buy food.

Peter Schiff on Bitcoin

Peter Schiff recently gave an interview with Anthony Pompliano where he argued that Bitcoin has no value. His argument stems from the fact that Bitcoin does not have a physical presence and thus lacks any real utility when compared to fiat currency or gold.

No Physical Presence

Schiff argues that because Bitcoin does not have a physical presence, there is no difference in utility between one satoshi and all the bitcoins in existence. As such, it cannot be used for anything practical such as building a house like fiat currency or gold can be used for.

Dark Economic Times Ahead

Schiff believes that dark economic times are ahead and people will need to sell their bitcoins in order to buy food. He argues that gold is a better alternative than both fiat currency and cryptocurrency due to its long history of being used as money as well as its physical value which makes it useful for electronics, exchange, and jewelry among other things.

Fiat Currency Under Pressure

The modern monetary system goes back to 1971 when then U.S President Nixon took the U.S off of the post-WWII de-facto gold standard known as Bretton Woods system. With this change came increased pressure on fiat currency which can be seen today with rising prices for gold since around 2000 when Gordon Brown sold a large amount of U.K’s national gold reserves at the peak of a bear market which began in 1980.

Conclusion

In conclusion, Peter Schiff argues that Bitcoin has no real value due to its lack of physical presence when compared with both fiat currency and gold which have tangible uses along with having been used historically as money throughout human history. With dark economic times looming ahead many people may find themselves needing to sell their Bitcoins just to survive financially during this difficult period

• FTX was brought before a bankruptcy court in Delaware to decide whether or not to open an independent investigation.
• The US Trustee argued in favor of an investigation on allegations of fraud, misconduct, and mismanagement.
• FTX argued that an external investigation is a waste of money and poses a risk to the cybersecurity of the exchange.

FTX Bankruptcy Hearing

Background

FTX was brought before a bankruptcy court in Delaware to decide whether or not to open an independent investigation on the firm’s collapse.

US Trustee Calls for Investigation

The US Trustee, through their lawyer, Juliet Sarkessian, said an independent investigation is mandatory under federal law in all significant bankruptcy cases where the DOJ requests one. The trustee told the judge that the goal of the FTX debtors is recovering as much as possible and that they need to be aligned with the goals of the neutral examiner tasked with investigating malpractice.

FTX Argues Against Examiner

FTX attorney James Bromley argued that an examiner would merely duplicate work already done by law enforcement agencies and FTX creditors. He added that allowing new investigators to access FTX systems puts the cybersecurity of their ongoing investigation at risk.

Judge Dorsey Asks Parties To Reach Agreement

Judge Dorsey did not rule on the matter but asked FTX and the US Trustee to try to reach an agreement on the scope for a potential examiner review. He said an examiner should be appointed if appropriate.

Conclusion

The outcome of this hearing will impact how FTX moves forward with its debts and customers’ claims as well as any potential investigations into malpractice by FTX management during its collapse.

• Senators and House members held hearings to investigate Silvergate Capital, the parent organization of Silvergate Bank, about its connections to FTX.
• Senators John Kennedy, Roger Marshall, and Elizabeth Warren wrote a letter to Silvergate demanding information about the demise of the crypto exchange FTX.
• Silvergate was given until Feb. 13 to respond to questions from Congress over its role in the FTX scandal.

Recently, the US Senate held hearings to investigate Silvergate Capital, the parent organization of Silvergate Bank, about its connections to FTX, the crypto exchange that experienced a liquidity issue and filed for bankruptcy in November 2022. The Senators wanted to know how Silvergate handled the transfer of customer assets to Alameda, and whether FTX had misappropriated customer funds.

In response, Senators John Kennedy, Roger Marshall, and Elizabeth Warren wrote a letter to Silvergate demanding information, and questioned the institution’s earlier comments which they found “evasive.” The letter gave Silvergate until Dec. 19 to respond, but the bank declined to fully answer due to the prohibitions on releasing, “secret supervisory information.”

In response to this, the Senators urged the Justice Department to look into the collapse of the crypto exchange and consider bringing certain people to justice, including Sam Bankman-Fried, the former CEO of FTX. Further, the Senators requested that Silvergate respond to questions from Congress over its role in the FTX scandal by Feb. 13th.

The US Senate’s investigation into Silvergate’s involvement in the FTX scandal is ongoing. It remains to be seen what the outcome of the investigation will be. However, it is clear that the Senators are taking the situation seriously and are committed to getting to the bottom of this issue.

•BlockFi’s financials have leaked, showing a $1.2 billion exposure to FTX and Alameda.
•The leaked documents were released by mistake and contained more information than previously shown.
•Poor management at FTX has negatively impacted BlockFi, and its financials show a connection of $415.9 million worth of assets linked to FTX and $831.3 million to Alameda.

Crypto lender BlockFi has been under heat since the collapse of the exchange platform FTX. Recently, financial documents that were not meant to be released have leaked, providing more information than was previously known.

The documents revealed that BlockFi had a total exposure of $1.2 billion to FTX and Alameda, two crypto exchanges that have since gone bankrupt. According to reports from CNBC, the financials were released by mistake and were taken down by BlockFi as soon as they were discovered.

The leaked documents showed that BlockFi had a total of $415.9 million worth of assets linked to FTX and $831.3 million to Alameda. This has been further confirmed by advisors to the BlockFi creditor committee, M3 Partners. They explained that the upload of the documents was an error.

This is not the first time that BlockFi has released redacted documents. On November 24th, they provided one related to the creditor committee’s objection that BlockFi was planning to pay key employees $12.3 million in retention payments. This report was challenged as BlockFi is under limited operations and doesn’t have the resources to service such a commitment.

Unfortunately, the documents reveal that BlockFi has been significantly impacted by the collapse of FTX. Poor management at the exchange platform has caused BlockFi to suffer, leading to a large exposure of $1.2 billion. It remains to be seen how BlockFi will move forward and how it will mitigate the losses it has suffered due to the collapse of FTX.

• FTX and its advisors have found about $5.5 billion in liquid assets, including $1.7 billion of cash, $3.5 billion of crypto assets, and $0.3 billion of securities.
• Despite the large sums discovered, customers may still not get fully reimbursed due to a substantial shortfall of assets.
• The Debtors have identified an estimated $1.6 billion worth of digital assets belonging to FTX.com.

FTX, a cryptocurrency exchange, and its affiliates have recently revealed that they have found about $5.5 billion worth of liquid assets, which includes $1.7 billion of cash, $3.5 billion of crypto assets, and $0.3 billion of securities. The exchange and its advisors have met with the officials and members of the Official Committee of Unsecured Creditors (UCC) in the exchange’s bankruptcy case.

Despite this large sum of liquid assets, FTX Debtors have clarified that there is still a substantial shortfall of assets, meaning customers may not get fully reimbursed. The Debtors have identified an estimated $1.6 billion worth of digital assets belonging to FTX.com, out of which $323 million was transferred out of the exchange by unauthorized third parties, $426 million is held in cold storage by Bahamian authorities, the Debtors hold $743 million in cold storage, and another $121 million is set to be sent to its cold wallet.

In addition, the Debtors have also identified about $181 million worth of crypto belonging to FTX US, with $90 million out of the discovered assets having been transferred out of the platform by unauthorized third parties. It is unclear if customers will be able to recoup their losses, as the Debtors are still working to identify more assets.

In the meantime, FTX is still in the murky waters, as customers and debtors wait for the exchange to identify and secure more liquid assets. Financial advisors and authorities are still in the process of verifying the assets that have been discovered, and it remains to be seen if customers will be able to get their funds back.