BitMEX

Source: a video screenshot, Youtube BitMEX founder Arthur Hayes has voiced concerns about the arbitrary nature of punishments in the United States, using the recent Binance fine as an example.  In a recent blog post, Hayes argued that the treatment of Binance and its former CEO, Changpeng Zhao (CZ), underscores the unfairness of the system. Highlighting […]
The post Crypto Billionaire Arthur Hayes Says Binance Fine Highlites the “Arbitrary” Nature of Punishments in the US appeared first on Cryptonews.

Crypto Billionaire Arthur Hayes Says Binance Fine Highlites the “Arbitrary” Nature of Punishments in the US

Arthur Hayes, the founder of crypto exchange BitMEX, recently presented an analysis of Changpeng Zhao (CZ), the former CEO of Binance, focusing on his ascent in the cryptocurrency world and the significant state pushback he faced. As Bitcoinist reported, CZ stepped down from his role as CEO following an agreement with the US government. The […]

BitMEX Founder Decodes Binance Saga: CZ’s Rise And Regulatory Backlash

The former BitMEX CEO, Arthur Hayes, said the record-breaking penalties imposed on Binance and CZ are ‘absurd’ and represent an institutional bias against the transformative impact of cryptocurrency and blockchain […]
The post Arthur Hayes: US Treatment Handed Out To Binance And CZ Is “Absurd” appeared first on BitcoinWorld.

Arthur Hayes: US Treatment Handed Out To Binance And CZ Is “Absurd”

In a blog post, Hayes condemned the TradFi industry and the double standards he says relate to crypto, CZ and Binance. BitMEX founder Arthur Hayes has argued that the treatment of Changpeng Zhao and Binance highlights a cunning set of…

Arthur Hayes slams TradFi double standards

In a recent blog post, former CEO of crypto exchange BitMEX Arthur Hayes delves into the extraordinary rise and fall of Changpeng Zhao (CZ), the former CEO of Binance. Hayes highlights the controversial $4.3 billion fine imposed on the largest crypto exchange. According to Hayes, CZ emerged from anonymity to become one of the richest […]
The post BitMEX Co-founder Slams Government Treatment of CZ and Binance appeared first on Coin Edition.

BitMEX Co-founder Slams Government Treatment of CZ and Binance

In a lengthy essay, Hayes argued that the $4.3 billion fine levied by U.S. authorities against Binance was “arbitrary.”

BitMEX Founder Arthur Hayes: U.S. Treatment of CZ, Binance ‘Absurd’


                    
                    Global cryptocurrency exchange Binance paid one of the largest corporate fines in history for challenging the financial and political status quo in America, according to Arthur Hayes.
                    The explosive growth and success of Binance outside of the control of traditional financial and political establishments led to heavy-handed enforcement actions against the exchange, according to former BitMEX CEO Arthur Hayes. Hayes delved into the recent $4.3 billion settlement paid out by Binance in a lengthy Substack blog. This comes after the exchange and its founder, Changpeng “CZ” Zhao, admitted to violating United States laws around money laundering and terror financing.As Hayes highlights, CZ’s global exchange became the largest by trading volume in the six years since its inception in 2017. The former BitMEX CEO points out that Binance would also be rated in the top 10 traditional exchanges by average daily volume, which is indicative of its growing influence on a global scale.“The problem for the financial and political establishment was that the intermediaries facilitating flows into and out of the industrial revolution named blockchain were not run by members of their class,” Hayes opined.Binance challenged the status quoThe former BitMEX CEO, who himself fell foul of violating United States Bank Secrecy Act (BSA) regulations after the exchange failed to implement adequate KYC procedures, highlighted Binance’s role in allowing everyday people to own intermediaries and cryptocurrency assets without needing traditional players.“Never before had people been able to own a piece of an industrial revolution in under ten minutes via desktop and mobile trading apps.”Hayes adds that from a fundamental standpoint, centralized exchanges used tools of the state, the company and legal structures to “disintermediate the very institutions that were supposed to run the global financial and political system". “How dearly did CZ pay? CZ – and by extension, Binance – paid the largest corporate fine in Pax Americana history.”Hayes then makes reference to a number of high profile mainstream banking scandals as well as the 2008 global financial crisis and subsequent ‘Great Recession’ which was directly attributed to the collapse of the U.S. housing market.The US and China are kinda sorta friends again. How does this new found love translate into stacking sats? Read "Panda Power" for my take. Bonus feature: a small riff on the #BENANCE situation.https://t.co/ohSBPPhJyz pic.twitter.com/vKBPjMZ0Ce— Arthur Hayes (@CryptoHayes) November 28, 2023

In the majority of these instances, mainstream banking and financial institutions were largely absolved, or held to limited accountability. On the flip side, CZ and Binance were hammered hard by the U.S. department of justice:“Obviously, the treatment of CZ and Binance is absurd, and only highlights the arbitrary nature of punishment at the hands of the state.”Hayes then delves deeply into the intricacies of the current state of the U.S. and Chinese economies and how the latter could drive massive inflows of capital into Bitcoin in the next few years.Capital making its way from China to BitcoinThe former BitMEX CEO suggests that Chinese state-owned enterprises, manufacturers and investors are set to begin investing capital offshore due to a lack of attractive returns locally. Quoting Peking University professor and former Bear Stearns trader Michael Pettis, Hayes writes that China cannot profitably absorb more debt due to the fact that investments do not yield returns that exceed the debt’s rate of interest. “It gets punted in the financial markets instead. Capital, by which I mean digital fiat credit money, is globally fungible. If China is printing yuan, it will make its way into the global markets and support the prices of all types of risk assets,” Hayes explains.Hong Kong’s recent approval of a handful of licensed cryptocurrency exchanges and brokers means that Chinese companies and individual investors have a means to purchase Bitcoin. Given that China was once a powerhouse Bitcoin mining nation, Hayes suggests that many Chinese investors are well acquainted with the asset and its “promise as a store of value” and will “If there is a way to legally move cash from the Mainland to Hong Kong, Bitcoin will be one of many risk assets that will be purchased.”From a macro perspective, Hayes outlines an argument for China increasing the availability and affordability of Yuan-based credit locally. This in effect may lead to the price of Dollar-based credit to fall given that Chinese companies have an affordable domestic option. “Given that the dollar is the world’s largest funding currency, if the price of credit falls, all fixed supply assets like Bitcoin and gold will rise in dollar fiat price terms.”Hayes adds that the “fungible nature of global fiat credit” will lead to dollars flowing into hard monetary assets like Bitcoin.Magazine: The truth behind Cuba’s Bitcoin revolution: An on-the-ground report

Binance, CZ paid for defying financial, political status quo: Arthur Hayes

The former BitMEX CEO said the record-breaking penalties against Binance represent an institutional bias against the transformative impact of cryptocurrency and blockchain technology.

U.S. Treatment of CZ, Binance Is 'Absurd:' Arthur Hayes

The post Arthur Hayes, BitMEX Founder Criticizes US Authorities for Unfair Treatment of CZ appeared first on Coinpedia Fintech News
Arthur Hayes, the mind behind BitMEX, took center stage to share his unfiltered opinions on the recent regulatory developments surrounding Changpeng Zhao (CZ), the former CEO of Binance. Hayes discussed the complexities of centralization in the crypto world, providing unique insights into its broader implications. Why Binance Asks, Arthurs? In questioning the regulatory scrutiny on …

Arthur Hayes, BitMEX Founder Criticizes US Authorities for Unfair Treatment of CZ

In a recent statement, Arthur Hayes, the founder of BitMEX, shared his thoughts on Changpeng Zhao (CZ), the former CEO of Binance, and the broader implications of centralization in the cryptocurrency industry. Targeting Binance Wasn’t Right Enough Highlighting Binance’s rapid growth into the largest centralized trading venue for cryptocurrencies globally, Hayes emphasized the significance of 
The post BitMEX Founder Lashes Out At US Agencies Over Treatment of CZ appeared first on CoinGape.

BitMEX Founder Lashes Out At US Agencies Over Treatment of CZ


                    
                    No bullsh*t, hype-free use cases for AI and crypto: Crypto is the currency of choice for autonomous AI agents, says Jeremy Alliare & ChatGPT.
                    For every genuine blockchain project harnessing artificial intelligence in an attempt to create a better world  like Dr Ben Goertzels Singularity.net  there are 100 coins like AI Doge that have simply wedged the hyped-up terms AI and Crypto together to flog tokens.“Those are just fundamental buzzwords,” explains Near blockchain founder Illia Polosukhin, who worked on the groundbreaking “Attention Is All You Need” research that led to large language models like ChatGPT and Claude.As one of the few people in the world who are as well versed in AI as they are in crypto, Polosukhin says that if you ignore the hype, the technologies really are a good fit.Theres a lot of specific things both in AI and Web3 that can use each other or benefit each other, he says.Magazine spoke with Polosukhin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma from Quantstamp, Ralf Kubli from Casper and others to examine some of the key hype-free, genuine use cases for AI in crypto and blockchain. Over the next week, were rolling out one genuine use case for AI in crypto each day  including reasons why you shouldnt necessarily believe the hype.AI Doge is the perfect blend of AI and doge-iness.The best money for AI is cryptoEveryone from Circle boss Jeremy Allaire to former BitMEX CEO Arthur Hayes to Animoca Brands Yat Siu is convinced that crypto will be the currency of choice for AI agents.After all, LLMs are unable to get access to bank accounts but can easily make payments using a funded crypto wallet, and theyre well suited to interacting with the logic of smart contracts and DeFi protocols.      Read also                                                                              Art Week                            Connecting the Dots: Collectivism and Collaboration in the Crypto Art World                                                                                                                    Features                            WTF happened in 1971 (and why the f**k it matters so much right now)                                            The humans delegating the funds in the wallet can set the overarching strategies and rules, and then observe how the AI agent has performed using the transparent record on the blockchain.Allaire says that AI “and blockchains are made for each other, with the tech suited to machine-generated and enforced contracts and machine-to-machine value exchange.Completely agree. AI and Blockchains are made for each other. Provenance of data, machine generated and enforced contracts, and machine to machine value exchange. We are already hearing about AI Bots spinning up on-chain wallets and using USDC. https://t.co/BwmdGdVufJ Jeremy Allaire (@jerallaire) May 25, 2023 Hayes believes that Bitcoin is the most logical payment system for AI as it is available at all times, digital and completely automated and enables the AI to pay for data and compute powerin order to stay alive. That said, Hayes also seems to think AIs will live for trillions of years until the heat death of the universe, and the LLMs will, therefore, choose Bitcoin as it can be mined by robots. So sometimes Hayes ideas tend to get away from him. Animoca Brands Executive Chairman and founder Yat Siu is another high-profile industry figure who believes that crypto is the only logical way for AIs to transact with each other as autonomous beings in future.In the future, 70-80% of transactions will happen through autonomous AI agents and the decentralised nature of crypto makes it a perfect match.But dont take the word of puny humans: ChatGPT also chooses crypto as its preferred currency without any nudges in that direction. Trading bots that are able to buy and sell crypto already account for up to 80% of spot volumes, and its likely these existing automated bots will progressively be replaced by more intelligent AI agents. (Be warned, however, that LLM-based trading experiments like Autopilots GPT Portfolio have seen mixed results so far, so putting your funds under the control of an AI is going to be a risky proposition for a while.)Members of Near DAO have begun experimenting with allowing an AI to decide whether a particular new project satisfies the relevant grant criteria to fund it autonomously from the treasury. How to add Bitcoin and crypto payments to an AI agentIts certainly easy enough to integrate crypto payments with AI. Lightning Labs has released a set of developer tools that enable GPT-4 to buy, sell and hold Bitcoin using the layer 2 network. And AI startup Fewsats has already created an agent that is able to pay Lightning Network invoices. I don’t want you to freak out, but my @OpenAI agent just paid a LN invoice for me First time #ChatGPT paid in #Bitcoin ? pic.twitter.com/811JdtJ3iB fewsats (@fewsats) November 14, 2023 Fetch.Ai also offers a service where you can create an AI agent that is able to make payments on your behalf. Syndicate.io founder Ian Dao Lee recently wrote a blog detailing how he was able to knock up a GPT in just a few hours, using OpenAis APIs and Syndicates Transaction Cloud, which is able to autonomously make USDC payments from a Safe wallet on the Base network.      Read also                                                                              Features                            The truth behind Cubas Bitcoin revolution: An on-the-ground report                                                                                                                    Features                            Satoshi Nakamoto saves the world in an NFT-enabled comic book series                                            He’s excited about the possibilities this holds. The ability for AI to pay for things, hold things of value, exchange value, or create things of value  on behalf of itself or others  is how AI gets true agency, he says.Some of the most interesting ideas open up not only when AI agents can transact on behalf of and with people, businesses, or other AI agents  but also when AI agents can manage things of value and transact on behalf of themselves.Lee believes that in the future, AI agents will be able to shop for things autonomously, manage the finances of people and organizations, determine and hand out funding approvals or try and grow wealth to help others. However, it turns out that AIs are just as stingy with their money as humans are, donating an underwhelming $3 to charity. Dont believe the hypeWhile AI can more easily use crypto at present, banks appear eager to adopt AI for a variety of uses and already use it extensively for the detection of financial fraud. Payment companies like Brex are working on integrating AI with corporate bank accounts to allow AI agents to automatically make payments in defined circumstances, such as travel expenses. And a team of researchers recently put out a preprint describing how they successfully trained an AI agent called MM-Navigator to work out how to search through Amazon for a given product within a certain budget and to buy it. Until crypto payments are more widely accepted, fiat still has a lot of advantages when dealing with businesses in the real world.    Subscribe    The most engaging reads in blockchain. Delivered once a        week.         Email addressSUBSCRIBE    

Real AI use cases in crypto, No. 1: The best money for AI is crypto


                    
                    Bitcoin is facing resistance at $38,000, but UNI, IMX, VET and ALGO may extend their up-move in the short term.
                    Bitcoin (BTC) rose above $38,000 on Nov. 24, but the bulls could not build upon this strength. This suggests hesitation to buy at higher levels. Bitcoin is on track to form a Doji candlestick pattern on the weekly chart for the second consecutive week. This signals indecision among the bulls and the bears about the next directional move.With Bitcoin maintaining near its 18-month high, BitMEX co-founder Arthur Hayes retained his bullish stance. In a X (formerly Twitter) post, Hayes said that the United States dollar liquidity was increasing, which is likely to push Bitcoin higher.Crypto market data daily view. Source: Coin360Another bullish projection came from PlanB, creator of the stock-to-flow family of BTC price models, who said in a post on X that Bitcoin may not stay at the current levels for long. PlanB expects Bitcoin to maintain an average price of at least $100,000 between 2024 and 2028.Analysts have turned increasingly bullish in the past few days, but traders should exercise caution because every uptrend is bound to have corrections. Could Bitcoin soar above $38,000 or start a corrective phase? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.Bitcoin price analysisBitcoin’s march higher has hit a wall near $37,980 but the bulls are not hurrying to close their positions. This shows that traders expect the uptrend to progress further.BTC/USDT daily chart. Source: TradingViewThe immediate support on the downside is the 20-day exponential moving average ($36,546). If the price snaps back from this support, it will signal that every minor dip is being purchased. That will increase the possibility of a break above $37,980. If that happens, the BTC/USDT pair could rally to $40,000. This level may pose a strong hurdle to the bulls, but if buyers flip the $38,000 level into support on the downside, the rally could stretch to $48,000.Conversely, if the price plummets below the 20-day EMA, it will indicate that traders are booking profits. The pair may then dump to $34,800. BTC/USDT 4-hour chart. Source: TradingViewThe bulls are trying to maintain the price above the moving averages but are finding it difficult to overcome the obstacle at $37,980. The relative strength index (RSI) is just above the midpoint, indicating that the bullish momentum is weakening.If the price slips below the 50-simple moving average, the pair may plunge to the uptrend line. The bulls are expected to defend this level with vigor. On the upside, a break and close above $38,500 will indicate that bulls are in the driver’s seat.Uniswap price analysisUniswap (UNI) fell below the 20-day EMA ($5.44) on Nov. 21, but the lower levels attracted aggressive buying by the bulls. That started a sharp rally on Nov. 22, which pushed the price to $6.60 on Nov. 24.UNI/USDT daily chart. Source: TradingViewThe up-move is facing selling near the overhead resistance of $6.70. The UNI/USDT pair has pulled back to the 38.2% Fibonacci retracement level of $5.92, and the next stop could be the 50% retracement level of $5.71. A strong bounce off this zone will suggest that traders view the dips as a buying opportunity. That may enhance the prospects of a breakout above $6.70. Such a move will complete a double bottom pattern, which has a target objective of $9.60. The bullish momentum is likely to weaken below the 61.8% Fibonacci retracement level of $5.50. UNI/USDT 4-hour chart. Source: TradingViewThe bulls tried to protect the 20-EMA, but the bears had other plans. They pulled the price below the 20-EMA, starting a deeper correction. If the price sustains below the 20-EMA, the pair may tumble to the 50-SMA. If the price turns up from the current level or bounces off the 50-SMA, it will suggest that lower levels are being bought. The bulls will then again try to propel the price to the overhead resistance of $6.70. If this resistance is surmounted, the pair may skyrocket to $7.80.Immutable price analysisImmutable (IMX) has been sustaining above the breakout level of $1.30 for the past several days, suggesting that bulls have the edge.IMX/USDT daily chart. Source: TradingViewThe price may pull back to the zone between $1.30 and the 20-day EMA ($1.20). This zone is likely to witness a tough battle between the bulls and the bears, but If the buyers prevail, the IMX/USDT pair could climb to $1.86.Instead, if sellers tug the price below the support zone, it may trigger stops of short-term traders. That could accelerate selling and result in a sharper correction to the psychological level of $1.IMX/USDT 4-hour chart. Source: TradingViewThe 20-EMA on the 4-hour chart has flattened out, and the RSI is just below the midpoint, indicating a possible consolidation in the near term. The first support on the downside is $1.30. If buyers maintain the price above this level, it will suggest that the $1.30 is acting as a new floor.On the upside, a break above $1.50 will signal the resumption of the up-move. The pair may travel to $1.59 and then to $1.63. Contrary to this assumption, a fall below $1.20 could tilt the short-term advantage in favor of the bears.Related: XRP price bull flag hints at 20% rally by New Year’sVeChain price analysisBuyers propelled VeChain (VET) above the overhead resistance of $0.023 on Nov. 26 but are struggling to sustain the higher levels as seen from the long wick on the candlestick.VET/USDT daily chart. Source: TradingViewSellers will try to trap the aggressive bulls and pull the price to the 20-day EMA ($0.021). If the price rebounds off this level, it will suggest a positive sentiment. The bulls will then again attempt to overcome the obstacle at $0.023. If they can pull it off, the VET/USDT pair could rise to $0.027 and thereafter try to reach the pattern target of $0.031.On the contrary, if bears sink the price below the 20-day EMA, it will indicate that the pair may remain stuck inside a large range between $0.014 and $0.023 for a while longer.VET/USDT 4-hour chart. Source: TradingViewThe pair has slipped back below the breakout level of $0.023, indicating that the bears have not given up and are selling at higher levels. The pair could next reach the 20-EMA, which is an important level to watch out for.If the price rebounds off the 20-EMA, the bulls will make another attempt to drive the price above $0.023 and start the next leg of the rally to $0.027. On the other hand, a break below the 20-EMA may start a deeper correction to $0.020.Algorand price analysisAlgorand (ALGO) reached the overhead resistance of $0.14 on Nov. 25, where the bears are expected to mount a strong defense.ALGO/USDT daily chart. Source: TradingViewIf the bulls do not give up much ground from the current level, it will suggest that traders are holding on to their positions, expecting a move higher. That increases the likelihood of a rally above the $0.14-$0.15 resistance zone. If that happens, the ALGO/USDT pair will complete a cup-and-handle pattern. This reversal setup has a pattern target of $0.20.If bears want to prevent the up-move, they will have to drag the price below the critical support at $0.12. If this level gives way, the pair may tumble to $0.11 and then to $0.09.ALGO/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the pair is oscillating inside the $0.12 to $0.15 range for some time. In a range, traders usually buy near the support and sell close to the resistance. It is difficult to predict the direction of the breakout with certainty; hence, traders may consider waiting for the breakout before taking large bets.If the price breaks above $0.15, the pair is likely to start the next leg of the up-move. The pair may first rise to $0.18 and then to $0.20. This positive view will be invalidated if the price turns down and falls below $0.12.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.


Bitcoin struggles to flip $38K to support, while UNI, IMX, VET and ALGO aim to push higher


                    
                    In the statement, Arthur Hayes encouraged fellow Bitcoin enthusiasts to stay focused, highlighting a significant uptick in dollar liquidity.
                    Arthur Hayes, co-founder of BitMEX, provided perspectives on a potential Bitcoin surge on the X platform. Alongside a chart depicting net Reverse Repurchase Agreement (RRP) and Treasury General Account (TGA) balance changes, the message specifically referred to Treasury Secretary Janet Yellen as “Bad Gurl Yellen.”In the statement, Arthur Hayes encouraged fellow Bitcoin enthusiasts to stay focused, highlighting a significant uptick in dollar liquidity. He proposed that Bitcoin (BTC) will likely mirror the rise in dollar liquidity, anticipating a positive trajectory in its price.The displayed chart illustrated the net variations in RRP and TGA balances, indicating a possible link between heightened liquidity and the positive movement of Bitcoin.Getting my feet did and observing how Bad Gurl Yellen is busy pumping financial assets. Don’t get distracted, $ liquidity is increasing and $BTC will go up as well. This is the chart of net RRP and TGA balance changes. pic.twitter.com/l2US0FzlAX— Arthur Hayes (@CryptoHayes) November 25, 2023

Meanwhile, crypto analyst Dharmafi shared more specific figures on X. The post emphasized a Reverse Repurchase Agreement (RRP) of $65 billion and a Treasury General Account (TGA) balance of $35 billion, resulting in a significant net liquidity surge of $106 billion since Nov. 21.This disclosure indicated a noteworthy increase in liquidity over a brief period, reflecting dynamic shifts in the financial environment. The rise in liquidity, as highlighted by Arthur Hayes, shows the changing dynamics in financial markets. Investors and Bitcoin enthusiasts closely observe these liquidity injections, anticipating potential effects on the cryptocurrency market.While the co-founder of BitMEX highlighted the connection between dollar liquidity and Bitcoin’s forthcoming trajectory, Dharmafi’s specific data reinforces the impact of the liquidity surge. The substantial $106 billion rise in net liquidity since Nov. 21 indicates a swift injection of funds into the financial system, raising inquiries about potential impacts on diverse asset classes, including cryptocurrencies.Related: CoinFLEX creditors dissatisfied with restructuring to OPNX: Report As the crypto community grapples with these observations and evolving patterns, the influence of key figures such as Janet Yellen in shaping market dynamics becomes a central topic of discourse.Meanwhile, Janet Yellen, a skeptic of Bitcoin, has recently cautioned cryptocurrency exchanges to abide by the law. In a recent U.S. Department of Justice (DOJ) announcement, Yellen emphasized the importance of digital currency firms complying with legal regulations.Yellen stressed the significance of compliance in the digital currency industry, underscoring the need to follow regulations to benefit operating within the U.S. financial system. This statement came after the DOJ’s decision, which declared Binance guilty of money laundering and other charges.Magazine: Big Questions: What’s with all the crypto deaths? 

BitMEX Co-founder predicts Bitcoin surge amid dollar liquidity rise

In a recent X platform update, Arthur Hayes, co-founder of BitMEX and a prominent figure in the crypto space, shared compelling insights into a potential Bitcoin rally. Meanwhile, the message, accompanied by a chart of net Reverse Repurchase Agreement (RRP) and Treasury General Account (TGA) balance changes, pointedly referenced Treasury Secretary Janet Yellen as “Bad 
The post BitMEX Founder Arthur Hayes Predicts Impending BTC Price Rally, Here’s Why appeared first on CoinGape.

BitMEX Founder Arthur Hayes Predicts Impending BTC Price Rally, Here’s Why


                    
                    CoinFLEX creditors claim former CEO Mark Lamb and the OPNX exchange “misappropriated” their assets in a court filing. 
                    Some creditors of cryptocurrency futures exchange CoinFLEX are alleging that OPNX, a new crypto exchange established in part by Three Arrows Capital (3AC) co-founders Kyle Davies and Su Zhu, was created using CoinFLEX assets without their consent. According to a writ of summons filed in the High Court of Hong Kong and seen by Cointelegraph, CoinFLEX creditors claim that OPNX co-founder and former CEO Mark Lamb is “misappropriating and/or otherwise wrongfully using the assets, human resources, intellectual properties, […] trade secrets and other technologies” of CoinFLEX by diverting them into OPNX. It alleges that Lamb performed these actions contrary to his responsibilities to CoinFLEX creditors during his tenure. Citing the document, creditors say that Lamb devoted “time, attention, skill and/or effort” to setting up OPNX while simultaneously being employed as the CEO of CoinFLEX. The document claims that the former CEO diverted clients and business opportunities to the rival exchange, misappropriated assets that belonged to the creditors, falsely represented that OPNX was associated with CoinFLEX creditors, divulged confidential trade secrets to third parties, solicited employees and contractors to move to OPNX, forged a fake nondisclosure agreement between himself and a third-party, and engaged in other actions that harmed the creditors.According to a creditor who spoke with Cointelegraph, CoinFLEX’s terms of service required users to settle disputes through arbitration in Hong Kong, which is why the creditors have pursued legal action in Hong Kong instead of Seychelles, the firm’s place of domicile. The allegations have not been proven in the High Court of Hong Kong.The plaintiffs listed in the document are two companies: Liquidity Technologies and Liquidity Technologies Software. According to Crunchbase data, the first is the Seychelles-based legal entity under which CoinFLEX originally operated. The document lists Mark Lamb, crypto investor Roger Ver, Open Technologies Holdings, and Open Technology Markets as defendants. Open Technologies holdings and markets are two companies the document claims are associated with the OPNX crypto exchange.List of plaintiffs and defendants in Writ of Summons. Source: Hong Kong High Court.In January, a pitch deck for OPNX was leaked to the public and was later confirmed by the founding team as authentic. The deck listed Davies and Zhu, Mark Lamb, and Sudhu Arumugam as OPNX co-founders. In September, Zhu was arrested in Singapore’s Changi International Airport for non-compliance with a Singaporean Court Order regarding 3AC’s bankruptcy proceedings. Davies, too, was sentenced to four months in prison for contempt of court but was not within Singapore’s jurisdiction at the time of sentencing. He has since been sighted in Bali, Indonesia. Critics, including BitMEX co-founder Arthur Hayes, Tech Crunch founder Michael Arrington, and financial and macro-financial executive Nik Bougalis, previously argued that investors shouldn’t give OPNX founders more money after they had already lost millions, if not billions, of dollars in customer assets. However, OPNX pushed back against this criticism. When the exchange opened in April, it argued that it would allow creditors to sell their claims on the exchange for quick cash, benefiting them, and therefore was good for creditors of bankrupt firms. Kyle Davies even stated that he would donate his share of the profit to 3AC creditors. CoinFLEX Writ of Summons “Indorsement of Claim” section. Source: Hong Kong High Court.In February, OPNX CEO Leslie Lamb, who is also the wife of OPNX co-founder and CoinFLEX CEO Mark Lamb, posted to LinkedIn, stating, “We're excited to announce that CoinFLEX will be officially rebranding to Open Exchange (OPNX).” In contrast to this statement, the Writ of Summons filed with the Court claims that OPNX is a separate exchange that CoinFLEX creditors never authorized.In a conversation with Cointelegraph, a CoinFLEX creditor, who wished to be identified as “Kirill,” provided further details of the allegations being made by creditors. Kirill claimed he lost “a vast majority of [his] net worth” when CoinFLEX stopped processing withdrawals. According to Kirill, after withdrawals were halted, he and other creditors put together an “ad hoc creditor committee” to sort out what to do with the now-insolvent company. They also involved some of CoinFLEX’s initial investors. After months of deliberating, the committee decided to restructure the company and reopen the exchange.Kirill stated that during this time, he became aware that Mark Lamb was talking to Davies and Zhu about investing in the new, restructured company. Kirill claims they were skeptical of involving the 3AC founders in the project. However, they claim that there was no formal way for CoinFLEX to either accept or reject them as investors since the firm was still going through a restructuring in the courts. The restructuring was approved on March 7, according to a CoinFLEX blog post.According to Kirill, once the restructuring was approved, CoinFLEX creditors discovered that Mark Lamb was acting against the interests of creditors in the ways described in the Writ of Summons.Related: Roger Ver denies CoinFLEX CEO’s claims he owes firm $47M USDCAfter discovering these activities, the creditors filed the Writ of Summons, which Kirill claims was a required first step to obtaining an injunction against Mark Lamb to wrest control of the company away from him. They then filed for the injunction, which Kirill claims was granted by the court. The injunction allegedly states that Mark Lamb “cannot hold himself out to be a decision maker for Coinflex without express majority consent of the board.” On October 31, the official OPNX account for X (formerly Twitter) posted a “Creditor Tender Offer” to CoinFLEX stakeholders. The offer stated that CoinFLEX creditors who accept it “will collectively receive 25% equity in OPNX, distributed in proportion to claim size.” In addition, they will each receive a portion of the exchange’s native token, OX, but these tokens will be vested for ten years. In response, Kirill claimed that this tender offer was not legally valid, stating:“It's not legally valid. How's Mark gonna do the offer? You need the shares [to be] transferred by boards. They're not transferred by independent parties. Mark is not on the CoinFLEX board in Seychelles anymore. He doesn't have authority to transfer shares.”Kirill also claimed that the tender offer lacks the financial information for investors to make an informed decision. In his view, this makes it unreasonable for an investor to accept the offer. “The one important piece of Mark's offer is that it's completely devoid of any information,” Kirill stated. “Any rational fiduciary would never approve an offer like this.”Cointelegraph also obtained an order from the Supreme Court of Seychelles, which sheds some light on Roger Ver’s role in the legal dispute. According to the order, CoinFLEX has accused “a large individual customer (Roger Ver)” of defaulting on a “written manual margin agreement.” This default originally caused the exchange to be unable to process withdrawals, according to CoinFLEX’s claim as quoted by the court’s order.Caption: Order in CoinFLEX restructuring case. Source: Supreme Court of Seychelles.Cointelegraph reached out to Roger Ver for comments. He denied that he walked away from a valid margin agreement. Instead, Ver stated that CoinFLEX made third parties aware of his trading positions, which knowledge they used to trade against him to his detriment. He claimed that CoinFLEX has agreed to an arbitration allowing him to recover the funds from these third parties.“I was never in default and never owed CoinFLEX the $82M they initially claimed,” Ver stated. “The reality, and one that CoinFLEX has now agreed to, is that I was the one owed money the entire time, and I am the biggest victim.”A spokesperson for OPNX declined to comment on the allegations. Since launching in April, OPNX has developed a credit currency for margin trading called “oUSD” and has obtained a Lithuania license for spot trading throughout the EU. According to Coingecko, OPNX currently processes over $32,000 in spot trading volume and over $82 million in derivatives volume each day. Criminal and civil proceedings against OPNX co-founders Davies and Zhu remain ongoing. 

CoinFLEX creditors dissatisfied with restructuring to OPNX: Report


                    
                    Many on Twitter compared the Binance settlement with the U.S. Department of Justice to the deal with BitMEX crypto exchange, whose then-CEO was also forced to step down. 
                    The crypto community on social media has greeted the news of the deal between Binance, CZ and the United States Department of Justice (DOJ) mostly positively, hoping it removes one of the last remaining obstacles before the long-awaited approval of a spot Bitcoin ETF.The $4.3 billion settlement between the U.S. and the world’s largest crypto exchange, Binance, for violating U.S. anti-money laundering laws includes a plea deal whereby the former CEO Changpeng “CZ” Zhao, has agreed to step down as the CEO of the exchange.The news of the deal and CEO's departure led to a market correction that saw some $175 million worth of leveraged crypto positions liquidated, while close to $1 billion in crypto assets flowed out of the crypto exchange.Over 1 billion dollars of outflows out of @Binance in the last 24 hours pic.twitter.com/nNMa10gtfg— Pledditor (@Pledditor) November 22, 2023

Apart from a slight market correction, most in the crypto community saw the settlement with the DOJ and the plea deal for CZ as a big win for the exchange and the crypto industry. Many critics had previously claimed that the U.S.’s pursuit of Binance would end the crypto exchange’s rein.This is the greatest victory of CZ's life. Absolute 3D chessmaster.From day 1, the DOJ & SEC have always been Binance's biggest risk. CZ's greatest threat. The dragon on the horizon. Now, after years of uncertainty, the DOJ has finally been neutralized. The dragon is slayed.…— Cole Garner (@ColeGarnersTake) November 22, 2023

Many others called Binance’s settlement with the DOJ the last step before the U.S. Securities and Exchange Commission approves a Bitcoin exchange-traded fund (ETF). On the whole, the crypto community sees the deal as a win-win scenario for the crypto ecosystem and a bullish catalyst for the next bull run.Sweet baby Jesus this is bullish! Binance settling with the DOJ removes the bearish scenario. I think the Bitcoin Spot ETF approvals are around the corner.When we start pumping and euphoria returns, don't forget to take profits! https://t.co/LCokdV7Y7E— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) November 21, 2023

Not everyone in the crypto community was as bullish on the Binance-DOJ settlement. Some commented that the crypto community is still awaiting the action from the Securities and Exchange Commission and that the SEC is likely to be a harder battle, as it refuses to settle with Binance along with other agencies.Seeing a ton of bull posts on my timeline.I don't think people understand the situation...It's obvious that Binance would settle & pay a large fine. But this doesn't mean it's all sunshine going forward. Remember that SEC / DOJ had all firepower focused on Binance, now that… pic.twitter.com/cgpDElDqRR— ImNotTheWolf (@ImNotTheWolf) November 22, 2023

However, the SEC lawsuit is a civil one, and analysts believe that the DOJ settlement means that Binance and the crypto industry have removed the biggest obstacle to the launch of a bull market.A few others compared Binance’s settlement to the BitMEX exchange settlement, in which the then-CEO Arthur Hayes pleaded guilty to violating anti-money-laundering laws and stepped down as the CEO. He was later sentenced to two years probation, avoiding a possible prison term of six to 12 months. 

Binance, CZ settlement with US DOJ 'bullish for Bitcoin ETF,' crypto community says

Source: a video screenshot, Youtube BitMEX founder Arthur Hayes believes that Bitcoin will outperform bonds during times of war, despite a potential initial sell-off. In a recent Medium post, Hayes discussed his observations regarding the net of RRP (Reverse Repo) and TGA (Treasury General Account) as indicators of dollar liquidity in the markets. Based on […]
The post BitMEX Founder Arthur Hayes: Bitcoin to Outperform Bonds During War Times, Despite Initial Sell-Off appeared first on Cryptonews.

BitMEX Founder Arthur Hayes: Bitcoin to Outperform Bonds During War Times, Despite Initial Sell-Off


                    
                    Three key data points highlight the 60-day strength shown by altcoins.  
                    A wave of green has washed across the entire crypto market, and it won’t be long before traders on X (formerly known as Twitter) begin to explain that a new altcoin season has arrived. Altcoin season — or “altseason,” as the crypto bros say — typically measures the rallying of altcoins and a positive increase in the total market capitalization of altcoins. Let’s take a look at some key indicators that market participants use to determine whether or not an altcoin season has emerged. Total crypto market capitalization hits a 14-month highThe total market cap of crypto recently hit a 14-month high, clearly reflecting the current bullish momentum.Crypto total market cap broke out to its highest levels in over 14 months. pic.twitter.com/0c6CPxDSfQ— TradingView (@tradingview) November 6, 2023

Similar strength is seen in the altcoin total market cap chart seen below. The metric measures the crypto market cap minus Bitcoin (BTC). Total crypto market cap minus Bitcoin. Source: TradingViewSince Sept. 8, the metric has springboarded from $526 billion to $622 billion on Nov. 9. The change shows traders’ growing interest and investment interest in altcoins, along with an increase in the prices of altcoins within the metric. Related: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answersLarge-cap altcoins display multiweek strengthData from CoinMarketCap shows the top 13 altcoins by market cap (excluding stablecoins) reflecting double-digit gains within the last 30 to 60 days. In particular, Ripple’s XRP (XRP), which has won a host of legal battles against the Securities and Exchange Commission, has witnessed 45% gains in the past 60 days. On top of the legal victories that helped to boost investor sentiment, it is rumored that Ripple will be announcing an initial public offering (IPO) on Nov. 9. Top altcoin performers. Source: CoinMarketCapFor the past three months, Solana’s SOL (SOL) has rallied significantly and started to lose its “Sam coin” moniker. Sam coins are cryptocurrencies with exposure to Alameda Research, FTX and Sam Bankman-Fried. SOL price has gained over 107% in the past 60 days as the project continues to rebuild and gain users in the aftermath of the FTX collapse. BitMEX exchange co-founder Arthur Hayes recently joined the Solana train, announcing that he purchased the altcoin on Nov. 2. Similar to SOL, Chainlink’s LINK (LINK) has seen massive 60-day returns of over 100% due to consistent building and usage. LINK also has posted 26% returns in six days.Related: New BTC price levels to watch as Bitcoin avoids $36KOther notable performances came from BNB (BNB), Cardano’s ADA (ADA), Tron’s TRX (TRX) and Polygon’s MATIC (MATIC), which also produced double-digit gains in a 60-day period.The altcoin market performance seemingly coincides with an improvement in investor sentiment. One gauge of market sentiment is the Crypto Fear & Greed Index. Since starting September as fearful, the market turned to greed on Oct. 23 and has not reversed. Crypto Fear & Greed Index. Source: NewhedgeWhether it is truly altseason or not, it is clear that excitement is returning to the crypto market.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.






