As we observe the ongoing legal battle between Binance founder Changpeng Zhao and the FTX bankruptcy estate, it’s clear that jurisdictional boundaries continue to be a point of contention in the crypto industry. Zhao's argument that U.S. courts have no jurisdiction over him due to his lack of meaningful ties to the state underscores the complexity of navigating international legal waters in the decentralized world of crypto. This case could potentially set a precedent for future disputes involving non-U.S. nationals in the crypto space.
Meanwhile, the increased Bitcoin exposure of the State of Michigan Retirement System highlights the growing institutional interest in digital assets. This trend is mirrored by other state pension funds across the U.S., signaling a shift in traditional investment strategies. However, it's important to note that these investments still constitute a small fraction of these funds' portfolios, indicating a cautious approach to the notoriously volatile crypto market.
The recent seizure of assets linked to a cryptocurrency scam by India's Enforcement Directorate is a stark reminder of the regulatory challenges and risks associated with crypto. The case underscores the need for robust security measures and regulatory oversight to protect investors and maintain market integrity.
In the derivatives market, Ethereum’s liquidation volume nearly doubling that of Bitcoin suggests a market heavily leveraged or misaligned with short-term sentiment. This could indicate a need for more prudent risk management strategies among traders.
Finally, the SEC's recent guidance on liquid staking could pave the way for staking within spot crypto ETFs. This development could potentially expand the use of liquid staking tokens in traditional and novel financial instruments, offering new opportunities for institutional investors in the crypto space. However, it's crucial for these institutions to understand the specific parameters set by the SEC to ensure compliance.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
Changpeng Zhao, the founder and former CEO of Binance, has filed a motion to dismiss a $1.76 billion lawsuit brought against him, Binance, and other Binance executives by the FTX bankruptcy estate. The lawsuit is related to a 2021 equity buyback FTX arranged with Binance, allegedly using misappropriated funds. Zhao's lawyers argue that U.S. courts have no jurisdiction over him in the case and that he was improperly served. The motion, submitted to the Delaware Bankruptcy Court, contends that the legal complaint fails on multiple technical fronts. Zhao, who resides in the United Arab Emirates, claims the lawsuit violated procedural norms when serving him as a non-U.S. national and asserts that Delaware courts have no personal jurisdiction over him due to his lack of meaningful ties to the state.
The lawsuit was originally filed in November 2024 by FTX Digital Markets Ltd. and the FTX Trading estate, seeking to recover $1.76 billion worth of crypto assets transferred to Binance in July 2021 as part of an equity repurchase deal. The deal involved FTX buying back a 20% stake Binance held in the exchange. The FTX estate, now managed by a restructuring team, argues the transfer was fraudulent and seeks to recover the assets to repay creditors affected by FTX's 2022 implosion. Zhao's legal team, however, argues that he never directly received the funds in question, insisting that Zhao was merely a "nominal signatory" and not the actual recipient of the assets.
The State of Michigan Retirement System has significantly increased its Bitcoin exposure, with its holdings in the ARK 21Shares Bitcoin ETF rising from 100,000 shares to 300,000 shares in Q2, according to a recent filing with the U.S. Securities and Exchange Commission. This represents an investment value of $11.4 million. The pension fund, which manages $19.3 billion in assets, also maintains a $13.6 million position in Grayscale’s Ethereum Trust, a figure that has remained unchanged since last year.
Despite recent ETF outflows of $1.4 billion, institutional interest in cryptocurrency, including from pension funds, remains steady. Ganesh Mahidhar, an investment professional at Further Ventures, explained that pension funds operate based on rules around the circulating market cap of any asset, potential upside, and max drawdowns. He noted that Bitcoin has been on their radar for a while now, reflected in these purchases. The fund's crypto purchases constitute less than 0.1% of their cash portfolio, a strategy aimed at protecting against significant drawdowns.
State pension funds across the country are increasingly allocating to digital assets. For instance, the State of Wisconsin's Investment Board now owns over 6 million shares of BlackRock's iShares Bitcoin Trust (IBIT) fund worth $387.3 million. Despite four consecutive days of outflows totaling $1.4 billion from Bitcoin ETFs, Standard Chartered projects Bitcoin reaching $200,000 by year’s end, with pension funds expected to drive much of this growth. The multinational bank anticipates that institutional flows into Bitcoin in 2025 will exceed 2024 levels, with fresh capital likely to come from long-only funds classified as 'pension funds'.
India's Enforcement Directorate (ED) has seized $4.8 million in assets linked to Chirag Tomar, a man currently serving a prison sentence in the U.S. for a $20 million cryptocurrency scam. Tomar was convicted for creating fake Coinbase websites as part of a sophisticated phishing scheme, which he used to defraud investors. The ED has frozen 18 real estate properties in Delhi and several bank accounts associated with Tomar, his relatives, and business associates. The agency's investigation into the money laundering operation is ongoing.
Tomar's criminal enterprise involved creating counterfeit Coinbase websites to trick users into revealing their account credentials. He manipulated search engine results to ensure his fraudulent sites ranked higher than legitimate ones. When users tried to log into these fake platforms, they were directed to call bogus customer support numbers, where fraudsters posing as Coinbase representatives tricked them into sharing security codes or allowing remote computer access. Tomar laundered approximately $72 million worth of stolen digital assets through various trading platforms before converting them to Indian rupees. He used these illegal profits to buy luxury items and finance international travel. The scheme operated for over two years until Tomar was arrested at Atlanta's airport in December 2023.
The cryptocurrency derivatives market experienced liquidations worth $351.86 million within the past 24 hours, with Ethereum (ETH) bearing the brunt of the losses at $108.88 million, and Bitcoin (BTC) following at $56.01 million. This comes after Bitcoin's significant intraday swing and Ethereum's relatively modest price movement. Bitcoin's trading range was between $111,971 and $116,235 on Binance, closing at $114,291, while Ethereum fluctuated between $3,357 and $3,735, settling at $3,645.91. Despite smaller price changes, Ethereum's liquidation volume was nearly double that of Bitcoin, indicating a market heavily leveraged or misaligned with short-term sentiment.
Ethereum recorded $43.08 million in short liquidations, more than triple Bitcoin's $14.35 million, suggesting that many traders anticipated a continued downturn that did not occur. The absence of ETF activity and internal network developments appears to have heightened speculation around Ethereum, leading to irregular leverage positioning. Binance and Bybit experienced the highest liquidations, at $138.18 million and $102.87 million respectively, indicating the high leverage density on these platforms. The total liquidation skew was heavily biased towards long positions, with $238.97 million wiped out, compared to $112.88 million in shorts. This suggests traders were anticipating a bullish breakout, but were gradually forced out by range-bound or fading rallies.
Despite a sharper price drop of -2.25% to $164.44, Solana (SOL) saw limited liquidations at $16.97 million, possibly indicating a lower leverage ratio or less directional conviction among traders. Interestingly, the data shows that SOL shorts slightly outweighed longs over the day, contrasting the more bullish tilt seen in Ethereum and Bitcoin positioning.
Bitcoin (BTC) has slipped below its three-week range floor near $115,800, signaling a weakening risk appetite among investors. The latest Bitfinex Alpha report reveals that BTC dropped to $112,722.10 in early trading hours on August 5, turning former support into potential resistance. This follows weeks of weakening order flow and open interest, with traders shifting towards Ethereum (ETH) and other higher-beta names. However, this rotation abruptly unwound as altcoins outside the top 10 fell 16.3% between July 28 and August 2, erasing approximately $40 billion in value.
The report suggests that the simultaneous drawdown across major cryptocurrencies and the long tail indicates a market-wide de-risking rather than a simple shift in leadership. BTC is down 6.6% from its all-time high of $123,054, while ETH is 9% off its recent local peak and closed last week 9.7% lower. The broader altcoin complex started the week with a slight pump to nearly $994 billion, but erased the gains as of press time. Despite last week's crashes, ENA and PENGU remained outliers with 14% and 8.4% weekly price increases respectively, although they too started this week with losses.
The report further notes that leverage amplified the correction move, with liquidations across major centralized venues topping $1 billion on August 2. This led to more than $922 million in longs being wiped out as momentum stalled. While BTC led the downturn, ETH long liquidations comprised most of the remainder, indicating that traders had crowded into catch-up bets after ETH underperformed earlier in the cycle. The report characterized this liquidation flush as a "cleansing" event that typically resets open interest and positioning, but warned that the market remains in a reflexive, fragile phase where sharp reversals and liquidation cascades are more likely.
The US Securities and Exchange Commission (SEC) has issued new guidance on liquid staking, sparking anticipation that staking within spot crypto exchange-traded funds (ETFs) will soon be permitted. Nate Geraci, co-founder of The ETF Institute, has referred to this guidance as the "last hurdle" before the SEC approves staking in spot Ethereum ETFs. He also highlighted that liquid staking tokens (LSTs) could be employed to manage fund liquidity, a major concern for the Commission. The SEC Division of Corporation Finance agrees with this view, stating that liquid staking activities, as described, do not involve offers or sales of securities.
LSTs enable funds to keep staked exposure liquid, allowing for on-chain staking rewards while holding a transferable receipt token that can be used for portfolio operations, collateral, or redemptions without fully unwinding staking positions. Lucas Bruder, CEO of Jito Labs, praised the SEC's understanding of current liquid staking arrangements and predicted an expanded use for LSTs in traditional and novel financial instruments, including ETFs. Bruder and other industry players met with the SEC in mid-February to discuss staking rules for ETFs, with LSTs discussed as a solution to the agency's concerns about redemption timing. However, the SEC stressed that its view applies to administrative and ministerial provider roles and specific fact patterns, and arrangements that exceed these parameters may be treated differently.
NewsBTC's seasoned editor, Christian, has been making waves in the world of cryptocurrency journalism. With a background in academia and a long-standing career in journalism, Christian has been able to harness his skills to break down complex crypto concepts into digestible content for the masses. His journey began in the traditional world of journalism, working at newspapers in Canada and South Korea, before settling down in his hometown in the Philippines. However, his interest was piqued by the emerging world of cryptocurrency, leading him to his current position at NewsBTC.
Away from his computer, Christian is a passionate motorbike enthusiast, enjoying leisurely rides along the coast on his 320-cc Yamaha R3. He also shares his home with a crew of furry friends, two cats and a dog, whose companionship aids his meticulous article writing. Despite his demanding work schedule, Christian manages to keep himself energized with copious amounts of coffee and delicious Filipino food, which he believes is the secret ingredient to a killer article. After a long day of crypto crusading, he unwinds with a rum and milk cocktail while watching slapstick movies.
Looking to the future, Christian is optimistic about his role at NewsBTC. He sees himself as privileged to be part of such a dynamic organization, where he can share his expertise and passion with a community he values. So, the next time you delve into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
Crypto market analyst Ali Martinez has warned that XRP's recent pullback could extend further, citing a range of bearish signals across price, on-chain, and behavioral metrics. In a thread posted on Wednesday, Martinez pointed to a Tom DeMark Sequential sell signal on the three-day chart, which he said triggered the ongoing pullback. He also flagged $2.40 as the next key support level to watch following the sell signal.
Martinez further elaborated on market structure, arguing that while the $3.00 area has intermittently acted as support, historical accumulation patterns make $2.80 a temporary buffer, with "real support" beginning below $2.48. He added that the most consequential level on his dashboard remains $2.40. Martinez also noted that whales have offloaded over 720 million XRP, intensifying sell-side pressure in recent sessions. Additionally, he highlighted the Market Value to Realized Value (MVRV) signal turning sharply negative, indicating a potential steeper correction.
Martinez's analysis rests on three pillars: an exhaustion sell on the 3-day TD Sequential, large-holder distribution in the hundreds of millions of XRP, and a bearish MVRV crossover. These factors, he argues, raise the probability of a deeper corrective leg towards the high-$2s and, if momentum deteriorates, the mid-$2s. The ability of bulls to defend the shallower buffers near $2.80 may determine if XRP's decline remains a pullback or morphs into a larger reset towards his $2.40 magnet. At the time of the report, XRP was trading at $2.93.
Bitcoin's price has once again rebounded after an initial crash to $112,000, a move driven by profit-taking following a surge to unprecedented levels in July 2025. However, the recovery does not necessarily indicate a secure position for Bitcoin, as it has retraced to a level that is currently viewed as bearish.
Crypto analyst Kamran Asghar suggests that Bitcoin's rebound could be short-lived as it has reentered a bearish Fair Value Gap (FVG). This followed a minor bounce from $112,000 to $115,000, with the bearish FVG lying between $114,000 and $115,500. This gap was created after the price crash from $118,000, implying that Bitcoin's price may attempt to fill it again. Furthermore, this level serves as a significant supply zone, indicating that a strong buying force is required for Bitcoin to cross this level without any issues. Asghar also points out that the bearish FVG and the supply zone are ahead of the cryptocurrency, suggesting a strong resistance at this level. He predicts that the next move after reaching this supply zone could be a rejection, leading to a further price decline.
In case of a strong rejection, Asghar anticipates Bitcoin's price could fall further to mid-July levels between $107,500 and $109,000, indicating another potential 5% crash before finding support. The silver lining is that Bitcoin has major support at this level, which could potentially serve as a springboard for a recovery. Despite the potential risks, the Bitcoin funding rate remains positive, indicating that traders still believe in a bull market, with more investors betting on a price rise. However, the positive funding rate has seen a slight decline in August, suggesting a slowdown among bulls.
OpenAI, the artificial intelligence firm headed by Sam Altman, is reportedly considering a secondary stock sale that could elevate its valuation to approximately $500 billion, marking a two-thirds increase from its previous valuation. This comes after the company secured over $8 billion in its most recent funding round, pushing its valuation to $300 billion. OpenAI has set a target to raise a total of $40 billion this year. The proposed stock sale is intended to incentivize both current and former employees, helping to retain top-tier talent. Existing investors, such as Thrive Capital, have shown interest in acquiring employee shares.
The move comes at a time when OpenAI is grappling with talent retention issues, having recently lost several research staff members to Meta, which has been aggressively recruiting top talent with nine-figure compensation packages. Earlier this year, OpenAI began developing a social network to compete with Elon Musk’s X, integrating ChatGPT capabilities and positioning itself as a competitor to Meta. Furthermore, OpenAI is currently in discussions with Microsoft, its largest investor, about its future as a for-profit company. This conversation could significantly influence its potential path toward an initial public offering (IPO), as Microsoft has the power to approve any restructuring.
Changpeng Zhao, co-founder of Binance, has submitted a motion to dismiss a $1.7 billion lawsuit filed by the FTX bankruptcy estate. The lawsuit is connected to a 2021 share repurchase agreement and alleges that Binance and its executives received improper funds. Zhao, however, disputes the jurisdiction of the US court and cites legal deficiencies in the case. The lawsuit also accuses Zhao of destabilizing FTX through misleading tweets and negative media comments, which FTX believes contributed to its financial downfall.
Zhao's motion, dated August 4, argues that the lawsuit should be dismissed due to lack of jurisdiction and improper service. His lawyers argue that FTX incorrectly served him through US-based counsel, which does not meet the legal requirements for serving a foreign national like Zhao, who resides in the UAE. They also argue that the case does not belong in Delaware as the key parties and transactions are all based overseas. Beyond these procedural objections, Zhao maintains that the case lacks merit and accuses FTX of attempting to shift blame for its collapse onto Binance. FTX has also taken legal action against other former allies in Delaware bankruptcy court as it seeks to recover as much lost capital as possible.
In a recent meeting with the office of Indonesian Vice President Gibran Rakabuming Raka, representatives from Bitcoin Indonesia discussed Bitcoin's potential as a sovereign reserve and its role in financial resilience. The representatives, part of one of the country's largest Bitcoin communities, emphasized the need for national-level Bitcoin education and presented Michael Saylor's Bitcoin price projections for 2045. Saylor, the Executive Chairman of Strategy, previously predicted that Bitcoin could reach $13 million per coin by 2045, based on an average annual growth rate of 29% to 40%. This growth is expected to be driven by institutional adoption, regulatory clarity, and Bitcoin's fixed supply.
Furthermore, Saylor raised his estimate at the BTC Prague 2025 conference, projecting a potential price of $21 million per coin by 2046. In terms of regulatory changes, Indonesia plans to raise crypto transaction taxes and remove value-added tax (VAT) for buyers starting August 1. Sellers using domestic exchanges will see an increase in transaction tax from 0.1% to 0.21%, while those on international platforms will experience an increase to 1% from 0.2%. Crypto mining taxes will also double, with the VAT rate increasing to 2.2% and the special income tax being eliminated in favor of standard taxation rates starting in 2026.
