In today's crypto news, we see a pattern of regulatory and legal actions, institutional trends, and strategic signals that could have profound implications for financial and legal professionals in the Web3 space.
Firstly, the German government's reported failure to seize a Bitcoin stash linked to the Movie2K piracy website, valued at $5.6 billion, highlights the challenges faced by authorities in tracking and confiscating digital assets. This incident underscores the need for robust compliance systems and regulatory frameworks to address the complexities of the crypto ecosystem.
Meanwhile, the U.S. Treasury Department's sanctions on 19 Southeast Asian entities accused of cyber scams, emphasize the global nature of crypto-related fraud and the importance of cross-border regulatory cooperation. This development also illustrates the use of stablecoins in illicit activities, underscoring the need for effective risk management strategies in the crypto space.
The rise of Hyperliquid, a decentralized exchange, and its plans for a stablecoin, signals a growing trend towards decentralization in the crypto market. However, the controversy surrounding the stablecoin proposals highlights the importance of transparency and fairness in the crypto ecosystem.
The anticipated launch of the first US Dogecoin ETF, and the adoption of Dogecoin by CleanCore Solutions, Inc., for its digital asset treasury initiative, indicate increasing institutional interest in memecoins. This trend could reshape the crypto landscape and presents new opportunities and challenges for legal and financial professionals.
Lastly, the anticipated Federal Reserve rate cut could have significant implications for the crypto market. While rate cuts could potentially boost demand for cryptocurrencies, they could also trigger volatility and risk, underscoring the need for prudent risk management strategies in the crypto space.
In conclusion, today's news highlights the dynamic and complex nature of the crypto ecosystem, underscoring the need for robust regulatory, compliance, and risk management strategies.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
Arkham Intelligence, a data platform and exchange, has identified a stash of 45,000 Bitcoin (BTC), valued at $5 billion, that is linked to the film piracy website Movie2K. The German government reportedly "failed to seize" this Bitcoin during a confiscation in January 2024. The German authorities had previously sold off seized Bitcoin from Movie2K for an "unprecedented" $3 billion, which has since risen in value to $5.62 billion.
Arkham's CEO, Migeul Morel, revealed that the company discovered a cluster of 45,000 Bitcoin that remained untouched from November 2013 until January 2019, when it was suddenly moved to new addresses. Morel noted that the activity pattern of this new cluster matches exactly with the cluster of Bitcoin that was seized by German police last year, with the movements of both clusters occurring within days of each other. He also pointed out similarities in the origins of the clusters, the address types used, and the quantities of Bitcoin stored in each address. Based on these shared characteristics, Arkham has high confidence that this cluster belongs to Movie2K or its operators.
The German government began selling off its original haul of Movie2K Bitcoin in June 2024, when it was worth just over $3 billion. If it had waited until today to conduct the sales, the government would have brought in $5.62 billion in revenues. The Federal Criminal Police Office (BKA) declined to comment on whether it was aware of the newly identified Bitcoin, or whether it intended to take action. The original seizure of 49,858 BTC took place in January 2024, via a “voluntary transfer” from Movie2K’s operators. Two men have been charged with counts of copyright infringement, money laundering, and tax evasion in relation to the activities of Movie2K.
The U.S. Treasury Department has imposed sanctions on 19 entities in Burma and Cambodia, accusing them of defrauding Americans of $10 billion in 2024 through cyber scams. The entities, which include nine operating in Burma's Shwe Kokko hub and ten in Cambodia, are alleged to have used trafficked workers to conduct "pig butchering" scams through fake investment platforms and romance schemes. The Treasury Department claims that these operations specifically recruited English-speaking workers to target Americans, with some scammers reportedly having quotas for daily victim contacts.
The sanctioned entities in Burma are linked to a criminal empire in Shwe Kokko, known as Yatai New City, which is custom-designed for gambling, drug trafficking, prostitution, and global cyber scams. The compound is said to operate under the protection of the Karen National Army, profiting from both scam operations and utility sales. In Cambodia, the Treasury targeted former casino complexes in Sihanoukville, now operating as fraud centers. These operations, run by Chinese nationals with extensive criminal histories, involve enslaved workers forced to conduct virtual currency scams.
Alice Frei, head of security and compliance at Outset PR, noted that stablecoins like USDT are favored by scammers as they allow for instant transfer of stolen funds from a victim in the U.S. to a criminal compound in Southeast Asia. However, once investigators identify the bad actors, they can trace the money and work with companies to freeze it. While sanctions are effective, they are not a silver bullet as criminal networks often "rebrand" and "set up new guarantee markets" when sanctioned. Continuous enforcement pressure is key to effectiveness.
Hyperliquid, a decentralized exchange with its own layer-1 network, has reached a new all-time high of $55.04, following a 22% surge over the past week. This comes as the network has opened proposals for teams to launch a stablecoin using the USDH ticker. Established stablecoin teams such as Paxos, Frax Finance, and Agora have submitted proposals, with validator votes set to begin on Sunday. Teams wishing to create the “Hyperliquid-first” stablecoin have until Wednesday to submit a proposal via Discord. So far, 21 proposals have been submitted, some of which are jokes.
The USDH ticker has been restricted from use on the network, but the Hyperliquid Foundation has confirmed that the USDH stablecoin will not receive special privileges, and other stablecoins will continue to exist on the network. However, the ticker is clearly attractive to established stablecoin players, boosting the network's mindshare as it breaks a new all-time high. Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, stated that by anchoring to a native stablecoin, Hyperliquid reduces its dependence on external assets like USDC or USDT, while tightening the integration between trading, settlement, and liquidity within its derivatives platform. Many teams are suggesting models that will feed back into the ecosystem. For example, Native Markets’ proposal says it will share its reserve proceeds with the Hyperliquid Assistance Fund, and Agora’s proposal says it will share 100% of its revenue with the Hyperliquid ecosystem.
However, the stablecoin proposals have not been without controversy. Shortly after the USDH contest opened, the existing Hyperliquid stablecoin protocol, Hyperstable, called foul play. It suggested that other teams, namely Native Markets, had been given a heads-up about the USDH contest, calling it “unfair” as Hyperstable had previously pursued the ticker and were told it wasn’t available. Others have suggested that Hyperliquid didn't move the goalposts, but rather the regulatory environment surrounding stablecoins has shifted following the signing of the GENIUS Act into law. Regardless, bids to take control of the ticker have heated up as validator votes are set to kick off on Sunday.
Bloomberg analyst Eric Balchunas has announced that the first US exchange-traded fund (ETF) directly linked to Dogecoin will launch on September 11. This ETF, named DOJE, is being brought to market by Rex-Osprey and is seen as the beginning of the "memecoin ETF era." Balchunas highlighted the unique nature of the fund, as it will be the first US ETF designed to hold an asset "with no utility on purpose." The ETF was registered under the Investment Company Act of 1940, a strategy that accelerates approval compared to the traditional process required for spot crypto ETFs. This approach allows the fund to be structured as a C-corporation that provides DOGE exposure through a Cayman Islands subsidiary.
In related news, a major corporation, CleanCore Solutions, Inc., has adopted Dogecoin for its digital asset treasury initiative. The company purchased 285.4 million DOGE, valued at $68 million, making it the largest Dogecoin treasury holder to date. CleanCore plans to accumulate one billion DOGE within 30 days and ultimately secure 5% of the token’s circulating supply. The Dogecoin Foundation and its corporate arm, House of Doge, support this initiative, positioning DOGE as a digital asset for payments, tokenization projects, staking-style products, and cross-border transfers. To manage the new treasury, House of Doge has partnered with Bitstamp USA, which operates under Robinhood. This arrangement aims to enhance transparency and stability while laying the groundwork for yield-bearing products that could broaden Dogecoin’s role in mainstream finance.
MYX, the native token of MYX Finance, has seen a significant rally, with a rise of over 200% in the last 24 hours. This surge has propelled MYX's market capitalization to over $2.1 billion, ranking it among the top 50 cryptocurrencies. The token's fully diluted valuation is above $17.7 billion, placing it among the 30 largest digital assets. The recent surge continues a bullish run that has already delivered more than 18,000% gains since its launch, setting a new all-time high.
The sharp rise in MYX's value has also triggered the largest wave of liquidations across the crypto market in the past day. Traders betting against MYX lost $48.7 million, surpassing liquidations in Ethereum ($48.5 million) and Bitcoin ($39 million). The token's uptrend has also resulted in a more than 100% increase in derivative volumes to over $11 billion, making it one of the top five most traded tokens in the last 24 hours. This volume is five times higher than Cardano’s ADA and $4 billion higher than XRP.
However, the scale of MYX's price growth has raised skepticism among market observers, with some suggesting that the token's repeated spikes resemble manipulation rather than sustainable demand. Crypto trader Skew pointed to "targeted squeezes" that push MYX far above its trading range, triggering liquidations and consolidating supply control in a few hands. Others suggest the rally reflects a rising appetite for decentralized perpetuals, comparing MYX's trajectory to that of Hyperliquid, a leading on-chain derivatives venue.
The fourth quarter for Bitcoin and Ethereum is expected to be shaped by Federal Reserve cuts and ETF demand. This follows the weakest monthly jobs gain since 2020, which has led markets to anticipate a policy move in September. The Bureau of Labor Statistics reported a mere 22,000 rise in nonfarm payrolls in August, pushing the unemployment rate to 4.3 percent. Futures markets are predicting a high likelihood of a September cut, with the dollar trading near recent lows and gold reaching new highs. The Federal Reserve's calendar indicates a two-day meeting on September 16-17, followed by sessions in October and December.
Historical data shows that ETF flows around previous easing periods provide a baseline for potential impacts of new cuts. In the week of the September 2024 cut, U.S. Bitcoin ETFs collectively took in approximately $2.4 billion, and Ethereum ETFs added about $600 million. During the December 2024 cut week, Bitcoin ETFs added about $1.6 billion while Ethereum funds remained relatively flat. The last 60 days have demonstrated how sensitive these figures remain to macroeconomic factors. For Bitcoin ETFs, three daily prints above $800 million occurred in mid to late August, even with outflows on adjacent days, lifting the cumulative U.S. spot ETF net intake to about the mid-50 billions. For Ethereum, a late-summer burst delivered the largest single day since inception, roughly $1.02 billion on Aug. 11, and cumulative net flows now stand in the low double-digit billions.
The cryptocurrency market is eagerly anticipating the potential launch of the first Dogecoin ETF, according to Nate Geraci, chairman and president of The ETF Store. Geraci has suggested that the REX-Osprey DOGE ETF, which will trade under the ticker symbol $DOJE, could be launched within days. This ETF would offer investors a new, regulated way to gain exposure to Dogecoin without directly holding the coin. Geraci's comments have been supported by the ETF provider REX Shares, which has confirmed the upcoming launch of the REX-Osprey DOGE ETF. The filing with the U.S. SEC, including a prospectus for the offering, indicates that plans for the ETF are already in motion.
In addition to the potential ETF launch, market analyst Javon Marks has predicted a significant rally for Dogecoin that could result in gains of over 860% for holders. Marks' prediction is based on his analysis of Dogecoin's previous cycles, which have shown a pattern of long periods of sideways movement followed by significant gains. He believes that the current market setup for Dogecoin is similar to these previous cycles, suggesting that another large rally could be imminent. With these developments, Dogecoin is once again drawing significant attention in the cryptocurrency market.
Crypto analyst Austin Hilton has issued a warning to XRP investors, advising them to remain vigilant amid the cryptocurrency's recent market volatility. Hilton cautioned investors about the trap of misinterpreting extended consolidation phases as a sign of weakness or lack of potential. He stated that these phases are not setbacks, but rather essential stages in an asset's price cycle and long-term growth. Hilton also highlighted that sideways trading in cryptocurrencies often precedes significant upward moves, citing XRP's performance in July as an example when it rallied by more than 61% following a period of consolidation.
Hilton further advised novice investors not to abandon their positions during consolidation phases, as doing so could result in missing out on potential gains. He also noted that external market events, such as the upcoming FOMC Meeting, could trigger a price breakout after extended periods of calm. In related news, crypto market expert Gordon has predicted a potential surge in XRP's price to $6. He suggested that the cryptocurrency's current consolidation phase indicates it is preparing for a strong breakout to new all-time highs. Despite a slight surge from the $2.8 range to $2.95, XRP would still need to rally by approximately 103% to reach the projected $6 target.
JPMorgan's US trading desk has issued a warning to its clients that the anticipated Federal Reserve rate cut on September 17 could trigger a peak for risk assets, including cryptocurrencies. The bank's concerns stem from the possibility that investors may pull back to consider macro data, the Federal Reserve's reaction, potentially overstretched positioning, a weaker corporate buyback bid, and declining participation from retail investors. The Federal Reserve's next policy meeting, scheduled for September 16-17, has become a significant catalyst as traders position around the size of the cut and the tone of the guidance.
Standard Chartered, citing a labor market that has cooled faster than expected, now anticipates the Federal Reserve to deliver a 50-basis-point move. This prediction comes after US nonfarm payrolls rose by only 22,000 in August and the unemployment rate increased to 4.3%. JPMorgan's desk is not abandoning its "lower-conviction Tactical Bullish" stance, but it is encouraging investors to carry insurance into the event. The bank suggests that equity investors consider adding or increasing gold exposure as cut expectations weaken the dollar. It also recommends more explicit hedges for a volatility shock, such as VIX call spreads or VXX longs, as well as parts of Defensives.
For cryptocurrencies, the impact of the Federal Reserve's decision is two-sided and highly dependent on the path taken. On one hand, the same jobs-driven repricing that has boosted gold has also supported bitcoin in recent sessions as traders lean into the idea of easier money and a softer dollar. On the other hand, a mechanical "equities down, vol up" impulse around the decision could transmit into crypto assets, where cross-asset de-risking and margin unwinds have historically amplified intraday swings. A "catch-up" 50bp cut, as projected by Standard Chartered, could accelerate the compression in real yields and weaken the dollar at the margin, conditions that have historically supported bitcoin and liquidity-sensitive altcoins. Conversely, a smaller or caveated cut could trigger the "sell the news" pattern that JPMorgan warns about, with equities and high-beta assets like crypto marking lower first before reassessing the glide path.
The Algorand Foundation has introduced its Aid Trust Portal, a platform designed to track humanitarian aid payments using blockchain technology. This new system, which operates on the Algorand network, allows users to monitor the distribution of aid payments, providing a new level of transparency to the process.
The Aid Trust Portal is a significant move by the Algorand Foundation to enhance the transparency of aid payment procedures. It achieves this through onchain verification and monitoring capabilities, which are key features of the portal. This initiative represents the foundation's commitment to leveraging blockchain technology to improve humanitarian assistance distribution.
SolStrategies, a prominent name in the crypto industry, has officially begun trading on NASDAQ. This significant event marks the company's first foray into the public markets. The move to public market trading is a major milestone for SolStrategies, indicating its growth and expansion in the industry.
Trading under its unique ticker symbol, SolStrategies' debut on the major US stock exchange is a significant step in its journey. This transition not only represents the firm's growth but also its readiness to embrace the transparency and regulations that come with being a publicly traded company on a major exchange like NASDAQ.
The Chicago Board Options Exchange (CBOE) is set to introduce continuous futures contracts for Bitcoin and Ethereum on November 10, according to a report by Reuters. These new contracts will enable traders to maintain continuous exposure to the two leading cryptocurrencies without the necessity to roll over expiring contracts.
This move signifies an expansion of CBOE’s digital asset trading infrastructure. It builds upon the exchange’s existing cryptocurrency derivatives offerings, adding a new product that will enhance its futures offerings next month. The continuous futures contracts for Bitcoin and Ethereum will provide traders with an uninterrupted opportunity to engage with these digital assets.
