Nigeria’s Economic and Financial Crimes Commission (EFCC) has frozen bank accounts totalling over $330,000, accusing cryptocurrency traders of manipulating the naira. Traders using global platforms like Kucoin and Bybit are suspected of contributing to the local currency’s depreciation through illegal foreign exchange trading. EFCC claims these platforms have failed to comply with anti-money laundering regulations, worsening the situation.
EFCC investigator Okoro Philip directly blamed these traders for the naira’s sharp decline, which has dropped by around 70% since the start of the year. He criticised Kucoin and Bybit for allowing USDT, a digital dollar, to be exchanged for naira at rates that artificially lower the currency’s value. The EFCC has expressed concerns that such platforms are being used to trade proceeds from criminal activities.
These actions follow recent intervention by the Central Bank of Nigeria, which sold US dollars at a lower rate to bureaux de change in a bid to stabilise the naira. Despite these efforts, the currency continues to struggle, and experts warn that further depreciation is likely unless demand for US dollars is curbed.
Ethereum has seen a notable shift in ownership, with large holders, known as ‘whales,’ now controlling 43% of all ETH. This surge in whale supply comes during a tough period for the cryptocurrency, which has struggled to gain momentum. Despite becoming the second crypto-based ETF to be approved in the United States earlier this year, Ethereum’s price has dropped by more than 15% in the last month, currently at $2,288.
The increasing whale dominance is largely due to the Shanghai upgrade, with large holders accelerating their accumulation of ETH since 2019. According to data from IntoTheBlock, whales now hold nearly 45% of the circulating Ether supply, while retail investors—those holding less than 0.1%—control around 48%. This creates a clear divide between everyday investors and large holders.
The implications for Ethereum’s price remain uncertain. While some hope that the whale interest could drive the value upwards, others are concerned that having two dominant extremes—whales and retail—could limit flexibility in the market, leaving Ethereum vulnerable to price swings.
US cryptocurrency shares fell after the recent presidential debate between Kamala Harris and Donald Trump. Harris criticised Trump, who has positioned himself as a pro-crypto candidate, while Trump promised friendlier crypto regulations if elected. Following the debate, pop icon Taylor Swift endorsed Harris, further influencing the political landscape.
Market analysts noted that while the debate didn’t directly address cryptocurrency, sentiment shifted in favour of Harris. That has created a less optimistic outlook for Bitcoin than Trump’s earlier promises of making Bitcoin a government-held asset. The crypto market remains volatile and faces regulatory scrutiny, but it has also gained mainstream attention due to backing from City institutions and key corporate figures.
As political uncertainty lingers, crypto stocks, including Riot Platforms, Marathon Digital, and Coinbase, experienced notable drops, with Bitcoin and ether also losing value. Experts anticipate continued volatility in the crypto sector until the November election.
In 2023, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) reported a significant rise in financial fraud involving cryptocurrencies such as bitcoin, ether, and tether. The IC3 received over 69,000 public complaints about cryptocurrency fraud, resulting in estimated losses exceeding $5.6 billion.
The report highlights that investment scams are the most pervasive form of cryptocurrency exploitation, responsible for nearly 71% of all cryptocurrency-related losses. Call centre frauds, including tech support scams and government impersonation schemes, accounted for about 10% of these losses. The decentralised nature of cryptocurrencies, coupled with the speed and irreversibility of transactions, makes them particularly attractive to criminals and poses substantial challenges in recovering stolen funds.
IC3 plays a central role in aggregating and analysing these complaints to identify trends and develop strategies to combat fraud. Timely and accurate complaint reporting is crucial for aiding law enforcement in their investigations.
Latvia’s central bank has announced that is offering free pre-licensing consultations for crypto-asset service providers (CASPs) to ensure they are well-prepared for the phased implementation of MiCA across the EU. These consultations will provide comprehensive guidance on regulatory requirements, necessary documentation, and initial compliance assessments, aiding companies in navigating the complex regulatory landscape.
Starting from January 2025, the central bank will accept applications and issue licences for CASPs in accordance with MiCA. In the meantime, unlimited pre-licensing consultations will be available, reflecting the bank’s commitment to fostering a robust and compliant crypto-asset ecosystem.
This proactive measure forms part of Latvia’s broader strategy to position itself as an attractive location for CASPs within the EU. Latvia’s efforts are further highlighted by its introduction of the “Crypto Asset Services Law” and substantial financial commitments toward digitalisation and innovation, underscoring its ambition to become a hub for blockchain and crypto companies.
Latvia is following a trend seen in other EU countries, such as France, which has also begun accepting CASP applications ahead of the official enforcement date. These proactive steps by EU nations underscore the importance of regulatory preparedness in the evolving crypto landscape, positioning themselves as favourable destinations for crypto-asset service providers.
A US federal judge has rejected Coinbase’s attempt to dismiss a class-action lawsuit from shareholders. The lawsuit claims that Coinbase, the largest US cryptocurrency exchange, misled investors by downplaying the chances of facing legal action from the US Securities and Exchange Commission (SEC). The ruling comes 15 months after the SEC sued Coinbase for allegedly operating as an unregistered securities exchange, leading to a significant drop in the company’s stock price.
The shareholders argue that Coinbase and its top executives falsely portrayed the company’s position, emphasising that the crypto assets it listed were not securities and thus unlikely to attract regulatory action. Additionally, they allege that the company misled investors about the risks customers faced regarding their assets in the event of bankruptcy. Coinbase’s share price fell sharply after revealing disappointing earnings and adding new disclosures in May 2022.
While the judge dismissed claims that Coinbase falsely denied engaging in proprietary trading, some allegations can proceed, including those about misrepresenting risks to customer assets. Coinbase remains confident in its legal standing and is prepared to defend its case in court.
A major super political action committee (PAC) supporting US Vice President Kamala Harris in her presidential campaign, Future Forward PAC, will now accept cryptocurrency donations. Coinbase confirmed that the PAC has partnered with its commerce platform to facilitate crypto contributions ahead of the upcoming election in November, where Harris faces former President Donald Trump in a closely contested race.
Although Harris has not yet publicly taken a stance on cryptocurrencies, her campaign team has engaged with leading crypto firms like Coinbase and Ripple. Trump’s campaign, meanwhile, has been courting crypto donors by promising policies friendly to the sector, while Harris’ adviser, Brian Nelson, hinted at support for emerging technologies, a positive signal for the crypto industry.
Crypto companies are making contributions to pro-crypto candidates across both political parties through super PACs, focusing on congressional races. Meanwhile, a Washington fundraiser is set to raise $100,000 for Harris, with the crypto community calling for a softer regulatory approach.
Super PACs are allowed to raise unlimited funds to support candidates but are prohibited from directly contributing to campaigns or political parties, positioning Future Forward PAC as a key player in Harris’ electoral bid.
Robinhood’s cryptocurrency platform has agreed to pay $3.9 million to settle claims it blocked customers from withdrawing crypto assets between 2018 and 2022. The California Attorney General’s office announced that Robinhood Crypto had violated state laws by preventing customers from accessing cryptocurrencies they had purchased, forcing them to sell their assets to leave the platform.
The platform was also accused of misleading customers regarding where their assets were held and falsely advertising competitive pricing through multiple trading venues. As part of the settlement, Robinhood will allow customers to withdraw their crypto assets to personal wallets and honour its commitments regarding trading practices.
Robinhood did not admit wrongdoing but expressed satisfaction with the settlement. The company aims to make cryptocurrency more accessible and affordable, according to a statement from its general counsel.
California’s Attorney General Rob Bonta emphasised that the settlement serves as a warning that all companies, including those in the cryptocurrency space, must comply with consumer protection laws. Robinhood shares rose slightly after the news.
Elon Musk and Tesla have won the dismissal of a federal lawsuit accusing them of defrauding investors by promoting Dogecoin. US District Judge Alvin Hellerstein issued the decision in Manhattan, rejecting insider trading and manipulation claims.
Investors had alleged that Musk’s social media antics, including posts on X and an appearance on ‘Saturday Night Live,’ were designed to inflate Dogecoin’s value. They accused him of driving the cryptocurrency up by 36,000% before allowing it to crash, causing them billions in losses.
Among the claims was that Musk and Tesla timed their trades to coincide with Musk’s public statements, including a surge in Dogecoin’s price when he briefly replaced Twitter’s logo with Dogecoin’s Shiba Inu dog. The investors argued that this allowed Musk to profit at their expense.
Musk’s lawyers maintained that his tweets were light-hearted and there was no proof linking him or Tesla to suspicious trading or sales. The lawsuit, which originally sought $258 billion in damages, was dismissed after multiple failed attempts.
Nasdaq is seeking regulatory approval to launch and trade options on a bitcoin index, offering institutional investors and traders a new way to hedge and amplify their exposure to the cryptocurrency. The United States Securities and Exchange Commission (SEC) has not approved options based on bitcoin-related exchange-traded funds (ETFs), including Nasdaq’s application to trade options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.
The new bitcoin index options would provide a quicker and more affordable method for traders to gain access to the cryptocurrency market. Options are derivatives that allow the holder to buy or sell an asset at a set price by a predetermined date, making them a popular tool for traders and investors to manage risk and enhance liquidity.
Nasdaq’s proposed options would track the CME CF Bitcoin Real-Time Index, which monitors bitcoin futures and options contracts on the CME Group exchange. This development comes as institutional demand for bitcoin-based financial products grows despite the SEC’s slow approval process for options on newly launched spot bitcoin ETFs.
While awaiting regulatory decisions, traders have explored other products, such as leveraged ETFs tied to bitcoin. Exchanges initially applied for the spot bitcoin ETF options as soon as the SEC approved the underlying ETFs but have since adjusted their filings in response to the regulator’s comments.
