Blockchainreporter Weekly News Review: Crypto Week Shows Mixed Progress

This week in crypto industry has been marked by a mix of challenges and opportunities. Notable advancements include Google Cloud’s integration for blockchain data verification and the evolving landscape of stablecoins with Tether’s significant loan to a German Bitcoin miner. However, the sector has also faced regulatory concerns, with the SEC’s actions against companies such as PayPal, FTX, and SafeMoon, highlighting the ongoing scrutiny within the industry. Security issues with Onyx Protocol and TeamUnibot underscore the importance of robust measures in the ever-evolving blockchain space, while TomoChain’s rebranding as Viction emphasizes the dynamic nature of Web3 and individual capabilities in the realm of blockchain technology.

Space and Time Integration with Google Cloud’s BigQuery Empowers Blockchain Data Verification

Data warehousing leader Space and Time recently announced a new integration that could alter cloud computing data processing and verification. Their zero-knowledge (ZK) proving approach, ‘proving of SQL,’ combined with Google Cloud’s BigQuery opens up blockchain data verification potential.

James Tromans, Google Cloud’s Web3 division manager, underlined the importance of this integration, which allows Web3 developers access to many tools and services to construct scalable apps. BigQuery clients can validate blockchain smart contracts and other data-driven business processes using Space and Time’s ZK-proof protocol. Space and Time developed the cryptographic ‘Proof of SQL’ technique to verify SQL database query results. The method could be utilized on Google Cloud SQL databases or data warehouses. Developers could employ encryption to validate query results, decreasing data manipulation risk.

SEC Issues Subpoena to PayPal Over U.S. Dollar Stablecoin Offering

PayPal Holdings, a global payments company, has confirmed receiving a subpoena from the SEC regarding the issuance of a U.S. dollar stablecoin. After PayPal’s digital currency entry, this happened.  PayPal became the first major fintech company to fully embrace digital assets in August. The launch of its stablecoin was a major step forward in virtual currency adoption.

Stablecoins help bridge the gap between volatile cryptocurrencies and stable assets like the U.S. dollar. Tethered to a reliable asset, the cryptographic tokens in question are designed to maintain value. Pegging delivers stability, making it appealing to investors looking to enter the cryptocurrency world while avoiding uncertainty. PayPal’s involvement in stablecoins shows the financial sector’s recognition of digital currencies’ value and potential.

Tether Boosts Crypto Mining with $610M Loan to Northern Data AG

Tether (USDT), a prominent stablecoin issuer, has lent heavily to German Bitcoin mining company Northern Data AG. Tether’s commitment to Bitcoin mining is reaffirmed by this move. Bitcoin’s $35,388 market valuation matches this action. Northern Data AG announced on November 2 that it had acquired a 575 million euro ($610 million) debt financing package from Tether. This large investment is intended to expand Northern Data Group investments across business verticals.

Tether offers unsecured, market-standard debt. The tenure runs until January 1, 2030, providing ample time for strategic execution. In September 2023, Tether invested in AI initiatives with Northern Data. This loan finance deal extends that. Tether stressed that this funding comes from outside sources, protecting consumer assets.

FTX Founder Sam Bankman-Fried Faces 110 Years in Prison

The Manhattan federal court jury reached a unanimous verdict on Sam Bankman-Fried’s federal fraud and conspiracy charges after several hours of deliberation. The 31-year-old entrepreneur was questioned for a month. Federal prosecutors accused them of one of the most notable instances of financial deceit in the history of the United States.

Seven fraud, conspiracy, and money laundering charges were brought against Bankman-Fried. Prosecutors claimed he misused FTX customer payments to pay hedge fund losses, debts, and lavish homes and indulgences. The revelation that Bankman-Fried could be sentenced to 110 years in jail despite his plea of not guilty increased the severity of the claims. FTX, once worth $32 billion, went insolvent after a quick collapse. Bankman-Fried resigned as head in November 2022, and prosecutors revealed a comprehensive plan to deceive investors the following month.

SafeMoon Faces SEC Charges for Alleged Unregistered Crypto Sale

SEC actions have been initiated against SafeMoon LLC and its principals, inventor Kyle Nagy, CEO John Karony, and CTO Thomas Smith. The charges stem from a large fraud scheme and an unregistered SafeMoon transaction. SafeMoon said they would securely increase the token’s value to astronomical heights, which attracted investors. According to reports, the company’s activities caused billions in market value losses.

David Hirsch, head of the SEC Enforcement Division’s Crypto Assets and Cyber Unit (CACU), stressed decentralized finance. Although unregistered offerings can be transparent and consistent, they often fail to give legal disclosures and responsibility. This regulatory void may attract people like Kyle Nagy who exploit loopholes.

Onyx Protocol and TeamUnibot Suffer Crypto Losses

According to blockchain analytics firm PeckShield, the Onyx Protocol, a decentralized finance (DeFi) initiative, lost $2 million in Ethereum due to a security compromise. The incident shows DeFi’s ongoing security issues.

A recent attack on TeamUnibot, a popular crypto site, stole almost $600,000. The offender quickly converted the embezzled cash into 355.75 ETH worth $640,000. The use of TornadoCash to hide fund origins has complicated fund recovery. 

TomoChain Rebrands as Viction to Focus on Human Potential and Web3

Viction, formerly TomoChain, rebranded after changing its blockchain platform strategy. The company’s name change shows its commitment to mankind and the Web3 domain, an area of constant innovation in which it has five years of experience.

The metamorphosis shows Viction’s emphasis on human potential and technology. TomoChain has made significant progress in blockchain network scalability and security since its 2017 founding. The platform has struggled to gain broad appeal. Thus, the project’s mission and strategy were reassessed to better align with Web3’s goals and help people understand the need to embrace this technology.