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Legal Evening News | The outcome of the Do Kwon case may depend on Jump Trading's actions in the UST incident; Base has migrated its testnet from Goerli to Sepolia.

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Selected News:

1. The outcome of the Do Kwon case may depend on Jump Trading's actions in the UST incident.

2. Cross-chain bridge Owlto Finance's trading volume on the Scroll network has exceeded 18,500 times, ranking first among ecological projects.

3. Superdao: Will gradually cease operations, and the remaining funds will be returned to investors.

4. Base has migrated the testnet from Goerli to Sepolia, with the latter becoming the only testnet starting from January next year.

5. The United States is conducting security reviews of Chinese Bitcoin mining companies, believing that the involved mining sites may pose a threat to its national security.

Selected Articles:

1. The team is facing losses and unsustainable finances, and Lido has announced its withdrawal from Solana.

2. For Dubai clients to custody BTC, Standard Chartered Bank's crypto landscape is still expanding;

3. Following collaborations with Tencent Cloud and Alibaba Cloud, Avalanche sets its sights on the "red ocean market" of encryption in India.

Project Updates

Do Kwon lawsuit outcome may depend on Jump Trading's actions in the UST incident

According to a report by Coindesk, legal action against Do Kwon and Terraform Labs may depend on the actions of market maker Jump Trading, as revealed in documents submitted to a New York court on Wednesday.

In May 2022, the collapse of UST had an impact on the cryptocurrency market, and Do Kwon was subsequently sued by the US Securities and Exchange Commission for misleading investors.

The latest documents in the case show a focus on Jump, the market maker that appears to have made a profit of $1.28 billion in the UST collapse.

Jump Trading's role may be very important, as the UST stablecoin has briefly decoupled from the US dollar before. Although Kwon told investors that the token maintained a value of $1 due to its automated algorithm, SEC experts said that this was actually due to Jump's intervention in the market at the request of Terraform.

According to a letter written by the Kwon team to the Singapore Supreme Court, "the defendant denies these allegations and claims that Jump was not the reason for the recovery of UST prices at the time." The letter also added that "the May 2022 anchor break was the result of intentional 'short' trading by a third party, causing it to break away from price anchoring."

Do Kwon's defense team also argued that the U.S. Securities and Exchange Commission has no jurisdiction because the assets involved are currency, not securities.

CNBC: Coinbase has chosen Ireland as its primary operational and regulatory center in the European Union

According to CNBC, cryptocurrency trading platform Coinbase has chosen Ireland as its primary operational and regulatory center in the European Union. Coinbase has had an office in Dublin since 2018.

This company has about 100 employees in Ireland. If approved, Coinbase will obtain a universal "MiCA license" in Ireland, which will allow it to "expand" its services to Germany, France, Italy, the Netherlands, and other EU countries.

Alliance DAO announced 8 Web3 accelerator projects involving DeFi, NFT and other fieldsAccording to Techcrunch, Alliance DAO has announced the latest batch of selected startups for the All11 Demo Day. There were a total of 1083 applications, but only 6 teams were accepted and will soon graduate from the program. In addition, two startups from All10 also participated in the showcase. The All11 mentors include founders and CEOs from well-known companies such as Synthetix, Blockworks, Solana, and others.

Cross-chain bridge Owlto Finance's trading volume on Scroll network exceeded 18,500 times, ranking first among ecological projects

According to data from l2scan, the cross-chain bridge Owlto Finance has a trading volume of 18,570 times on the Scroll network, with a 24-hour increase of 64.04%, surpassing the DeFi project Skydrome (10,910 times) and temporarily ranking first in the ecological project list.

Owlto Finance is a cross-chain bridge that focuses on Layer2. Users can use Owlto Finance to achieve fast and secure cross-chain asset transfers between all mainstream L2 networks, including Ethereum, Scroll, zkSync Era, Starknet, Optimism, Arbitrum, Linea, Mantle, Base, Polygon zkEVM, opBNB, Manta, and Kroma.

Superdao: Will gradually cease operations, with remaining funds returned to investors

According to the official website, Web3 growth and DAO creation platform Superdao has announced that it will be shutting down. Superdao stated that in 2022, it began building growth and analysis tools for Web3 projects that were already launched and operational. It is clear that the crypto industry itself has become much smaller than its initial ambitions ("new internet"), and providing specialized tools for crypto companies is unlikely to generate venture capital-scale returns.

Given this perspective, Superdao has decided to return the remaining funds to investors and gradually cease operations. Members of the Superdao team have already founded at least 7 new companies. Some of the work results will be released as open source projects.

Aptos: Network has resumed normal operation

In the past 3 hours, a newly created wallet has withdrawn a total of 4.12 million WLD from OKX and Binance, equivalent to approximately 6 million US dollars.

According to Lookonchain's monitoring, whales and institutions are hoarding WLD. In the past 3 hours, a newly created wallet has withdrawn 4.12 million WLD ($6 million) from OKX and Binance. In addition, GSR has hoarded 7.4 million WLD ($10.8 million) since August 29th, and Amber has withdrawn 500,000 WLD ($730,000) from OKX for the first time in 87 days, 2 hours ago.

DWF Labs deposited 30 million ORBS, equivalent to $1.25 million, into Bithumb

According to Scopescan, DWF Labs has just deposited 30 million ORBS (1.25 million USD) into Bithumb. The price of ORBS has dropped 24% in the past 24 hours.

A newly created address withdrew 1.72 million WLD from OKX within the past 30 minutes, equivalent to approximately 2.49 million US dollars.

According to Scopescan monitoring, a new address starting with 0xd9188 extracted 1.72 million WLD from OKX in the past 30 minutes, equivalent to approximately 2.49 million US dollars.

2568 million BLUR coins were transferred from two addresses on Coinbase Prime to OKX, equivalent to approximately 5.13 million US dollars.

According to on-chain data analyst Yu Jin, after reaching a high of $0.23, 25.68 million BLUR tokens (equivalent to $5.13 million) flowed from two addresses on Coinbase Prime to OKX in the past 6 hours, causing the price of BLUR to drop to $0.19. It is worth noting that the monthly unlocked tokens of Blur will first be transferred to Coinbase Prime.

Funding

Gaming startup Forge completes $11 million seed round financing, led by Makers Fund, Bitkraft Ventures, and Animoca Brands

The gaming startup company Forge has completed a $11 million seed round of financing, led by Makers Fund, Bitkraft Ventures, and Animoca Brands. Other participants include Hashkey Capital, Polygon Ventures, Formless Capital, and Adaverse. The funding will be used to establish a platform that connects and rewards gamers for their achievements.

Regulation

Coinbase Chief Legal Officer opposes US Treasury's proposed cryptocurrency tax reporting regulations

Coinbase Chief Legal Officer Paul Grewal expressed opposition to the proposed cryptocurrency tax reporting regulations by the US Treasury Department on social media, which relates to fairness and innovation in the emerging industry.

Paul Grewal stated that the proposed regulations go far beyond the authorization of Congress, which establishes tax reporting rules equivalent to traditional finance, putting digital assets at a disadvantage and potentially harming the nascent industry. These rules also require reporting of almost all digital asset transactions, even buying a cup of coffee, setting a dangerous precedent for monitoring consumers' daily financial activities. Collecting such data serves no legitimate public purpose and may impose a heavy burden on Web3 startups, and it already exceeds the data analysis capabilities of the US Internal Revenue Service.

The United States is conducting security reviews of Bitcoin mining companies with Chinese backgrounds, believing that the involved mining sites may threaten its national security.

Microsoft's team wrote in a report submitted to the Committee on Foreign Investment in the United States in August 2022 that "comprehensive intelligence collection operations" can be carried out at the Bitcoin mining site near the company's Wyoming data center, even without direct evidence of malicious activity by the entity.