The U.S. Commodity Futures Trading Commission (CFTC) has focused its attention on how companies handle customer assets. Nevertheless, this fresh regulation does not fully encompass the innovative model of the crypto platform LedgerX, leaving key operational aspects subject to regulatory oversight.

Regarding regulations, the recent CFTC proposal seeks to enhance the rules for futures commission merchants (FCMs) and derivative clearing organizations (DCOs). These companies are now required to invest customer funds in highly liquid assets. Nonetheless, this revision does not account for LedgerX’s unique operational model.

LedgerX operates as a DCO, establishing direct connections with…

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Blockchain security audit firm ChainLight identified a vulnerability in the zkSync Era protocol that, if exploited, could have led to a potential loss of $1.9 billion.

The bug was found in zkSync Era’s zk-circuits. These circuits are designed to validate the correctness of transaction data without exposing sensitive details about the counterparties involved.

A blog post from ChainLight detailed that the bug could have allowed a malicious actor to manipulate transactions within a block and still have them verified as accurate. This would have led to layer-1 smart contracts accepting these proofs, unaware of the manipulated transaction values they contained.

Had the attack been…

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Nonfungible token (NFT) marketplace OpenSea announced on Nov. 3 that it was laying off employees. Co-founder and CEO Devin Finzer broke the news on X (formerly Twitter), saying the company was launching OpenSea 2.0 with a smaller team.

OpenSea launched in 2017, when NFTs were an innovation. It operates on a model comparable to eBay and Etsy and accepts payment in Ether (ETH). It laid off 20% of its employees in July 2022, citing the crypto winter, after which it had a staff of 230, according to press reports at the time. A spokesperson at the pioneering marketplace told Cointelegraph by email:

“Today, we are making significant organizational and operating changes as we focus on building… Read more on Cointelegraph

Grayscale Investments won its lawsuit against the US Securities and Exchange Commission in August. The DC Circuit Court of Appeals formalized the decision last week. 

And now, the industry waits to see what happens next in the crypto firm’s quest to convert its Grayscale Bitcoin Trust (GBTC) to an ETF. 

The court had ruled that the SEC’s decision to block GBTC’s conversion to an ETF — but allow bitcoin futures ETFs to launch — was “arbitrary and capricious.” It vacated the regulator’s disapproval order as part of the decision. 

Grayscale filed with the SEC last month to register shares of GBTC under the Securities Act of 1933 via an S-3 form. The SEC would need to…

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Advisers for bankrupt crypto exchange FTX have been disclosing data from customers’ transactions and accounts with the Federal Bureau of Investigation (FBI), according to court documents seen by Bloomberg. 

In response to subpoenas issued by several FBI field offices during the past few months, FTX consultants turned over to law enforcement records of specific customers’ trades on the bankrupt crypto exchange.

The FBI’s requests were disclosed on billing records from Alvarez and Marsal, a consultancy serving as financial advisers for FTX. Over the past few months, the firm’s staff extracted information from some customers’ trades for FBI offices in Portland, Philadelphia,…

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It wasn’t long after Ian Allison’s FTX killshot last year that the desire for the crypto community to “move on” from the downfall of its exchange and its leader, Sam Bankman-Fried, first emerged.

Last night’s not-really-surprising, all-counts guilty verdict magnified this hope. Take a spin around Crypto Twitter, er, Crypto X, and you’ll see plenty of comments of this kind.

This hope — to put FTX and Bankman-Fried firmly in the rear-view mirror — is understandable. Let’s put the past in the past and start building again, the thinking goes. It’s an attractive notion — who wouldn’t want to do all they can to inoculate themselves from the public relations disaster…

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