Crypto News Highlights (27th May to 31st May 2024)

• SEC Ordered to Pay $1.8 Million for Misconduct in DEBT Box Case
• Trump Meme Coins Crash After Felony Verdict
• Vitalik Buterin Warns Crypto Community About ‘Official’ Scams
• BlackRock’s Bitcoin ETF Becomes Largest Spot Bitcoin Product

SEC Ordered to Pay $1.8 Million for Misconduct in DEBT Box Case

The Securities and Exchange Commission (SEC) has been mandated to pay $1.8 million after losing a lawsuit against the crypto mining firm DEBT Box. The SEC had accused DEBT Box of a fraudulent scheme, claiming the company deceived investors and raised $50 million in Bitcoin and Ethereum.

However, Utah District Court Judge Robert Shelby dismissed the case, citing the SEC's actions as a "gross abuse of power."

DEBT Box hailed the ruling as a monumental win for the Web3 industry. Industry voices, including Laura Sanders of the Blockchain Association and Amanda Tuminelli of DeFi Education Fund, expressed hope that the penalty would deter the SEC from unfair tactics in future enforcement actions.

Trump Meme Coins Crash After Felony Verdict

Donald Trump-themed meme coins experienced a sharp decline following the former U.S. president's conviction on 34 felony charges.

The largest Trump-themed coin, MAGA (TRUMP), dropped nearly 25% from $15 to $11.27 shortly after the verdict, with other Trump-related coins like MAGA Hat (MAGA), Super Trump (STRUMP), and MAGA VP (MVP) also seeing significant declines. The charges relate to falsifying business records and hush money payments to adult entertainer Stormy Daniels.

In contrast, meme coins inspired by President Joe Biden saw an uptick in value. Trump has denied the allegations and criticized the trial as rigged.

Vitalik Buterin Warns Crypto Community About ‘Official’ Scams

Ethereum co-founder Vitalik Buterin emphasized the importance of cultural awareness and vigilance against scams in the crypto industry on May 30. Buterin highlighted how common terms can have different meanings in the crypto context, warning that "official" can sometimes imply a scam.

His cautionary remarks follow a series of high-profile scams involving hacked celebrity accounts promoting fraudulent tokens.

For instance, the accounts of rapper Rich the Kid and media personality Caitlyn Jenner were compromised to promote scam tokens. The U.S. SEC has also issued warnings about the dangers of relying on online and social media sources for investment decisions in the crypto space.

BlackRock’s Bitcoin ETF Becomes Largest Spot Bitcoin Product

BlackRock’s iShares Bitcoin Trust has emerged as the largest Bitcoin fund globally, amassing nearly $20 billion in assets since its U.S. listing earlier this year. It surpassed the Grayscale Bitcoin Trust, which held $19.65 billion as of May 28, 2024.

The approval of spot Bitcoin ETFs has been a significant milestone, enhancing Bitcoin's accessibility to investors and driving its price to record highs. The iShares Bitcoin Trust alone has attracted $16.5 billion in inflows, while Grayscale has seen $17.7 billion in outflows.

Despite the success of Bitcoin ETFs, some critics and countries remain wary of the volatility and potential risks associated with digital assets.

Disclaimer:  The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.