Crypto News Roundup (13th November to 17th November 2023)

Crypto News Roundup 6th November to 10th November 2023
Here are the top stories that happened in crypto this week.

In this week’s crypto news round-up:

  • Steven Nerayoff Releases Vitalik Buterin Recordings, Alleges Ethereum Corruption
  • South Korean Woman Avoids Jail for Stealing Ex-Husband’s $1.3M Crypto
  • US Judge Dismisses Class Action Lawsuit Against Tether and Bitfinex
  • South Korean Traders Drive Surge in Crypto Market Volume
  • Tether to Invest $500 Million in Bitcoin Mining

Steven Nerayoff Releases Vitalik Buterin Recordings, Alleges Ethereum Corruption

Vitalik Buterin, Ethereum Founder

The crypto community is buzzing with allegations of corruption and fraud within Ethereum, made by Steven Nerayoff, an early insider of Ethereum.

Last week, Nerayoff promised to unveil recordings from 2015 that expose fraudulent activities by Vitalik Buterin, Ethereum's co-founder, during its early days. Nerayoff has now delivered, releasing five conversations between himself and Buterin, along with a proposed "Rescue & Restructure Plan" from 2015.

Nerayoff clarified that the recordings don't directly relate to fraud but shed light on what was happening. The fraud details, he mentioned, would be part of a lawsuit.

The conversations from 2015 cover various organizational issues Ethereum faced in its early stages. Nerayoff acts as an advisor, addressing Ethereum's challenges and proposing significant changes for its viability.

One key concern highlighted in the recordings is Ethereum's financial management. Nerayoff strongly criticized the decision not to hedge Ethereum's Bitcoin holdings during Bitcoin's volatile early days.

The recordings offer unprecedented insight into Ethereum's early challenges, portraying Buterin seeking guidance from Nerayoff. They reveal flaws in Ethereum's structure, decision-making, and leadership during its critical formative stages. If substantiated, these revelations could harm Buterin's reputation and shake confidence in Ethereum.

The release of these recordings and restructuring plans has sparked intense discussion within the Ethereum community. Some see it as confirmation of long-held doubts about Buterin's competency during Ethereum's origins. However, caution is advised until rigorous examination of the evidence can be conducted.

This controversy comes amid frustration over Ethereum's failure to reach new price highs, trailing competitors like Solana. The risk of splinter groups forming hard forks from the main chain has grown, threatening Ethereum's cohesion. The release of alleged corruption details further accelerates this erosion.

Following the release of the recordings, Ethereum's price dropped by 4.70%, currently trading at $1,952.

South Korean Woman Avoids Jail for Stealing Ex-Husband’s $1.3M Crypto

A judge and a gavel

A South Korean woman who stole her ex-husband's $1.3 million crypto stash has received a suspended jail sentence. The 32-year-old woman stole the coins from her ex-partner's crypto wallet after the end of their common-law marriage.

The court found her guilty of violating laws related to information and communication network utilization and fraud under specific economic crimes. She "broke into" her ex's wallet using a desktop PC at his home, transferring the crypto holdings to a wallet on her mobile phone.

Despite her guilty verdict, the judge sentenced her to 18 months in prison, suspended for two years, citing some extenuating circumstances. The woman had taken advantage of her former partner's trust to steal a significant amount of his property.

US Judge Dismisses Class Action Lawsuit Against Tether and Bitfinex

A gavel

A U.S. judge has dismissed a class action lawsuit against stablecoin issuer Tether and crypto exchange Bitfinex. The lawsuit, filed by Shawn Dolifka in October 2021, accused Tether of misleading customers about its stablecoin, USDT, and creating a scheme to induce users to purchase the asset.

Dolifka claimed Tether falsely represented USDT reserves, alleging they were less than 4% of the tokens in circulation. The judge denied Dolifka's motion to amend the lawsuit, and he chose not to appeal the decision.

Tether, maintaining market dominance in stablecoins, reiterated its commitment to avoid "shameless litigation money grabs."

South Korean Traders Drive Surge in Crypto Market Volume

South Korean flags

Traders in Asia, particularly South Korea, have played a significant role in driving the unexpected surge in digital asset market volume. South Korean-based exchanges' market share increased to 12.9% in November, up from 5.2% in January.

This rise aligns with the general uptick in trading volume observed in the digital asset space during October and November. They are contributing significantly to the increasing trading volume of altcoins, particularly due to the absence of a futures market for retail investors in the country. This has led to retail investors exploring substantial leverage opportunities within the crypto market, contributing to the remarkable expansion of the altcoin market.

Tether to Invest $500 Million in Bitcoin Mining

Tether USDT symbol

Stablecoin issuer Tether plans to invest $500 million in bitcoin mining operations over the next six months. The company aims to become one of the largest miners globally and contribute 1% of the total computing power of the Bitcoin network.

Tether will use the funds to construct its Bitcoin mining facilities and invest in existing BTC mining businesses. The stablecoin issuer is building mining facilities in South America and Central America and aims to have facilities in Uruguay, Paraguay, and El Salvador, each with a capacity of 40-70 megawatts.

This move signals Tether's diversification efforts and an alternative avenue for profit-making. Tether currently maintains market dominance in the stablecoin industry.

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.