Key Information: Last Night and This Morning (September 17-18)

Prager Metis, FTX’s Auditor, Settles with SEC for $1.95 Million

The Block reports that Prager Metis, the audit firm, has reached a settlement with the US Securities and Exchange Commission (SEC), agreeing to pay $1.95 million to resolve allegations of negligence in its audits of the now-bankrupt cryptocurrency exchange FTX. The SEC accused Prager Metis of making “false statements” about FTX’s financial condition in two audit reports filed between February 2021 and April 2022, failing to comply with generally accepted auditing standards (GAAS). Additionally, the firm failed to adequately disclose the potential risks associated with FTX’s relationship with Alameda Research.

BlackRock and Microsoft Partner for $30 Billion AI Investment Fund

The Financial Times, citing sources, reports that BlackRock plans to launch a more than $30 billion artificial intelligence investment fund in partnership with tech giant Microsoft. The fund will focus on building data centers and energy projects to meet the growing electricity and infrastructure demands of AI. BlackRock will launch the fund with its new infrastructure investment arm, Global Infrastructure Partners. It will be one of the largest investment vehicles ever created on Wall Street. Microsoft and Abu Dhabi-backed investment firm MGX are general partners in the fund. Sources also say that chipmaker Nvidia will provide expertise. The investment vehicle aims to address the massive demand for power and digital infrastructure to build AI products. AI computing requires more energy than any previous technological innovation, and existing infrastructure is expected to face serious capacity bottlenecks in the coming years.

Coinbase Adds CoW Protocol (COW) to its Listing Roadmap

Coinbase Assets tweeted that they have added CoW Protocol (COW) to their listing roadmap.

Caroline Ellison’s Sentencing Hearing Set for September 24th

Cointelegraph reports that former Alameda Research CEO Caroline Ellison’s sentencing hearing is scheduled for September 24th. In a document filed with the U.S. District Court for the Southern District of New York on September 17th, U.S. prosecutors stated that Ellison provided “extraordinary cooperation” in the prosecution of former FTX CEO SBF, assisting in investigating the illegal activities of Alameda Research and FTX, providing “credible and compelling testimony” against SBF at trial, and acknowledging her serious misconduct in the FTX collapse. While Ellison participated in the illegal activities, prosecutors attributed the primary responsibility to SBF. Ellison previously pleaded guilty to seven charges of wire fraud, commodities fraud, securities fraud, and money laundering. Prosecutors recommended leniency for her, while her attorneys requested a sentence of time already served and three years of supervised release. Like Ellison, former FTX engineering director Nishad Singh and co-founder Gary Wang also pleaded guilty to criminal charges and cooperated with prosecutors. They will have their respective sentencing hearings on October 30th and November 20th.

Wintermute to Launch New Prediction Market, OutcomeMarket, Next Week

The Block reports that crypto trading platform Wintermute will launch its new prediction market, OutcomeMarket, on Ethereum, Base, and Arbitrum next week. The company is developing OutcomeMarket using Chaos Labs’ Edge Proofs Oracle, and will initially launch betting markets for TRUMP and HARRIS tokens. Wintermute said in a statement, "Unlike existing prediction markets that are confined to a single chain, the multi-chain approach allows users to directly participate in their native blockchain ecosystem without the hassle of asset bridging." Wintermute also noted that it may integrate DeFi in the future, such as providing users with yields or leverage. Wintermute also plans to leverage its trading platforms, Bebop, WOO, and Backpack, as market makers for two initial ERC-20 token markets and will expand to more markets. Wintermute's trading pool will be liquidity-backed, making payments when one side wins.

He Yi: Binance’s Listing Process Involves Four Stages

He Yi, Binance’s co-founder, addressed concerns and rumors surrounding Binance's listing process. In a lengthy article, she stated that it’s a significant victory to see Bitcoin, once labeled as a Ponzi scheme, now being approved for ETFs. We also see the traditional financial market’s increasing trading volume of related crypto products, such as CME and ETF trades. It indicates that the larger players are coming in but not necessarily in a way that everyone expected, like a straightforward capital takeover. Just like how the internet has changed publishing and television industries, it’s a gradual, subtle process, bringing more than just Bitcoin’s price increase.

Regarding Binance’s listing process, He Yi outlined four stages: business, research team, committee, and compliance review. Binance prioritizes projects that users need, have user base and traffic, have long-term potential, and have solid business logic. He Yi concluded by stating that if someone disagrees, they might be right.

Deribit to Launch BNB Perpetual Contracts and Options on October 1st

According to an official announcement from Deribit, they will launch BNB perpetual contracts and options on October 1st, 2024, at 9:00 AM UTC (5:00 PM Beijing time). The minimum order size for BNB-USDC perpetual contracts is 0.01 BNB, with a minimum price movement of 0.05 USDC. The contract multiplier for BNB options is 1, with a minimum order size of 1 and a minimum price movement of 0.1 USDC, offering daily, weekly, and monthly expiry options. Both products will use USDC for pricing and margin, consistent with the SOL and XRP standards. Non-trading versions are already available in the API for client system preparation.

Binance Offers Up to $5 Million Reward for Reporting Any Form of Corruption

Binance’s Chinese language team posted on X (formerly Twitter) that recently circulated screenshots of a large social media group caused discussions about Binance’s “insider trading.” While the screenshots were ultimately confirmed as a misunderstanding, Binance takes such issues seriously. Any verified behavior involving leaks or corruption will be dealt with strictly.

Binance employees are required to complete mandatory compliance training according to exchange requirements. An independent audit team within Binance specializes in investigating such violations. If confirmed information leaks or insider trading suspicions are identified, Binance will immediately initiate legal proceedings to refer the relevant individuals to the legal authorities. Severe cases could face criminal liability.

Binance encourages reporting any form of corruption, with rewards reaching up to $5 million. Reporting channels are public and transparent, welcoming any tips regarding listing processes or other forms of corruption. If verified and involving Binance employees, a reward of $10 to $5 million will be provided while protecting personal information.

Crypto Venture Capital Firm Dragonfly Seeks to Raise $500 Million for New Fund

Bloomberg reports that crypto venture capital firm Dragonfly Capital is seeking to raise $500 million for its fourth fund, which will invest in early-stage projects. The firm has reportedly secured $250 million so far and plans to finalize the fundraising in the first quarter of next year.

Venture Capital Firm Patron Raises $100 Million for New Consumer Venture Fund

Bloomberg reports that Patron, a venture capital firm led by former gaming industry executives Jason Yeh, Brian Cho, and Amber Atherton, has raised a $100 million new fund focused on early-stage consumer-facing tech startups, especially those inspired by gaming. The fund is backed by Silicon Valley heavyweights like Marc Andreessen, Garry Tan, and Ron Conway. Patron plans to invest in 20 to 25 companies over three years, with investment sizes ranging from $1 million to $4 million, focusing on leveraging gaming industry experience to drive innovation in other markets, such as AI virtual assistants and intelligent shopping assistants.

Solana Gaming Company MagicBlock Completes $3 Million Pre-Seed Funding Round Led by a16z

Blockworks reports that Solana-based gaming company MagicBlock has completed a $3 million pre-seed funding round led by venture capital giant Andreessen Horowitz (a16z). The company plans to use the new funding to expand its team and develop technology, including bringing its game engine to the Solana mainnet and collaborating with online games. Founded in September 2023, MagicBlock is currently developing a game engine that allows video games to run entirely on-chain.