Key Information from Last Night and This Morning (September 18 - September 19)

Fed Cuts Interest Rates by 50 Basis Points, First Reduction in 4 Years Link to article

The Federal Reserve has cut the federal funds rate by 50 basis points to 4.75%-5.00%, marking the first rate cut since March 2020. The Fed had implemented 11 consecutive rate hikes from March 2022 to July 2023, totaling 525 basis points. Over the past year, the Fed maintained the federal funds rate target range between 5.25% and 5.5%, the highest level in 23 years. The FOMC statement indicates that inflation has continued to decline towards the 2% target, but remains “slightly elevated.” The risks to employment and inflation goals are balanced. The committee is steadfastly committed to supporting full employment. The rate decision was approved by an 11-1 vote, with Governor Bowman dissenting, advocating for a 25 basis point cut. Fed Chair Powell stated the Fed will adjust the pace of rate cuts as needed.

SEC Charges DeFi Platform Rari Capital with Unregistered Securities Offering and Reaches Settlement Link to article

According to The Block, the US Securities and Exchange Commission (SEC) has reached a settlement regarding its charges against DeFi platform Rari Capital. The SEC found that the company and its co-founders misled investors and failed to register as brokers. The SEC stated that Rari Capital co-founders Jai Bhavnani, Jack Lipstone, and David Lucid told investors that the Earn platform they managed allowed investors to lend tokens to earn interest, and would “automatically and autonomously rebalance” their cryptocurrencies, rather than manually. However, the company was unable to do so at times. The SEC also indicated that they engaged in "unregistered broker-dealer activity" related to the Fuse platform. The SEC noted that both platforms collectively held over $1 billion in crypto assets at their peak. Some Earn platform investors were also eligible for Rari governance tokens, which the agency claims were unregistered securities. As part of the settlement, Rari Capital Infrastructure LLC, which acquired Rari Capital in 2022, has agreed to cease future violations of securities laws. Rari's co-founders agreed to pay penalties and are barred from serving as executives or directors for five years. Previously, lending platform Fuse was hacked in May 2022, resulting in the theft of $80 million. Rari Capital subsequently halted new deposits and began phasing out the Fuse platform.

Trump Uses Bitcoin to Pay for Meal at Bitcoin-Themed Bar in New York Link to article

Former President Trump purchased burgers for his supporters at PubKey, a bitcoin-themed bar in New York, using Bitcoin to pay. Trump used Bitcoin through the Strike payment application, built on the Lightning Network, to settle a $998.70 bill. The bar received the bitcoin payment through the Zaprite app.

Fintech Firm Revolut Plans to Issue a Stablecoin Link to article

According to CoinDesk, four sources reveal that London-based fintech company Revolut, which offers cryptocurrency trading, is planning to launch its own stablecoin. The company, which acquired a UK banking license in July and was valued at $45 billion earlier this year, is reportedly making significant progress in creating the stablecoin. When asked about its stablecoin plans, a Revolut spokesperson stated that the company seeks to expand its cryptocurrency products in a compliance-first approach, aiming to become a safe haven for the broader crypto community.

MicroStrategy Announces $875 Million Convertible Senior Notes Offering, Portion of Net Proceeds to be Used for Bitcoin Purchases Link to article

MicroStrategy has announced the issuance of $875 million in convertible senior notes due 2028, with the offering expected to close on September 19. These notes will be unsecured senior debt of MicroStrategy, bearing a 0.625% annual interest rate, payable semi-annually on March 15 and September 15 each year starting from March 15, 2025. The notes will mature on September 15, 2028, unless repurchased, redeemed, or converted earlier according to their terms. MicroStrategy intends to use the net proceeds from the offering to redeem the full $500 million aggregate principal amount of outstanding MicroStrategy 6.125% Senior Secured Notes due 2028 (the “Senior Secured Notes”), and allocate any remaining net proceeds to the purchase of additional bitcoins and general corporate purposes.

Silvergate Capital Files for Bankruptcy Protection in US Delaware Court Link to article

According to Financefeeds, Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware. The bankruptcy filing reveals that the company has assets between $100 million and $500 million, and liabilities between $10 million and $50 million. In March 2023, Silvergate Capital announced it would voluntarily liquidate its subsidiary Silvergate Bank, citing challenges faced by the banking industry due to rising interest rates and regulatory scrutiny following the bankruptcy of cryptocurrency exchange FTX in November 2022. Silvergate Bank was known for its close ties to the cryptocurrency industry, experiencing a sharp decline in reputation and confidence among its clients after the FTX collapse. In July, Silvergate Capital reached a settlement with the SEC, the Fed, and the California Department of Financial Protection and Innovation (DFPI), agreeing to pay $63 million. The Fed indicated that it had concluded its enforcement action against Silvergate Capital after Silvergate Bank completes its liquidation plan, repays deposits, and ceases banking operations. Previously, the SEC had filed a lawsuit against Silvergate Capital in federal court, accusing it of securities fraud. The SEC stated that Silvergate misled investors regarding its bank secrecy procedures, anti-money laundering compliance program, and poor financial condition following the FTX collapse in 2022.

Borderless Capital Launches $100 Million DePIN Fund Backed by Peaq, Solana Foundation Link to article

According to CoinDesk, Borderless Capital has launched its third DePIN fund, which has secured $100 million in backing. Investors in the fund include blockchain Peaq, which focuses on DePIN, along with the Solana Foundation and Jump Crypto. As of April this year, the top 10 DePIN projects collectively raised over $1 billion in funding.

Coinbase to List Zetachain (ZETACHAIN) Link to article

Coinbase Assets announced on Twitter that Coinbase will add support for Zetachain (ZETACHAIN) on the Zetachain network. It is crucial to avoid sending this asset through other networks, as it could result in the loss of funds. Trading is expected to commence on or after September 20, 00:00 Beijing time, contingent on liquidity conditions. The ZETACHAIN-USD trading pair will be launched in stages once sufficient asset supply is available.

Coinbase Lists Aleo (ALEO) Link to article

Coinbase Assets announced on Twitter that Coinbase will add support for Aleo (ALEO) on the Aleo network. It is crucial to avoid sending this asset through other networks, as it could result in the loss of funds. Aleo (ALEO) is now live on coinbase.com, the Coinbase iOS and Android app with an experimental label. Coinbase customers can log in to buy, sell, convert, send, receive, or store these assets.

Pharmaceutical Distributor Cencora Pays Hackers $75 Million in Bitcoin Ransom, Setting a Record for Cyber Extortion Link to article

According to Bloomberg, citing sources, hackers who launched a cyberattack against pharmaceutical distributor Cencora Inc. received a total of $75 million, paid in Bitcoin in three installments in March. This constitutes the largest known cyber extortion payment to date. Initial ransom demands reportedly reached $150 million. Cencora learned in February that its system data was stolen. Two months after disclosing the incident, Cencora began informing individuals and state governments that their personal data, including names, addresses, dates of birth, diagnoses, prescriptions, and medications, had been compromised. The company's quarterly report for July revealed that $31.4 million in "other" expenses incurred during the nine months ended June 30, largely related to a cybersecurity incident involving data breaches. It remains unclear whether these funds are associated with the cyberattack.

Cencora, headquartered in Conshohocken, Pennsylvania, has a market capitalization of approximately $46 billion and generated revenue of $262 billion in the past fiscal year. The company was formerly known as AmerisourceBergen.

MANTRA Mainnet to Launch in October Link to article

MANTRA, an L1 blockchain built specifically for RWA, has announced that its mainnet will launch in October. MANTRA Chain will offer a comprehensive and customizable suite of tools that empower developers to tailor solutions according to their specific needs. This toolkit not only simplifies the process of on-chaining real-world assets but also ensures that solutions comply with regulatory requirements.

Programmable Privacy Network Aleo Mainnet Goes Live Link to article

Programmable privacy network Aleo announced on the X platform that its mainnet is now live, enabling developers to build next-generation decentralized applications powered by zero-knowledge cryptography.

Ethena Labs Regains Control of Domain, Will Relaunch Frontend Website After Further Investigation Link to article

According to an official announcement from Ethena Labs, the domain registration account for Ethena was recently compromised. The team has taken steps to temporarily disable the website to protect user security. The official statement emphasizes that the protocol remains unaffected and funds are secure. Ethena Labs has regained control of the domain and has partnered with multiple entities to block phishing websites. The official and only valid domain is ethena[.]fi. The team will relaunch the frontend website after completing further investigations. Ethena reminds users to refrain from interacting with any fraudulent Ethena applications or websites.

Binance Lists KDA 1-75x U本位 Perpetual Contracts Link to article

According to an official announcement, Binance launched U本位 Kadena (KDA) perpetual contracts on September 18 at 21:30, with a maximum leverage of 75x.

Crypto Startup Hemi Labs Raises $15 Million, Led by Binance Labs Link to article

According to Fortune, Hemi Labs, a startup co-founded by Bloq co-creator Jeff Garzick, has secured $15 million in funding. Binance Labs, Breyer Capital, and Big Brain Holdings led the investment round, with participation from Crypto.com, Web3.com Ventures, Hyperchain Capital, Alchemy, and SALT Fund. Co-founder Max Sanchez stated that the company plans to use these funds to build Hemi's engineering team, add more Bitcoin interoperability features, and provide advanced customization for developers, along with incentives, grants, and community adoption. Max Sanchez declined to disclose the company's valuation.

Coinbase Former Executives Launch Crypto Exchange TrueX, Securing $9 Million in Seed Funding Link to article

According to Fortune, TrueX, a new stablecoin-based cryptocurrency exchange founded by two former Coinbase executives, has secured $9 million in seed funding. Crypto investors, including RRE Ventures and Hack VC, alongside crypto companies like Paxos, Solana Foundation, and Aptos, participated in the round. Currently, TrueX operates similarly to Coinbase, utilizing PayPal's PYUSD as the default settlement currency. TrueX will launch its trading functionality in the next two to four weeks, initially offering spot trading of top assets to institutional traders only.

TrueX's parent company, True Markets, was co-founded by Vishal Gupta, former head of Coinbase exchange and head of USDC at Circle, and Patrick McCreary, a former Coinbase engineer. Vishal Gupta previously served as the head of Coinbase's trading platform. During his time at Circle, he oversaw the launch of the USDC stablecoin. Patrick McCreary previously worked as a senior engineer at Coinbase. Both individuals have prior experience at Goldman Sachs.

Ethereum Briefly Surpasses $2400, Bitcoin Rises Above $62,000 Link to article

According to OKX, Ethereum briefly surged past $2400, currently trading at $2399.39, marking a 4.48% intraday gain. Bitcoin is currently trading at $62258, representing a 4.78% increase for the day.